The project will be jointly funded by the MSBA and the Town of Andover. The Town’s base reimbursement rate for this project has been estimated by the MSBA to be in the range of 40 to 42 percent. The higher figure includes an incentive for a plan that incorporates energy efficiency and preventive maintenance. The final rate will be determined later in the process. However, because MSBA utilizes a set cost per square foot and only reimburses for spaces it has approved, the actual reimbursement rate is likely to be in the range of 25 to 30 percent.
With Bancroft, for example, the final construction cost was $49.5M; MSBA accepted $36M as eligible project costs and then reimbursed $15.8M. Thus, although we were approved for a reimbursement rate of 43.9 percent for Bancroft, the actual reimbursement rate was 31.9 percent.
MSBA makes several adjustments that affect the bottom-line reimbursement rate. For example, the estimated cost to build West Elementary is $599 per square foot, but MSBA will reimburse us at a rate of only about $350 per square foot. The town will also be required to fund any design elements that MSBA deems ineligible for reimbursement.