Fire Station 2: What is the Cost?

Bonds Issued by the City will Help Pay for a Majority of the Public Safety Project

After months of planning, presentations and deliberation from City leadership, ground was broken for the new Fire Station 2

The project at 4401 W. 76th St., which is estimated to cost $44,274,311 to build, will provide additional support to the southeast quadrant of the city with increased staffing, equipment and community space. With the new facility being built in the greater Southdale area, Edina Fire will be better prepared to serve a district that consistently sees the highest density of calls.

A breakdown of the project and financing is detailed by Finance Director Pa Thao and Project Manager Zuly Marquez.

Can you explain why the City had to increase the budget on the Fire Station 2 project?

Marquez: Construction bids and land costs were higher than estimated due to market and inflationary pressures that had yet to cool. The land costs for the project ultimately cost the City $15,450,000.

A few design options and budgets for the project were presented to the City Council for consideration. Which plan was ultimately selected for the project?

Marquez: The “Better” option was selected. This option balanced the tradeoffs between capital and design features—maintaining architecture such as stone, wing walls and roof overhangs, sustainability features like a rooftop solar array and ice melt system all while avoiding programming reductions. The 30% or “Best” Plan included additional dorm rooms, an extra apparatus bay for equipment as well as extra sustainability options. The project is still tracking with the Council-approved budget from earlier this year.

How is the project being paid for?

Thao: We had Capital Improvement Plan bond authorizations (Resolutions 2022-56 and 2024-21 in 2022) for the site acquisition, which equates to the bulk of the spending to date. At the June 4 City Council meeting, $17,510,000 in general obligation bonds were authorized to cover the Fire Station’s project design and initial construction costs.

Marquez: The City was granted $1.3 million in State appropriations under the 2023 enacted capital investment bill. This grant is administered by the Department of Public Safety. The City’s Conservation and Sustainability Fund also provided $200,000 to maximize the amount of solar on the building’s roof area during the initial build.

The Fire Station 2 design takes sustainability into consideration. Can we expect some of these features with higher up-front cost to be made up in the long run?

Marquez: Per the Energy Design Assistance program results, the simple payback with Xcel and CenterPoint Energy incentives ranges from 5-10 years for all energy saving design strategies bundled.

The design strategies bundle includes items such as higher efficiency mechanical units, occupancy sensors, heat recovery, lighting, insulation, etc.

What is the financial impact on Edina residents? 

Thao: With the issuance of debt to fund the construction of a new Fire Station, property owners in Edina will likely see an increase in their property taxes. The actual amount is hard to determine because there are several variables that impact property taxes, including market values, tax rates and other City revenue/spending plans.

The source to repay this debt issuance will be over a 30-year period with collection from the property tax levy.

The new Fire Station 2 should open in late 2025. To learn more about the Fire Station 2 project, visit www.bettertogetheredina.org/Fire-Station-2.