During the preparation of the current "Libraries for All" plan, these estimates were adjusted to account for recent and projected high rates of inflation in construction costs due to the current building boom in the central Puget Sound area. The "inflators" used for the latest figures were 4 percent in 1997, 7 percent in 1998 and 1999, 4 percent in 2000, and 3 percent thereafter. The new estimates were prepared by Rider, Hunt and Ackroyd, and their calculations and assumptions were independently reviewed by an expert from the Norman Company.

Neighborhood Library Estimates: Accounting for inflation to the year of completion for each facility, the total capital cost for the Neighborhood Libraries is projected to be $72,03 1,000. This total includes $6 million in an "Opportunity Fund" to be reserved for meeting additional or unforeseen neighborhood needs. This fund is also intended to focus new attention on underserved areas of the city.

Central Library Estimates: The final capital cost for the Central Library depends on which of three sites is selected and the timing of sale, if any, of the present downtown site. Accounting for inflation to 2002, the projected mid-point of construction, our analysis yields minimal financial variances among construction scenarios for the three final sites.

Costs will range between $155.4 million and $157.8 million for either the "Vance" or "Newslane" sites, assuming the present site is sold to the U.S. Government for a new Federal Courthouse, a range of about 2 percent. Developing either new site in tandem with a quick sale of the current site would compel the Central Library to incur the estimated $10 million cost of temporary relocation. This fact neutralizes the primary financial disadvantage of building a new library on the present site, i.e., the cost of a temporary relocation.

Total costs could be lowered to about $149.3 million if the Library elected to share space in a larger project on the "Newslane block", and remained open on the current site. Avoidance of temporary relocation, however, is partially offset by other costs, and this scenario yields only a 4 percent saving compared to building on the current site.

While a potential saving of almost $7 million is not insignificant, this analysis shows that "staying put" at a cost of $156.1 million is, in fact, one of the lower cost options available to the Library. Barring other factors, there are no overwhelming financial advantages to the competing alternatives.