School Office Plans Run Into Problems

North Center School Renovation Deal In Southington Gets More Complicated, Costlyfont weight: bold">Follow Your Town News On The Courant’s Southington Facebook Page

SOUTHINGTON An unusual deal to renovate an unused school into town offices that was supposed to reduce costs and make life easier for the town has instead gotten complicated and more expensive.

A series of recent developments could add $493,839 to the project’s cost. And the complications have set the stage for a potential dispute with the state that local officials say they’re willing to take to the attorney general if necessary.

The town has agreed to sell North Center School to a developer for $1. In return, the building will be renovated into offices for municipal staff and leased back to the town. The town would have an option to buy the building back after eight years.

In early June, the state Department of Labor told the town that the school project qualifies as a public works project and must comply with the state’s prevailing wage laws. Town officials were not expecting that and say the ruling will increase labor costs by $493,839.

The town hopes it can offset the rising labor costs by having the project declared tax exempt by the state Department of Revenue Services, something local officials thought Southington would be entitled to given the labor department’s position. Tax exempt status would save the town $208,775, said Town Attorney Mark Sciota.

But Sciota told the town council last week that it’s unclear if the revenue services department will grant the tax exemption. Sciota said the department has deferred making a ruling.

Sciota said he will work with state officials on the issue and hopes to have the matter resolved before the council meets July 21.

Two council members who have opposed the project said the state’s moves vindicate their position.

"This latest news is even more reason to be opposed to the plan," council member John Barry said.

The original cost of the project was put at $6,889,617. But with the new demands by the state ot could rise to $7,458,081.

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