Chardon Council Shocked at New Estimate to Build Heritage House

January 16, 2014 by

The estimate of $748,293 for construction of the long-planned Heritage House on Chardon Square brought exclamations of shock and dismay from city council members Thursday evening.
“I think this number is absurdly high,” said Councilman Andrew Blackley. “For $320 a square foot, you could build the biggest McMansion. These numbers are just outrageous.”
The most recent bid for the project came in at about $458,000 from Enzoco Homes last year, Blackley said, adding a lower and more realistic cost than the estimate should be the target.
“I was speechless when I saw these (estimate) numbers,” said Councilman Jeffrey Smock. “I still want to see the building go.”
He also recommended aiming for a more reasonable price.
When the project first went out to bid last year, three responses, including Enzoco’s, came in under the estimate recently submitted by McGuiness Unlimited, said Chardon Director of Public Services Paul Hornyak.
“The finishes in the building are top-notch,” he said. “We were building a building everyone wants. I guess we need to look at what everyone needs.”
City Administrator Randy Sharpe said McGuiness told him the costs are high because the building is small.
“There are no economies of scale because of its size,” he said.
Adding in all sources of funds, the city has a total of $389,416 available for the project. The estimate did not include site work, which will cost about $50,000, or furnishings and equipment, Sharpe said.
Calling the estimate “overwhelming and disappointing,” Councilwoman Nancy McArthur — acting as mayor for the meeting — said any decisions should wait until Mayor Phil King returns.
“I campaigned on this. Everybody I talked to was in favor of this project,” said Councilman John Mallen.
He suggested the MapleFest committee contribute $75,000 since a fair percent of the building is designed to accommodate an evaporator for making syrup.
Another alternative, for the city to put about $75,000 of taxpayer money into the project, may be justified because the community will get use from the building and it may create a revenue stream for the city, Blackley said.
Sharpe said preliminary figures for return-on-investment from renting the facility out would probably help pay for utilities and custodial care.
Architect Hank Penttila, who has worked with the city for six years to develop the Heritage House plan, said he met with Sharpe and Hornyak to discuss the recent estimate.
Although he is disappointed, Penttila said he remains hopeful the project can be done.
“A well-qualified construction manager was chosen and the budget was studied in detail. I have confidence in the costs that were developed at that time,” he told council. “If council wishes to continue, I suggest renewing the effort by studying the features most essential to the project and to set aside those aspects deemed less essential.”
When he received McGuiness’ estimate, he was also surprised.
“When I got the cost estimate email, I thought something was wrong with my computer. It almost knocked me off my seat,” Penttila said.
The newly completed Munson Town Hall came in at $162 per square foot, he said, adding that included brick exterior.
The hall at St. Mary’s Church was just a shell with a dirt floor until enough money was raised to pour the concrete, he said.
“I just am dumbfounded we are at this point, but I am not deterred,” Penttila said.
Hornyak added, “The problem we have is we can’t build what’s been designed with the money we have,” despite the generosity of organizations and help from agencies.
He said he and his staff need direction from council to decide what can be eliminated without alienating the groups who have contributed.
Councilman Dan Meleski recommended council have a work session to do some “value engineering” and perhaps determine if the project is still possible.
“A lot of people have worked very hard on this,” he said.
McArthur said council, city staff and Penttila should get together as soon as a date can be agreed upon.
“We have some decisions to make,” she said.