Larkspur council nears decision on City Hall pullout

The Larkspur City Council is faced with making a final decision next month on whether to move out of the historic City Hall if it wants to avoid jeopardizing a state grant to build a new library.

Because the civic center at 400 Magnolia Ave. is in need of major rehabilitation, officials have proposed constructing city offices in conjunction with a new library at a vacant lot on Rose Lane. A new city structure would be less expensive than a remodel, potentially saving the city millions of dollars in renovation costs, staff said.

The $5.2 million state grant partially funding the library requires the project to be completed in 2026. To keep the library on track, city officials are eager to prepare a request for qualifications, seeking contractors to develop the Rose Lane property, by the end of March or early April.

The city staff is recommending that the council decide Wednesday whether to include the city offices in the project. If the council chooses to stay at City Hall, staff recommend issuing a request for proposal to design the rehabilitation of the aging structure while pursuing the library project separately.

“We need to know by the end of March, one way or the other, but ideally by Wednesday,” City Manager Dan Schwarz said.

It’s a choice that has major implications that shapes how the city government functions for the next several decades, Mayor Gabe Paulson said.

“One thing that we want to make clear is that the library is happening, we have the money, we have the location, that’s happening,” Paulson said. “But what to do with 400 Magnolia, that’s another story.”

The council majority has been leaning toward moving out. The challenge, Paulson said, is the emotional attachment to the 109-year structure.

“The building clearly is a landmark,” Paulson said. “We want to make sure that we hear from the community, that the public has really been heard.”

City officials have been trying to decide what to do with City Hall for nearly as long as they have planned to build a new library on the 2.43-acre lot at the corner of Rose Lane and Doherty Drive.

The problem is the rehabilitation of 400 Magnolia Ave. would cost an estimated $12 million to $18 million. Design alone could cost $500,000 to $1 million, Schwarz said.

The library project is expected to cost about $11.2 million. If the plan includes city offices in conjunction with the library, it would add $8 million to $10 million to the Rose Lane project.

In a city memorandum dated Feb. 22, staff itemized expected expenses and concluded the probable cost of the City Hall renovation would be $15.3 million. The probable cost of new city offices at Rose Lane would be $7.9 million.

“We really refined our analysis based on the feedback the council gave, and I think we have more accurate information for them,” Schwarz said. “But until we have a fully designed project, the true costs are hard to pin down. We feel that this is a good range for discussion purposes.”

The library is nearly fully funded by the state grant and donations from the Commons Foundation.

The Commons Foundation exceeded its $5 million fundraising goal by $309,905, said Ann Morrison, the president of the foundation and a former City Council member.

She said the nonprofit is now launching a new $1 million campaign to finance landscaping and other aesthetic features, such as lighting, patios, bicycle and pedestrian amenities, benches and more.

Of the City Hall discussion, Morrison said, “The Commons Foundation, we support whatever the City Council members decide. Our main focus is getting that library built.”

“One of the reasons our fundraising exceeded our goal is that Larkspur, and the communities around us, are very excited to have this library,” she said.

The city has about $5 million available that could be used on either the new offices or a City Hall retrofit.

If city offices are relocated, City Hall would be available for another use and staff would prepare a request for proposals to seek ideas for its future.

“The decision is imminent and we need to make the right decision,” Paulson said. “We really need to make the right decision.”

The City Council agenda and staff reports are posted at cityoflarkspur.org. The council meets at 6:30 p.m. Wednesday.