BY SCOTT SULLIVAN
EDITOR
Douglas City Council Monday finalized issuing $3.23 million in capital improvement bonds to renovate 415 Wiley Road into a new city hall, police station and more.
The city Aug. 1 last year bought the 18,000-square foot Douglas Professional Center — known locally as “the old hospital” — on the corner of Wiley and Blue Star Highway for $1.5 million, eyeing consolidating municipal services on that 7.8-acre commercially-zoned site.
Council braked plans to include public works there once cost estimates came in, but still pursued city hall and police relocations via Carbon 6 Construction.
Notice of intent to issue up to $4 million in bonds towards that end without a public referendum, unless a petition was filed containing valid signatures of 10 percent of electors, was posted in the Oct. 17 Commercial Record.
Council’s Dec. 2 meeting marked the end that referendum period. Miller Canfield bond attorney Thomas Colis told members Monday funds should be on hand by Dec. 18.
Douglas now operates city hall in the 1875-built Dutcher’s Lodge at 86 Center St. Last year engineers estimated it needs $1.4 million in renovations to meet modern standards.
Police are housed in a more-recent one-story brick building at 47 W. Center that lacks garage space for cruisers and other vehicles.
Sale of those buildings and other city-owned parcels might help pay off bonds but also leave them empty, returning nothing while still needing maintenance.
The bonds will bear 5.35-percent interest annually, with principal payable on Dec. 15 from 2025 through 2044, or semi-annually on June 15 and Dec. 15 each year, beginning June 15, 2025.
Douglas can prepay or redeem the bonds in whole on any date on or after Dec. 15, 2034. The city can also prepay the bonds in part on any interest payment date, but only from the proceeds of the sale of existing city properties subject to additional conditions.
The cost breakdown for the work shows $2,402,193 for direct construction costs, $313,462 for indirect building costs, $184,625 for furniture, $94,720 audio/video budget, $24,645 for security system and $150,000 for owner contingency.
Council June 17 approved Carbon 6’s architectural design/engineering costs of $129,150.
