DEWEY BEACH, Del. — Dewey Beach commissioners have selected Costello Construction as the potential contractor for both phases of the town’s public safety and town hall facility project. Costello’s base bid is $11.08 million, but officials are working to reduce costs through alternate deductions. Mayor Bill Stevens said the high bids were unexpected, but the council remains committed to funding the project without taxpayer contributions. Grants, state Bond Bill funds, and other state and county sources will cover the costs. The town does not have property taxes but may accept voluntary donations. The project is crucial, officials said, as the current police facility fails to meet accreditation standards and presents safety concerns. The 6,000-square-foot building, shared with town hall, lacks proper detainee separation, has inadequate holding cells, and poses security risks. A 2019 report deemed the facility “woefully inadequate.” The new three-story, Risk Category IV building will be four times larger and include separate holding cells, a secure sally port, a police garage, and expanded administrative space. It will also house an EMS station, alderman’s court, parking enforcement, and a multipurpose meeting room. Commissioners are negotiating contract terms with Costello, including a deadline to decide on Phase 2. If terms aren’t met or funds fall short, the bidding process will restart. A public meeting with Costello Construction is scheduled for 5 p.m., Friday, Feb. 14, at the Dewey Beach Lifesaving Station.