Valdese Town Council Cancels Contract with CBSA Architects Amid Delays in Public Safety Building Project, Dispels Rumors

The Valdese Town Council has unanimously voted to terminate the town’s contract with CBSA Architects, the firm that had been hired to prepare the construction documents necessary for a proposed new public safety building. 

Acting after a closed session at its Monday night meeting, the council was not swayed by a presentation and update by Marty Beal representing CSBA. 

Work had been suspended on the project as of Nov. 20 at the request of the incoming council members, however, the progress on the development of the construction documents has been rife with delays and setbacks throughout the multi-year process, officials said.

Referencing the rumor that the town was holding construction documents and had already received bids, Mayor Charlie Watts said that nothing could be further from the truth. To date, the town has received nothing other than preliminary sketches. 

Newly sworn Councilman Glenn Harvey said that he was one of the people who thought the project was out for bid based on his professional experience in commercial building projects. 

“I was one of the people who would’ve thought that construction documents had been submitted and were sitting somewhere. 

“I built two commercial buildings. One this size and one twice this size,” Harvey said referencing the Valdese Town Hall. 

“From the time my board said go, until we occupied it, was less time than from March 2022 until tonight,” said Harvey. “I couldn’t believe there wasn’t an answer as to why we didn’t have construction documents.”

Beal confirmed that construction documents have not been completed and have not been submitted to the town. When pushed for a timeline by Councilman Paul Mears, Beal said that by the end of January the firm could be finished with the construction documents. 

“This project has been kicked down the road like a can and I think what I told you guys (Ward, Harvey and Ogle). It’s time to quit kicking the can and fix the problem,” said Watts. 

Addressing Beal, Councilwoman Rexanna Lowman said, “I would have to say Marty, how disappointed we are in the work that's been done and that this could have been communicated to us in a timely manner. 

“This is just not the way you do business and I want you to know that,” added Lowman.

Mears agreed, “Communication throughout this process, I think it has been very poor. We have been very disappointed. The citizens deserve to know what the cost is.”

Harvey reminded the council that when the project began it was projected at $260 per square foot. 

“Now instead of talking about $6.5 (million), we’re talking about $9.2 plus another two or three million considering the soft costs. I don’t have the number off the top of my head, but it would run up to $12 million,” said Harvey. 

According to Beal, the cost of the construction of the public safety building is now anticipated to be $9.2 million dollars plus any soft costs such as design fees, engineering fees, and geotechnical fees, potentially pushing the total project to approximately $10 million. 

Beal said the engineering firm had suspended all work upon notification by the town but if they obtained permission to restart the work in December the drawings should be ready for review by the end of January. 

Beal placed the blame on the design team, saying that the delays were in part due to the holidays, staffing shortages, and heavy workloads. He said that even with the delays they expected the project to go out to bid in April or May. 

The cost so far

In all, the town has paid $225,850 of the contracted $451,850 total for the preparation of construction documents and related services.

According Bo Weichel, Finance Director and Assistant Town Manager, the town paid $50,850 for schematic design and $67,890 for design development.

The town paid $52,400 for supplemental services such as surveying, USDA reports, programming, and owner meetings and $7,250 for amendments to the original contract to cover additional survey work. 

In addition, the town has also paid $47,460 specifically toward the development of construction documents, which is approximately 35% of the contracted amount. However, no construction documents have been delivered to the town.

Of amount the town has paid thus far, $113,490 was paid using funds from a $500,000 USDA grant designated for the renovation of the existing building or the construction of a new facility. 

Weichel said that should the town decide not move forward with improvements to the existing facility or with building a new public safety station, the balance of the grant, the remaining funds would have to be returned to the USDA.

Rising interest rates and estimates

In February 2022, based on the presentation from CBSA, the town reported having the availability to obtain a new construction loan of over $7 million (6.5 million for renovations) at 2.25% for a 40-year term. 

A year later, in March of 2023, the town accepted an offer from the USDA for a loan of $7,241,900 with a 30-year term at a fixed interest rate of 3.75%. The council unanimously voted to accept the loan terms and interest rate to potentially avoid a projected rate increase expected on April 1, 2023. 

However, the town is not obligated to use the loan but was acting as most property buyers and essentially “locking in” a preferential interest rate and terms. The town is not obligated to take the funds until/if they would be needed for the construction of the public safety station. 

The 3.75% interest rate and 30-year term offered by the USDA does not apply to any renovations of the existing facility. The loan terms only apply to new construction of a public safety building. 

Details for the planned public safety station, loan information, and details on the town’s budget are available on the town’s website at https://www.townofvaldese.com

Pam Walker is the Central Burke Reporter at The Paper. She may be reached at pam@thepaper.media or 828-443-6103.