Fire Suppression System for City-Owned Property at 6701 Hwy 10

The City of Ramsey acquired the property at 6701 Hwy 10 in September of 2005.  The 28,000 sq. ft building includes 18,000 sq. ft. of cold storage that is utilized by Sharp & Associates to store boats, RVs, and other vehicles, and approximately 10,000 sq. ft of office space formerly occupied by NAU Country Insurance.  In February of 2007 the City leased 4,820 sq. ft. or the east side of the office space to Youth First Community of Promise.  Three years later the lease was modified with the lessee being the Northwest Anoka County Community Consortium.  Youth First continues to operate in the east side of the office space.  The City constructed a demizing wall dividing the office area in the middle and has undertaken other maintenance activities pertaining to the property.

At the beginning of July of 2011, the United Methodist Church of Anoka approached the Economic Development/Marketing Manager regarding leasing the western portion of the office space in 6701 Hwy 10.  The Anoka church is interested in creating a new satellite church called Northern Light Church.  On July 8th Pastor Lyndy Zabel, the pastor for the new church, provided a letter of intent to lease the office area.  Following negotiations with representatives of the church, a lease was drafted that reflected an annual rent of $24,100 in the first year and $26,510 in the second year of the lease.  The term of the lease would be for 30 months.

According to the Building Official, in 2005 the City adopted the Chapter 1306 MN Building Code into the Ramsey Building Code.  Chapter 1306 is the section of the building code requiring buildings to be constructed with fire suppression.  Chapter 1306 has two optional subparts which the City was required to choose.  Option one would apply to any new builds or additions.  Under option one any new construction would be required to have a fire suppression system installed as part of the permit.

Ramsey choose to adopt “Option 2”, which requires any new construction including additions to be sprinkled, as well as requiring any existing space that has a change in its “occupancy” classification to also be sprinkled.  Since there is a change of use of the property that entails assembly activities, the City's building code requires the installation of a fire suppression system.  Following discussions with the Building Official, Fire Marshal, and the church, it is clear that a fire sprinkler system would be required for a portion of the building, specifically for the office area on the south end of the property (See diagram of the building).  Both Youth First and Northern Light Church have activities that trigger the need for a fire suppression system.  This proposed project would provide fire safety for both sides.

The proposed fire sprinkler project would entail a a two-zone wet and dry pipe fire protection sprinkler system.  The "wet pipe system" protects the heated office space and moves water through pipes in the ceiling.  The "dry pipe system" protects the unheated attic truss space and is equipped with an air compressor.  The total cost for both is $64,980.  There is currently a two inch water service line that comes into the building which does not provide sufficient water pressure to support the fire protection system.  Therefore, a six inch water line would need to be extended from the water main that runs along the south side of the BNSF railroad tracks.  Public works has provided cost estimates for two options (See site layout showing water main options).  The 280 foot option is estimated to cost $53,585 and the 440 foot option $36,575.  Both have a 25% contingency.  Actual bids from contractors may come in lower.  Thus the total project cost would be $101,555.        

It is suggested that the City Council consider utilizing approximately $15,000 a year from the lease revenue with Northern Light Church to amortize the cost of installing the fire protection system.  This would still allow the City to pay expected taxes and administrative costs associated with the lease and that portion of the building.  A 2 1/2 year lease would thus generate $37,500 to offset the investment.  The difference of $64,055 could potentially be paid by the City using the EDA Fund.  If the church would extend the lease then more of the costs of the fire protection system would be amortized over time.  The installation costs associated with the portion of the office occupied by Youth First should not be borne by the Northern Light lease.  Moreover, the water line would benefit the whole building.  Other office users coming in would already meet fire suppression system requirements.  

Provide guidance to City staff regarding the proposed investment of City resources for a fire suppression system in 6701 Hwy 10.