The Crosslake City Council on Monday, Aug. 12, awarded the sale of $3,815,000 in general obligation capital improvement plan bonds to finance construction of the new city hall and the remodel of the current city hall for fire department use.
The city received six bids. The lowest bid received was awarded to Robert W. Baird & Co., Inc., with a 1.9304% interest rate. Total purchase price is $3,844,570.10 with a net interest cost of $657,573.16. Interest rates from other bids ranged from 1.9598% to 2.4766%.
The entire project is projected to cost $5.115 million, with $1.3 million paid with city reserves. Estimated project cost for a new city hall and public safety facility is $3.4 million, and the renovation of the existing municipal building for use as a fire hall is estimated to cost $1.3 million.
Jason Murray, of David Drown Associates, which facilitated the bond sale, told council members that the city has an AA+ rating, a strong bond rating that compares to metro cities. The rating reflects the city’s stable economy, city management and budgetary performance, among other factors. The city saved more than $300,000 in interest because of its AA+ rating.
Andy Waletzko, of Hy-Tec Construction, provided council members with an update on plans for the new city hall building. With assistance from the building committee, Hy-Tec and Widseth Smith Nolting engineering firm came up with a preliminary layout for the new city offices. The new council chambers will seat 100 people, and city administrative offices will be located on one side of the building, while the police department will be on the opposite side and will include a four-stall police garage. A full basement will be built downstairs and used for storage and future expansion. An elevator will be installed.
Waletzko said Hy-Tec would provide the city with the final costs for review as early as this week. The council authorized a special council meeting for 4 p.m. Monday, Aug. 26, to go over the project costs and plan specifications and move forward with the project before winter. Construction is tentatively scheduled to begin at the end of September.
The council in May approved the purchase of seven acres of land at the corner of County Road 66 and Daggett Bay Road to build the new city hall.