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Pella authorizes bids for Annex office building, weighs bond and sales-tax funding

Pella City Council · February 4, 2025
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Summary

Council approved a resolution to prepare plans and solicit bids for the Annex office building at 215 Main Street, reviewed an estimated base cost of about $1.48 million and discussed funding options including leftover local-option sales-tax proceeds and a potential $934,000 general obligation bond.

The Pella City Council approved Resolution 6800 authorizing preparation of plans and specifications and solicitation of construction bids for the Annex office building project at 215 Main Street.

Staff described the base bid for the project as approximately $1.483 million with alternate bids of roughly $162,000 for additional work. Funding sources noted included remaining local-option sales-and-services tax proceeds and a potential general-obligation bond of $934,000 to cover the project; staff said issuing that bond could increase the city's debt-service levy by up to about 12 cents unless alternative cash funding was identified.

Councilors were told the annex would house the Planning and Zoning Department and provide centralized record storage and office space; staff also said the Maran County driver's license office could be moved into the facility. Staff estimated a construction timeline of roughly 210 working days for the project.

The council approved the resolution to proceed with bidding. Staff said the council will review bid results and consider award at a future meeting; the funding method (use of cash on hand versus bonding) will be determined as staff brings budget and financing options to council during upcoming budget work sessions.