BUSINESS

Old Town Square renovation costs soar

Pat Ferrier
patferrier@coloradoan.com

The costs to modernize and upgrade an aging downtown landmark are adding up.

The price tag to renovate Fort Collins' beloved Old Town Square is now 30 percent higher than first estimated in early 2014. Increased labor costs and features added at the public's request will push costs to $3.9 million, blowing the renovation's $3 million budget before a brick is moved.

The cost overrun forced the Downtown Development Authority, which owns the public plaza, to find additional funding. It will come from $900,000 in interest earnings and money set aside for Downtown River District improvements on Jefferson Street. The DDA hopes to recover some of that money through a $130,000 Great Outdoors Colorado grant.

The additional money is enough to cover the financial gap and move the project forward as the DDA envisioned, said Executive Director Matt Robenalt.

"By bringing in additional resources, we are not at the point where we are having to look at eliminating amenities or features," he said. "We are approaching changes with a scalpel and finding efficiencies in the ways things are built ... rather than using a chainsaw and lopping off a desired amenity as a way to stay within budget. The goal is to not have to go there."

The DDA on Feb. 6 announced the delay of a groundbreaking ceremony for the project. A new date for that ceremony has not been set. Construction work is scheduled to begin in March.

The DDA had always planned to apply for the GoCo grant through the state to pay for features such as benches, lighting and a vernal pool water feature, Robenalt said. If it wins a grant, the DDA will decrease the amount if needs to take from the Jefferson Street project and uncommitted funds.

City Council member Bob Overbeck, who also sits on the DDA board, said he was surprised costs came back 30 percent higher than what the board approved a couple months ago.

Overbeck said he supports the project but voted against the GoCo grant. "I didn't think the grant should go to" funding the fountain and tables and chairs, he said. GoCo grants, funded through sale of lottery tickets, typically go to enhance or create parks and open space. The Old Town Square project, Overbeck said, should not be competing for funding with other projects in Larimer County.

GoCo grants are awarded in June.

Robenalt said the grant application would link to GoCo's criteria for passive recreation including the vernal pool, which is a play feature.

Rising costs

A shortage of construction workers and subcontractors throughout the Front Range, plus new and expanded features added after public comments, led to costs higher than the DDA's original budget, project manager Todd Dangerfield said in a Feb. 12 memo to the DDA board.

The costly additions include the vernal pool and pop-jet water feature in addition to refurbishing the iconic fountain, moving and expanding the stage, enhanced pedestrian and event lighting and putting down new pavers.

Old Town Square has slowly started showing its age. The 30-year-old public plaza hosts about 100 events per year and its plumbing and electrical infrastructure needs an upgrade. The square's design needs to change to make it more suitable for concerts and festivals, the DDA has said.

Plans to renovate the Square have been kicked around since 2009 when the DDA commissioned a needs assessment looking at infrastructure. In 2011, Old Town Square renovations emerged as the top priority for projects to be completed by the city's downtown improvement district.

Last year, the DDA went through an extensive process to get input from the public and stakeholders such as businesses and community leaders. That led to a final design that moves the stage to the square's northwest corner, tucked up against The Right Card, to help create better flow to and from Linden Street.

Also added are a second water feature to complement the iconic fountain; a new shade sculpture; an expanded children's play area; an outdoor fireplace; more and smaller gathering areas; and an enhanced entryway along Mountain Avenue.

Construction will be done in phases, with the stage and kiosk the first areas to be worked on. That's the area that will take the greatest amount of work, including relocating utility lines and public restrooms that are now in the kiosk. Engineering functions will be moved and pump systems for the existing fountain and new water feature will be relocated to space beneath the new stage.

The Square's restaurants, shops, bars and public spaces will remain open during construction.

Where's the money coming from?

In addition to the original financing package from the DDA, the city is kicking in $1 million through its Downtown General Improvement District, which was created by property owners to fund parking, pedestrian and street beautification improvements downtown. Progressive Old Town Square, which owns the buildings around the public plaza, donated $60,000.

The additional $900,000 comes from money DDA set aside in 2012 for improvements to Jefferson Street, "but clearly those (funds) won't be needed this year," Robenalt said. The DDA will borrow against those funds and replace the money next year.

Cash flow is expected to be above what the DDA has allocated for downtown projects, "so we will be able to refund that project and have the funds available" when the city and the Colorado Department of Transportation decide to go ahead with the Jefferson Street improvements, he said.

The DDA's tax increment revenue is growing as a result of the economic recovery, Robenalt said.

The DDA also plans to look for cost savings in products, materials and installation methods, and to negotiate a guaranteed maximum price contract with Mortenson Construction to guard against further unanticipated price increases. That contract is expected to be finalized in early March.

Despite the funding issues, construction is still expected to be substantially completed in time for NewWestFest in mid-August.

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