Stillwater explores ways to pay for parks, other projects

Stillwater officials say they need $12 million to develop new parks along the St. Croix River.

Work at Bridgeview Park, located south of downtown, comes with a price tag of more $8.6 million. It includes $3 million for a transient boat dock and $1.4 million for a boat launch.

North of downtown, city officials want to spend $3.4 million to develop Lumberjack Landing. Among the items on their wish list: renovation of the former Aiple residence; a spur trail to Brown’s Creek State Trail; a canoe launch, dock and trail slide, and a picnic shelter.

The parks will be a regional draw, city officials say, and they think state money should be used to pay for them. They’re asking the Legislature for $12 million in bonding for the two park projects and $500,000 to renovate the gazebo at Lowell Park in downtown Stillwater.

“People will be coming from all over to enjoy those parks,” said City Council member Mike Polehna. “It’s not just the local residents. They’re already a big regional draw, but it’s getting to be almost a national draw. That’s why we need to go out for bonding.”

Tourists come to Stillwater from around the upper Midwest, including St. Louis, Chicago, Des Moines and Omaha, said Polehna, who worked for Washington County Parks for 37 years.

“We’re lucky,” he said. “The St. Croix River is a national draw — it’s a National Scenic Riverway.”

City officials, however, are already working on other options if their bid for bonding money fails. The Stillwater City Council on Tuesday will discuss a possible 20-year half-percent sales tax on general purchases to pay for the park projects.

Based on past sales tax statistics, Stillwater officials estimate the city could generate $1.1 million annually, said City Administrator Joe Kohlmann.

Kohlmann said the plans for a possible sales tax are still very much at the discussion stage and noted there are at least six steps involved in implementing a local sales tax, including approval from the Legislature and a referendum of the voters.

“Just because we send a request to the Legislature that doesn’t commit the city to moving forward with it,” he said.

Cities seeking local sales tax authority must file requests with legislators on the House and Senate taxes committees by Jan. 31. The earliest any possible referendum would be on the ballot in Stillwater would be November 2024, Kohlmann said. If approved, it would not be imposed until sometime in 2025, he said.

“We have such a large number of tourists coming to Stillwater,” Kohlmann said. “We expect that a large percentage of the money generated by the local option sales tax would come from people visiting the community.”

Stillwater City Council member Larry Odebrecht said he hopes residents will weigh in on whether they support a local option sales tax.

“There’s a big influx of people who are coming downtown, using our parks, enjoying our riverfront — all are welcome, even Packers fans,” he said. “But we need to maintain those parks. It really comes down to what we hear from folks. I think it’s a good project, and I think it’s money well spent, but, ultimately, the citizens of Stillwater have to decide what they want to do with it. A vote for it on Tuesday is a vote to open the door.”

Forty-nine other municipalities in Minnesota currently levy local sales taxes, said Gary Carlson, government relations director for the League of Minnesota Cities. Twelve cities have had local sales taxes approved, but have not yet implemented them, he said.

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Stillwater also wants $20 million in bonding for an expansion of the St. Croix Valley Recreation Center and $3.8 million for replacement of downtown street lighting.

The recreation center expansion plan includes an eight-sheet curling center on three acres of city-owned land west of the center at 1675 Market Dr. The project also includes a plan to expand parking, Polehna said.

“That would be another huge regional draw,” Polehna said. “There are curling centers in Chaska and Blaine, but there’s nothing out east or and there’s nothing in western Wisconsin.”

Members of the St. Croix Curling Center, which operates out of the St. Mary’s Point Ice Arena on Friday nights and Sundays in the winter, will be lobbying for the center’s expansion, said James Honsvall, president. Members of the St. Croix Curling Center would participate in the operation of the new curling center, he said.

“This is our fifth successful season, and the interest in the St. Croix Valley has exceeded our expectations,” Honsvall said. “Having a dedicated curling center in Stillwater would allow even more east-metro residents to participate in this growing and exciting sport.”

The recreation center expansion and street lighting work would not be included in the city’s sales tax request, Kohlmann said. “We’re really hoping to get bonding for those due to the regional significance they have to the state of Minnesota,” he said.

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