The borough assembly is looking at updated cost estimates and options to repair or replace the ailing Public Safety Building. If the assembly settles on a plan, it could go to voters this fall to seek approval to issue bonds to pay for the work.
Assembly members were scheduled Tuesday evening to review three options presented by the Capital Facilities Department on what to do with the beleaguered, 34-year-old structure that houses the borough’s police department, jail, fire department, indoor shooting range and motor vehicle department, the federal Transportation Security Administration, U.S. Customs and state court system.
The building needs replacing of the roof, drains, structural framing, siding, interior wallboard, exterior doors and windows, interior finishes and electric/telecom work.
The assembly has been struggling for years with how to repair, rebuild or replace the building, and how to pay for the work.
Three options were up for discussion at Tuesday’s assembly meeting.
The first would be to renovate the existing Public Safety Building in three phases, dealing with the most critical needs first. Phase 1 would include replacing the flat roofs with sloped roofs. It also would include rebuilding the building “envelope,” which includes exterior wall systems and siding, doors and windows.
That first phase could cost $4.1 million, according to a summary statement presented to the borough assembly for its meeting by Capital Facilities Director Amber Al-Haddad.
Phase II would address mechanical issues, such as plumbing and heat and ventilation. Phase III would deal with architectural finishes, accessibility, a standby generator and other rebuilds.
The presentation for the assembly did not include cost estimates for the second or third phase of the gradual approach to the project.
The second option would be to renovate the entire building in one project, at an estimated cost of $16 million.
The third option would be to build a new building at a new site, the corner of Bennett Street and Ishiyama Drive, which could cost $51 million, up from a $24 million estimate in 2020. That would include the cost of demolishing much of the existing structure.
The new building would not include the fire department, according to the summary presented to the assembly. The existing fire department space at the old building would be maintained, as well as the shooting range. The remainder of the building would be demolished.
AMC Engineers said it would charge $6,830 for an updated cost estimate for the renovation project, and $34,690 for an updated estimate for new construction. The latest cost estimates for the work are two years old.
Once a new project cost is determined, and an option selected, Al-Haddad wrote, “we would proceed to seek funding opportunities and/or (general obligation) bonding.”
Voter approval is required for general obligation bonds, which are backed by the borough’s tax revenues. Wrangell’s annual general election is in October.
After discussions with the Alaska Municipal Bond Bank Authority, which assists communities with selling bonds to investors, Wrangell could look at paying 4% to 4.25% interest on the debt, Al-Haddad wrote in her report for the assembly meeting.
The actual interest rate would depend on multiple factors.
Repayment of the debt would start the year after the bonds are sold.
For example, a $10 million, 20-year general obligation bond at 4.25% would require debt payments of close to $750,000 a year, requiring a significant increase in property taxes unless the borough could find other sources of revenue.
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