Wednesday, October 16, 2024

 

VISITOR CENTER RENOVATIONS—Transparency & Media Coverage

The cost of the new visitor center at Executive Plaza is a good case study of government transparency and the current state of press coverage in the city. Reality does not align with the press releases and reporting.  The approved budget was $1.48 million, covering renovations and lease payments. The actual cost is just over $2.8 million.

In a recent news story, it was reported that most of the $2.43 million cost for the new visitor center renovation came from the sale of the old visitor center.  What was not reported was that the original budget for the project was $1.35 million including lease payments to the EDA. And what was the original financing plan and timeline for the project?

When the City Council voted to sell the visitor center, the staff report noted that proceeds from the sale and a $210,000 state grant would cover the renovation costs.  The report noted, “Hence the total budget available for the construction of the new space is $1.35 million. “Staff is comfortable that this is sufficient to build a best-in-class Visitor Center.”  No general fund revenues were going to be spent.  The actual cost has exceeded this budget by over a million dollars and general funds were spent. But did the city really have $1.35 million to spend?

It was reported that the city was leasing the old visitor center while renovations were ongoing, but no specifics or project timeline were provided. When the council voted to sell the visitor center in August of 2022 staff noted that, “The City would strive to occupy the new space by Dec. 1, 2023.” The project is a year behind schedule. And at what cost?

The city’s lease payment to the Economic Development Authority (EDA) for the use of the old visitors center was $9,984.22 a month. Based on the December 2023 completion date $116,321 was deducted from the sale proceeds to cover the lease payments. However, due to the delay in completing the renovations, the payments to the EDA totaled roughly $176,000 and a further $60,000 will be paid through November to the new owner. That is roughly $120,000 over the proposed lease budget.

In addition to the lease payments, there is the renovations for the Economic Development Department, which also had to be moved with the sale of the old visitors center, which added $150,022 to the cost. So, the total cost to the city for the project was $2.8 million not $1.48 million per proposed budget including the expected lease payment deficit of $1.32 million to be covered by city taxpayers. This for a project that wasn’t supposed to cost city taxpayers anything.

At a time when taxes and fees are going up, council members lament delays because of a lack of staff, and with vacancies in police and fire, residents deserve to be better informed about how their tax dollars are being spent. In these situations, the city should explain delays and cost overruns and their impacts and local media should be reporting on them.

 Staff Report on the Sale of the Old Visitors Center:

 https://www.fredericksburgva.gov/AgendaCenter/ViewFile/Item/15716?fileID=12875


The old Vistors Center was home to the tourism and economic development office. Both the building and parking lot have been sold to a private developer. Future use unknown.

The new Visitors Center. This we believe is now the rear entrance.

Work is still ongoing on the new Visitors Center. When voted on by the council the work was planned to be completed in Dec. 2023.

A view of the new technology and hallway looking towards the front entrance.











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