Durant City Council, in a meeting last week, approved a $2,348,000.00 bid from Mid-Plains Construction to build a new animal shelter even though the project is over budget.
The project was originally estimated at approximately $1.2 million, and Mayor Martin Tucker said the difference can be made up from funds the city receives from the Choctaw Nation and taking out a loan to finance the remainder of it.
Last year, the council approved an architecture and engineering plan from Theorem for a 5,000 square foot facility.
In last week’s meeting, Vice Mayor Mike Simulescu said, “I think one thing we talked about last time was funding because we’re somewhat short of, I think we said we’re at $1.1 million and then it’s like $2.3, $2.5 million. What is the potential funding mechanism to close that gap? Have we got any answers on that? I think that’s a big question.”
Tucker spoke of the Choctaw Community Partnership fund that the city receives a payment from every year. In December, the city received $305,800 from this partnership. Tucker said City Manager Pam Polk told him that for the past two years, the city has set this money aside in anticipation of the animal shelter project.
“So, the city wouldn’t stop providing any service or stop doing anything for the community if they were to use those funds to repay a loan, for instance,” Tucker said.
Simulescu asked how much of the money had been saved, and Tucker said more than $600,000, but he did not have the exact number.
Police Chief Jesse Petty said about $1.2 million has been set aside for the animal shelter.
“I’ve done a little bit of research and spoke with First United and some other banks,” Petty said. “So, yes, the possibility of securing that loan with the idea of that annual payment of $350,000 a year until it’s paid off is a possibility. Now that said, it couldn’t necessarily go to the City of Durant. It would have to go through a utility.”
Tucker said the city has financed a fire truck, and it’s done the same way.
According to Tucker, about $800,000 would be the difference to complete the project.
Council Member Clint Morrison said he thought that everyone agreed that the city needs a new animal shelter.
“I also think that we don’t have the money,” Morrison said. “I guess that’s what I’m concerned about is borrowing for that. You take away from something else that we might need. Especially capital improvement. I don’t know, how does that figure in also? Things that are coming up, the wastewater treatment facility and things like that.”
Tucker said those projects are already financed.
“I can tell you the city will be able to borrow $800,000 for this project,” Tucker said. “I’m confident of that. What it’s going to cost and who’s going to be the lender I can’t say because again, that’s a process that would be public.”
He said the loan could be paid off in about two and a half years.
Simulescu asked about manpower and costs to maintain the current shelter.
Durant Animal Control Supervisor Cara Hutson said the cost for the current shelter is $45,000 per year. She said when they move into the new shelter, they will not be walking in fully staffed.
“We are preparing the first year to have three ACOs (animal control officers), one supervisor and one kennel tech,” Hutson said.
She said the costs to operate the new shelter will be about $250,000 per year and during the second year, they will be looking to add two more kennel staff.
Council Member Danny Sherrer made a motion to accept the bid, and all council members voted yes.