The city is looking to redevelop its former city hall building at 129 Holmes St. S. The aging building was originally constructed as a bank in the 1960s and served at the city hall from 1993 to August 2017, when city staff moved to their new building on Gorman Street.
The approximately .7-acre site is currently zoned B-3. It has all utilities, including natural gas, electricity and fiber.
In June 2017, the City Council entered into a partnership agreement with CPM Cos. to redevelop the site into a mixed-use development with retail and up to 70 units of market-rate housing and parking. CPM was also exploring the development of a 110-room hotel along the Minnesota River at Scott Street North and Levee Drive West. It is not expected these projects will move forward.
In September 2017, the City Council designated the building as structurally substandard.
In November, the City Council awarded a contract to Frattalone Cos. in an amount of $191,800, plus a $10,000 contingency, for the abatement, demolition and earthwork required to remove the former city hall structure. Demolition is anticipated to be completed by January.
The parking lot east of the building will be closed to store equipment during abatement and demolition. City staff will re-evaluate the condition of the lot after the project is complete. The city will create a temporary sidewalk in the spring if conditions allow.
City staff will look for alternative options for redeveloping the site. At its Oct. 17 City Council meeting, the council voted to seek development proposals for two city-owned properties in downtown Shakopee: the former city hall site and a 1.2-acre riverfront site, which consists of four parcels at Scott Street North and First Avenue West.
The city is will be accepting redevelopment proposals through Jan. 5, 2018. City staff will then review and score the proposals and bring forward to council the highest scoring to allow the council to weigh the various projects and select final developers.