Staff photo/Jane Howard The 1% tax committee of elected officials met Monday, July 27, 2009 at the courthouse to try to narrow down a list of projects that could be funded from a proposed countywide 1% sales tax. The committee is weighing its options carefully and hopes for more input from the community.
With only three months until the community will be offered the opportunity to pass a 1% sales tax referendum that could fund up to $20 million in community improvements, the committee of elected officials designing the referendum is still trying to decide what improvements to include.
The county board and representatives from the Grand Marais City Council, the ISD 166 school board, and the West End townships met Monday, July 27, 2009 to try to move toward a decision on which projects to present to the community.
The list has been narrowed to outdoor recreation facilities in Grand Marais and at Birch Grove Community Center (at projected costs of $3 million and $1.5 million, respectively), Superior National Golf Course improvements ($900,000), Grand Marais Public Library expansion ($800,000), countywide broadband Internet access ($17 million needed in addition to a potential federal grant), and a multiuse community center facility ($12 million). A biomass-fueled energy plant was tentatively taken off the list after the City of Grand Marais decided to pursue stimulus funding for it.
Consultant Mike Fischer of LHB Corporation outlined the research that Ballard King, another consulting firm, had conducted regarding the feasibility of a multi-use community center facility, including whether the local community would have the money to use it. The study showed that while Cook County’s median household income is lower than the national average, so are its housing costs, leaving residents with more disposable income than the national average, Fischer said.
LHB engineer Mark Wentzel showed possible site plans and photos of other projects he has designed. The 43,950-square-foot facility he proposed would include an extra large multi-use gymnasium with a running/walking track; an aquatic center; locker rooms for men, women, and families; a fitness center; a group exercise room; three 900-square-foot conference rooms interconnected by a movable wall (for classrooms or banquet seating for up to 250); a commercial serving kitchen; administrative offices; a vending area; rest rooms; and a public lobby with lounge area.
According to Wentzel, fitness centers “are the most popular way to sell memberships” and are necessary to the success of such facilities. Organizations tend to rent conference rooms frequently when they are part of a multi-use facility, he said.
“Without a doubt the hottest trend in aquatics is the leisure pools,” the Ballard King study states. Their slides, rivers, and fountains generate up to 25% more revenue than conventional pools, and the higher cost of operation tends to be offset through increased revenues. “Of note,” the study states, “is the fact that patrons seem willing to pay a higher user fee at a leisure pool than a conventional aquatics facility.”
Would a multi-use community center be able to generate enough revenue to cover the cost of operating it? Fischer proposed setting the cost of daily passes at $5.00 for adults and $4.00 for youth and seniors, with no discounted family passes. Discounted ticket books could be sold, however. Fischer proposed annual memberships of $240 for adults, $180 for youth and seniors, and $480 for families, lower than the typical family rate of $600-800 in the Twin Cities.
Ballard King estimated that a community center on county property near the school would bring in $218,648 a year—$554,966 short of the $773,614 needed to operate it. This is a 28% recovery rate, which is “not good,” according to Fischer, but it’s not the end of the story.
While the committee had decided not to locate a community center in the Grand Marais Recreation Area, Fischer asked them to reconsider the idea. Thecensus data upon which the revenue figures were based did not account for the considerable tourist population, Fischer said, and locating the facility in a location more visible to visitors could increase usage significantly (something some locals have been arguing all along).
Fischer recalculated the figures to include potential increased usage from visitors if the facility was located in the rec. park and suggested that the annual operating loss would go down to $325,208, bringing the recovery rate up to 58%.
Fischer argued that the county, the school, and the city are already subsidizing things like the curling rink, the county extension office, the senior center, the municipal pool, youth sports, and the school fitness center in an amount totaling $481,435. He contended that collaboration among governmental units and reallocation of current expenditures could help close the gap between expenses and revenue but would not bring it to zero. County Commissioner Bob Fenwick recommended caution in calculating which subsidies would still be separate from the facility and which could be transferred into facility costs.
When the municipal pool was built in the 1970s, Commissioner Fritz Sobanja said, it was believed that the tourist population would help subsidize it, but it did not. Are we making the same mistaken assumption all over again? he wondered.
Governmental units will always subsidize recreation, school board member Rod Wannebo said.
Some of the committee members agreed with the idea of locating a facility in the rec park. We’re a tourist community, Wannebo said, and we need to put aside the idea that there’s a difference between the tourists and the community. “Without tourism, where would we be?” he said.
In the audience was City Administrator Mike Roth, who suggested locating Grand Marais’ visitor’s center in the facility. Another audience member, Grand Marais Area Tourism Association (GMATA) Director Diane Brostrom, thought the idea was “brilliant,” and suggested creating a sales position to sell use of the facility. Thiscould add a “wellness niche” to the tourist industry, she said.
Many developers would have liked to use the harbor to bring tourist dollars to the city, County Commissioner Bob Fenwick said. Now they were talking about using “the most valuable piece of property in Grand Marais and maybe the county” and spending government money on it. He said he wonders what the role of government should be in this. He is not opposed to the ideas that have been proposed, he said, but the county believes that broadband access would be a sufficient use of the tax.
Community member Gene Glader said he sees broadband and a new community center going hand in hand because they would both bring business to the area.
The 1% Local Option Sales Tax Committee will discuss these issues further Monday, August 3 at 7:00 p.m. at the courthouse. Themeeting is open for public observation. A discussion with the public will be held at a later date, but committee members hope to gather more opinions from community members between now and then.
One Percent Steering Committee Project Criteria:
»»Improves quality of life countywide
»»Considers long-term operations and
maintenance
»»Creates recreation and cultural
opportunities for all ages
»»Supports healthy communities
»»Enhances needed infrastructure
»»Creates jobs for locals
»»Projects located strategically across
county
»»Creates revenue leading to a vibrant
economy
»»Creates economic development
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