HomeMy WebLinkAboutResolution No. 2022-21 Local Option Sales Tax
RESOLUTION NO. 2022-21
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 has identified the following project;
1. Braemar Park Master Plan including Braemar Arena complex ($21.6M $53.3M)
The Legislature and Governor approved associated bonding costs 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. 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 proposed
improvements are known today and include an expansion of ice capacity and major interior and exterior
remodels and renovations. The estimated budget for the newly scoped Braemar Arena project is $45.2M.
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. The Braemar Arena improvements
will be available for use by residents, business community members and school programs.
The improvements to the 500 acres Braemar Park that were approved as part of the 2021bill remain
unchanged. These improvements include 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. Masterplan adopted January 2018, includes:
Park Master Plan: $8.1M
Arena Complex Improvements and Infrastructure: $45.2M
TOTAL: $53.3M
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 $71,000,000; 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 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 19 years.
• For Braemar Park Master Plan including Braemar Arena complex: The City will collect
$53,300,000 over 19 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:
1. The City Council supports the authority to impose a general local sales tax of 0.5 percent for
a period of 19 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 the 2022 general election ballot for local voter approval.
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 nineteen (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 19th day of January 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 January 19, 2022,
and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this _______ day of ___________________, 2022.
City Clerk