New Prague halts police station construction after municipal mistake

The city of New Prague, Minn., recently hired a contractor to build a nearly $10.8 million police station, banking on a tax hike to cover the cost.

But city officials skipped a crucial step: the required public hearing.

And by the time they corrected the error and invited residents to weigh in, the city had already spent at least $575,000 on the development, which a group of residents is attempting to halt.

Now the new station’s construction is at a standstill, and the situation is roiling the small city, where the mayor abruptly resigned in May with about a year and a half left in his term. A news release announcing Duane Jirik’s departure didn’t mention the police station but alluded to simmering tensions at City Hall.

“The position is more than showing up at City Council meetings … to be criticized and accused amongst other things that I am not doing my job,” he wrote. “I guess that is where the old saying goes, it’s ‘the straw that broke the camel’s back.’”

Charles Nickolay, who previously served as mayor, was quickly appointed to fill the vacant seat. But divisions have emerged between a City Council member sounding alarms about New Prague’s handling of the project and other elected officials who argue that an aging facility needs to be replaced.

Nickolay defended the project in an interview, saying it “serves the future of New Prague” and won’t substantially raise taxes.

The situation is adding up to a tense moment in a city otherwise known for its small-town charm and Czech heritage.

“New Prague’s always been kind of not very controversial,” said resident Brian Paulson, who is leading the opposition to the police station. “Until recently.”

New Prague’s current police station sits inside City Hall, a squat brick building just off the city’s quaint main street. The 14-person department responds to some 7,000 annual calls on the fringes of the southwest metro.

In 2022, the city tapped an architecture firm to evaluate the space, which found the building lacks room for additional officers, evidence processing and secure investigations. Proponents of the project argue the city’s first responders deserve a top-notch station.

The current building is “just totally inadequate,” Council Member Maggie Bass said in an interview.

To finance the estimated $10.8 million new station, some city officials decided the city would issue capital improvement bonds that it would repay over time by raising the total city tax levy about 13%. According to one estimate, that could increase the property taxes for a $300,000 home by roughly $13 a month.

The city approved that financing approach in March, then signed a contract a month later with Met-Con Cos. to build the new station.

Met-Con got to work, installing a fence and setting up a contractor trailer at the site. A company representative couldn’t answer questions about how much money Met-Con has spent on the project, though workers have already been digging in preparation for the structure.

Meanwhile, New Prague racked up a roughly $575,000 bill for design work, City Administrator Joshua Tetzlaff said at a May meeting where the city’s failure to hold a public hearing came to light.

Tetzlaff said it isn’t unusual for the city to sign a contract for a project before nailing down the financing approach.

But City Attorney Scott Riggs added: “The statute says you have to do a public hearing. And it wasn’t done properly, so you got to start over.”

Council Member Shawn Ryan lamented the situation.

“We’ve jumped already as a council probably ahead of where we should have been and weren’t listening to the constituents,” he said.

Tetzlaff and Riggs didn’t respond to interview requests.

Constituents got their chance to speak at a June 2 public hearing, addressing four City Council members and an empty chair where Jirik sat before resigning days earlier.

Opponents fretted about potential tax increases and lamented residents’ perceived lack of voice, with one man calling the planned 20,500-square-foot facility the “Taj Mahal of police stations.” Others worried how they would afford higher taxes.

Proponents said the police department needs nicer facilities as the city grows, arguing that a modern station would embody New Prague’s motto: “A Tradition of Progress.”

In an interview, Nickolay noted that the potential tax levy increase doesn’t necessarily mean residents’ tax bills will rise, because the city could adjust its spending to reduce the burden on residents. And he added that the city has followed proper meeting procedure — save failing to hold a public hearing for the bond sales.

“They all say, ‘Oh, this was done in the closet,’” he said. “[But] it was all public record. It was all handled correctly. … This wasn’t done behind doors.”

After the hearing, all the council members except Ryan voted to move ahead — again — with funding the police station with capital improvement bonds.

Paulson said the residents pushing back against the project have gathered enough signatures on a petition to bring the bond sales to voters in a referendum.

Elected officials will discuss next steps at the July 7 City Council meeting, Nickolay said.

If voters reject the bond sales, the city could finance the police station through its Economic Development Authority and a lease agreement, said Rebecca Kurtz of Ehlers, a company advising the city on the project, at a May meeting.

To some residents’ chagrin, they can’t protest that approach via petition.

Meanwhile, the city could owe contractor Met-Con money should New Prague decide to scrap plans for the police station altogether: an unspecified termination fee, plus payment for work already completed, according to the contract both parties signed in April.

At a June 16 City Council meeting, Ryan moved to pause the project: “If you don’t believe we should stop digging the money pit right now,” he said, “that’s a huge mistake.”

No one agreed.