Agenda - Economic Development Authority - 08/08/2024

Home

is in the middle of a meraer and won't have time to discuss options in anv detail until the meraer is complete which is estimated to be sometime in May. Future Use Options ,(Old Information) The 17b RCP report discussed potential future use of the Old Town Hall. Uses contemplated ranaed from a public space. museum. school. arts. and business incubator. Staff has received multiple reauests about the availability of the buildina for lease for various types of businesses in the past. Schools and retail uses have approached the City but due to the condition and renovation needed to the buildina the users ao elsewhere. These users were excited at the possibility of usina this uniaue buildina and think its allure will benefit their businesses. Parkina is also difficult to solve for and anv aareement with a future tenant would likely need some sort of cross parkina easement with the adiacent properties. The Old Town Hall has an estimated 778 SF of lease space. It includes a bathroom. main hall and cloak room. Staff consulted with a local real estate aaent in 2021 and market rate rent for this buildina would be in the $12-18 / SF ranae with the tenant responsible for the utilities / snowplowina and the City responsible for the property taxes. Staff estimates that a current lease rate would fall into the $14-20 / SF ranae. Private Party Lease (Old Information). The EDA reviewed this use in 2021 and recommended that staff renovate the buildina when pricina came down. Unfortunately. pricina has not come down since Covid.. Public / Parks JOld Information). Ideas for use of the site include art classes and rental for small events. Staff has spoke with Mark Riverblood and he was not confident he could identify many viable Darks uses for that buildina based on the layout. outside noise and uncertain parkina. He noted he thouaht it was a better niche retail location if the use didn't reauire much parkina or if a parkina solution could be found. Visitor Center (Old Information). Mayor Kuzma has expressed interest in movina the Old Town Hall to the Anoka County Mississippi West Reaional Park and to utilize it as a Visitor Center. More information is needed to determine the viability of this based on the information in the RCP Report which recommends aaainst movina the buildina.. Notification: None required Time Frame/Observations/Alternatives: About every 4-7 years the Town Hall and its future is brought to the City Council or Commissions for consideration. Past responses have included funding general maintenance (Roof, eaves) to securing the building and contracting for reports to identify what would be needed to restore the building and bring it back into operation. The last time the city seriously looked at this item was in 2021 when it had an interested tenant (Small Town Girl Boutique) during the tail end of the Pandemic and it was decided to wait and see if pricing to renovate would come down. In 2024, pricing has slightly increased with the lowest quote being around $120,007 (was $111,000 in 2021). The proposed scope of work to fully renovate the Old Town Hall includes installation of new front steps, an ADA ramp and a concrete sidewalk from the parking lot to the front entrance. The removal of two dead, or dying oak tress will also need to be done to accommodate for the sidewalk and to ensure the dead trees don't fall on the building. Our Public Works team has the tools and skills necessary to remove the two trees which would have cost $4000 if contracted out to the private sector. As previously mentioned above, Staff believes there are likely unexpected items that the contractor will run into during the renovation and is requesting that a contingency of 10-15% (132K-138K) be included for all contractors if a recommendation to award a bid to a contractor is made. If the EDA funds are are used for the renovation, Staff recommends that the EDA receive all