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62 <br /> EHLER <br /> & ASSOCIATES, INC <br /> ® To: Mike Mornson—City Manager <br /> 2 From: Stacie Kvilvang—Associate Financial Advisor <br /> WSubject: Stonehouse Redevelopment <br /> Date: February 4, 2003 <br /> In September 2002, a Task Force was formed to explore the feasibility of having the City construct a <br /> new Fire Station and Public Works Facility. The Fire Department was of the opinion that a new <br /> facility is needed because the current facility was never built/designed as a Fire Station. In light of <br /> this, the facility is obsolete for the Fire Department's operational needs and code and accessibility <br /> requirements. Likewise, the current Public Works Facility is also functionally obsolete and does not <br /> meet the needs of the Department. Both Departments are of the opinion that they require a new, <br /> functional and safe facility that can meet the current and future needs of the City's residents. <br /> As you are aware, the Fire Station is currently located on what is commonly referred to as the <br /> Stonehouse site. Located on this site are the Fire Station and a strip mall that contains the Stonehouse <br /> Restaurant, one of the City's Municipal Liquor Stores and additional retail uses. Currently the <br /> structures on this property are over 40 years old and in need of substantial renovation and/or removal <br /> in order to compete with today's retail market/needs and to keep the center economically viable for <br /> the City. <br /> At the October 8, 2002 City Council work session, the Council directed staff and Ehlers to interview <br /> interested developers to ascertain their interest in redeveloping the above referenced site, if the Public <br /> Facilities Task Force provided a positive recommendation to construct a new Fire Station/Public <br /> Works Facility. The rationale for this was that the City needs to have an understanding of what it's <br /> options are for the existing Stonehouse site and if any of the options are financially feasible and/or <br /> can assist in offsetting the cost of constructing a new Public Works/Fire Station Facility. <br /> Since that time, we have discussed the project with a couple of developers, one which showed an <br /> immediate interest in redeveloping the site. This developer, Amcon Construction, has extensive <br /> experience in redevelopment, new commercial, office and industrial development, as well as <br /> construction and construction management services. Staff relayed the following key points of the <br /> redevelopment to Amcon Construction: <br /> 1. The City would like to retain an 8,000-10,000 sq/ft municipal liquor store on the site <br /> 2. The City would like to have a new restaurant that would accommodate the existing pull tab <br /> establishment on site <br /> 3. The City would like to see an outdoor seating space accommodated by the restaurant <br />