As Dickson City Center Construction Begins, Here’s What the City Approved to Pay for It

DICKSON, Tenn. — With ground now broken on Dickson's new City Center and construction activity becoming increasingly visible downtown, the size and cost of the project are drawing renewed attention from residents.

What is being built? How much will it cost? And how is the city paying for it?

Some of those answers were put into place weeks before the groundbreaking, when the Dickson City Council approved nearly $39 million as the maximum construction price for the City Center and took the steps necessary to finance the project through general obligation bonds.

At its Aug. 3 meeting, the council approved a guaranteed maximum price of $38,723,075 for construction of the City Center.

During that same meeting, the council moved forward with the first $40 million bond issue, which city officials said would be devoted entirely to the City Center project.

Those actions provide important context now that the project has moved from plans and council discussions to an active construction site.

City Authorized Up to $80 Million in Bonds

One number that can create confusion is the $80 million included in the city's bond authorization.

That does not mean the City Center itself has an $80 million construction price.

The council approved an initial resolution authorizing the city to issue up to $80 million in general obligation bonds, but City Administrator Dave Travis told council members that the first $40 million would be for the City Center.

“This first issue, this $40 million will be for the City Center,” Travis said during the Aug. 3 meeting.

When a council member asked whether the entire $40 million would go toward the project, Travis answered yes.

City officials said additional bond series — potentially two more — could be considered later to finance other projects if the city decides to move forward with them.

The distinction is important: $80 million was the broader borrowing authorization, while $40 million was identified for the initial City Center financing.

Construction Price Set at $38.7 Million

The council also approved the project's guaranteed maximum price during the August meeting.

The figure approved was $38,723,075.

A guaranteed maximum price generally establishes the maximum amount under the construction agreement, subject to the terms of that agreement and any subsequently approved changes.

That figure puts the approved construction price just under the amount of the first $40 million bond issue.

Steel Orders Were Already a Concern

Even before the groundbreaking, city officials were attempting to move parts of the project forward because of concerns about construction lead times.

Travis told the council in August that steel mills were experiencing long delays.

The city therefore wanted design work associated with the steel package completed quickly enough to begin moving those orders forward.

“To speed the process up, they jumped on this a little quicker,” Travis told the council.

That discussion offers some context for residents who are now watching work take place at the site: preparations for construction were underway well before the ceremonial groundbreaking.

Residents Had Opportunity to Challenge Bond Issue

The city's decision to finance the project through general obligation bonds also included a public process.

When the council approved its initial bond resolution Aug. 3, officials explained that the resolution would be published and residents would have 20 days to petition for a referendum.

For a referendum to be triggered, a petition would have needed signatures from at least 10% of the city's registered voters, based on the number registered on the date of publication.

At the August meeting, officials anticipated an Aug. 25 deadline for such a petition.

That window has since passed.

One Resident Questioned the Debt

Questions about the City Center's price were already being raised publicly before construction began.

During public comment at the Aug. 3 meeting, Dickson resident Trace Edmonson spoke against the city's plans, arguing that the project would leave the city with substantial debt.

Edmonson questioned whether the City Center would provide enough financial benefit to justify its cost and expressed concern about the possibility of higher taxes in the future.

No tax increase specifically tied to the City Center was proposed or approved at that meeting.

Edmonson also argued that city resources could instead be directed toward projects such as sidewalks, parks and other improvements residents could use throughout the community.

“This building is just going to be a big debt for people in the future,” Edmonson told council members.

Despite those concerns, the City Center financing resolutions and guaranteed maximum price moved forward.

From Council Documents to Construction Site

For months, much of the discussion surrounding the City Center involved architectural plans, zoning decisions, contracts, financing resolutions and numbers on council agendas.

That has now changed.

With the groundbreaking complete and work underway, residents can see the project taking shape — and the questions surrounding its size, design and cost are no longer attached to a hypothetical building.