The Monroe County Council and the Monroe County Commissioners heard a presentation of the jail project on February 27.
(CATS-TV)
The Monroe County Jail project is facing a significant increase in estimated cost, with current estimates soaring to nearly $237 million, far exceeding the original projection of $106 million made last April.
Not included in the new budget are labor, road construction, storm water drainage or a daycare facility drawn into the project.
County Council member Peter Iversen said the cost increase shocked the council.
“When we walked into that room, we were expecting that first number,” Iversen said. “All of a sudden we saw that second number. That's a major concern of ours. You know, as we're thinking about how we're going to finance this.”
Monroe County's financial advisor, FSG, set a $229 million cap on what it can afford, leaving nearly $7.7 million in excess costs. That required cut would come before accounting for labor.
Iversen explained that the $237 million estimate covers the desired amenities for all departments in the new facility. To reduce costs, he expects departments will need to collaborate and compromise.
“I think a lot of the stakeholders in this process understand that we need to be doing this in a fiscally mindful manner,” Iversen said. “I think they're going to be more than willing to help us identify areas that we can get to be as close to budget neutral as possible.”
The proposed justice facility design includes the jail, new roads and a daycare facility. The map is a part of a plan presented to the Monroe County Commissioners and Monroe County Council.
With the groundbreaking slated for this summer, the county will be racing the clock to consult every department and identify where to cut spending.
Even with budget cuts, project costs may still rise.
IU Columbus lecturer William Haeberle noted that the construction industry has seen price hikes of up to 50 percent since the COVID pandemic, making predicting cost estimates increasingly difficult.
“Materials are going to go up,” Haeberle said. “Look at all the factors, and it’s not just tariffs, it's other costs, other factors, the complexity of the suppliers that are producing these materials, it's going up.”
Haeberle credits rising construction costs to a combination of economic shifts, local zoning restrictions and accessibility requirements on top of increasing material costs.
He said his nearly 23 years of experience in the construction business tell him that nearly every project exceeds its budget, with many ultimately costing twice as much as originally planned.
“Even when you have people that have done it before, experienced people, smart people, competent people, it's really hard to figure out how much it's going to cost,” Haeberle said.
Construction on the new jail is expected to take around two and a half years, with the jail substantially finished and ready for use in 2029. During construction, any accident could drive up costs unexpectedly, increasing county spending.
The jail project is funded by the county through local development resources, the corrections tax, and local income tax. Iversen said the county is trying to be mindful of how they spend taxpayer money.
“There are resources that we have, but they're not endless, and we need to be really careful with the ways that we're investing those,” Iversen said.
Iversen stressed the Monroe County Council is working to find a way to balance the budget before construction starts.
“We understand that this building is going to be built using taxpayer resources,” Iversen said. “We want to be transparent with all of the processes, so that taxpayers feel like it's their project, too.”
