Slow economy could help Cedar Rapids School District

The current financial climate could benefit the Cedar Rapids school district.

“The bidding climate is very competitive right now and everyone feels it will continue through the fall,” said Mike Gumm, project sponsor with Shive-Hattery Inc. of Cedar Rapids.

Everyone being local contractors Gumm has visited with about the district's new Educational Service Center, to be constructed at 2933 Ellis Rd. NW.

Gumm presented an update of the project to school board members Monday night. In his discussion with local contractors, Gumm said they reported project bids coming in 15 to 25 percent below the norm.

This could potentially decrease the district's project by up to $10 million.

Board members unanimously voted to build the new facilities on district-owned property in November. At that time, the project had a $35.05 million dollar price tag, with the Federal Emergency Management Agency to cover $12.46 million.

The district has since added nearly $10 million in architectural and engineering, and contingency fees, for a project total of $44.5 million. However, if bids come in 20 percent below the norm, the district could see the total cost fall to about $35 million. Even bids 5 percent below average could shave about $2 million off the total cost.

The Educational Service Center, the ESC Annex, the carpenter/paint shop, the main warehouse and the food service warehouse - damaged in the June 2008 flood. The services have been operating out of temporary facilities at Kingston Stadium and in leased space at 931 Blairs Ferry Rd. NE. The buildings have been cleaned, but remain unused except for storage.

Steve Graham, the district's executive director of business services, said it will cost the district $256,764 to maintain ownership of the buildings during the construction of the new administrative building.

The cost to dispose of the buildings, and lease storage space, has a price tag of $484,000 up to $619,695.

“Clearly, the right decision is to stay put until we move to our new facility,” Graham said.

The new facility will house about 200 district employees in 27 departments. The district must complete its new facilities by May 27, 2012, in order to cash in on FEMA and state recovery financial assistance.

“The need for a $45 million dollar administration building at this time is totally without merit and will be an irresponsible act by the board,” Dick Fredericks of Palo, a spokesman with activist group Iowalive, said at the meeting.

Fredericks said the board could spend a fraction of that money and move back to the original administrative building, investing in flood protection for the facility.