Grand Forks Park Board commissioners didn't green-light a new wellness center Tuesday. But they did settle on a date -- Oct. 21 -- for the wellness center's groundbreaking.
In other words, they're inches away from making a formal decision on what's been an inevitable decision for months.
"We're ready to go," said Jim Bollman, board president. "We just needed a little additional information. Now that we see everything is in place, I think we're all comfortable."
The added information came from a financial summary by Brady, Martz and Associates of Grand Forks, an accounting firm. Despite using conservative numbers for memberships and other revenue, the report showed that fundraising efforts for the $23 million project are shy just $350,000.
"That plan just includes signed pledges," said John Staley, Park District director. "With all the verbal pledges we have, the number almost hits it right on the head."
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The public fundraising phase has been going for about two weeks. "It's going really well and I see it going strong for another two to three weeks," Staley said.
The financing plan, as outlined by accountants, is based on a 25-year, $23 million bond with a projected interest rate of 4 percent. The interest rate will be lower than 4 percent if the project receives stimulus money, as expected.
"And the plan doesn't account for any membership growth nor any rate increases for memberships after four years, which is also very conservative," Staley said.
The accountants' analysis, based on numbers supplied by Park District management, figured that 12 percent of Grand Forks residents would be members the first year, about the same as the current level. After four years, membership was projected to rise to 20 percent, which is still lower than the participation in Fargo, Minot, Bismarck and Dickinson.
The only tax money allotted for the project, to be named the Choice Wellness Center after its corporate sponsor, is one mill -- $140,000 the first year -- annually from the district's capital and betterment fund. It won't mean a tax increase, but rather will use money that would otherwise go for other projects.
The $23 million includes several million going to the Y for physical improvements and memberships for low-income families. The two facilities formed a partnership when some potential donors were worried that the Y would be damaged by a new and bigger replacement for Center Court Fitness.
Board members will meet again Friday to discuss bonding. Because it's not a regularly scheduled meeting, it's uncertain whether they'll vote to make the groundbreaking date official.
However, the caution lights clearly have dimmed.
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Reach Bakken at (701) 780-1125; (800) 477-6572, ext. 125; or send e-mail to rbakken@gfherald.com .
