Sales tax

exemption

awaits action

by lawmakers

By RON LARSEN

Journal Staff Writer

ST. PAUL -- Legislation that would grant New Ulm a sales and use tax exemption on materials and supplies used in the community center, senior citizens center and Vogel Arena construction projects is orbiting in both the House and Senate, awaiting inclusion in the omnibus tax bill which, as yet, has not made its appearance.

House File 1820, introduced by State Rep. James Clark, R-New Ulm, has received a hearing in the Sales & Income Tax Division. A companion bill, Senate File 1710 introduced by State Sen. Dennis Frederickson, R-New Ulm, has not yet had a hearing, according to an aide to the senator.

Frederickson hopes that it will be attached to the omnibus tax bill. "If other communities' requests are included, then it's likely that New Ulm's will be too," the aide said.

"Exemption of the sales and use tax for these projects will assist in providing needed upgrades to facilities in our community," Clark said. The city estimates the exemption would save about $500,000 in construction costs.

The city expects to break ground this fall on a new 78,000-square-foot community center with an ice arena and multi-purpose exhibit space at the Brown County Fairgrounds. The senior citizens center is scheduled for major remodeling, doubling the current space, and is expected to be completed in summer, 2002.

The ice arena at Vogel Arena will be removed, and a field house will take its place. The facility will house three multi-purpose gymnasium floors and an indoor running track. The renovation is expected to be completed after construction of the community center.

"These projects will provide excellent recreational and meeting facilities for citizens of all ages in our community," Clark said. "They will enhance the quality of life and attractiveness of the city for residents, visitors and prospective residents alike."