Middleton House estimate doubles; commission weighs borrowing options to fill $3M gap

Commissioners reviewed funding options for the Middleton House archaeology building after staff reported updated construction estimates significantly above earlier projections.

Meredith Breidenstein said the city has about $1,465,000 in a committed reserve for the Middleton House and planned $500,000 in general‑fund dollars plus $1,000,000 from visitor‑information funds this year, but recent estimates place construction costs "just north of $6,000,000," producing an approximate $3,000,000 shortfall. That shortfall prompted discussion about whether to phase the project, add borrowing to the island fire station bond, or borrow from the utility fund internal reserves. Breidenstein noted interfund loans have been used in the past and can be repaid with interest to the utility fund.

Commissioners expressed support for moving ahead and avoiding project delays, and some favored the interfund loan as the more flexible option than a larger, longer bond. Staff said they would return with firm options and timing for any borrowing and with a plan to draw funds only as needed so reserves remain available for utility priorities including the wastewater treatment plant deadline in 2030.