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VII.3. Enter into Memorandum of Understanding with the Hopkins Historical Society for 907 Mainstreet; Imihy CITY OF HOPKINS City Council Report 2025-056 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Laila Imihy, AICP, Special Projects and Initiatives Manager Date: April 1, 2025 Subject: Memorandum of Understanding for 907 Mainstreet _____________________________________________________________________ RECOMMENDED ACTION MOTION TO enter into a Memorandum of Understanding between the Hopkins Historical Society and the City of Hopkins for the operation, maintenance and decision-making related to the Albert Pike Lodge located at 907 Mainstreet. OVERVIEW In 2015, the City of Hopkins purchased the property located at 907 Mainstreet, the former masonic lodge known as the Albert Pike Lodge for $140,000, with the intent of allowing the Hopkins Historical Society (HHS) to lease the building. Following the purchase of the property, the HHS and the City entered into a 25-year lease for the property at the cost of one dollar per year. While not known at the time of purchase, it became evident that a vast amount of renovation would be needed at the property to be able for the HHS to occupy the space, including but not limited to ADA improvements, structural improvements and asbestos abatement. It has always been agreed that while the City would support and seek grants to help fund renovations, it was the responsibility of the HHS to make any interior improvement which allowed for the space’s use as a museum. Over the past 10 years, both the City and the HHS have applied to a number of grant programs to do the larger scale renovations but have been unsuccessful in securing the substantial sum required to move the HHS into the space. A 2016 historic structures report estimated nearly $3.5 million dollars in improvements to make the building ready to be occupied. In the meantime, the City has done several capital projects to protect the structure from further damage. Knowing the great deal of capital required to bring the building into a condition suitable for a museum, the HHS has expended a great deal of effort in fundraising while also continuing to provide a museum at the Hopkins Activity Center. However, as a small organization run entirely by volunteers with a modest annual budget, this has been a challenging task. In Summer 2023, the HHS approached the City to begin exploring a path forward on exiting the building, recognizing that while the project was entered into in good faith by all parties, neither organization is financially able to facilitate the necessary renovations. Since then, staff have worked with the HHS and the City’s attorney to draft a Administration Memorandum of Understanding (MOU) which outlines a process moving forward including a termination of the lease, the agreement to hold a community event to share more about the decision on the property and the agreement to offer a lease at the Hopkins Activity Center for the HHS. Moving forward, City staff will meet with the HHS monthly until the community forum to coordinate logistics on the event. At a March meeting of the HHS, the board agreed to enter into the MOU and exit the building by December 31, 2025. Due to a typographical error in the MOU, a copy unsigned by the HHS is provided to the council tonight to be signed by the HHS after the Council’s action. Tonight, a member of the Hopkins Historical Society will provide a short update, and Staff can answer any questions about this process. SUPPORTING INFORMATION • Memorandum of Understanding MEMORANDUM OF UNDERSTANDING Between the City of Hopkins and the Hopkins Historical Society For the Operation, Maintenance, and Decision-making related to the Albert Pike Lodge This Memorandum of Understanding ("MOU") is entered into on _____________________, 2025 (the “Effective Date”), between the City of Hopkins, a Minnesota municipal corporation (“the City,”) and the Hopkins Historical Society (“the Society”)., a Minnesota nonprofit corporation and 501(c)(3) organization dedicated to preserving the objects, documents, and narratives related to the history of Hopkins, Minnesota Background: The City of Hopkins and the Hopkins Historical Society entered into a lease agreement regarding the property located at 907 Mainstreet, Hopkins MN 55343, whereby the Society leased said property from the City for the purpose of utilizing the building as the Hopkins History Center to provide public access to historical elements hosted by the Society. WHEREAS, in 2015 the City purchased the Albert Pike Lodge building located at 907 Mainstreet, Hopkins, MN 55343 (the “Property”); and WHEREAS, the intent of the Hopkins Historical Society leasing the property was as the future Hopkins History Center in an effort to preserve the historic property and WHEREAS, at the time of purchase, the City did not intend to invest additional funds in renovating or restoring the interior of the Property; and WHEREAS, it was not known to either party at the time of purchase the significant structural, environmental, and accessibility challenges of the Property; and WHEREAS, the City and the Society made significant efforts to seek outside funding and grants to facilitate renovations and repairs; and WHEREAS, both parties are not currently financially able to facilitate the necessary renovations; and WHEREAS, neither party is currently positioned to support the staff and/or volunteer capacity, cost, and maintenance required to operate the Property following renovations; and WHEREAS, the City has and continues to provide space to the Society at the Hopkins Activity Center; NOW THEREFORE it is mutually agreed by and between the parties that they enter into this MOU in order to document the understanding of the parties as the roles and responsibilities of each party following the Society’s willing termination of the lease at the Property. Purpose: The purpose of this MOU is to establish the terms and conditions under which the Society will terminate the aforementioned lease agreement and remove its belongings from the Property. Terms and Conditions: 1. Creation of Lease: a. The City agrees to propose a lease agreement with the Society for their space at the Hopkins Activity Center, 33 14th Ave N, Hopkins, MN 55343. 2. Community Forum: a. The City agrees to assist the Society with communicating to the public the past and ongoing challenges regarding the building and the inability to move forward with the space as the future home of the Hopkins Historical Society via a public forum. This forum or community event must be held within 6 months of the Effective Date of this MOU. b. The forum will cover the history of the purchase, the physical and monetary challenges with operating the space as a museum, ways that the public can continue to be involved with the Society, and next steps for the property. i. Assistance from the City includes the following, all of which are dependent on publishing schedules and availability: advertising the event on City social media channels, posting on the City website, Hopkins Connections and the provision of space at a City facility for the forum. ii. The City will provide a representative to attend the forum either from City Staff or City Council c. Following the forum described above, the two parties will issue a joint press release reviewed and accepted by both parties outlining the process and decision for the Society to exit the space. This press release must be developed and agreed upon prior to the forum. 3. Future Planning: a. The City will involve the Society in the future of the Property in the following ways: i. The City will explore the establishment of a preservation easement on the Property to prohibit the demolition of the Property. ii. The City will allow storage of existing items and access to the Property until such a time that the City Council has made a formal action to move forward with an alternate use of the property. The Society will have until December 31, 2025, to remove items from the Property following this action. iii. The City will work to determine the financial viability of hiring a historical buildings consultant to determine the best possible outcomes for the Property following the determination described above. 4. Communication: a. The City, in collaboration with the Society, will create a video or other communication(s) on the previous use of the Property to document the history of the Property. b. City Staff will provide a formal update on the status of the Property to the Society bi- annually. 5. Termination of Lease: a. The City agrees to accept the termination of the lease and release the Society from any further obligations or liabilities under the lease agreement after the termination date. b. The City agrees to pay all costs associated with the drafting of the termination of the lease and this MOU. 6. Removal of Belongings: a. Upon termination of the lease, the Society agrees to remove all of its belongings, including but not limited to furniture, equipment, documents, and any other personal property, from the Property before December 31, 2025. b. The Society shall ensure that the Property is returned to its original condition at the time it leased the Property, normal wear and tear excepted, upon removal of its belongings. Miscellaneous: 1. Notices: Any notices required or permitted under this MOU shall be in writing and delivered personally or sent by certified mail, return receipt requested, to the following addresses: City of Hopkins: 1010 1st Street South Hopkins, MN 55343 Hopkins Historical Society: 1010 1st Street South Hopkins, MN 55343 2. Governing Law: This MOU shall be governed by and construed in accordance with the laws of the State of Minnesota. 3. Entire Agreement: This MOU constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral, relating to such subject matter. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding as of the date first above written. City of Hopkins: ________________________________ Patrick Hanlon, Mayor Date: ______________ ________________________________ Mike Mornson, City Manager Date: ______________ _________________________________ Hopkins Historical Society: _________________________________ [Print Name] [Title] Date: ______________