City likely to let the voters decide on facilities upgrades

Published 6:05 am Wednesday, January 10, 2024

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The Albert Lea City Council voiced informal support Monday for having voters decide whether to proceed with a series of proposed maintenance and enhancement projects at the city’s recreational facilities.

During discussion about the issue during the work session ahead of the regular meeting, councilors said they thought the public should be able to weigh-in about the projects, which are estimated to cost about $11.8 million. Projects include work at City Arena, the city pool and the Marion Ross Performing Arts Center and adding restrooms near the splash pad.

After taking into account $2.4 million available in federal funding for energy-saving projects, the remaining cost would be about $9.3 million.
If approved as now proposed, the projects would increase taxes 9% — or $47.50 annually — for a home valued at $100,000, which is at or below the average value of residential properties in the city, said City Manager Ian Rigg. Estimates for impacts to commercial properties were not yet available.

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Though the council will officially vote Jan. 22 how it plans to finance the projects, Rigg during the work session talked with the councilors about the funding options available to the city.

All of the options would ultimately have the same impact on taxpayers, and would be in effect for 20 years, but an election bond authority would give residents the ability to choose whether to proceed with the projects. Utilizing a tax abatement bond or equipment certificate would not.

Fourth Ward Councilor Sherri Rasmussen said she has spoken to a lot of people who are concerned about their property taxes but who also recognize the importance of the projects. She said it is important to get the community involved and get buy-in.

Third Ward Councilor Jason Howland said he agreed with the notion of going out for a referendum but noted there should be consequences if the public votes it down, instead of moving forward with it through another funding mechanism.

He noted, however, he did not think the issue would get voted down as the community has a history of supporting similar votes.

Rigg said election bond authority is the most common bonding option for municipalities for recreation facilities and would require a simple majority vote.

If the council decides to move forward with a referendum, the actual vote would take place in April or May, and the deadline for the referendum language for the ballot is due right after the Jan. 22 meeting.

Sixth Ward Councilor Brian Anderson asked if the referendum were to fail, if there would be parts of the project that could be piecemealed.

Rigg said he thought the most important projects — if the city wishes to maintain ice — would be the projects at the arena, particularly the new floor in the Colstrup Arena, the chiller and support beams.

When asked what city’s staff’s recommendation was for financing, Rigg said the financing outcomes would be the same through all mechanisms, but his biggest concern was he didn’t want to see such a large payment going to tax abatement for this project with other potential projects in the works.

He said if the council opts to go with tax abatement, they should make this amount as small as possible and make the equipment certificate as large as possible.

If the council decides to go with an election bond, he suggested only using the equipment certificate to cover the incentives.

Cathy Malakowsky, director of engagement and enrichment for the city of Albert Lea, talked about the community outreach the city has had thus far about the project through the Parks and Recreation Advisory Board, council meetings and last week’s open house. There have also been several posts on social media as well as a survey that was promoted in the city’s weekly newsletter and on social media.

She said the project receiving the highest rating thus far on the survey was the new restrooms near the splash pad.

“People strongly favor doing these projects,” Malakowsky said.

Rigg said the city is implementing new technology at some of the other existing city restroom facilities, including automatic locks, as well as more monitoring, to see if they can help curb vandalism. They have seen success so far.

Rasmussen asked at what point she or others could suggest parts to remove from the list of projects to help alleviate some stress on the taxpayers.

The meeting ended with the consensus that councilors would bring their suggestions back to the next meeting.

Mayor Rich Murray thanked the council and city staff for the work done thus far on the projects.

“Ultimately the public, the community is going to decide what we’re going to do here,” he said.

He noted one of the most common things he hears from people in the community are about having things to do. These projects involve just that and bring in thousands each year from both in and outside the community.

He said he thought it was important to have more information about how the projects would impact businesses.

The council will take up the issue at its next meeting and voted to move forward with the preparation of plans for the projects.

The city’s survey about the projects can be found at http://tinyurl.com/mw938jtk through Jan. 22.