Decorah council reviews three options for new fire station and municipal space; approves proclamation supporting bond vote

Decorah city staff presented cost estimates and program options for a proposed municipal bond referendum to fund a new fire station and related municipal building needs. Council received estimates for three primary approaches: new construction on the existing municipal site, new fire station plus partial demolition/renovation of the existing municipal building, and new fire station plus acquisition/renovation of the BMO building on Water Street. After discussion council approved a proclamation encouraging a yes vote on the November 4 bond referendum.

Key figures presented by staff (ISG cost estimates summarized by City Manager Travis): - New on‑site fire station plus all municipal operations in new construction: estimated all‑in cost about $18,440,000 (approx. $658 per usable square foot, includes contingency and construction‑manager fees). - New fire station with partial demolition and renovation of the existing municipal building (adaptation for administration, parks and recreation): estimated all‑in cost about $17,000,611 (approx. $580 per usable square foot). - New fire station with renovation of the BMO building (several scope levels were priced): renovation of the main floor only (plus MEP upgrades) estimated about $19,375,000; renovating main and lower arcade raised estimates; renovating all floors was the largest option (~$21,000,000). Staff noted acquisition costs for BMO were not included in those figures.

Staff discussed potential ways to reduce demolition or renovation costs by partnering with the county for emergency management space and proposed lease strategies if the city pursued the BMO building (e.g., triple‑net lease for tenant improvements, city to handle MEP/roof as core work, private tenants to fund leasehold improvements). Staff also noted the BMO building has recent mechanical/electrical upgrades in parts of the building (chiller, boiler) but would require elevator/A DA changes and significant MEP work to meet modern office use.

Council debate focused on tradeoffs between downtown civic presence and long‑term maintenance/rental risk. Supporters argued downtown accessibility and program synergies (restrooms, arcade pop‑ups, available tenant interest) could justify pursuing BMO; critics warned that the scale of renovations and uncertain rental revenue could create a long‑term fiscal burden. Several councilmembers asked staff to continue negotiations with potential tenants and BMO ownership and to provide refined revenue/rental estimates.

The council voted to adopt a proclamation encouraging the community to vote in favor of the bond referendum (motion carried by roll call). Staff will continue public information sessions (additional community meetings and building tours were scheduled) and provide updated financial and lease revenue assumptions to council before the election.