News & Announcements

City receives estimated constructions costs for sports center

Release Date: Jan. 18, 2008

The City of Effingham announced the estimated costs to construct the proposed Effingham Community Sports and Recreation Center Friday.

Over the past several months, Effingham officials have given presentations relating to the proposed sports center, but it was not until this week that they received engineer’s estimates as to the cost to complete the project.

According to figures received by the City this week, the total project cost, including site work, is estimated at $14.8 million, which is above the $13 million the City had anticipated earlier in the year.  The estimate is based on an 82,000-square-foot facility that would include a studio-size hockey rink, a competitive pool, a recreation pool, a walking track, and a multi-sports area.

Council members indicated they were not surprised the estimates to come in higher than $13 million, which is why the alternatives were added into the design.

“We are not surprised by the higher number,” said Lange.  “We, of course, had hoped for a smaller number, but that is why we have alternatives figured into the project costs.”

Among the alternates that can be deducted to lower the cost of the project are:
    • Eliminating the water slide, which will save an estimated $306,597,
    • Eliminating the Lazy River, which will save an estimated $185,607,
    • Eliminating the Therapy Pool, which will save an estimated $122,902,
    • Eliminating two of the four party rooms, which will save an estimated $63,882.

Although Lange said the City Council will look into the alternates, the actual cost of the project will not be known until the City receives construction bids.

“We believe we can make this a $13 million project,” said Lange.  “The Council will sit down with the final figures when construction bids are received to determine what we can afford.

“City Council members will continue to be upfront with the residents as we work through the figures for this project,” he added.

The City has proposed funding the $13 million project out of two of its restricted funding sources — Hotel/Motel Tax and Tax Increment Finance Funds. Funding for the $13 million would be $5.5 million in Hotel/Motel tax funds over a 20-year period, with $4 million to be paid from the Tax Increment Finance Fund over a 10-year period, and with $3.5 million taken out of available TIF funds.

Other costs projected with the project include funds to operate and maintain the facility, which according to project consultant Tom Hillgrove of Rink Management Services is estimated to run at a deficit of $137,000 each year.  

As a result of the projected deficit, the Effingham County Community Foundation has agreed to create a $3 million endowment to cover the cost of the projected deficit.  The Foundation reached the $2 million mark at the end of 2007.

“The City is in a position where it can afford a large project, like the Sports Center,” said Lange, adding that because Hotel/Motel Tax and TIF funds are restricted funds the City is limited in the projects that can be funded through the two sources.  

The mayor added that no new or additional taxes will result from this project.

“Existing funding sources will cover the costs of construction, operation and maintenance of this facility,” said Lange.  “We will not have to use any general funds, including general property tax funds or general sales tax funds toward this project.”

For more information regarding the project, visit the City’s website at www.effinghamil.com.