Agenda - Council Work Session - 08/12/2024

Home

In order to maintain its place on the National Register, pecial care must be taken to restore the building as close to the original conditions as possible. The report outlines the 2 major steps necessary to get to this point: 1) Climatization and 2) Pre-Occupancy Upgrade. In 2018, the cost to bring this building into operation was estimated to be $44,940. in 2019, the City re-roofed the building and repaired the eaves. In 2021 a private business asked the city to renovate the building and to lease it back for a boutique. Quotes for the renovation at this time were $111,900 to $139,270 based on increased costs of construction and inflation staff is estimating a 50% mark-up from the 2021 pricing which would amount to a cost of$167,850 to $208,905. Parking/History (Old Information When the First Bank of Isanti bought the land next to Town Hall and constructed its facility. a Declaration of Reciprocal Easements document was filed. (See attached) This document references a shared parking easement agreement between the Old Town Hall and the Bank that is permanent and perpetual. Other requirements of the agreement include ongoing Maintenance by the bank with the City being responsible for 29% of the maintenance costs within 30 days receipt of an invoice by the Bank and hours that the Old Town Hall can use a portion of the bank parking lot excluding specific hours during bank operation. Staff is not aware of anv invoices that have been issued to the City but will need to verify with finance. There was supposed to be an Exhibit as part of the recorded document by KKE defining these areas better but unfortunately it is not part of the document of record at Anoka County. Staff has searched for records internally for the KKE Exhibit but have been unable to find it. Staff reached out to Flagship bank to see if they have any interest in formalizing a new parking agreement that would make use of the Old Town Hall more viable. Unfortunately. Flagship Bank is in the middle of a meraer and won't have time to discuss options in any detail until the meraer is complete which is estimated to be sometime in Mai. Future Use Options 101d 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 requests about the availability of the building 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 building the users go elsewhere. These users were excited at the possibility of using this unique buildina and think its allure will benefit their businesses. Parking is also difficult to solve for and anagreement with a future tenant would likely need some sort of cross parking easement with the adjacent 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 / snowplowing and the City responsible for the property taxes. Staff estimates that a current lease rate would fall into the $14-20 / SF range. Private Party Lease Old Information The EDA reviewed this use in 2021 and recommended that staff renovate the building when pricing came down. Unfortunately,pricing has not come down since Covid.. Public/Parks (Old 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 parks uses for that building based on the layout, outside noise and uncertain parking. He noted he thought it was a better niche retail location if the use didn't require much parking or if a parking solution could be found. Visitor Center(Old Information