This is not new Governor Pawlenty has said that he would support it many time as long as the referendum passes. As I said before I believe this will pass now there are just to many groups out there for it and as far as I know there is not group out there saying not to vote for it. There are people like me that are asking people not to support it but not group that is out there fighting against the project.
Pawlenty gives nod to DECC plan
DULUTH:Gov. Tim Pawlenty says he'll support the project if a city referendum on a sales tax increase passes.
BY SCOTT THISTLE
NEWS TRIBUNE STAFF WRITER
If local voters agree to add 0.75 percent to Duluth's restaurant food and beverage sales tax later this month, the city probably will win a powerful ally in its bid to expand the Duluth Entertainment Convention Center.
"Assuming the referendum goes well, we would be inclined to support it," Gov. Tim Pawlenty said Thursday.
In Duluth to celebrate Minnesota Power's 100th anniversary, the governor also met with Mayor Herb Bergson to review the city's plan to solve its unfunded $280 million retiree health-care debt.
Outlined in a set of recommendations issued by a City Council-appointed task force on the problem, that plan was impressive, Pawlenty said.
"The problem is large and it's serious, but the good news is Duluth has recognized the problem, city leaders have come together, have acknowledged the problem and come up with a blueprint to try and solve the problem," he said.
Duluth was ahead of other Minnesota cities and counties with similar hurdles, Pawlenty said. He credited Bergson and the City Council for taking on the issue.
"These are big and serious challenges, so we are glad the mayor has had the courage to step forward and tackle this," Pawlenty said.
A big part of Duluth's solution involves renegotiating contracts with city workers and eliminating the lifetime health benefits now promised, Pawlenty said.
But those contracts don't expire until the end of the year, and a decision on whether the state should fund half the proposed $67 million DECC expansion needs to be made by the end of the legislative session in May, Pawlenty said.
"We need to make the DECC decision now, so we are going to have to take a leap of faith that the city will get these retiree health-care issues worked out," he said. "Based on what I have just heard, my comfort level has increased significantly."
Pawlenty previously had voiced reservations about the city adding $33.5 million -- Duluth's share of the expansion cost -- to its debt load. The city would pay for its portion of the expansion costs with the increased sales tax.
Even with voter approval of the tax increase, Pawlenty and the Legislature must agree to the tax increase and to provide the state's share of the construction costs.
If approved, the tax increase would make the total sales tax, including all state and local taxes, on restaurant food and drinks 9.75 percent in Duluth. A $100 dinner tab would fetch $9.75 in taxes, instead of the $9 paid now.
The expansion includes a new ice arena with an Olympic-sized ice sheet and seating capacity of 6,630. An additional parking ramp is part of the expansion plan. The existing arena, which seats 5,100, would be used after the expansion.
The University of Minnesota Duluth, which uses the DECC as home ice for its men's and women's hockey teams, also has agreed to fund about $16 million of the expansion cost. The DECC also is footing a share of expansion costs.
"The DECC project is a needed project. We need to find a way to have a modern expanded arena and convention facility in Duluth," Pawlenty said. "This is a tourism Mecca. A big part of the economy and enjoyment for people to be here is to have a tourism experience here, a convention experience here, a big event experience here. Having the DECC expanded and remodeled is a wise thing to do."
But Pawlenty, an opponent of new or expanded taxes, stopped far short of supporting the proposed funding mechanism by dodging a question on how he would vote on the sales tax referendum, if he could do so.
"Well," Pawlenty said laughing, "I haven't had the benefit of all the community debate and information, so give me a week or two to study that and I'll answer that for you."
Duluth officials said they were satisfied with the meeting and felt buoyed by the governor's reaction to their plan for solving the retiree health-care debt.
"He was very gracious," Bergson said. "He went as far, maybe even further, than I had hoped in endorsing what our position is."
At Large City Councilors Don Ness and Roger Reinert, who both participated in the meeting with Pawlenty, echoed the mayor's assessment.
"I think he came to appreciate the breadth of the plan and the fact that there is political will behind the plan to get it done," Ness said.
Pawlenty was engaged and sincere during the meeting, Reinert said. "He didn't come positioning himself or playing politics," Reinert said. "Just like we do, he has concern about the issue and wanted to understand it better and know what we are doing about it."
But a citywide no vote on the sales tax increase would probably end Pawlenty's support for the project, Bergson said.
"That's the line in the sand," Bergson said. "We expect it to pass, and I'm willing to stake the project on the fact that the referendum will pass. If it doesn't pass, then I'm not reading Duluth very well."
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