County outlines financing plan for Gloucester Volunteer Fire & Rescue Station 1, recommends $20M not‑to‑exceed ceiling

Deputy county administrator and CFO Maria Callaway told the board that the county and Gloucester Volunteer Fire & Rescue are advancing a two‑step procurement (RFQ to prequalify contractors, then IFB) for the new Station 1 and have discussed borrowing options to fund construction and borrowing costs.

Callaway said stakeholders in a December meeting agreed to pursue 501(c)(3) tax‑exempt bonds with the Economic Development Authority acting as the conduit issuer, a structure that requires a public hearing for a "not to exceed" amount. She explained the difference between an estimate and a ceiling: the project estimate is about $17.389 million; staff recommended an 8% contingency and about $750,000 for issuance costs, producing a recommended public‑hearing ceiling of roughly $20,000,000.

"The not to exceed amount is a ceiling ... it's intended to provide flexibility so that when you are making a decision you have all of the information in front of you," Callaway said.

Callaway said the ownership structure of the building and final loan terms remain under negotiation with county staff and the fire department's construction manager. Financial advisors will present financing scenarios at the Jan. 20 work session. Board members asked how the process would handle high bids; Callaway said bids could be rejected and the project rebid if needed.

No final borrowing or bond issuance was approved at the meeting; Callaway and purchasing staff said additional public‑hearing notices and formal actions will follow.