2023-121
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: January 23, 2023 RESOLUTION NO: 2023-12
MOTION BY: McDonald SECONDED BY: Kimber
RESOLUTION REQUESTING THE MINNESOTA STATE LEGISLATURE FOR THE
AUTHORITY TO HOLD A REFERENDUM TO IMPOSE A LOCAL SALES TAX TO FUND
SPECIFIC CAPITAL IMPROVEMENTS PROVIDING REGIONAL BENEFIT
WHEREAS, the City of Chanhassen convened a Parks Referendum Task Force comprised of
commission representatives and residents in 2022. The group met over the course of the year to develop
priorities and identify funding strategies; and
WHEREAS, the local option sales tax emerged as a desired funding source; and
WHEREAS, the community has responded to public outreach efforts with the desire for the city
to build a more comprehensive community center facility. However, the city does not own sufficient
land for such a project; and
WHEREAS, the City of Chanhassen has the opportunity to enter into a public-private
partnership to build a recreational facility at the Avienda development that would meet the needs of the
community and the region; and
WHEREAS, the city has identified a unique opportunity for the region:
1. Avienda Recreational Facility. ($30-40M)
This public-private partnership would be located on approximately 16 acres in the SW corner
of the Avienda development in Chanhassen. The facility would include 2+ sheets of ice, a
walking track, and community meeting space. The site is conveniently located to serve the
region, with direct access to Hwy 212. The site will be designed with industry-leading
stormwater management techniques; and
WHEREAS, the project will result in benefits to both the residents and businesses of the City of
Chanhassen and to non-resident visitors and businesses; and
WHEREAS, funding the project with a local option sales tax will more closely distribute the
cost of the project to the user of the facility; and
WHEREAS, the city’s share of the project is estimated to be no more than $40 million; and
WHEREAS, the city estimates that a local sales tax of 0.5 percent would generate $1,700,000
annually; and
WHEREAS, the estimated local sales tax revenue and estimated time needed to raise that
amount of revenue for the project is as follows:
Avienda Recreational Facility. The city will collect up to $40,000,000 over 20 years; and
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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.
NOW, THEREFORE, BE IT RESOLVED THAT
1. The Chanhassen City Council supports the authority to impose a general local sales tax of 0.5
percent for a period of 20 years to fund the aforementioned project.
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 a detailed ballot question on a general election ballot for local voter approval. This
will be done within two years of receiving legislative authority.
5. If the ballot question passes, 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
twenty (20) years or until a sum sufficient to fund the voter-approved project, including related debt
costs, is raised, whichever comes first.
PASSED AND ADOPTED by the Chanhassen City Council this 23rd day of January, 2023.
ATTEST:
Kim Meuwissen, City Clerk Elise Ryan, Mayor
YES NO ABSENT
Ryan Schubert
McDonald
von Oven
Kimber
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