How to finance $6.5 million Naples rec center?
By Dawn De Busk
Staff Writer
NAPLES — In an effort to get feedback and prepare something that is palatable to the voters soon, the Town of Naples is hosting a series of workshops on the proposed recreation/community center.
A very rough estimate price tag of $6.5 million was revealed, based on cost estimates provided by Great Falls Construction. (It was pointed out that a more thorough and detailed engineer’s design would be one step in nailing down the exact cost.)
Along with making public that proposed cost of $6.5 million, the town manager presented different approaches to financing the project.
Naples Town Manager Jason Rogers provided four different scenarios for repaying the loan.
If the project is approved by voters, the town would apply for a USDA loan, Rogers said.
If the town took out a loan for 100 percent of the costs and paid it back in 30 years, the mil rate would go up .27. Taking 25 years to repay that loan would increase the mil rate by .30.
If the town used $650,000 from the general fund and borrowed 90 percent of the costs, the mil rate would increase .25 in a 30-year repayment plan. If the town takes 25 years to pay off loan and uses existing money $650,000, the mil rate would go up .27.
Another separate but related expense that Rogers presented: Annual operating costs totaling about $100,000, which equate to another .07 increase in mil rate.
“My recommendation is to use $650,000 from the general fund and apply to overall costs. We would be financing $5.85 million,” Rogers said.
Last Thursday evening, the first workshop was held. The second workshop is planned for another Thursday, Aug. 8, starting at 6:30 p.m. in the Naples Town Hall.
“The purpose of the workshop series is to take input from the community and address questions regarding the project. The goal is to have an article on the November ballot, allowing the community to vote on the project,” Rogers said.
The workshops are part of the timeline to take the request (to borrow money and build a new recreation center) to the voters during the November election. Along that timeline, Sept. 5 is the date the town will provide to the public an updated plan and cost estimate that will appear on the November ballot. Sept. 9 is the date that the Naples Select Board will vote to put it on the ballot as a referendum. Then, residents will be able to decide whether to accept or reject the recreation center plan on Nov. 5, Election Day.
Most recently, on July 18, about 20 residents attended the initial workshop. About 20 people were there to hear the presentation and ask questions about the project and the mil rate impact.
One woman named Andy asked how many residents live in Naples and out of those how many are homeowners versus renters.
The census puts Naples population at 3,985 people. The number of people living in homes they own is right around 3,000.
Andy said many landowners voting on this project might not be alive in 25 to 30 years to help pay off the loan — if it passes at the polls. Who is going to pay off the loan, she asked.
Also, she pointed out that towns could tax owners of short-term rentals up to 9 percent. The state would reimburse the town, which in turn could apply that tax to paying off the loan. That hinged on whether a bill being proposed and passed in Augusta, she said.
Bob Caron II said it would be helpful for voters to know which debts will be retired in the next couple years.
“For the next workshop it would be nice to have what other bonds will be paid off in 2027 when this rolls into effect,” Caron said.
Ken Norton stressed the importance of locking in a maximum cost with the contractor. Also, with a more detail design sketch, the costs will become more accurate, he said.
As the first workshop wrapped up, Rogers highlighted some of the ideas that he planned to research between then and the second workshop in early August. These are things brought up by those in attendance.
Rogers’ to-do list included:
• Working with Great Falls Construction on a guaranteed maximum cost
• Working with Great Falls Construction to come up with rough timeline when structure could be built.
• Researching alternative energy solutions to be incorporated into plan. Getting the square footage of roof top for possible solar panels and talking to knowledgeable non-profits about viable options.
• Providing a line-up of debts being paid off and those that will be retired by 2027
• Look into requirements for MDOT traffic study. Figure out what changes could occur on Route 302 to make it safer.
• Come up with more potential uses for the recreation center
While Rogers was describing the interior of the proposed center, a gym floor made of shock-absorbent material impressed some people who have been using gyms in the region.
“Right now, it has a large, multi-use gym. The floor type is something friendly to the knees and joints,” Rogers said.
Recreation Director Brian Crockett zoned in on the gym floor.
“The end decision has not been made. We do want a floor where it is not limited to just basketball or just pickleball. We want a floor where the whole community can use it. We want to not put any barriers for uses to the community,” Crockett said. “Within this very modest building we want a floor that is multi-use. Part of that is one that is easy on the knees.”