Since last summer. the 400 block of South Mesa Drive has been both a school zone and a construction zone. For the first time in its history at that location, Hopewell High School is undergoing a massive overhaul.
The $26 million project will replace antiquated plumbing, heating and cooling; expand the gymnasium; add energy-efficient windows and doors; and other improvements over the next few years.
Several aspects of the project, such as reconstruction of the school’s sewage system and the external aspects of the geothermal unit, have been put in place. What is not in place is all of the funds needed to complete the project.
Funding of the project comes in part from raising the city’s real estate tax rate by three cents on years where there is not an assessment . The first increase will go in effect July 1 and will raise the tax rate from 96 cents per $100 assessed to $99 cents.
Earlier in the year, it was discovered that all of the bids for the renovation were over budget and a plan was created to remove six items from the project if all of the funding could not be found.
Even with those reductions, about $7.5 million is needed to complete the critical portions of the project. If savings can be made during the course of construction, the deleted options of the project — such as the creation of a new bus loop and additional classrooms — will be restored.
The city’s financial consultants, Davenport and Company produced a plan to gather that funding and still allow for the city to build other facilities if needed. The city should be eligible for a federal qualified school construction bonds.
The tax-free bond would have to be repaid within 17 years and the reduction in debt service from other city projects would aid in repaying that bond. In actuality, the repayment will be 15 years as the city would not have to make payments for the first two years.
Another option presented by Davenport was a $7.7 million general obligation bond over 25 years. At the most, the interest rate would be 5.5 percent.
City Council will have to make a decision on the additional funding later this year. Meanwhile, while the school traffic remains to be dormant for the summer, the construction traffic continues.
