Historic Reflections 2015

F unders - M oments of C risis On top of these challenges, the funders expressed concern and asked for a meeting with Gil Bernardino and Sarah Brewster at their headquarters in Manhattan. They indicated their doubts about Círculo’s ability to go forward with the project due to the contamination issue and delays. Construction costs were rising and they had questions about the viability of the project. The agency at this time was approximately $1,500,000 in debt. The funders asked Gil and Sarah to stop the project. The funders controlled the distribution of funds and told Gil and Sarah that they would not continue to finance the project. They wanted Círculo to pay back funds it had already expended and to walk away from the project. Gil answered, “no, we will build the Center” even though he mentioned later that his legs were shaking like a “Spanish flan.” This was a very dark and difficult moment. After coming so far, it seemed that the Center was not going to be a reality with unprecedented consequences not only for the project but also for the survival of the organization. Gil Bernardino, Sarah Brewster, the architects and contractors met to review the budget. They worked to reduce the scope of the project, stripping the budget as much as they could so that there were sufficient funds to finish the project, account for project delays, pay the architects to redesign a smaller building with less features while also providing time for Círculo to implement its business plan and pay back the loan, avoiding bankruptcy. Círculo worked to reduce expenses from the project fund to account for the cost of the vapor protection system, soil remediation, architectural costs for redesigning the plans after value engineering and other costs. Plans for items such as the geothermal system, an elevator with a rooftop deck and gallery area, culinary training centers in the lower level of the building and steel supporting a green plant based roof and solar panels among other items were removed. Square footage of the building was also reduced. Círculo presented a proposal to the funders, showing a building that was reduced in size and scope, giving the funders the confidence they needed to ensure that the building could be constructed. Círculo also had to demonstrate to the funders that even though the building was reduced in concept, it still had a viable business plan that would ensure that the loan could be paid. An additional significant challenge impacting these negotiations was that a guaranteed maximum price, or GMP, had still not been issued for the construction on the center. This was originally to be issued in the summer of 2007 but delays because of site contamination affected this from occurring. It was a tense time for all and the potential was that the project would collapse. The funders did not want to issue more payments and construction would not continue without guarantees that payment would continue. After intense negotiations, Círculo, the funders and the Town of Hempstead IDA agreed to modify loan documents to reflect needed changes ensuring that the project could continue. The end result was that Círculo received approvals from the funders to continue to the project. N ew V ision for the C enter The new vision for the Center was drastically different from the original. Gone were the architectural effects showing window boxes and designs with Spanish flair. Square footage, windows, elevators to the roof, a roof top gallery and deck, materials and other items were eliminated from the building. Círculo was only able to complete classrooms on the first floor. The second floor had one small finished room, the rest was unfinished space left as storage. The lower level was also left as unfinished space. Kitchen items including stoves, sinks, and preparation areas were reduced to ensure that there were funds to complete the building and allow for sufficient time to pay the loan during construction. While Círculo was happy to move forward with the project, the new Center was very different from

Contamination at the Center 2008 2008 was fraught with many challenges for the agency and its programs . Círculo had contracted with several companies to do environmental testing throughout the ten years leading up to the ground breaking. Phase I and Phase II environment analysis were done which consisted of soil borings and testing. Despite these borings, nothing was found and so Círculo staff was not prepared when parts of cars and other materials were discovered on the site in 2007 and 2008. As the building was planned as a Green Center, all construction plans stopped while remediation and testing occurred. Fortunately none of the contamination was classified as hazardous which would have had deadly consequences for Círculo’s project. However at the same time, the agency found that the level of gases underground was fluctuating on account of a gas plume spill, some fifteen to twenty years earlier. In consultation with engineers, architects and specialists on the project, Círculo decided to wrap the building to prevent against future contamination from vapors that could occur as the plume moved its way underground through Hempstead. As a result, construction stopped and planning occurred how to best protect the building and structure. A system called liquid boot was proposed to wrap the building and protect against any future potential vapor contamination. Círculo faced considerable financial strain during this time as the agency was expected to start repaying the loan in 2009. Delays meant that Círculo could not open the building on time and would not be able to implement programming that was part of its business plan for paying back the loan. While money was tight, the agency had to make important decisions to keep the project moving forward. That fall Círculo waited for County inspectors to finish needed observations in order for work to resume. Inspections scheduled for October were delayed until November due to illness by County inspectors who scheduled and rescheduled inspections with Círculo’s contractors. Work could not proceed until inspections were passed. Círculo waited impatiently through October and into November for inspections to take place. Meanwhile, the temperature dropped. The changing weather meant that concrete could not be poured and this meant more delays. Finally inspectors came in November. Círculo could not afford to wait until the spring for the weather to get warmer and so it had to take an additional $20,000 from its project fund to rent heaters and tents to cover the areas where concrete needed to be poured so the project could move forward. It was a painful knowing that delayed inspections, caused forwhatever reason, cost the agencyover $20,000. Thiswas ahuge sacrificebut it kept theproject moving forward.

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