In early 2016, Mayor Ashton Hayward borrowed money to begin construction of a new Bayview Community Center and Fire Station #3. The city has been paying interest on the loan for two years. According to the council’s budget analyst, Butch Hansen, the interest costs for the Local Option Sales Tax loan for the center are budgeted at a total cost of $1,489,246 over 10 years.
If Mayor Hayward is able to convince the city council to approve his $9.59 million budget for the center and boathouse, Hansen told Councilwoman Sherri Myer, “…the total price for the project will be well over $11M with a relatively small contingency of 3% included.”
Here is the email exchange:
From: Butch Hansen <bhansen@cityofpensacola.com>
Date: May 14, 2018, at 1:04 PM CDT
To: Sherri Myers <smyers@cityofpensacola.com>
Subject: RE: Bayview Resource Center
Interest costs for the LOST loan for the center are budgeted at a total cost of $1,489,246 over 10 years. (@ $7.5M with 10% contingency)
Respectfully, Butch
From: Sherri Myers
Sent: Monday, May 14, 2018 5:32 PM
To: Butch Hansen <bhansen@cityofpensacola.com>
Subject: Re: Bayview Resource Center
So the interest is included in the 8.5 million?
From: Butch Hansen <bhansen@cityofpensacola.com>
Date: May 15, 2018 at 9:52:36 AM CDT
To: Sherri Myers <smyers@cityofpensacola.com>
Subject: RE: Bayview Resource Center
No, that is a separate line item in the LOST IV budget, so would be additive to the $8.25M principal on the loan, or $9.379M total, without the current price increase proposed. With the current proposed price of $9.59M, the total price would be well over $11M with a relatively small contingency of 3% included. Respectfully, butch
Note: There is no longer any mystery as to why Mayor Hayward so vigorously fought the council hiring a budget analyst.