J&J Contractors had the winning bid of $4,786,000 for the new Avondale Youth and Family Development Center.
There is a $150,000 contingency set aside with the total project not to exceed $4,936,000.
There were five valid bids considered at the bid opening, officials said.
J&J Contractors is a Chattanooga firm.
Heidi Hefferlin, architect on the project, said the bids were a little higher than expected, but not unreasonably so.
The current center will be demolished and the new center built at the site.
The current Avondale YFD center was built in 1949 and is one of the city's smaller centers. The last major upgrade to Avondale YFD Center was nearly 16 years ago. Since that time, YFD staff has held numerous discussions with the community to discuss needed renovations and changes to the center, it was stated.
Mayor Andy Berke earlier said preliminary discussions with staff and community members have highlighted several priorities to include in the center, including official size Gymnasium with bleachers, a computer lab, a Library/Reading lab, multiple classrooms, a multipurpose room, full-sized kitchen, and office areas. Preliminary discussions for exterior improvements include larger softball fields on Wilcox Boulevard, improved parking areas, and an improved outdoor basketball court.
It had originally been hoped to have the center open by the end of 2017 when the project was announced in May 2016.
Mayor Berke put $6 million into the capital budget for the total project.