Old Town Hall Discussion - Next Steps

Council Members Specht and Buscher asked for this item to be brought to City Council Work Session for discussion.

The purpose of this case is to discuss future action for Staff relating to the Old Ramsey Town Hall

Current Plan/Status
The Council has not directed staff to pursue renovating and/or re-opening the Old Ramsey Town Hall.  Council direction is to continue general maintenance as necessary to ensure it does not deteriorate. The building is secured from elements and pests.

Next Steps

Consensus by Council to Re-Open Old Town Hall
Based on previous discussion with the Council the biggest obstacle to finish the renovation of the Old Town Hall is funding.  A secondary obstacle is determining how the space could be used.   The general consensus of the City Council has been that it would be "nice" to restore and use it but specific funding source has not been able to be identified.  Below are some funding sources that the City could try to tap into to complete the renovation/historic preservation of the Old Town Hall that were provided by Council member Buscher and briefly reviewed by Staff. At this point Council consensus is to maintain Status Quo.

Federal Grants and Programs

• National Park Service – Save America’s Treasures (SAT): A competitive federal grant for preserving nationally significant historic properties. SAT grants range from $125,000 up to $750,000 and require a dollar-for-dollar non-federal match (Save America's Treasures Fact Sheet). Only properties listed on the National Register at the national level of significance or as National Historic Landmarks are eligible. Applications open annually (recent rounds in summer with fall deadlines), and funds can cover restoration of historic buildings. Example: Taunton, MA secured a $250,000 SAT grant to restore its historic city hall (Save America's Treasures - Wikipedia).
• National Trust for Historic Preservation Grants: The National Trust (a nonprofit) offers multiple grant programs for preservation. Most are small grants (often $2,500–$15,000) geared toward planning, education, or seed money for preservation projects (Historic Financial Assistance | Northfield, MN - Official Website) (this Northfield page offers so much information on historic financial assistance grants) (Find Funding: Grant Programs from the National Trust | National Trust for Historic Preservation). Eligible applicants include nonprofits and public agencies, typically with a required match. Deadlines occur three times a year (Feb, June, Oct) for the National Trust Preservation Funds.
• Other Federal Programs: The City can also seek federal funding through programs not exclusively for historic preservation:
  • Economic Development Administration (EDA) Grants: If the Town Hall project will spur economic growth (e.g. as a heritage tourism center or incubator), EDA’s Public Works or Economic Adjustment Assistance grants could be a fit. The EDA offers various funding opportunities for redevelopment and infrastructure; eligibility requires demonstrating jobs or economic impact (Historic Financial Assistance | Northfield, MN - Official Website). Example: The EDA has funded historic downtown revitalization projects where reusing a building was part of a broader economic development plan.
  • Ramsey can access small grants via the National Park Service’s Historic Preservation Fund, administered by the Minnesota SHPO. These typically fund planning, surveys, or bricks-and-mortar on a matching basis (often up to $25,000). Historic Preservation Fund (U.S. National Park Service)
  • Others: The National Endowment for the Humanities (NEH) or National Endowment for the Arts (NEA) occasionally have grants for historic sites used as cultural centers or museums. For instance, NEH’s Public Humanities grants might fund exhibits or interpretation if the Town Hall becomes a museum. (Grants | National Endowment for the Humanities). While these programs have specific scopes, in combination they can cover various aspects of a rehabilitation project.

State Grants and Programs (Minnesota)

• Minnesota Historical Society (MNHS) – Historical and Cultural Heritage Grants (Legacy Grants): Minnesota’s Legacy Amendment (Arts & Cultural Heritage Fund) provides funding for historic preservation through this grant program. Government units and nonprofits are eligible to apply (Minnesota Historical and Cultural Heritage Grants | Minnesota Historical Society). Grants support projects that preserve Minnesota’s history and cultural resources, including planning and restoration of historic structures. There are Small Grants (up to $10,000, no match required) and Large Grants (over $10,000, often ranging $50k–$300k+). Small grants have multiple deadlines (e.g. January, April, July, October), while large grants typically have two rounds per year (pre-application usually in summer). Projects should relate to a site of historical significance (ideally listed or determined eligible for the National Register or local designation). We’ve used previously, but does not mean we cannot again
• State Capital Projects Funds: Although not a grant program per se, it’s worth noting that Minnesota’s Legislature can fund local historic preservation projects through bonding or special appropriations. Cities sometimes request capital investment from the state for significant projects. Example: The historic Chatfield Center for the Arts (a former school) received state bond funds for its renovation. Ramsey could explore advocating for state capital funding in a future legislative session, especially if the Town Hall project has regional significance or is paired with other community development (this would require support from local legislators and is a competitive political process).

Local and Regional Funding Sources

• Anoka County Historical Society / Regional Heritage Organizations: The Anoka County Historical Society (ACHS) itself does not have a large grant program, but it can be a valuable partner. ACHS could help by providing historical research or significance validation for grant applications, and it can sponsor or co-sponsor Legacy grant projects. Additionally, ACHS might receive Legacy funds for county-wide projects and could include the Town Hall in such efforts (for example, a county historic sites preservation initiative)
• Local Fundraising and City Funding: Although not external grants, it’s worth noting local sources as part of the funding mosaic. Ramsey’s budget can contribute, and demonstrating local match money often strengthens grant applications. A local fundraising campaign (soliciting donations from residents, businesses, and alumni of the community) can generate funds and public support. In some Minnesota cities, local businesses and civic groups (Rotary, Lions, etc.) have sponsored specific restoration items (e.g. a restored window or a display in a historic building). While these are not formal grant programs, leveraging community support and city funds can be crucial in matching grants and covering any gaps.

Private and Nonprofit Funding

• Private Foundations: Numerous foundations in Minnesota and the Upper Midwest fund community and historic preservation projects. For example, the Jeffris Family Foundation focuses on Midwestern historic preservation and often funds Historic Structure Reports (HSRs) and planning for significant buildings in smaller communities (Jeffris Family Foundation | Dedicated to Midwestern Historic Preservation). A grant from Jeffris could fund detailed architectural studies or restoration plans for the Town Hall. Corporate philanthropy is another avenue: companies such as Target, Xcel, or General Mills have foundations that give to community initiatives. These grants typically range from $5,000 up to $100,000+ depending on the foundation and project impact. To tap these, the City would usually need to apply through a competitive process highlighting the project’s community benefit (e.g. education, civic pride, economic vitality).
• Corporate Grants and Sponsorships: Local businesses or corporations with a presence in the region might sponsor the renovation. For instance, a construction materials company could donate or underwrite materials, or a bank might provide a community grant as part of its Community Reinvestment Act outreach (BMO). While not as formal or large as federal/state grants, such private-sector contributions can accumulate.
• Community Nonprofits and Crowdfunding: Local historical societies (like Friends of Old Ramsey Town Hall, if one were established) or a dedicated Friends group can raise funds privately. They could apply for grants as a nonprofit, which sometimes is advantageous. Additionally, public crowdfunding campaigns have succeeded in supporting small-scale preservation—platforms like GoFundMe or Kickstarter have been used to raise money for town hall restorations by engaging residents and others. While not “grants,” these contributions can then be used by the City as match for grants or specific restoration tasks (e.g. “buy a brick” campaigns where donors finance the masonry repair one brick at a time). Example: The City of Peterson, MN (much smaller than Ramsey) raised community donations to restore its 1877 town hall, which then helped leverage a Minnesota Historical Society grant. A similar approach could bolster funding for Old Ramsey Town Hall.

Tax Credits and Incentives

• Federal Historic Preservation Tax Credit (HTC): This program provides a 20% federal income tax credit on qualified rehabilitation expenditures for historic buildings that produce income (e.g. commercial, rental, or business use). To qualify, the building must be listed on the National Register of Historic Places (or contributing to a National Register district) and the rehabilitation work must meet the Secretary of the Interior’s Standards. While a city-owned building doesn’t pay taxes, Ramsey could partner with a private entity to take advantage of the credit – for instance, by leasing the restored Town Hall to a business or organization. The private partner could claim the credit, significantly reducing restoration costs. The federal HTC has no set cap per project, and large projects often combine it with other financing. The process involves getting the project approved by the State Historic Preservation Office and NPS. Examples: Many Minnesota projects have utilized the 20% federal credit, such as the Schmidt Brewery redevelopment in St. Paul and the NorShor Theatre restoration in Duluth, both of which leveraged federal HTC equity (Renewal of state historic tax credit program draws praise, projects | MPR News). If Old Ramsey Town Hall were repurposed (for example, as leased office/event space), an investor could use the HTC to recoup a portion of rehab costs.
• Minnesota Historic Structure Rehabilitation Tax Credit: Minnesota offers a state historic tax credit equal to 20% of qualified expenses, effectively doubling the incentive for projects that also use the federal credit. This state credit (which can be taken as a grant in lieu of a credit) was temporarily expired but in 2023 the legislature extended it for eight years (through 2030) (Renewal of state historic tax credit program draws praise, projects | MPR News). Like the federal, it requires the property be an income-producing historic resource and follow preservation standards. When combined, a project can get a 40% tax credit on rehab expenditures, greatly improving project feasibility. Examples: Since its inception in 2010, the state credit has aided nearly 200 projects. Notable examples include the Historic State Theater in Ely and the Duluth Armory project, which rely on the state credit alongside the federal credit. Even though the Town Hall renovation would be a public/non-profit use, the City could explore creative models – for instance, a public-private partnership or transferring ownership to a nonprofit that can utilize the credits via a development deal. Some cities have done this: a nonprofit restores the building using tax credits and then leases it back to the city for public use. This route is complex but potentially very beneficial financially if the project is large enough to attract tax credit investors.
• Property Tax Abatement or Local Incentives: Ramsey could consider local incentives such as a property tax abatement for a partner developer if one is involved. Minnesota law allows cities to abate property taxes to support community development projects. In the case of the Town Hall, if a private entity invested in the building, the City could abate taxes for a period as a subsidy.
• Energy Efficiency and Other Niche Incentives: Upgrading a historic building can qualify for energy rebates or incentives. Programs like Xcel Energy’s Energy Design Assistance or the federal Investment Tax Credit for solar panels (30%) could come into play if, say, solar panels or geothermal systems are added to the project. Additionally, Property Assessed Clean Energy (PACE) financing is available in many Minnesota counties (including through the St. Paul Port Authority’s program). PACE isn’t a grant, but it allows the City or a private owner to finance energy improvements and repay via property tax assessments. Using PACE for new HVAC, insulation, or windows in the Town Hall could reduce long-term operating costs and make the project more sustainable.

Staff had a virtual meeting with John Beaty, Minnesota Historical Society, on March 20th to discuss the possibility of Small ($10,000) and Large (Over 10K to 300K) grants for the project.  Generally speaking, John thought that this project was grant-worthy and provided staff additional resources to learn how to apply.  Not all costs would be grant-worthy (painting is not eligible for example) but most of the other project costs, flooring, tile, ADA accessibility items are eligible.  These grants are competitive and are based the number of applicants, historical significance and local commitment to the project. The fact that the City has spent $33,497 on items to preserve the building building and a renovation was previously started should help the City's chances of obtaining grant money from MNHS.  Although there are many potential sources above, Staff would suggest a more focused approach (using one or two sources, grant applications) if the Council decides to move forward with the renovation.  

Proforma / Break-even point
Recently (2018-2024) the City has spent $33,497 for general maintenance and preservation of the Old Town Hall.  Staff estimates that an additional 123K to 130K will be needed to complete the project.  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 agent in 2025 and market rate rent for this building would be in the $16-18 / SF range with the tenant responsible for the utilities / snowplowing and the City responsible for the property taxes. For the purposes of the break-even analysis, staff used a ~ $17/SF rate or $1,100 a month. Staff has put together a number of scenarios with varying grant award amounts to show the timing of a break-even point with a market rate renter.  It should be noted that the break-even point includes recouping the $33,497 previously spent.  Simple analysis for an  0K, 30K, 50K, 100K and 125K grants are attached to this case.  This analysis shows a 4 to 14 year break-even point if there is a tenant.  Staff has not run analysis for a public use as no significant (regular) revenue would be collected or can be determined at this time.

Potential Uses / Parking
As mentioned previously, the site is challenged for parking with only 5 spaces currently dedicated to the site.  The City is allowed to use spaces at the bank when the bank is closed under a current agreement.  If the City does that, there likely will be cost with maintenance, which is currently not being paid.  Further discussions with the bank have shown a willingness to potentially expand the use of parking on the bank site during bank operation as long as it does not impact bank customers.  Suggested uses in the RCP report include a museum, School of the Arts, a Music School, or a business incubator.  Other non-public uses could include a boutique, mortgage/title company, accounting business or other businesses that don't have alot of customers at the same time.  More public uses, such as park programming or renting the space out for small functions could be a possibility.  Staff has recently reached out to Small Town Girl Boutique (previous wanted to lease building in 2021) and they have some interest.  
 

None required

This item was initiated for discussion by Council Members Specht and Buscher. This purpose of the case is to see if the Council has consensus moving forward on the status of the Old Ramsey Town Hall.

Alternatives generally include:
1) Do nothing, except for general property maintenance. (current direction)
2) Council Direction to provide direction for Staff to obtain more quotes, apply for grants and proceed with historic renovation to bring the building into operation.
3) Relocate the building. (it should be noted that the RCP Study did not recommend moving the building.)
4) Something else

No funding source has been identified.

Staff is encouraged by the possibility of obtaining grants from the MNHS but amounts are unknown until grants are awarded.  A single (large) or series of small grants, could be sought for partial funding.

Full renovation costs funded through EDA funds is not supported by EDA.

There is no recommendation by Staff or the EDA at this time.

Consensus by the City Council on next steps for Old Ramsey Town Hall