9/13/2008 4:41:00 PM School approves tax break for arena
TUESDAY THE BIG LAKE BOARD OF EDUCATION agreed to tax abatement to fund the new ice arena at a special meeting Wednesday. The ice association will now approach the county looking for approval for the project. Pictured above from left to right are Board of Education Chair Tim Hayes, board members Chris Chudy, Cindy Harjes, Tim Stockstead, Dan Nygaard and Kevin Phillippe. Ice Association members are Chris Stalpes, Jim Koenen and Brian Butalla. (Photo by Jennifer Edwards).
By Jennifer Edwards Staff Writer
Plans for an ice arena in the Big Lake Market place took a step forward Tuesday in a special meeting of the Big Lake Board of Education held after the primaries.
"We are very excited," said ice association member Julie Vickerman. "This is a major accomplishment."
Big Lake Ice Association President Chris Stalpes, Vice President Jim Koenen and Brad Butalla were present at the meeting to answer questions from the board. The association presented a petition with 362 in support of the arena.
"Did the people who signed this petition understand tax abatement?" asked Board Member Dan Nygaard.
"Yes, when it was explained to them," said Stalpes. "Going door to door, almost nobody said No."
The board agreed to abate their share of property taxes, about $25,000 per year, from the new Great River Energy facility in the Big Lake Marketplace for the next 15 years.
While the move will not increase local property taxes, it does mean tax money which would otherwise have been applied to lower taxes in the district will go to help build an ice arena in the Marketplace. However the amount taxes would have gone down amounts to about $3 per household.
The move to abate taxes from Great River Energy to help get an ice arena built in Big Lake began with the city.
Council members agreed to tax abatement as long as at least three of the four governing bodies who receive taxes from the Marketplace agreed. Big Lake Township Supervisors agreed to the plan with the stipulation that all four taxing jurisdictions agree to tax abatement.
"Now it is on to the county," said Vickerman. "Mr. Miller really put this thing in perspective for me last night when he said that almost everything in the city for kids has been driven by the schools. I know the school district really needs the money. This is a huge concession."
"We have begun initial contacts with Brian Bensen," said Stalpes. "And we have talked to some of the commissioners individually."
"The county is your biggest chunk," said Nygaard. "How can you make up the rest of the money you need?"
"We can sell ice time to other communities," Stalpes said. "Elk River and Monticello have already indicated they would be interested in buying a 25% share of the arena."
"Sometimes school districts contract for ice time and the contracts are used as collateral," Stalpes said. "Here we have two school districts."
The City of Becker, Becker Township and the Becker School district have not committed to helping with the project although Becker students would undoubtedly use the new arena.
The ice would be available for open skating and figure skating. The arena will also be used in the summer time for events which require a large area such as indoor soccer.
"Our plan is modeled after Sartell," said Butalla. "That is where we got a lot of our numbers from. Their arena is doing very well and running in the black. This is a very conservative plan."
"Did you consider making it a referendum question?" asked Board Member Kevin Phillippe.
"Then it would need to be sponsored by another entity. That is how it was done in Monticello," said Stalpes. "Because the school district was heading it up."
The board made a motion to approve the proposal under the conditions that the school district had no other liability with the arena, would not enter into any other joint powers agreements, had no operating costs other than purchasing ice time, their portion of the tax abatement was capped at $25,000, the agreement only continue as long the arena is operating and the term was limited to 15 years.
"I know this sounds like a lot of stipulations," said Nygaard. "Obviously we want to work with you. You have put a lot of work into this. But the school district is in a really tough financial situation. This is the best you can expect from us at this time."
"This entity can't raise revenue without a referendum," said Supt. Jonathan Miller. "We have to answer to our constituents."
The board passed the motion on a split vote 5-1, with Board Member Chris Chudy casting the 'No' vote.
"This is a unique request," said Board Chair Tim Hayes. "It does benefit students."
