BEVERLY, MA — The ballooning costs of the proposed Beverly Public Library renovation — which went from an HVAC replacement discussion to a full-fledged renovation that includes a new roof and accessibility improvements — was the subject of more sharp debate during a City Council hearing centered around the ability to afford the renovation amid other major impending projects including a City Hall renovation, temporary City Hall home during the renovation and the renovation of the McPherson Youth Center.
What began as a proposed $3.7 million geothermal heat replacement for a failing HVAC system jumped to $18 million in escalating costs with Mayor Mike Cahill saying on Monday night that Beverly residents could be on the hook for $8 million after federal tax breaks, incentives, rebates, grants and $700,000 in recently estimated cost reductions.
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“The project is not what was talked about almost two years ago when we looked at the feasibility analysis of the various ways of replacing the HVAC system,” Cahill told the Council. “It’s clear that there are some very significant challenges that the building has and so the scope is very different.”
Councilors challenged how much of the expected tax breaks and rebates — estimated to make up about $4.3 million of the reimbursed costs — were expected or guaranteed, and whether the geothermal replacement is still the best option for the city over an in-kind natural gas replacement given the increase in project costs.
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There were also questions about the process the administration used to arrive at the final decisions on a construction path and how the project fits in with other major capital projects the city is facing in the next few years.
“Myself and the public were blindsided by going such a lot period of time going and a change in the project going from what it was at the beginning to what is presently suggested,” City Councilor Scott Houseman said in seeking more Council oversight and transparency on project costs citywide. “This Council went all that period of time without getting any type of input from the administration. I guess I would use the word blindsided.”
Cahill said that while the initial cost of the geothermal system may be higher, some of the incentives expected are based on it being a green energy replacement and that geothermal still fits with the city’s climate resiliency goals as the state has set a target of being carbon neutral by 2050.
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Budget Analyst Gerry Perry told the Council that while he was not in favor of the project — or at least the way the administration wanted to pay for it originally — he can now “see a pathway” where it can be done in conjunction with other capital priorities while keeping within city debt guidelines of $30 million to $31 million.
“It started as a $3.7 million project and it’s now up to $18 million,” Perry said. “I discovered this right about Labor Day. Like the rest of you, I fell off my chair. It is an expensive project. … For a long period of time, I was opposed to this for strictly financial reasons.
“I am not looking at it as just the library. I’m looking at the library, I’m looking at City Hall, I’m looking at the McPherson Center, and the Dollar Store. So there are four big projects that we have to be careful about. And from my perspective, this has to work with all four projects or otherwise, I couldn’t get there.
“I do raise tonight to tell you that I can see a pathway financially if you want to do it.”
The public hearing was extended until April 8 when Chair Julie Flowers said it would be the only topic of discussion for the night in order to give the public and Council more time to ask questions without interfering with other agenda items and hearings.
(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at [email protected]. Twitter: @Scott_Souza.)
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