8/4/2008 5:28:00 PM School sets hearing
on ice arena abatement
By Jennifer Edwards Staff Writer
Plans for a new ice arena in Big Lake took one more small step forward last week when the Big Lake Board of Education set a date for a public hearing on the proposed tax abatement which would help fund the project.
The public hearing has been scheduled for Aug. 21 at 6:30 p.m. in the board room, with the lecture hall for a back-up location if the hearing is well-attended.
The Big Lake Ice Association is proposing to build an arena in the Big Lake Marketplace. They have the land and are paying property taxes on it.
The City of Big Lake agreed to abate property taxes on the Great River Energy building which is to be constructed in the Big Lake Marketplace development in 2009, provided at least two of the three other taxing bodies agreed to tax abatement as well.
The other taxing bodies are the school district, the Big Lake Township Board and the Sherburne County Board of Commissioners.
The ice association, led by Chris Stalpes and Kent Vickerman, then approached the Big Lake Township Board of Supervisors, who agreed to the proposal only if all four taxing jurisdictions agreed.
"As I understand it, the dollars are paid in full but directed to a specific project," said Board Chair Tim Hayes. "It is a rebate, not an exemption from paying taxes."
The total amount of taxes to be abated is $96,000 per year over the next 20 years. The amount the board of education would be abating is $27,000.
The finance committee met with Kristen Hanson and Caroline Drude of Ehlers and Associates prior to the meeting. Drude and Hanson were present at the board meeting and have agreed to attend the public hearing to answer questions.
Since the Great River Energy building has not been built yet and won't start contributing property tax dollars until 2009, this money isn't already accounted for in any budget, Vickerman said.
"How does this effect our levy?" asked Tim Stockstead.
"It does add $27,000 to the levy, but spread over all the households in Big Lake, it's only $2 or $3 per year per household," said Treasurer Kevin Phillippe. "If we don't pass it the money would help reduce property taxes next year but only by that much."
Three members of the public asked to address the board on the issue. Jim Jones said he doesn't play hockey but had recently learned to skate and believed children should have the same opportunity.
"The arena can be used for other things," he said. "It is in a good location. It would be a magnet. I believe it is important for the community."
Brice Green said he was the father of three boys who do play hockey and he was concerned about the late hours the players are forced to keep during hockey season because ice time is not available at rinks in neighboring communities.
"Sometimes they are practicing until 12:15 a.m." he said. "They get home so late, then have to get up for school the next morning. If we had an ice arena here, they could practice after school. I am not the only parent with multiple kids playing hockey. I ran a learn to skate program and had 60 kids, but many turned down the opportunity to play hockey because of the drive time."
Alyssa Capala urged the board to proceed with tax abatement.
"Having a hockey program is a centerpiece for most school districts," she said. "An ice arena is part of the basic infrastructure of most communities these days. An arena will attract families to our area and will help in a positive way. It's not just for hockey."
"We have to look at what's good for kids," said Hayes. "My neighbors play and sometimes they don't get home until 1 a.m. In the long term, if an arena brought five new students into the district, we would gain more in per pupil unit funding than we abated in taxes."
"We are in worse financial shape than any of the other entities," commented Dan Nygaard. "We should hear from the public. I want to know what they think about it."
