With concern growing over the future of Rochester’s proposed sports and recreation complex, it’s critical that the debate focus on facts.

“The Legislature approved a local sales tax extension with clear parameters in 2023,” Senator Carla Nelson (R-Rochester), who previously chaired the Senate Tax Committee, said. “The city does not have free rein to rewrite the project or reallocate funds. If the city wants to dramatically rethink this project or seek additional taxpayer funding, it must return to the Legislature. That is how the process works. It exists to protect taxpayers. Changing course is not impossible, but the rules are clear, and they must be followed.” 

Here are the facts:

In 2023, the Legislature approved Rochester’s request to extend its local sales tax to fund four specific regional projects:

• $50 million for street reconstruction
• $50 million for an economic vitality fund to support downtown growth
• $40 million for flood control and water quality projects
• $65 million for a regional sports and recreation complex

All items appeared in both the legislation and the ballot question approved by Rochester voters. Each project has its own budget, and the law does not allow the city to shift funds from one to another.

Sen. Nelson, the former chair of the Senate Tax Committee, provided clarity on what the law allows and what it does not:

• The city cannot extend the local sales tax to collect more revenue. Once the amount authorized by the Legislature and passed by  the voters  is collected, the tax ends.
• The city cannot request additional local sales tax funds without returning to the Legislature. Local governments do not have the power to increase or lengthen a voter-approved sales tax on their own.

“This is not a revolving line of credit,” Sen. Nelson said. “The numbers were set in law and approved by voters. If the project now costs more, the city must either scale it back or find other sources of funding.”

• By law, local sales taxes are intended for regional projects that serve a broader public. They are not designed to act as flexible funds for routine city needs.
• Sen. Nelson also reminded the public that Minnesota law prohibits cities from using taxpayer funds to lobby for or against a local sales tax referendum. While city officials can speak as private citizens, they are not allowed to use government resources to influence an election. This rule is in place to protect fairness and prevent public dollars from being used to push for more public dollars.

As a former Senate Tax Chair and a longtime advocate for responsible budgeting, Sen. Nelson said her goal is to help guide the public through a complicated situation.

“This is a real problem, but it is solvable,” Sen. Nelson said. “What we need is thoughtful leadership grounded in facts. That is how we serve the public. By doing the work, not by grandstanding.”