Civic Center Expansion Taxes

03/31/2007

Katie Brandt
KTTC TV

ROCHESTER, MN -- It's been a few years coming and now with good news from the Minnesota house a civic center expansion is getting on its feet. But the state will only pay for half of the cost and as things get up and running the city is beginning to think about where the match funding will come from.

The deadline for final talks on where those matching dollars would come from is still a while away. But that certainly doesn't mean that the city isn't already thinking about it.

John Eckerman says, "we want to have this project run without property taxes increasing."

So far, property taxes don't play into the mix, but an increased hotel/motel or a food/beverage tax is a possibility.

Gary Neumann says, "what we're looking at is some combination"
John Eckerman says, "have a one percent increase in food and beverage tax which will probably go to referendum depending on how the legislature has to approve that."

That increase, combined with a higher lodging tax, might be what the city would see come fall 2008 on a referendum.

But that's a ways down the road, providing that first the state approves the planning dollars and 30 million construction dollars the city is asking for.

Gary Neumann says, "the key to the project at the civic center is getting some state assistance."

Tuesday the Minnesota house took a baby step toward giving that assistance.
In a $255 million dollar bill, planning dollars for the mayo civic center were explicitly drawn out, 2.5 million to be exact.

Donna Drews says, "This is something we've worked toward for a very, very long time so of course we're very pleased and excited."

Donna Drews says, "we will have to go back and we will have to go back and make requests for actual construction funds out of the 2008 bonding bill."

That's where the matching dollars from the city will come in to play. And a referendum proposal where Rochester would need to decide if a civic center expansion would be worth some higher taxes.

The 2.5 million planning dollars are not guaranteed.
It still needs to be approved by the conference committee and Governor Pawlenty.

Eckerman says that one other possibility is seeing some other projects bundled in to make a tax hike more appealing. Like work on the silver lake swimming pool or building a dome for certain soccer and football teams.