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Dear Editor:
Thursday evening, the Carmel finance committee learned another major civic project is following the same path as the hotel project – underfunded, overdone and out of control.
Hotel Carmichael, you may recall, was to cost $40 million but ended up costing $58.5 million. The 46 percent overrun has never been fully explained other than to blame building cost increases – $1.6 million of the $18.5 million goof.
Now, the mayor is asking for two bonds to expand police headquarters and provide space for a county courtroom if the county ever needs it.
One bond is for construction. The $32 million borrowed will produce a net of $29 million after expenses. The second is for slush. The $8 million borrowed will produce a net of $7 million or so.
Why two bonds? The first is to be paid from lease rental proceeds and is limited to building costs alone. The second is to be paid from local income tax revenues and will handle “whatever” (slush fund).
Thursday the detailed cost estimates were presented – $34.6 million – or $5.6 million more than bond one. Far less than the 46 percent hotel shortcoming, but it’s a start.
Why not one bond without the “whatever” remains to be decided.
Far from a buttoned-up plan after five years in the making, the police expansion project has all the earmarks of Hotel II.
Bill Shaffer
Carmel