Under new estimates, the proposed City Park building is expected to cost over $19 million. That exceeds the $15 million the Park City Council has already set aside for the project.
Contractor Okland Construction has attributed the price increase to “ongoing market instability and volatility,” according to a staff report.
The report notes that subcontractors are “concerned about bidding due to fluctuations in labor and material markets.”
At its meeting Thursday June 5, Park City Manager Matt Dias said the city council could consider using additional funds from a 2019 sales tax revenue bond that is tied directly to an additional tax increment on properties in the lower Park Avenue area.
The staff report states the bond currently has over $21 million in proceeds and is proposed to completely fund the new City Park building.
The new 15,000 square-foot community center would replace the existing 5,000 square-foot building next to the basketball and sand volleyball courts that went up in 1987.
Dias said the extra money was previously set aside for a Park Avenue reconstruction project.
“The level and depth and scope of that project has gone down considerably, which hopefully frees up resources for us to take that and move into the community center, which we’re really excited about,” Dias said. “And we don’t want to lose a construction season.”
Alternatively, the council could also choose to reduce the project’s scope or discontinue it altogether.
Park City Recreation Director Ken Fisher previously said construction could begin in fall 2025 and last about one year.
Thursday’s Park City Council meeting is scheduled to begin at 3:55 p.m. following a closed session. The agenda and a link to attend virtually can be found here.
Park City Municipal is a financial supporter of KPCW.
