Cost estimates rise for Conshohocken Verizon building renovation

The cost to renovate the former Verizon building into a police station and Conshohocken Borough offices has risen by $1,520,329 from the original construction proposal to $13,145,000 a 13 percent increase.

Borough council members met with officials from Keystone Property Group of Lower Merion Feb. 6 to discuss project financing while the borough and KPG waits for a $4.31 million state Redevelopment Assistance Capital Program grant to subsidize part of the project, said Borough Manager Francis Marabella.

A requirement that workers on the public construction project must be paid prevailing wage rates and additional costs to get state accreditation for the police station boosted the project costs, Marabella said. The area for secured, police vehicle parking and the sally port for transferring police suspects from the vehicles was enlarged to meet accreditation requirements.

Borough officials planned to submit the business plan for the RCAP grant Feb. 10 to the state Office of the Budget.

It is uncertain when the RCAP money will be released by the state, Marabella said.

Council members discussed whether to borrow $10 million to finance the early renovation costs with a bank loan or a 30-year bond issue. A financial adviser, Concord Public Finance of Lancaster, Lancaster County, was hired Feb. 6 for a $22,500 fee to prepare financial information for the loan and negotiate with bank institutions.

Council also hired the law firm Fox Rothschild to determine whether the proposed $10 million loan will be tax exempt for IRS purposes. The Whitpain firm will charge $350 per hour.

The expenses for both advisers will be paid out of the financing package, Marabella said.

Decisions on the faade of the building and the total space requirements for the police station and the borough offices have to be firmed up before site plans are submitted to the planning commission, Marabella said.

Council will hold another special meeting, open to the public, at 7:30 p.m. Feb. 17 to continue working on the Verizon building renovation project. Continued...

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Cost estimates rise for Conshohocken Verizon building renovation