JAY – Selectmen voted Monday to hold a special town meeting on Tuesday, Dec. 4, to see if voters want to transfer $177,500 from the undesignated revenue fund to the building reserve account for the new town office project.

Selectmen also voted to send a letter of intent to Zachau Construction of Freeport to do the renovation work pending voter approval of the money transfer.

Zachau Construction was the low bidder of 10 for the project with its base bid coming in at $598,800.

The two lowest bidders were asked to see if they could find cost efficiencies and town employees worked to pare the cost down.

Zachau’s rebid came in at $540,720, still more than the $435,000 or so left in the reserve account to renovate the former Jay Family Restaurant in to a new town office/police station complex.

People voted 92-72 in January to buy the vacant restaurant and land for $270,000 and to take the money from the building reserve account of $729,000. Selectmen and Building Committee had hoped then that what remained in the account would cover the project. It was estimated prior to the vote that it would cost about $505,000 to do the renovations, with paving not factored in.

The building construction cost, including buying the building and land, will be about $839,720, said architect Craig Boone of Bunker & Savage in Augusta and a building committee member. That doesn’t include paving, generator, architect-engineer fees and contingency.

It would cost $50,000 for paving, $9,000 for a generator and $14,000 for a contingency fund.

Since the building renovation estimate 10 months ago, construction material prices have gone up.

With an unanticipated $100,000 or so coming from state revenue and interest gained on the account plus selling the current town office, the Building Committee believes the $177,500 could be recouped.

“This drives me insane. I thought we were going to use the building money in the reserve,” resident Judy Diaz said. “I think we need to tighten our belts.

“I agree,” resident Tom Goding said. “I think the town has to start living within its means.”

Building Committee member Mary Howes said the committee really worked to knock the price down as far as they could.

Howes’ husband, Tim DeMillo, also a Building Committee member, said that when voters approved the project it was known that estimate for renovations was more than what the town had in the reserve.

Selectman Amy Gould said the thing that bothers her is that basis of the vote to buy the building was to stay within the money they had.

“We have a lot of frustration,” Howes said. “We tried to convince you not to buy the building because we knew we did not have enough money but now that we’re going forward … we know it is never going to get any cheaper. You have so much invested in it.”

After voters approved the purchase in January, Building Committee members visited the building and became concerned about money. They went to selectmen but a verbal agreement had been made with the owner, Janet Diaz, and if the town didn’t buy the building, she wanted back the $20,000 she invested to have the restaurant gutted.

Boone said it would cost between $150 to $160 a square foot to build a new town office/police station and to renovate the future town office, it would cost about $102 a square foot.

Selectmen’s Chairman Bill Harlow said the board is disappointed that the renovation costs didn’t come closer to what the town had.

“We thought the estimate was on the high side, it turned out to be on the low side,” Harlow said.

“I feel if the board doesn’t approve the project, you’ll never have a project,” Resident Al Landry said.

Voters will make their decision at 7 p.m. Tuesday, Dec. 4, at the Jay Middle School cafeteria.