Board coping with financial challenge
By Rae KrugerMARSHALL - While the Marshall-Lyon County Library board agreed Thursday to reduce the total cost of a proposed library to $5 million, that still leaves a $900,000 gap between what's been pledged or committed and what's needed.
"Financing will be one of the primary challenges," city administrator Ben Martig told the library board.
The council is expected to discuss the library project at a meeting Tuesday.
If the city is willing to help cover the $900,000 gap, it would need to specify a source for that money, Marshall Mayor Bob Byrnes said Friday.
Byrnes said the city would have two likely options - it could sell bonds and use the interest from the $2 million in proceeds from the sale of the city-owned hospital to pay off those bonds, or it could use a general referendum that must be approved by voters.
Byrnes said the council would not use the proceeds, or specifically the $2 million principal from the hospital sale, to fund the gap or any part of the library project.
"The interest (of the council) is to protect the principal, " Byrnes said.
Martig said at Thursday's library meeting the hospital proceeds or the interest from the proceeds could be used for the project, but councilwoman Jennie Hulsizer, the city's liaison to the library board, said the council as a whole was not willing to use principal of $2 million in revenue from the sale of the hospital for the project.
"The council was clear that was a sacred cow to a lot of them," Hulsizer said of the $2 million. Hulsizer suggested Martig not include that as an option for financing. She agreed the council may consider using the interest generated from that $2 million for a library project.
Library officials said Thursday a resolution to agree on a $5 million project instead of the original $5.5 million would help the council to make a decision.
The city and the library are facing an Oct. 15 deadline from donor Robert L. Carr, who, along with his wife, Phyllis, has pledged a $2 million donation contribution toward the project. Carr said this month in a letter to board and the council he will withdraw his offer if the city has not made progress in terms of construction specifications and a financing plan by Oct. 15.
But Carr's intent with the $2 million donation does not seem clear yet to city or library officials.
Martig said while he had believed Carr was interested in being the construction manager of the project, Carr just recently told him he wanted his company to be the general contractor in order for the city to receive the $2 million, Martig said.
"I thought that was a good option," Mark Goodenow, a Lyon County commissioner and liaison to the library board, said of allowing Carr to be the construction manager.
Martig said he's working with city attorney Dennis Simpson to learn if it would be legal for Carr to submit a bid in which the $2 million was a factor.
While Martig and Simpson consider that question and work continues on financing, library board members discussed what they could do in preparation for Tuesday's council meeting. Library board president Kathleen Ashe said "this board has to agree with that $5 million figure."
Board members said the $5 million still provides the necessary square footage on one level and allows for a second phase of the project.
Board member Al Kruse said he did worry about not getting what was needed or wanted in a library and instead getting only close to what was needed or wanted.
Goodenow said $5 million works and allows for the second phase, which would include a more public garden space.
Ron Halgerson, the project's architect, said the board must make sure this board and future boards know a second phase is part of the library's strategic plan.
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ruralroute
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07-28-09 1:13 PM
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This library should have been built 3 years ago. Instead, this library board has gotten hung up on petty squabbles and nonsense -- and now the cost is $2 million higher than the original goal. Nice work. I just wonder with the internet's usage growing (particularly in people's homes), with amazon**** and other book-purchasing sites -- what use will a library be? You can read most of the periodicals online, and you can order books online as well. I am all for reading, rangeral, but I just wonder if this facility is worth the financial investment long-term.
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rangeral
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07-26-09 5:30 PM
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Build the library - there is a substantial sum of money already available and the area would benefit from both what the new library will provide to the community as well as the short term construction spending.
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MyView
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07-26-09 7:48 AM
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In Response to InMyOpinion, Ok I agree that it would help with some jobs for works for the short term, but how to we pay for the upkeep and utilities, Heating, Cooling and such? Bigger buildings are going to cost more to heat and cool and maintain Plus the increased cost of taxes and insurance. We seen this happen with the New High School building, did we not. You have to take all the costs involved not just the cost of the building. Now those hard workers that built that building are paying more taxes and levy's along with the rest of us. I cant afford higher taxes and added levy's.
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InMyOpinion
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07-25-09 12:55 PM
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Conversely, isn't now the right time to build a library? Image the number of contractors and subcontractors that will be hired to build the library and the number of workers that will be hired (or won't be laid off) because of this project. I'd imagine the new facility will be larger and require more employees than our current library--a plus for Marshall's employment. Our economy won't improve if businesses, municipalities, and the government cut back. People, businesses, and the government spending money is what will improve our economy. Consider the library as a long-term asset to our community and the idea of not building it during a recession becomes less of a concern.
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MyView
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07-25-09 11:46 AM
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Do we really need a new library right now, with the economy in the tank, wage freezes, and wage cuts, I dont think that a new library should be built right now unless someone comes up and donates all the money needed to build and maintain the new library along with the money needed to staff it.
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