Historic Reflections 2015

Contamination at the Center

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.

unders

- M

oments of

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.

ision

for

the

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