Otsego council authorizes bids for $21M fire and emergency services building after heated public debate

The Otsego City Council voted Sept. 23 to put plans and specifications for a new fire and emergency services building out for bid, advancing a project staff and consultants estimate at just over $21 million.

The decision followed more than an hour of public comment in which residents and candidates traded arguments over response times, operating costs and whether the city should use an Economic Development Authority (EDA) revenue bond rather than a public referendum. After presentations from the emergency services director and the project’s architects and construction manager, the council approved the motion to advertise for bids 4–1.

Emergency services director Daryl said the council directed staff in November 2022 to develop a local department. Staff proposed a hybrid staffing model that would begin with three career personnel on duty each day backed by about 20 paid on‑call volunteers. He said the city expects the department’s 2027 operating budget to be $2,140,863 and estimated first‑year responses at roughly 202 fire‑related calls and about 659 EMS calls.

Mike Phillips of Kraus Anderson, the city’s construction manager, said project cost estimating progressed through concept, schematic and design‑development milestones and that the most recent hard‑cost estimate (Sept. 5) was $17,440,000; when soft costs and equipment are added the total sits a hair over $21,000,000. Phillips said the team reached out to about a dozen to 15 potential contractors to ground the estimate.

Residents who oppose the project argued the city lacks a clear funding plan and that the proposed building is too large. "How much is it actually going to cost to run a fire station?" asked Jacob Olsen, a mayoral candidate, citing independent operating estimates of $4 million to $7 million annually and warning of a large tax impact if the cost is levied.

Supporters countered that automatic and mutual aid leave gaps because Otsego is divided across multiple response areas and noted rising call volumes. "One minute can save lives," said Charles "Chuck" Norris, recounting a 2018 emergency in which he said suppression did not begin until about 19 minutes after his 911 call.

Councilmember Britney moved to approve the plans and authorizations to advertise for bids and to execute related AIA agreement documents with the construction manager; the motion was seconded by Councilmember Jeff and passed 4–1. Council also approved a separate package (resolution and ordinance) to rezone the project site to Institutional, approve the preliminary and final plat and grant a conditional use permit for the facility, also by a 4–1 vote.

Councilmembers stressed that a bid advertisement does not commit the city to construction; it is intended to produce firm pricing. Staff said some project financing — including use of reserves, state training aid (about $230,000 annually that would otherwise go to contracted departments) and bond proceeds — has been discussed; the city holds roughly $5.4 million in reserves related to fire services.

The council’s action came the same night it adopted two preliminary property tax levy resolutions, which staff said set a ceiling that can still be reduced before final adoption in December. Critics on the council and among residents said the current preliminary levy structure relies on interest‑only payments and does not yet fully fund long‑term debt service.

What’s next: staff will advertise for bids, collect contractor pricing to verify estimates, and return to council with bid results and recommended contract actions. The council set a Truth‑in‑Taxation hearing for Nov. 25 to consider the final levy and budget.