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MINUTES/FINANCE-DEVELOPMENT COMM.
Wednesday, June 18, 2003 - 4:30 p.m.___________

Members present: Christensen, Glassheim, Gershman, Hamerlik

Staff: Rick Duquette, Chief Packett, Chief O'Neill.

2.1 Civic Auditorium.
2.2 Parking lot lease at civic auditorium.
2.3 Southend fire station.

Hamerlik stated he placed this on the agenda, have had previous discussion and as work with the budget, specifically the parking lot lease and the southend fire station, two big lots that are available but not really being used by the City - the southend or midtown station is in one plot of ground and City put together some information having to do with what it costs and what special assessments are; that the civic auditorium parking lot across the street has been in a lease to the Public School System for several years and use shared, and while we may need part of it, we should consider what we want to do with that lot; the School District had it for several years, the City is doing major maintenance and paying special assessments on dike, etc. and doesn't seem that the current contract is appropriate - we should renegotiate that and asked if that is what we need as far as the civic auditorium and the occupancy there, currently there could be some spots saved and jointly used, or could sell it but maybe not wise way to go although if we enter into a lease, would want to make sure there was some way to get out of it if deal came along where we could sell it and since School District uses it, that would be the group we would want to negotiate with first with usage as they do need it and they play an important part in our downtown.

Hamerlik stated that he was on the School Board at the time, Bob Simons and Cy O'Neill were the mayor and manager and the School District people used to park behind where Lola's is at this time, and there was much damage going on down there and needed to get their cars out, that might have occurred later but that it was a friendly situation - as we didn't need all the space on certain days.

Rick Duquette, adm. coordinator, stated he had asked Saroj Jerath in finance department to track down what we have with the School District re. the civic auditorium parking lot, lot located to the north of the civic, about 133 spaces and City gets $5,872 each quarter from the School District for the leasing of that parking lot, upwards of $20,000+ year for that use. He stated he has copy of lease from 1988, latest able to find and Ms. Jerath said there has been a revised agreement and hasn't tracked that down, $5872/quarter.

It was noted that the question is what is the City's cost of holding onto the property vs. what is our net on that, and $0.17 sq. foot for the special assessments. Mr. Duquette stated 55,500 sq. ft. for the parking lot located to the north - $9,435 would be gross share of specials for the 20 years. He stated we pay a total of $1,863.53 for special assessments (dike) and assumes for the civic and the parking lots.

Hamerlik stated he would like to make recommendation to the council for staff to look into it to see if it should be renegotiated and if so, go to the School District, because we don't want to do anything here to upset this for them but refer it to the council to see if renegotiate or reconsider with the School District. Christensen stated that was appropriate and thinks that the information that has been provided may not be complete and if Mr. Duquette could update the information to see if find any additional documentation and supply it to the committee, what they are paying and any subsequent documentation so that all have the same information and review it to make a recommendation as part of the budgeting process. Hamerlik stated one of the reasons for having it done before they start back to school in August, and would want to talk to them ahead of time, and if recommend to council that we instruct staff to dig some of this out and come back, don't have to have special meeting and at one of their other meetings be tuned into it - that he has talked with the Supt. of Schools twice to let him know what he was thinking as he was involved in this way back when and should stay involved. Christensen stated he agreed and should get this matter updated so documentation current.

Mr. Duquette stated another item for consideration is the parking lot at the civic auditorium as the County has made some overtures to us re. leasing the civic auditorium and that he and the County administrator have worked some preliminary numbers and will be bringing this to the council for review and approval, lease would be for a 10-month period, they would be moving over 53 employees, the lot to the west of the auditorium has 33 slots and when the civic was operational they would chain off the southern half next to the civic and that contained another 35 slots inside the chained off area so there were be more than enough space to accommodate them. He talked with the principal at Central to give him a heads up to pass up his chain, that they probably would continue that type of relationship and they would have everything to the north as they have previously beyond that chained area.

Hamerlik asked when they are going to be talking about the lot next to the mid-town station or southside fire station and if that is coming up in one of the budget meetings. Mr. Duquette stated there were some preliminary thoughts about that in one of the other meetings - not the paved lot around the mid-town station but the grassy area we own to the west of that. Hamerlik stated that a real estate person previously on the Board said it's worth half a million dollars, but if going to build more on that station, paying specials on that for the dike and we're only cutting the lawn. (loc. 17th and 20th where Community Resource people are located)

Mr. Duquette stated one of the things to consider in discussion is that the land that was purchased adjacent to that station (southend) was so the fire department could operate a test pit in that location, where they start fires and spray out. Chief O'Neill stated that the test pit is right off the parking lot property and they still utilize it, is the only test pit they have and have to test their trucks at least once a year and when shared, shoot the water into that area and would probably have to move the test pit to a different location, which would be substantial dollars. Mr. Duquette stated if they sell one piece of that property, not sure the other piece would be very marketable when comes time to sell. Hamerlik suggested that maybe should sell both. - or keep both.

Hamerlik stated that while now negotiating with the County for the civic auditorium, when is discussion going to transpire about the usage of those two facilities. Mr. Duquette stated he is reluctant to give up any space facilities we have at this time, the police department is in the mid-town station, seeing an on-going need for storage of weapons of mass destruction equipment, pool of fire equipment, police equipment and have main floor of civic packed with that stuff, and reluctant to suggest that we get rid of anything, and find out down the road need to replace something. Hamerlik stated there may be the possibility of re-leasing of one lot to the School District with a new contract, if it's wise to sell the one at mid-town and had considerable discussion about the usage of the other two buildings at one meeting and hasn't heard anything since that time other than the County - Glassheim noted that have pre-empted the discussion of any uses of the civic for 10 months to a year. Hamerlik stated if that is it - then set it aside for 10 months - but an ultimate goal of mind would be, whenever have a facility that isn't being used or we can't do something with it, ought to try to get it on the tax rolls rather than let it sit. Glassheim stated we have tried to get the civic on the tax rolls for a couple years.

Christensen stated we've had some conversations concerning 911 and putting them in the basement of the civic, some conversations concerning the police department coming over and some issues the fire department had re. putting their equipment in the mid-town building and weren't resolved - he asked Chief Packett if they foresee continued need for the Community Resource Officers in the southend fire station and what are their long-term plans - next 2 to 5 years for that facility. Chief Packett stated what he and the fire chief proposed a couple months ago to the committee was that they currently have 10 people in an operational bureau working in the mid-town station, and they suggested they could free up that space for city use if in fact they could move an operational bureau to the civic, eventually maybe a second operational bureau as well along with PSAP and that would free-up the mid-town, fire can move to mid-town because they have a need for that space right now as well, can't speak for the fire chief, but over a short term period, 3 to 5 years, once a 4th station training center was opened up out west, that property could be vacated permanently and put on the tax rolls, sold, and talking roughly a 3 to 5 plan of eventually getting that space freed up and put back on the tax rolls if all the plan is aligned and that would come up is County's need to lease the civic - they do have current and long term needs for the space they are in right now - would envision that once this issue is settled with the County at the civic in 10 to 12 months, then can revisit their original proposal of their moving out of mid-town to civic, with some operational bureaus along with PSAP, fire taking over that facility short term and eventually that could go back on the tax rolls long term.

Hamerlik stated that other than the County, the usage of those buildings will be put on the back burner for several months - 10 to 14 months. Mr. Duquette stated that might be appropriate at this time.

Christensen stated he sees the resolution of the short and long term issue is that the civic will be rented to the County for approx. 8 to 12 months and get us through the remainder of this year and won't really have a resolution for the civic as part of the Mayor's budget plan for 2004 other than last half of the year. He stated from a long-term planning standpoint, Chief Packett should decide if we want to have a Community Resource Office in mid-town in its current location but maybe sell off the back lot. He thinks the time has come for us to engage in serious conversation rather than sporadic conversation re. the future needs of the community for a west-end fire station and will have to make an informed decision based upon some long range planning and some projections as to the community for a need out there and how we're going to fund it. He asked that they think about having a study on that in the year 2004, because it is obviously going to be a building community issue and the chief would like it resolved as it has been pushed back 2 or 3 years so should do that and if make a decision to do it, then what are our sources of funding - and thinks there is a space need in this community to start storing some of our stuff - mosquito equipment, weapons of mass destruction, sure that the chiefs can have issues with some of the stuff he is going to be acquiring for his department, and recalls Mr. Aubol approached them for building and going to have to address a storage issue -- building issue should be studied and presented and worked through in the year 2004; and asked if they would consider that. He stated that maybe time has come to bifurcate that building into affordable housing upstairs and offices downstairs - people doing lofts and lobbies in other communities and if have a community building city building, then perhaps make some money with housing downtown and seems extremely possible solution to the civic right now. Mr. Duquette stated there have been many tours and visits at it and some of those ideas have come across the board. Christensen stated they have some work to do in the next 18 months.

The meeting adjourned at 5:10 p.m.

Alice Fontaine
City Clerk

Dated: 6/26/03