At its Sept. 1 Holly Springs Town Council meeting, the council approved borrowing $6.524 million to build a new community center and renovate the existing town gymnasium off Stinson Ave. The town is to take out an 18-year loan at 5.2 percent.

The financing passed in a 3-1 vote with Councilman Vinnie DeBenedetto voting against the motion; he asked to table the vote until the town manager could report about allowing citizens to vote on the project.

“The question is at what dollar amount does the town council go to the public, go to the voters for a referendum for increasing the debt, which is already high, as we’ve heard, in Holly Springs,” said DeBenedetto, who said the interest payments at $3.4 million put the total project at almost $10 million. “We’ve been down this road so many times,” said Holly Springs Mayor Dick Sears. “If we keep delaying this we’re never going to have the facility.”

Sears said he thought 90 percent or more of Holly Springs citizens will be thankful for the decision to move forward with financing the project.

Town Manager Carl Dean said consideration and studies about recreation needs including a community center dated back to 2000. He said the community center project was discussed at the council’s winter retreat. He said the staff was following the council’s direction given at that time to go ahead with the project.

The new 29,720-square-foot center is to include workout rooms, a 1/12-mile running track, a game room, an outdoor basketball court, and more. The existing classroom portion of the Hunt Community Center will be demolished for parking once the new center is complete in mid-2011, if construction moves forward as planned.

Dean said that the town would be paying the debt for the community center without increasing the debt burden on the town. Staff said the loan will be paid for in part by estimated savings in yard waste disposal and estimated increases in parks and recreation program revenues. And, the town continues to pay off other debts, staff said. The total project budget was set at $6,634,040. The town is to pay $110,000 from tipping fee savings; the fees were paid to the town from a now-closed landfill, staff said. Because the existing Hunt Community Center is collateral on a loan related to the town’s Novartis and business park work, the town is using Bass Lake Park & Retreat Center as collateral, and the town is finishing a trail and other amenities at the park as part of the project.

DeBenedetto said the town seemed to be at a rush for collateral and cited a recent Fuquay referendum and an Apex project funded with a lower interest rate.

As part of a public hearing on the financing, two citizens spoke out against the project and asked for a referendum. One said Holly Springs’ debt was heavy and that excessive borrowing to fund the community center was not wise in the current economic climate.

“You clearly want this project,” one said. “Do the taxpayers need it and, more specifically, do they need it right now?”

Councilman Chet VanFossen responded by saying that taxes would not be raised because of the project. He said he did not believe Holly Springs’ debt was excessive. He cited the town’s abundant infrastructure – drinking water and wastewater treatment capacity – which he said town leaders focused on because they did not want to be dependent on purchasing those capacities from another municipality that could tell Holly Springs “what to do.” Part of the town’s current debt is in those infrastructure projects.

“I don’t care what they (Apex, Cary, Fuquay) did,” VanFossen said. “I care about what Holly Springs is doing and what we’re doing for Holly Springs.”

“We’ve tried to give you all the information you needed to make a decision,” Dean said. “We’ve been dragging this horse for about 10 years trying to get to this point.”

He said that in five years, costs for renovating the center increased by about $2 million. And, he said that because of the current economic climate, the town is saving about $1 million on the cost for the current community center project.

Dean said comparing Holly Springs with other municipalities was “a little unfair … if you look at where we’ve come from.”

He said that the debt the town has incurred has improved the quality of life.

“I know where we came from since 1990 and before that time where we made it well enough for you people who’s moved in here,” said Councilman Parrish Womble.

Womble said he was concerned about demolishing the existing community center.

“I have mixed emotions,” he said. “The people who’ve moved here don’t realize the historical things that are there, and every time you look they want to tear down something. … But on the other hand, we need a place for our kids and for people to enjoy.”

“I was one of those people who moved here 15 years ago,” Councilman Hank Dickson said. “All I’ve heard over the years is we need this center.”

Dickson said the center was needed especially with the current economic climate. As people no longer spend money for expensive vacations and gym memberships, he said, people need a local community center with affordable membership and programs.

“The problem is right now we have a very dreary building that people probably just don’t want to go to,” he said.

Dickson also cited surveys that showed residents’ desires for a community facility “exactly like what we’re proposing.”

VanFossen agreed with the need for the project and said that the community center would benefit the community from an economic development and quality of life standpoints.

“This project also is going to be a positive cash flow project in the not-too-distant future,” he said. Other meeting business

The council approved a $20,000 project budget for grant-funded sidewalks. The project will construct sidewalks along portions of Earp and Raleigh streets and on Holly Springs Rd. near Cayman Ave. in a gap in the existing sidewalk.

At the meeting, staff discussed an impending update on the town’s comprehensive plan. Staff said the plan, which was adopted two years ago, is working. Considering a possible increase in lake size to allow for additional reactors at the Progress Energy nuclear site will be included as part of the project. The updated plan is to come before the council for a public hearing Nov. 17.

As part of its consent agenda, the council set a public hearing as part of deliberations about closing a portion of Quantum Dr. The road would be realigned to increase parking near the school building, staff said.

The council also entered into a $4,000 contract for construction materials testing for Main St. enhancements and a $1,635 contract for tree preservation work at the Methodist Church downtown parking lot project. The council adopted a budget amendment to accept $6,885 in insurance proceeds for lightning damage to an irrigation system booster pump at Holly Springs High School. Councilman Tim Sack was absent from the meeting.