Download 6 What Are Our Options?

What Are Our Options – Remodel, Add-on, Replace?
By Larry Eyre, IW Superintendent
This is the sixth article in a series to explain the need to begin planning for
the replacement or significant upgrading of IW High School. Last week I offered
some projections on the cost of replacing our current 1924-1954 building with a
state of the art facility. This week I want to discuss two other options that need to
be considered; remodeling the current facility or adding on to the current facility.
The first option, remodeling, does not appear to be viable. Many of the
concerns raised in earlier articles cannot be addressed in a cost-effective manner by
a simple remodeling. Three examples come to mind: 1) electrical – virtually all of
the wiring (especially in the original, 1924 structure) needs to be replaced,
including panel boxes and the fire alarm system; 2) plumbing – virtually all of the
water lines and some of the drain lines needs to be replaced; 3) heating system –
the radiators in the 1924 section are oversized for our current needs, and the
heater/blower units in the 1954 addition need to be replaced.
There are at least three other factors that also need to be considered: a)
asbestos – we know that there is some asbestos in the building (for which we
maintain a management plan), and we must “assume” that there is asbestos in
other, untested areas. This will significantly add to the cost of 1-3 above. b)
handicapped accessibility – there is no cost-effective way to make the original
building completely ADA compliant; c) obsolescence - even after remodeling we
would still have an old building which will soon need a new roof and eventually
need to be tuck-pointed; and finally, a major concern: d) where would we put our
students while the remodeling is being done?
A more realistic option would be to build an addition (south of the gym?) to
replace the 1924 structure. This would offer the taxpayers significant savings by:
a) avoiding the cost of new property and new infrastructure; and b) eliminating the
need for a new football field and gymnasium. It would also have the advantage of
allowing classes to continue with very little disruption while construction was
underway.
While the cost of such an addition could vary tremendously according to the
number and nature of the rooms being added, and the degree of renovation to the
1954 addition, some estimates can be made. For example, the 1924 addition
consists of just under 22,000 square feet. For consistency, we will use the same
$150 per square foot construction cost estimate that we used last week (although an
addition consisting mainly of classrooms would probably be a little less costly).
The projected cost at today’s prices would be $3,300,000. There would still,
however, be life safety work that would remain to be addressed on the 1954
addition.
Our architect estimates that we have $450,000 of Life Safety work that we
would still need to be addressed in the 1954 addition. It would only be logical to
do this work as part of the over-all construction project. That would raise the
entire cost of adding on to approximately $3,750,000. Again, we must assume
that there will be cost over-runs. Last week we assumed $500,000 in unanticipated
costs. While the scope of this project would be much smaller, most contractors
would agree that the chance of unanticipated expenditures increases when you
remodel or add-on as opposed to constructing a new facility. I’ll assume $400,000
in cost over-runs. Now the total is $4,150,000
As I mentioned in last week’s article, if we assume that a new high school
would not be completed before the summer of 2011, and if we assume 4.25%
inflation per year for the next four years, the cost is now just over $4,900,000.
As we did last week, let’s assume that the State of Illinois would pick up
50% of the cost (historically this has varied from 35% to 70%). At that rate, the
cost of the project for the district would be $2,450,000. But - I have not included
the cost of demolition and removal of the 1924 structure. That is because: a) the
state probably would not share in the cost of demolition, etc; and, b) it is a historic
structure and we may want to preserve it and find other uses for it. Regardless,
there would be some expenses here; for the sake of these calculations I will add
$150,000 to the district’s costs.
If we assume that the district would borrow the entire amount by selling
Capital Development Bonds, and we assume (as I did last week) that we will be
charged 5.5% - the 20-year bonds with our current equalized assessed valuation
would increase our tax rate by approximately 32.8 cents per hundred.
You will recall that in the previous two articles, I mentioned that there are
three different areas of your tax bill in which you can expect to see a reduction
over the next 2-4 years. I believe that those decreases will total approximately
33.5 cents. That would mean that this project (assuming that the state pays 50% of
it) would not result in any increase in your property tax rate.
Again, both this option for an addition to the east end (i.e. adding to the
1954 addition) at no increase, and the possibility of a new high school with a 45¢
increase, hinge on our having a plan in place when the state releases Capital
Development Funds. NOW is the time to begin planning.
Next week: “What Other Factors Need to be Considered?”
P.S. I want to thank those who have contacted me with their ideas and opinions.
Please keep the comments, concerns, and questions coming (815/265-4642 or
[email protected] )