Isanti County outlines $21$23 million plan for new highway facility; board weighs local-option sales tax, bonding and levy options
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Summary
County engineers presented findings that the 1949 highway facility is at end of useful life and recommended a new ~75,000-square-foot facility on 25 acres purchased in Cambridge; estimated cost $21M$23M with funding options including a quarter-percent local-option sales tax (estimated ~$1.8M/year), bonding in 2027, or property-tax levy alternatives.
Isanti County staff and the highway facility exploration committee presented a multi-study recommendation to replace the countys aging highway facility, citing deferred maintenance, safety and operational deficiencies and escalating life-cycle costs.
The countys facility assessment and space-needs study recommended a purpose-built facility of roughly 75,000 square feet to accommodate modern heavy fleet vehicles, a full wash bay, consolidated maintenance and engineering space, and improved staff amenities. County engineers reported deferred repairs on the existing 1949 facility in the order of $4.5$5.5 million (2021 estimate) and described overcrowded bays, ventilation and safety problems and logistic inefficiencies that affect routine snow-and-ice response and emergency work.
The board learned the county closed on a 25-acre parcel in the Cambridge Opportunity Industrial Park on Aug. 26 that is proposed as the new site. The county engineer presented an opinion of probable cost of $21 million to $23 million for a new facility and outlined the project delivery approach, recommending selection of a construction-manager-as-advisor (CMA) to control cost and schedule. The committee recommended interviewing top CMA candidates selected from an RFP and proceeding with architect selection and defined design milestones.
Funding options and timeline: staff presented three high-level funding approaches:
- Local-option sales tax (LOS T): under Minnesota statute referenced at the meeting, a quarter-percent local-option sales-tax targeted to this capital project could generate roughly $1.8 million per year if collections begin April 1, 2027; implementing such an option requires special legislation and, if authorized, a county referendum. Staff outlined an implementation timeline that would include legislative requests in Jan. 2026, a board resolution authorizing a referendum, and a potential November 3, 2026, ballot measure.
- Bonding and reserve funds: staff recommended issuing bonds in 2027 to match the projected schedule with reserve funding for escalation and contingencies.
- Property-tax levy: as an alternative or partial source, staff estimated an approximate $97 annual increase per median county household (median home value cited by assessor) to produce the projected debt service of about $1.86 million annually; staff noted that a mix of funding sources may be used to balance equity and fiscal responsibility.
Board reaction and next steps: commissioners praised the detailed work but stressed the need for a strong public education campaign and noted their concerns about imposing new taxes. State Representative Jimmy Gordon attended, said he would tour the facility and expressed caution about advocating tax increases without seeing conditions. The board agreed on the urgency to avoid a future service crisis, and staff scheduled a public/media tour of the existing highway facility after adjournment. Staff said projected design and construction timing could allow a construction start in March 2027 and completion in 1216 months, subject to funding, CMA/architect selection and market conditions.
The board asked staff to proceed with CMA interviews, continue financial planning, and prepare for robust public engagement before any referendum or formal funding request.
Next steps: CMA interviews and architect engagement, further cost refinement, public outreach and legislative outreach for any local-option sales tax authorization.
