Meanwhile, some veterans who say that the county's reluctance tocontend with a fiscally red-hot construction market is pushing theretrofit even further behind, and pushing the costs up. Fremontofficials have negotiated a $3.25 million price tag with AlamedaCounty as part of the city's Redevelopment Agency merger. Butcounty officials told veterans last week that costs are expected tooutstrip that preliminary figure.

Alameda County project manager Charles Brown said that thoseincreasing costs might force cutbacks in the project. He describedthree potential construction scenarios to the veterans: theinitially planned overhaul, including kitchen remodeling and otherhistoric preservation, which he said now has a $1.2 million budgetshortfall; a middle-of-the-road compromise with some cutbacks butthat is still $263,000 over budget; and an overhaul that would meetthe planned budget but with major cutbacks.

Veterans responded angrily to the proposed cutbacks, saying theproject is progressing at too slow a pace. They are currentlymeeting at the Fremont Senior Center and in January should move toanother temporary facility pending the retrofit, city officialssay.