Staff outlines two sites for maintenance facility; council asks for formal recommendation

Public Works staff presented preliminary analysis for a new streets and maintenance facility. The Steele Avenue site is about 13 acres; staff estimated redevelopment costs at roughly $36.5 million to meet fleet needs for the next decade. Staff noted existing campus assets with residual value: a 2015 utility maintenance structure (replacement-cost estimate now about $11 million), usable shop building constructed in 1981, about $2 million in surrounding paving and $600,000 in fencing value.

Staff also evaluated a 25-acre parcel at Black Hills Industrial Park. Building a new consolidated facility there was estimated at $65 million to over $75 million, primarily because of larger grading, paving and site-prep costs. The Black Hills Industrial Park site would offer more land for future expansion and could free the Steele Avenue site for private redevelopment potentially tied to the School of Mines, staff said.

Finance staff discussed funding options: both projects would likely require bonding. A 25-year bond for the Steele Avenue scenario was estimated to create annual debt service of roughly $2.3 million, leaving vision-fund balances for other projects; the larger Black Hills Industrial Park option would increase annual debt service to an estimated $4.6 million and materially reduce available vision-fund resources. Staff noted some potential water-fund resources could be available but did not quantify amounts at the meeting.

Council members sought clearer direction and recommended staff return with a formal recommendation. Councilman Evans said he favors a long-range site that will be durable for decades; several members asked staff to scale options and present recommended alternatives, cost ranges and financing scenarios. Staff said they would proceed with more detailed work and suggested bringing a proposal in a couple of weeks for council consideration and community input.