Hayward is moving closer to replacing its crowded police station, and city leaders are considering an unusual way to pay for it.
At an Oct. 6 work session, the City Council backed staff's recommendation to put a new Public Safety Center on the former California Air National Guard site near West Winton Avenue and Tuskegee Airmen Drive at the Hayward airport, the Hayward Herald reported. The other option was the City Center property. According to the Herald, staff favored the airport site because it is larger, sits near a fire station and would cost less to build on.
An outgrown building
The city staff report says the current station no longer meets the police department's space, staffing or security needs. The Herald reported that the building opened in 1973 and was designed for 110 employees. It now houses about three times that many. Planners estimate the department needs more than 150,000 square feet for dispatch, a crime lab, holding cells and offices. They would also like room for K9 training, an indoor firing range, animal services and a tactical training building.
Depending on the site, construction is estimated at $337 million to $352 million. To bring the cost down, staff suggested putting off animal services, tactical training and K9 facilities to a later phase. According to the Herald, that would trim nearly $100 million.
A mortgage-style approach
Measure K1 money was originally expected to cover the project. Rising costs, and the city's use of that money to balance its budget, have put that plan in doubt. So the council heard from consultants with the Association for the Improvement of American Infrastructure about a public-private partnership. Under that model, one private team designs, builds and maintains the building under a performance-based contract. The city keeps ownership and pays the cost back over roughly 25 to 30 years.
When Councilmember George Syrop asked what a $250 million loan might cost each year, City Manager Jennifer Ott said staff estimated $14 million to $15 million. "What's the catch?" Syrop asked. The consultants said the risk shifted to the private side usually makes up for the higher financing cost, but that each project needs its own analysis. Other council members asked who would be liable for delays and what would happen in a bad budget year. The consultants' answer was usually that it depends on the contract.
For now, the city plans to move ahead with zoning, FAA coordination and environmental studies. It will also gauge market interest before deciding whether to use the partnership model.