City Hall Complex

Proposed City Hall Rendering

Summary

The City of Rehoboth Beach is currently constructing a new City Hall to better serve the community now and well into the future. This project will help consolidate the majority of the city administrative services in one facility while also providing new facilities for our Parking Department and Communications Department on the same site. In addition, the Convention Center shall receive several updates and a facelift to provide more visibility to the general public and increased traffic from walking and vehicle-based visitors.

Project Timeline

The referendum set a maximum of $18 million for borrowing funds to construct a new City Hall Complex. The new City Hall Complex includes the Parking Department and Communications Department building and City Hall. The new City Hall will house administrative offices, Alderman's Court, the Building and Licensing Department, Commissioners Room, IT Department, Police Department and the 911 Dispatch Center.

Voters approved the loan from the USDA with an expected interest rate of 3.5% for a 25-year term. The payment on the $18 million loan was $1,092,150 annually for 25 years. Increased costs are not a new development. In January 2016, with only two bids received for construction, the low bid from Whiting-Turner was already approximately $1.5-$2 million over budget. At that time, Commissioners voted unanimously to move forward with the understanding that total costs associated with the City Hall Complex would exceed the original estimates and need to be accounted for in the next several budget cycles. As with any construction project, change orders have also added to the cost, with approximately $1 million approved change orders to date. The largest cost item is due to the extra stormwater expense mandated by the state totaling approximately $300,000. In all, the cost of the new City Hall Complex is now projected to be $20.5 million, including expenses incurred in prior years for designing and planning and those outside the scope of the original plan.

Savings

These costs are offset by a significant savings on the loan financing. In December 2016 the city was able to obtain a loan from USDA at 2.375%, lowering annual payments by about $123,000 and saving $3 million over the life of the loan. The items outside the scope of the project and approved by Commissioners have been allocated for in the 2017 capital outlay budget. The items include furniture and fixtures, audio visual equipment, landscaping with irrigation and other necessary items.   

The new Parking Department and Communications Department building was completed and opened on schedule in May 2016. Employees are expected to move into City Hall offices in fall 2017. Completion of the City Hall Complex, including the new parking lot on the east side and a pedestrian walk-thru from Second Street, is scheduled to be complete by the end of 2017. The Convention Center is anticipated to reopen in early 2018.

Project Update

Project Schedule

Change Orders

Funding

 

Existing City Hall Deficiencies

Based on analysis done by several engineers, the building and infrastructure no longer meet current accessibility guidelines and building codes.

In addition:

  • The majority of the existing equipment is at or nearing the end of its useful life expectancy.
  • No sprinklers systems in the Police Department or City Hall offices.
  • The majority of the piping for the heating and hot water systems are approximately 50 years old.
  • Numerous masonry defects in brick walks and retaining walls.
  • Moisture penetration in basement areas.
  • No handicap accessibility.

*please see the report MEP Systems Evaluation from Allen & Shariff and presentation slides from Davis Bowen & Friedel, Inc. for details.

Frequently Asked Questions

FAQ's regarding the City Complex Master Plan

Resources

 

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