Follow-up to Last Night’s M3C Meeting: Project Cost
During last night’s Mahoney City Center Committee (M3C) meeting, the design team presented cost estimates to consolidate City Hall, Assessing, Hamlin and the Main Library at Mahoney (with theater and gym maintained for community use) and build new Police and Central Fire Stations. The cost, $193.8M, is significantly higher than expected. To understand more, we encourage you to read this meeting summary, watch the meeting video, and review SMRT’s presentation.
How would a $193.8M project impact you as a taxpayer?
It’s too early to say, since the committee and city staff still have a lot of work to do on the Funding Plan, which will be presented to the City Council by July. Cost estimates were finalized just this week, so staff has not yet had time to dive into things like how, for example, phasing the project could alleviate the year-to-year impact on taxpayers.
If the City borrowed 100% of the cost at once and had no other funding sources, the $193.8M project would result in a roughly 16.5% tax increase for property owners, which would equate to $1,160 for the average homeowner. But this project needs to be phased practically and financially, which will impact how the tax rate is actually affected by spreading the cost out over several years. This is part of the work that will be done over the next several months.
Importantly, the committee and city staff will continue to fully examine all alternative funding sources like private philanthropic support, commercial partnerships, TIF funds, grants, and other ways to reduce the impact on the tax rate. It's also important to note that the figures above do not factor in the potential sale of City properties that would be vacated, like the current City Hall. Please see the report from the Funding Subcommittee, which goes into more detail.
By July, the consultants will have completed schematic design, M3C will have made its recommendation, and a funding plan will have been created. This will give an accurate picture of the property tax implications. We will aim to make a tax impact calculator available on our website for residents at that time.
What’s coming up next?
We encourage you to attend the January 13, 2026 City Council Meeting at 6:30 PM in City Hall Council Chambers. During the meeting, M3C will present its recommended conceptual design and seek guidance from the Council. You can make a comment during the meeting, or email the City Council at citycouncil@southportland.gov.