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Osborne Construction will build City of Kodiak’s new fire station for $24 million

A rendering of Kodiak's new fire station on Mill Bay Road, created by Wolf Architecture.
Wolf Architecture
A rendering of Kodiak's new fire station on Mill Bay Road, created by Wolf Architecture.

Construction can now begin on Kodiak’s new fire station after the City Council approved a contract with Osborne Construction Company on Thursday night, April 11. The company, which has offices in Alaska and Washington state, is slated to break ground on the project on Mill Bay Road as soon as the i’s are dotted and the t’s are crossed.

Osborne Construction proposed a firm fixed price at the end of February of $24.3 million to construct the city’s new fire station. That means regardless of the cost of materials or other factors that might change during construction, the company won’t bill the city for more than that amount.

The council’s longest serving member currently on the City Council, Charles Davidson, noted this project has been a priority for years.

“And it’s a fixed fee so hopefully we’ll be getting it at that price,” Davidson said. “I mean that seems like an awful lot of money for a small town like ours. But it’s a critical service when you consider our geographic location and safety that this is going to propose to our community that we don’t presently have.”

Deputy City Manager Josie Banke shared a breakdown of the cost of the fire station during Thursday’s meeting. She said the city will pay $2,384,810 to fully fund the multi-million-dollar construction project.

“We are recommending the use of earned interest on bank accounts over the past year to fund construction and believe this is an effective reinvestment strategy in our fire and EMS heroes to ensure they have a modern, safe and mission ready facility,” Banke explained.

Councilmembers unanimously agreed with Banke’s funding strategy and authorized the $2,384,810 to come out of the interest earned from the city’s operating investment accounts.

The rest of the money is coming from State of Alaska legislative grants, federal funds from the United States Department of Agriculture (USDA), and transfers the city already made out of its general fund. The City has received $15,076,755.61 in legislative grants from the State of Alaska and as of Feb. 29, 2024, the balance left in the grant is approximately $13,385,571.92. The Federal Grant award of $7 million received from USDA in March of 2024 increased the total grant awards to $22,076,755.61.

Councilmember John Whiddon said this is a huge accomplishment for the city to undertake this project with a debt-free plan.

“But this is a legacy project, for the council and for the community. This is a project that’s actually going to be a hallmark, and I believe it’s also going to be a community center for our community,” Whiddon stated.

Wolf Architecture is working on the final design phase and will be involved in the construction process to ensure the design becomes reality. A change order was passed by the council Thursday night, that came from Wolf Architecture, requesting the City Council modify the existing agreement by $385,560.

According to the contract with Osborne Construction, the company has 20 days to issue a notice to proceed, which will include a date for work to begin. It’s estimated that a substantial amount of the construction of the City of Kodiak’s new fire station will be complete by the end of 2025.