The 1% Local Option Sales Tax Committee made up of the entire county board and representatives of other local governmental units spent almost four hours Monday, August 10, 2009 deliberating over what projects to include in the proposed tax coming to a referendum this fall.
Seven projects were discussed: outdoor recreational facilities in Grand Marais, outdoor recreational facilities at Birch Grove Community Center in Tofte, countywide ultrahigh speed broadband Internet access, a Grand Marais Public Library addition, a multi-purpose community center building, a biomass fueled energy plant to provide heat and electricity to public—and possibly residential and business— buildings in Grand Marais, and capital improvements to Gunflint Hills Golf Course.
The committee and consultant Mike Fischer talked about how to determine which projects should be included. Fischer suggested that they consider the amount of outside funding each project would leverage. Another consideration was how much benefit voters from various parts of the county would perceive from each project.
Fischer also suggested that they consider which projects could bring revenue to the county (broadband, energy plant, golf course) vs. which projects would add quality to the community but would not generate revenue or would require ongoing subsidy (outdoor recreational facilities, the library, and the community center).
The group also discussed keeping projects that would not be possible without the 1% tax.
In preparing to discuss the possibilities with the community at a public meeting to be held at the courthouse at 7 p.m. Monday, August 24, the committee tentatively suggested that the biomass plant and the golf course improvements be left off the list and that the other five projects be funded in the following amounts: Grand Marais outdoor recreation, $600,000; Birch Grove outdoor recreation, $500,000; broadband, $9,200,000; library, $700,000; and community center, $9,000,000.
The legislation authorizing the tax allows the county to collect financing costs in excess of the $20,000,000 project costs.
Leaving the biomass plant off the list does not mean the committee does not support it. Fischer pointed out that the plant would offset the operating costs of a new community center. City Councilor Tim Kennedy said that if the City of Grand Marais is awarded a grant it has applied for, it would need to come up with $5,000,000 in matching funds. Bonding for such a project, however, could be easier than bonding for other projects since the energy savings the plant would bring to the city would end up paying for the plant itself.
Some of the amounts requested by various community groups were whittled down. Theoriginal plan for outdoor recreational facilities called for $3,000,000 of additions and improvements, including two new baseball fields for $500,000, improvements to existing facilities for $350,000, a trail system for $100,000, and soil correction for $200,000.
Tofte town supervisor D.C. Olsen offered numerous ways the West End community could bring the costs of outdoor recreational facilities down.
Commissioner Bruce Martinson pointed out that Superior National is already charging a 3% greens fee for capital improvements.
Fischer said his office had reduced the size of the proposed community center to bring the cost down to $9.5 million but recommended that the facility include many community amenities in order to consolidate maintenance and administrative costs now being incurred at various facilities throughout the community.
The committee spent considerable time discussing whether to keep a community center on the list. Commissioner Jim Johnson advocated eliminating it, saying he was concerned about operating costs and thought it would be better to take more time to plan it and then seek other funding.
Community Center Director Diane Booth said committees have spent years coming up with plans for a new community center and pool but have been told in the end that no money was available to build them.
Gene Glader indicated that a community center with a pool is one of the most useful projects that could be built with sales tax. “There comes a point where a community has to fund a public beach or pool for the common good,” he said. “If you took this out of the picture, then I think you’ve got a big problem [in selling the referendum],” he said.
Mayor Sue Hakes recommended scaling the project down to $4-5 million and phasing in additions over time. Not to turn a recreation tax into a pool facility would be “hugely disappointing,” she said.
What to include in a community center could be discussed once the “seed money” is in place, Commissioner Bob Fenwick said.
With every project you cut, D.C. Olsen said, you will lose votes.
Fischer proposed attaching a community center to the current community center building or the school complex but said he hasn’t heard much enthusiasm for the latter idea. School board member Rod Wannebo said the school is likely to have extra room as the student population continues to decline.
Commissioner Fenwick suggested that while some projects could be dropped from the 1% tax, the community’s leaders could still commit to making them happen. “I think they’re all viable,” he said.
Public Hearing On
1% Sales Tax propos ed uses
7:00 p.m. · Monday, August 24
Cook County courthouse
411 W. Second Street, Grand Marais
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