Frequently Asked Questions

Questions about the plan

  • In the 25 years since it first opened, the Maple Grove Community Center has been bringing people together and contributing to the strong quality of life our residents enjoy. Approximately 650,000 local and regional guests visit the Community Center every year to participate in activities and programs, find support and services, and of course, have fun.

    Over time, facilities require reinvestment to make sure they can keep operating as expected. Maple Grove’s population has increased 28% since the Community Center opened in 1997, and it requires improvements and more space to continue serving our growing and diversifying population. According to a scientific community survey, 90% of Maple Grove residents believe it is valuable for them to have a Community Center.

  • The investment plan includes new swimming pools, more space for senior programs, expanded event and banquet space, space for the arts, a walking track a third sheet of ice, and infrastructure investments, including system upgrades and roof repairs.

  • Maple Grove residents played a major role in shaping this investment plan. Residents were asked for their input on the Community Center during the summer of 2017 and as part of the community engagement process for the 2018 park system plan update. They continued to share their views through events, surveys, and other activities. Based on this feedback, city staff developed a long-term plan to expand the Community Center and the services it supports.

  • Yes, the Council explored other ways to pay for the Community Center project, including property taxes, and considered whether to spread out the improvements in phases over several years. In the end, the council determined that moving forward with a more comprehensive improvement plan would be the best way to provide the services residents are seeking for the future and decided to present that option to voters.

  • The city is moving forward with design work in 2023. Construction will follow in 2024-25 with estimated completion in the summer of 2026. The city will also continue to pursue state bonding funds during the 2024 Legislative Session. State lawmakers approved the city’s sales tax proposal to invest in the community center in 2021, citing its benefits to the region.

  • The half-cent sales tax in Maple Grove went info effect on April 1, 2023. In December 2022, the City Council passed an ordinance to impose a local option sales tax in Maple Grove. This action was followed by the city providing notice to the Minnesota Department of Revenue, the agency that announces all local sales tax starts, changes, or ends. Notice of the April 1, 2023, effective date for the sales tax is also posted on the City of Maple Grove website.

  • Information and forms for calculating and paying the use tax are available on the sales and use tax page of the Minnesota Department of Revenue website.

  • Maple Grove is one of about a dozen Minnesota cities that secured voter approval in November 2022 to use a local sales tax to support investments in facilities and attractions that provide a regional benefit.

    Like Maple Grove, several counties and cities across Minnesota approved a local option sales tax, including Edina (parks and recreation investments), Grand Rapids (civic center investments) Moorhead (community center and library) and Litchfield (community wellness and recreation center).

    Over the past few years, Excelsior and West St. Paul have both passed a sales tax to support park facilities and road projects, respectively. In Greater Minnesota, more than 40 cities have received legislative permission to enact a sales tax to help fund local investments that support the quality of life for their residents.

  • By law, any public project with a value greater than $175,000 must be bid and awarded to the lowest bidder. The city will use a process that informs and encourages local bidders, while still respecting the state law. If local contractors are the low bidders, the city will use local contractors.

Questions about the need

  • Through surveys, meetings and other outreach efforts, residents identified a variety of needs at the Community Center, including additional pool facilities, more ice time, expanded event and banquet space, and more space for senior programs and the arts. Other needs at the center include replacing aging infrastructure and mechanical systems, improving energy efficiency (which saves money), increasing sustainability, and installing more effective temperature controls.

  • Ice time is in very high demand at the Maple Grove Community Center. The Osseo Maple Grove Hockey Association (OMGHA) is the second largest youth hockey association in the country, with about 1,150 skaters and 68 teams. In addition, the Maple Grove Skating School is the state’s largest skating school and was the 27th largest in the country as of 2023, with over 1,500 participants from 17 communities. Similar communities with three sheets of ice in one location include Eden Prairie, Edina, Plymouth, Bloomington and Blaine.

Questions about the process

  • A variety of local groups shared their views and ideas, including families, civic groups, businesses and city staff. The city conducted meetings with various community groups who use the center, including senior residents, arts groups, teenagers, athletic associations, and the Maple Grove Community Organization. Feedback from residents continues to be critical as the city moves forward with planning.

  • The city hasn’t acquired property for this project. The city has been in negotiations with Life Time Fitness regarding the future of its facility, but no agreement has been reached. While the city remains open to future discussions, the city is moving forward with the investment plan without the Life Time facility that adjoins the Community Center.

  • Some activities and programs will be temporarily relocated, while others will continue at the Community Center during construction. The city will work to limit disruptions as much as possible for all Community Center users.

  • The city anticipates that the Maple Grove Community Center building and services will remain open during construction. The project is expected to be completed in phases with the first phase being the third sheet of ice.

    City leaders will work to ensure Community Center services remain available throughout construction. However, as an example, it is possible when the Community Center pool is closed, the city may direct people to the New Hope pool or partner with Brooklyn Park so members can lap swim there under their Maple Grove membership.

Questions about the cost

  • The total cost of the project is $116 million funded over a 20-year period. The current funding plan is structured in three parts:

    • $90 million in revenue generated from the half-cent sales tax, which was approved by voters in November 2022.

    • State bonding funds, if approved by the Minnesota Legislature. In 2023, $6 million was secured, and the city will pursue 2024 state bonding funds to fill the budgetary gap in construction funding.

    • $8 million from sponsorships and donations, including contributions from athletic associations.

  • Unlike a property tax option, the half-cent sales tax ensures that both residents and nonresidents share in the cost to reinvest in it – not solely Maple Grove residents who own residential or commercial property.

    About 55% of the sales tax for the Community Center – or $49.5 million of the cost – will be paid by non-residents, according to estimates by the University of Minnesota Extension Center. For residents of Maple Grove, the estimated cost of the half-cent sales tax is about $3.20 per month.

  • The local half-percent sales tax is applied the same way as the state sales tax. There are exemptions to the sales tax, including the purchase of groceries, clothing, prescription and over-the-counter drugs, feminine hygiene products 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-cent sales tax amounts to a ½ cent for every $1 spent. For example, a $10 purchase costs an additional 5 cents. The average cost of the half-cent sales tax per Maple Grove resident is approximately $38.40 per year, according to research by the University of Minnesota. That’s about $3.20 per month.

    Here’s another way to think about the impact of the sales tax. Ehlers, the City of Maple Grove's financial consultant, analyzed the impact of the sales tax based on household income. The analysis determined that the sales tax will cost a total of $78 per year (or about $6.50 a month) for households with a median income of $113,793.

  • Dozens of cities and counties have adopted local sales taxes that are collected on top of the state's 6.875% sales tax rate to pay for major public projects. The local sales taxes are most often from 0.5 to 1% (or ½ cent to 1 cent for every $1 spent).

    A local sales tax is used to help pay for a variety of major public projects that benefit the community, including new community centers, jails, libraries, and other public amenities. In recent years, several metro area cities have approved a local sales tax, including Saint Peter (new fire station), Elk River (parks and recreation improvements), Rogers (trail and pedestrian projects and aquatics), West St. Paul (road projects) and International Falls (transportation and infrastructure).

    Like Maple Grove, several counties and cities across Minnesota approved a local option sales tax, including Edina (parks and recreation investments), Grand Rapids (civic center investments) Moorhead (community center and library) and Litchfield (community wellness and recreation center).

  • The local-option sales tax will be the primary financial source for the project. Other financial sources include state bonding funds, if approved by the State Legislature, and a mixture of federal grants, sponsorships, and contributions from athletic associations.

  • A half-cent sales tax adds a half a penny for a every $1 spent. In other words, an additional 5 cents is added to a $10 purchase or 50 cents for a $100 purchase.

  • The sales tax is not permanent. The half-cent sales tax will pay bond payments to finance the city’s investments over 20 years and expire when the bonds for the project have been retired. This will allow current residents to take advantage of the Community Center improvements while the bonds are being repaid.

  • The University of Minnesota analyzed the economic effects of a local sales tax increase in other Minnesota cities and found little evidence that overall sales growth was impacted.

  • At the beginning of 2022, city staff discussed the potential of a local option sales tax impacts on businesses with the Minnesota Department of Revenue. Through these discussions, it was determined that the impact of the tax would likely be limited for many of the largest employers and manufacturers in the city. Sales tax is primarily collected via products that are sold to the end user. If a company is one who wholesales to another company, it is likely that a Certificate of Exemption (ST3) would be on file with the company which would not require payment of the tax. As an example, if a manufacturer was to wholesale a product to retailer, the business to business will not be subject to a sales tax assuming there is an ST3 certificate. The sales tax will be collected when the retailer sells the product to the public/end users. If an ST3 is not provided to the vendor claiming an exemption, the product or service is taxable.

    Additionally, many products within the state may not be subject to a sales tax. Examples of such products include industrial production, which is material used or consumed to produce a product; capital equipment; clothing; and utilities used in industrial production.

  • The city anticipates there will be an increase in operating costs for the larger, more complex facility when the project is completed. The current subsidy to the Community Center operation is $900,000, which would increase by $1.2 million, for a total subsidy of $2.1 million which is paid by the tax levy. The city will work to manage the increase through effective cost management, greater energy efficiencies and exploring additional revenue opportunities.

Local residents are encouraged to review this website for detailed information. To share comments and ask questions, visit the Connect page, email growingtogether@maplegrovemn.gov, or leave a message by calling 763-494-6519.