By Bill Grubb

ROGERSVILLE - With the estimated cost of completing the project exceeding the funds available by $173,815.81, the Rogersville Board of Mayor and Aldermen voted Wednesday to balance the construction budget by taking out a loan.
    The Inn renovation is scheduled to be completed by June.  According to Mayor Jim Sells, the looming deficit came to light during a recent meeting on the status of the project.
    "It comes down to what are we going to do now?  Are we going to finish the project?" Sells inquired.
    The Inn is owned by the Rogersville Heritage Association (RHA) and the town has been working with the First Tennessee Development District (FTDD) to administer the project.
    Ken Rea, of the FTDD, and contractor Glen Courtney both attributed the shortfall to the confusion that developed when a portion of a rear wing collapsed in February 2008 after work was underway.
    Rea said the application for the second grant was calculated based on "best guesses" from architect Michael Emrick and Courtney explained he was asked for cost figures even before the plans were finalized and approved.
    "When the Inn fell they went into the redesign phase," Courtney noted, adding that what was to be a two phase project was ultimately combined into one project.
    A budget summary, presented by Rea,  shows a total of $2,143,590.19 in grant, loan or matching funds for the project including:  $803,469 from the first Tennessee Department of Transportation Grant; $168,000 from the second TDOT grant;  $336,000 from an energy loan;  $677,485.39 from and insurance settlement; and $158,635.58 provided by Rogersville as matching funds. 
    Rea said once money is subtracted for funds designated for engineering and heating and air conditioning expenses the actual amount of money available for construction drops to $1.685 million.
    The current contract with Investment Contractors, including previously approved change orders, represents an expense of $1,400,119.  Other change orders to restore some expenditures that had previously been cut from the budget, including replacing the building's front porch, will raise the estimated cost of the project to $1,858,936, creating the $173,815 deficit.
    "You could tell Glen to stop now, but you wouldn't have a finished building," Rea said.  "We haven't spent any money you don't have, yet.  Down the road we see a problem."
    "Is this going to finish it?" Alderman Wayne Slater asked during the discussion.
    "If they don't make any changes," Courtney replied, adding that even minor changes, such as the type of flooring, could have an impact on the final cost.
    Rea also noted the budget does not have any contingency funds for unanticipated expenses.
    "If we hit a big change that no one anticipates that presents a problem," Rea said.  "If we run into a $2,000 or $3,000 change I can see us making that up."
    City Attorney Bill Phillips noted the renovation project has been relying on public funds, the grants from the state and the local matching share the town has already provided, and he expressed his opinion the additional money would represent an investment in the town's future.
    "The state thinks this is a worthwhile enough project to spend $1.8 million on it because they realize what revitalization of a downtown does.  The idea is it will encourage more economic activity and bring more revenue in.  They realize there is some economic benefit and return," Phillips said.  "I guess the issue is, do the Board of Mayor and Aldermen think this project is worthwhile enough to invest $331,000?"
    RHA Board President Dr. Eddie Abernathy said the organization might have a hard time borrowing the needed funds, because of the outstanding loan to purchase the building.  He also indicated the organization plans to work with the town to repay the loan.
    The organization is currently paying $3,000 per month on the loan used to purchase the Inn in 2003.  The amount due on the notes will not be determined until the money is actually borrowed.  Once the project is completed the RHA hopes to sign a lease with an innkeeper to manage the restaurant and hotel, with the lease proceeds to retire the debt.
    Phillips also suggested another reason the town should consider borrowing the funds for the project is because the town holds the title to the Inn, under a 2006 agreement.
    "The town has title to this property for 20 years.  We own it for 20 years," according to the attorney.
    "We have got to get this building open, we have got to get this thing running so it can start making some money," Alderman Philip Beal said.
    The motion to issue the notes was approved unanimously, with Alderman Bennie Floyd absent due to illness.   
    In other business, the BMA voted to rescind a vote last month to make the intersection of McKinney Avenue and Depot Street a four-way stop.
    The board also voted to cancel the February 10 meeting due to lack of business.