Rehoboth city hall construction set to begin

Rehoboth Beach officials have issued the first contracts for the $18 million City Hall project, with construction set to begin by mid-November.

The commissioners unanimously approved a $7,000 bid by County Insulation to remove asbestos from the existing City Hall, the Rehoboth Beach Main Street building, the parking meter department and tech services building, all of which are slated to be demolished.

Mayor Sam Cooper, who was pleased with the low bid, said the project requires taking up all the flooring and removing siding and windows. Cooper said work would begin at tech services as soon as possible and that work at City Hall would begin after the city staff has vacated the building.

An $887,000 contract for the new Main Street and parking building was also approved, with Salisbury-based Delmarva Veteran Builders the winning bidder. Cooper said the bid was very favorable to the city, which budgeted $1.2 million for the new building.

Finally, the commissioners approved a contract for Corrado Construction Co. of New Castle to perform demolition and site work for the new City Hall. By contract, Corrado is not to exceed $1.9 million; the original site work budget was for $1.5 million, but Rick DiSabatino, vice president of primary contractor EDiS Co., said with the savings from the Main Street and parking department building, the city is still able to maintain its $1 million contingency fund.

Cooper said he was disappointed only two bids came in for site work and demolition, which also includes curbing, sidewalks and electric hookups including mobile offices. DiSabatino said the U.S. Department of Agriculture, which is lending the city the money for the project, has bid requirements that led city officials to try to consolidate as many elements of the work as possible.

Meanwhile, city employees are vacating the offices in anticipation of construction. Police Chief Keith Banks said the 911 center completed its move to Sussex County’s Emergency Operations Center in Georgetown Sept. 21. Banks said citizens would see no difference while calls are routed to Georgetown. He said it is the same dispatchers taking 911 calls and administrative calls, the only difference being they are not in Rehoboth.

Cooper said the city is close to closing on its loan with PNC Bank for temporary funding for construction, which is necessary because the USDA loan is available only until after the project is finished. The plan is to use the USDA loan to pay back PNC Bank and then repay the USDA under a 20-year loan.

Finally, City Manager Sharon Lynn noted the Oct. 16 regular meeting was the last in the current City Hall. Commissioners' meetings will move next door to the Rehoboth Beach Volunteer Fire Department while construction is ongoing. The Rehoboth Beach Convention Center will host its final events Saturday, Nov. 7 with the Beebe Ball.