The Waterfront Park - 2024 Ballot Question - Please Note: this case was moved from 2.3 to case 2.2.

As part of the city's community park system planning, a water-centric park known as The Waterfront has been envisioned for more than a decade in Ramsey's downtown. In 2023, the mass grading for the park was completed as part of the preparation of pad-ready development of the entire northwest quadrant of The COR.  Presently, the city is constructing a trail that will circumnavigate the 7-acre pond and connect the park to the adjoining residential areas and larger community.  Throughout and during the last 10 years of planning for the park, city leaders have simultaneously heard a common refrain from many residents that they desire more family destinations, more restaurants, a 'splash pad' and a community center. These resident propositions have most recently coalesced as a proposed project that would address those aspirations.

Over the last year, the Park & Recreation Commission performed a detailed analysis of how a park building could best serve the community— this process resulted in a concept for an approximate 36,000 gross square foot two-story building, consisting of mass timber construction; and including dining, balcony, patio and beer garden, room rental and fitness areas, large indoor play area, and banquet space.  The proposed structure with indoor and outdoor program areas is essentially a modern community center, with outdoor water-play elements replacing a traditional public swimming pool and gym. 

At the City Council work session on April 9th, the Council reviewed the overall concept plan for the community building and also examined details and operational pro forma on a public private partnership that would provide for the preponderance of the operating costs for the food and beverage aspects of the building in the first years, with a transition to a partnership that projected revenue in subsequent years, all the while by providing services to residents. Other operational and maintenance costs for the building and grounds were highlighted, but additional revenue relative to the indoor playground and climbing wall were not included.  If Ramsey were to move forward with the project, we would still need to determine an operational plan of the building that fits our needs.

The work session discussion included 'high-level' construction cost estimates of $1M to $3M for the water play and other outdoor site development, and estimates of $18M to $20M for the proposed 36,000 square foot community building—and perhaps another $2M for fixtures, furnishings and equipment.  The discussion continued with the acknowledgment that to fully consider this project, two things should occur; first, that accurate cost estimates must be determined, and only thereafter an advisory question can be formulated for inclusion on the November General Election ballot, such that residents would have an effective voice in supporting the funding of the proposed project.  At the regular City Council meeting on April 23, 2024, a proposal was considered to prepare a schematic design of the project to provide more accurate cost estimates.  The proposal described that the "Architect builds on the concept design services and establishes a design vision: the parameters and principles that will guide the Project forward in alignment with Owner’s brand and mission. Tasks during this phase include: program development, circulation diagrams, net and gross area calculations, initial site design, building character studies, material research, and coordination with design team consultants as necessary, and Owner progress meetings (weekly)."  This would result in a preliminary building model which includes preliminary building plans, preliminary building sections, preliminary building elevations, as well as the required mechanical, electrical, plumbing, and structural engineering, for a stipulated sum of $267,500.  The proposal was not approved, and therefore we have the above estimated total project costs of $25 million as our best estimate.

The deadline to submit a ballot question to be included on the General Election Ballot in November is August 13, 2024.  If desired, staff can prepare informational materials to share with the public on what a bond issuance would have on the property tax levy.  Staff has not begun preparing these materials due to the uncertainty of the ballot question following the schematic design proposal denial.  If we use the above $25 million estimate to then establish bonding needs minus existing cash funds available in the amount of $3 million, that would equate to a $22 million bond.  At the April 9th Work Session discussion, staff provided an annual debt service estimate of $1.325 million on a 20-year $17 million dollar bond.  Based on this estimate, a $22 million bond would equate to an approximate $1.714 million annual debt service requirement.

Other factors to consider for this project time frame is the 2024 approvals for three residential projects within the COR.  These projects will generate an additional $2,531,684 in Park and Trail Dedication Fees once final platted.  One of the projects is a multi-phase detached townhome project with the full payment coming over about four phases.  By the end of 2025, it is expected that $2.2 million of this total will be collected equating to a cash balance available for the project of $5.2 million.

Alternatives:
1) Proceed forward with a November 2024 Ballot Question.  Cost estimates utilized would be high level based on conceptual drawings totaling $25 million.  Staff would prepare new bonding estimates on a $22 million dollar bond, and then prepare informational materials to distribute ahead of the November Election.  This would begin as soon as possible to educate voters prior to the start of the absentee balloting period, and to answer questions the public may have.

2) Delay the project and Ballot Question.  This would allow for the cash balance to increase as private development continues to be strong within the COR.  Furthermore, we could utilize the existing cash balance to prepare more detailed plans to generate a more accurate bonding need.  We could further explore the operational style of the facility to best fit our needs and refine future anticipated revenue.

30 minutes

Brian Hagen
Mark Riverblood

Provide consensus direction on a 2024 Ballot Question.  If proceeding with a ballot question, staff would bring back language to review at the next Work Session for approval.  The question would then be submitted to the County for inclusion on the November Ballot.  If the direction is to delay the project, staff would likely wait for the new year following the budget season and the onboarding of the new City Council to continue discussion.