Milton fire department plans building upgrades
Milton Fire Department is seeking confirmation of its nonprofit status from the town and a waiver of building permit fees to facilitate an upgrade and expansion of its facility, but town council is putting off a vote until after plans are reviewed by planning and zoning.
The department’s proposal would add new vehicle bays on the Front Street side, and to the rear of the building. The entrance would be relocated to front on Front Street to get up to the banquet hall. Expansion plans also call for a training area, bunks, a lounge, showers and a fitness room on the rear of the building.
Ed Ide, engineer for the department, said building plans are still in the design phase, but the renovation would include a new gable roof, replacing a flat roof. All told, Ide said the department would like to begin construction on the estimated $4 million project in June with an eye toward completion in June 2020.
Department President Johnny Hopkins said the expansion and renovations will provide much-needed storage space. He said the department is not planning to add new equipment but does plan to replace existing equipment.
To help conserve costs, the department asked for its building permit to be waived and for clarification of its tax-free status.
Stephen Wright of Shore United Bank, the department’s bank, said the loan is for a 25-year term with a 10-year fixed rate at 3.6 percent. Wright said the monthly payments would be $20,000, or around $250,000 a year.
The bank has deemed the department as a nonprofit organization, but the department wanted confirmation from the town of its status as backup showing that the department’s income was derived primarily from life-saving operations. Being deemed a for-profit entity would affect the department’s interest rate. For example, Wright said once the renovations to the banquet hall are completed, it could be rented out more often. He said if 51 percent of the hall income is derived from rentals, it would be considered for-profit and the interest rate would not be valid, since the rate is approved for a nonprofit entity. Wright said currently, the department generates less than 10 percent of its revenue from hall rentals.
Mayor Ted Kanakos questioned waiving the permit fee until council learned the actual amount of the fee to be waived. During the discussion, it was noted the department has $5 million in cash reserves. However, that statement was quickly corrected as officials said $5 million is the fire department’s total assets, not cash reserves.
Councilman Emory West said, “This looks like a win-win situation to me. The fire company does well for this town. Any time you call on the fire company for their help, they’re there with open arms. I feel with what they’re trying to justify is well planned out and we should back them 100 percent.”
Council decided not to take action on the department’s requests until planning and zoning has examined the department’s building plans. Town Solicitor Seth Thompson said following planning and zoning’s review, council will have a better idea of what the building permit fees will be.
