-May 10,2023-
The Visalia City Council gave its blessing last week on moving forward with two-decade old plans to build a 3-story Mission Style civic center a few blocks east of Downtown. Most dramatically, they say they can pay for much of the 33-acre construction project with cash money.
The city’s war chest has built up this year to about $110 million according to city finance chief Renee Nagel, “Can we afford that? Yes we can – assuming no recession” projected through fiscal year 24/25.
The savings have been squirreled away in a civic center fund for the past 13 years as most recently- the city has increased general fund revenue even as staff costs were cut.
During the pandemic, as the city sales tax, industrial and retail development blossomed and increased the property tax – all surprised city staff to the upside. Sales tax revenue far exceeded budget estimates according to an April finance report to council. Estimates of sales tax revenue have been too low by 29% cumulatively over three years. Sales tax and property tax monies makes up over 79% of the city budget.One aspect of this is that the city receives sales tax money from recently arrived industrial shippers like Amazon in the past few years due to new state law.
Besides these sources the city has a variety of public safety funds that can be used to help pay for a new Public Safety building planned at the complex, the most expensive single building. Add to that the American Rescue (ARPA) funding that all local governments received from the federal government to help offset losses due the Covid 19 pandemic.
The city still has $13 million from ARPA it can use for this project by paying for salaries that will save the general fund. Add to that when the city moves here in 2025 – they will be able to sell a number of properties Downtown.
The current city hall was built in 1956 replacing a Spanish-style city hall also with towers – now the location of the Visalia Convention Center.
An immediate goal is to launch the construction bidding process to get a firm number for their budget. They also want to “buy” the land here that is still in the redevelopment agency’s hands.
Once hobo jungle
This land at Burke and School was formerly railroad-owned used by both ag uses, industries and car-related shops, next to Farm Bureau’s stockyard across Goshen Ave. The open land, dotted with iconic oak trees is cross-crossed by Mill Creek but its out of the way location made it popular as a former hobo jungle.It was a forgotten part of town.
The city began exploring development of the mostly empty acreage in 2002 and got an EPA Brownfield grant to remove contaminated soil, completing the job in 2010.The move to look east followed city purchase of other railroad land at Oak and Santa Fe where the city transit center is today. That move spurred private development in the blocks east of Visalia’s main Downtown blocks as well as the relocation of car dealers to Ben Maddox.
By 2011 the city began seeking funds to build a park along Mill Creek and has received funding but has not built the park that will be next to the Imagine Children’s Museum.
Now the plan is to start construction on this long held vision by 2025.
Council member Brett Taylor says former city councils saved up for years for this project and with cash in hand “it’s time for a new civic center complex” that can serve Visalia’s council and public safety services in one location The towered expansive complex will look out at parkland to the north toward Downtown.
The only building on the campus now is the VEC emergency call center. Now a new police and fire administration building and adjacent evidence budding will be joined to the west by an overhanging canopy, tower and plaza to the west – connected to the council chambers and eventually a city hall where the public can interface with city staff with a 125 car parking lot.
This last phase would increase the cost of the entire project by $56 million. Council is leaning toward not moving forward on this option for now even though they agree it will indeed cost more to wait and the city does have some of the funding. But for most of the money, finance says the council would have to issue some debt. They want to wait for the economy for now.
Adding it up
The Civic Center land consists of several parcels that are
designated: 15.7 acres Government Use, 17.4 acres Future Development and 33.1 acres altogether. The extra land could potentially draw other public uses including former council member Greg Collins’ plan to build a competition swimming pool on some of the land.Collins was an early proponent of the east Visalia civic center.
Here hare the estimated costs for the new civic center:
Council Chambers Building $ 6.8
Public Safety Administration Building $38.7
Evidence Building $12.2
Plaza/Canopy $ 9.0
Total $81.2M
Total Project Cost Estimate
Soft Costs $16.3M
+ Construction (Hard Costs) $81.2M
Subtotal $97.5M
plus Contingency (10%) = $107Million
Phase 2 Available Funding
Civic Impact Fee Fund $ 8.6 Projected thru FY 24/25 – Assumes no recession
Civic Center Reserve $ 73.1 Projected thru FY 24/25 – Assumes no recession
Police & Fire Impact fund $ 7.0 Would need a 7-9 yr GF advance
Measure T Police & Fire $ 8.0 Takes each Fund balance to $7 m at June 30, 2024
Funds Designated for Civic Center/PS Total $ 96.7
Additional Funding Options – Recommended
GF Building Maint Fund $ 0.8 Set-aside before Measure N passed
ARPA (PS Salary & Benefits Drawdown) $ 13.0
The City Hall phase -on hold now- could cost $51,189,000, Plus Cont. (10%) $ 5,200,000
Total $56,389,
SCHEDULE
• PS&E Spring 2024
• Bidding & Award Summer 2024
Construction Late 2025
Move-In Early 2026
Total cost around $165 million.