Council questions bonding, costs as staff prepares central-kitchen contract work

Craig, director of community and economic development, told the council the central-kitchen project has secured roughly $1,000,000 in congressional earmarks and $500,000 from the Northern Border Commission and that current budgeting allows for up to $6,000,000 in bonding to support the project.

Councilors pressed staff on sequencing: several said it would be poor practice to negotiate a construction-manager contract or issue bids before finalizing expected bonding and confirming the city’s financial commitment. "It's a waste of time negotiating a contract if you don't have the money to pay for the contract," one councilor said.

Craig said staff have been refining cost estimates and plan to return with a proposal and contingency numbers before the council commits to bonding or a final construction contract; he recommended discussing the project at the January BED meeting so councilors can review updated costs and ask detailed questions before approving any contract.

Councilors asked staff to place the central-kitchen item on the next BED agenda and to provide prior feasibility and operating-cost estimates that had guided earlier planning. Staff said the project began in 2015–16, that a shift from renovation to demolition-and-rebuild had driven changes in scope, and that initial assumptions for early operating subsidies will be re-sent to councilors for review.

The council agreed to remove the central-kitchen contract-approval item from the consent agenda and schedule a fuller discussion at the next committee/board meeting so members can examine funding contingencies before proceeding.