HomeMy WebLinkAboutResolution No. 2020-15 Impose Local Sales Tax for Infrastructure ImprovementsRESOLUTION NO. 2020-15
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, 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.
WHEREAS, the City Council identified four projects;
I. Fred Richards Park Master Plan ($17.7M)
Fred Richards Park is being created from the former Fred Richards Golf Course, which closed in
2014. The 43-acre site, almost double the size of Centennial Lakes Park, will become a multi-use
park for a variety of activities year-round. This site is connected regionally by the Nine Mile Creek
Regional Trail Corridor, built in partnership with Nine Mile Creek Watershed District and Three
Rivers Park District, which bisects the site. Fred Richards Park will subtly divide into sections,
providing different experiences for people and nature. The vision includes features and amenities
envisioned for the site to meet current and anticipated park and recreational demands. The Master
Plan adopted July 2017, includes:
Central Green — ($9.9M)
Nature Bank — ($ I. 9M)
Great Lawn and Loop Area ($5.9M)
Regionally, this community asset is directly connected via the Nine Mile and Three Rivers Park
District Trail to Minnetonka, Hopkins and Richfield. The park is also connected to the Minneapolis
Grand Rounds, Nokomis-Minnesota River Regional Trail, Minnesota River Bluffs Regional Trail,
Cedar Lake LRT Regional Trail and Lake Minnetonka LRT Regional Trail. The park is adjacent to
the Pentagon Park office project, home to numerous business organizations and employees.
2. Braemar Park Master Plan including Braemar Arena complex ($20.9M)
At 500 acres, Braemar Park is the largest recreational space in the City of Edina. It is home to
Braemar Golf Course, Braemar Golf Dome, Braemar Arena, Braemar Sports Dome and Field, and
Courtney Fields. Improvements to the park includes improving the connectivity of trail systems,
access, and wayfinding to park amenities and facilities; providing separated use trail systems to
accommodate walkers, mountain bikers and cross-country skiers; identifying new site
improvements and recreational amenities to enhance existing facilities; developing and improving
the quality of natural resources in the park; incorporating sustainable site improvements to
promote land water resources; and investing in facility infrastructure are goals of the masterplan.
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
www.EdinaMN.gov • 952-927-8861 • Fax 952-826-0389
Masterplan adopted January 2018, includes:
Master Plan — ($8.1M)
Arena Complex Infrastructure — ($12.8M)
Home to Edina High School, the Edina Youth 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. These park and recreation amenities
are available for use by residents, business community members and school programs.
3. Weber Woods Park and Storm Water Facilities ($2M)
At just over 14 acres, Weber Woods was jointly purchased by the City of Edina and the City of St.
Louis Park in 2016. The site is located adjacent to and between Weber Field Park in Edina and
Minikanda Vista Park in St. Louis Park. Over 9 acres of the site is located within the City of Edina
and its intended use is restricted to park, recreation, open space or storm water management. In
2019, The Edina City Council approved a flood reduction task force, to address the impacts of
storm water throughout the city and Weber Woods was a focus area as it is adjacent to St. Louis
Park and the City of Minneapolis. By developing park amenities at this location, the residents,
businesses and visitors of Edina, St. Louis Park and Minneapolis would be served by these offerings.
4. Municipal State Aid Street Reconstruction (Projects total $39.2M)
MSA street reconstruction is an eligible use of LOST funding. Staff projects little to no growth in
the Highway Users Tax Distribution Fund, from which MSA funding originates. Without an increase
in funding, the pace and scope of these projects will slow. Engineering staff identifies approximately
28 miles of future MSA street reconstruction projects estimated at $56M. LOST Funds could cover
approximately $39.2M, with the remaining $16.8M covered by existing MSA Funds.
WHEREAS, the project(s) 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(s) with a local sales tax will more closely distribute the cost of
the project(s) to the users of the facilities; and,
WHEREAS, the project(s) are estimated to cost approximately $79,800,000; and,
WHEREAS, the city estimates that a local sales tax of 0.5 percent would generate $4,000,000
annually over 20 years; and,
WHEREAS, the city has provided documentation of the regional significance of each project,
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 each project is as follows:
• For Fred Richards Park Master Plan: The city will collect $17,700,000 over 20 years.
• For Braemar Park Master Plan including Braemar Arena complex: The city will collect
$20,900,000 over 20 years.
• For Weber Woods Park: The city will collect $2,000,000 over 20 years.
• For Municipal State Aid Street Reconstruction: The city will collect $39,200,000 over 20 years.
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 THAT
I . The city council supports the authority to impose a general local sales tax of 0.5 percent for a
period of 20 years to fund the aforementioned project(s);
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. The city will put a detailed ballot question(s), which includes separate questions for each project,
on a general election ballot for local voter approval. This will be done within two years of
receiving legislative authority.
5. If one or more ballot questions pass, 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 twenty (20) 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 22nd day of January, 2020.
Attest:
Sharon Al i on, City Clerk Mary Brindle, Acting 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
January 22, 2020, and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this day of , 2020.
City Clerk