Rochester sales tax extension draws small crowd for first chamber informational event

Sep. 7—ROCHESTER — Peggy Cunderla is skeptical when it comes to being asked to

extend Rochester's half-cent sales tax.

She said her concern dates back to the last renewal in 2012, when a portion of the sales tax was used to build 125 Live, which replaced the former Rochester Senior Center.

"Frankly, I wasn't happy about that," she said, pointing out she never joined 125 Live after being a senior center member.

Cunderla was among approximately 20 Rochester residents Thursday attending presentation about the upcoming vote to extend the city's sales tax to generate $205 million for support of four projects.

She said only one of the projects has her concerned — a

proposed $65 million investment to create a new sports and recreation complex.

The remaining projects — $40 million for flood-control and water-quality projects, $50 million for street upkeep and $50 million for housing and economic development — have her support.

"I lived through the flood of 1952 when my home was flooded," she said, adding she saw others face similar outcomes in 1963 and 1978 floods.

As a result, she said she'd be happy to support adding flood protections, as well as finding ways to improve streets and make sure people had homes.

The sports complex, however, has her thinking about opposing the sales tax extension, since she's not convinced it's needed and suspects it will lead to added future expenses.

Aaron Luckstein, deputy director of Rochester Public Works, told Cunderla he appreciated her input after speaking with her following Thursday's forum hosted by the Rochester Area Chamber of Commerce at Rochester Community and Technical College.

He sought to reconfirm some of the facts he shared during the forum, including that much of the planned flood control and street work would need to be done with or without the sales tax. That could mean raising property taxes to cover costs, increasing stormwater fees or scaling back projects over time.

Another Rochester resident who attended the forum, Bruce Buller, said he sees value in all the proposed projects, from maintaining current infrastructure to building facilities for the city's future.

"The city is doing well, but it needs to have continued upkeep," he said, adding needed changes will take longer if the current sales tax isn't extended.

Ryan Parsons, president of the Rochester Chamber, said the need for continued investment is one of the reasons the local organization is supporting the tax extension and hosting information sessions.

"It comes down to the idea that this is a renewal," he said of the tax that generates approximately $15 million a year. "It's not a new tax being introduced."

Rochester has had a local sales tax since 1982, when it collected a full cent on every dollar. The tax was cut in half in 1992 and remains a half-cent on every dollar, or 50 cents on a taxable $100 purchase.

Parsons said the

chamber's support

also stems from the fact that the sales tax is collected from visitors, as well as residents, meaning those who use the city's infrastructure but don't pay property tax are still contributing.

Rochester officials report an estimated 43% of sales tax revenue comes from nonresidents.

While the crowd was small Thursday, Parsons said the interest is gearing up and the Chamber will host a second presentation at 3 p.m. Sept. 19 at Saint Mary's University — Rochester Campus, 2900 19th St. NW., with the potential for a third in October.

"I think the information has to start somewhere," he said.

Rochester City Council member Shaun Palmer said he sees value in extending the proposed tax for all the selected projects, which is why he supported placing a single question on the Nov. 7 ballot.

"It just makes it less confusing for the voters," he said.

Palmer said he believes residents have benefited from the investments made through the sales tax in the past four decades and will continue to reap rewards if the tax is extended.

"I think it's very telling when looking at the groups that signed up for the 'vote yes' campaign," he said of a recently announced partnership involving Rochester Area Builders, Rochester Area Chamber of Commerce, Rochester Area Economic Development Inc., Rochester Area Foundation and Rochester Sports Foundation.