Talks with Exit 101 LLC over the proposed Fairfield Suites and Inn continued at the Sandy Township Supervisors and Municipal Authority meetings Monday night. Two points of discussion were an increase in estimated costs for the project and secured funding.
Initially the entire cost of the waterlines was estimated to come to $148,260. The sewer would come to $238,020. According to Tom Delanely, who the township has been negotiating with, the estimates have gone up. The water lines are now estimated to cost $179,918 and sewer at $283,996. Delanely stated that a redesign to the gravity sewer system and adjusting for prevailing wages were the reason for the change.
“[Prevailing wage] is the largest single reason why costs have gone up,” said Delaney.
Delaney stated by taking public funds the project now falls under prevailing wages, and it has driven up the cost by 20 percent.
The supervisors had previously agreed to move on with negotiations under the assumption they would pay 33 percent of the project, a third, split with Exit 101 LLC and Unilec. The supervisors limited their share to $175,000 should there be overruns. Delaney requested that the city raise its cap to above $200,000 in light of the new costs.
Delaney also stated that the cost to the city might even drop from what was proposed Monday night. Delaney told the supervisors that he was also negotiating with the City of DuBois.
Before the city could agree, both Delaney and the supervisors had to work out around a township requirement for 110 percent of the project to be certified funds. Normally this would be through bonds or a line of credit. Delaney proposed that the roughly $300,000 that accounts for Exit 101’s and Unilec’s shares count towards the 110 percent, and the difference could be made up of either a line of credit or bonds.
Sandy Township Solicitor Greg Kruk stated that a restricted or escrow account should work for the $300,000. The township approved the revised agreement based on the new budget pending the agreement matches township, the state’s Department of Environmental Protection, PennDOT and other requirements.
The hotel will hire around 30 workers when it is completed. There will be 91 rooms. The old Sunoco station owned by Delaney’s grandfather will be converted to a restaurant employing six to 12 people.
