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Council Accepts EDA Recommendation to Negotiate Sale of Former Fire Station to Local Restaurateurs
Summary
After an extended discussion, the council voted to accept the EDA’s recommendation to begin negotiations with a Tappan Ladder / Machete team to purchase and redevelop the former fire station and parks building into a tap house and a Machete Cocina Mexicana location; staff outlined next steps including appraisal, closed-session negotiation and potential purchase/development agreement with clawback provisions.
The Lake Elmo City Council voted to accept the EDA RFP committee’s recommendation and to begin negotiations with the Tappan Ladder / Machete team to acquire and redevelop the former fire station and parks building.
Director Stoeffer summarized the RFP process: the City issued an RFP on June 17, 2025, received nine proposals and the EDA committee ranked three finalists, recommending the Tappan Ladder / Machete team as the top choice. Stoeffer said the committee emphasized community benefit, preservation of the historic fire station, streetscape improvements and creative parking solutions in its scoring rubric.
The proposers’ concept described converting the fire station into a self-pour tap house with roughly 150 seats and converting the Parks Building into a second location of Machete Cocina Mexicana with a patio overlooking Lions Park. Stoeffer provided preliminary economic estimates: just under $1,000,000 to build out the fire station and just over $700,000 for the Parks Building; proposed employment totals were presented (approximately 3 full-time and 20 part-time for the tap house; about 3 full-time and 17 part-time for Machete). Parking analyses offered multiple scenarios with estimated ranges from roughly 30 to 65 spaces depending on final layout and shared parking arrangements.
Council members probed process details including appraisal methodology (appraisal to reflect proposed lot split and preferred layout), next steps (closed session for pricing and conditions, survey and easement work, appraisal), protections such as clawback or buyback provisions if the developer fails to perform, and whether any business subsidy or tax-increment financing (TIF) would require additional review. City counsel said that purchase and development agreement terms — including clawback language and any subsidy conditions — would be negotiated and could require deposits to cover adviser costs if TIF or subsidy requests are made.
Several council members voiced support for the recommendation, citing strong community input and alignment with downtown Old Village planning; one member suggested staff be authorized to retain outside expertise for subsidy and TIF analysis. A motion to accept the EDA’s recommendation, begin negotiations with the Tappan Ladder / Machete team, and authorize staff to retain additional professional assistance passed by voice vote.
Staff identified anticipated next steps if council directs negotiation: closed-session pricing and term discussions, survey and easement work, obtaining an appraisal based on the preferred layout, and preparation of a purchase and development agreement. The council indicated a target closing in January–February if negotiations proceed.
