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7.4. SR 06-06-2005 Item 7.4. MEMORANDUM TO: Mayor and City Council FROM: Catherine Mehelich, Director of Economic Development(J;l; DATE: June 6, 2005 SUBJECT: Discussion on Jackson Square Flag Pole and Gazebo Issue The City entered into a Development Agreement with MetroPlains Development the end of 2004 in connection with the construction of the Jackson Block and Bluff Block project. Since that time staff has been working closely with MetroPlains to make progress on a number of activities leading up to the anticipated summer project construction. Following the substantial completion of the King Avenue parking lot improvement and a number of contingencies outlined in the Development Agreement, the city-owned Jackson Block property will be transferred to the developer. It is appropriate for the Council to consider options for the reuse, relocation or sale of the Jackson Square flag pole and gazebo. Background Flag Pole The 100-foot concrete flag pole was a gift to the City from Cretex Company in 1983. The original flag was a gift to the City from the local American Legion post. Notes from the dedication announcement indicate that a 100-year time capsule was to be placed in the pole base. The Park & Recreation Director, Bill Maertz obtained a preliminary estimate of $2,500 - $5,000 to relocate the concrete flag pole using a crane, truck delivery and establishing the 14- foot base. Mr. Maertz indicated to staff that the cost to relocate the concrete flag pole exceeds the cost for a standard flag pole structure and therefore it would be cost prohibitive to relocate the flag pole to an Elk River park. Staff has received interest in the flag pole from the American Legion Post in Elk River. The Legion proposes that the flag pole be relocated to the Veteran's Park located west of the downtown on Highway 10, or to the American Legion post located on Main Street. Issues for Discussion State statute allows the city transfer its personal property for nominal value or without compensation to another public corporation such as a county or school district for public use. Discussion on Jackson Square Flag Pole and Gazebo June 6, 2005 City Council Meeting Page 2 00 . Gazebo The gazebo was built by River's Edge Downtown Development Corporation and volunteers in 1996 for the 150th anniversary of the founding of Elk River. The placement and a $10,000 contribution toward materials were approved by the City Council. It was designed as a small scale replica of a bandstand that once stood in the town square. The Park & Recreation Director, Bill Maertz obtained a preliminary estimate of $8,000 - $10,000 to relocate the gazebo. Mr. Maertz has previously reported to the Council that both the flag pole and gazebo are out of scale for the proposed River's Edge Commons park area downtown. The Park & Recreation Commission discussed relocation options to another park at its May 11 th meeting. Ultimately the Commission acted to not use park dedication funds to relocate the gazebo to another city park but encouraged that it be moved by another entity. Staff has received interest in the gazebo from Mr. Dan Dixon of Guardian Angels. Mr. Dixon has indicated to staff an interest in removing the roof portion of the gazebo and relocating it onto a new wall structure that would be built at one of the Guardian Angels Elk River facilities, most likely the senior center. The Sherburne County Assessor's office has an estimated market value of $12,800 on the gazebo structure. Transfer to a private entity should be following reasonable public notice and quotes. If the contract is estimated to exceed $10,000 but not $50,000, the city has the option of using the competitive bidding process or making the contract by direct negotiation. If the contract is estimated to be less than $10,000, the city has the option of making the contract upon quotation or in the open market. Recommendation Staff recommends that the Council consider transferring ownership of the gazebo to the Guardian Angels of Elk River and that Guardian Angels be responsible for the contracting work and relocation costs. Staff recommends that the Council consider transferring ownership of the flag pole to the American Legion post of Elk River and that the Legion be responsible for the contracting the relocation work. Staff recommends that the Council discuss contributing toward a portion of the relocation cost. Discussion on Jackson Square Flag Pole and Gazebo June 6, 2005 City Council Meeting Page 3 of 3