HUTCHINSON, Kan. — Plans to renovate Hutchinson's Memorial Hall could be delayed until 2028 or 2029 as city officials reconsider the project's financing and work to reduce renovation costs.
During Tuesday's City Council meeting, Finance Director Angela Richard said updated revenue projections for the Ad Astra STAR bond district estimate approximately $27 million in incremental sales tax collections over the next 20 years.
However, the city cannot borrow against the entire projected amount.
Richard said financing requirements would allow approximately $8.7 million in initial bond principal, with total debt payments of approximately $18 million.
The district includes the Cosmosphere expansion, the Landmark project and Memorial Hall renovations.
Richard said the city has been advised to prioritize $5 million for the Cosmosphere to begin construction and provide enough funding to meet debt obligations associated with the Landmark project.
That leaves Memorial Hall waiting for additional financing.
"What this means for Memorial Hall is that we will likely have to wait and issue GO debt in a couple years," Richard said.
The city could potentially issue approximately $6 million in general obligation bonds in 2028 or 2029, with debt payments reimbursed through future STAR bond revenue.
Richard said delaying the project would also provide time to determine whether sales tax collections meet projections.
Renovation costs exceed earlier estimates
Parks and Facilities Director Justin Combs said the city is also facing substantially higher renovation costs.
An earlier reuse study completed by Wichita-based WDM estimated renovations at approximately $6.5 million.
However, updated design work by SFS Architecture of Kansas City indicates the improvements would cost significantly more.
"We are trying to kind of downsize the scope of the project to meet that $6 million budget," Combs said.
Combs said the city is focusing on improvements to areas used by the public, particularly the main performance space and air conditioning.
Improvements to areas not typically accessed by visitors could be reduced to control costs.
"The renovations that WDM said we could afford two years ago is definitely not what SFS is telling us now," Combs said.
He said the delay could give city staff more time to refine the project while allowing the STAR bond district to establish a financial track record.
Councilmember Stacy Goss expressed frustration with the possibility of waiting another two years for improvements.
"My hope for the star bond was really that the money coming in from Memorial Hall would be enough to offset what we would have to transfer from the general fund," Goss said.
Goss said the building's lack of adequate air conditioning prevents it from being used during portions of the year.
HVAC improvements could be delayed
Officials also discussed whether to move forward immediately with a $1.8 million heating, ventilation and air conditioning project.
However, Combs cautioned that completing the HVAC work separately could require portions of the building to be demolished and restored twice.
He said waiting to complete the improvements together would likely be more cost-effective.
Richard also clarified that while the city could issue general obligation debt for Memorial Hall, the intention would be to reimburse those debt payments through STAR bond revenues.
Meanwhile, Combs said work on Memorial Hall's roof replacement is nearing completion, with portions of that project covered by insurance.
The building has reopened for rentals through the end of 2026, and officials could extend availability into 2027.
However, warm-weather rentals would remain limited until air conditioning improvements are completed.