City Council Resolution 2023-13CITY OF MONTICELLO, MINNESOTA
RESOLUTION 2023-13
Resolution supporting the authority to impose a local sales tax to fund specific capital
improvements providing regional benefit, to establish the duration of the tax and the
revenue to be raised by the tax, and to authorize the City to issue bonds supported by
the sales tax revenue.
WHEREAS, the City of Monticello, Minnesota (the "City") has engaged community
residents and businesses and identified two community projects of regional benefit including:
(i) the acquisition, construction and equipping of various improvements to the future
Bertram Chain of Lakes Regional Athletic Park, including but not limited to an athletic park with
various sports fields and related amenities to host game play, practices, and tournaments,
recreational and pedestrian trails, playgrounds, tennis courts, skating rinks, a parking lot,
lighting, concessions and restrooms, located within Monticello Township and jointly owned by
Wright County, at an estimated cost of $22,000,000 (the "Bertram Chain of Lakes Regional
Athletic Park") ; and
(ii) the acquisition, construction and equipping of various improvements to the future
Pointes at Cedar Recreation Area, including but not limited to a stormwater pond, which will
serve as a significant recreational water feature, surrounded by a series of recreational
pedestrian trails and interconnected public spaces for discovery, at an estimated cost of
$63,000,000 (the "Pointes at Cedar Recreation Area" and together with the Bertram Project
Chain of Lakes Regional Athletic Park, the "Projects");
WHEREAS, the Projects will result in benefits to both the residents and businesses of the
City and to non-resident visitors and businesses; and,
WHEREAS, funding a portion of the Projects with a local sales tax will more closely
distribute the cost of the Projects to the users of the facilities; and,
WHEREAS, the Projects are estimated to cost approximately $85,000,000 including
$22,000,000 for the Betram Chain of Lakes Regional Athletic Park and $63,000,000 for the
Pointes at Cedar Recreation Area plus an amount equal to interest on and the costs of issuance
of any bonds; and,
WHEREAS, the City estimates that a local sales tax of 0.50 percent would generate
$30,000,000 over 20 years; and,
WHEREAS, the City has provided documentation of the regional significance of each
project, including the share of the economic benefit to or use of each project by persons
residing, or businesses located, outside of the jurisdiction including but not limited to materials
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attached hereto as Exhibit A; and,
WHEREAS, the estimated local sales tax revenue and estimated time needed to raise
that amount of revenue for a portion of each project is as follows:
- For the Bertram Chain of Lakes Regional Athletic Park: The City will collect
$15,000,000 over 10 years.
- For the Pointes at Cedar Recreation Area: The City will collect $15,000,000 over 10
years.
- Plus for the costs of collecting and administering the tax and the costs of issuing any
bonds including interest on any bonds issued supported by sales tax revenue.
WHEREAS, Minn. Stat. § 297A.99 authorizes the imposition of a general sales tax if
permitted by special law of the Minnesota Legislature; and,
WHEREAS, Minn. Stat. § 297A.99 requires the City to pass a resolution authorizing such
a local tax and to obtain Legislative approval prior to approval by the local voters to enact the
local tax;
THEREFORE, BE IT RESOLVED the following:
1. The City Council supports the authority to impose a general local sales tax of 0.50
percent for a period of 20 years to fund a portion the aforementioned Projects;
2. Upon approval of this resolution, the City will submit the adopted resolution and
documentation of regional significance to the chairs and ranking minority members of
the House and Senate Taxes committees for approval and passage of a special law
authorizing the tax, by January 31 of the year that it is seeking the special law.
3. Upon Legislative approval and passage of the special law authorizing the tax, the City
will adopt a resolution accepting the new law, which will be filed with a local approval
certificate to the Office of the Secretary of State before the following Legislative
session.
4. The City will put detailed ballot questions, which include separate questions for each of
the Projects and authority for issuance of bonds, on a general election ballot for local
voter approval. This will be done within two years of receiving legislative authority.
5. If one or more ballot questions pass, the City will also pass an ordinance imposing the
tax and notify the commissioner of Revenue at least 90 days before the first day of the
calendar quarter that the tax will be imposed.
6. Upon completion of the aforementioned requirements, the local sales tax will
commence and run for 20 years or until a sum sufficient to fund a portion of the voter
approved Projects, including amounts sufficient to pay interest on the costs of issuing
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any bonds, is raised, whichever comes first.
ADOPTED BYthe Monticello City Council this 23" day of January, 2023.
CITY OF MONTICELLO
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EXHIBIT A
DOCUMENTATION OF REGIONAL SIGNIFICANCE
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