In the June 23 Free Lance, the Editorial Board suggests that rebuilding fire station 1 at this time is nonsense. The first part of the article cites a bad economic situation in Hollister, high unemployment, struggling businesses, increased taxes for citizens, and a declining general fund reserve as reasons for not rebuilding the fire station. The article goes on to suggest that the funds would be better put to use through road work projects and projects to spur economic development. The article concludes by saying government officials have a responsibility to provide basic services before spending taxpayers' limited money on making employees' work environments more pleasant.
It seems as if the Editorial Board has a lack of understanding of the difference between city government (city council, city budgets, general fund, etc.) and a Redevelopment Agency (Redevelopment Agency Board, RDA budgets, RDA funding etc). RDA funds cannot be used for general operating expenses. So not rebuilding the fire station would not result in any increased revenue for the general fund. In fact, if the city chose not to use the $5 million designated for the fire station, those funds would eventually end up in state coffers!
The fire station rebuild has been on the list of approved RDA projects for a number of years. The Editorial Board suggests that now is not the time for this project. Consider the fact that construction project bids are now at the lowest they have been in years. Examples - the Fremont School demolition project had 18 bidders with the winning bid being more than 30 percent less than anticipated. The Highway 25 safety project also had a large number of bidders and the result was a savings of about 30 percent. So by doing this construction project now, rather than when the economy has recovered, the RDA will reap a significant cost savings.
The Editorial Board cites San Benito's high unemployment rate as a reason to delay this project. Duh! - wouldn't it make sense to do a project that will help put some people back to work? This project will last over a year and will make use of all the trades. So it would seem that this is an ideal time rebuild the fire station. The RDA gets a cost savings and jobs are created.
The Editorial Board states that we should be repairing roads and creating economic development projects. The RDA does fund some road improvement and will continue to do so, probably as much as the law will allow. In addition, the city will be receiving around $900,000 in stimulus money for road improvement. While state funds are questionable for this coming year we do receive a yearly allocation for road improvement. I do agree with the Editorial Board that economic development projects rate a very high priority. However, as much as we would like to have new commercial centers, no developer is going to undertake such a venture in these times. As the economy starts to improve, those projects will follow.
So for me, it makes good business sense to rebuild the fire station now. It also should be remembered that the RDA will not be with us forever and paying for the rebuild or a new station out of the General Fund does not make sense. For me, it makes good business sense to wait on the economic development projects until developers are eager to develop. For me, it does not make sense to limit use RDA tax increment monies and have those monies go to the State of California.
Doug Emerson is a Hollister City Council member.
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