As the Town of Carrboro begins to plan its budget for the upcoming fiscal year, one of the biggest projects it faces in the 203 Project. The Town Council recently heard an update on what it will cost the town and the impact it will make on what’s currently occupying the land.
The new building planned for 203 South Greensboro Street will be home to the southern branch of the Orange County Library, some town administrative offices and several local non-profits.
While total costs for the building’s construction have risen to more than $25 million, Carrboro Mayor Lydia Lavelle said the council wanted an update to hear the specific methods the town will use to pay for the project.
“We wanted to get kind of a presentation from our budget director on how it would be funded,” Lavelle said to 97.9 The Hill’s Aaron Keck, “and how much it would impact our town debt as a percentage of our budget.”
Because the 203 Project will house the library and the county’s Skills Center, two of the largest functions planned for the space, Orange County will be paying more than the Town of Carrboro for construction. But Lavelle said that doesn’t mean the town isn’t on the hook for a large sum of money.
“Our portion of this is roughly $12 million,” the mayor said. “We plan to use $5 million in cash reserves and to finance $7 million.”
She said Finance Director Arche McAdoo shared with the council how paying off the $7 million in debt bonds will affect how the town budgets on a yearly basis.
“He talked to us about how, based on certain assumptions, that would be spread out in repayment over 20 years,” said Lavelle. “He showed it to us so we could have that understanding, especially as we get ready to head into budget season and especially as we move forward with that project.”
In addition, town council received an update on the search for the replacement of parking in the area. Since the 203 Project will be built on what’s currently a surface level parking lot, the town has identified 14 sites as possible parking areas to renovate and serve as a new parking lot. The goal is to enter a five-year lease arrangement with the owners of the land beginning July 1, 2020.
A previous presentation given to the town council in January estimated the cost for the 203 Project to be around $22 million.
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