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HomeMy WebLinkAboutNovember 5, 2007 Work SessionMavt,r CITY OF COLUMBIA HEIGHTS "°r'''.''```r""' Councilmembers Rabrrt.9 6141Ru,nc B,vee Nutvrnck, 590 40`" Avenue NE, Columbia Heights, MN 55421-3878 (763)706-3600 TDD (763) 706-3692 7wnn,rra I);eh,» Visit our website at: wwio.ci.columbia-heiphts.mn.us Hruc'e Kr~a~'„bvrk City Manager 17'ul,er l2. he/u~, 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. 1 • 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 3 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? 5 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