Sea Bright could lose more than $7 million in federal funding if it doesn't come up with a construction plan for a new municipal building and community center
SEA BRIGHT -- Borough residents agree they need new municipal buildings to replace the ones destroyed by Hurricane Sandy, but anger at the cost of the project could jeopardize millions in federal funding that would help pay for the work.
In June, the governing body of this borough still recovering from Sandy approved the issuance of more than $13 million in bonds to pay for a new municipal building and a community center. But a groundswell of opposition to the projects' price tags forced a Sept. 27 referendum for residents to approve or reject the spending.
With the offer of $7.4 million from the Federal Emergency Management Agency set to expire a month later, supporters say the project has to be green-lighted or the town will lose a major funding source and with it, the opportunity to build permanent homes for essential services.
"If we lose that money, we're doomed," Reed Murphy, a former borough councilman, said Tuesday night at the first of three public information sessions on the proposed ordinances. "It'll all come out of your pockets. I agree there are cheaper ways of doing it but we cannot - cannot - turn down this money."
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For $7.8 million, a new 15,000-square-foot municipal building, to be constructed downtown where the former fire house and police departments stood before Sandy, would house government offices, police, fire and first aid.
For $5.3 million, a community center with a beach pavilion would be built at the east end of the main parking lot in line with the River Street entrance. At 10,000 square feet, it would contain the municipal library, beach management offices, changing rooms, restrooms and a second-floor room that could be rented out for events.
With the total cost offset by the FEMA funding and insurance settlements, Sea Bright's 1,400 residents would still be responsible for paying another $5.7 million through taxes. That would equate to an increase in property taxes of about $90 a year for a home valued at $500,000, said acting borough administrator Joseph Verruni.
Council president Jack Keeler and Councilman John Lamia, who voted against the bond ordinances, said they believe the projects' costs can be cut. Keeler said he's concerned that unforeseen circumstances, such as another recession, could make it difficult for the bonds to be repaid.
Lamia said he wanted the borough to have a backup plan for a scaled-down project.
"I voted no because I believe we could build these buildings for less," he said. "My concern is, if we put a lot of money out there, we'll spend a lot of money."
If the borough doesn't commit to using the FEMA money by Oct. 30, it can apply for an extension but that may be difficult to secure given the great competition across the country for the money, particularly after last week's flooding in Louisiana, he said.
Resident Courtney Davis said the town doesn't have the luxury of waiting for new construction plans if the bond ordinances are voted down and FEMA withdraws its funding after Oct. 30
"We need to move forward before we're under water again," she said.
Resident Erwin Bieber said the town required the architects to design buildings to fit a specific budget rather than let the plans dictate the cost.
"We are completely out of balance with this," Bieber said.
MaryAnn Spoto may be reached at mspoto@njadvancemedia.com. Follow her on Twitter @MaryAnnSpoto. Find NJ.com on Facebook.