Old Courthouse Square project in Santa Rosa now $500,000 over budget

Santa Rosa’s effort to reunify Old Courthouse Square, already behind schedule by at least four months, is now also officially over budget.

The Santa Rosa City Council signed off Tuesday on another $1.3 million for the project, bringing the total cost to date — excluding interest — to $10.5 million, or $500,000 over the original budget.

Despite the increase, council members continued to express strong support for a project that is reshaping and promising to revitalize the downtown core.

“I don’t think any of us are happy to be adding extra money into this project, but it shouldn’t come as a surprise,” Mayor Chris Coursey said.

He noted the project’s original six-month construction schedule was aggressive and the work was taking place in the busiest, oldest part of the city. He said significant progress has been made in recent weeks so the project no longer just looks like “a bunch of dirt” in the heart of downtown.

“It’s taking shape and that’s nice to see,” Coursey said.

Councilman John Sawyer, a former longtime downtown business owner, said he wasn’t troubled by the increased costs given the importance of the project — restoring the city’s central plaza to its former glory.

“It’s a bold project and I’m totally supportive of it,” Sawyer said. “I think it’s a great investment in our downtown (that) will pay off in many, many ways in the future.”

The increased costs are a function of new features not in the original design and the resulting longer timeline, now expected to extend to at least March, said Colleen Ferguson, a deputy director in the Transportation and Public Works Department.

The additional features include a more robust electrical system designed to create additional spots for people and vendors to plug in, a Wi-Fi hub and decorative lights expected to serve as an artistic focal point in the new square’s center.

“We think they’ll meet the community’s need for an outstanding outdoor event center right in the heart of Santa Rosa,” Ferguson said.

The higher costs also were driven by the construction delays, which require additional construction management and inspection expenses, she said.

Some of that delay is attributable to the redesigned electrical system, which required extra time for special light poles to be fabricated.

Some is related to unforeseen issues, including the discovery of an old half-full underground heating oil storage tank removed earlier this month.

The costs of removing and storing panels designed by artist Ruth Asawa long attached to a fountain on the west side of the square, as well as ensuring the project met the requirements of the Americans With Disabilities Act, also contributed to the increases, Ferguson said.

The $1.3 million increase will come out of money set aside for the project in the General Fund but not needed because the city decided to finance about $4.5 million of the cost.

That decision is one of the factors causing the full project cost to actually be higher than $10.5 million.

The city expects to pay about $2 million in interest as part of the financing, though city officials point out that other debt refinanced at the same time will save the city money in the long term.

Other costs not included in the current project include up to $1 million for a new fountain for the Asawa panels to adorn the southern end of the square, an undetermined art installation at the northern end, and benches and trees originally envisioned for the center of the square but which the council held off on until it could better visualize the space.

Costs could also increase if winter rains cause further construction delays, like they did in the abnormally wet October.

But the city doesn’t have much room for error, given it has pledged to have the square open for Earth Day in late April and for the finish of the May 13 Ironman 70.3 Santa Rosa Triathlon.

The construction has caused some disruption to downtown businesses, with three eateries in the immediate area closing since the project began and some merchants bemoaning slower business as people avoid the construction zone.

But there are other signs the promised revitalization may already be underway.

Developer Hugh Futrell has submitted plans to the city to turn the historic Empire Building at 37 Old Courthouse Square and two-story building to the south into a boutique hotel.

You can reach Staff Writer Kevin McCallum at 707-521-5207 or kevin.mccallum@pressdemocrat.com. On Twitter @srcitybeat.