Lincoln City Gives Citizens Options On City Hall Renovations

Lincoln City officials say the city’s aging City Hall and library complex is facing serious water damage, high operating costs, and growing safety and accessibility concerns, raising questions about how long the building can continue to function in its current state. Lincoln City residents got a chance to hear about the future of their aging City Hall and library building, during recent Town Hall meetings. Citizens got an opportunity to hear about three multi‑million‑dollar options that all hinge on voters potentially approving a November bond.

Staff described a 110,000-square-foot structure built of precast concrete, CMU block and wood that now struggles with widespread leaks, deferred maintenance and inefficient systems. The building currently houses McKay’s Market, City Hall, the public library and several nonprofits. “The most acute condition right now is that we have water intruding into the building from several dimensions,” said Lincoln City Manager Daniel Hunter. “The main ones are on the south wall… inside McKay’s, so McKay gets the brunt of our leaking. However, there’s the leaking in City Hall on the third floor, leaking in the library, so there’s a lot of leaking.”

Officials said the city is spending more than $1 million a year just to keep the building operating, not including major deferred maintenance that has yet to be tackled.

“Because of how expensive it is to keep this building operating and making the repairs that are absolutely needed each year, our yearly operating costs are over a million dollars, and that does not include other deferred maintenance that we’ve not done yet,” Hunter added.

Among the known problem areas: storefront repairs, two large metal canopy structures over the main entrance and the south library entrance, and the elevated parking deck, which staff say “needs to be completely redone.” The fire suppression system is also overdue for work.

Mechanical systems are another ongoing expense, with multiple HVAC units being replaced on a three- to four-year cycle. An assessment by Bennett Barnwell Senior Project Manager with Walsh Construction concluded that to stop the leaks and keep the building from further deterioration, the city would need to replace all the windows, address the building envelope, and complete Americans with Disabilities Act and security upgrades.

Beyond the physical condition, staff say the sheer size and layout of the structure no longer match the city’s needs. The complex is about 110,000 square feet, including McKay’s Market, which accounts for roughly 20,000 square feet of that total. Consultants were asked to look at how much space the city actually needs for its core functions. Christopher Keane with Bearing Architecture said “Roughly what we need is about 15,000 square feet for each area, right, and that includes some community spaces and room to grow as well. So we’re about 30,000 plus or minus.” That analysis highlights the gap between the city’s program needs and the oversized, aging structure it is currently maintaining.

Access and parking are also ongoing complaints. With the lower parking deck closed, parking has become even more limited. Members of the public must walk a considerable distance to reach the third-floor library and second-floor council chambers. Staff also cited challenges managing tenants and vacancies within the building, noting that the space the city has and the space it actually needs do not match.

Presenters at the Town Hall, laid out three paths: Option 1 is renovating the existing 110,000‑square‑foot structure, option 2, demolishing the four‑story building and rebuilding on the same site while keeping McKay’s, or option 3, constructing a new City Hall and library on a separate, higher‑ground site that will also eventually host a water reservoir.

Library Director Kirsten Brodbeck-Kenney opened by describing day‑to‑day problems that have become hard to ignore: leaking windows, mold, poor lighting, noise, and a building that was never designed to be a library in the first place. The children’s room had to be closed in the past year after staff discovered water infiltration and mold around the windows. The long, narrow floorplate and concrete slab over the parking garage limit how shelves, wiring, and rooms can be reconfigured while maintaining ADA access and sightlines for safety.

The library wants a more functional space, including a dedicated teen area, outdoor programming space shielded from wind, more study rooms or “Zoom rooms” for interviews and calls, and furniture and shelving that can be rearranged without drilling into concrete.

Three options, three price tags

Barnwell and Keane walked the audience through three conceptual scenarios, repeatedly emphasizing that what was shown were “not design solutions” but “mirages” to help the city understand cost and risk.

Option 1: Renovate existing buildingThis option would fully modernize the existing four‑story structure and the parking deck above McKay’s. Key elements include: – Full “reskin” of the building– Upgrades to all major systems– Significant seismic and structural work on the aging parking deck, which was designed when cars were much lighter and is currently rated at about 4,000 pounds per vehicle.

Construction costs are estimated at just under $22 million, with design, permitting, furnishings, inflation, and a 10% contingency bringing the total to about $30–31.5 million. The consultants projected roughly 24 months from bond approval to substantial completion, with design and permitting taking the first year to 18 months. Barnwell said the numbers are based on “real numbers from subcontractors” and are meant to give the city a “fiscally responsible budget” that can carry the building “forward for 50 to 100 years.”

Option 2: Redevelop current site, keep McKay’s Option 2 would demolish the four‑story building while preserving McKay’s, then construct a new three‑story building on the north corner of the property. The ground floor would include parking and community rooms, the second floor a library, and the third floor City Hall. This option includes: – Demolition of the existing office block– Seismic isolation and new mechanical systems for McKay’s, which is currently integrated into the old building– New site amenities like outdoor play or children’s space. Construction costs are estimated at about $31 million. With soft costs, escalation, and contingency, the total project cost comes in “just over 45” million dollars.

Option 3: New building on alternate site. The third option moves City Hall and the library to a new, higher‑ground site that Urban Renewal is in the process of purchasing for a future water reservoir. City officials said they could not yet publicly identify the exact location due to ongoing negotiations, but confirmed it is “slightly south” of the current facility and out of the tsunami inundation zone.

The concept shown was: – A 30,000‑square‑foot, two‑story building that “right sizes” the program– Library and community spaces on the ground floor– More on‑site and secure staff parking, with room to expand– Space to co‑locate the planned water reservoir and open up additional land for future development. The major added costs here are site‑related: a new road cut from Highway 101, extension of utilities, and substantial retaining walls to step parking down a hillside and stabilize the slope behind the building. Construction is estimated at just under $39 million. With higher contingency (15%) to cover geotechnical unknowns, along with design, permitting, and inflation, the total project is about $58 million.

Bonds, tax rates, and operating savings

City Manager Hunter told the audience the city is looking at a 30‑year general obligation bond. A rough median estimate shared at an earlier meeting was about $1.42 per $1,000 of assessed value, with Option 1 around “just under $1 per 1,000” and Option 3 at about $1.52 per 1,000. For a $400,000 home the estimated tax with the $1.42 per $1,000 would be around $568 per year, for 30-years. The typical home value in Lincoln City sits at around $496,000, according to recent market numbers.

What happens next

Staff said this town hall was the second and final open house before the issue goes back to the Lincoln City Council. Residents can still view the presentation, cost estimates, and submit input through the city’s “Engage Lincoln City” webpage. On July 13, the council is scheduled to decide whether to send a bond measure to the November ballot and, if so, which option to pursue.

The city must submit ballot language to the county by August 13. Staff said they will present councilors with vote tallies from both town halls and results from the online poll before that decision. Hunter conducted a show of hands poll, to see which option the attendees prefered, with option 2 getting the most hands raised. More details about the project, along with an opportunity to take the poll can be found on the cities website