How to Pay For Rochester City Projects Costing $75 Million?
Rochester, MN (KROC-AAM News) - The Rochester City Council is scheduled to vote Monday on financing plans for three major city projects that carry an overall price tag of around $75 million
The list includes a new Parks Maintenance Facility at the site of the current Rochester Public Works and Transit Operations Center. The State Legislature earlier authorized approximately $14 million in state bonding money for the project, which is expected to have an overall price tag of about $40 million. The remainder of the funding would be covered by a $17 million bond issue by the city, nearly $6.5 million from the 2013 city sales tax extension, as well as funding from the city's Future Acquisition Account, and federal tax credits.
The City Council is also being asked to use $3.8 million from the city sales tax fund to help cover the cost of constructing a new parking deck adjacent to the Rochester Recreation Center along North Broadway. The city was previously awarded a $7.4 million federal grant and $800,000 in state funding for the $12 million project. The 200-space parking deck would serve as a Park and Ride facility for commuters working in downtown Rochester, and would also provide additional parking for larger events at the Rec Center and 125 Live on evenings and weekends.
The third project is the second phase of the Downtown Building Energy Transition, which involves replacing the heating and cooling systems that previously utilized steam generated by Olmsted County's Waste-to-Energy plant with a new Geothermal system that was installed next to City Hall during the first project's first phase. The second phase has a budget of nearly $23 million and will expand the new heating and cooling system to the Public Library and Mayo Civic Center. It would also have the potential to serve future private developments in areas south of the government center. The financing plan utilizes another $11.4 million in city-issued bonds, $3.2 million in Destination Medical Center funding, a $2 million federal grant, and more than $6 million in federal tax credits.
The sales tax funds that are being proposed for financing portions of two of the projects were authorized by voters for use on downtown Rochester amenities. City staff contends the Park Maintenance Facility will benefit the downtown by freeing up property for future public or private development along the Zumbro River next to Mayo Field. The financing proposal also states the planned parking facility next to the Rec Center will help with the implementation of the city's plans for public transit in the downtown.
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Gallery Credit: Photos supplied by Rochester Police Departmentt
