HomeMy WebLinkAboutNovember 5, 2007 Work SessionMavt,r
CITY OF COLUMBIA HEIGHTS "°r'''.''```r""'
Councilmembers
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590 40`" Avenue NE, Columbia Heights, MN 55421-3878 (763)706-3600 TDD (763) 706-3692 7wnn,rra I);eh,»
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City Manager
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ADMINISTRATION
NOTICE OF CITY COUNCIL MEETING
to be held in the
CITY OF COLUMBIA HEIGHTS
as follows:
Meeting of: COLUMBIA HEIGHTS CITY COUNCIL
Date of Meeting: MONDAY, NOVEMBER 5, 2007
Time of Meeting: 7:00 P.M.
Location of Meeting: COUNCIL CHAMBERS
Purpose of Meeting: WORK SESSION
AGENDA
1. Public Safety and Community Center overview and update
The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to,
or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be
provided to allow individuals with disabilities to participate in all City of Columbia Heights' services,
programs, and activities. Auxiliary aids for handicapped persons are available upon request when the
request is made at least 96 hours in advance. Please call the City Council Secretary at 706-3611, to make
arrangements. (TDD/706-3692 for deaf or hearing impaired only)
TO: Mayor and City Council Members
FROM: Robert Streetar, Community Development Director
DATE: 29 October 2007
SUBJ: Public Safety and Community Center /YMCA
The purpose of this memorandum is to assist the Council in making decisions regarding
the construction of a public safety facility and community center or YMCA; specifically to
put these decisions in the context of the City's financial capacity and the cost to the
homeowner.
The memorandum presents six development scenarios that contemplate the
construction of a public safety facility and community center or YMCA at the same or
different locations. These scenarios include the estimated construction cost, costs
related to acquisition, demolition, relocation etc, and the cost to the homeowner. The
scenarios are based upon input from the City Council, the activity center advisory
committee (ACAC), and the YMCA community survey.
Definitions
For discussion purposes the following terms are defined:
• Community Center means the building program the ACAC is presenting to the
public for comment at the third open house on November 7th. The center is a
66,243 square foot facility and includes three gymnasiums, locker rooms, walking
track, fitness studio, concessions area, large meeting room with kitchen and
stage, children's play area and patron child care. Total estimated cost is
$14,457,163, with the entire cost paid by taxes and membership fees.
• Modified Community Center means the Community Center, less the childcare
space, gathering space and one gymnasium, leaving two gymnasiums. The
modified center is a 35,000 square foot building with an estimated total cost of
$10,000,000, with the entire cost paid by taxes and membership fees.
• YMCA means a 49,100 square foot facility that includes a fitness center, locker
rooms, multipurpose space, office and meeting space, and two gymnasiums with
a walking track and a pool. The total estimated cost $12,000,000. This scenario
contemplates the City using cash and bond proceeds to up front the construction
costs, with the YMCA paying 33% of the cost of construction via a lease, and the
City paying the remaining 66%. This is a similar arrangement the YMCA has
with the cities of Elk River and Andover.
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• The Public Safety Facility means both a police and fire station in a 38,706 square
foot building. The facility includes 17,599 square feet allocated for the police
department, 12,710 square feet allocated for the fire department and 8,397
square feet of shared space. Total estimated cost is $10,550,000, with the entire
cost paid by taxes.
• City General Obligation Bonding Limit means $28,000,000 for pay 2008. This is
the maximum the City can barrow.
Scenarios
The following are six scenarios for the City Council to discuss:
Scenario #1 -Public Safety Facility~a 47th & Community Center ~ NEI
This scenario locates the public safety facility at the southeast corner of 47t" and Central
Avenues and the community center at NEI.
The total estimated cost to construct both facilities is $31,960,191. This includes
$10,550,000 to construct the public safety facility, $14,457,163 to construct the
community center and approximately $6,953,028 of acquisition, demolition, relocation
and other associated costs. After the reduction of $4,000,000 in cash, the amount the
Council appropriated for the community center, the amount to be financed would be
$27,960,191.
The table below shows the City property tax paid between 2008 and 2015. The
"property tax" is the tax paid based upon a 3% per year increase in the budget and not
building anything. The "debt portion" is the additional property tax paid for the public
safety facility and community center. This amount is based upon bonding for
$27,960,191 over 30 years at 5%.
2008 2009 2010 2011 2012 2013 2014 2015
Property Tax* 777 826 842 852 900 964 1033 1,132
Debt Portion 0 123 163 209 210 215 259 243
Total Property Tax 777 949 1005 1060 1,111 1,179 1, 292 1, 375
*Property tax based on a home with an estimated market value of $200,000 that app reciates 5% annually, a nd after the market
value homestead credit and regular property tax refund are applied.
Scenario #2 -Public Safety Facility~a 47th & YMCA ~ NEI
This scenario locates the public safety facility at the southeast corner of 47th and Central
Avenues and the community center at NEI.
The total estimated cost to construct both facilities is $29,503,028. This includes
$10,550,000 to construct the public safety facility, $12,000,000 to construct the YMCA
and approximately $6,953,028 of acquisition, demolition, relocation and other
associated costs. After the reduction of $4,000,000 in cash, the amount the Council
appropriated for the community center, the amount to be financed would be
$25,503,028, with the YMCA paying 33% of the annual debt service.
2
The table below shows the City property tax paid between 2008 and 2015. The
"property tax" is the tax paid based upon a 3% per year increase in the budget and not
building anything. The "debt portion" is the additional property tax paid for the public
safety center and community center. This amount is based upon bonding for
$27,960,191 over 30 years at 5%.
2008 2009 2010 2011 2012 2013 2014 2015
Property Tax* 777 826 842 852 900 964 1033 1,132
Debt Portion 0 123 152 182 183 187 229 212
Total Property Tax 777 949 995 1,034 1,083 1,151 1,261 1,343
"Property tax based on a home with an estimated market value of $200,000 that appreciates 5% annually, and after the market
value homestead credit and regular property tax refund are applied.
Scenario #3 -Public Safety Facility~a 41St & Community Center ~ NEI
This scenario locates the public safety facility on 41St avenue, south of NEI and the
community center at NEI.
The total estimated cost to construct both facilities is $28,940,623. This includes
$10,550,000 to construct the public safety facility, $14,457,163 to construct the
community center and approximately $3,933,460 of acquisition, demolition, relocation
and other associated costs. After the reduction of $4,000,000 in cash, the amount the
Council appropriated for the community center, the amount to be financed would be
$24,940,632.
The table below shows the City property tax paid between 2008 and 2015. The
"property tax" is the tax paid based upon a 3% per year increase in the budget and not
building anything. The "debt portion" is the additional property tax paid for the public
safety center and community center. This amount is based upon bonding for
$24,940,632 over 30 years at 5%.
2008 2009 2010 2011 2012 2013 2014 2015
Property Tax* 777 826 842 852 900 964 1033 1,132
Debt Portion 0 102 140 187 189 193 235 218
Total Property Tax 777 928 982 1,039 1,089 1,157 1,267 1,350
*Property tax based on a home with an estimated market value of $200,000 that appreciates 5% annually, and after the market
value homestead credit and regular property tax refund are applied.
Scenario #4 -Public Safety Facility 41St & YMCA ~ NEI
This scenario locates the public safety facility south of NEI on 41St avenue and the
YMCA at NEI.
The total estimated cost to construct both facilities is $26,483,460. This includes
$10,550,000 to construct the public safety facility, $12,000,000 to construct the YMCA
and approximately $3,933,460 for acquisition, demolition, relocation and other
associated expenses. After the reduction of $4,000,000 in cash, the amount the
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Council appropriated for the community center, the amount to be financed would be
$22,483,460, with the YMCA paying 33% of the annual debt service.
The table below shows the City property tax paid between 2008 and 2015. The
"property tax" is the tax paid based upon a 3% per year increase in the budget and not
building anything. The "debt portion" is the additional property tax paid for the public
safety center and community center. This amount is based upon bonding for
$22,483,460 over 30 years at 5%.
2008 2009 2010 2011 2012 2013 2014 2015
Property Tax* 777 826 842 852 900 964 1033 1,132
Debt Portion 0 102 130 160 161 165 169 187
Total Property Tax 777 928 972 1,012 1,062 1,129 1,202 1,318
Property tax based on a home with an estimated market value of $200,000 that appreciates 5% annually, and after the market
value homestead credit and regular property tax refund are applied.
Scenario #5 -Public Safety Facilitysa7 NEI & YMCA Ca) Huset Park
This scenario locates the public safety facility south of NEI on 41St avenue and the
YMCA at Huset Park.
The total estimated cost to construct both facilities is $23,250,000. This includes
$10,550,000 to construct the public safety facility, $12,000,000 to construct the YMCA
and approximately $700,000 for acquisition and other associated expenses. After the
reduction of $4,000,000 in cash, the amount the Council appropriated for the community
center, the amount to be financed would be $19,250,000, with the YMCA paying 33% of
the annual debt service.
The table below shows the City property tax paid between 2008 and 2015. The
"property tax" is the tax paid based upon a 3% per year increase in the budget and not
building anything. The "debt portion" is the additional property tax paid for the public
safety center and community center. This amount is based upon bonding for
$19,250,000 over 30 years at 5%.
2008 2009 2010 2011 2012 2013 2014 2015
Property Tax* 777 826 842 852 900 964 1033 1,132
Debt Portion 0 79 106 137 138 141 145 160
Total Property Tax 777 906 948 989 1,038 1,105 1,178 1,291
*Property tax based on a home with a n estimated market value of $200,000 that app reciates 5% annually, and after the market
value homestead credit and regular property tax refund are applied.
Scenario #6 -Public Safety Facility NEI & Modified Community Center ~ NEI
This scenario locates the public safety facility and the modified community center at
NEI.
The total estimated cost to construct both facilities is $21,250,000. This includes
$10,550,000 to construct the public safety facility, $10,000,000 to construct a modified
community center and approximately $700,000 for acquisition and other associated
4
expenses. After the reduction of $4,000,000 in cash, the amount the Council
appropriated for the community center, the amount to be financed would be
$17,250,000.
The table below shows the City property tax paid between 2008 and 2015. The
"property tax" is the tax paid based upon a 3% per year increase in the budget and not
building anything. The "debt portion" is the additional property tax paid for the public
safety center and community center. This amount is based upon bonding for
$17,250,000 over 30 years at 5%.
2008 2009 2010 2011 2012 2013 2014 2015
Property Tax* 777 826 842 852 900 964 1033 1,132
Debt Portion 0 79 115 160 162 165 169 187
Total Property Tax 777 906 957 1,012 1,062 1,129 1,202 1,319
*Property tax based on a home with an estimated market value of $200,000 that appreci ates 5% an nually, and after the market
value homestead credit and regular property tax refund are applied.
Summary
The City is considering building a public safety center, and a community center possibly
in partnership with the YMCA. There are six different scenarios to consider. Staff seeks
the following direction.
Are there any scenarios Council does not want to pursue?
Which scenario or scenarios does Council want to pursue?
Are there scenarios not listed that Council wants to pursue?
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SCENARIOS SUMM ARY
SCENARIO #1
PUBLIC SAFETY @ 47'h
COMMUNITY CENTER a~ NEI
SCENARIO #2
PUBLIC SAFETY @ 47th
YMCA NEI
USES
PUBLIC SAFETY
BUILDING $10,550,000 $10,550,000
SITE PREPARATION
ACQUISITION $5,217,450 $5,217,450
DEMOLITION $236,000 $236,000
RELOCATION $1,199,578 $1,199,578
LEGAL $100,000 $10D,000
FINANCIAL $100,000 $100,000
CONTINGENCY $100,oD0 $100,000
OTHER $0 $Q
SUBTOTAL $6 953.028 $6 953.028
TOTAL $1 534 Q2$ $1Z5.03d128
COMMUNITY CENTER arYMCA $14457,163 $12.000,000
TOTAL $~ $~,6
SOURCES
CASH ($4,000,000) ($4,000,000)
AMOUNT CITY MUST BORROW 1327.960.1911 (625.503.0281
MAXIMUM CITY CAN BORROW $28,000,000 $28,DOO,ODO
Average Annual Tax Increase $203 $181
SCENARIO #3
PUBLIC SAFETY @ 415'
COMMUNITY CENTER a("~ NEI SCENARIO #4
PUBLIC SAFETY @ 415`
YMCA NEI
$10,550,000 $10,550,000
$2,768,250 $2,768,250
$145,500 $145,500
$719,710 $719,71D
$1ao,ooo $10o,ooD
$10o,ooa $100,000
$100,000 $100,000
$0 $Q
$3.933,460 $3 933,460
$14,486,4~i0 $~~
$14 457,163 $12 000,000
$28.9 4-0,626 $26~$~`}~4
($4,000,000 04,000,000)
($24 940.632! E622 483.450)
$28,ooa,ooa $28,000,000
$181 $153
SCENARIO #5
PUBLIC SAFETY @NEI
YMCA (7a HUSET PARK SCENARIO #6
PUBLIC SAFETY @NEI
MODIFIED COMMUNITY CENTER a(~ NEI
$10,550,000 $10,550,000
$0 $0
$0 $0
$D $D
$o $D
$a $o
$100,000 $100,000
$600,000 $600,000
$700AOp $700.000
$125 0 $1L25-
$12,000.000 $10.000.000
$2~ $-21,259 04Q
($4,000,000} ($4,00Q000)
1319.250 000} $17.250,000
$2e,DOO,ooo $za,ooo,ooa
$129 $148
6