Rising costs shelve three major City of Mobile projects

MOBILE, Ala. (WPMI) — Three major projects in Mobile that have already used millions of dollars in their design and planning, have been postponed due to rising costs and funding shortfalls.

According to the City of Mobile, the Brookley by the Bay park project, the joint Mobile Police and Fire Training Facility and the new City of Mobile Animal Shelter have all been paused.

MOBILE ANIMAL SHELTER

In December 2023, the Mobile City Council unanimously approved a $1.7 million site work contract on what was estimated to be a $9 million to $11 million new Animal Shelter on Montlimar Drive. According to a statement from the City of Mobile, that estimate ballooned to nearly $20 million.

“At that point, the city asked White-Spunner Construction to assist with value engineering the existing design to identify potential cost savings”, the City said in a statement and went to add that those efforts “did not result in meaningful cost reductions.”

City officials are working with the Real Estate and Animal Services departments to identify other potential properties that could be retrofitted to meet the shelter needs.

The City had previously approved a $1.3 million design contract for the facility, bringing to the total to nearly $3 million expended on the facility.

“We recognize the need for a new shelter with improved facilities to enhance the experience for pets, staff, and visiting community members. As soon as we have more to share, we will do so”, the City concluded.

JOINT POLICE AND FIRE TRAINING FACILITY

A “state-of-the-art” training facility for Mobile Police, Fire and Emergency Services which would “provide a multidisciplinary and comprehensive training”, according to the design contract, also skyrocketed in estimated price.

The facility would be located at the old Greystone School on Azalea Road just south of Government Blvd and was estimated in January 2023 to cost $13.8 million.

According to City officials, the latest estimate exceeds $30 million for the facility. “About 30% of the design work was completed when it became clear that costs would significantly exceed the city’s available capital”, the City told NBC 15 News.

In January 2023 the design contract was awarded to Goodwyn, Mills and Cawood for just under $1 million.

NOTE (2:45pm) : The City of Mobile responded stating that Goodwyn, Mills and Cawood have only billed and been paid $86,908.07 for the design work.

“While this remains a viable project that would benefit both agencies, the absence of a joint facility is not preventing MPD or MFRD from providing adequate training, as they continue to utilize existing facilities. Both agencies routinely train new employees and have recently produced some of the largest graduating classes ever”, the city said.

City officials also noted that in 2025 $8 million will be invested in MPD and MFRD facilities, including a new fire station on Azalea Road, and improvements to the aging MPD Headquarters on Government Blvd but that “With no identified funding source, the public safety training facility was not among the capital projects planned for 2025.”

In 2020, plans for a new combined MPD and MFRD headquarters that was announced in 2018 were also shelved due to the “economic downturn” during the COVID19 pandemic.

BROOKLEY BY THE BAY

In late 2020, using funds from NFWF, GOMESA, and the Governor’s Economic Development Fund, The City of Mobile purchased 400 acres at Brookley from the University of South Alabama Foundation for a cost of $33 million to develop a community park. The cost in 2023 when the final master plan was completed was estimated to be $20 million.

The City says that the initial design for roadwork, bike lanes and other infrastructure is “nearing completion” while plans for later phases, which would include an amphitheater and educational building, are approximately 30% complete.

The City offered no current estimated cost for the project but said that “Due to the ambitious scope of Brookley by the Bay, we continue to seek funding from grants, federal programs, and private partners.”

The land purchased was once part of the Brookley Air Force Base and housed, among other things, seven shooting ranges. In late 2022, NBC 15 News reported that a 2018 site inspection report prepared by the U.S. Army Corps of Engineers found lead above naturally occurring levels at several locations on the property.

"I can assure you that we're not going to go forward with any part of the park where our citizens will be out there playing or recreating, that's going to be dangerous”, Mayor Stimpson told us at that time.

In May 2023, the design and engineering contract for Brookley by the Bay was increased to $2.6 million with and extension on the performance period of two years, until May 31, 2025. That change order includes a full park redesign, preconstruction services, and protection of the shoreline for Arlington Park and Brookley by the Bay.

“The completion of the master plan and design work will make this a "shovel-ready" project, positioning the next administration to bring the vision of Brookley by the Bay to life”, said a City spokesperson.

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Effort to extend overtime tax cut amasses bipartisan support, though key lawmakers remain skeptical

MONTGOMERY, Ala. — Alabama House Minority Leader Anthony Daniels, D-Huntsville, has filed a bill to permanently extend the state income tax exemption on overtime pay, amassing some bipartisan support, though key lawmakers, including two budget chairs, remain skeptical.

The bill has amassed 33 cosponsors of both the Democratic and Republican parties, including from House Majority Leader Scott Stadthagen, R-Hartselle, and Republican Reps. Shane Stringer of Citronelle and Craig Lipscomb of Gadsden. A handful of powerful Republican lawmakers, however, remain skeptical, largely due to the House recently advancing a package of tax cut bills last week projected to cost the state $192 million.

Carried by Daniels, the overtime tax cut was established in 2023, and included a provision that would see the tax cut sunset in late June of this year. Originally projected to cost the state about $34 million a year, the tax cut ended up costing an estimated $230.7 million over nine months, a price tag that Rep. Danny Garrett, R-Trussville, who chairs the House education budget committee, has said makes its passage seem unlikely.

Garrett’s four-bill package of tax cut bills passed in the House last week included reducing the state sales tax on groceries from 3% to 2%, granting the authority to local municipalities to lower their own sales tax on groceries, double tax exemptions for seniors drawing from retirement, and increase tax-exempt income for lower- and middle-income earners.

While considering himself a supporter of some of the bills in the tax cut package, Daniels said that cutting taxes on overtime pay was by and large the most effective way to help Alabama families.

Much has been made of the surprise price tag of the tax cut on overtime pay, but Daniels has argued that most of the state’s lost revenue from overtime taxes ends up in state coffers regardless, either through hourly workers spending their savings or through corporate tax receipts.

Meanwhile, Garrett’s tax-cut package now moves to the Senate. While it moved rapidly through the House this month, deliberations may be slower in the upper chamber as its members review the bills.

While supporters of the cuts point to health reserves created by conservative budgeting in recent years, Sen. Greg Albritton, R-Range, points to increased expenses on the horizon, including a $283 million teacher health care program budget shortfall, and flat revenues in the Education Trust Fund so far this year.

And while cutting taxes is popular, reducing them now and then dealing with a revenue shortfall in 2026 when all lawmakers are up for reelection, would not win them political favor, Albritton said.

READ THE REST OF THE STORY: Effort to extend overtime tax cut amasses bipartisan support, though key lawmakers remain skeptical - Alabama Daily News