Agenda - Council Work Session - 07/27/2010

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CITY COUNCIL WORK SESSION Topic Report: Discuss Former Municipal Center Site By: Kurt Ulrich, City Administrator Background: One of the strategic goals for the City in 2010 is to consider the sale of the former municipal center site. Below are some of the existing issues associated with the use and/or re -use of the site and buildings. • Current Uses: Current partial uses of the building include use as a Fire Station and storage in the former police garage. Additionally, it is utilized as a polling place during elections and as an emergency evacuation shelter for Ramsey elementary. The site is 21.27 acres in size and the land alone is valued by the County at $1.329 million. A current appraisal could provide a better measure of value. • The current HVAC system will need to be replaced in 2 -3 years if re- occupied. The estimated cost of replacing this system is about $75,000 +. • There are water issues in the basement and roof leaks. • Currently, the City Hall facility is served by a private well with poor water quality. • Neither the City Hall nor Police Facility is ADA compliant (no elevators). • The existing City Hall Facility was built in 1976 with grant funds from the federal government at a cost of $580,000. The Police Facility was built in 1995 at a cost of $500,000. Each facility has undergone remodeling in recent years to accommodate additional needs for office space. Staff is confirming that no pay back of grant monies would be required. Discussion: • Options for site. Those options include holding the land for a future school in Ramsey, razing the buildings and selling the land for development to offset the cost of the new facility, or leasing out the facility for an interim use while a decision is made regarding the site. The school district is not interested at this time, or in the foreseeable future. Some parties (e.g., private schools, churches) have expressed interest in leasing, but efforts to secure a tenant have been unsuccessful. • Replacement of Fire Station. If the City sells the entire 21.27 -acre site, a new fire station would need to be constructed at an estimated cost of $2.6 million. An alternative site to the east has already been acquired by the City. Annual debt service on such a project would be approximately $184,000. The City could possibly sell the land and lease back