Greensboro staff tell council $8M more needed to remediate Patton Avenue site before garage construction

Greensboro City staff told the council in a morning briefing that an additional $8,000,000 in financing is needed to complete soil remediation at the 404 Patton Avenue site before construction of a new centralized equipment services facility can proceed.

The briefing, led by Deputy Finance Director Chris Payne and Finance Director Marlene Druga, reviewed the project’s history and finances. Druga said the city issued $30,000,000 in bonds in August 2024 to build the new garage but the original borrowing does not cover newly identified remediation costs. “That item is about 8,000,000, and it’s on an agenda tonight to do additional financing of 8,000,000 just for the remediation work,” Druga said.

Why it matters: staff said the new facility would consolidate parts and services, expand capacity and reduce repetitive outsourcing. Payne described the operational model: departments are charged a lease rate that covers maintenance, repair and replacement; the new building would increase the number of service bays from 35 to 44 and centralize parts inventory to reduce downtime and costs. “The current facility has 35 surface bays. New facility will have 44,” Payne said.

Project background and schedule: Staff said predesign work began in 2022, the city contracted Samet as construction manager at risk in June 2024, and early site work began after the August bond sale. Construction activities halted in November 2024 while the city completed environmental assessments and coordinated with the state. Druga summarized the expected timeline if remediation begins in 2026: remediation through late summer, construction starting in the fall, and facility completion in early 2028.

Debt and compliance risks: Druga warned of two constraints tied to the existing bonds. First, bond documents specify proceeds must be used to construct the garage; diverting funds could create a covenant default. Second, because the bonds were issued on a tax-exempt basis, the Internal Revenue Service typically expects projects to be completed within a roughly three-year window. “If it goes too long without actually having a facility in place, the IRS may not be favorable to us,” Druga said, noting potential implications for the city’s credit ratings.

Council questions focused on how the city will absorb the additional debt and how the new facility will affect operations. Druga said current planning assumes the city can absorb the added financing under the existing tax rate but the city will present details as part of the evening agenda. Council members asked for an analysis comparing current costs (including premiums paid to outside vendors) with projected operating costs once positions are filled and the facility is online.

Staffing and service-level concerns: Payne and others told council the city has struggled to recruit and retain specialized heavy-duty technicians, leaving multiple vacancies that have required outsourcing and delayed service. Payne said vacancies have been persistent and that some work is being outsourced because the city cannot fill technician roles quickly. He said the positions are budgeted but difficult to recruit for and that recent scheduling changes (four 10-hour weekday shifts) have improved applicant interest.

Pay and job scope: Council members pressed whether pay or workload is the larger retention issue. Payne said salaries are not necessarily far off from peer cities, but the municipal work—welding on garbage trucks, upfitting police vehicles and other specialized tasks—differs from many private-sector roles and typically requires on-the-job training. He offered to provide specific control-point salary information and asked for time to assemble a budget-year comparison of current outsourcing costs versus projected in-house costs.

What’s next: Staff said the remediation financing request will appear on tonight’s agenda; no vote was taken during the briefing. Council members asked staff to return with an operational-cost analysis for budget planning and to provide the specific salary control points for technician grades.

The briefing concluded with staff reiterating the project’s intended benefits—expanded capacity, consolidated parts and potential monthly savings from reduced rented space—and a request that council consider the remediation financing item at the scheduled meeting later that day.