Poplar Bluff council looks at 20-yr. financing for city complex

Poplar Bluff officials believe the cost of a new city complex could be paid through a 20-year debt covered by an existing capital improvement sales tax.

The city can afford payments of approximately $1.2 million under figures presented Tuesday to city council members by Todd Sweeney, with consultant Navigate Building Solutions.

The figure was reached in consultation with the city’s financial advisor, WM Financial Strategies of St. Louis, and takes into consideration other existing debt, he explained.

This image from the city of Poplar Bluff's Sept. 3, 2019, facility planning report shows a possible location for a new city complex between Shelby Road and Kannell Boulevard.Photo provided

The capital improvement sales tax collects approximately $2.4 million per year.

It is a dedicated source of funds that can only be used for building and equipment needs, city manager Mark Massingham explained. It cannot be used to pay for benefits or salaries, he said.

The city decided Tuesday to pursue an estimated project of $16.2 million to construct a new city hall, police department and city court on Shelby Road.

Sweeney said with a decision by the council, Navigate could continue the steps needed to complete due diligence on their choice.

Figure do not include any costs for the city to remove dilapidated property it owns in the downtown area, including the former city complex on Second Street and two closed parking garages.

“This slide is intended to indicate what is required,” Sweeney said of a break down of costs. “If you do both buildings at Shelby, it is not required to take buildings down.”

Navigate demolition costs at the Second Street site at approximately $500,000.

Sweeney said it does include what Navigate believes would be the right size facilities for the city’s current and future needs.

After speaking with city staff members, Navigate has determined the police department would need to be 27,050 square feet. It would include 2,000 square feet for a dispatch center that is currently located off site, along with the addition of holding cells.

A combined space of 12,000 square feet would be planned for city hall and city courts.

A proposed diagram of the Shelby Road site could have two separate buildings, one for police and one for other offices.

The former Second Street complex was around 35,000 square feet, but the city is operating more efficiently now, Sweeney said.

“Ultimately, that’s what we’re trying to do here is define the facility that will give better quality of life to the community you serve,” Sweeney said.

Navigate estimates approximately 2.5-3 acres of property will be needed. Less acreage is necessary if a two-story facility is constructed, but might increase construction costs, Sweeney said.

Navigate believes the city will spend approximately $11 million on construction at Shelby Road, with a possible $1 million in property costs.

Massingham told council members the property in question is owned by First Missouri State Bank, which may be willing to donate a portion of the land’s value to the city. The bank also did this for the new Municipal Utilities location, Massingham said.

Another $1.7 million would be spent on professional fees, including about $600,000 for Navigate.

Furniture and fixtures have been budgeted at $550,000, and permits/testing at $130,000. A general contingency fund of nearly $1.5 million would also be set aside.

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This story has been edited to remove a map with an incorrect diagram of the proposed Shelby Road location.