Proposed Perham Area Community Center Fit-Up

The Perham Area Community Center is planning a renovation and addition to the current facility to keep up with the growth of the community and area. The PACC Fit-Up will address the responses from the community survey, including more workout space as well as additional programming and family activities.

What will the kids playland look like?

We don’t have any renderings created yet, but here is an idea of what it could look like.

What will the exterior of the building look like after it is re-skinned? 

The current exterior of the building is hard to apply materials to, so our plan is to spray foam the entire exterior and then attach metal panels. This will improve the insulation value of the building drastically. These drawings show the updated front of the building, along with the expansion for child watch, concessions, and storage.

Below are some common questions related to the project and the sales tax proposal:

Why does the PACC need improvements?

Like any business, the PACC has an operating budget based on services that are wanted and/or needed now and well into the future. The board conducted strategic planning in 2016 to address the future of the PACC including changes, improvements and cash flow. That strategic planning process resulted in a community survey and the proposed plan is a direct response to the survey results. Citizens requested more workout space, and additional programming and family activities. Secondly, our facility is showing its age and needs  mechanical and structural upkeep. Just like a house, the PACC needs repairs that occasionally exceed planned expenses. Finally, the PACC needs to add services that will help attract members, sustain operations and improve our community. The PACC will continually evaluate opportunities to add aquatics features, therapy services, fitness facilities and other offerings to deliver on our mission to build healthier lives in our community.

What is the estimated cost?

Hard Construction

Minor/Major remodel of current building, as well as 7,000 sq ft expansion.


Capital Repair / Replacement

Replace ceiling in aquatics area / update pool equipment / add air conditioning throughout the facility



Kids Playland, update exercise machines and equipment, Climbing wall


Soft Construction

10% of projects costs excluding new pool system and general equipment costs — architect / engineering fees, permits, insurance, etc.


Estimated Total Project Costs


Why use a sales tax to fund the improvements?

A sales tax would spread the cost of the improvements over a broader number of users who visit and shop in Perham. Alternatively, placing the cost of the improvements on property taxes would require only those who have property within city limits to contribute. Perham is a regional center that draws a variety of visitors to the community who also use the amenities that the PACC has to offer. By paying for the updates with a sales tax, these other users contribute to the overall cost of the building project. Currently several surrounding towns use local option sales tax measures to successfully fund community buildings and athletic facilities.

What items would be subject to the half percent sales tax?

The tax applies to all items subject to the State’s general sales tax. Similarly, the local option sales tax would NOT apply to groceries, clothing, prescriptions, vehicle sales, or other non-taxable items.

How will the half percent sales tax affect my purchases?


Current Cost

New Sales Tax

Medium Latte


2 cents

Lunch and Beverage


6 cents

Dinner for Two


25 cents

Floor Lamp


50 cents

Overnight Stay


60 cents

How long will the sales tax last?

The proposed sales tax will be in effect until $5.2 million is collected or for 20 years, whichever occurs first. The sales tax is limited to the payment of costs related to the construction of the PACC improvements and shall terminate when all such costs have been paid. If sales tax collections are similar to DOR projections, the improvements should be paid off in approximately 20 years.

How is the total project being funded?

In addition to the sales tax, total project costs of $5.6M will be funded using additional grants, fundraising dollars, and sponsorships.

Can the sales tax be used for any other project?

No. The ballot question is specific to the Perham Area Community Center. Per State Statute the physical address listed on the ballot is the only place the funds can be used.

How would the sales tax be collected?

The local option sales tax would be collected by the Minnesota Department of Revenue along with the State sales tax. The State would then remit the funds to the City. The City would pay a fee to the State for this service but this would minimize the administrative cost associated with the tax.

When would construction begin on the facility?

If approved at the November 2018 election, the sales tax proposal would then go the Minnesota Legislature to receive special legislation authorizing the tax. If approved during the 2019 Legislative Session, construction would likely begin in the Fall of 2019.


Perham Area Community Center
620 3rd Avenue SE Perham, MN 56573


Mon- Fri    6am-9pm
Saturday    8am-4pm
Sunday        12-4pm

*24/7 Access available when unstaffed with membership, ask us how!


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REMINDER!!! We are closed September 5th.
As much as we would love to see you, we are closed in celebration of labor day. Thank you!