Facing a $1.5 million budget shortfall, how can Whitehall Road Regional Park finally move forward?
With Whitehall Road Regional Park facing $1.5 million in funding shortfalls, Centre Region municipalities have been asked to refinance an existing loan to allow the long-awaited project to finally move forward.
The 100-acre park — to be located between Route 45 and Whitehall Road in Ferguson Township — has been in the works for years, but after the Centre Region Parks and Recreation Authority recently opened bids on eight different potential contracts for Phase 1, they exceeded available funds and grant awards by $802,113. In addition, the bids did not include restrooms, a maintenance building or irrigation for some of the fields and are expected to cost an extra $775,000. Including these improvements, the shortfall totals $1,577,113.
The initial development phase includes two artificial turf multipurpose fields with LED field lights, two grass, multipurpose fields, an all-ability and universally-accessible playground, parking, a walking path and an all-season pavilion.
Sixteen years ago, the Centre Region Council of Governments acquired the land to create the regional park. The COG General Forum is comprised of leaders from State College Borough, Ferguson, College, Patton, Harris and Halfmoon townships.
During a special meeting of the COG finance committee last week, CRPR Executive Director Pam Salokangas explained the bid process and said some companies withdrew their bids due to timing and other requirements. She added that restrooms are a priority, but some other unfunded items are of higher concern due to the installation timeline and development process.
In addition to grant funds and community donations, Salokangas said CRPR is working to secure additional grants to help pay for construction, but refinancing is still necessary to move forward. The authority also launched a new fundraising campaign to garner more donations.
As a solution, COG proposed using other funds to cover a portion of the expenses, including $245,000 in excess interest paid by participating municipalities for future debt service on the loan as well as $446,500 in rental funds. The remaining shortfall would be made up by borrowing an additional estimated $2 million, plus the cost of borrowing, in conjunction with refinancing the current park and pool loans.
Staff expects to save $300,000 that could go toward construction costs by refinancing, but in order to move forward, the COG General Forum must unanimously pass a budget amendment.
Municipalities would not pay a higher annual amount to COG for debt service, payments would be extended to an undetermined pay-off date.
During last week’s meeting and subsequent municipal meetings, boards have expressed support for some form of refinancing, but Ferguson Township is not in favor of contributing more money to the park. Last week, supervisors Steve Miller and Laura Dininni said there’s “no way” it will pass in the township.
“Although I understand what you’re saying is that each payment will not be more, so that budget won’t change. It will extend out through time, and therefore, we will have contributed more money,” Dininni said.
Dininni added that the township is not interested in borrowing more money to fund the park, but said support is contingent on CRPR using proceeds to construct restrooms at the park.
The committee’s recommendation to refinance the loan and maintain the current debt service level while extending the loan to complete Phase 1, including the unfunded items — restrooms, maintenance building and irrigation system — passed in a 5-1 vote, with Ferguson Township dissenting. But in order for the final decision to pass, the general forum must unanimously approve the proposal.
Since last week, municipalities have voiced support for finishing the park but expressed frustration with financial challenges and delays at Whitehall Road, Oak Hall Park and Hess Softball Complex.
“It seems like every time we think we have this put to bed and we get told we’re going to break ground, something else comes up, and we can’t do it again,” Harris Township Supervisor Franklin Harden said Monday night, adding that he is in favor of refinancing if it speeds up development. “I don’t see why we keep leaving these projects partially undone.”
The COG finance committee will meet virtually Thursday morning to discuss Whitehall Road Regional Park and refinancing. COG Executive Director Eric Norenberg estimates a final decision could be made in March, but additional decisions about funding could be made in the coming weeks.
“This park is a huge opportunity for the region,” Norenberg told the CDT Wednesday. “I don’t think it’s exaggerating to say that the benefits of this park could almost be endless. This park will help provide connections to the developed part of the community in Ferguson and State College through trails through this park to the Musser Gap Trail and onward to hiking and trail opportunities well beyond our area.”
In addition to connectivity, the park will provide additional sporting fields in Centre County and provide an accessible playground, so families and kids have opportunities to use equipment that’s available to all abilities.
Norenberg and Salokangas have also stated that COG and CRPR recognize concerns about developing other Centre Region parks and finishing ongoing projects, and they are working with municipal leaders to make headway.
“I think we all want to celebrate this accomplishment and really collectively reassess the needs in the region for recreation and amenities and parks, and by doing so, we can shape a new shared vision because the leaders who created the vision for years ago, who started the regional parks initiative, created a very robust vision,” Norenberg said. “There’s more to come, but I think this project will help provide some catalyst and focus for a discussion that we can all have together for the next round of planning.”
