2.5.
CC Work Session
- Meeting Date:
- 05/03/2011
- By:
- Kurt Ulrich, Administrative Services
Title:
Review Appraisal of Former Municipal Center
Background:
One of the strategic goals for the City in 2010 is to consider the sale of the former municipal center site. Based upon a Council work session in 2010, the City authorized an appraisal of the property and buildings, in preparation to sell or swap the property for a completed fire station.
The existing City Hall Facility was built in 1976 with grant funds from the federal government at a cost of $580,000. The Police Facility was built in 1995 at a cost of $500,000. Each facility has undergone remodeling in recent years to accommodate additional needs for office space. Because of the age of the grant monies, they would not have to be paid back.
The existing City Hall Facility was built in 1976 with grant funds from the federal government at a cost of $580,000. The Police Facility was built in 1995 at a cost of $500,000. Each facility has undergone remodeling in recent years to accommodate additional needs for office space. Because of the age of the grant monies, they would not have to be paid back.
Observations:
Options for site include holding the land for a future school in Ramsey, razing the buildings and selling the land for development to offset the cost of the new facility, or leasing out the facility for an interim use while a decision is made regarding the site. The school district is not interested at this time, or in the foreseeable future. Some parties (e.g., private schools, churches) have expressed interest in leasing, but efforts to secure a tenant have been unsuccessful.
Replacement of Fire Station is necessary if the City sells the entire site. A new fire station would cost an estimated $2.5 million. An alternative site to the east has already been acquired by the City for a new station. If the total cost was financed, the annual debt service on such a project would be approximately $184,000. The City could possibly sell the land and lease back the fire station for a period of time.
Based upon Council direction, staff has pursued the option of swapping the land in exchange for a completed fire station, to be built by a private contractor. The appraisal indicates that there is enough value in the land and buildings to allow that to happen with a minimal amount of cash exchange. Staff will review the contents of the appraisal and discussions with local contractors.
Replacement of Fire Station is necessary if the City sells the entire site. A new fire station would cost an estimated $2.5 million. An alternative site to the east has already been acquired by the City for a new station. If the total cost was financed, the annual debt service on such a project would be approximately $184,000. The City could possibly sell the land and lease back the fire station for a period of time.
Based upon Council direction, staff has pursued the option of swapping the land in exchange for a completed fire station, to be built by a private contractor. The appraisal indicates that there is enough value in the land and buildings to allow that to happen with a minimal amount of cash exchange. Staff will review the contents of the appraisal and discussions with local contractors.
Funding Source:
It is anticipated that any proceeds from the sale of the municipal center site would go towards the construction of a new fire station.
Council Action:
Based upon discussion.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich (Originator) | Kurt Ulrich | 04/28/2011 12:13 PM |
- Form Started By:
- Kurt Ulrich
- Started On:
- 04/27/2011 02:52 PM
- Final Approval Date:
- 04/28/2011