Rising inflation pushes Rockford Public Library project millions of dollars over budget

By Mary Sisk
Rock River Current
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ROCKFORD — Rising inflation has pushed the cost to build the new flagship Rockford Public Library in downtown approximately $4-$5 million over budget.

Right now, it’s unclear how the library will cover the increased costs. When the $33 million project broke ground last October, it was with the understanding that ComEd would foot the bill because it was responsible for the environmental cleanup needed due to the site’s history as a gas plant in the late 1800s.

Library officials have again turned to ComEd to pay the rising costs, and it is negotiating a potential deal with the power company. Lynn Stainbrook, the library’s executive director, said the other options aren’t acceptable.

“We have a plan B, C, D and they all amount to F in our opinion, in terms of a failure,” Stainbrook said. “ComEd told our community that they would take care of this, and then if we have to use tax dollars to take care of it, that’s not so great.”

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Representatives of ComEd said they could not discuss the negotiations.

If the company doesn’t cover the cost, Stainbrook said the library could issue bonds to pay for the project. However, taking on that debt could limit its available operating budget. The library could also turn to more private fundraising and seek a short-term loan to fill the gap.

“None of (those options) are good solution, but they’re better than having the building three-quarters built and sitting there not being able to move in,” she said.

She said Scandroli Construction Co., which is managing the project, has done its best to curtail increased costs. The library has also scaled back when possible. For example, the library eliminated a freight elevator from the final project to save costs even though officials still feel it’s needed.

“We, at the library, have not just pushed all the burden onto ComEd,” Stainbrook said. “We did a lot of extra work in terms of trying to balance our budgets, so to speak.”

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The library and ComEd signed their initial agreement in May 2017, and it took inflation into account. However, it included inflation rates of up to 3% per year until the last two years of the contract, when it rose to 5%, Stainbrook said.

Instead, inflation this summer hit its highest mark since 1981, according to U.S. Bureau of Labor statistics. Year-over-year inflation stood at 8.2% at the end of September.

“We did go back through the project and try to change things and eliminate some things to make it less costly,” Stainbrook said. “There’s only so much you can look at to change without causing significant, more costs.”

Increased material costs have driven up prices, but there have also been other issues that inflated costs. For example, because of the global supply-chain issues, the library ordered steel as soon as it was available. However, the material wasn’t needed right away, so the library had to pay for storage costs.

Stainbrook, who joined the library in 2014, said the library hasn’t increased its property tax levy as long as she’s been at the helm. The levy was left flat again this year. But it’s unlikely the library can continue that trend, Stainbrook said, especially if it has to borrow money to pay for increased construction costs.

“The truth of the matter is we’re going to need a levy increase along the way here,” she said.

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For now, the library is sticking with its initial estimate to complete construction by this time in 2023. However, that could be delayed. It’s still unknown if the library’s shell will be covered before the harsh Midwest winter sets in.

“Currently we’re on the schedule that had been formed after the start date,” Stainbrook said. “We don’t know whether or not we will actually finish a year from now. We think it might be more like December or it might be even January of 2024.”

This article is by Mary Sisk. Email her at msisk@rockrivercurrent.com or follow her on Instagram at @maryrrcurrent