Council approves RFP for former fire station and parks building with EDA criteria and subsidy limits

The Lake Elmo City Council on March 18 approved a request for proposals (RFP) for disposition of the former fire station and parks building in the Old Village and accepted the Economic Development Authority’s recommended evaluation criteria.

Community Development staff said the site comprises seven parcels totaling about 1.2 acres, with roughly 0.88 acres buildable. The EDA’s recommended evaluation framework gives 65 points to community benefits (including land use, preservation, public space and parking strategies), 25 points to developer qualifications and 10 points to economic impact. The RFP encourages adaptive reuse of the fire station building and asks respondents to propose streetscape, parking, and public-space improvements that reflect the village character.

Staff told the council the parcel is undergoing a Phase I environmental assessment and an appraisal will be completed after a successful proposal is selected; the EDA recommended a minimum purchase price of $100,000 as a signal of developer interest. The council was also briefed on the state statutory cap for business subsidies discussed by staff: “we’re only allowed to give a business subsidy of up to $150,000,” staff said, and any subsidy would require a public hearing and adherence to a business subsidy policy.

Councilmembers asked about the role of price in the selection and whether TIF or other incentives could be considered; staff said the RFP prioritizes community benefits over purchase price, but a developer could propose financing such as a TIF. The council approved the RFP and the proposed public process, which includes an open building walk-through, a pre-application conference, and a committee review of finalists, with the committee forwarding recommendations to council for final approval.