Construction of Valdese's public safety building to begin in September

After eight years of discussions and debates, Valdese officials will break ground on a building for its police and fire departments next month.

Staff was given the green light to secure a loan for the project in a split vote on Monday evening.

Local Government Commission (LGC) documents indicate funding for the project totals $11.51 million, covering construction, engineer, special council, and other costs plus contingency funds.

The town will cover $10.8 million of the costs with a loan. Another $710,000 donation has been pledged from unnamed industry leaders.

The council voted 4-1 to approve a $10.8 million, 15-year financing proposal from Webster Bank at a 4.27% interest rate. The total payment is $14,477,799.

A substantial completion date of July 28, 2028, was also established in a 4-1 vote.

Councilwoman Heather Ward was the single opposing vote.

“My vote … had absolutely nothing to do with my support for the outstanding men and women who serve and protect our town,” Ward said after the meeting. “They deserve a safe, modern facility, and I sincerely appreciate the sacrifices they make every day on behalf of our community.”

Ward said that, as a council member, it is her responsibility to evaluate information, ask hard questions, and be a careful steward of taxpayer dollars.

Ward said she asked what would happen if the Guaranteed Maximum Price (GMP) exceeded $10 million at the annual budget retreat in April. She said she was “told emphatically that it could not, because the town simply could not afford it.”

The amount jumped from $10 million to a range between $10.8 and $11 million within a month. Chief Financial Officer Bo Weichel said it was due to the rising cost of fuel and materials.

Town Manager Todd Herms said at the May 28 budget hearing that the town has some money set aside for the project and revenue from several buildings, if sold, would go toward the project fund.

On Monday, the town approved the sale of 215 Main St. E for $378,060. This money will go towards the project.

Herms also said at the budget hearing the town has “a pledge from a private entity that will help us raise whatever shortfall that we may have when they heard that the project had come in over $10 million.”

Ward said her concern is whether the town can responsibly take on a debt this large.

“I would have preferred to see the project come in at a lower cost, so as not to place additional financial pressure on our taxpayers,” Ward said. “Reasonable people can review the same information and reach different conclusions. I respect my fellow council members and their votes, but my decision reflected what I believe is my fiduciary responsibility to exercise caution with taxpayer dollars based on the information available to me.”

On Tuesday, Valdese cleared its last financial hurdle when the LGC approved the town’s proposal for the public safety facility project.

Valdese’s project was the only item out of 10 that LGC board members pulled off the consent agenda. After brief discussion of the town’s debt load — based on information sent to them from “a former councilman,” one said — the board unanimously approved the project.

D. R. Reynolds Senior Project Developer Bob Rawson said it is expected to take about a year and a half to finish construction, and that the project is currently scheduled to kick off on Sept. 14.

FINANCIAL CONCERNS

Early in the discussion, Ward asked Rawson to lay out how contingency funds work.

Rawson said contingencies are unforeseen circumstances. If the contingency funds are dipped into, Rawson said the request to use that money would go before Town Manager Todd Herms. It would then go before the town council for final approval before the money can be spent.

Councilwoman Shannon Radabaugh asked what would happen if “allowances are proven insufficient.”

The contract with D. R. Reynolds includes a market factor buffer to offset costs that may increase, Rawson said.

“We cannot exceed your Guaranteed Maximum Price,” Rawson said. “At the end of the day, the (GMP) is the (GMP) of what this can cost.”

Rawson added that if construction costs exceed the GMP, that money comes out of D. R. Reynolds’ pockets, not Valdese’s.

“I will tell you that in my career, it’s 36 years on Labor Day, I’ve never come back to council to ask for more money,” Rawson said. “My goal is to come in under $10.83 million. Can that happen? This market is not stable right now when it comes to construction … but at the end of the day, I can’t spend more than the money (allotted) for this project.”

Ward expressed further concern on the town’s financial future.

“Every family has a (financial) threshold,” Ward said. “I just want to make sure as a town that we are OK, because … a couple of months ago, we couldn’t afford ink for printers.”

At a meeting several months ago, Herms shared an anecdote about finding the money to purchase ink for Town Clerk Jessica Lail to emphasize the fact Valdese is operating on a tight budget.

Ward said infrastructure needs such as paving roads will be slowed down because money typically allocated for paving was redirected for this project. The town will now rely on its Powell Bill funds for paving projects.

“We need to go ahead and let our citizens know now that, yes, we need public safety. It’s … definitely our top need in a town,” Ward said. “But I think we do need to prepare our citizens for the fact that things will maybe not go as fast without taxes going up again.”

BACKGROUND

The public safety facility project has been in the works since 2018 when a structural engineer completed a study of the building at 121 Faet St. SW. In 2024, the police and fire departments were promptly relocated when part of the building was condemned.

Last year, the town council had several options to renovate existing buildings or construct a new one. D. R. Reynolds conducted a study and determined the only feasible option was building a new police and fire station on 200 Massel Ave. SW.