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Walnut Hill replacement: design team selected, $55 million estimate leaves $13.5 million funding gap
Summary
School officials told the joint Petersburg City Council–school board meeting that Walnut Hill Elementary's replacement is estimated at $55 million, about 75% of that is currently secured through loan and state grants, and expanding onto adjacent parcels would add an estimated $15 million and delay the project by several years. Staff urged a near-term joint funding decision and site identification.
Dr. Jay Martinez, assistant superintendent for operations, told the Petersburg City Council and Petersburg City Public Schools board that Walnut Hill Elementary's replacement is in the design phase and carries an estimated $55,000,000 construction cost. He said the board has selected a design–build team (Gilbane) and Moody Nolan as the design firm and has secured roughly three‑quarters of the project financing through a mix of loan financing and a state school‑construction grant, leaving about $13,500,000 to close the budget gap.
Why it matters: the project is large enough that site choice, funding and schedule tradeoffs are consequential. Dr. Martinez emphasized timing and permitting risks if the district expands onto adjacent parcels. He said moving forward onto an adjacent parcel would add roughly $15,000,000 in direct costs and could push a planned opening from the late‑2020s into the early‑2030s because of eminent‑domain, wetlands permitting and wildlife protections.
Details and tradeoffs: Martinez said the district is assessing options to avoid long delays while protecting students and building on a fiscally responsible schedule. He described two paths: - Build on the existing Walnut Hill site using modern temporary “swing” space for students during construction; Martinez said the district models these units on a higher‑end modular campus rather than older trailers and estimated modular operating costs around $1.25 million a year. “We're abandoning the outdated trailer model. These are highly insulated, climate‑controlled modular campuses with full high‑speed internet integration,” he said. - Acquire and build on adjacent property, which Martinez said would add about $15 million and a multi‑year permitting delay tied to wetlands and wildlife windows.
Council response and next steps: Council members asked staff to identify city‑owned parcels that might serve as an alternate build site or swing space. The city manager’s office and district operations agreed to convene a joint staff meeting to map city and school properties and return with options. Martinez said the design team will pause certain site‑specific drawings while staff completes the review and talks with the state to protect time‑sensitive grant commitments.
Funding options discussed: Council and staff discussed several ways to close the remaining funding gap. City staff explained a new state authorization that allows Virginia localities to place a 1% local option sales tax dedicated to school capital projects on the ballot; staff estimated such a tax could raise about $5 million annually if voters approve it. Several council members said they would prefer to first maximize existing city revenues and grants rather than immediately ask voters to raise taxes.
What comes next: staff will (1) identify and report back on city‑owned parcels and school board properties that could serve as swing space or alternate build sites, (2) update the design team and state partners to protect existing grants, and (3) return with a refined financing plan that identifies how the $13.5 million shortfall will be filled. The board approved continuing design work while staff explores site and funding options.
