Cottage Grove's new central fire station is estimated to cost just under $9 million. Designs reveal a two-story fire station on 80th Street that will cost an estimated $8,925,000. An earlier capital improvement projects budget included a $6 million earmark for the fire station.
The initial estimate was based on a smaller building than what is now designed, causing the $3 million increase.
"That number has been floating around in our CIP documents for the last three to four years.
The reason it changed was when we revised the space needs study in 2015, they identified a different size of building."
The City Council voted 5-0 to approve the schematic design at an Aug. 24 special meeting.
The increased cost would be covered by deferring other capital projects, such as some pavement improvements, to 2018, and refinancing capital project debt.
"We anticipate wrapping a combination of internal debt for city hall and the station into a bond and take the existing debt," Roland said. "The intent is not to have any impact on taxes."
"We should be able to pay back this building and that building combined," Mayor Myron Bailey added.
Bailey said the city has been receiving good interest rates the past few years, and is confident this refinancing rate will be no different. The rate is currently below 2 percent.