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2.2.
CC Work Session
Meeting Date: 04/09/2024
   
Primary Strategic Plan Initiative: {ud_pd2}

Information

Title:

Old Town Hall Discussion - 50th Anniversary 

Purpose/Background:

Council Members Specht and Howell asked for this item to brought forward for discussion.  Ramsey is having its 50th Anniversary this year and trying to bring the Old Town Hall back into service in some capacity could be part of the celebration.

Renovation History and New Pricing Estimate
The City worked with the U of M and Resilient Communities Project (RCP) to put together a 1) Historical Report of the Old Town Hall (17A) and 2) the Future of Ramsey Town Hall (17B).  The Historical Report has been provided for reference but the focus of the discussion centers around the renovation and future use of this historical building in Report 17B.  The report evaluated the pros and cons of keeping the building at its current location or moving it to the COR. The report concluded that leaving it in its current location would allow it to remain on the National Register and not risk damaging the building by moving it.  The report then looked at what would be needed to renovate the building so it could be restored appropriately and be able to be occupied and used.  Any renovation would need to comply with the Secretary of the Interior's Standards for Rehabilitation as outlined in the RCP report.

In order to maintain its place on the National Register, special 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
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 any 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 has 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 merger and won't have time to discuss options in any detail until the merger is complete which is estimated to be sometime in May.

Future Use Options
The 17b RCP report discussed potential future use of the Old Town Hall.   Uses contemplated ranged from a public space, museum, school, arts, business and 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 building and think its allure will benefit their businesses.  Parking is also difficult to solve for and any agreement 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 agent in 2021 and market rate rent for this building would be in the $12-18 / SF range 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
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 and Staff has not brought solicited new quotes for a renovation and to market it to the private sector for lease.

Public / Parks
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 
Mayor Kuzma has expressed interest in moving the Old Town Hall to the Anoka County Mississippi West Regional 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.

Timeframe:

10-20 minutes

Funding Source:

To Be Determined
 

Responsible Party(ies):

Brian Hagen

Outcome:

To determine the future use of Old Town Hall and if it's viable to renovate or move.

Attachments

Form Review

Inbox Reviewed By Date
Brian Hagen Brian Hagen 04/04/2024 04:13 PM
Form Started By:
Sean Sullivan
Started On:
04/04/2024 03:17 PM
Final Approval Date:
04/04/2024