Got questions? We have answers. Check back often as we may be adding more information as the referendum vote date approaches.
Edina voters approved Phase One of the Braemar Arena investment plan in November 2022, which created a half-percent sales tax to provide funding for critical infrastructure needs at the arena, such as replacing the ice refrigeration systems, heat and boiler systems and roofing. However, this investment does not address space constraints due to high demand, safety issues with the drop-off and pick-up area or parking improvements. Now, the City is asking voters to consider Phase Two of the investment plan to expand Braemar Arena, which would allow more of Edina’s athletes and families to enjoy additional ice time closer to home.
Last year, Edina voters approved a half-percent sales tax increase to provide $39.3 million for investments in Braemar Park and Arena and Fred Richards Park. These investments include new trails, additional courts for pickleball and basketball, new playgrounds and gathering spaces, nature preservation and infrastructure updates at the arena. Now, the City is asking voters in November to consider using the same sales tax to support expanding Braemar Arena. The expansion would include an additional indoor ice rink, larger lobby area, safer drop-off zone and additional parking.
No. The sales tax is authorized to be used for no more than 19 years. The referendum for the Braemar Arena expansion would allow the city to use the sales tax to collect an additional $31.7 million before the tax expires.
No. The local sales tax rate will remain at a half-percent and will not change, even if voters approve the expansion of Braemar Arena.
In 2021, the State Legislature authorized the City to propose a half-percent sales tax to finance $39.3 million in improvements at Braemar Park and Arena and Fred Richards parks. During the 2022 session, the City asked the Legislature to allow Edina voters to consider using the same sales tax to provide an additional $31.7 million for the Braemar Arena expansion. Ultimately, lawmakers could not agree on the omnibus tax bill, which included the arena expansion request. This past spring, the City went back to the Legislature and received approval to allow local voters to decide whether to use the local option sales tax for the arena expansion.
The total amount of the investment plan for Braemar Park and Arena and Fred Richards Park is $71 million, which would be financed over a 19-year period using the half-percent sales tax approved by voters. Voters already approved the sales tax to fund $39.3 million in improvements to Braemar Park and Arena and Fred Richards Park. Now, voters will consider whether to use the same sales tax to finance the expansion of Braemar Arena for $31.7 million.
The City would reengage residents about how to move forward with an investment in Braemar Arena and determine whether they prefer changing the funding option, the amount of the investment or the elements of the project.
Edina’s vibrant quality of life continues to make it a destination to live, work and play. Investing in important community amenities like Braemar Arena will continue to attract more visitors to local businesses and support the local economy.
City leaders began gathering input from residents in 2016 regarding the needs of Fred Richards and Braemar parks. Feedback from community meetings and surveys helped shape the investment plan, and the City successfully received legislative approval in 2021 to propose a half-percent sales tax to voters to finance it.Edina voters approved the investment plan in November 2022.
The skating community brought forward a special project request to expand the Arena. That request was evaluated by City staff, reviewed by the Parks & Recreation Commission and adopted as an amendment to the master Plan by the City Council.
Now, the City is asking voters to consider using the same sales tax to support expanding Braemar Arena.
If voters approve the referendum, the City would tear down the South Rink at Braemar Arena and build two new ice rinks, resulting in four indoor rinks and one outdoor seasonal rink. The investment also includes building a larger lobby and a safe drop-off/pick-up area as well as additional parking.
Here’s a summary of how the funding will be allocated:
At Fred Richards Park: $17.7 million will be used to provide a wide range of new amenities, such as new trails, eight new pickleball courts, new basketball courts, accessible playground areas, a pavilion and lawn games area, an improved clubhouse with expanded food and beverage options, and additional parking and access via West 77th Street. Edina voters approved this investment in November 2022.
At Braemar Park: $8.1 million will be invested on a variety of additions, including a new trail system for walking, mountain biking and cross-country skiing; new pickleball courts and platform tennis courts; upgrades to the baseball complex; a playground; and improved access to Braemar Golf Course, Braemar Arena and Courtney Fields. Edina voters approved this investment in November 2022.
Braemar Arena updates: $13.5 million will address critical infrastructure repairs and upgrades, including the HVAC system, roofing, restrooms, locker rooms and rink cooling systems. Edina voters approved this investment in November 2022.
Braemar Arena expansion: If approved by voters in November 2023, the City will use sales tax to provide $31.7 million to demolish the South Rink and add two new ice rinks, build an improved drop-off/pick-up area, add parking and expand the lobby.
The Edina City Council determined that the cost of the projects should be shared among residents and nonresidents who buy goods and services in the city rather than use a property tax increase, which would be paid solely by those who own commercial and residential property in the city. Approximately 54 percent of the sales tax increase would be paid by nonresidents of Edina, according to an analysis by the University of Minnesota.
The local half-percent sales tax would be applied the same as the state sales tax. There are some exemptions to the sales tax, including groceries, clothing, prescription drugs and baby products. For more information, view this list of taxable items and this list of most nontaxable items from the Minnesota Department of Revenue.
The half-percent sales tax went into effect in Edina on April 1, 2023, and will last no longer than 19 years. The average cost per resident of the sales tax will be about $3.03 per month, or $36.35 per year, according to an analysis by the University of Minnesota.
No. The sales tax expires in 19 years. If the bonds for the projects are paid off before then, the sales tax expires earlier. The only way the tax could be extended or used for other projects would be if the Legislature authorized the change and Edina voters approved.
The sales tax went into effect on April 1, 2023, and has generated approximately $1 million as of mid-July. The City has hired Confluence, a professional landscape architecture and planning firm, for the detailed design of Fred Richards Park. Further, the City approved wetland banking as part of natural habitat restoration at Fred Richards. The City also hired WSB and Associates, a landscape architecture and planning firm, for the detailed design of the Courtney Field site improvements and hired SRF Consulting, Trails Source LLC and RES for the trails and natural resources portions of the Braemar Park improvements.
Here is the language voters will see on their ballot in November:
On November 8, 2022, Edina voters approved a 0.5% local sales tax to fund $21.6 million in improvements at Braemar Park and Arena and $17.7 million for improvements at Fred Richards Park.
CITY QUESTION 1: AMENDMENT TO THE VOTER-APPROVED SPENDING PLAN FOR EDINA LOCAL SALES TAX.
Shall the City of Edina be authorized to amend the spending plan for Braemar Park and Arena from $21.6 million to a total of $53.3 million for the expansion and additional improvements of Braemar Arena and associated bonding and administrative costs?
If this question is approved by a majority of voters, the rate of the sales tax approved by Edina voters will remain unchanged at 0.5% and will remain in place for a maximum of 19 years or until enough sales tax revenue has been collected to pay for the costs of the project. Approval of this question will not impact funding from the sales tax for Fred Richards Park that was approved by voters in November 2022.
The City originally budgeted $31.7 million for the expansion of Braemar Arena and requested that amount from lawmakers during the spring of 2022. During the 2022 legislative session, lawmakers reduced the amount to $25.3 million, which ultimately stalled as part of the omnibus tax bill. This past spring, when the City returned to the Legislature, lawmakers granted the City its original request of $31.7 million.
Schematic design and detailed design work would begin following the approval of the referendum.
The proposed investments at Braemar Arena are expected to reduce operational costs. As part of the proposal review, Ballard*King an independent consultant hired by the city completed an analysis of the revenue and operational costs of an additional indoor sheet of ice. That analysis was part of the master plan amendments and indicated a fourth sheet would contribute financially positive to operational costs. If the new investments generate a rise in operational costs above new revenues, proceeds from Edina Liquor could be used to cover them. As always, the City is committed to managing expenses as efficiently as possible.
It is unclear whether there is a viable funding alternative if the City can’t use the sales tax to fund the Braemar Arena expansion. The City would explore other options and reengage residents about their priorities for the arena.
The City is in the process of selecting a contractor to manage improvements to the arena. The outcome of the upcoming November referendum will determine the scope of the construction project.
The sales tax option provides an important opportunity to distribute the cost more fairly among residents and nonresidents, unlike a property tax increase, which would solely affect those who own commercial and residential property in Edina. In addition, completing renovations and the expansion of the arena simultaneously would create greater efficiency and maximize taxpayer dollars. It is unclear whether there is a viable funding alternative if the City can’t use the sales tax to fund the Braemar Arena expansion. If the referendum does not pass, the City will explore other options and reengage residents about their priorities for the arena.
Residents are encouraged to explore this website for more information. If you have questions or would like to request a presentation for a group on the Braemar Arena expansion, please connect with us here.