One of the other reasons for the renovations is to move council meetings out of the public safety building, which they have been trying to do for 20 years, so moving city hall and police to the same location wouldn't address that issue.
moving both of them to a one story building would solve the concern
How about keep the PD where it is, move city operations somewhere else with offices and council chambers on the first floor, sell the city hall building?
the current PD location would be considered to have a higher land value seeing that it is some what of a lake view / near the lake
move the PD
move the NYS labor department building
move the bank drive thru along that area
move the ice rink
that land has a higher value (somewhat lakeview) for taxable properties than what is currently there
from the ice rink down to the labor department over to the bank drive thru and than back to the ice rink
that triangluar area should all be development for higher taxable properties
large hotel(s), commercial, retail, office spaces with multiple story structures