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Council greenlights Park Hill engineering contract for Heritage Park; opens reimbursement option from tax note
Summary
The council authorized up to $1.67 million for Park Hill to engineer Heritage Park expansion and downtown design work, and adopted a separate resolution expressing intent to reimburse up to $1.111 million from the general fund if a future tax note is issued.
Midlothian City Council approved a professional services agreement with Park Hill not to exceed $1,670,000 to prepare engineering and design documents for the Heritage Park expansion, Back Alley Plaza and related downtown improvements.
Council and staff discussed the funding plan at length. Staff proposed advancing roughly $1.1 million from the general fund to begin engineering and then using a reimbursement resolution so the general fund can be repaid if council later issues a tax note (staff described the option to reimburse from a tax note proposed for August). Council asked whether the added engineering sum would be included in or in addition to a previously discussed $6 million strategic tax note; staff said the $1.1 million would be in addition if council proceeds with reimbursement.
Council approved the Park Hill agreement 6-0. The council then adopted a separate resolution (4-2) expressing the city
intent to reimburse up to $1,111,489 from the unreserved general fund balance if a future debt issuance is pursued. Staff emphasized that the reimbursement resolution preserves the option to reimburse but does not obligate the city to issue debt; if council later decides not to reimburse, the general fund would have borne the engineering cost.
Why it matters: The engineering package is intended to produce detailed, near-final construction cost estimates and coordinated designs for multiple downtown parcels and Heritage Park so the city can more accurately price the project and seek construction funding. Several council members said the engineering step is meant to avoid surprises and give council accurate cost estimates before construction.
Clarifying details: Staff estimated an engineering timeline of roughly 5 to 6 months. The reimbursement resolution does not itself issue debt; it creates the option to reimburse the general fund from proceeds of a future tax note. If council does not later reimburse, the general fund will have paid the engineering costs.
Next steps: Staff will execute the Park Hill PSA, begin engineering work and return with refined cost estimates and a proposed tax-note financing plan should council choose to reimburse the general fund.
