The Blaine City Council voted 4-3 to advance a $7 million parking structure for the 105th development, approving a funding plan that relies on the Economic Development Authority levy. The split vote centered on funding, as money for the structure would come from the Economic Development Authority levy. In the past, the council has operated under a goal of avoiding taxpayer impact for the development.
The 4-3 decision centers on financing, as the project would be funded through the Economic Development Authority levy. Council members have previously pledged to avoid taxpayer impact related to the development.
Voting in favor were Mayor Tim Sanders and Council Members Jess Robertson, Chris Massoglia and Terra Fleming. Opposed were Council Members Tom Newland, Chris Ford and Leslie Larson.
The funding plan offsets the $7 million by reducing the city’s general levy, a move intended to avoid an overall increase in spending.
City Manager Erik Thorvig said two February workshops focused on parking needs for the 105th development, a forthcoming entertainment district near the National Sports Center that includes a proposed event stadium, restaurants and a new Scheels location.
The proposed west-side structure would provide parking for the stadium, a planned field house and surrounding development, as well as general district and area parking, Thorvig said.
At an earlier workshop, the structure carried a $15 million estimate and included slightly more than 620 stalls. The council discussed potential financing options at that time. Thorvig said the term sheet outlines general financing terms, with further negotiations to occur between the developer and city staff.
Thorvig said the council will receive an update at its March 16 workshop.
Construction of the stadium is anticipated to begin in early 2026, Thorvig said. Given the scale of the investment, the developer sought a commitment from the city that parking infrastructure would be constructed, prompting the term sheet.
“It provides the developer guidance that the City Council would be willing to consider these formal actions related to the facility at your April 6 meeting,” Thorvig said.
He emphasized the term sheet is nonbinding but provides greater assurance than workshop discussions.
Newland said the council learned of the cost at recent workshops and had already made financial commitments through previously issued bonds.
“I have probably more questions on moving forward now than I did then,” Newland said. “Coming back for another request for $15 million for a ramp is something that I have a difficult time even comprehending.”
Newland said when the Scheels plan came forward last year, the council was asked to take “one more bite out of the apple.” The council agreed at that time.
To him, this represents a second bite.
“I can’t do that,” Newland said.
He said the project has continued to evolve and that he could not support further changes in good conscience.
Newland also said the city had proceeded on the premise that property taxes would not be impacted.
“That is fundamentally against anything that I have agreed to and will accept with this project,” Newland said.
Newland said he would support a $7 million figure if it were funded through an alternative revenue stream rather than the levy, but noted that Blaine has not identified such a source.
“Whether it’s from the proceeds of a municipal marijuana operation, or franchise fees or a combination thereof, I can’t do this by supporting an increase to the levy,” Newland said.
Newland moved to amend the request to $7 million funded through an alternative revenue source.
Robertson said some elements of the plan shifted due to market conditions and the addition of Scheels. She agreed with many of Newland’s concerns but also recognized longstanding parking issues.
“The two things that we are providing for infrastructure are for public use,” Robertson said. “It’s not only supporting the development itself but supporting the Sports Center, which is lacking parking and needs assistance.”
Robertson proposed using the EDA levy but making the funding net zero by reducing the general levy by the same amount so the city would not increase overall spending.
“This is a big thing,” Robertson said. “This is something that’s been dialogued for so many years, and every time it comes before us it’s another tiny piece or another change.”
She added the project represents approximately 1,500 jobs and nearly $1 billion in private investment, saying her comfort level with funding had been “pushed to its max.”
Ford said he supported the project, which is located in his ward, but shared concerns about continued funding requests.
“I think it’s going to be a wonderful addition to the city,” Ford said.
Ford said he has long asked when vertical construction would begin and questioned whether the developer could provide the same level of commitment it seeks from the city.
“I think there is some middle ground here somewhere with this,” Ford said. “But I also feel like, why can’t we just go vertical at the same time?”
Ford said the city has already committed significant public funds and trust and is now considering a property tax levy to support the project.
Massoglia said he did not see how the timing of vertical construction related to the term sheet and disagreed with the “one more bite” characterization.
“When Scheels came to us, we knew parking was going to be a huge issue,” Massoglia said. “We were trying to put a Scheels with thousands of cars next to an event stadium and the Sports Center.”
He said parking logistics have always been part of the conversation and noted the structure’s location shifted east, opening additional retail opportunities.
“Our goal has been to have this entire project not have any type of impact on the levy or the taxpayer,” Massoglia said.
He supported Robertson’s proposal to offset the EDA levy with reductions elsewhere.
“The city has participated in $180 million through tax increment financing and tax abatement bonds in partnership with the county and the school district,” Massoglia said. “So many partners have come together to create this public-private partnership that has not been at the taxpayer’s expense.”
Calling the development generational, Massoglia said the city must ensure adequate parking.
Sanders said vertical construction could begin this spring, weather permitting.
“It looks like we’re moving in the right direction,” Sanders said. “So hopefully this month, if not certainly this spring, we’ll see vertical construction and a very aggressive construction timeline.”
Sanders said the taxpayer should be a last resort.
“We have to plan for the worst-case scenario, especially when we’re talking about lenders for the developer and those sorts of things,” Sanders said. “But we are still working tirelessly to make sure that our Blaine residents are not impacted financially.”