City

readies for

vote on

sales tax

Funds would

support park

and rec updates

CHRIS VETTER

Journal Staff Writer

NEW ULM -- With the general election two months away, city officials are putting the finishing touches on plans for a proposed half-cent sales tax increase. The sales tax increase would be earmarked for park and recreation improvements within the city.

Council President Dan Beranek said he is "90 percent sure" the council will choose 'Option Four,' which would include a new ice complex at the Brown County Fairgrounds, a vastly expanded senior center and renovations at the Vogel Arena.

Voters will decide Nov. 7 if the projects move forward. Passage of the referendum would allow the city to seek bonds for the new facilities.

Beranek said the city prefers to build the ice complex, featuring two ice sheets, in the southeast corner of the fairgrounds. Beranek expects to see a rough-draft lease this week from the Brown County Agricultural Society, who manages the fairground property. A lease would likely be 20-25 years in length and would give the Agriculture Society permission to use the new facility for exhibitions and shows on the land, Beranek said.

"That's the big kicker (remaining)," he said.

The city has one other detail it needs to iron out before it presents the project to the voters: the size and cost of the project.

Thomas MacAulay, assistant city manager, explained that the city is only allowed by state law to seek $9 million in bonds for the projects. However, 'Option Four' has a pricetag of $11.7 million. MacAulay said that proposal would have to be scaled back 20 to 25 percent to fit under a $9 million cap.

Beranek said the city has talked with the architect about scaling back the cost of the project. One price reduction might come from leasing refrigeration equipment for the ice facility, rather than buying new materials now. Other possibilities include reducing the size of some of the facilities.

MacAulay likes the idea of building the $8.5 million ice sheet facility at the fairgrounds, saying one of the ice sheets can be converted to exhibition space for events on the grounds, while the other sheet can be used for hockey and figure skating throughout the entire year.

"Certainly the demand for ice is strong," MacAulay said. "But just as important is the need for space for shows, which we are really limited in right now."

MacAulay believes that improved ice facilities will lead to more out-of-town consumers.

"If the space is there, they will come," MacAulay said. "It will be rented. It will be a big asset to the community."

The additional building would be an asset to larger events at the fairgrounds, like Heritagefest, MacAulay contends.

"They need more space and better facilities," he said.

Beranek favors moving the ice sheets because it opens space at Vogel Arena for two basketball courts and a gymnastics area. Also, space is limited at the Vogel Arena, making it difficult to add another hockey site, Beranek said.

"You don't get the gymnasium space you need with 'Option Three,'" Beranek said. "If we need to expand, (the fairgrounds facility) gives you more options."

The half-cent sales tax would repay the $9 million of bonds issued for the project. City officials estimate the tax would be in effect 18-20 years.

Several towns in Minnesota have a half-cent sales tax for local projects, including St. Paul, Duluth and Mankato. MacAulay noted that Mankato officials used the sales tax increase to construct the Midwest Wireless Center.

'Option Four' would double the senior center on its existing site. Earlier plans would have moved the senior center to the fairgrounds, but those plans have been dropped.

The senior center improvements would include space for arts and crafts classes and a stage area for performances.

There are no plans for soccer fields in 'Option Four.' Beranek said the city must meet with officials from the Park & Recreation Department and Martin Luther College to determine when fields at the college will be available. The city might have a better sense of how to fund soccer fields when councilors see the proposed city budget next week, Beranek added.

If the referendum does not pass this year, Beranek said it is unlikely it will be before voters soon. The city had to seek permission from the Legislature for the referendum, and Beranek does not anticipate returning to the Capitol seeking another chance.

"Realistically, if it fails, 10 years will go by before we take a shot at it again," Beranek said.