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Local Sales Tax Projects

The City of Rochester is a growing and welcoming community that continues to be a destination to live, work, raise a family and retire. Our residents understand that investments in public amenities and infrastructure help support their quality of life and the local economy.  

For more than 40 years, residents have authorized the use of a local half-percent sales tax to fund a wide array of important public investments – from senior living and education facilities to flood control and public safety. 

Based on several years of planning, research and community engagement, the City of Rochester developed a long-term plan to invest $205 million in public projects supporting street repair, flood control, housing, workforce development, and recreation and sports. On November 7, 2023, Rochester voters approved renewing the half-percent local sales tax to fund the plan. 

View the Local Sales Tax Summary Dashboard View the Full Local Sales Tax Dashboard

About 18,000 new housing units will be needed through 2035, including over 5,800 senior housing units, 5,100 rental units and 6,900 new single-family homes, according to Olmsted County’s Comprehensive Housing Study conducted in 2025.  

  • Approximately 24% of households earn less than $50,000 a year, meaning many cannot afford a 1-bedroom apartment in Rochester.
  • The regional workforce is expanding to support a wider range of skills, with the most growth in the construction, education, and healthcare sectors.
  • Additional housing options are needed to address the anticipated population increase. 

The Economic Vitality Fund will focus on key components of economic development strategies, such as housing, regional revitalization, workforce development and childcare infrastructure. This initiative aims to support the growth and prosperity of the community by: 

  • Investing in missing middle- and low-income housing 
  • Preserving existing affordable housing options in our neighborhoods 
  • Developing workforce programs that will help create more job opportunities 

Economic Vitality Fund: $50 million 

Voters approved $40 million to be invested to support and enhance the City’s flood control and improve water quality. Originally built in the 1980s and early 1990s, the current flood control system protects over $1.5 billion in assets by reducing peak floodwater discharge by more than 16% and safely directing floodwaters through the City.

Ongoing funding and maintenance are essential to ensure the system continues to operate at full capacity. Changing weather patterns and recent flood events have highlighted the need to expand the system and address localized flooding risks.

This investment will fund critical improvements, including:

  • Regional detention basins for increased water storage and sediment removal
  • Enhancements to existing floodwalls
  • Riverbank stabilization projects

These projects will:

  • Improve system performance
  • Increase floodwater storage capacity
  • Strengthen protection for developed areas
  • Enhance water quality in the Zumbro River and its tributaries

By reducing flood risk and improving water quality, this initiative safeguards both the community and the environment.

Flood control and water quality: $40 million 

The Rochester Sports and Recreation Complex will be a place for everyone – kids, families and adults of all ages – to get active, connect and enjoy the outdoors. This state-of-the-art facility will offer high-quality spaces for recreation and sports competition, making it easier for Rochester residents to play, compete or simply spend time together.  

Designed for community use and amateur tournaments, the complex will add high-quality fields, courts, and walking trails that complement Rochester’s existing parks and recreation offerings while easing pressure on our current, heavily used facilities.  

Planned amenities include: 

  • Almost 2 miles in trail, which will include connections to Gamehaven Park and the Willow Creek Trail 
  • Outdoor community gathering space
  • 8 diamond artificial turf sports fields for softball and baseball 
  • 2 rectangular artificial sports fields 
  • 12 Pickleball courts
  • Outdoor basketball court
  • Accessible playground 
  • Concessions and indoor restroom facilities
  • Lighting throughout the complex, including around the fields and courts 
  • Unprogrammed grass space

In addition to serving local needs, the sports complex will help attract regional and state tournaments. That means more visitors coming to Rochester, staying in our hotels, eating at our restaurants and supporting local businesses. It’s an investment that builds community life here at home while strengthening the local economy. 

Regional sports and recreation complex: $65 million 

As of 2024, more than 100 miles (24%) of the City’s streets are 50 years or older and 23% of the City’s streets are currently rated poor or fair condition.

  • Prior to the approval of the Local Sales Tax, Rochester faced an annual shortfall of $20 million to adequately address current and future street maintenance needs.  
  • More than 30,000 workers commute from the region into Rochester each day, and that number is expected to increase to 52,000 by 2040.  

The street reconstruction project will help address deteriorating streets by repairing and rebuilding stretches of roadway in need of attention. While additional funds are required to address the full annual funding shortfall, the areas addressed by this project will benefit residents, the 33,000 workers who commute to Rochester, and the 3.1 million annual visitors alike by creating safer streets for all road users and promoting more efficient traffic flow and travel.

Street reconstruction: $50 million 

Contact Us

City of Rochester

201 4th Street SE
Rochester, MN 55904

PHONE: 507-328-2311
FAX: 507-328-2901

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