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VII.1. Amendment to Capital Improvement Plan for the Depot Remodel; Imihy Bean CITY OF HOPKINS City Council Report 2024-090 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: PeggySue Imihy, AICP, Special Projects and Initiatives Manager Date: July 16, 2024 Subject: Amendment to Capital Improvement Plan for the Depot Remodel _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Amend the Capital Improvement Plan to upgrade and remodel the Depot. OVERVIEW For more than 25 years, the City of Hopkins with its partners, the Hopkins School District, Three Rivers Parks District (TRPD) and the City of Minnetonka have operated a Youth Advisory Board and coffee shop at the Depot building, owned initially by Hennepin Co. Railroad Authority and currently owned by the Met Council, located at 9451 Excelsior Boulevard. On March 4, 2024, Staff brought forward an update on this project which detailed the history of the property and the staff recommendation to move operations of the facility to the Art Center. This would expand programming, resume the ability to generate revenue through rental reservations, allow the re-opening of the space as a trailhead, and continue operations for the Youth Advisory Board. Since March, Staff have worked to estimate costs related to the renovations, and propose to amend the Capital Improvement Plan (CIP) to allow for two phases of construction occurring in 2024 and 2025. Following the refresh, operations could begin in October 2024. Funding for these improvements would come from American Rescue Plan Act Grants which were previously allocated for the Depot and partners have also agreed to help fund these improvements. The remaining costs would be paid by a fund balance in the Capital Improvement Fund. In September, as a part of the budget process, staff will bring back a more detailed picture of revenue and operations for 2025. An estimate of these numbers can be found in the aforementioned March 4, 2024, packet. Staff recommends approving an amendment to the Capital Improvement Plan to remodel the Depot. Tonight, a member of the Youth Advisory Board will also share about the upcoming Annual Freight Fest event on July 20th. SUPPORTING INFORMATION • CIP Request for the Depot Remodel Administration BlankCAPITAL or EQUIPMENT REQUEST Department 2024-2028 Responsible Person PROJECT # PROJECT NAME CATEGORY Improvement X or Equipment PRIORITY 2 (1 High…5 Low)Useful Life DESCRIPTION JUSTIFICATION Expenditure Schedule 2024 2025 2026 2027 2028 TOTAL FUTURE TOTAL - 37,800 34,222 72,022 19,000 11,040 30,040 - Totals 56,800 45,262 - - - 102,062 Funding Sources 2024 2025 2026 2027 2028 TOTAL FUTURE TOTAL - 35,000 35,000 21,800 13,200 35,000 32,062 32,062 - - - Totals 56,800 45,262 - - - 102,062 OPERATIONAL IMPACT/OTHER - - Outdoor Furniture ($4,000) Hopkins currently has $35,000 of American Rescue Plan Act Grants funds that were previously allocated to the Depot that could be utilized for this project. Staff is working with Partners on additional financial contributions. Federal Grant Revenue (ARPA) Other Governmental Unit Capital Improvement Fund Construction Equipment Advisory Events, students in the community in addition to bikers who desire access to the buildings a Trailhead. The project described above would allow for the space to be utilized for expanded Art Center programming, additional rental spaces, regular hours for Youth Advisory Board Programming and and provide limited trailhead access. For 25 years, Hopkins, Minnetonka, Hopkins School District and Three Rivers Park District have operated a Youth Advisory Board and coffee shop at the Depot building. Even with financial contributions from all entities the coffee house operations have not been financially stable due to a number of factors including Highway 169 contruction, METRO Green Line Extension Construction and the COVID-19 Pandemic. The building is still routinely used for Window Treatments & Furniture ($10,000) Signage ($5,000) Painting ($9,000) Entry Door Replacement ($22,000) Remodel Freight Room ($4,500) Remodel Kitchen Area ($2,300) Entry Door Replacement ($29,222) Landscaping ($5,000) Bldg: Depot 15 Years The Depot building is a renovated train Depot that has been operated as a coffee house and music venue. This remodel project would revitalize the building Phase 1: 2024 Equipment ($4,000) Phase 2: 2025 New Tables & Chairs ($7,040) Depot/Ace Program Management Analyst 24-CIP-DP001 Depot Remodel and Upgrade Project use by the Youth Advisory Board for programming and events, trailhead access, rentable space, music events and movie nights. Page 1