By It appears the city and county are close to striking a deal that would allow Aberdeen to annex the Brown County Fairgrounds.
The idea has been kicked around for decades, but the county has always had concerns about the city having too much control over the grounds. A new proposal seems to have eased those worries.
Rachel Kippley is the manager of the Brown County Fair, the largest event at the fairgrounds each year, and backs the idea, but said it almost feels counterintuitive.
Before she was hired for that job in 2021, she was a member of the Brown County Commission. She said one of the first things she was told after being elected in 2012 was to never let the city annex the fairgrounds.
That, indeed, has been the prevailing county attitude in the past. But with the work done to address authority details, she said she’d be remiss if she weren’t open to the prospect of a substantial new revenue stream.
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If approved by the city, county and Brown County Fair Board, the annexation would be a financial benefit to the county. That’s because 100% of city sales tax collected during events on the grounds would be given to the county, though it could only be used for improvements at the fairgrounds. Plus, Aberdeen Mayor Travis Schaunaman said, the county could opt-out of the agreement at any time.
Duane Sutton, chairman of the Brown County Commission, said having a clause allowing the county to easily terminate the contract is important to county officials.
Kippley agrees. If annexation wouldn’t work out the way it’s anticipated to or if a future city council wanted a full, traditional annexation, there needs to be a way out for the county, she said.
Annexation would allow collection of city sales tax on fairgrounds
One of the headlining acts at the 2025 Brown County Fair was 38 Special. Under the terms of an agreement that would allow the city to annex the Brown County Fairgrounds, no noise restrictions could be imposed. Aberdeen Insider photo by Scott Waltman.
Counties cannot collect sales tax, but cities can, which is why annexation is critical to the plan.
Now, the state’s 4.2% sales tax is collected at the fairgrounds. If annexation were approved, the sales tax level would increase to 6.2% or 7.2%, depending on the transaction. The city would collect the extra revenue, which would generally be its share of sales tax, but would pass the entire amount to the county.
Aberdeen’s base sales tax is 2%, but a third penny is charged on restaurant meals, alcohol and hotel/motel stays. So, for example, the city sales tax on a T-shirt would be 2%, but it would be 3% on a beer.
That revenue could not go into the county’s general fund, Sutton said. It would be mandated that it go into the county’s fairgrounds improvement fund.
The city sales tax would apply to all taxable sales on the fairgrounds. That includes at Centennial Village, during the fair, at hockey games, for camping and during special events, Sutton said.
In his eyes, the only downside is that a corn dog at the fair or a beverage at an Aberdeen Wings game would cost a few cents more.
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In the past, Sutton said, county officials have been wary about the city’s motive behind potential annexation. But he thinks those worries have been addressed this time around. For instance, the city could not impose beautification or noise regulations for the fairgrounds. That means stock car races and fair concerts would not be affected, he said.
That is also important to Kippley. The county, as owner of the fairgrounds, needs to be able to control what happens on the grounds.
Schaunaman
The only motive is to create a new revenue source to help improve the fairgrounds, Sutton and Schaunaman said.
“We’ve taken the county and fair board’s objections seriously and built an agreement that protects their independence while providing a real funding solution,” Schaunaman said. “Under this proposal, control of the fairgrounds remains entirely with the county and the fair board. The city will not impose any zoning, green space or development requirements. The county retains full control of the camping areas, operations and events.
The county would also be able to keep its fairgrounds liquor license, Sutton said.
Idea pitched at fair board meeting
Both men pitched a plan to the Brown County Fair Board when it met Wednesday, Sept. 10.
Schaunaman said that in recent months he’s met with county commissioners and Kippley to talk through the idea and navigate any concerns.
Brown County State’s Attorney Karly Winter and Aberdeen City Attorney Ron Wager have been involved in the talks and have done a good job addressing the county’s issues and working through the legalities, Sutton said.
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Sutton
He said before the fair board meeting, he visited with one board member who was originally strongly opposed to annexation. But, Sutton said, once they went through the contract and ordinance, those concerns were eased and the person expressed support for the plan.
Kippley said all fair board members support the proposal.
Sutton would like first-reading of the annexation ordinance and contract to be during the Tuesday, Sept. 23 county commission meeting. Final approval would be needed after that, and people who want to comment on the plan can attend either meeting.
Schaunaman said he hopes the issue can be discussed during the Monday, Oct. 27 city council meeting.
Aberdeen City Attorney Ron Wager said the annexation concept and ordinance amendments would be before the city council for consideration in October.
Potential city council and county commission approval could be referred to a vote if residents collect enough signatures, so Sutton and others want the chance to explain it to the public so folks understand what’s happening. He hopes the ordinance can be in place around the start of the year because that timing just makes sense.
He said he’s optimistic about getting majority approval from all three groups.
Annexation could mean $120K to $150K annually for fairgrounds, Sutton says
Taxable purchases, including tickets and concessions, would be subject to the city sales tax if an agreement is approved allowing the city to annex the Brown County Fairgrounds. Courtesy photo.
Sutton estimates the change would result in $120,000 to $150,000 a year for the fairgrounds improvement fund and said that’s a conservative total. Now, he said, the fund has about $800,000 in it. It was created to save money to address significant needed upgrades on the grounds.
The first major project to get help would likely be the aging Larry Gerlach Grandstand, which needs significant improvements, he said.
“This proposal provides a sustainable, long-term way to improve the fairgrounds without changing who runs it. I see this as a practical, respectful partnership that could benefit both the city and county — and most importantly, the people who enjoy the fairgrounds year-round,” Schaunaman said.
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With an improved relationship between the city and county and assurances the city wouldn’t meddle in events at the county fairgrounds, now is the right time to move forward with annexation, Schaunaman said.
“We kind feel we’re in the midst of a perfect storm,” Sutton said, because Schaunaman and City Manager Robin Bobzien are interested in and supportive of fairgrounds improvements.
Kippley
Kippley said she appreciates the sentiment of the proposals and feels good about where things stand, but knows more discussion is needed. It’s good when people ask tough questions, she said.
“It feels weird because it’s just something we have talked about not doing for so long,” she said.
Kippley said the philosophy is the simple part. The administration would be much more difficult. The fair would need to submit a sales tax invoice to the city. That process will have to be worked through and will be especially beastly during fair week, she said.
She said she has not visited with longtime partners like Brown County Speedway, the Aberdeen Hockey Association or the Wings, who would also be affected by annexation. Getting them on board is important, Kippley said.
Now, she said, the county just eats the 4.2% state sales tax. But doing that with the city sales wouldn’t make sense, so fees will likely go up. That’s the simplest thing because the fair doesn’t want to fiddle with making change, she said.
