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Home My WebLink About10.F.1. Options for Selling Downtown Fire Station ��.!' � CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrato�r/�(� SUBJECT: Options for Selling Downtown Fire Station DATE: February 3, 2012 Introduction At its January 3 meeting, the City Council directed staff to research options for selling the downtown fire station. The following is a follow-up report based on staff's research. Background Based on information provided by the League of Minnesota Cities and City Attorney Jim Thomson, it appears the City has three options for selling the downtown fire station. 1. The City could issue a Request for Proposals (RFP). The RFP would outline the general terms and conditions under which the City plans to sell the property and instruct interested buyers to provide a written offer, including offer price, planned use of the property, and any other information the City would seek, by a published date and tiine. Once that date and time arrived, the City would review all offers received. It would then have the option to enter into a purchase agreement with the party that submits the most desirable offer or reject all offers and proceed with an alternative course of action. The City has sold land in this manner in the past; however, given the current real estate market a firm deadline for offers may result in few or no offers or offers fax below market value. . 2. The City could essentially list the building as "For Sale By Owner" via signage on the building, notice on the City's website, etc. This would require the Council to establish an asking price and determine its basic terms, such as whether a commission would be paid to a buyer's real estate agent. This approach would have no deadline or timeframe and the City would simply review any offers on a one by one basis until an acceptable offer was received. The City Council can go into closed session to determine an asking price for the property and to consider any offers received. Kennedy & Graven would handle the legal matters associated with closing the sale. This approach would have a fairly modest cost, but the Council would have to establish the asking price for the building and consider any offers on its own, without the advice of someone with real estate expertise. 3. The City could contract with a licensed commercial real estate agent to list the building. This would provide Council with professional advice in setting an asking price and reviewing any purchase offers. If Council desires to contract with a real estate agent, it is recommended that the City issue an RFP so that any local agent interested in having the listing has an equal opportunity to submit a proposal and be considered. Through the RFP process, the City would establish the commission to be paid to the agent in the event of a sa1e, the length of the listing with the agent, and other details. Regardless of the approach selected, any sale of the property will have to be reviewed by the Planning Commission for compliance with the Comprehensive Plan. While the Planning ' Commission would o`nly make a non-binding recommendation to the City Council, this step is required by MN Statute 462.356, subd. 2. Lastly, in the weeks since Council last discussed the fire station property, there has been some citizen discussion and media coverage of possible community uses of the property. At least one interested citizen may be present at the Council meeting to advocate for suoh a plan. If the Council wishes to reconsider its decision to sell the property and consider retaining the . building under City ownership for some form of community use, the following information may be relevant: 1. Utility Costs. The total utility costs for the building over the most recent twelve month period were $13,646. This is the result of the building's current use as a fire station, which is unoccupied for the vast majority of hours in the week. This has a direct impact on the electricity, water and heat utilized within the building. A change of use would no doubt result in different utility bills; although to what extent could only be estimated after a specific new use was identified. 2. Insurance. Again, the cost to insure the building is dependent upon its use. The City currently pays $1050 per year for property insurance on the building, but this would likely change if there were a change in use. 3. Compliance Updates. Lastly, if the building were to undergo a change of use, there are several upgrades that would likely be required to bring it up to current codes. The exact changes that would be required would depend on the specific new use, but may include the addition of a sprinkler system for fire suppression purposes (rough estimate $20,000 to $25,000), accessibility enhancements to meet the requirements of the Americans with Disability Act (ADA) (2005 estimate--$40,000), and the payment of additional Sewer � Access Charges and Water Access Charges (SAC & WAC}_(final cost determined by usage). As was noted in staff's memo for the January 3 City Council meeting, a professional feasibility study would be the recommended next step if the Council were to decide to hold off on selling the property and wish to explore alternative community uses under City ownership. Relationship to Vision This item relates to Goal B: Positively manage the challenges and opportunities presented by growth, development and change. Requested Action The Council is asked to discuss and pravide feedback to staff regarding its desired next steps for the downtown fire station property. If the Council wishes to list the building for sale by owner, it should consider adjourning to Executive Session to discuss an asking price. � � � ,. �;. ° ,. ,� . � � . , , - ,� � . „_ �i, � � � �. �': . _ _ x .. � _, .: " � FIRESTATION 2- AN OPEN SOURCE ART AtVD COMMUNITY CERITER � � n � � i 5ii' "�: I� � � �� F � � J . ;� Y � � i � � _ � � 9 b � F � � G � i l" 4. �� ..� � t �� d d., s k i �� i i r 7 �; �i � �, P �� i � k a � �^ f PR Pt�SAL The soon fio be decommissioned fire station is . �,„,�� . the perFect locafiion for an arts centered mulfii- - ' "� �° �� purpose downtown community center esnd to � �<<,� �� ' ° '` ��' � bring some [ife, culture and commerce fio the `` �� m ' pi ;h y 3y( � � � � � �,,. � � � . Fai ling western downtown trainyar d area. '� � � �� s ,� : _� rs �� ' � �., J' � � 1� � k Wh1Ya �M�� F x �'° �, �,� �� t ��. f�„ As the County Seat, Shakopee should be a '��`� �� showcase for Scatt�County`s growing arts and �� ,� ��` �� } culfure. � � � ; To fill fhe lack of a downtown community gat�er- Y : � �� ,�. ing point like a cofFee shop. ` �`� �� _�. � �� To catalyze an existing arts & DIY �Da it Yourself) culture that exists in this part of Shakopee. To educate and engage the public in arts and " F , crafts. � � �' f � Ta facilitate downtown community events. `� �� To add a�eason for tourists to come dawntown. To increase the qvality of life for the downtown community through beautification. � � � � � �, �� z' �y � �,�, � � � � ,� ,��e� °,�, �_�° , . , _ �� HOW TC3 RED�FIIVE THE SP�►CES OF Th1E FIRE STATIOIV With minimal investment and development, we can maintain the nove) character of the fire station and create a flexible use facility � , � �7F _ . �t�� r ; �: a � ' � � � � `�� ° ` � � " �"" ' � , � � _ ,� � - � ,�� ,. � �� , � � � ; < < . s:,li _ � �� , , . �.» � �� ,, ,. � �� . E � � ,�� , '"� } �� _ r � � � ti= � , ��: � P � � � ��, �� - � �� ,,,, � � �� , �,� . � �� , � � 1 1 �,, , �. �" ' � .. :;;. , v xo' . , � , �' fil) r , � �.y �� £� �1 i . ,..� � . �. J! . " ��F P. � i '` � - � '��' �.�,�sc �� i �ftll � 3 � � I !e �. �� - - �y +. .� ��'� .� ��i d � ... ��,s f' I' I��I � � f . �+f i d `. '�Y' � � �_�' � ,� _ F�. �,�� '� Briefing Roam North Bays Rear Bays This section oF the fire department with its A coffee shop managed by the High Schoo) This could be a shared studio space far separate entrance is perfectly suited to be DECA or Junior Achievement clukss could Shakopee / Scott County artists. The large a rentable j reservable space for: be manned by volunteers from local non- doors and high ceilings would be very at- profits to raise funds. Adding glass garage tractive to large scale painters and sculp- - Scauf Troops doors would let in the light during winter tors. Rolling up the inside door could give - Community Education months and cauld be opened during the the coffee shap patrons one to one access - Start-up companies warm summer months for a very unique cof- with the artixt and creative space. - Independent online study graups fee house environment. This space would - Special interest graups act as a social center for the downtown To have access to the space, artists cauld ` - Family Reunions community including its many seniors. pay a membership fee and be encouraged - Card Clubs to hold classes or create art to enhance - Knitting Circles The walls of this cofFee shop would display the aesthetics of downtown 5hakopee such the painting, art and sculpture produced as public sculpture, murals, life enhancing in Shakopee and Scott County. Local musi- workshops for the schools or special needs cians, writers, and artists cauld also per- groups such as the womens' prison. form in the space Works could be sold, with the center taking a commission. �u �ir�� There are many grants available far cultura) and econamic development. A couple of examples: NEA'5 OUR TOWN GRAN,T for up to $250,000 for communities that ARTPLACE is a collaboration oF nine of the nation's top foundations, have created public-private partnerships to strengthen the arts while eight federal agencies including the Nationa) Endowment for the Arts, shaping the social, physical, and economic characters of their neigh- and six of the nation's largest banks. ArtPlace supports creative place- borhoods, towns, cities, and regions. NEA Chairman Rocco Landesman making with grants and loans, research and advocacy. made the announcement during an online press conference. Participating foundations include Bloomberg Philanthropies, The Ford Chairman Landesman said, "Communities across our country are invest- Foundation, The James Irvine Foundation, The John S. and James L. ing in the arts and smart design to enhance Americans' quality of life and Knight Foundation, The Kresge Foundation, The McKnight Foundation, to promote #he distinctive identities of our communities. Our Town creates The Andrew W. Mellon Foundafiion, The Rackefeller Foundation, Ras- partnerships among foca) governments and arts and clesign organiza- muson Foundation, The Robina Foundation and an anonymous danor. In tions to strengthen the creative sector and help revitalize the overall addition to the NEA, federal partners are the departments of Housing community." and Urban pevelopment, Health and Human Services, Agriculture, Edu- cation and Transportation, along with leadership From the White House NEA's Director of Design Jasnn Schupbach noted, "Creative placemak- Office of Management and Budget and the Domestic Policy Council. ing is a strategy for making places vibrant. Arts and design are essential parts of the complex work of building a livable, sustainable community." Funds committed to ArtPlace are averseen by the Nonprofit Finance Fund, a nonprofit lender and financial consulting arganization that Our Town grants range from $25,d04 to $250,000 and represent a serves as investment and grant manager for the collaboration. range of rural, suburban, and urban communities with populations rang- ing from just over 2,Q00 people to more than 8.2 million people. More ArtPlace wil) also be supported by a$12 million loan fund capitalized than half of the Our Town grants were awarded to communities with a by six major financial institutians and managed by the Nonprofit Finance population of less than 200,000, and seven to communities of fewer than Fund. Participating institutions are Bank of America, Citi, Deutsche Bank, 25,000 people. Grants were awarded for planning, design, and arts Chase, Metlife and Morgan Stanley_ engagement prajects that strengthen acts organizations while increasing the livability af communitiss across America. ArtPlace believes that art, culture and creativity expressed powerfully through place can create vibrant communities, thus increasing the desire By requiring a partnership between local government and an arts or de- c�nd the ecanomic opportunity for people to thrive in place. It is all about sign organization, Our Town encourages creative, cross sector solutions the (ocal. to the challsnges facing towns, cities, and the arts community. ArtPlace periodically awards grants to organizations doing ground- HTTP;//WWW.NEA.GC3V/NEWS/NEWS11/OUR-T�WN-AN- breaking work in creative placemaking. NOUNCEMENT.HTML MTTP: J JWWW.ARTPLACEAMERICA.C?R� WHY THIS VilILL WORK Cities such as Stillwater ond Northfield have become des- ,. ,� , ► tinations due a great part to the Focus on regional art and culture: Artists around Shakopee and Scott County are already organizing to make art more public. �� The Scat"t County Art Crawl is in its 3rd year. The crawl Me�ny sma{I to mid-sized cities benefit from a community is heavily centered on downtown Shakopee and brings arts presence in their downtowns. over 60 artists and the public together. Minnetonka Center for the Arts: Savage Arts Counci) has a public studia space in down- �'�'�`'��^'•minnetnnkaarts.org town Savage with close ties to the Savage Depot Coffee 5hop. Egan Art House: http://www.cityofeagan.cam/live/article. The Jordan Art Festival is branching out to create a more asPx?id=41032. lasting arts presence through a relationship with Minne- sota Harvest Apple 4rchard. Lanesboro Art Center: www.lanesboroarts.org The area around the fire station is already home to many Arts Center of St. Peter www.artscentersp.org arts/ crafts j DIY businesses and museums. (5EE FOLLOWING PAGE) There are plenty more. � r � , i • i � � � History holds that artists begin economic change. All of these art centers are stand-alone entities. By com- bining a community meeting place and an event space The Minneapolis warehouse district went from near aban- `^'�th an c�rt center, we generate more opportunities for donment to a thriving commercial neighborhood, begin- the public to experience and engage with art. We also ning,with artists who flocked to the cheep character- J�nerate more opportunities for our artists to engage filled industria) empty spraces. and be inspired by the community. V`iESTERN DOWPITC3INN SHAKC)PEE REI.ATED BUSINESSES AND OPPORTUNITIES � - : y . _� x s,,�. r a,� ..,, yl' ��z °o- ,�� u 3 y � � � : � � ; ��r, �� s�i � � � ��*a �� "��"'�� <� � � �sC �" ss� x "�ii�f ,: �t �� .i� ��r �# ��"" � � i � .. �`° ��.'...� �µ e � t ' �. � �; � �i - ��. ,+ � �"�!. i i u ' � � � _ �. t� 3 � �:�. , � �' ; �, g 1 .i' �. � �:. R "�,. i � El ,y.,f � F� ti , o� :'y i .." � Y � � f � V � .��`' I� � : k� � Y 4'"� � �� "��'" � � ` g � ' ;.' ' �� `.tf,°.�� . 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' � � ��tlo 5�t5 � � � s or��n a'fc�r s I� or I� se' �i r�. a � � s . � � . . h � ■ ■ ■ " . ■ r � , r � ter o�' ni r v I r�t r, � a n, i sc 1 i r iev er, � i c i°� i y c fee op. rs r , le ti i th r�t � e s r r� d fresh air. e alis i� � t r� i 1 i � y � � ren h�tended a eel� �on r t r a �e � 1 f s of t e��nt�r's art s�udi . � f t r r t r 1 ile eir irls ttend heir �- 1 u i �n ter" i i � . � of � rs f ,� rt- ca any at rents the riefin raom r c urs , �� ve � c�� s to rap up some final 1� se e s rlc. t rs c t s v in `s 'p s- -h ' 1 egr s is se ti g u in �he rear corner. th� i a�ea, 1 r� i p °�s r �r i �h ir piece� °� ��heir pc mi i�y ar sh . r � e ve i � t i e i s i e c unity lcil . � � a � � � � � � ■ . . . n . . � � ■ � len �i� co �rer� i�n be�v� ��rtists c� ��t� li� �rtt af � Qlc.� n�n-pr fit • Pt�r u�t f gr�nts • o�sid�ra ian flfi city �dn�ir�istratio • Dc�e di�� r��c� ara��rnd t�e strug�l�s and s�ucc�s�es of other regional ar� initiatives • Develapm�n�t of revie�nr fiirneline s�access criteri� � � � . � . � r � . . . . . �IEAs �ur T� n�ant -� IJp to �l�q,�� or 2 y�ars. Can apply for dit�o��l �ra� �ft�er � y ar eri d, �ae arch 2Q12 . N A's Art �rl�s Gr�r�t —�Ip t� l 0,� .�ue Marc� 2Q12 Ar IP�ac� ��l Q, Ot� -� Q,��. Due aepternber 2�12 F�r+ecast Publ��c Art — to � O,�Q�. C�u� Nov�mber 2012 �+�K�ight Founda�i�n -- to $7�Q,Q��. �ue Apr�l ��12 � � . � � � � � . ■ � 1 � � 1 �r M � � +� 1 • �rt brid�e� he �n�r�y cu�t�res r�preser�ted �n �halcopee � Art is tr�r�s� rm�#i n�1 t �p�e �nd �eig bar oods � rt in fih� �rea i� o�n t�e rise � c� t C� r�t�r �r# Crawl in thir year • lN��nn+��o�a iv�r �rt� F�ir deb�ts thi� year • Shakopee is cult�ura�ly behir�d +ather° su�urbs and regi�nal centers ir� its support af t�e arts � t�rgan��a#�ons h�rve �st��l�s�►�d gr n�ts f�r jus# this purpQSe � � � � • � � . � ■ "�►r� arts•b�sed econ�my can enhar�ce sta�� effarts to diversify� rural econor�ies, r , i r� i ° e, an tr ct i i rs n � s t. I�e s �t ri u r s and c 1 1 i strie , i,� is , r iv� eco ic s ctors. . �` i Cti iI � ndtxrvnu , rt � i �° � i, r il il� �e in ny � u i�' , r iv t ri . t a e i ly desirabte qu lity af � r i�s � rc rs �o � rther sti 1 te the . �� I� ��r �� .� � �� ,��.� ational vern rs ss ciati ��r��er � r est rac�tices, 1/� . � . a � � � � � ire i r�? • Ta I�eep this hisfioric civi� buildinc� �live �s a public space � �'he bui�ding has grea� character • T� build on the invested equity instead afi s�lling short •� r��ent ca p��nding exi�ting vacancies � � �� ze v�lopr��nt �n ar�a • The bu�l�ir� is �a�d f�r • ts c�r»�ar��m+en�a� s#ructure is conducive �far �aw investment, f�exi le sc�lable sustair�abl� growth � I� is po�itioned in the r��ddle of ar� area where art is already h�ppeni�g