Commissioners asked for an update on Fire Station 15 funding during the July 21 budget work session as staff outlined where the project stands in the capital plan and the status of a FEMA disaster grant.

Key points up front

Staff said the project estimate used in earlier planning documents was about $9.6 million and that the commission previously approved seeking a maximum loan not to exceed $5.2 million, with about $4.4 million from ARPA applied to the project. Staff also told commissioners a FEMA grant originally associated with Hurricane Dorian — described in session as roughly $2.2 million — remains under FEMA review and that outstanding questions about demolition of an existing structure are holding up final FEMA approval.

Why commissioners are focused on timing and price

Commissioners expressed concern that construction costs and interest rates could rise if the project is delayed. They noted a loan amount above $6 million would require a public referendum under the city’s legal framework; staff described the previously proposed $5.2 million loan as a maximum “not to exceed” figure and said the actual financed amount would depend on FEMA award outcomes and other offsets. Staff also said that if FEMA provides the expected grant, the city’s financed amount would be reduced proportionally.

FEMA grant status and demolition questions

Staff reported they are awaiting clarifying comments from FEMA. Among issues cited were questions tied to demolition of existing city-owned building elements that overlap the new station footprint; staff said asbestos and lead testing and abatement planning are part of the pre-construction cost and will need to be addressed if demolition proceeds. The city has been coordinating with consultants and with a longtime contact who has experience working on FEMA projects, but staff said FEMA’s current staffing and review cadence have slowed the process.

Other site and use questions

Commissioners and staff discussed the adjacent city-owned office building (the former 51 Building). Staff said one tenant — Central Florida Therapy Solutions — remains in part of that building under an existing lease; commissioners asked whether the remainder of that building could be vacated, leased to tenants, or repurposed to generate revenue or house city staff to reduce facility costs. Staff said they would check the lease status and explore options.

Next steps and staff direction

Staff committed to providing an updated FEMA status, clarified demolition requirements, and the latest on the office building’s occupancy. Commissioners and staff agreed to continue moving the capital planning process forward and to provide a revised five-year CIP that reflects commission priorities, grant outcomes and any financing decisions.

Ending note

No formal financing decision was made at the session. Staff said they will return with updated FEMA information, demolition cost and abatement estimates, and options for the adjacent office building.