FAIRMONT– On Monday the Fairmont City Council began to have a preliminary conversation on what to do with the Local Option Sales Tax (LOST) money that has been collected since 2017 now that the Fairmont Community Center Foundation (FACC) has said that it will not continue pursing the project. The council had previously designated the funds for that purpose and about $7.5 million has been collected so far.

In the absence of a city administrator or interim city administrator, City Clerk Betsy Steuber gave the council some options that Jeff O’Neill– the last interim city administrator who ended his role with the city on Nov. 23– had provided.

“It has been recommended… to re-engage the community before selecting specific projects. He lists four possible options,” Steuber said.

These options included to establish a city council-appointed task force, rely on community-led collaboration, create a city council and staff only task force or do something different.

Council Member Britney Kawecki acknowledged that the funds cannot be used for repairs for the Fairmont Opera House, which she noted some people in the community have been asking for.

In the control sheet provided to council, Taft Attorney Adam Niblick is quoted as saying that the LOST funds may only be used to “finance the capital and administrative costs of constructing and funding recreational amenities, trails and a community center” and must fall within the city’s statutory authority to operate the programs of public recreation pursuant to Minn. Stat. 471.15 to 471.19.

If the city does not own, lease, use or otherwise operate the Opera House, then spending LOST funds on repairs to the Opera House would fall outside the city’s authority and, therefore, would not be permitted expenditures of LOST funds.

“I definitely think that the council needs to be included in on it. I think definitely the citizens need to be involved as well,” Kawecki said. “I think a work session is our number one priority.”

Mayor Lee Baarts said the money has been out there for eight to 10 years and he didn’t think their “pockets were in a hurry to spend it.” He acknowledged that identifying a purpose is important, but that he didn’t think it needed to be jumped into.

Council Member Jay Maynard said, “I do believe that the citizens made it abundantly clear that they’re not interested in having annual tax funds from the city go into operation and maintenance of a community center.”

He further said he does think that the council needs to take the lead on what’s next and what key organizations and individuals who have the best interest of the city might need to be involved.

Council Member James Kotewa agreed with Kawecki that a work session needs to be had In order to take a strong look at what’s going to benefit the city.

Baarts asked Public Works Director Matthew York if there was a list of what the LOST funds can be used for.

“I think if we decide that a workshop is where we want go, I think having a complete list and working with Adam… and make sure we have a list we can bring to the council. I think that staff can put that list together,” York said.

Kotewa made a motion to have staff and Taft law firm complete a list of projects that can be funded and have a work session no later than Feb. 1.

Council Member Randy Lubenow said, “We need to remember a few things. This was a project for a community center and nobody said a community center was off the table. What was said is that the FACC group is not going to facilitate that anymore.”

He also said there was hockey involvement and that the citizens of Fairmont had voted in the sales tax so there are three groups who have led it all thus far.

“I hope that Taft is able to put their name on things and give us a list. If they can’t, I don’t know who can, if we have to go to legislators or what the avenue is,” Lubenow said.

The motion made by Kotewa passed.

In other business:

— After some discussion, the council decided to keep Maple Street as it is, which is a one-way street as the council had approved of the switch last summer.

— The council approved appointing Councilors Kawecki and Lubenow to a RFP (Request for Proposal) review team for the downtown beautification project.

— The council approved a motion to authorize staff to complete and submit an application for the Area Transportation Partnership-7 Surface Transportation Program for Small Urban 2030 funding for the Prairie Avenue street reconstruction project.

— The council approved a motion to direct staff and the city attorney to draft an ordinance to allow the Minnesota Department of Revenue to collect lodging tax for the city of Fairmont. Vista Fairmont will pay fifty percent of the initial cost and the city of Fairmont will pay a 1 percent tax to the department of Revenue for this service.

— The council approved a resolution to submit, adopt and implement the Blue Earth River Watershed Comprehensive Watershed Management Plan.