Frequently Asked Questions

Questions about the proposed plan

  • The proposed plan is a $36 million community investment that would support three major projects designed to elevate the quality of parks, recreation, and outdoor activities for people of all ages and abilities:

    1. Repair and Rebuild Hamlet Park so its amenities are usable and accessible, with additional play areas, fitness resources, and sport-specific spaces.

    2. Create a New 33.3-Acre Park at Mississippi Dunes Park that would restore and preserve natural habitat, add recreational river access, enhance nature trails, create a space for outdoor educational programs, and build nature-based playground and community gathering areas.

    3. Enhance River Oaks Golf Course and Event Center to provide a year-round recreation destination for people of all ages with indoor multi-sports simulators, a pickleball/event court, and a winter mountain biking course, an enhanced park building and expanded patio dining area, and a 9-hole Himalayan putting course built for all skill levels.

    For more information, visit The Plan page.

  • In 2022, the City of Cottage Grove embarked on a journey to reimagine recreation and our connections to the great outdoors. We listened as residents shared their desires for a wider array of recreational opportunities and family-oriented activities, preservation of natural habitat, and enhanced connections to parks and nature.

    Based on this feedback, research, and planning, the City of Cottage Grove developed the Preserve. Play. Prosper. plan to invest $36 million to renovate and enhance three recreation destinations in our city: Hamlet Park, Mississippi Dunes Park, and River Oaks Golf Course and Event Center. The enhancements and improvements to parks and recreation will encourage play, support active living, and connect people with outdoor spaces while boosting community pride and our local economy.

    For more specific information on each project in the plan, visit our Needs page.

  • The proposed plan was developed by city staff and expert consultants, including architects and engineers, based on community feedback. The projects for each site were based on what our residents said they desired and needed in parks, recreation, and outdoor spaces. If voters approve the referendum this November, the city will continue to seek community input as we work to finalize the plans. We welcome your feedback and input on the proposed plans and the vision for these new and improved sites. Please use our Connect Form to share your thoughts with us.

  • Use the Connect Form to provide any feedback or concerns, or submit questions.

Questions about the cost and proposed sales tax

  • The $36 million proposed plan includes funding for three projects:

    • $17 million to upgrade, enhance, and improve Hamlet Park.

    • $13 million to create a new, 33.3-acre Mississippi Dunes Park.

    • $6 million to transform River Oaks Golf Course and Event Center into a year-round, family recreation destination.

  • The City of Cottage Grove is proposing a half-percent local sales tax to finance $36 million for the Preserve. Play. Prosper. plan. This November, Cottage Grove residents will consider three separate ballot questions to finance the projects. All three projects will be listed on the ballot as separate questions, allowing residents to vote on whether to support each project with the half-percent local sales tax individually. If approved by Cottage Grove voters, the local sales tax is expected to generate $36 million spread over a 25-year period. The city would use collections from the sales tax, if approved by voters, to make bond payments to finance the projects that are approved by voters.

  • By using a local sales tax, the cost of this investment would be shared by residents and nonresidents who purchase goods and services in Cottage Grove. If the proposed plan was paid for with revenue collected from property taxes, the cost burden would fall solely on Cottage Grove property owners.

  • Cities have two primary ways to pay for community improvements: sales taxes and property taxes. By using a sales tax, the cost of this investment would be shared by residents and nonresidents who purchase goods and services in the city and use these recreational spaces, rather than a property tax increase that would be paid by Cottage Grove property owners.

    According to an analysis by the University of Minnesota Extension Center for Community Vitality, 31.3% of the sales tax would be paid by nonresidents. This means approximately $11.3 million of the project costs would be paid by nonresidents who purchase goods and services within Cottage Grove’s city limits.

  • A half-percent local sales tax adds half a penny for every $1 spent. In other words, five cents will be added to a $10 purchase or 50 cents for a $100 purchase. Each Cottage Grove resident is estimated to pay, on average, an additional $22.99 in sales tax per year. For more information on the cost of the plan, visit our Cost page.

  • The local sales tax has the same exemptions for purchases as the state sales tax. Groceries, clothing, prescription and over-the-counter drugs, feminine hygiene products, and baby products will not be taxed. For more information, view the list of taxable items and most nontaxable items from the Minnesota Department of Revenue.

  • No. The half-percent local sales tax would be in effect for 25 years, or until $36 million plus an amount equal to interest and the costs to issue any bonds issued to finance the project, is collected, whichever happens first.

  • Dozens of cities and counties have adopted local sales taxes to help pay for various major public projects that benefit the community, including new community centers, jails, libraries, parks and trails, and other public amenities. In many cases, these communities determined that a local sales tax was the most effective way to share the cost of the investments with nonresidents who often use their public amenities.

  • The current sales tax rate in Cottage Grove is 8.375%. This includes the state sales tax of 6.875%; a Washington County Transit tax of 0.5%, a Metro Area Transportation tax of 0.75%, and a Metro Area Tax for Housing of 0.25%. If the 0.5% local sales tax is approved by Cottage Grove voters in November, the sales tax in Cottage Grove would be 8.875%.

Questions about voting

  • If voters approve the referendum on Nov. 5, 2024, the City Council will pass an ordinance approving the tax and notifying the Commissioner of Revenue of the intention to charge the tax. This will occur at least 90 days before the first day of the calendar quarter in which the tax will be imposed. The city would distribute communication to notify residents when the half-percent local sales tax would begin.

  • Residents can vote early in person or at home by requesting an absentee ballot beginning Friday, Sept. 20. Residents can also vote at their local polling place as part of the general election on Tuesday, Nov. 5. For more information on how to cast your ballot, visit our Vote page.

  • City leaders would reengage with residents to determine their support for the upgrades, improvements, and enhancements to the parks, recreation, and outdoor spaces included in the proposed plan.