La Vista will not join with Papillion to build a joint public works complex after a study determined minimal savings would result.
Papillion is still committed to building an $8 million public works building at Portal Road and Hupp Drive, which would replace its aging West Second Street facility.
But the city will build without La Vista, where officials are hesitant to take on millions of dollars in new debt.
The cities agreed last spring to commission a study on a joint public works facility.
The land Papillion bought for the site is across the street from La Vista's current public works building. The two would not merge public works departments, just share office and storage space.
The study, which cost $18,000, found that if La Vista opted in, the city would take on large capital costs that would not be offset by major savings down the line.
The two cities would save more money by merging departments or sharing more services in the future, with La Vista projected to save $13.9 million over the next 25 years if the cities combined public works staff and operations.
The report estimated a joint facility would cost $16 million — $8.6 million for Papillion and $7.4 million for La Vista.
It would cost La Vista about $6.3 million to build its own new building, so the city would actually spend an additional $1 million by joining forces with Papillion.
Joint construction would save Papillion about $2 million in capital costs.
The report noted that a new building could allow La Vista to save between $115,000 and $448,000 annually over the next five years on building maintenance and operations, but those savings would not cover the city's debt service payments.
“The savings doesn't offset the debt you'd incur to build that facility,” City Administrator Brenda Gunn told the council on Tuesday.
Mayor Doug Kindig said he told Papillion Mayor David Black that La Vista was pulling out and hoped there were no hard feelings.
“Black said it was worth looking at,” Kindig said.
Papillion is expected to pick a contractor for the job in October, with the hope of seeing the project completed by November 2014.