District contemplates huge facilities gift

Cloquet school board members got happy news Monday, when superintendent Michael Cary informed them the district has an almost certain major sponsor - Members Cooperative Credit Union - for the proposed $4.5 million outdoor athletic facilities project.

The regional credit union, which began as Cloquet Co-op Credit Union in the 1930s, is in talks with the district to cover the entire "community" portion of the project costs. As the exclusive sponsor, MCCU would pay $1.25 million (roughly the cost of a new turf field in the stadium) and up to $300,000 for a new scoreboard at the football/soccer field if the deal goes through as proposed.

School board members received a "letter of intent" from MCCU at Monday's board meeting, outlining the proposed terms of the corporate sponsorship deal.

The sponsorship agreement would be a windfall for the school district and the community group that started the entire conversation when they proposed raising a million dollars for a new turf field last spring. Other funding will include $2 million in bonds and $1 million in ESSER (Elementary and Secondary School Emergency pandemic relief) federal funds. The bonds would be paid back with capital facility funds from the state rather than local tax levies.

Board reactions were largely positive, although there was a long discussion about the "marquee" sponsorship deal.

Board member Dave Battaglia, who sits on the building and grounds committee, said he thinks it's the way most communities, including Hermantown and Superior, are going. "I think it's a great deal," he said.

Board member Hawk Huard agreed. "Actually, we had nobody else step up financially and say, 'Hey, here's $150,000 bucks,'" he said.

As it stands, the plans include replacing the current grass football and soccer field with turf and widening the field for soccer, redoing and widening the aging track, relocating and doubling the tennis courts from four to eight, moving the discus and shot put field to the current tennis courts as well as reconfiguring seating in the bleachers and adding a new scoreboard. A team clubhouse was left out of the project, but could be completed later by students. New lighting could be an add-on, depending on other costs.

The goal is to start the project later this spring, with the goal of completing the work by October or sooner. To make that happen, Cary said the engineering and contracting firms hired to oversee the project said they really need board approval of the project and financing by the end of this month.

"It's a lot to think about, but with all that in mind, the last piece that we needed to fall into place financially is the corporate sponsorship piece," Cary told the board.

The letter of intent described some of the sponsorship conditions, which the board discussed Monday, including:

-The sponsorship term is 20 years starting the day the complex opens, with MCCU holding exclusive rights to negotiate for a continued sponsorship prior to expiration.

- The first half of the sponsorship would be paid in Year 1, with the second half and the actual cost of the scoreboard to be paid in Year 2 of the sponsorship.

-MCCU would have exclusive naming rights to the entire complex, and the district would use MCCU's name and/or logo in all publications and communications.

-The district could maintain a permanent sign or plaque recognizing Rol Bromberg and his important contributions to the district, but MCCU shall have exclusive naming rights to the complex.

-The MCCU logo and/or name will be prominently displayed in a long list of public areas, including the entrance to the football/soccer field, press box and scoreboard as well as windscreens on the tennis courts and football stadium fences.

"It's not having giant neon signs all around the field, it's having banners and kind of static signs there, and the one dynamic piece would be that video board we've discussed," Cary said.

The district could not sell fence signs for other businesses, Cary said. However, MCCU is willing to have other businesses advertise on the video board, as long as they aren't direct competitors.

Board members questioned some additional signage requests, including banners in the weight room and middle school gymnasium.

Cary said he told MCCU those were a maybe, because those portions of the facility were completely publicly funded. "In the future, we may want other sponsors if we need help to renovate those spaces," he said. "So it would be one of those things where it's just a recognition banner for now."

Board member Ken Scarbrough also objected to a provision that limited who the district could bring in to provide financial education, pointing out that the donation amounts to about $62,000 a year for 20 years.

A legacy wall on or near the complex could mark one-time donations from community members and businesses.

Cary expects to bring the final contract to the board for its approval at the Feb. 28 board meeting.