WATERTOWN, S.D.(KXLG)- It might be back to the drawing board on the City Hall renovation project of the former Wells Fargo building, or at least for some of it. The City Council will have to decide what needs to be potentially cut from the project.

Since the project received its first estimate, it is now projected to be overestimated by $2.3 million. State bid law allows negotiating a contract price when the low bid exceeds the engineer’s estimate.

The Council was recommended to reject all bids for the renovation and addition of the “New City Hall.”

City Engineer Justin Peterson explains more.

Peterson says they feel there is probably $1.4 million in cost adjustments which would negate the need for the Council to appropriate more funds to the project.

Councilman Paulsen had some comments on the project.

The City Council unanimously rejected all bids on the project.