by Mike Sharkey
Staff Writer
Mayor John Delaney wanted no part of dipping so heavily into a $35 million contingency fund established for the purpose of handling cost overruns associated with three of the Better Jacksonville Plan’s four major vertical projects.
However, once he realized the original price tags for the new arena, county courthouse and baseball park were absolute minimums, Delaney opted to allocate the entire fund in an effort to build the best facilities possible.
The arena, which was originally set for $125 million will now cost $130 million; the courthouse was going to cost $190 million, but will now cost $211 million; and the ball park went from $25 million to $34 million. Only the new downtown library’s cost — $95 million — remained unchanged.
At the ground breaking for the new ball park late last year Delaney announced the original cost of the ball park had been changed. He said he would make good on his promise to build a 10,000-seat park and fulfilling that promise would drastically alter the original cost of the park. In fact, the jump from $25 million to $34 million represents a 36 percent increase.
Sam Mousa,the City’s chief administrative officer, said several other amenities have also been added, which helps explain the added cost, but better product. Delaney’s decision to use the contingency money, according to Mousa, was made several weeks ago.
“About 60 days ago, the mayor decided to take the $35 million contingency fund and divvy it up among three projects,” said Mousa. “The new ball park will get several enhancements, including a better interior and exterior look, glass and chairs. And, we went from 8,500 seats to 10,000 seats because the mayor was committed to 10,000.”
The $21 million difference between the old and new cost of the courthouse may sound like a lot, but it is actually only a nine percent difference, an increase that Mousa says was planned, but not necessarily expected. Mousa said such things as a better product and the costs associated with obtaining the surrounding land have contributed to the $211 million price tag.
“It was no one specific element, really,” said Mousa. “We are supplementing the entire budget for both the aesthetics and quality of the courthouse.”
Although the prices may have changed from what was originally proposed and approved, Mousa said the new costs are virtually set in stone. At this point, the three projects — actually four, counting the library — can only come in pleasantly under budget.
“They can’t go up again because there is no other money to take the ball park from $34 million to, say, $34.9 million,” said Mousa. “Those are caps. Our primary contingency fund included about a 10-15 percent cost overrun. We also had a secondary contingency fund that we have now distributed. We did not expect to do so, but it has been distributed.”
Audrey Moran, Delaney’s chief of staff, said the new costs are indeed caps for expected expenditures, but each project’s cost could still change. Rather than paint themselves into a corner that could require additional funding, Moran said all four projects have an emergency budget.
“Each project has a contingency fund built in,” said Moran. “We were smart enough to know that unexpected items come up. Every one of those budgets have contingencies built into them. But as a government we know that we need to stick to a budget and the people we are working with are expected to adhere to those budgets. If we come in under budget, great. Right now, our goals are right on target.”
Curiously, the only project not to receive any of the $35 million contingency fund is the new downtown library. Moran credits the project managers with keeping the cost at the original $95 million figure.
“The library did not experience some of the site problems the other projects did,” said Moran, referring to the fact the City had a relatively easy time obtaining all the necessary land for the library. “Being able to forecast the cost obviously helped. Our forecasters did a very good job with the library.”
Moran added that Delaney had no hesitations about allocating the entire contingency fund and doesn’t believe that it will be an issue in the future.
“We are 18 months into the Better Jacksonville Plan and we are right about where we expected to be,” said Moran about both the costs and construction schedule.