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Council questions $2.7M CIP allocation for renovating Verizon building to house health department
Summary
Council members asked for more detail on a proposed $2.7 million FY2026 allocation to renovate the recently purchased Verizon building and questioned whether to bond the project in 2026 or defer until more detailed design and bid information is available.
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The Wicomico County Council on Feb. 18 examined capital-improvement proposals related to the county's purchased Verizon building and a proposed FY2026 allocation of approximately $2.7 million for renovation and fit-out to house the health department.
Finance staff said the $2.7 million figure is an estimate for initial build-out work that could include elevator renovation or replacement and other interior renovations necessary to relocate the health department from its current Hurdle Building location. Staff said the county is receiving lease payments from the current tenant that will flow into the general fund and were part of the fiscal calculations that made the purchase feasible; staff added that the county does not intend to terminate the existing lease early and that lease revenues were expected through the remainder of the current fiscal year.
Councilmembers repeatedly requested a clearer line-item estimate for the $2.7 million: how much is elevator work, how much is mechanical overhaul, how much for finishes, furniture and ADA compliance, and how much of the work would be required before occupancy versus later. Several members suggested deferring a large bonded appropriation into FY2027 until the county has concrete design and bid numbers. One member asked for a smaller FY2026 PAYGO placeholder to cover immediate needs if the council does not wish to bond the entire $2.7 million in the coming fiscal-year bond issuance.
Staff explained that formal bids and contracted design services are required before the county can obtain firm costs; outreach to design and construction firms is constrained by procurement rules (the county cannot solicit firm-level cost estimates from potential bidders without prejudicing the formal procurement). Staff agreed to provide a clearer breakdown of the estimate and to bring options for either PAYGO funding of a smaller preliminary sum or deferring full bonding until FY2027 when detailed bids would be available.
Council members also asked about the future disposition of the Hurdle Building, which the county intends to sell after relocation, and whether an appraisal has been completed. Staff said no appraisal had been completed and that the building has known basement water issues that could affect its resale value.
The council did not take a bonding vote during the session and directed staff to return with more detailed estimates and options for the FY2026 budget process.

