Push is on for new $18 million fire hall

The Cloquet Area Fire District board, with eyes on breaking ground on a new building this fall, unanimously declared its intent to bond for a Station 1 replacement at its 22nd Street property. A desire to avoid rising building costs coupled with the fact that the fire and ambulance service has outgrown its current aging space prompted

the vote, after years of planning.

The resolution doesn't set the decision in stone, nor does it take referendums off the table. It lays the groundwork for a public hearing to measure the public's appetite for a new building and the taxes that will come with it.

"We need to make sure we're doing our best effort to make sure the community can get behind this," said Nathan Barta, a newly appointed board member representing Thomson Township.

The construction project would come with a price tag of $18 million. A 25-year bond for that amount could cost an owner of a $200,000 property $37 to $89 in additional taxes each year, depending on if they receive ambulance-only or fire-and-ambulance service.

An estimate from Ehlers Public Finance Advisors provided by fire chief Jesse Buhs assumes a 3.5-percent interest rate.

The hearing will be held on Feb. 12 at the Carlton County Government Services building, preceded by town hall style meetings held Feb. 3-6 in various member-communities, starting at the Cloquet Public Library Feb. 3, then Perch Lake Feb. 4, Thomson Township Feb. 5, and Brevator on Feb. 6, all starting at 6 p.m.

A referendum would be required if, within 30 days of the Feb. 12 hearing, a petition by at least 5 percent of the number of people who participated in the last election is filed. But the district board may have the option to call for a "self-imposed" referendum at its regular meeting Feb. 19, when it is set to vote on the bond.

District officials don't know yet if the board legally can call a referendum.

CAFD chief Jesse Buhs said any special election would cost the district $10,000 to $30,000, depending on if there is one consolidated polling place or multiple ones, along with other administrative costs.

The CAFD board could decide to bond without calling a referendum, but several members were adamant about giving residents a voice.

"I just want to make sure that we follow a process that is clean from beginning to end," said Gary Harms, who represents Perch Lake Township.

Regardless, board member and Cloquet city councilor Sheila Lamb was bullish on public support for the project and cited public support and votes for the new jail, hockey arena and Pine Valley and Cloquet middle school.

"I'm just saying that overall, what we're seeing historically is the [community] wants to keep a high standard in what they provide, whether it's sports, whether it's quality health care, such as the [fire district], or the jail," Lamb said. "I just don't think we're going to have a problem with this one."

Making their case

During debate, Lamb, board member Marshall Johnson and Buhs presented a litany of problems and ripple effects they said the current Station 1 faces.

These most-vocal proponents said a less-cramped vehicle bay could improve response times and modernized buildings could help recruitment and retention, with board members Harms and Linda Way challenging those assumptions.

"Ambulance crews that also have to work at fire sites have to drag their equipment over bumpers and everything else; that's a delay," Lamb said to bolster her belief that response times can be reduced by 30 seconds to a minute.

When the new building's location was debated at last summer's board retreat, Buhs showed the response time from the 22nd Street property would decrease for the district's east side but increase by about two minutes for communities such as Brevator and Perch Lake.

When The Pine Knot asked Way about her opposition to that site selection in September, she said the response time estimates assumed optimal conditions.

In addition to OSHA liability concerns, the potential for workplace injuries and heating problems, Lamb asked when staff would say enough is enough.

"Those are factors with retention. If you're not comfortable in your workspace, your job satisfaction is going to go down," Lamb said.

Carcinogens are also a concern.

Though the district has already invested in a new vehicle exhaust system and washing machines for gear to address potential cancer-causing chemicals, the chief said they don't solve the entirety of the issue since contaminated equipment is still lugged through clean spaces to get to the washers. The flow of a modernized building would keep clean and contaminated spaces separated to prevent an HVAC system from circulating dirty air into offices and common areas.

Why now?

While conversations regarding a new building have gone on for nearly a decade, inflation is a big part of what is driving this most recent push. Since the project was put on ice in 2018, the cost of construction has gone up by $7 million - prompting a redesign to reduce the footprint, resulting in plans for an $18 million building. Buhs said waiting another year, assuming 3 percent inflation, would add $600,000 to the expense. Consequently, the district is maneuvering to break ground in the fall.

With a new Trump administration on the horizon, Lamb raised concerns about vanishing opportunities for federal funds for green building. She said a federal green grant could be in the millions but would require a showing of formal action to apply.

"My feeling is we have to plan without that because that's a big unknown at this point," Way said. "And my question is: can this district and the people we serve afford $18 million?"

Since the project's inception, the district has spent over half-a-million dollars on design, redesign, estimates and site development, and there is still money to be spent. Architectural firms LHB and Five Bugles need up to $25,000 to finish design development.

"The principal architect we're working with has expressed the importance of maximizing the next month," Buhs said, adding that starting construction in the fall can mean the winter can be used to work on the interior.

Buhs said the district is holding proceeds from the sale of three pieces of equipment in reserve to buy a new fire engine in 2026. In the meantime, that money could be used to pay for the remaining design work.

Doug Wolf, chair of the finance committee, said if the building bond goes through, those reserves earmarked for a new fire engine can be reimbursed. But if not, then a different bond will be needed to pay for the engine. Additionally, he said architects would be paid on an hourly not-to-exceed basis so the CAFD can drop their services if the bond falls through.

Choices

Board chair and Fond du Lac representative Bruce Blacketter, who represents Fond du Lac, likened their situation to pumping money into an old car for cheap at the expense of a new car with better safety features.

"I would say it's impossible - not virtually impossible, not possibly impossible - it's impossible to maintain operations in that building," Buhs said, "because we've got plumbing systems that have failed, we've got electrical systems are undersized and a building generator [that] doesn't service the entire building."

A gut remodel would be the alternative. The district does not have a cost estimate for a remodel, Buhs told the Pine Knot in November, explaining that an analysis would cost the district money to gain details for "an answer that we've already been given: that architects, consulting firms, others just saying that this is not the right space for us."

A 2014 CAFD appraisal and master plan did state that Station 1 could not meet the current and future needs of the district and recommended a new building. The plan also did not explore costs for renovating the landlocked facility. At the time, the fire district was still sharing the building with the police department. When the PD moved, it created space to bring fire administration to Station 1, but many structural issues remain with the building, including its size.

Hanging over the board discussion was concern about the financial burden on residents. In a past interview, Harms noted his community's elderly population base.

"I mean, food costs have, what? Doubled? Their pensions haven't doubled. Social security hasn't doubled. That makes it tough for people," he said.

"I'm on a fixed income too. I probably have one of the highest-taxed houses in town based on what I built and where I live," board member Dave Sarazin said at last Wednesday's meeting. "... but I also think in the long run: what are we doing for future generations down the road?"

Buhs reiterated his efforts to secure outside funding such as grants, donations from businesses and state aid or bonding.

The district has requested the state's office of management and budget include the building project in the next bonding bill so 50 percent of its cost could be potentially covered by the state.

Conversations are ongoing to establish annual district aid - similar to local government aid available to cities for which the CAFD is not eligible - to offset operational costs and levy increases. But the extent of that assistance is unknown and any bill would have to pass into law first.

Local meetings

Typically held at the Carlton County Government Services building, the CAFD's next three regular board meetings will be held in various member town halls.

Board meetings will begin at 6 p.m. at Perch Lake Town Hall on Feb. 19, Thomson Town Hall on March 19 , and Brevator Town Hall on April 16. In May, the board will resume meetings at the government services building for the remainder of the year.

Solemn goodbye

With a moment of silence, board members also said goodbye to fellow member Warren "Bun" Carlson, who died Jan. 12. Representing Cloquet, Carlson had served on the board since 2019 and was on the labor management and finance committees.

Choking up, Bruce Blacketter said, "Bun's service to our district can't be understated."

"He loved our people, was very proud of the paramedics and ambulance service and the district as a whole," Buhs said, adding that he will be missed by all.

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Meetings scheduled

The Cloquet Area Fire District board will hold a series of town hall meetings Feb. 3-6 to inform the public and get feedback on plans to bond for a new $18 million fire station in Cloquet. Meetings will take place in member communities, starting with the Cloquet Public Library on Feb. 3, then Perch Lake Feb. 4, Thomson Township Feb. 5, and Brevator on Feb. 6, all starting at 6 p.m.

A formal public hearing will be held at 6 p.m. Feb. 12 at the Carlton County Government Services building at 1307 Cloquet Ave.