Friends of Recreation to cover share of rec center cost in four payments

Friends of Recreation will pay its one-third share of the cost of a new Seaview Park recreation center in four payments,

over the course of the construction, instead of paying all of its share up front.

Earlier this month, the Town Council approved an agreement with Friends of Recreation that replaces a 2016 agreement in which the fund-raising group pledged to provide its share in advance.

Friends of Recreation and the Mandel Foundation each have pledged to pay one-third of the cost of the center, up to $5 million each. The town will pay the remainder.

The project has been estimated at $11.1 million, but a so -far undisclosed bid from contractor Hedrick Brothers this spring was higher than the estimate and town staff is negotiating to bring the price down before presenting it to the council next month. If approved by the council, Hedrick Brothers’ price will be a “guaranteed maximum price” for the project, shielding the town against cost overruns.

Michael Ainslie, vice chairman of Friends of Recreation, told the council that the group has raised $4.3 million, including $2.5 million in cash and $1.8 million in pledges. If the $11.1 million estimate holds true and the group’s share is $3.7 million, it would have to borrow against the pledges to hand over its full share up front. Ainslie said dividing its share into payments would allow it to avoid paying interest on a loan.

The group looked to the Mandel Foundation’s payment schedule as an example of how it could dispense its funds, Ainslie said.

Under the plan, Friends of Recreation will pay 40 percent of the guaranteed maximum price once the contractors are hired, Ainslie said. Three subsequent payments of 20 percent will be paid once construction is 40 percent, 80 percent and 100 percent complete.

Construction is planned to begin this summer and be finished by the end of 2019. — WILLIAM KELLY