Palmer civic center numbers revealed in report

PALMER — A report released last week details the projected costs and benefits of a proposed Palmer Conference and Community Center.

The report suggests the facility be used for locally oriented activities such as meetings, civic events, art exhibits and wedding receptions. It recommends a total facility footprint of 30,000 to 36,000 square feet broken down into a ballroom, classrooms and display space. Two alternatives were studied, one with a fixed-seat auditorium and one without.

The report estimates construction costs between $11.4 million and $23.4 million, depending on size, quality of finishes and amenities. In addition, the center would be operated at an annual deficit of between $260,000 and $288,000, the report says. For the first two years, the operating deficit would be higher, likely in the $400,000 range.

These prices do not include the cost of securing land for the facility and debt service of the construction costs.

Once completed, the report estimates the center will generate $1.3 million each year in direct spending in Palmer. The total economic output related to the center would generate approximately $2 million each year.

The report — a draft yet to be finalized by the consulting firm — was presented to the city council and then the community center focus group.

Sara Jansen, special assistant to the city manager, said the report points to positives and negatives of locating such a center in Palmer. Palmer is within 50 miles of the state’s major population center, yet it lacks a “headquarters hotel” to house the center’s guests.

Jansen said it is common for a facility like the one proposed to operate at a deficit, and the benefits to the community have to be considered in addition to the sheer economics.

“For example, the ice rink doesn’t pay for itself, but I don’t think anyone would say that is not a good thing for the community,” Jansen said.

But, she continued, you still have to pay for the day-to-day expenses. In the end, it comes down to what the public is willing to shoulder.

From the beginning, the city has looked at purchasing the Matanuska Maid property in downtown Palmer as a potential home for the center. The city approached the state’s Board of Agriculture and Conservation this summer, but the asking price was more than the city is willing to pay.

The city paid for its own appraisal on the property that came back just shy of $1 million and took this price to the board. Jansen said the property is now on the open market for the appraised price, and the city simply has to secure financing to buy the property.

Councilman Richard Best said the report on the center doesn’t rule the project in or out, but given the current economic climate, this may not be the best time for the project. Before he makes his decision, Best said he needs to see more information on exactly what support the project has in the community, how local businesses would use the facility and what the benefits of the economic activity generated would be.

“Basically, we would be subsidizing whatever business that would be encouraged,” Best said. “I have a hard time swallowing that, and I have a hard time selling that.”

Rick Ritari, chairman of the focus group, said it’s premature to say whether the project has legs. The group now has to go through the data collected in the report at its next meeting on Feb. 17 before it makes it recommendation to the city council.

Contact Todd L. Disher at todd.disher@frontiersman.com or 352-2252.