The primary focus of the St. Peter City Council meeting was the potential purchase and renovation of the property currently owned by Scholarship America, located at One Scholarship Way. This decision stems from longstanding space constraints at the current City Hall, which has been in operation since 1965 and is no longer adequate for the city’s needs. The existing facility’s limitations, such as inadequate accessibility and insufficient space for departments like the police and finance, have prompted the council to seek a new location for municipal offices.

The Scholarship America property offers a promising solution with its ample space and potential for renovation. The council discussed the comparative costs of acquiring this site versus constructing a new building or renovating the existing one. Additionally, future cost projections suggest that delaying the decision could inflate expenses to as much as $18 million.

Council members highlighted the strategic advantages of acquiring the 18-acre site, which would be difficult to secure at an affordable rate if new land were sought. The proposal also includes the opportunity to redevelop the current City Hall site, potentially benefiting the downtown business district. A council member unable to attend the meeting submitted a letter in support of the acquisition, emphasizing the financial prudence of the decision and the city’s growing population, which has increased by approximately 4,000 residents since 1970.

Following the approval of the property acquisition, the council also considered hiring ISG of Mankato for architectural services related to the renovation of the building. The architect’s role would involve overseeing the remodel, and ISG’s previous work on similar projects was recognized as a valuable asset. Additionally, the council discussed a lease agreement with Scholarship America, allowing the organization to continue operating in the building during renovations, which was seen as a strategic move to maximize property utility.

The council also addressed hiring RW Carlstrom for construction management services. Carlstrom’s experience with municipal projects was noted as beneficial for the successful execution of the renovation. These decisions set the stage for comprehensive improvements to city operations and facilities.

In other council business, the final levy and general fund budget for 2025 were presented and approved. The proposed levy amount was set at $4,317,473, consistent with previous discussions. The budget includes plans for equipment certificates and a staff addition for sustainability and communications, with projected increases in library levy and community center expenses. The council was informed of a modest increase in property tax bills due to changes in the tax levy rate, which rose to 49.95 from 46.9.

The council also discussed the impact of recent homestead credit legislation, which exempted $18 million worth of property value from taxes, contributing to a decrease in net tax capacity. This exemption was part of efforts to aid homeowners, and council members were reminded of the extensive materials shared regarding the budget and tax levy.

Additionally, the council reviewed the stormwater budget and rate adjustments for 2025 and 2026. The proposed utility charge for properties is set to increase, with residential rates rising from $101 to $111 in 2025 and further to $121 in 2026. While concerns were raised about maintaining a healthy reserve balance, the council voted unanimously to approve the rate increases and the stormwater budget.

The council also addressed the rejection of bids for the 2024 Carbon Reduction Program Electric Vehicle Charging Station. The bids received were either incomplete or higher than expected. The Public Works Director suggested exploring options to divide the project into smaller components to align with budget constraints, and the council unanimously approved the resolution to reject the bids.

Other significant items included the approval of a 2025 equipment certificate for the purchase of a tractor, aimed at reducing costs associated with renting equipment for leaf collection. The council also passed resolutions to adopt updated fee schedules and non-union employee wage modifications, maintaining competitiveness in the job market. The approval of the Law Enforcement Labor Services Local 241 Union contract, which includes a 5% pay increase, was another key decision in line with previous agreements.