April 2024 Update: Phases 1 and 2 of the project are nearing completion. Phase 3 is currently paused due to project bids coming in higher than anticipated.
During the Orchard Park Central School District Board of Education meeting on January 23, 2024, the decision was made to adjust our phasing plan and timeline for the Investing in Our Future capital project. This adjustment is due to the significant cost escalation in the construction industry since the project was planned and overwhelming approved by voters in May of 2022. See Board of Education presentation from January 2024 regarding pause here.
When the project was approved by voters in May 2022, the District built in escalation projections of close to 20%, which was significantly higher than the traditional approach of 8-10% at the time. Since approval of the project escalation now sits at roughly 53%. The bids for phase three (HS music, pool, and gym renovations and additions) came in at over $20+ million more than projected originally. There are many factors for this, but the construction of the new stadium is no doubt putting a tremendous amount of strain on the labor force on construction trades locally.
After much deliberation and planning with the construction team and financial advisors, the Board of Education, based on Superintendent Lilleck’s recommendation, decided to reject all of the bids for phase three. It is not fiscally responsible to accept the current bids as it would lead to an additional tax impact for the community. That is not something the Board of Education or the Superintendent is in favor of as the project was developed and presented to the public to not have an additional tax impact.
With this in mind, the District also decided to pause phase three at this point and move to a reimagined phase four, which will include the elementary classroom additions. We plan to open those bids in the fall of 2024, after the design and approval phase as required by the New York State Education Department. This bid opening will give us insight into the landscape for the remainder of the project. Based on current construction costs, there is no question that what we looked to accomplish in the original project is not possible.
We will continue to be fully transparent with the community and the committee as future capital project decisions are made. Our goal is to maximize our funding in the most fiscally responsible manner to improve our facilities for all of our students, staff, and community.
