Lake Elmo EDA recommends Tap and Ladder proposal to City Council for Old Village fire station redevelopment

The Lake Elmo Economic Development Authority recommended that the City Council enter negotiations with the Tap and Ladder/Machete team to redevelop the Old Village fire station and adjacent Parks Building, following a ranked-choice vote among three finalists.

The recommendation follows presentations from three finalist teams — Tap and Ladder with Machete Cocina Mexicana; River Siren Brewing with a Lake Elmo Commons mixed-use plan; and Old Village Social (a microbrewery, brick-oven pizzeria and indoor/outdoor mini-golf concept). The EDA voted by paper ballot using ranked-choice rules; the initial tallies were 5 votes for Tap and Ladder, 3 for Lake Elmo Commons and 2 for Old Village Social. After elimination of the third-place choice and reallocation, the final recommendation was 6 votes for Tap and Ladder and 4 for Lake Elmo Commons. The EDA will forward that recommendation to the City Council; staff said the council will consider the item at its next meeting and then may move into a closed session to negotiate details and award terms.

Tap and Ladder’s proposal, led by Brian Hite and partners including Julian Ocampo, would repurpose the fire station as a roughly 150-seat self-pour tap house with a casual dining menu and a children’s play area; the Parks Building would become the second location of Machete Cocina Mexicana. The Tap and Ladder submission described a self-pour 28-tap wall, flexible indoor seating, a children’s zone and year-round programming. The team told the EDA it has lender preapprovals (including a local bank), about $110,000 in private investment raised after being named a finalist, and partner firms (DSGW Architecture, Prestige Mechanical) committed for design and construction work. In the presentation, Hite said the plan “answers this gap by creating two vibrant gathering places that offer great food, distinctive beverages, a year-round opportunities for connection.”

The EDA’s discussion noted several recurring concerns raised during presentations and commissioner questioning: parking, the physical condition of the Parks Building, financing assumptions (including references to tax increment financing), projected employment and long-term sustainability. Tap and Ladder’s slides estimated off-street parking provision of roughly 30–50 spaces and an estimated parking need range of about 47–65 spaces; the team said parking requirements in the village Mixed Use District can be waived under city code because of available on-street and shared lots. Tap and Ladder’s submission included estimated full-time and part-time staffing counts (three full-time positions for each primary use and larger part-time rosters). The application noted the team intends the parking to remain open to the public.

River Siren Brewing’s joint proposal with a Lake Elmo Commons mixed-use building emphasized a brewpub and a mixed-use structure with retail and 8–12 dwelling units. River Siren said the brewpub would house a taproom and a brewing system with an initial conservative on-site sale estimate of roughly 500 barrels in year one and buildout costs cited for the brewery component near $750,000; the mixed-use component’s buildout/economic impact was presented at about $6.1 million and 11–18 full-time-equivalent jobs in total, depending on final tenant mix. The team proposed a combined purchase offer of $200,000 ($100,000 for each entity on the site) and showed a site plan with approximately 40 off-street spaces; staff and presenters cautioned parking needs could range higher depending on unit counts and retail mixes.

Old Village Social (presenters Regina and Rob Clapp) proposed a more entertainment-focused reuse: a brick-oven pizzeria, a small on-site microbrewery and taproom, an arcade/event space and an artist-designed indoor/outdoor mini-golf attraction in the Parks Building. Their packet estimated a total buildout near $2.9 million and 20–25 FTEs (not including construction). Their site plan estimated 28 provided off-street spaces and projected parking demand between 58 and 81 spaces under different scenarios.

EDA members repeatedly pressed applicants on contingency planning if the city declined tools such as tax increment financing (TIF). Tap and Ladder and River Siren indicated they were prepared to proceed without TIF if necessary and that TIF was presented as one of several financing options to reduce developer debt service and improve rental affordability for retail tenants. River Siren also discussed operational shifts that accompany a brewpub model (a brewpub liquor license limits distribution and emphasizes on-site sales) and estimated recent Stillwater operations used roughly 350,000 gallons of water annually, most of it non-brewing use (restrooms, dishwashing), noting water treatment/RO systems are options to address local water quality concerns.

Several commissioners emphasized the proposals’ potential to increase foot traffic and enliven the Old Village. At the same time, members voiced skepticism about rental-rate assumptions in mixed-use pro formas, concerns about construction and maintenance costs for a high-amenity public realm, and the uncertainty of projected full-time-equivalent job counts until tenant leases and final designs are secured. One EDA member urged unsuccessful proposers to return with similar concepts for other sites if this award does not proceed as planned.

The EDA’s formal motion recommended the City Council accept the Tap and Ladder bid and direct staff to place the item on the council agenda for consideration; staff said that item is scheduled for the council meeting on October 7 and that any final award would be preceded by a closed-session negotiation of terms. The EDA recorded the recommendation vote as 6 in favor, 0 opposed.

If the council approves the recommendation, staff told the EDA the next steps will include detailed due diligence (building surveys and final cost estimates), drafting a purchase and development agreement, and, if necessary, additional public meetings and closed-session review of negotiation terms. The EDA chair and staff said councilmembers may review the EDA meeting video and speak with EDA members before the council deliberation.

The EDA’s recommendation does not itself authorize a sale or a contract; it is a formal referral to the City Council for final action and negotiation.