AMHERST — Town officials are preparing to approve a nearly $10 million increase in the borrowing cap for the Jones Library project, a requirement of receiving the project’s grant funding from the Massachusetts Board of Library Commissioners.
But committing Amherst to appropriating $46.14 million for the expansion and renovation of the Amity Street building is raising worries from some in town that taxpayers will be on the hook for elevated project costs.
With fears about covering both interest payments associated with the project and a potential gap in the $16.5 million fundraising goal, the Town Council on Monday heard from several residents calling for a delay on raising the borrowing cap by $9.9 million from the $36.3 million approved by councilors April 5, 2021.
A decision could come as early as the council’s Nov. 20 meeting, with the Finance Committee reviewing the matter this week for a possible recommendation.
Town Manager Paul Bockelman sent a memo requesting the Town Council amend its decision from two years ago to reflect the current project budget. He said that decision would not affect the $15.8 million Amherst taxpayers will pay.
“$15.8 million is coming from the town,” Bockelman said. “That has not changed.”
Bockelman noted the project has received support from Town Meeting, the Town Council and at a town election.
“We’ve invested a lot of time and energy into getting this project to this point in time, it’s an investment in our community, and in our future,” Bockelman said.
Bockelman added that the town is additionally protected through a memorandum of understanding with the elected trustees for the Jones Library that any shortfall is to be covered by the library. In addition to ongoing fiscal discipline keeping costs down, the Massachusetts Board of Library Commissioners increased its grant from $13.87 million to $15.67 million due to inflation.
Council President Lynn Griesemer, too, said the library building committee is doing its due diligence and finding ways to cut costs on the project.
“The town’s contribution to the library is $15.8 million, and the assumption is it will remain that,” Griesemer said.
Pointing to figures showing that doing just repairs to the 1928 building and the 1993 addition would cost between $19.4 and $21.7 million, while not addressing the town or state’s climate goals, meeting community program needs or abating asbestos, At Large Councilor Mandi Jo Hanneke said spending $15.8 million on the project is in the range of $4 million to $6 million less than the cost of repairs only.
Still, District 1 Councilor Cathy Schoen said she needs more information about potential costs, including how the fundraising is doing and when interest payments would have to be made. So far, the library’s capital campaign has brought in $9.1 million, leaving a $7.4 million gap.
Toni Cunningham of Owen Drive said the Town Council shouldn’t authorize a higher borrowing number until the full $7.4 million shortfall in fundraising is met. Cunningham said she suspects that town will be paying interest on bond anticipation notes and these expenses could derail the town’s plans for a new Department of Public Works headquarters and fire station, which are next in line following a previously approved elementary school.
“Right now, I can’t see how this is not extremely risky and jeopardizing the timeline for all of the other capital projects and our other capital needs,” Cunningham said.
Maria Kopicki of Country Corners Road said that the shortfall in fundraising is likely to be even larger when bids are sought for construction. “The numbers we are seeing here are wishful thinking,” Kopicki said.
“I find it very disingenuous for you to to say we’re only paying $15.8 million when we’re paying interest payments,” said Jeff Lee of South East Street. “It could be even an additional $2 million.”
Kent W. Faerber, who co-chairs the Jones Library Capital Campaign, said that even though the $6.6 million gap has risen to $7.4 million since fundraising began, he is encouraged by results that are “brisk, prospering and doing well.”
Trustees President Austin Sarat, too, expressed confidence. “We’re not going to stop the fundraising. It’s not going to be a $7 million gap, it will be a gap that will be somewhat less, and we hope much less,” Sarat said.
Bob Pam, the treasurer for the library trustees, said $7.4 million is needed and can be achieved.
“The current commitments, plus new contributions over next three years, will supply much of this,” Pam said. “If the difference is small, the library can self-fund by withdrawing it from the endowment.”
Pam said other strategies, aside from tapping the endowment that is used annually to support library operations, could include direct withdrawal or borrowing, such as a line of credit or other similar flexible loan, a commercial loan or mortgage backed by assets of the library, or a tax-exempt bond purchased by a financial institution.
But Pam said if the gap is too large, that would be problematic. “I’m not sure a gap of $5 million or more could be overcome,” Pam said.
