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City commits to community center

FAIRMONT – A trio of affirmative votes from the Fairmont City Council on Monday was all it took to propel the proposed community center a giant leap closer to reality, but the approval of a $14 million commitment from the city did contain a pair of caveats. Before any taxpayer money can be used to build the facility, the Community Center Committee first must raise an additional $6 million in pledges for the project, and the YMCA must enter into a lease agreement with the city to operate the center.

Prior to the council’s vote, several proponents of the recreational center spoke of the years of research, meetings and conversations that led to the building’s initial $24 million design which was reduced to the current $19.9 million layout.

Brandon Edmunson, co-chair of the committee, said the final design was complete and was one that was “responsible” and would be “a good use of public and private money.”

The floor plan of the two-story building, proposed to be constructed west of the Mayo Clinic Health System campus, contains a child watch area, concession booth, a three-court field house, community room, lockers, a meeting room and pool on the first floor with a fitness studio, cardio room and weight room on the second floor.

Dennis Dieser, executive director of the Albert Lea Family Y, has been met with numerous Fairmont groups and heard concerns about the potential financial impact on taxpayers.

“I know there’s a big concern on income operating losses. There were a lot of questions asked on that. Some of those are going to be unknown until we go forward,” Dieser said. “We have been asked to come into the community and help administer and run programs and activities so we’re taking a risk and a chance as well.”

He said the only way for the center to be successful is for the city and the YMCA to work hand-in-hand to make it a viable fit for everybody, with the city paying for construction and the Y managing the facility and programs.

“I can assure that we will not come back to the city and say you need to backstop a loss. That’s not how it works. We’ll develop a plan that’s fair for everybody.” Dieser said.

He also requested $50,000 for a 2020 budget for a temporary office and part-time employees to start meeting with citizens to develop programs to be in place if or when the community center is finished. He reminded the council that the YMCA is a not-for-profit organization that seeks support from foundations so it can offer activities on sliding financial scale.

“No one is ever denied access to to membership or programs due to inability to pay. That’s not on you. That’s on the YMCA to make that happen,” he said.

Joe Brown, superintendent of Fairmont Area Schools, told of the potential for experiential knowledge that the Y could offer for all students in the area through its extensive programming.

“We cannot individually do it ourselves. We need to work together,” he said.

Matt Huset, 3M-Fairmont plant manager, supported the community center as competitive advantage for local businesses to attract talented employees. While a job is important, many potential workers ask another question.

“What is life like outside of work?” he said.

Councilman Randy Lubenow made a motion to approve the $14 million commitment from the city, including the two contingencies, and Ruth Cyphers seconded the motion.

“I’m confident that you brought this forward with a budget that is doable,” Councilman Tom Hawkins told the Community Center Committee, and he encouraged them to obtain an alternate bid for a four-court field house in the event additional funds were raised.

“I’m very confident that the majority of the people in this community want this, that they’ve wanted it for a long time,” he said. “The indication we got through the vote for the sales tax just helped solidify that for me.”

Hawkins was referring to the local option sales tax question that was on the 2016 ballot. By a vote of 61-38 percent, voters approved a half-cent sales tax with funds earmarked for local recreation amenities such as parks and trails and/or a possible community center. In August of 2018, the council awarded proceeds from the tax, estimated to be about $9 million during the tax’s duration, to the community center project.

“This is the most divisive thing that we’ve had in God knows how long,” Councilman Bruce Peters said. “It has divided this community in half.”

He opined that he wished the 2016 ballot had mentioned only the community center as a recipient for the funds “so this thing could stand on its own two legs.” He has gotten requests from citizens to re-vote on the issue with a more specific statement about the money’s destination.

“The divisiveness is just problematic. I’m also concerned that the committee has not raised a dime or even got a commitment for any monies,” Peters said. “They say we (city) haven’t committed. We have committed $9 million already. That’s with no property increase. That’s just the sales tax money that we can borrow against to fund this thing. If we approve this, yes, we certainly are raising property taxes. We are raising them quite significantly.”

“If the council has to raise an additional $5 million to fund the $20 million project, it would be about a 6.25 percent levy increase,” said Paul Hoye, city finance director.

Hawkins disputed the idea that property taxes would be increased, saying former City Administrator Mike Humpal and Hoye had “made a commitment to find money in the budget in the future without raising property taxes.”

“They said that at the budget meeting this summer,” he said. “We’re not going to bond and borrow money and raise taxes for the community center. That’s what’s they said.”

But city staff refuted that claim.

Hoye said the discussion involved restructuring the way the city pays for street improvements. By implementing a franchise fee through utilities, the current method of bonding or borrowing the money could eventually be phased out.

“As those bonds are being paid off, that could free up some possible property tax money that could go to other options, anything that the council decided to use that money for,” Hoye said.

“I don’t believe any commitments to not raising property taxes were made in those discussions,” said Troy Nemmers, acting city administrator. “There is opportunity for additional funding sources that we may be able to redirect towards a community center, but to make a statement to committing to no property tax increase, I don’t believe that is correct. I don’t believe anyone has said that.”

Peters noted that paying off the city’s existing bonds will take years before any of that money is freed up so property taxes definitely would increase.

“I’m not against this (center), but personally I want to see some financial commitment from the community, other than the taxpayers who have no say in this prior to throwing out another $5 million,” Peters said.

Councilman Wayne Hasek reminded the council of the email they all received from the owner of a local fitness center who said the community center would probably put him out of business.

“Why would we invest in something that would put somebody’s blood, sweat and tears out of business? It’s beyond me,” he said, equating it to the city bringing in a car dealership to compete against those already in town. “It’s wrong.”

Peters supported the Y coming in, getting the community on board.

“I’m not against this in principle. I’m against the $5 million at taxpayer expense,” he said.

Hawkins brought up the proposed new public works building, with a $10 million price tag, saying “it will do nothing for this community.” He said he supported and voted for every trail proposal, including spending $1 million to build a trail from Margaret Street to McDonald’s.

“But nobody is up in arms about that,” he said. “Yet we have something that virtually no city our size is without. Twenty-five cities smaller than Fairmont have YMCAs or community centers. It’s something that should have been done in this town 30 years ago.”

Lubenow read a prepared statement acknowledging that no all citizens of Fairmont are in favor of the community center but people should take “a leap of faith.”

“Wouldn’t it be great to see three generations of a family playing together at a community center?” he said, calling the project “a step in the right direction.”

Cyphers said changing times have found people expecting different amenities from their community, amenities like a recreation center.

“It brings a sense of community, and we need that in Fairmont now,” she said. “I love what was said about three generations playing together and the idea that our underprivileged are served by a center.”

Hawkins, Lubenow and Cyphers all voted to support the $14 million commitment from the city, with Peters and Hasek voting no.

Peters then offered a motion to authorize $50,000 from the sales tax funds to pay for the 2020 budget expenses of having the Y set up initial programming in Fairmont, and Cyphers seconded the motion. It passed 4-1, with Hasek dissenting.

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