New $17M Herman Park facility could result in tax hike for city residents
By Rochelle Moore
Published in News on July 20, 2017 5:56 PM
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A preliminary rendering of a new Herman Park Center, facing Ash Street, by HH Architecture.
Goldsboro's elected leaders may consider a property tax increase as a way to pay for a new, state-of-the-art Herman Park Recreation Center that could cost as much as $17 million.
The Goldsboro City Council, which has discussed a new center for at least a year, talked for the first time publicly Monday about the possibility of raising taxes to foot the bill.
The topic was raised by Councilman Gene Aycock, who has consistently shared concern regarding city spending, during a presentation by HH Architecture. The Raleigh architectural firm was hired by the city, under a $39,500 contract in 2016, to complete design plans and estimated costs for the project. Preliminary plans were presented to council Monday.
"The way I see it is, we can't do this without a tax increase," Aycock said.
Aycock said the council needs to decide whether residents would support the project.
"You've got to ask the question -- do they want to pay more taxes?" Aycock said.
Scott Stevens, city manager, said a property tax increase wouldn't be considered for approval until the next fiscal year budget process, prior to the council adopting the 2018-19 budget plan in June.
During the meeting, HH Architecture presented two building options and different cost projections. A 58,630-square-foot building, with two gymnasiums, would cost almost $14.9 million. A 67,170-square-foot building, with a third gymnasium, would cost nearly $17 million.
The two-story building, which would face Ash Street, is proposed to include a double gymnasium, second-floor walking track, a fitness room, youth and adult rooms, a room for special populations, locker rooms and showers, multipurpose rooms, art rooms, a kitchen and outdoor spaces, including a three-wall racquetball court, grilling patio, areas for shuffleboard and cornhole and a basketball court.
The building features were selected after HH Architecture hosted an open house at the Herman Park Center a year ago, which included public feedback and input. Initially, six floor plans were presented, with the number shortlisted to two. The final plan currently under review was approved by the council earlier this year.
Stevens said, based on estimates provided by the city's financial consultant, Davenport and Associates, a property tax increase of 2.5 to 4 cents per $100 in property valuation would be needed to pay for a $10 million building.
Earlier cost estimates, provided by Goldsboro Parks and Recreation Director Scott Barnard, initially tagged the project somewhere between $8 and $12 million. The estimates were provided before HH Architecture fine-tuned the estimated cost.
Mayor Chuck Allen said a new facility is needed, but the council needs to know whether the community would support a tax increase.
"My whole thing is, I would really want to be sure, whatever we do before we move forward with anything, that we agree and we have public agreement to whatever level we're going to have it," Allen said. "Then, I would also think we would want to hear what the public, what our taxpayers, have to say about a tax increase.
"To me, whether we spend $10 million, $12 million or $15 million over the next 50 years, it's got to be relevant. I want to build a facility that's going to serve our community for the next 50 years."
The council didn't make any decision during the meeting. Stevens said the council may discuss the project further in August.
Kristen Hess, principal with HH Architecture, said it would take close to a year to complete design plans for the building and close to 18 months for construction. HH Architecture also worked on the new W.A. Foster Center, which opened in 2016, and the Maxwell Regional Agricultural and Convention Center, under construction on Wayne Memorial Drive.
A new Herman Park Recreation Center, which would be built on the same property, near the corner of East Ash Street and Herman Street, would nearly triple the size of the existing 18,500-square-foot building.
The center, originally built in 1892 and used as an orphanage, was purchased by the city and renovated in 1971 as a community center. The building was never intended to be a recreation center but was adapted and has been used as recreation space for decades, Barnard said.
Stevens said Wednesday that a one-cent increase in the property tax rate would produce $220,000 in revenue annually. An increase of 2.5 cents would lead to $550,000 in annual revenue and a 4-cent increase would produce $880,000.
The increase would need to be first approved by the state Local Government Commission, which provides fiscal oversight to local government. The LGC would likely want the city to finance a loan for a 15-year term, Stevens said.
A property tax increase is the favored approach, since the city has other debt obligations and voters, in November, approved a $10 million in bond package for road improvements and the construction of a future multisport complex.
"My opinion is, if they want to build the Herman Park Center in the next year or two, they would need to have a tax increase," Stevens said.
Aycock said Wednesday he's concerned about the increasing cost of the project, which started in the $10 million range and is now closer to $17 million. Aycock had the same concern when the W.A. Foster Center was built, a project Aycock said started at a $2 million estimate and ended closer to $6 million.
"I'm afraid they're going to do the same thing here," Aycock said. "We've got to have some way we can control spending."
Aycock said he understands the need for a new facility but remains uncertain how the city can pay for it.
"I don't think we should raise taxes 4 cents to build a new recreation center," Aycock said. "I'm not willing to commit one way or the other. I'd like to get a better feel for what we're really willing to put in (the building).
"I think we need to have a serious discussion about what we really need than what we want and then make a determination if we can afford it."
Councilman David Ham said city officials understand the need for a new recreation center.
"I believe there's an agreement that we need to replace it," Ham said. "What the final design is and the financial impact is has yet to be determined."