Valdese public safety building won't exceed $10.83M

It is now official: Constructing a combination police and fire station in Valdese will cost no more than $10,830,000 with a contingency fund of $600,000.

D. R. Reynolds submitted a Guaranteed Maximum Price (GMP) for the town’s public safety building project last week that fell on the lower end of the $10.8 to $11.2 million range Valdese officials estimated in May.

The GMP is also less than the $10.9 million Financial Feasibility Pricing estimate last month, with $700,000 set aside as contingency funds.

In an email to staff and council members last month, Town Manager Todd Herms said he and staff would look for ways to lower the cost.

Herms said in the email that he believed costs associated with access control, alert systems, VOIP, cameras, signage, and flagpoles could be substantially reduced.

While the cost of those items did not change, Herms and staff were able to lower the cost of the retaining wall, roofing, cabinetry, glass and glazing, and several other line items.

Some items — including fencing, paint, HVAC, and plumbing — will cost more than the original estimate.

Herms also said that “a couple of local industry leaders” have pledged to raise $1 million for the project.

The full contingency fund is not likely to be used, Herms said, but it is shortsighted and “frankly dangerous” not to include adequate contingency money for any project.

The next step will be taken at the Aug. 3 town council meeting, when council members will vote whether to adopt a resolution to move the project forward. The next day, the state Local Government Commission (LGC) will potentially approve a loan to cover the project.

The LGC operates under the N.C. Department of State Treasurer to ensure local municipalities remain financially stable.

BACKGROUND

The public safety facility project has been in the works since 2018, when a structural engineer completed a study of the original building that housed the police and fire departments.

By 2024, the building — at 121 Faet St. SW — had deteriorated badly enough that the police and fire departments were relocated.

The police department now operates out of Town Hall. The fire department is split between a portion of the Faet Street building that is not condemned and a portable office trailer behind the building.

A number of council members and town managers have come and gone since 2018, all grappling with a combination of indecisiveness and setbacks that have dragged the project out for eight years.

The town council had several options before them last year to renovate existing buildings or construct a new one. D. R. Reynolds conducted a feasibility study and determined the only viable option was building a combination police and fire station on 200 Massel Ave. SW, next door to Town Hall.

Valdese leaders announced at the town’s annual budget retreat on April 14 that building a new police/fire station could cost up to $10 million. A month later, that estimate jumped to between $10.8 and $11.2 million. Chief Financial Officer Bo Weichel said the sudden spike was due to rapidly rising fuel and material costs.