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$14M recommitted to community center

FAIRMONT– The topic of the community center was on the Fairmont City Council agenda once again Monday night, albeit with two new voices in the conversation as council members Deb Foster and Jay Maynard joined as voting members.

Along with Maynard and Foster, Mayor Lee Baarts took the Oath of Office as it was the first council meeting of the year.

On Monday the council was tasked with deciding whether it wanted to request a local option sales tax for the city of Fairmont with the proceeds going to support the construction of a community center with an ice arena.

Over the course of the hour plus discussion, seven motions were made regarding next steps and ultimately the council recommitted funds to the YMCA portion of a community center.

In 2017, the community passed a local option sales tax to be used on local recreation amenities such as parks, trails and a possible community center, the wording of which has since been dissected and criticized. In December 2019, by majority vote, the council approved to recommit $14 million of the money raised to the construction of a community center, contingent upon the Fairmont Area Community Center Foundation (FACC) raising $6 million in private donations and FACC entering into an agreement with the YMCA for operations of the facility, both of which were achieved.

In the years since many conversations with different stakeholders have taken place and a lot has changed due to delays caused by the Covid-19 pandemic, changes to the City Council and rising project costs due to inflation.

What was once expected to be a $20 million facility is coming in at close to $44 million, which would include both a YMCA facility and ice arena. Most recently, the Community Center Advisory Board and FACC had been looking at a YMCA only facility, which still carries a higher price tag of about $24 million.

Following a joint work session with said stakeholders in early November, the council on Nov. 28, 2022 voted to put $2 million of the $14 million, raised in local option sales tax, toward a new compressor at the Martin County Arena with the rest of the funds going in reserves toward a variety of potential projects.

However, at the Dec. 12, 2022 council meeting, which saw attendance of a large number of community members in support of building a new community center facility, the council directed staff to work on requests for funding for a community center that includes an ice arena.

The funding options include a local option sales tax, state bonding request and new market tax credit, the first of which would need to be submitted to the state legislature by Jan. 31. Based off of current funds coming in on the existing local option sales tax, City Administrator Cathy Reynolds estimated that they could get about $20 million over 25 years. If approved by the legislature, it would next be taken to a referendum for voter approval.

Reynolds said based off previous conversation with council, staff recommended approval of the resolution.

Foster said she thought the resolution needed more consistency. Reynolds recommended Foster approve the motion with amending the first and seventh “whereas” clauses to read community center with an ice arena. Foster approved the motion and Maynard seconded it.

Council Member Britney Kawecki asked if the city’s owner’s representative, Tegra, had reviewed the resolution. Dick Strassburg of Tegra was present and said he believed the language Foster proposed was fine.

The motion passed 4-1 with Council Member Wayne Hasek opposed.

Next, Maynard made a motion that the motion made on Nov. 28 relating to the local option sales tax be rescinded; that an amount not to exceed $2 million of the local option sales tax be used for the design and purchase of the ice mechanical system and that the remainder of the $14 million be held for the construction of a community center, contingent only on the Fairmont Community Center Foundation and Fairmont Youth Hockey Association agreeing to raise all additional funding beyond that provided by the state and the city’s local option sales tax needed to construct, maintain and operate the facility.

Foster seconded the motion. Kawecki questioned who would then cover the $2 million needed for the community center.

Kawecki then shared that she was previously told by the hockey association that it was planning on raising $400,000 for a compressor and mechanicals and when a new design came in, the association was under the impression that several thousand more was needed on upgrades though the work would not equal the $2 million that the council recently set aside for it.

Strassburg said that it’s not known right now the condition of the slab under the ice. He said Tegra’s recommendation to the council for the past few years has been to fix the compressor and added that it should be a top priority of the council.

Reynolds clarified that the $1.5 million, which was previously recommended to go toward the ice arena, would be for the design and purchase of the mechanicals. She said an additional $1.4 million could also be needed for new floor and piping, though it wasn’t recommended to go forward with the latter.

“The $2 million will give us… a little bit of a buffer to do a little bit of that work if needed,” Reynolds said.

She added that the architecture company they’ve been working with, JLG (formally 292 Design Group) has been planning on coming down to look at the ice arena to give a better estimate.

Miller pointed out that the council shouldn’t be so focused on assigning a dollar amount because many questions still remain regarding the design work of a community center. She said clarity on a number of matters is still needed, including the inclusion of a child watch and whether fitness space is needed.

“We’re willing to put all of this money toward something that we have no final design on. I’m asking council through all these motions to remember that. It doesn’t mean that we’re not moving toward something, it’s just looking at the bigger picture… and making a decision that’s in the best interest of Fairmont,” Miller said.

Regarding the $2 million for an ice compressor, Maynard said he’s been in touch with FACC which said it doesn’t think it’s right for the council to go from asking it to raise $6 million, and then $10 million, and then taking away $2 million of the city’s previously committed funds.

“If we use the money from local option sales tax to fund it (ice compressor) then the city would need to replenish that fund somehow,” Maynard said.

Reynolds said the only funds the city has to work on the compressors at the ice arena would be coming from the local option sales tax funds and that if all $14 million is committed to the YMCA project, all work on the ice mechanicals would stop.

The council also discussed the possibility of building the community center in a phased approach, the notion of which has been controversial. Some say it’s the only way to build the facility while others say a phased approach wouldn’t work.

On Monday Kawecki said that a phased approach was the only way to keep the project moving while Miller said in a phased approach, they’ll never get the ice arena.

Following more discussion, Maynard again read his motion, seconded by Foster. The motion passed 3-2 with council members Miller and Wayne Hasek opposed.

A second motion was made by Maynard to direct staff to take a phased approach to work on the community center with the YMCA first and the ice arena when funds are available.

Foster acknowledged that over seven years, the project has always been intended to be done in a phased approach. She said while she wasn’t always in favor of that because she doesn’t want ice to be forgotten, she would support it.

The motion passed 3-2 with Miller and Hasek opposed.

Maynard made a third motion to forward a list of questions from the city administrator’s memo to the FACC and request their replies in writing and once those have been received, schedule a work session with them, the YMCA, the Fairmont Youth Hockey Association and other stakeholders to discuss.

Maynard was referring to an email sent from the FACC to Reynolds and the council late last week which detailed several steps the Foundation believe need to be taken in order for the project to move forward. One of the steps requested that Strassburg and City Finance Director, Paul Hoye, work on the project as a representative of the city.

Miller said she thought that part of FACC’s email was disturbing because it seems as if representatives of the Foundation want to supersede city staff.

“Why would we as a city council allow them to do that?” Miller asked.

Maynard said it’s his understanding that the Foundation wants to be able to directly work with Hoye on finances. However, Reynolds said that Hoye would not be the one on staff to negotiate operating agreements and maintenance agreements for the city.

“I appreciate council’s input on this, but it’s outside the scope of council’s authority,” Reynolds said.

However, Reynolds said she would let the motion move forward. The motion passed 4-1 with Hasek opposed.

A fourth motion was offered by Maynard. The motion was to direct staff to continue work on alternative funding sources for the community center to prepare necessary contact amendments for consultants to assist with this process; and to work with the Foundation, YMCA and the Fairmont Youth Hockey Association to develop terms and conditions for operations and maintenance of a community center, such terms to include that the city shall not be liable for any operation or maintenance costs for the facility.

The motion passed unanimously.

Finally, Maynard offered a fifth motion that the FACC, the Fairmont Youth Hockey Association and the YMCA be strongly requested to begin fundraising efforts for the full community center with the YMCA and an ice arena as soon as possible. The motion passed unanimously.

After the vote, Reynolds said she wanted to make sure council knew that what they just approved meant that city staff would no longer work toward designing ice mechanicals or go forward with the purchase of the ice mechanicals.

Kawecki made a sixth motion to direct staff to work with JLG and the Fairmont Youth

Hockey Association to look at the compressor and mechanicals and come up with a number for the replacement and present it to the council.

Reynolds asked what the funding source would be. The motion failed 3-2 with council members Hasek, Miller and Foster opposed.

It was suggested that JLG might come look at the project at no charge. A seventh motion was then made to direct staff to work with JLG on a contract for an estimate on the design work for the mechanicals.

The motion passed 4-1 with Foster opposed.

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