01-24 Resolution No. 12067
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RESOLUTION NO. 1206 7
A RESOLUTION APPROVING A LOCAL SALES TAX AND
AUTHORIZING ACTIONS TO BE TAKEN BY THE CITY OF
RICHFIELD IN CONNECTION WITH SUCH TAXES
WHEREAS, the City Council of the City of Richfield, Minnesota (the “City”), has identified
three regionally significant capital improvement projects for local sales tax consideration; and
WHEREAS, the City has proposed several regionally significant projects and improvements of
which the capital costs cannot be adequately funded with existing resources. The City desires to submit a
proposal to the Minnesota Legislature to allow the City to propose a 0.5% (one half of one percent) local
sales tax (“sales tax”) to voters to be imposed on the gross receipts from taxable retail sales in the City.
The proceeds of the sales taxes would be used to pay the capital costs of constructing and rehabilitating
the regionally significant projects described below. The sales tax will be in effect until the capital costs
of the projects, interest and financing costs related to the issuance of bonds, are paid or 20 years after
imposition of the sales tax, whichever is earlier; and
WHEREAS, Minnesota Statutes, Section 297A.99 provides, in part, that a political subdivision
may impose a local sales tax if permitted by special law and if approved by the voters of the political
subdivision, and that before a governing body requests legislative approval of a special law for a local sales
tax, the governing body must adopt a resolution indicating approval of the tax. The resolution must also
provide the following: the proposed tax rate; how the revenues will be used; 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 the jurisdiction; the total revenue that will be raised before the tax
expires; and the estimated length of time the tax will be in effect.
BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows:
1. The City Council hereby requests the authority to propose a local sales tax in the amount
of 0.5%, to the voters of the City of Richfield. The city estimates a local sales tax of 0.5% would generate
approximately $3.5-6.7M million annually over 20 years for estimated total sales tax revenues of
approximately $98 million. The anticipated total project costs to be financed with sales tax are estimated at
$65 million. Total debt service on the bonds to be issued, including interest and financing costs over 20
years, is expected to be approximately $94 million.
2. The revenues derived from imposition of the sales tax will be used to pay the capital costs
of constructing, rehabilitating, and the associated interest and financing costs for these regionally significant
projects: (a) Wood Lake Nature Center Building; (b) Veterans Park Complex; and (c) Community Center
Projects (collectively as the "Projects").
3. The Wood Lake Nature Center ("WLNC") is a regionally significant place of
environmental education in the metro area. The WLNC serves as a gateway to nature for residents and
visitors across the region. The WLNC sees over 100,000 people visiting each year with 22,500 people
attending programming. At 51-years-old, the building needs replacement. The building in not ADA
accessible, is infested with rodents, and is no longer able to provide the high level of environmental
education and immersion the region expects and deserves. A new WLNC building will enable Richfield to
meet ADA standards and greatly improve upon the appearance, condition, and functionality of the old
building. The proposed WLNC building is 19,000 square feet with modern classrooms, inviting engagement
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areas, and indoor and outdoor learning spaces. Trail improvements would help prevent annual flooding.
The WLNC currently hosts over 730 free to low-cost programs annually; 65% of program attendees are
from outside of Richfield and 70% of those that rent equipment such as cross-country skis and snowshoes
are non-Richfield participants. Thousands of school-aged students enjoy award-winning environmental
education programming every year, coming from school in communities such as North Minneapolis, Edina,
St. Paul, and Bloomington. The WLNC puts on an annual race that supports free field trips to the local
school district that has over 70% minority enrollment and offers a bus scholarship to any schools across the
region that need field trip support. Over 4,300 volunteer hours are served at WLNC each year, this amazing
team represents a wide variety of cities across the metro area. The WLNC is truly an accessible regional
gem that continues to serve as a vital bridge from our busy urban environment to the natural world. The
WLNC is an estimated $24 million construction project, about half will be covered by partner funding,
the remaining $11 million will be covered by the sales tax. The sales tax will be in effect until the
project’s costs of approximately $11 million, plus interest and financing costs as referenced above, are
paid or 20 years after imposition of the sales tax, whichever is earlier.
4. The Veterans Park Complex Project (the “Veterans Complex”) would protect and
enhance the existing services provided by the current ice arena and pool. The Veterans Complex project
would update outdated, structurally limiting facilities at the Veterans Complex, specifically this would
revitalize the pool which was installed in 1961 and is already on borrowed time. The Veterans Complex
project has regional significance because the pool provides recreational opportunities for hundreds of
thousands of visitors, from across the state, each year. The pool also serves to provide a respite from the
heat for people across the metro area during the hot summers, over 35% of all pool passes holders are from
Minneapolis alone. The Veterans Complex also includes the ice arena, which is home to the Minnesota
Whitecaps, a women’s professional ice hockey team in the Premier Hockey Federation. The Minnesota
Whitecaps play teams from all over the United States and Canada, with upwards of 1,800 hockey fans
attending each of the 12 home games per season. Besides being a home to the Minnesota Whitecaps,
the arena hosts the Adult Hockey Association and many regional recreational and youth organizations
such as the Minneapolis Storm, and Jefferson and Edina Youth Hockey. On average the arena hosts
over 15 hockey tournaments a year, drawing people from as far away as California and Canada.
Annually, the arena hosts all first and fourth grade students from Richfield Public School (over 70%
minority enrollment), for a free Learn to Skate Program that provides access and opportunity for
students to experience the sport of skating. The arena hosts numerous figure skating competitions and
hockey championships, bringing in visitors from across the state. The arena is also home to the
Richfield Curling Club, one of just 29 clubs in the state, drawing curlers from across the state. The
arena sees an annual visitor amount of 500,000, many from outside the metro. This is an estimated $9
million project. The sales tax will be in effect until the project costs of approximately $9 million, plus
interest and financing costs as referenced above, are paid or 20 years after imposition of the sales,
whichever is earlier.
5. The Richfield Community Center Project (the “Community Center”) is a regionally
significant place of community meeting and gathering, continuing education, and resident support
services for the area. Since 1975, the Community Center has been housed in the original county library
constructed in 1961. It is an old building that requires many upgrades to remain functional. Even with
improvements, however, the building itself currently meets only some of our community’s needs.
There is a significant need for a new building that will better fit present demand and future usage as we
still support the programs at the Community Center. Daily, the Community Center hosts a large
breadth of senior programming that includes active wellness, daily fitness and learning classes as well
as the last public communal lunch program for seniors in Minnesota. The Community Center hosts an
annual tax program that serves over 600 people from around the region. There are numerous weekly
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and monthly special events such as Fare for All, seasonal food markets and art boutique that draw
participants from the metropolitan area, as well as adaptive recreation programs. The Community
Center is accessible being located on a major bus and bike route, so it is an easy destination for many
across the region. This is an estimated $55 million project, its estimated $45 million will be covered
by the sales tax, with the remaining amount covered by other sources. This may include a future parks
funding through a property tax referendum. The new Richfield Community Center will fit the current
and future needs of the regional community and include spaces for people of all ages to gather to be
active, learn and foster wellness opportunities. The sales tax will be in effect until the project costs of
approximately $45 million, plus interest and financing costs as referenced above, are paid or 20 years
after imposition of the sales, whichever is earlier.
6. It is in the best interest of the health, welfare, and safety of the City and its residents
and it is necessary and expedient to the sound financial management of the affairs of the City that the
acquisition and betterment of the Projects, or any part thereof, be financed in whole or in part by the
issuance and sale of the City's general obligation bonds (“Bonds”) pursuant to the City's Charter,
Minnesota Statutes, Chapter 475, as amended, or any other applicable law. The anticipated total
financing costs is estimated to be $94 million and the total revenues to be generated from the local sales tax
is expected to be approximately $98 million. The local sales tax will be used to pay the principal amount
of one or more series of Bonds and the interest accruing on such bonds. The City may accept an offer to
purchase the Bonds, and the City may sell the Bonds, at a price that results in the receipt of original issue
premium in any amount.
7. The City Treasurer and the City Manager, or their designees, are hereby authorized to take
all actions necessary or appropriate, and in accordance with applicable laws of the State of Minnesota, to
prepare and submit to the Minnesota Legislature for enactment a special law authorizing the local sales tax
referred to in this Resolution.
Approved by the City Council of the City of Richfield, Minnesota, this 24th day of January 2023.
Mary Supple, Mayor
ATTEST:
Chris Swanson, Acting City Clerk