HOLLIDAYSBURG - Hollidaysburg Borough may become the financial guarantor for the Hollidaysburg Area Public Library.
Last spring, the borough co-signed with t he library for a $575,000 grant from the state's Keystone Recreation, Park and Conservation Fund. The grant is for the construction of a new library at One Furnace Road, near the Hollidaysburg Area Senior High School.
"Once they sign the construction contact, there is no question that [the borough] would be obligated to make sure there is enough money to finish the project," Borough solicitor Nathan Karn said Friday. "If the library is having trouble maintaining funding to keep it open, the borough will be obligated to provide funding to keep it open."
The grant application was submitted last spring and the borough co-signed it, library Director Janet Eldred said.
In January, the library was notified that it had been conditionally approved for the grant, pending receipt of a "few more details - just updated items from the previous application," Eldred said.
On Thursday, the council voted unanimously to sign off on those items so that the library could proceed with the grant.
Councilmen John Brenner and Michael McLanahan both questioned library board President Joe Keller on the borough's obligation as a co-signer.
"Does the borough become responsible for the ongoing functions of the library?" Brenner asked. "If you can't pay for ... whatever, is the borough responsible?"
That would be the case, Keller said.
"But we don't feel there is a very high probability of that," Keller said.
The new library is projected to cost a total of $3.7 million.
The first phase will cost $2.8 million, and the library has $2.2 million secured. The second phase will cost $900,000; $250,000 is already pledged toward that work.
McLanahan said he was concerned that the borough could be responsible for the remainder of the funding, if the library can't raise the money.
"The borough runs an extremely tight budget," he said. "We haven't had a tax increase in six years. I see real problems if we give the go-ahead and the library can't come up with all of the money. There are too many 'hope fors' and not enough facts that could spell an increase for the taxpayers."
Keller said the project presents a "minimal risk" for the borough because the library would not proceed with construction until all the funds are secured.
"The worst case scenario is that we would not award the contract," he said.
The borough is only obligated if the construction contract is signed, Karn said. After the grant is awarded, the library has three months to spend the money and one year to complete the construction.
"If they don't sign the contract with the contractor and time expires, then you just return the money," he said. "The chances of applying in the future and getting [the same grant], are not very good, but there doesn't appear to be any penalty."
The library hopes to have the architect's drawings of the new library by May 2, Keller said. The new facility will be 15,770 square feet and house more than 70,000 books, audio books, movies and periodicals. There will be quiet reading and study areas as well as space for children and teens and community meetings, Eldred said.
Eldred said the library has experienced tremendous growth in recent years - a 50 percent increase in circulation, a 30 percent increase in program participation and a 187 percent increase in the use of public computers.
"Libraries always seem to do well in down times," she said.
During last year's state budget crisis, library funding was cut 20 percent, but Eldred said the library is still open 54 hours a week and hasn't reduced its staff. She said there "isn't a chance" that the borough would become financially responsible for the library.
"We've reiterated that we plan to have all money in place before we start building," she said.
Mirror Staff Writer Ashley Gurbal is at 946-7435.
