Frequently Asked Questions
Learn About the Plan to Invest in a New Regional Public Safety Center
Questions About the Plan and Need
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As a regional public safety hub, the City of Hibbing must provide the necessary facilities for our fire and police departments to deliver quality, responsive services our residents deserve. Currently, the two departments operate from separate locations, with the fire department spread across three aging buildings. Repairing the outdated and deteriorating fire department headquarters building is increasingly costly. Our police department currently leases space from St. Louis County, costing the city about $70,000 a year. All of our public safety facilities need more space for staff, operations, training and equipment. The proposed “Your Safety, Our Priority” plan aims to address these issues by constructing a new regional public safety center, bringing all first responder teams – police, fire and EMS - under one roof for improved response, efficient operations and reduced long-term costs. For more information, visit our Challenges page.
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The proposed plan would create a new regional public safety center to centralize services and enhance service delivery, efficiency and collaboration. This facility will provide operational space for both the police and fire departments, accommodating all public safety staff, vehicles, equipment and storage. It will provide a safe and efficient working environment with dedicated spaces for training, equipment and evidence storage, and essential emergency response vehicles, such as a full-size ladder truck. For more information, visit our Plan page.
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By bringing our police and fire departments under one roof, the regional public safety center will provide the space necessary to accommodate staff, equipment, vehicles and training. This consolidation will support more collaboration and efficient operations, ensuring that our essential public safety personnel are prepared and equipped to respond quickly and effectively to keep our residents and community safe. For more information, visit our Plan page.
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Investing in centralized public safety options will ensure that the right people, equipment, collaboration and training are available to respond quickly and provide the best service possible. Combining the fire and police departments into one building would result in operational efficiency, collaboration and service delivery for our residents, community and region. For more information, visit our Plan page.
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Our community prioritizes high-quality public services to enhance safety, well-being and quality of life. Re-investment in essential public safety services that keep our residents safe and protect our community is a top priority for the city.
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Dozens of cities and counties across Minnesota have turned to a local sales tax to invest in public projects that benefit their communities and regions. For example:
In 2022, Grand Rapids voters approved a half-percent local sales tax to fund repairs and improvements to the Grand Rapids IRA Civic Center.
In 2022, Itasca County voters approved a 1 percent countywide sales tax to fund a new justice center.
In 2020, voters in Virginia approved a 1 percent sales tax to fund renovating, expanding, and upgrading the Miner’s Memorial recreation complex and convention center.
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No. The building currently housing the Hibbing Fire Department was built in 1964 and is rapidly deteriorating. Additionally, the Hibbing Police Department currently rents space from St. Louis County for about $70,000 a year. Neither team has enough space for equipment, vehicle storage, staffing areas or training. The cost to repair and maintain the fire department is growing, and the leased space from the county does not provide adequate room for the city’s law enforcement personnel, equipment and evidence storage. For more information on why this plan is being proposed now, visit our Challenges page.
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If voters approve the plan for a new regional public safety center, the city will explore opportunities to convert the land that houses the current fire headquarters building into commercial land. This would create new opportunities to attract new businesses and expand the city’s property tax base. The police department currently rents space from St. Louis County. Once the police department is located in the new regional public safety center, the county would utilize the space the police department once occupied for its law enforcement services.
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If the referendum isn't approved, the city will collaborate with public safety leadership, residents and community stakeholders to discuss the next steps that are needed to invest in essential public safety services. Visit our Challenges page for more information on why this plan is being proposed now.
Questions About the Cost and Local Sales Tax
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The city is proposing a $29.6 million investment plan to build a new regional public safety center.
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The proposed plan would be paid for through:
State bonding money: The city secured $10 million in bonding funds from the Minnesota Legislature in 2023 for this project.
A half-percent local sales tax: The Minnesota Legislature authorized the City of Hibbing to seek approval from residents for a half-percent sales tax. If approved by voters in November, the local half-percent sales tax would generate up to $19.6 million over 20 years or when the bonds to fund the project have been paid - whichever happens sooner.
Additional funding sources: The city is actively seeking additional funding sources, including grant money, to help support the project. If secured, grant funding would lower the cost of the project on taxpayers.
According to an analysis by the University of Minnesota Extension Center for Community Vitality, non-residents will pay about 50% of the collected sales tax. If approved by voters, Hibbing residents will pay less than one-third of the project's total cost. For more information, visit our Cost page.
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Cities have two primary ways to pay for community improvements: sales taxes and property taxes. A sales tax shares the cost of the project between residents and non-residents. If a property tax was used, the project cost would fall solely to those who own residential or commercial property in Hibbing. According to an analysis by the University of Minnesota Extension Center, non-residents will pay about 50% of the collected sales tax. For more information, visit our Cost page.
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The local half-percent sales tax would be applied like the state sales tax. There are some exemptions to the sales tax, including groceries, clothing, prescription drugs and baby products. For more information, view the list of taxable items and most nontaxable items from the Minnesota Department of Revenue.
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If voters approve, the sales tax collection will begin in 2025. It will expire in 20 years or when the bonds to fund the project are paid off, whichever happens first.
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No. The half-percent sales tax would be in effect for 20 years, or until $19.6 million plus an amount equal to interest and the costs to issue any bonds issued to finance the project, is collected, whichever happens first.
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The University of Minnesota Extension Center for Community Vitality analyzed the economic effects of a local sales tax increase in several Minnesota cities and found little evidence that overall sales growth for businesses was impacted.
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The half-percent sales tax adds half of one penny for every $1 spent. In other words, 5 cents will be added to a $10 purchase or 50 cents for a $100 purchase. Based on research from the University of Minnesota, each Hibbing resident would pay, on average, an additional $31.06 annually ($2.59 per month) in sales tax. For more information, visit our Cost page.
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Yes. If funding for the projects is approved, the city will explore ways to reduce costs and improve efficiency throughout the pre-design development and construction process. The city will also take advantage of better financing terms if such opportunities present themselves. If the project cost is less than anticipated, the sales tax will end sooner than initially projected.
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The state law authorizing the City of Hibbing to present the local sales tax to voters clearly states that the city must use the funds solely for the project that is on the ballot.
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Yes. The City of Grand Rapids has a half-percent local sales tax, Itasca County has a 1% countywide sales tax, and the City of Virginia has a 1% local sales tax. Voters approved all of the local sales taxes.
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The current sales tax rate in Hibbing is 7.375%. This includes the state sales tax of 6.875% and a St. Louis County tax of 0.5%. If the 0.5% local sales tax is approved by Hibbing voters in November, the sales tax in Hibbing would be 7.875%.
Curious to see how Hibbing compares to other cities in MN? Visit taxmaps.state.mn.us/salestax.
Questions About Project Development
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Yes. The city will engage the community in the development phase. In the meantime, residents are encouraged to share feedback and questions throughout the process.
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The city is using a portion of the $10 million in bonding funds approved by the Minnesota Legislature in 2023 to assist with pre-design planning for this project. The city is committed to sharing more information about the building and construction timeline with residents. Information will be available through this website and other city communication channels, including the website and social media. For more information, visit our Plan page.
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A regional public safety center will meet the needs of our residents, community and region. Combining the fire and police departments into one building will result in operational efficiency, improved collaboration, cross-training, effective service delivery and cost savings. For more information, visit our Plan page.
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On March 20th, the city council awarded the bid for Construction Manager at Risk services for a Public Safety Building which includes the Fire, EMS, and Police departments to Adolf & Peterson. The next steps include selecting an architect, identifying a location and proceeding with preliminary design. Check back on this page for updates as the project progresses.
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The location for the proposed regional public safety center has not yet been chosen. The city has narrowed options down to three parcels of land and is investigating cost, feasibility and design information for each potential site.
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No. All images and renderings are conceptual in design and are being shared to help residents understand the vision for the proposed plan. All depictions are subject to change as needed based on final costs, location, and identified needs of the city’s essential public services.
Questions About Voting
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Election Day is November 5, 2024. Early voting will begin on September 20, 2024. For more information, visit our Vote page.
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The City of Hibbing is asking residents to consider a single ballot question on a half-percent local sales tax to support the proposed plan for a new regional public safety center. For more information on the proposed, visit our Plan page. For more information on how to vote, visit our Vote page.
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If the referendum isn't approved, the city will collaborate with public safety leadership, residents and community stakeholders to discuss the next steps that are needed to invest in essential public safety services. Visit our Challenges page for more information on why this plan is being proposed now.