In a recent change of plans, the city of Madison may assume the construction of the downtown Central Library as a public works project.

Rachel Strauch-Nelson, spokesperson for Mayor Dave Cieslewicz, said the city is currently negotiating taking over the project from developer Fiore Companies, Inc.

Under the original plan, Fiore Co. and Irgens Development Partners were set to construct the core and shell of the library on the corner of Henry Street and West Washington Avenue, while the city would build the interior as a public works project, Strauch-Nelson said. The plan set construction costs at $21 million for the core and shell and $16 million for the interior.

Strauch-Nelson said the city’s takeover of the building of the entire library as a public works project would require a bidding process. If the city were to take on this project, the redevelopments could be bid as one, rather than two separate projects and this could mean savings for the city.

“As we looked at the project more and developed the idea further, it made sense to explore the idea of a public works project,” Strauch-Nelson said. “We could find some efficiencies and maybe some savings in the final cost of the project by integrating it into one bid. We hope it will be the best way to bring the project in on budget and find some efficiency.”

Once the bids have been made, Strauch-Nelson added, the city would evaluate what is best for the project.

Simplifying the bidding from two to one projects will also help the city as it applies for New Market Tax Credits, a federal program designed to assist community development projects.

“It will make our bid for New Market Tax Credits simpler so we think it will make our chances better,” Strauch-Nelson said.

She added the new plans could affect construction of the library, saying the bidding process may take more time than was originally anticipated. However, the city hopes to keep to the projected timeline, which had construction starting as early as late this year.

The library construction project was allotted $37 million as part of the 2010 capital budget, relying on $17 million in borrowing, $6 million from New Market Tax Credits, $4 million from sale of the existing library and $10 million from private contributions.

In addition to the library, the plan called for Fiore-Irgens to eventually develop the entire block to include a 250-room hotel, retail space and structured parking.

Regardless of whether the project moves forward as a public works project, the library is in need of improved facilities, Library Administrative Services Manager Mark Benno said.

“It was really exhaustively studied and the community really wants the library,” Benno said. “A lot of people came out for the public city council process in support of it. I can certainly say that the building we are currently in is either going to need major renovation or replacement.”