Public Safety Facility Project

Big Lake Public Safety Facility Project – How Did We Get Here?

The location of Big Lake City Hall has long been a topic of community discussion. Many residents, as well as elected and appointed officials, have questioned whether it makes sense for a non-taxpaying entity to occupy one of the city’s most valuable and visible properties.

For decades, the eastern portion of the City Hall building operated as the privately owned Carousel Works Event Center. Its presence limited the City’s ability to pursue meaningful redevelopment, even as the building continued to deteriorate.

In 2021, the Carousel Works owner chose to retire and list the property for sale, creating a new opportunity for redevelopment. The Big Lake Economic Development Authority (BLEDA) monitored the listing closely and maintained contact with the owner throughout the listing period.

It soon became clear that private redevelopment of the Carousel Works site was not feasible due to several factors:

• The structure did not qualify for historic designation, eliminating a key source of renovation funding.
• The building’s condition required an investment too large for private financing to support.
• The site was complicated by two parcels under two different owners, with one building crossing both and sharing utilities, which limited redevelopment options for either parcel.

For meaningful redevelopment to occur, the city needed full site control. As the asking price continued to decrease, the BLEDA grew concerned that an investor might purchase the property only to hold it, with no intention of improving, renovating, or demolishing it.

To safeguard the long-term redevelopment potential of the valuable site, the BLEDA determined that purchasing the oldest portion of the building was the most prudent course of action. The BLEDA unanimously approved the purchase, and the building was acquired in 2023 for $375,000.

Process

After the purchase, a Joint Big Lake City Council and BLEDA Workshop was held to discuss the Carousel Works/City Hall Redevelopment Project. The group reached consensus that staff should bring further recommendations to the Public Building Planning Committee (“Committee”) regarding the relocation of City Hall, ensuring that its presence would not hinder redevelopment of the site.

The Committee quickly began its work and determined that a comprehensive review of both City Hall and the Big Lake Police Department was necessary. This review assessed current and future space needs, operational efficiency, and security requirements. The findings revealed significant deficiencies in both facilities, indicating that major renovation or replacement would be required. Ultimately, it became clear that constructing a new Public Safety Facility would provide the most effective long-term solution.

Site and Facility Planning

The Committee evaluated several potential sites and existing buildings. After a year of analysis and review of nine site locations, the Committee determined that the corner of Minnesota Avenue and County Road 43 was the most suitable option. This location also presented opportunities to attract future business development. On December 5, 2024, the BLEDA acquired a 5-acre parcel, now known as the Smith Addition, for $150,000 to secure the site for a new facility.

During this planning phase, the city also determined that combining City Hall and the Police Department into a single facility would provide long-term benefits, including improved efficiency, enhanced security, and cost savings.

The Committee also determined that the new facility should include space for the Big Lake Great River Regional Public Library. By relocating the library to the new facility, the current Police/Library building would become fully available for other uses. The Great River Regional Library Board of Directors is expected to formally accept or decline the new space by May 2026.

Design and Pre-Construction Work

The Committee retained Bradbury Stamm to conduct a space needs analysis, develop preliminary site designs, prepare cost estimates, and guide the planning process. Committee members and staff toured seven recently completed public safety facilities across Minnesota to gather best practices and insights.

Bradbury Stamm presented a project estimate of $31.1 million, covering City Hall, the Police Station, and the Public Library. The Committee recommended a not-to-exceed budget of $33 million, which the City Council approved by consensus. A hybrid Construction Manager at Risk (CMAR) delivery method was selected to keep both design and construction responsibilities within a single firm. In this approach, the construction manager commits to completing the project within a guaranteed maximum price while overseeing both the design and construction phases.

Financing

After evaluating several bonding options, the Committee and staff determined that Lease-Revenue Bonds were the best financing method. This approach allows the City to move forward efficiently and reduces the risk of cost escalation due to market conditions. Lease-Revenue Bonds have historically been utilized for major City projects, including City Hall, Lake Liquors, Public Works Facility improvements, and the Big Lake Fire Station.

The city facilitated a Request for Qualifications/Request for Proposals CMAR recruitment process (state mandated) for construction management services, and three firms submitted proposals. After a thorough review and interviews with each firm, Bradbury Stamm was selected as the low bidder and the firm best aligned with the City’s vision. Their approach emphasizes safety, operational efficiency, and a practical, needs-based design that meets the community’s requirements while maintaining fiscal responsibility.

Benefits and Broader Impact

Maintaining and replacing public buildings are a necessary part of providing municipal services. Facilities age, and community needs evolve. This project offers several important benefits to the community, including the redevelopment of a highly visible City property, new development potential east of County Road 43 and near the industrial parks, consolidation of City Hall and the Police Department to improve efficiency and safety, and the opportunity to sell City-owned properties no longer needed after consolidation.

This project has been discussed for many years. Rising construction costs emphasize the importance of acting now. For example, the Wastewater Treatment Facility Expansion Project was estimated at $18M in 2018 and is now projected at more than $60M. Acting now helps protect taxpayers from similar cost escalations.

Fiscal Responsibility

The City of Big Lake has a long-standing reputation for fiscal responsibility. The City Council and staff remain committed to delivering a high-quality project at the lowest reasonable cost. The City also benefits from having a council member who is qualified to serve as the required Owner’s Representative, saving an estimated 1-5% of total construction costs under state law.