Amended Strathmore contract gets green light despite cost increase

MONTAGUE — The Selectboard has authorized an amended contract for nearly $1.09 million for the design and bidding phase of the former Strathmore mill complex’s demolition, representing a significant increase from the original $197,700 agreement.

The amended contract is $890,850 higher than the cost outlined in the agreement that the town entered into with the Tighe & Bond engineering firm in August 2024. The need for a revised contract arose due to complicating factors related to a hydroelectric turbine inside Building 9 at the center of the 20 Canal St. mill complex.

Building 9 is privately owned by Eagle Creek Renewable Energy. Inside Building 9 is a hydroelectric turbine that, according to Eagle Creek Renewable Energy’s website, is a 937-kilowatt facility that shares the canal with FirstLight Hydro Generating Co. The turbine produces more than 2 million kilowatt-hours of energy in a typical year.

The Selectboard was first presented with this amended contract on Nov. 10. Selectboard Chair Matt Lord expressed his desire to wait to vote on the contract until the public had the chance to learn about the changes, and for the full board to be present.

At Monday’s meeting, Assistant Town Administrator Chris Nolan-Zeller was joined by Craig French, principal engineer and structural engineering manager with Tighe & Bond, to answer questions from the Selectboard.

Nolan-Zeller clarified the reason for the contract’s substantial cost increase.

“The scope has shifted, because as design work advanced, it became clear that demolition sequencing near Building 9 is going to require more detailed structural analysis and planning than had originally been anticipated,” he explained.

The cost for the design and engineering phase of the project will be funded through the overall $10 million budget, which includes $4.92 million from the U.S. Department of Environmental Protection and a $5 million earmark from the state Department of Conservation and Recreation.

Estimates for two demolition options presented to the Selectboard in February included $7 million to demolish 10 buildings at the complex and stabilize Building 9. The other option, just to demolish and completely rebuild Building 9, would cost $10 million — the total amount the town has available for redevelopment at the 1.3-acre riverfront property.

Additionally, the plan was to carry out the demolition of the buildings this fall. However, the delay in design and engineering extended this timeline into 2027.

The goal is to have the bulk of the design work done by Tighe & Bond throughout the winter, then tackle environmental permitting in spring 2026, followed by bidding in the summer. Starting in fall 2026, the goal is to begin demolition and site cleanup between then and fall 2027.

Although the cost of the design and engineering portion of the project exceeded what was originally budgeted, Nolan-Zeller said the demolition is still financially viable based on existing budgeted costs, which can be shifted as needed.

“The site restoration and improvements line item, we have determined is really easily able to be moved to a future phase of the project, especially when we don’t know to what extent the structures are going to be [demolished],” he explained. Referencing the sum of the site restoration and improvements line, he added, “It makes sense to repurpose this $752,000 toward removing however many hazardous structures that we can.”

The base bid presented in the contract estimated it would cost $6.6 million for the removal of Buildings 3, 5, 6, 7 and 8. Alternate bids were also presented, but adding these to the base bid would cost more than is available in the current $10 million budget.

On the high end of costs, Alternative Design 3, which includes the base bid for demolishing Buildings 3, 5, 6, 7 and 8, as well as additional fees to tear down Buildings 1, 2 and 11, would cost $13 million. This price tag includes demolition, costs for building retaining walls around Building 9, site work, code upgrades, construction and engineering.

Nolan-Zeller said he and Town Administrator Walter Ramsey have been seeking extra funding options to add more buildings to the demolition plan, having applied to the Federal Funds & Infrastructure Office within the state’s Executive Office for Administration and Finance to match the EPA grant.

Selectboard Vice Chair Richard Kuklewicz asked about the necessity of keeping alternate bids as part of the contract if they are unaffordable. Ramsey said the door should be left open if further funding is secured to add additional buildings beyond the base bid.

“This is definitely an atypical project, both in its complexities and the funding,” French said. “It’s definitely gonna be a complicated project, but … we’ve spent the better part of a year trying to figure out all the issues and pitfalls that we’re gonna come across.”

By the end of the discussion, the Selectboard voted unanimously to authorize the revised contract, with Lord thanking French, Nolan-Zeller and Ramsey for their continued work.