East Grand Forks council approves recreation project plan, extends driver exam lease

The East Grand Forks City Council on Feb. 18, 2025 approved a project plan for improvements to the Civic Center Sports Complex and the VFW Memorial Arena and authorized a two-year extension of the lease with the State of Minnesota for use of office space in the park shop as a driver exam station, council members said during the meeting.

City staff said the formal approval of the project plan is needed to finalize paperwork the city will submit to the Minnesota Department of Revenue so the previously approved local sales and use tax can be implemented. “By doing that tonight, we'll get that document signed and be able to send everything in a bundle to the Department of Revenue,” staff member Hutton said during the meeting.

The council voted to approve the project plan after Hutton explained the Department of Revenue requested documentation confirming the council had formally approved the plan and relevant minutes and resolutions. The project plan will fund improvements to the Civic Center Sports Complex and the VFW Memorial Arena with the city's approved local sales and use tax. Council members said staff will transmit the project plan and supporting materials to the Department of Revenue; staff stated that completing that submission is the next administrative step toward putting the tax into effect on July 1, 2025.

Separately, the council approved a two-year extension of the lease agreement with the State of Minnesota for the driver exam station space in the park shop, extending the arrangement through June 30, 2027. The lease extension was presented as a routine renewal; no substantive discussion was recorded.

Votes at a glance: - Approval of the minutes of the Feb. 4, 2025 council meeting — moved by Pug Shevinsky; second by Tim Riopel; outcome: approved. - Consent agenda (items 2 and 3) — moved by Dale Helms; second by Karen Peterson; outcome: approved. (Items not specified in the meeting record.) - Item 5 — Two-year extension of lease agreement with the State of Minnesota for park shop office space as a driver exam station through 06/30/2027 — moved by Tim Riopel; second by Pug Shevinsky; outcome: approved. - Item 6 — Project plan for the recreation facility improvement project (funded with the approved local sales and use tax) covering the Civic Center Sports Complex and VFW Memorial Arena — moved by Reapel; second by Karen Peterson; outcome: approved. Staff said the project-plan approval and approved minutes will be bundled and sent to the Minnesota Department of Revenue. - Claims — authorization for the city administrator/clerk-treasurer to issue payment of recommended bills and payroll — moved and seconded; outcome: approved.

Council reports and other items: Council member Dale Helms reported on a recent trip to St. Paul and meetings with state legislators about border cities enterprise tax credits, sales-tax treatment for large contracted projects, local government aid (LGA) and industrial park funding. Council member Karen Peterson reported on a youth hockey tournament the Blue Line Club and Parks and Recreation hosted that brought several Minnesota teams to East Grand Forks; specific attendance figures were not specified in the meeting record. Mayor Mark Olstad was absent.

Staff next steps include finalizing the project-plan package and submitting it, with the requested minutes and resolutions, to the Minnesota Department of Revenue for review. No further council direction or additional conditions on the project plan or lease extension were recorded at the meeting.