Progress continues on Falls Township’s major renovation project at its municipal campus. On August 28th, the Supervisors voted unanimously to award the mechanical construction contract to Allstates Mechanical, Ltd. in the amount of $4,227,215; and the electrical construction contract to QPI Electrical in the amount of $4,490,000, which includes the fire alarm alternate of $209,000.
Construction is expected to begin in late September and continue for approximately two years. Township administration offices and the police department relocated to a temporary space at 430-450 Lincoln Highway in July.
The Supervisors, planning commission and zoning hearing board have been holding meetings at the Middletown municipal building since June. Both the temporary relocation and meeting space will remain in place until the municipal building construction is complete.
At its July meeting, the board voted unanimously to award the general construction contract to Rycon Construction in the amount of $19,230,000; and award the plumbing construction contract to Myco Mechanical, Inc., in the amount of $2,343,000.
Given the magnitude of the building improvement project, the board and its professionals are striving to ensure the contractors hired meet the criteria of the township’s ordinance and will be in the best position possible to deliver the services as contracted.
The board is prepared with the finances needed to fund the project. At its meeting in May, the Supervisors authorized issuance of $20,055,000 in bonds to cover the municipal building construction costs.
Because Falls received a “very strong rating” of Aa2 from Moody’s Investors Service, the township realized a savings of municipal bond insurance and was able to secure a 3.31% interest rate from Bancroft Capital, LLC of Fort Washington, according to Christopher Gibbons, Concord Public Financial Advisors, Inc. founder and principal.
The bond was expected to be $22 million, but the high rating helped cut costs. Since the funds would not be needed immediately, Gibbons suggested investing money in the meantime.
The investment would generate $630,000 which could be earmarked for the municipal building project. Falls will contribute $15 million from its general fund toward the project.
Gibbons estimates annual debt service at approximately $2.5 million over a 10-year term. The bond would be repaid by December 2033, he said.