SUNBURY — Construction could soon begin on the first phase of the city’s long-awaited riverfront development project that will cost almost $1 million less than projected, according to the bid award.
Six companies vied for the first phase of the project — which is planned on Front Street between Race and Bainbridge streets — including firms from Lewisburg, Port Trevorton, State College and Harrisburg.
The lowest bid came in at $1.96 million from G&R; Charles Excavating, of Port Trevorton, for work to include excavation, infrastructure installation such as water lines and electricity for intersection and street lighting, and street trees.
That offer came in well below engineer Buchart Horn’s estimate of $2.8 million, the bid tabulation sheet shows.
Awarding of the bid is pending further review by Buchart Horn.
According to Scott Russell, of Buchart Horn, engineers were cautiously hopeful bids would come in below their estimate, which he said could have been influenced by the economic climate.
“If contractors are not busy they may be more aggressive in trying to win projects in a competitive pricing situation,” Russell said. The economic climate, he added, may have had “an indirect impact.”
Major amenities of the project are not expected to change because of the low bids, Russell said.
Mayor Jesse C. Woodring said City Council is considering adding to a $1 million line of credit secured under the administration of former Mayor David Persing that has remained inactive since 2005.
Woodring said the line of credit would be used by the city to pay up-front costs for the riverfront development project, with those costs then reimbursed through a $2.8 million grant from the Redevelopment Assistance Capital Program, funded through the state Office of Budget, that was awarded to the city in 2004.
The line of credit, project manager Tom Deans said, would serve as the city’s match to the $2.8 million grant, which expires at the end of 2010.
Woodring said plans are to soon meet with representatives from the Office of Budget to determine whether the financial plan is in the best interests of Sunbury.
“We’re still negotiating the city’s portion of the RACP reimbursement,” Deans said. “The line of credit is one of the means by which the city can achieve that requirement.”
Said Woodring, referring to news earlier this month that the city is debt-free for the first time in more than 10 years: “The last thing I’m going to do is put the city in debt when we have just gotten out of debt.”
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