What improvements are needed at the Edina Aquatic Center?

    The 1958 original pool pump house structure needs replacement to accommodate changes in State Code related to pumping apparatus, filter requirements, electrical capacity, and surge tank reservoirs to address capacity displacement. This includes work to mechanical, electrical, plumbing and structural improvements to the pump house room.

    The deteriorating infrastructure poses operational risks, safety concerns and compliance issues, which could force facility closures if left unaddressed. Time is of the essence, as delays in addressing these issues could lead to further deterioration, higher repair costs and potential closure of the facility.

    The Edina Aquatic Center would likely be unable to reopen if it experiences another mechanical failure like that of 2021. The facility’s popularity and high patronage underline the importance of maintaining its functionality for the community and visitors alike.

    What happened at the Edina Aquatic Center in 2021?

    Ten days before the opening of the Edina Aquatic Center in 2021, a mechanical failure occurred. Because the systems are obsolete, used parts were used as an interim solution, allowing the facility to reopen.

    That year, the Edina Aquatic Center opened more than a week later than expected.

    What has been done to date to ensure the Edina Aquatic Center remains opens?

    In 2022, an assessment of the facility’s conditions was completed, including immediate recommendations. Conceptual design work began later that year, incorporating findings of the assessment.

    In 2023, schematic design and design development work was done. In 2024, work began on construction documents. When a request for State bonding failed, the project was paused until alternative funding sources could be identified.

    The City Council held a work session in 2025 to learn more about the needs at the Edina Aquatic Center and how the work could be funded. The City also pursued State bonding again in 2025.

    Did the City consider any smaller projects or improvements?

    The City and its design partners reviewed all possibilities during the assessment and investigative stages, including the replacement of just the equipment in the building that was failing or in danger of failing. During this discovery period, an examination of the existing structure to the current Code for municipal swimming pools was conducted and found that portions of the pool—the balancing tanks—were not up to standards. Any modifications to the building or equipment require correcting this infraction. The existing building footprint would not accept these changes and requires an expansion.  

    Why did the City staff choose this financing method to recommend to the City Council?

    The City chose tax abatement as a financing method due to several significant challenges and constraints.

    Traditional funding sources like municipal bonds for recreation are very limited. It would not be possible to increase user fees to finance the project in the necessary timeline or without significant increases that would impact affordability. Even if the City had the authority to issue municipal bonds for this type or project, tax levy would be necessary for the payments. 

    Other methods that were considered: 

    • Use of the “Edina Law” was considered, but the Aquatic Center cannot generate enough revenue to meet debt repayment requirements, limiting future funding opportunities for other enterprises. 
    • The City could seek voter approval through a referendum. However, this is not a viable option due to the urgency of the project. Without timely investment, the Aquatic Center risks further operational failure.  
    • The City could sell Rosland Park to the Housing & Redevelopment Authority (HRA) and use HRA financing. However, that process is extremely complicated and may impact future projects at Rosland Park along with higher interest rates due to a lower credit rating for the HRA (AA). 

    The City pursued State funding through bonding, but did not receive any funds in 2023 or 2025. 

    Could user fees be increased to cover the cost of the project?

    No. There is limited capacity to increase user fees without risking affordability for patrons.

    A $817,700 increase in revenue would require a 73% increase from $1.12 million to $1.93 million. To cover this expense, daily admission would need to increase from $14 to $24 per day. An increase in the season resident pass would increase from $98 to $169. A family of three would see an increase of $204 over current prices. Rental fees would have to increase from $73,000 to $127,000, an additional $53,700.

    Was the project included in the City’s 2025-2030 Capital Improvement Plan?

    The 2025-2030 Capital Improvement Plan includes $4 million to be paid with CIP bonds. It is outlined on Page 224 of the Capital Improvement Plan.

    However, the project is now estimated to cost $9 million. The state of the pump house had been “grandfathered in,” but will need to be brought up to Code when the improvements are made. Increases are also due to rising costs over the last 18 months and the need to plan for tariffs. If there are no tariff-related increases, the budget can be reduced.

    Why not include the costs for the improvements in the 2026 City budget?

    The City Council will not take action on a 2026 budget until December 2025. In order to make the improvements before the start of the 2026 Aquatic Center season, the improvements must be ordered soon.

    Why is the City considering tax abatement to pay for improvements at the Edina Aquatic Center?

    The Edina Aquatic Center needs immediate repairs. There are limited funding options to pay for improvements at recreation facilities in Minnesota. The City sought State bonding for the project in two legislative sessions, but was not successful in its quests. In January 2025, staff presented other funding options and told Council Members they would likely explore a tax abatement if State bonding was not secured in 2025.

    How does tax abatement work?

    The City Council can decide to use a tax abatement to support a project – in this case, improvements at the Edina Aquatic Center. The City Council would adopt an abatement resolution that specifies the details of the abatement, including its duration, the amount of tax revenue to be abated and the property or parcels involved. The resolution may state that the abated funds will be used to pay for bonds issued to finance the project.

    The City would then issue the bonds to raise capital for the project. 

    Property owners in the Tax Abatement District will continue to pay their property taxes. However, the portion of those taxes that has been abated is directed toward payment the debt service (principal and interest) on the bonds.

    Essentially, the City reallocates the property tax revenue that would have otherwise gone into the General Fund for the bond repayment.

    The Edina City Council will hold a public hearing on a proposal for a tax abatement to fund improvements at the Edina Aquatic Center at its June 17 meeting.
     

    What does "tax abatement" mean in this case?

    The term "tax abatement" can be misleading. In this case, the tax is not forgiven or reduced. Instead, the City will allocate its share of the identified properties' taxes toward the repayment of bonds rather than the City's operating levy. This allocation allows the City to issue bonds, which are loans that will be repaid over time.

    What burden does this place on a property?

    This process does not put any burden on any one property different than those in the rest of the city. It simply directs the normal property taxes paid to a specific City purchase (in this case, the improvements at the Aquatic Center) and does not raise any property's tax level higher than normal.

    What are the pros and cons of creating a Tax Abatement District for this project?

    There are limited financing options for recreation improvements such as those needed at the Edina Aquatic Center. Creation of a Tax Abatement District would allow the City to sell bonds for the project and begin work right away. 

    The most significant drawback to creation of a Tax Abatement District is the loss of those taxes for the General Fund.

    How were the boundaries selected for the Tax Abatement District?

    The boundaries for the Tax Abatement District focused on the residential areas in close proximity to Rosland Park and the Edina Aquatic Center. Minnesota Highway 62 and several local streets were used as the boundaries.

    Initially, a large area between 70th Street and Highway 62 was considered, but determined to be larger than necessary. Staff recommends the proposed boundaries as shown on the map. This reduced area is sufficient in size and tax capacity to cover the annual bond payment. It's important to note that the entire Lake Cornelia Neighborhood is not included. (The map at BetterTogetherEdina.org/public-hearing-aquatic-center-tax-abatement reflects the properties included.)

    As measured in the clockwise direction, the Tax Abatement District begins at the southwest corner of 66th Street and Southdale Road; extends to the south on Southdale Road, then turns to the southwest on Hillcrest Lane; then turns to the west on Southdale Road; then turns to the north on West Shore Drive; then turns to the west on Upper Terrace; then turns to the north on Brittany Road; then extends slightly to the northwest crossing 66th Street and continues to the north on Ryan Avenue; then turns to the east on 64th Street; then turns to the south on West Shore Drive; then turns to the east on 66th Street; then turns to the southeast along the property line that separates Lake Cornelia from adjacent residential properties; then follows the coast line of Lake Cornelia to the southeast, north and west until intersecting with 66th Street, finally turning to the east on 66th Street, extending to the starting point at the southwest corner of Southdale Road.

    Are the boundaries of the Tax Abatement District different than what was posted in the legal notice for the public hearing?

    Yes. Staff had not finalized the boundaries for the Tax Abatement District before the Sun-Current’s deadline for the legal ad announcing the public hearing. So, the boundary in the public notice is different and larger than what is being recommended to the City Council for approval. (The map at BetterTogetherEdina.org/public-hearing-aquatic-center-tax-abatement reflects the properties included.)

    How long would the Tax Abatement District be in place?

    15 years

    Will the Council make a decision on this issue on the same night of the public hearing?

    The Council typically makes decisions at its meeting following a public hearing. The Council will likely take final action on the matter at its July 15 meeting.

    However, the June 17 meeting agenda will include an action to approve a contract for a Construction Manager at Risk to keep the project on track.

    Are other improvements planned for the Aquatic Center?

    The Parks & Recreation Department would like to pursue other improvements at the Edina Aquatic Center, including new locker rooms, concessions and guest services in a future project.

    Will the bonds funded with tax abatement also pay for the other improvements?

    No. The tax abatement will only be used to pay for a new pump house and systems to keep the Aquatic Center operational.

    How will the City’s General Fund be impacted without the $8.9 million in property taxes from those in the Tax Abatement District?

    The City will pay approximately $817,700 per year for the bonds for this project. That equates to 1.4% of the property tax levy.

    What percentage of Edina Aquatic Center passholders are Edina residents?

    85% of current passholders are residents. As of June 9, 2,299 passes for the 2025 season have been sold to residents and 408 to nonresidents.