6/16/2008 5:35:00 PM Ice group seeks tax abatement
The Becker/Big Lake Ice Association had many members attend Wednesday’s meeting as they asked for tax abatement for their new ice arena.
By Lynn Woolhouse Staff Writer
The Becker/Big Lake Ice Association presented their request for tax abatement at the Big Lake township meeting Wednesday night.
Dave Kuenstler and Kent Vickerman of the BBLIA presented the economic development abatement plan.
The purpose of the plan would support the construction of the ice arena through tax abatement.
"This means no money would be taken from current revenue streams," explained Vickerman.
The BBLIA wants to abate $105,000 annually to go towards the ice arena bond debt service.
"Tax abatement is one of the primary incentives available to local governments to promote economic development," said Vickerman.
The association hopes to include the Big Lake Township, Big Lake School District and Sherburne County as abatement stakeholders. The City of Big Lake unanimously approved their part as a stakeholder last week.
The total cost for the ice arena is estimated at $3.5 million.
The county bond the association hopes to receive is 86 percent of the total cost, or $3,000,000.
The BBLIA pledge drive will pay the remaining $500,000.
Based on the $3 million bond at 3.9 percent ($216K annual payment), the BBLIA overall cost percentage is 33% or $71,363 annually.
The Great River Energy (GRE) tax abatement is planned to cover 49% or $105,963 of the annual payment.
These total $177,327, leaving the BBLIA short $38,925 of the $216,000 for the annual payment.
"This is common," said Kuenstler.
"We have some work to do on attaining the shortage but we want to get this approved first."
The estimated total for the Big Lake township is $1590 per month, about 20% of the annual county bond repayment.
The BBLIA plans to propose the tax abatement to Big Lake School District and then Sherburne County.
"Do you have all the maintenance and utility work of the arena included in the numbers?" asked Chairman Jim Sanford.
Kuenstler and Vickerman assured Sanford and the board everything is included in the plan.
The township board decided to review and check the association's figures before making a decision at there next meeting June 28.
The present struggling economy was a concern voiced by Treasurer Ken Warneke.
"Things can change daily in the economy," he said.
"We need to look to the future," answered Kuenstler.
"This is an attractive proposal with what you will get back," he said. "And if we wait, it will cost more in the future."
The township then approved the town hall expansion finishing work estimates.
After KWPH defaulted their contract last month, the township approved for Moore's Construction and Steve's Nursery to complete the remainder of the project.
The township also approved a motion to look into washing and sealing the entire structure once the project is complete.
Board Members Norm Leslie and Larry Alfords then updated the board on the informational meeting they attended for the proposed racetrack.
"They really didn't have anything for us," said Alfords.
Alfords and Leslie asked questions of the racetrack representatives and were unable to get legitimate answers.
"We asked what other facilities have you done?" and "What are some issues?" said Alfords.
According to Alfords and Leslie, the 35 mile distance from Minneapolis was a concern of the racetrack representatives and the continuous 900-acre stretch of land.
"We also discussed how many other tracks are away from the city and this one is just two miles from Big Lake," said Alfords.
"It seemed they didn't want to talk about the issues," said Alfords, "but we planted seeds with them."
"It did come off as if they never have done a building like this before."
"They made a very strong statement that the community should be behind the project," said Leslie.
