NEWS & ANNOUNCEMENTS

Effingham Moves Forward with Sports Center Project Without the YMCA

Release Date: Aug. 6, 2007

The City of Effingham is moving forward with the project to build a sports complex, but it will be going at it alone, according to information recently presented to the public.

After nearly two years of discussion on including the YMCA in its plans to build the Effingham Community Sports Center, Economic Development Consultant Hank Stephens announced the City is taking a new direction with the project after calculating the savings of having an independent project.

According to plans from the City’s original proposal, the existing YMCA was to be purchased by the City and become a part of the sports complex, and the Y would then rent space at the new facility to continue its programs. However, Stephens said after “good faith” negotiations, the two have decided to go separate directions on the project.

“It is nobody’s fault,” said Stephens. “We negotiated in good faith, but were unable to come up with an arrangement that suited both the Y and the City. It was like trying to fit a square peg into a circle.”

As a result, the Effingham City Council will not be executing an option to purchase the Y’s building, and instead, will consider purchasing property to the east of the Y to construct the approximately 90,000-square-foot facility, which will house a studio-size hockey rink, a competitive pool, a recreation pool, and a multisports area.

The change in plans is expected to save the city about $1.25 million in project costs, said Stephens.

Since the city will no longer purchase the Y property and since the new construction will not be tied to the nearly 30-year-old building, Stephens said it is expected to save the city $2.25 million. However, there will be some costs incurred by the city. The new complex will have to include locker rooms into the plan, and the city will lose nearly a half million in grant funds. Stephens said the actual savings would be about $1.25 million.

And considering the price tag for the project had found itself over $14 million, City officials were looking at ways to decrease the cost of the project.

“We believed at an earlier date that the project would be less expensive, but with the addition of the recreation pool, the two additional lanes in the lap pool, the elevated track and other added expenses, the total cost of the project exceeded our original estimated cost,” said Stephens. “However, we still believe this project is beneficial, and we believe the price tag to complete the project is worth every dollar because of the positive impact it will have on our community.”

According to estimated costs, the project will cost $13,008,900, with $9,868,000 for the building cost, $1,215,900 in property costs, $925,000 for parking lot construction, $400,000 for the extension of Maple Street, and $600,000 in construction oversight.

Stephens said the project is one the City can “comfortably afford,” with $5.5 million to be paid from the Hotel/Motel Fund over a 20 year period, with $4 million to be paid from the Tax Increment Finance Fund over a 10 year period, and with $3.5 million taken out of this year’s TIF budget.

“The Sports Center is one unique project that these funds can be used for that will benefit everyone,” said Stephens, adding because the funds are restricted they can only be used for certain projects.

Mayor John Lange reminding residents that this is a “community project.”

“This project is about you, the community,” said Lange. “It is not an ‘I’ project. It is the community’s project.”

Because of the direct benefit to residents and the potential economic impact of such a facility, City officials have indicated they will continue to support the project as plans are developed.

“The City of Effingham believes the Sports Center to be a worthwhile project and will continue its efforts to turn this vision into a reality,” said Lange. “Based on the benefits of such a facility and the unique opportunity to use restricted funds to benefit all City residents, the Effingham City Council will move forward with the project, as it is in the best interest of the area it serves.”