HomeMy WebLinkAboutResolution No. 2022-116 LOST Authority Braemar Arena Expansion
RESOLUTION NO. 2022-116
A RESOLUTION SUPPORTING THE AUTHORITY TO IMPOSE A LOCAL SALES TAX TO FUND
SPECIFIC CAPITAL IMPROVEMENTS PROVIDING REGIONAL BENEFIT,
TO ESTABLISH THE DURATION OF THE TAX AND THE REVENUE TO BE
RAISED BY THE TAX, AND TO AUTHORIZE THE CITY OF EDINA
TO ISSUE BONDS SUPPORTED BY THE SALES TAX REVENUE
WHEREAS, in 2021, the City of Edina has engaged the business community around the possibility of a local
option sales tax. Staff sent letters to thousands of businesses and hosted three large-group meetings and many individual
staff meetings, which culminated in the approval of two referendum questions at the General Election November 8, 2022,
by Edina voters, imposing a new local sales tax to fund the implementation of capital improvements within the Braemar
Park Master Plan and the Fred Richards Park Master Plan; and,
WHEREAS, Braemar Arena is home to Edina High School, the Edina Youth Hockey Associations and the
Braemar City of Lakes Figure Skating Club. Regionally, this community asset draws recreational visitors from the entire
metro area, Greater Minnesota, Wisconsin, Illinois, Iowa and Canada; and,
WHEREAS, the Legislature and Governor approved a Local Option Sales Tax request for the Braemar Park
Master Plan in 2021 for $21.6M. Of that amount, $8.1M was dedicated to general park improvements in the Braemar
Park Master Plan and $13.5M was dedicated toward maintenance improvements in Braemar Arena; and,
WHEREAS, a larger scale improvement project for Braemar Arena is necessary and desirable. The estimated
cost of the new Braemar Arena improvement project was not fully known during the 2021 legislative session. The
estimated cost of the proposed improvements is known today. It includes an expansion of ice capacity and major interior
and exterior remodels and renovations. The estimated budget for the newly scoped Braemar Arena Expansion project is
$31.7 million; and,
WHEREAS, the additional spending authority was included in the proposed 2022 Tax Bill, which ultimately was
not adopted into law by the Legislature; and,
WHEREAS, the City of Edina hereby requests that it be granted the additional spending authority of $31.7M,
which is equal to the original project cost estimate of $25.3M, plus an inflation adjustment of 20%; and,
WHEREAS, the project will result in benefits to both the residents and businesses of the city of Edina and to
non-resident visitors and businesses; and,
WHEREAS, funding the project with a local sales tax will more closely distribute the cost of the project to the
users of the facilities; and,
WHEREAS, the total project costs for the projects approved by Edina voters on November 8, 2022, plus the
proposed Braemar Arena expansion project are estimated to cost approximately $71M; and,
WHEREAS, based on an analysis by the University of Minnesota Extension Service study, the City estimates
that a local sales tax of 0.5 percent will generate $4,100,000 annually over 19 years for a total of $77.9 million; and,
WHEREAS, the City has previously provided documentation of the regional significance of the project, as
evidenced by its approval in 2021 and near approval in 2022, including the share of the economic benefit to or use of
each project by persons residing, or businesses located, outside of the jurisdiction; and,
WHEREAS, the estimated local sales tax revenue and estimated time needed to raise that amount of revenue
for the project is as follows:
For the Braemar Arena Expansion Project: The City will collect $31.7 million over 19 years, the time to run
concurrently with the local sales tax approved by Edina voters on November 8, 2022; and
WHEREAS, Minn. Stat.§ 297A.99 authorizes the imposition of a general sales tax if permitted by special law of
the Minnesota Legislature; and,
WHEREAS, Minn. Stat.§ 297A.99 requires the City to pass a resolution authorizing such a local tax and to
obtain Legislative approval prior to approval by the local voters to enact the local tax.
NOW, THEREFORE, BE IT RESOLVED,
1. The City Council supports the authority to collect an additional $31.7M from a general local sales tax that
was approved by Edina voters at a General Election referendum November 8, 2022, for a period of 19 years
to fund the aforementioned project.
2. Upon approval of this resolution, the City will submit the adopted resolution and documentation
of regional significance to the chairs and ranking minority members of the House and Senate Taxes
committees for approval and passage of a special law authorizing the tax, by January 31 of the year
that it is seeking the special law.
3. Upon Legislative approval and passage of the special law authorizing the tax, the City will adopt a
resolution accepting the new law, which will be filed with a local approval certificate to the Office
of the Secretary of State before the following Legislative session.
4. If required, the City will put a detailed ballot question on the 2023 special election ballot for local voter
approval.
5. If the ballot question passes, the City will also pass an ordinance imposing the tax and notify the
Commissioner of Revenue at least 90 days before the first day of the calendar quarter that the tax will be
imposed.
6. Upon completion of the aforementioned requirements, the local sales tax will commence and
run 19 years or until a sum sufficient to fund the voter approved project(s), including
related debt costs, is raised, whichever comes first.
Passed and adopted this 20th day of December 2022.
Attest: ____________________________ ______________________________
Sharon Allison, City Clerk James B. Hovland, Mayor
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS
CITY OF EDINA )
CERTIFICATE OF CITY CLERK
I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and
foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of December 20, 2022, and as
recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this _______ day of December, 2022.
__________________________
City Clerk