Bellaire City Council approved an ordinance June 15 that authorizes city officials to publish a notice of intent to issue certificates of obligation, the first step toward the city being able to start construction on its $8.7 million renovation job to create a permanent home for the Public Works Department.
What we know
City officials are converting a 46,110-square-foot industrial building off Glenmont Drive into a permanent municipal operations hub, primarily for Public Works, according to the agenda item. The project addresses the loss of the former Edith Street facility, which was damaged back in 2015 and resulted in scattering departments across the city.
The new hub is expected to consolidate operations and permanently relocate critical infrastructure out of flood-prone areas. In addition to Public Works, the space will also be used for police impound operations, parks and recreation field crews and facilities department storage, City Engineer Beth Jones said.
The scope of work includes a new roof, updated systems, facade refresh, parking, fencing, lighting and landscaping. About 10,000 square feet is anticipated to be conditioned office space, with the remainder serving as a warehouse/storage space.
"I am excited for this facility," council member Ross Gordon said. "The fact that one facility can address so many of our citywide facility needs is just fantastic. We are in a good spot, and we are doing it in a way that is financially prudent."
The cost
The certificates of obligation for the project will be set at $8.7 million. Certificates of obligation, or COs, are a form of long-term borrowing used by local governments to fund public projects, according to the Texas Public Policy Foundation. COs do not typically require voter approval.
"What I understand about certificates of obligation is that they are for essential services for the city," council member Catherine Lewis said. "I've told people before that you have to provide a place for these people to go to work. You want your trash picked up, you want your streets repaired, you have to provide a place for them to report to work, take their showers after a hot, sweaty day. This is essential."
Jones said the city's COs are approximately $1.7 million higher than the original estimate shared during an April update on the project. She said the increase in price is due to some changes in the design process and other factors as the plan progressed.
The project cost is being split between two funding mechanisms, with 60% of costs coming from the Enterprise Fund via utility rates and 40% from the General Fund via property tax rates. The COs are expected to be sold in August. An additional bond issuance will also be discussed for the project during the Aug. 3 City Council meeting.
Project timeline
Design and permitting are currently underway, city officials said. Construction is expected to begin in late 2026, with a completion date targeted for 2027.
