JACKSON, Wyo. —The Jackson Town Council and the Board of County Commissioners met for a joint meeting Monday afternoon to allocate additional funding for the Rec Center expansion project.
The project, originally approved by voters in 2019 at a $22,000,000 price tag, is now being priced at 33,663,002.
According to the staff report, prepared by Parks and Rec Director Steve Ashworth, additional funds are required due to an increase of project scope and substantial construction escalation since 2019.
The total project scope increase is estimated to cost about $5.8 million and includes an increase in square footage for the indoor climbing facility, water,sewer and storm drainage work for the King Street extension, upgrades to HVAC systems and additional lobby space.
Construction escalation increases are estimated at about $8.2 million. In 2019, town staff used existing contracted construction costs of $371/square foot and added a 20% escalator to estimate costs at $465/square foot.
Due to the pandemic, supply chain challenges and 40-year high inflation, the actual increase was 25% in 2021, bringing the cots to $623/square foot, Ashworth said in the staff report. The cost is now estimated to be $703/square foot.
“In the last five months, the construction industry has seen an additional escalation in cost by another11% bringing the formal bid cost of the project to $703/square foot.”
According to the staff report prepared by Steve Ashworth.
The town and county agreed to the guaranteed maximum price of 33,663,002, which includes, base bid items and alternate bid items including a splash pad, an extension of the elevator to the roof, synthetic turf play court, asphalt paved multi-modal pathway and facility monument sign.
Teton County is contributing 55% of the costs and the Town of Jackson is paying 45%. The Board of County Commissioners will contribute $7,957,606.25 from the Teton County General Fund and $1,080,000 from the Teton County Energy Mitigation Fund.
The Town of Jackson will contribute $6,510,768.75 from the Town of Jackson General Fund, $463,543from the appropriate restricted utility funds, $325,000 from the 2010 King Street Extension SPET Fund, and $129,000 from the Town of Jackson Public Works Storm Water Treatment DEQ?319 Grant.
Councilmember Jonathan Schechter suggested delaying the vote to this Monday.
“I have no problem with the Rec Center expansion, I think it’s an important thing and I support it in its totality. My concern is, there are several cost overrun related projects in front of us now.” Schechter said.
Schechter noted that the $6.5 million dollars requested is the surplus the town has in the general fund. “This is a huge chunk of money,” he said.
“My great concern is we are looking at this in a very siloed way instead of a holistic way,” Schechter said. “My great fear is that we will continue to face huge cost overruns on capital projects.”
“There’s a moral obligation to follow through with what the voters asked us to do,” Vice Mayor Arne Jorgensen said during the meeting.
The town passed the spending 4-1 with Schechter opposed.
The Board of County Commissioners voted unanimously, approving the funding. Chair Natalia Macker was absent from the meeting on maternity leave.
The project is scheduled to begin June 1.
