HANNIBAL | For the second consecutive year the city of Hannibal has agreed to a 50% reduction in the permit fees it is owed from the Hannibal School District's major renovation project that is nearing completion.
“Like last year those permit fees are going to be about $62,000. I am here again to request a 50/50 split like last year, less the fees Klingner (& Associates) would have as well,” said Hannibal School District Business Manager Rich Stilley, during the July 7 meeting of the Hannibal City Council at city hall.
According to a memo from City Manager Lisa Peck to the council, the original amount of the permit fees for Phase 2 totaled $61,316. With the reduction the school district will now pay the city $30,658.
Despite the fact a significant amount of money had to be cut out of the city's fiscal year 2020-21 budget, which was given final approval by the council during its July 7 meeting, Peck had no trouble recommending approval of the school district's request.
“The city finances were an issue of consideration,” said Peck. “However, this is very similar to what we did last year. We recognize them as another taxing body and as a partner we would have to work with in the future on potential development agreements, and things like that. In a development agreement there could be concessions requested of the school (district) and so in the spirit of being a good partner I did not have a problem with recommending it.”
In 2019, Stilley proposed a 50/50 split for Phase 1 of the project which took place at Hannibal High School and the Hannibal Career and Technical Center, the estimated fees for the permits necessary to perform last summer's work would be in the range of $88,000.
“It (full fee charges) could potentially have a significantly detrimental impact on the overall scope and sequence of the renovations we are going through,” Stilley told the city council last year.
City Attorney James Lemon advised the council in 2019 that such a fee split is permissible.
“Because the school is another subdivision of the state of Missouri this is the type of thing that we can do,” he said.
Work on Phase 2 of the project, which costs approximately $12 million overall, is in the home stretch.
“We are finishing up the HVAC, electrical and some safety upgrades at Hannibal Middle School, Korf Gymnasium and at Hannibal High School,” Stilley said. “I think we can say we are all pleased with the outcome so far.”