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By the Creating the Commons finance sub-committee · August 2026

Four needs.
Four opportunities.
Here is the money.

A look at the financial implications for a library, a senior center, a city hall and a cultural center. Every number on the following pages comes from an invoice, an adopted budget line, or a model you can move yourself.

No site decision has been made. This is analysis for the Council and the public, not a recommendation of record.

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Four problems as one system — one commons

Each of these is difficult to fund on its own. Together they can be financed.

Library

10,000 sq ft today, and every study recommends roughly double that. On its own: a $24–34M rebuild serving one need.

Senior Center

Programs run across four addresses. On its own: a fundraising campaign and a relocation, likely outside the city.

City Hall

Space is tight, and most staff already work out of Public Works. On its own: a similar capital cost, with no rent to help carry it.

Cultural Center

In the flood zone, with $555,000 of flood and ADA work already adopted. Further flooding remains likely.

Sources: Sonoma County Library Facilities Master Plan (Nov 2023); City Ad Hoc report (May 2024); FY 2026-27 Adopted Budget, CIP 0714-26.03.

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Every other site we looked at

Five sites were studied before the shortlist. Here is what each offered, and why it did not move forward.

SiteWhat it wasWhy it did not move forward
Rite Aid
218 N Main
Downtown adaptive reuse, 15–20,000 sq ftEither $10M to buy or an estimated $40,000 a month to rent — and a build-out of $5–10M on top of either route. Another buyer moved first.
Calder Creek
or the High Street lot
City-owned property. Downtown civic commons with creek daylightingBrownfield, with large CEQA and environmental concerns, Laguna flooding, and the Coastal Commission in the frame. It also carries the highest civic impact of any option studied, with creek corridors and a creek restoration already under way, which would be a real benefit to the city. Ranges from $40M to $60M, and the longest entitlement path in the study.
Railroad ForestNew construction, ~45,000 sq ft~$25M green-field build, with Laguna flooding, environmental impact and traffic flow all unresolved. A strong option, though slower and more expensive than buying an existing building.
Tow site
332 Petaluma Ave
3,700 sq ft adaptive reuse$1.5M to acquire, but it needs $3–4M minimum in improvements and possibly more — roughly $5M all in, for about a tenth of the space needed. It remains the lowest-cost option, and is best suited as an interim step.
Youth AnnexCity-owned parcelKept for youth programmes. Not treated as saleable or rentable.

Sources: Building the Commons site evaluations 2026; committee comparison matrix. Prices as documented at the time of evaluation and not re-verified since.

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Option one

Wait and see

Strengths
  • No capital decision required this year.
  • No site controversy.
  • Nothing is disrupted.
Weaknesses
  • The library stays half the recommended size, indefinitely.
  • Four insurance policies, four utility accounts, four maintenance backlogs.
  • The Senior Center continues paying rent without building equity.
Opportunities
  • Pursue grants building by building.
  • Repair each building as needs arise.
Threats
  • One more flood past FEMA's threshold and the Cultural Center must meet full floodplain compliance before any repair.
  • Escalation has already added about $9M to a library rebuild since 2019.
  • Grant windows may close in the meantime.

Waiting carries its own cost. The next page sets it out.

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What standing still costs

Every line is a paid invoice or an adopted budget item. Nothing here is an estimate.

Sheet total, three city buildings$279,660
− Personnel (follows the people, not the buildings)−$82,642
= Facility cost, three buildings$138,718
+ Library maintenance+$11,000
Every year, to change nothing$149,718

Personnel is excluded on purpose. Staff costs follow the people, so a move would not save them. Leaving them out makes the do-nothing total lower, not higher.

The Cultural Center's $58,300 contribution to operations has been struck from this table. It has not been confirmed as facility-linked rather than programme funding, so it is left out until it can be sourced.

Ten years of it

$2.47M

On invoices and adopted CIP alone. $2.91M if the capital allowance is carried.

At the end of ten years, the city still owns the same four buildings.

Year two alone carries the Cultural Center's adopted $555,000 flood and ADA project. Operating costs escalate 4.5% a year.

Operating costs would not fall to zero at O'Reilly. One roof instead of four makes them smaller, not absent: utilities, insurance, cleaning and repair continue, and deferred maintenance and the adopted CIP follow the services wherever they sit. What this table measures is the difference between the two, and that difference is narrower than the $149,718 total suggests on its own. Timing matters as well. Construction costs rise each year, so the same project generally costs more built later than built sooner.

Sources: FY24-25 paid invoices, three city buildings; FY 2026-27 Adopted Budget facility detail; CIP 0714-26.03. Ten-year totals recomputed after the $58,300 line was removed, on the same escalation basis as the earlier draft.

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Option two

Rebuild downtown

Strengths
  • Keeps the library in the core, which the community has consistently asked for.
  • A real feasibility study already exists.
  • A donor base already exists.
Weaknesses
  • Solves one of the four needs.
  • No rental income and no tax increment to help carry it.
  • Several years of construction on an occupied site.
Opportunities
  • State Library construction programmes.
  • A capital campaign with twenty years of goodwill behind it.
Threats
  • Parking on that block is unpriced and unresolved.
  • Escalation keeps running while the money is raised.
  • About $2.0M a year of debt service, competing with other General Fund priorities.
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The LANTERN estimate, and what it buys today

Alameida Architecture, May 2019 — the only fully costed library scheme anywhere in the record.

2019 estimatethe LANTERN scheme as drawn$25.1M
Honest range, lowphased or partial completion$24M
Honest range, highfull scheme, escalated to 2026$34M

We budget $24M. The range is $24M to $34M, and the spread reflects how much of the 2019 scheme gets built rather than uncertainty about prices. Carrying $24M splits the difference on completion and gives the City a figure it can plan against.

Why the top moved. Bay Area construction escalation ran 6–10% a year through 2021–23. Comparables: Half Moon Bay, 22,000 sq ft for $36M in 2018. Walnut Creek, 30,250 sq ft for $33M in 2012. Santa Cruz's downtown branch is the closest current regional comparable, and a sourced figure should be added here before it is quoted.

What $25.1M bought: 21,600 sq ft over two storeys — a net gain of 11,600. Expanded reading room, children's and teen zones, meeting rooms, staff areas, rooftop solar, new steel frame. $1,164 per square foot, all in.

Parking.

No parking count and no parking cost appears in the 2019 study, or in any City document for this site. The committee's site review recorded parking on this block as a crisis.

Also not included, and each one unpriced

  • Interim library space through several years of construction.
  • CEQA, public bidding and prevailing wage.
  • The Senior Center, City Hall and Cultural Center, which are three of the four needs.

Two questions for the committee: does the 2019 scheme still meet parking requirements, and how is that work funded?

Verify the LANTERN costs. This is an action item for the committee. The May 2019 Alameida estimate is the only fully costed library scheme in the record, and it has not been re-priced since — neither the scope, the unit rates, nor the escalation applied here. Before any figure on this page is carried into a budget, a cost estimator should re-base the estimate against current bid results.

Plan D

A partial rebuild

Refurbish and partially expand the existing library rather than replace it. It has not been costed anywhere in the record. It is also the option most likely to bring a rebuild within the $24M budget, so it deserves a place alongside the three above, and a real estimate.

Source: Alameida Architecture, Expansion Feasibility Study (May 2019) — $25,142,400 over 21,600 SF. Escalation band from Bay Area cost index history 2019–2026. The $24M–$34M range is the sub-committee's own working band, not a figure from the 2019 study.

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Option three

Buy the O'Reilly campus

Strengths
  • One purchase houses all four needs.
  • Rental income carries a large portion of the loan from year one.
  • Built in 2001 — occupiable almost immediately.
Weaknesses
  • It is not downtown. Walking, biking and transit access from the core are weaker.
  • Transit and the corridor would need upgrading to serve the site well, which is a capital cost in its own right.
  • Roof replacement is a near-term cost.
  • The city takes on the responsibilities of a commercial landlord.
Opportunities
  • The tax increment district — now formed — retires the debt years early.
  • Selling City Hall puts that site back on the tax roll.
  • Grant-eligible resilience upgrades.
Threats
  • Tax-exempt borrowing limits private business use to roughly 10%, and leasing 40,000 sq ft may exceed it. Bond counsel has not yet ruled.
  • The rent assumption has no written broker opinion behind it.
  • The opportunity depends on a willing seller at current pricing.
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What a square foot costs

All-in cost divided by the finished square footage each option delivers. Lower is better.

O'Reilly campus90,258 sq ft confirmed · $12–23M $133–$255/sf
Rebuild downtowncommittee basis · 20–30,000 sq ft $433–$1,000/sf
LANTERN scheme, all-inAlameida 2019 · 21,600 sq ft $1,164/sf

Buying a building that already exists is cheaper per square foot than building a new one, because the concrete, steel, roof, wiring and parking lot were paid for in 2001.

Sources: LoopNet listings for 1003, 1005 and 1007 Gravenstein Hwy N; Keegan & Coppin brochure; Alameida Architecture (2019). The downtown range is the committee's construction-cost basis; the LANTERN row is the study's own all-in basis — they are not the same measure and are shown separately for that reason.

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How long until the doors open

From a Council decision to people walking in.

Buy the O'Reilly campus20 months
Rebuild downtown5–8 years
Wait and seeno end date

A rebuild finishes somewhere between 2031 and 2034. The O'Reilly option opens in 2028.
That difference of three to six years matters to the residents waiting to use these services.

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O'Reilly — move the levers

Rent and increment set against what the loan costs each year. Every setting below is an assumption, not a commitment.

All-in project cost — $18.0M
Leased area — 40,000 sq ft
44% of the 90,258 sq ft campus
Rent — $1.75 per sq ft per month
$655,200 net in year one
Gifts, grants & campaign — $3.0M
Amount borrowed
$11.0M
Yearly payment
$666,594
Year-one shortfall
$0
Loan cleared
Year 15
Rent from leased space EIFD increment Still to cover Yearly payment

Loan: IBank ISRF 4.39%, 30 years, level payment with every surplus dollar applied to principal. Rent income is the leased area times the rate set above, less 22% for vacancy and operating cost, rising 2.5% a year. Both are sliders: the default is 40,000 sq ft of the 90,258 sq ft campus at $1.75, which is $840,000 gross and $655,200 net in year one. The rate is a placeholder pending a written broker opinion, and either slider can go to zero. The private-use line is the one to watch. Tax-exempt borrowing allows roughly 10% private business use — about 9,000 sq ft here — and the default lease is more than four times that. Space is a rule of thumb rather than the legal test, which turns on the financed portion and the revenue from it, and bond counsel has not ruled. If the borrowing has to be taxable the rate rises and every figure on this page moves with it. Year 1 = FY2028-29.

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Three levers, three outcomes

The same model at three settings. These follow the sliders on the previous page.

All three start from the same base: an all-in cost of $18.0M, $11.0M borrowed, and $666,594 a year in debt service at the current settings. Each lever moves from that same starting point, so the columns below are directly comparable.

The first two levers change what the city borrows. The third changes when the debt ends.

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The district passed. The question is where the increment goes

Rent covers the payments. The increment can retire the debt early, if it is directed here.

Rent alone, increment used elsewhere

FY2048-49

Loan cleared in year 21. Interest paid: $6.7M.

Rent covers the scheduled payment and little more. The loan runs most of its full term.

Rent plus the increment, redeployed here

FY2042-43

Loan cleared in year 15. Interest paid: $4.7M.

The increment saves $2.0M in interest, and continues producing revenue after the debt is retired.

What the district can and cannot do. It cannot buy the building, because it does not accumulate $18M quickly enough. What it does well is repayment: rent carries the early years while the increment is still small, and the increment then retires the debt early. Formation is already complete, so the question before the committee is where the increment is directed — to the Commons, or to other priorities. These two boxes follow the sliders on page 11.

EIFD increment reconstructed from the district model's published anchors. At the default settings this reproduces the analysis of record — year 15 with the increment redeployed here, year 21 without. An earlier draft quoted year 17 and year 27; those figures came from a 1%-a-year rent escalation rather than the 2.5% used here and throughout this page.

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Downtown — move the same levers

Ticking a box with no figure behind it does not change the total. The chart shows where those gaps are.

Escalation 2019 → 2026 — +25%
Further years to a start — 0 years

Moves it up

Moves it down

All-in project cost
$32.0M
Yearly debt service
$1,963,486
2019 estimate Adds to the cost Takes it away Ticked, no figure entered

The budget basis. The sub-committee carries $24M as the budgeted number for a downtown library rebuild, against an honest range of $24M–$34M — see page 7. The model above opens at +25% escalation with the adopted Cultural Center line ticked, which lands at about $32M. That is the figure the side-by-side on the next page uses, so the comparison with an $18M O'Reilly refurbish is like for like.

One line that cannot be ticked. Rental income: $0 — a 21,600 sq ft library has no leasable space; the whole building is the library.

Base: Alameida Architecture (May 2019), $25,142,400. Cultural Center figure is adopted CIP 0714-26.03. Debt service at 4.5% over 30 years. Items shown unpriced have no figure in any City, County or consultant document reviewed — they are named rather than estimated, and shown in gold on the chart so that a ticked box with no figure stays visible.

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Side by side

Apples to apples: a downtown rebuild at about $32M against an O'Reilly refurbish at about $18M. Both models sit at whatever you have set them to — move the levers on page 11 or 14 and these move with them.

O'Reilly campusRebuild downtown

What $10M would buy

O'Reilly 50,143 sq ft
Downtown 6,261 sq ft

These are not the same measure and should not be quoted as if they were. The O'Reilly rate is the cost of buying a finished building constructed in 2001. The downtown rate is the cost of designing and building new space today. The difference between them is real and worth making, provided it is described that way.

O'Reilly: $666,594 a year, with rent carrying a large portion of it and the increment retiring the debt early, and all four needs addressed.
Downtown: $1,963,486 a year from the General Fund, with no rent line and no increment, and three of the four needs still to address.

O'Reilly square footage is the confirmed campus total of 90,258 sq ft. Downtown is the 21,600 sq ft of the Alameida scheme. Rent of $1.75/sq ft/month remains a placeholder pending a written broker opinion, and the private-use question on tax-exempt debt remains unresolved — both would change the O'Reilly column.

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What we still do not know

Open, and material

  • The rent. $1.75 a square foot is a placeholder. A written broker opinion has not been obtained, and every O'Reilly figure here rests on it.
  • Private use and tax-exempt debt. Leasing 40,000 sq ft may breach the 10% private-business-use limit and make the borrowing taxable. Bond counsel has not ruled.
  • Parking downtown. Unpriced, on a block the committee's site review called a parking crisis.
  • The LANTERN costs. Unverified since May 2019. The $24M–$34M range rests on an estimate that has not been re-priced.
  • Plan D. A partial rebuild has not been costed, and it may be the most direct route to a $24M budget.

What would settle them

  • A broker opinion of rent, in writing.
  • A bond counsel memo on private use.
  • A cost estimator's re-basing of the 2019 library estimate, and a first number for the partial rebuild.
  • A measured floor plan before any partner is promised a room.
  • Surplus Land Act review before any city property is disposed of.

No site decision has been made. The committee recommendation is due September 15.

Creating the Commons finance sub-committee · August 2026. Every figure on these pages traces to a named source or is marked as an assumption you can move yourself.

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A note on geography

Sebastopol is a linear city

Every argument on the pages above assumes a shape for this town. It is worth setting out what that shape is, because it affects what we mean by downtown.

One street, end to end

Sebastopol is not built around a square. It is built along a line. Highway 116 comes in from the north as Gravenstein Highway, becomes Main Street through the middle of town, and leaves to the south as Petaluma Avenue. Bodega Avenue — Highway 12 — crosses it and runs west into the county and on to the coast. Almost everything this town does happens within a few hundred feet of one of those two roads.

What we call downtown is a node on that line: the busiest one, with the most frontage and the most history. It is not the geometric centre of the town, and the street layout does not radiate from it.

Every one of the nine sites on the map below sits on the spine, or within a block of it. No shortlist could have done otherwise, because the corridor is where the town is.

What that means for this decision

First, distance here is measured along the corridor, not as a radius. The choice is not between downtown and somewhere else. It is between two points on the same road, about 1.1 miles apart.

Second, the library's catchment is not the downtown blocks. It is west county, and west county arrives along Bodega Avenue. For most of the people who use it, the trip is already a drive down Highway 12 — either way.

Third, and in tension with the first two: linear does not mean walkable. A mile along the spine is a short drive but a long walk, and the pedestrian and cycling experience on that stretch is the weakest part of the corridor. Improving it is a capital cost the City carries whichever site it chooses, and it is listed in the weaknesses on page 8.

Laguna de Santa Rosa Downtown a node on the line, not a centre ← Bodega Ave · Hwy 12 to west county and the coast ↑ Gravenstein Hwy N · Hwy 116 to Forestville, Guerneville, the river Petaluma Ave · Gravenstein Hwy S ↓ to Cotati and Petaluma about 1.1 miles 1 mile N 1 2 3 4 5 6 7 8 9 O'Reilly campus

1 O'Reilly campus — the leading option   2 Library & City Hall   3 Senior Center, 167 N High

4 The Legacy craft store   5 Cultural Center, 390 Morris   6 Rite Aid — ruled out

7 Calder Creek   8 Railroad Forest   9 Tow site, 332 Petaluma

Distances computed from geocoded coordinates. The map is schematic and roughly to scale. It is not a survey, and the road geometry is simplified to show the corridor and where each option sits on it. Creating the Commons finance sub-committee · August 2026.