Resolution To Pursue Sales Tax Increase For Hermantown Passes
For Immediate Release – January 21, 2020
Resolution to Pursue Sales Tax to Support Community Recreation Passes
Hermantown, Minn. – Hermantown’s City Council took the initial step toward pursuing a sales tax increase through a potential ballot measure in November. The resolution – passed by a 4-1 vote – allows Hermantown to pursue support from the Minnesota Legislature to place the sales tax question on the general election ballot later this year.
The request, should the voters approve the ballot measure, would be for a sales tax increase of 0.5% to support funding an array of community recreation initiatives. These would include additions to the current Hermantown Hockey Arena, including an additional sheet of indoor ice, improved outdoor rinks, and more, as well as the reconfiguring and addition of turf to Fichtner Field and the ability to extend accessible paths and trails to connect key components of Hermantown and extend to meet trail systems beyond the City’s borders.
This resolution is only the first step in a lengthy process, allowing Hermantown to attempt to receive state legislative approval to have the question added to the ballot in November. At that point, Hermantown citizens will be able to vote on the possible sales tax increase.
A draft of an Economic Impact Study, performed by the University of Minnesota-Duluth’s Bureau of Business and Economic Research, showed a positive economic impact for the region’s overall economy regarding the hockey arena portion of the three-pronged project solely. The remaining two projects have not had similar assessments performed regarding their expected economic impact for Hermantown or the greater region.
Should the request be granted by the Minnesota Legislature and then passed by Hermantown voters in the general election in November of 2020, the half-percent increase in sales tax would generate an expected $1.5 million annually. The projected annual debt service for the three projects would be $1.4 million. The total cost to all three portions of the project would be $19 million.
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For more information contact: Joe Wicklund, Communications & Community Relations Manager, City of Hermantown via e-mail at [email protected] or via phone at 218.729.3614.