Sep 4, 2008

BREAKING NEWS: New Palo Alto police station on track

Redesign work moves forward despite funding questions

By Will Oremus/DAILY NEWS

Plans for a new police headquarters in Palo Alto are solidifying even as questions linger about how to pay for it.

After junking two other options, the city's architectural review board today gave project planners a tentative go-ahead to revise the station's design. The new scheme will feature two, parallel three-story structures - one for police, one for parking - on the full 1.5-acre block framed by Page Mill Road, Oregon Expressway and Alma Street.

The board had plenty of suggestions for how to improve the plans but saw no insurmountable problems at this early stage. That's a big relief to public works officials, who will need a smooth path to approval to keep the $69 million project within budget.

They hope to submit a formal application in November and take bids on construction next summer.

Meanwhile, the city is still grappling with how to finance the project. The latest plan would require $5.2 million per year from its general fund for 30 years to pay off the capital and interest on loans worth about $80 million. It's a daunting chunk, considering the city's total general fund budget was about $146 million last year.

Officials hope new revenue, including some from a proposed business license tax, will help the budget's ends meet without serious cuts. Details of the financing plan won't be set until after bids come in, said Joe Saccio, deputy director of administrative services.

E-mail Will Oremus at woremus@dailynewsgroup.com