Our View: State needs to modify Cloquet sales tax

Cloquet’s local sales tax revenue is dedicated to specific projects and needs in our community. Seven years ago, the Minnesota Legislature and local voters allowed Cloquet to collect the tax — to be used specifically for park/trail improvements, public infrastructure and infrastructure improvements for a potential commercial development — but required that specific dollar amounts be tied to the three project areas.

That included $5.8 million to develop the swampy corner adjacent to Highway 33 and Interstate 35. At the time, that area was thought to be a prime spot for development, with rumors about Target and Cabela’s and the like circulating on a regular basis.

But that project is dead. While some of that area is developable, overall it’s just too wet. More importantly, market conditions have changed to make that development unfeasible. (Plus, a natural gas pipeline would need to be relocated.) Now the city needs the legislature to approve reallocating those funds back to parks/trails and public infrastructure.

Otherwise the city might not be able to use the funds for a decade or more, as Cloquet would have to wait until the tax sunsets to tap into any leftover money.

While some may be unhappy that a local sales tax even exists, we must remember that when we voted on the issue in 2012, we approved (by 63 percent of the vote) a sales tax to benefit parks/trails, everyday infrastructure needs such as storm and sanitary sewers, water and streets plus the potential commercial development.

So the issue is not whether we collect the tax. The issue is that the legislature needs to approve modifying the tax to allow the city to use that $5.8 million on the other identified project areas.

If the legislature approves, no additional tax will be collected above the initially approved cap of $16.5 million. They would simply shuffle the funds allocated for retail development over to the original purpose of parks/trails and public infrastructure.

With the original $4.5 million allocated for parks improvements already spent, an extra couple million for the hockey arena and other Pine Valley park improvements could save the day and leave money left over to spend on better streets and other spendy infrastructure needs.

The Minnesota Legislature needs to approve this allocation. If the legislature doesn’t — or, worse, if there’s no tax bill this session — important infrastructure projects and recreational advances will be delayed. Looking around town, we can see the positive effect the sales tax has been. It would be a shame to stop now.

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