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City outlines phased land exchange with school district; asbestos, funding and timing highlighted
Summary
City staff reported progress on a phased land exchange with the local school district, saying contracts will be signed May 21 and that asbestos and coal-related contamination assessments are underway; staff described phased moves of facilities, short-term internal funding, and need for future public funding.
City staff provided a detailed update on a multi-phase land exchange intended to reposition municipal facilities and school-district space, outlining due diligence, contingency steps and funding expectations.
A staff presenter said "the paperwork has been done. The school district board actually approved the ability to sign it. On May 21, there will be signatures applied to the contracts," marking the start of property transfers. The presenter said the exchange is planned in phases: the school district will renovate the old library to house district staff, freeing the Heck Building for the city to move courts and police there; the city will then renovate other spaces and eventually update the municipal quad.
Staff described due diligence steps that included review by the city attorney, contracted counsel, and the school district's attorney, and said environmental assessments had identified asbestos in the older buildings and raised the issue that coal used in historic heating systems can be radioactive. Staff expects assessment results "by the end of this month, sometime in the June" window and said mitigation would be expensive; staff said they are pursuing grant opportunities for remediation.
Operational work described included electrical upgrades (moving from single-phase to three-phase service), security planning for court and police evidence storage and controlled public access, and RFPs for architectural and construction services focused on historical building rehabilitation. Staff said much of the early work will be funded through an established project code and budget-managed after July 1, with longer-term funding decisions to come to the public when larger capital asks are needed.
Council members expressed concern about public perceptions and turnout for future funding requests; staff said early public education and transparency will be important. The presenter also noted short-term plans such as relocating playground equipment to parks and working with local architecture programs (including an MSU community design center) to involve students in planning.
The update closed with staff confirming phased scheduling, continued environmental testing and the need for subsequent budget approvals for larger remediation and renovation phases.
