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Memo - Hopkins Center for the Arts-Funding Discussion . . Administrative Services Department Office of the City Manager Memorandum To: From: Date: Subject: Honorable Mayor and Members of the City Council Steven C. Mielke, City Manager March 23, 2001 Hopkins Center for the Arts-Funding Discussion Based upon direction from the City Council at the last regular meeting, staff is preparing for a discussion about future funding for the Hopkins Center for the Arts. Since Tuesday night, I have met with staff from the Arts Center as well as the Finance Director. We are preparing for a discussion Tuesday night wherein we hope to accomplish the following agenda. 1. Clarify the financial status of the Arts Center 2. Provide an overview of the current usage and potential opportunities of the Center 3. Provide discussion materials outlining potential outside revenue sources, including those that have been detailed in the past. Due to the quick turnaround of this discussion, much of the material will need to be handed out Tuesday night. Attached are documents that have been presented to the Council in the past as background material. mayorcchcafunding , .. R venue Statistics - Food and B verage Tax Year 1995 1996 1997* 1998 1999* 2000* 2001* 2002* Sales $26,938,023.00 $28,796,191.00 $30,800,000.00 . $32,856,352.00 $34,800,000.00 $36,900,000.00 $39,000,000.00 $41,000,000.00 0.50% $134,690.12 $143,980.96 $154,000.00 $164,281.76 $174,000.00 $184,500.00 $195,000.00 $205,000.00 Note - * means the amount is estimated 1.00% $269,380.23 $287,961.91 $308,000.00 $328,563.52 $348,000.00 $369,000.00 $390,000.00 $410,000.00 . . -...-...-. RUG 29 '00 12: 08PM LEAGUE OF M~i C1TttS P.2 Senate ~,~.!:l~t_~_Counsel & Research -..-...........- ...-. ....-.----..,,-..........-- ~..: ; ~71";7"ft G-l';' s~~-: C~j:)IW:l '5- ~~'...:.. \IN :'S.~; :~.- -:t~ _~-;...':''' State of :\linnesota J.: A~,".e z::= s;:;._..: ~ o,;!:~.;. = ~ ::\,.NSE!. :l5-E~ S ....,~ r."50N _0....... C :!vll.eR aCNNIi; l. S5!"leZOV~l(Y ~.aN'eL. ~ \!CGOINolN 0(0\ TMI.l;/i'N 1;. :;IoJlmus ClEc~ae \1 MCCORMICK "'olNS I 5 3.iOFlNSON '(~T"'e~'Ne T CAVANOR ~~t:lISTOp~eA 8. S'T .lNQ , o<E:NNer... p BACK~US CAROL e SME:R ~OAN E. oJIfMITi olNt.! MARie euTI.ER i..e;GIS~ Tlve o\NAL YSTS "-"L.U"'" ~leMeRMAN OllvlD Glel. qANOAL s. MOVE CiI=ll:CiORV C '<NOj;l~~ ~4TRtCI( J MCCOAMACK ijANIEL l. MuELLS~ JACI( l:lAuLSON :rI~IS I.. ruANER ,\MV M. "ENNSWITZ ~I.AJA WEIDMANN " " TO: Members of the Sales Tax Advisory Council FROM' 10 Anne Zolf sellne~. Senate Counsel (296-3803 ))-J~ DATE.: July 22. 1996 RE: History of Local Sales Taxes Until recently~ Minnesota cities have imposed relatively few nonproperty taxes. but the last several years have ~een a noticeable increase in proposals to adopt various typ~s of these taxes. No MiMesota cities currently impose payroll or income ta.xes, A few cities have adopted local sales taxes. some general and some having limited tax bases. but this option is ,limited by state law. State law does pennit municipalities to adopt transient lodging taxes, with the proceeds to be used for ~ourism promotion. and to jrnpose .franchise fees on utilities. The following reviews the history of laws governing local sales and excise taxes as well as lodging tCQCes. By L 971, five Minnesota cities had adopted sales taxes imposed on limited bases. [n 1969. a spec!iallaw authorized Mlrmeapolis to impose a three percent sales tax on admissions. transient lodging, and .'aml:lsements" when live entenainm~~t is provided. referred to as a L~cabar~t tax." The proceeds of this t.~ cO.uld be spe~t for any city pl:Jrpose. In 1970, BloonUngton., Duluth. and St. Paul adopted three percent rransient lodging taxes by ordinance or charter amendments: the Bloomington tax also applied to admissions to spectator events. In 1971. Rochester adopted by charter and ordinance a three percent tax on transient lodging. . In 1971. the legislature enacted a prohibition against new or increased local (axes on sales or incolne. as pan of the local government aid foanula that was instituted that year. MiMesot.l Statutes. section 477 A.O 16. provides that "(n)o county. city. [own or other taxing authority shall increase a present tax or' impose a new tax on sal~s or income. .. Since th.en. new local sales taxes have been imposed only pursuant to specialla \~.s that enabled particular municipalities to impose a sales tax for a sp~citied purpose. 0r ~_. . . AUG 29 ' 121121 12: 1219PM LEAGUE OF MN C I TIES P.3 ..' . under the general law relating to the lodging tax. [n 1973. Duluth was authorized to impose a one percent general sales tax The law did not explicitly specify the distribution but a city ordinance provides (hat rhe proceeds must be split among the convention bureau. the Spirit ~fountain Recr~a(ion .-\rea.. and the city's depot project. [n 1977. the legislature permitted Duluth to impose an additional one percent [ax on food and beverages. with the proc~eds to be used .. tor facilities or agencies which are run by the governing body of the city" or by a board appointed by it. In 1979, both of these taxes were set to terminate as of December 3 1. 1980. In 1980. however. Duluth received renewed authority to continue to impose [he taxes. and to impose a one percent tax on transient lodging. with the proceeds to be used for tourism promotion in the Duluth area and for the Duluth auditorium and Spirit \-fountain.The authority for the one percent tax on restaurant food and drinks \\"as set in the. 1980 law to expire December 3 1. t 992, but it was extended indefinitely in 19C) l. In 1979, the legislature authorized the city of MiMeapolis. as the .site of the metropolitan sports stadium. to impose a tax on on-sale liquor and transient lodging. The rate of the tax was unspecified. but it was to be set at a level sufficient to pay debt service on the stadium bonds and operating expenses for the sports facilities to the extent that ot~er sports facilities commission revenues were inadequate. This .'blinker tax" \vas last imposed at a rate of twO percent in 1984, and has not been used since then because general revenues have been.adequate to meet expenses and debt service. [n 1986, [he city of Minneapolis received authorization to impose three types of taxes. with proceeds dedicated to the Minneapolis Convention Center: ( 1 ) a general sales and use tax at a rate of one-half of one percent: (2) an additional transient lodging ta.x on facilities \.\'lth more than SO rooms, authorized at a rate of up to ~hree percent, imposed at a rate of ~.5 percent~ and (3) a three percent ta.x on restaurant food and beverages served \\;ithin a defined downtown area.' In 1992. Minneapolis was authorized to spend some of the proceeds of its existing convention center sales tax for the support of neighborhood early learning centers. A 19791aw enabled St. Cloud to impose a tax at a rate of up ro three percent on transient lodging. This law does not provide any dedication of funds for a particular purpose, . In 1986. an additional two percent transient lodging (ax was permitted. together with :! one percent tax on on-sales of liquor and on sales of food and beverages at restaurants and Hplaces of refreshment:' The proceeds of the liquor and food taxes are dedicated to construction of. a 'convention center, and that ta."(ing authority e"pires \vhen the debt service on bonds issued for the convention center has been fully paid The proceeds of the lodging tax must be used to promote. operate, and maintain {he ., AUG 29 ~00 12:09PM LEAGUE OF MN CITIES P.4 convention center~ that tax is not set to expire. In 1983. the city of Rochester was authorized to impose a one percent general sales tax and a tax of up to $20 per vehicle sold at retail. The proceeds of the [ax ,\ ere to be used to pay for improvements to the city park and recreation system and tl('lod control improvements for which bonds were authorized at a city reterendum, The la\\ provided that after $16 million had been raised for each of those purposes. the taxes . \vould terminate'_ I:n 1989. the legislature authorized the Rochester city council to ~xtend the tax. with the proceeds to be used exclusively for flood control purposes. bue on1\' until December 3 t. L 992. [n 1992. the city of RocheSter was authorized to continue t~ ilnpose a general local sales and use tax at a reduced rate of one..half of one percent and an excise tax of $20 on motor vehicles. The city must use the proceeds to fund capital improvements of fire hall. city halt and public library facilities. The tax expires when the proceeds reach $28.76 m,illion.. The city is allowed ~o issue bonds to finance these projects. No refere~dum was required for Rochester because the city had already conducted a referendumauthori~ing issuance of the bonds. In 1986. the city of Bloomingron was authorized to'impose three taxes. \\w-ith the proceeds to be used for redevelopment of the former metropolitan ,stadium site. j e _ the ..megamall" project. The city would be permitted to designate the project areas as a special taxing district and impose a one percent sales tax on sales occurring there_ This tax was never implemented. and in 1987 the authorization for it was repealed by (he legislature. A lodging tax increase of two percent (in addition to the then existing three percent tax) was approved. as well as a five percent on-sale liquor tax, which. has been implemented at a three percent rate. The law defining the use of the proceeds of the liquor and lodging taxes is written in broad terms: afar debt service on bonds issued for highway improvelnents or citywide improvements and public services as authorized by la wand chaner." In 1990. the legislature authorize~. ,Bloomington to impose an additional one percent lodging tax to pay for the promotion of the metropolitan SpOrts are.a.. The city of St. Paul initially imposed its three percent lodging tax under its city charter in 1970~ at that time. one-half of the proceeds were earmarked for use for [he St Paul Civic Center Auditorium. In 1982. this tax was superseded by a state law tha.t also permitted a three percent lodging tax.. with at least 25 percent of the proceeds to be used for debt service on bonds issued to finance the civic center parking ramp. (n I '186. [h~ . legislature authori:ted the ciry to increase the lodging ta.x rate to five percent on facilities having 50 or mere roorns~ 95 percent of the proceeds raised by the additional t\\ 0 percent 'mus[ be used for a convention bureau. [n 1993. St. Paul was authorized to 3. -r--:--_.. .-.. AUG 29 '00-"-'12: 10PM LEAGU'E OF MN -C'ITIES P.5 impose an additional sales ~a"( of up tq one. half of One percent. The proceeds of the lax \\.'~re to be useci [0 pay tor the cost of expansion and remodeling of the Sc Paul Ci\'ic C enter Complex and "for capital projects to further residential. cultural. commercial. and economic development in both downtown St. Paul and St. Paul neighborhoods," This taxing authority was also set to expire when the debt incurred to finance the civic center expansion and remodeling was paid otI Unlike most of the new sales taxes authorized in recent years. the St. Paul sales tax law did not. include a provision requiring a referendum, so the sales tax was imposed by action of the St. Paul City Council. In 1991. the city of Mankato was authorized to impose a tax of up (0 one.half of one percent as we~1 as an excise tax of up to $20 'per motor vehi'cle, The proceeds of the taxes are required to be spent for the cost of constructing and operating facilities that are part of an urban revitalization project in downtown Mankato known as Riverfront 2000. The law requires the tax to expire when the principal and interest on bonds issued to finance construction of Riverfront 2000 and related facilities have been paid. The law permits the city to issue up to $25.000.000 in debt for this project. This taw included a reverse referendum provision. En 1996. the legislation authorized Mankato [0 use the [ax proceeds to pay for the rehabilitation, expansion, improvement. and operation of its municipal airport, . The city was allowed to issU'e bonds to pay for the airport work in an amount not to exceed $4.5 million without a referendum~' No more than SSOO.OOO per year may be spent on the airport from the bond proceeds plus sale~ tax revenues. In 1992. the ,city ofEly was authorized to impose a general local sales tax of one percent and an excise tax of $20 on motor vehicles sold in the city. The legislation required the c;:ty to use the proceeds to fund the Ely Wilderness Gateway Project. A referendum W:1S required by December 1. 1992. to impose the t~"l(.. and the tax \'ias set to ~xpire when the proceeds reached 520 million, When the referendum was conducted. the proposal vias defeated~ Also in 1992. the city of Thief River Falls was authorized to impose a general' local sales tax .of one-half of one percent and an excise tax of S20 on motor vehicles and on major faml equipment. as defined by the city council. The city was required to use the proceeds to fund the Thief River Falls Area Tourism Convention Facilities :\ referendum was required to impose the tax. and the tax was set to expire 'when Ihe proceeds reached $15 million. In 'View of opposition from city residents. the referendum was not conducted. Other more limited local taxes were also included in the 1992 omnibus tax bill' -l AUG 29 ' 00 12: 10PM LEAGlIE OF I'1N CITIES P.6 . Roseville was authorized to impose a two percent lodging tax [0 tinance 3 speed skating/bandy ice rink. subject to a referendum: the city has noe pursued [his authority to date. - Brooklyn Center was auth~rized to impose a one percent liquor and resrauranr tax co fund housing projects' if approved in a referendum~ because of unfavorable public reaction [0 the idea. rhe city council did not bring this issue before (he voters. In 1993. the legislature approved three local sales taxes. including the St. Paul ta.x described earlier. Cook-County was authorized to impose an additional sales tax of up to one percent. The proceeds from this tax were used. to pay. for the cost of expanding and irrlproving the North Shore Hospital~ including payment of debt service on bonds issued to finance the project.' The law provided that the total capital expendiNres for the project was limited to $4 million. and it was set to expire ",,'hen the debt service on the obligations issued to pay for [he hospital has been paid. The tax was approved by the voters in a referendum. The City of Garrison was also authorized in 1993 to impose a tax of up [0 one percent. -with the proceeds of the tax were to be used to pay for construction of a se\..'er system' in the city. This [axing authority is also set to expire when the bonds issued to pay for construction of the sewer system have been paid off The Garrison tax \vas subject to a referendum in the city. and it has not been imposed. In 1996. the city of Hermantown was authorized to impose a sales tax of up to one percent to pay for infrastructure development projects. including construction of a sewer interceptor line. water system improvements. and construction of a combined police and fire station. A referendum is required to impose the taX. . The city of Little Falls, was authorized in \996to impose a ta.~ of up to one..half of one percent on food and nonalcoholic beverages sold at restaurants and other places of refreshment. The. tax is set to expire IS years after it' is initially imposed The proceeds of the tax mus[ be used for tourism purposes. [n 1983. all cities were authorized to impose a local lodging tax at a rare of up (0 three percent. Cities that had imposed lodging [axes under pre-1972 authorization were prohibited Irom adopting additional ra.xes under the new authorization if the total lodging tax rate would exceed three percent. Ninety.five percent of the proceeds of the tax were to be used for convention or tourism bureaus. In 1985. [his authority '.."'a~ 5 --.. . . AUG 29 ,'0012: llPM LE8GUE OF MN CITIES P.? extended to towns and to counties acting on behalf of unorganized territories. In ll)Sq, the rare tor the general lodging tax was increased from three to six percent. \....ith on1\' the ti rs[ three percent dedicated to rourism promotion. but in 19QO the rate \'''a~ ah!:ain reduced to three percent. - , Several localities have sought authority to use lodging tax proceeds for purposes other than convenrionand tourist bureaus, including Bloomington. Duluth. ~1inneapolis. St. Paul. and St. Cloud as noted earlier. [n 1987. a special law enabled Cook Count\" to impose a tW9 percent lodging tax within the towns of Lutsen. Tofte. and Schroeder. if approved by the towns' voters. The proceeds of the tax were to be used for a "public . recreation facility" in the area. specifically a golf course. (n 1994. the city of T\\"o Harbors was authoriz.ed to impose a tax of up to one percent on ,lodging. \\..ith the proceeds of the tax to be used to provide preservation. display, and interpretation of the tug. boat "Edna G." The tax imposed under this special law. when combined \\:ith the regular lodging tax. was limited to a total of three percent. In 1991. the city of \Vinona was authorized to use one-half of the proceeds of its one percent lodging tax for support ofrhe Julius C. Wilke Steamboat Center: in t 995, the city was authorized to use one-half of the proceeds for other tourism-related expenditures after the debt service on (he steamboat center has been retired. Scott County received authorization in 1987 to impose a 25 cent per person admission'tax on major amusement facilities. defined as facilities that have a capaciry of at least 10.000 persons or have had a paid attendance of 10.000 or more persons on any day, The money goes to the Scott County road and'bridge fund. and is intended to pay the county's share of the cost of the Bloomington ferry bridge. This authorization \.~,:as repealed in 1996. lZS Jar 6 AUG 29 '00 12: llPM LEAGUE OF MN CITIES P.B Local Sales and lodging Taxes Currently Authorized by Specialla\~'s Ra.te Tax Base Bloomington: 6.00/0 Transient lodging 5.0%. liquor and beer 3.00/0 Admission to spectator events Cook County: 1.0% State sales [ax base 1..00/0 Transient lodging in Lutsen. Tofte and Schroeder Duluth: 1.00~ State sales tax base I .,00/0 Certain food and beverages 4.0% Transient lodging 6.00/0 Transi~nt lodging - 30 or more rooms Hermantown: t .00/0 State sales tax base (if approved by referendum in 1996) Little Falls: 0.5010 Certain food and beverages Mankato: 0.5% State sales tax base $20 Per motor vehicle sold at retail Minneapolis: 0.50/0 State sales tax base 3.0% Transient lodging 6.00/0 Tra~sient lodging - more than 50 rooms 3.0% Admissions. amusements, 'lodging 3 .00/0 Liquor and beer (downtown, on-sale only)" 3.00/0 Restaurant food (downtown) Rochester: 3.00/0 Transient lodging 0.5% State sales taX base (1 % before 1/1-/93) $20 Per motor vehicle sold at retail. St. Cloud: 5.00/0 Transient lodging 1. 00/0 Certain food and beverages St Paul: 0.50/0 State sales "tax base 3.00/Q Transient lodging 6.00/0 Transient" lodging - 50 or more rooms Two Harbors: 1 .00/0 Transient lodging Winona: 1 .00/0 Transient lodging Cnt , y Lea' Ash River (WlOrgjlft;7M territory) Austin Baudette ALi~ ~~ "00 12: 11PM LEAGUE OF MN CITIES . J ..;-- ;."='-. ~~E 13::e Minnesota Cities, TowtlS and Unorganized Tenitory Which ~mpGsf~ a LOOging Room Tax for Tourism Promotion. Cl1U 3 3 with On, Crane L~ & KabetOS8ma 3 3 with Lake of the Woods , (COUllty - Unorganized territor)') P.9 :;.2~ Purpos.elRestriction " . ( . . B=m~i 3 Bloomin&ron 6 Blue Earth 3 Brooklyn Center .6 BrooklyriPark 3 8umsville 3 Q1isbolm 3 Caledonia Towaabip 3 CarmiDo Townsbip 3 . CarroltcD TowDSbip 3 Coquet 1 ~ Chne Lake (unarzanize4 territory) 3 Detroit Lak.ea' 2 Duludl ' 6 E. Cin.nd Potts . 2 II: 2 Townships .~ Evelech 3 F~nl 3 Fatibault 3 Fergus Falla 3 Fountain 3 rountsiD ToWDSbip 3 Fridley 3 Grand Marais 3 GlaDd Rapids 3 GuDflitlt Trail 2 Humo~3 Hibbinl 3 Hill City 3 Hou1r.e Township 3 Houston 3 HutchiDsoG 2 lnt Pa11sI1s1anc1 View 2 Kabecopna (uaorpl\i2ed tmitar)')i 3 La Prairie, 3 Late of the Woods COUDt)' 3 auoorpUzed tm1tory) ~el~ 3 Little Falls 3 Lu~ 3 Mabel 3 . l~. 2.CAt shopping cen.ter 3 % city If . :: 3., City 3~. . . '. . . . with Scanlon · with Orr, Ash River & Kabetopma · . split between CVB-Depot-Spirit Mt City . . . Range wide ., . \ . . . . .. . . . . RaDge wide with Orand Rapids . . . . . wiIb Oft, Crane Lake " Ash River widt 0r8ad Rapids with Baudene . . . . . . wIth Schroeder &. Tofte l... 2,. golf :oune to Historic Bluff Country 4 AUG 29 '00 12: 12PM LEAGUE OF"MN CITIES P.10 . ^ . I_~-2~-:S~6 lJ:32 Manka[o 3 · Maple Grove 3 .. Maisl1a.ll "2 · Mirmcapolis 6 3%Ocy" 3% convention center (more the SO rooms) Montevideo 1 ~ · Moorhead 3 · Mountain Iron 3 Range wide .. Ne.w tJlm 3 .. Northfield 3 * North Mank.ato 3 with Ma.oka1o · Olivia 3 · On 3 * Osaki! ~ Townships 3 · Qwatoanl 3 · Park Rapids 3 · Pilot Mount ToWlUhip 3 · Pipestone 3 · ~IICll 3 ." Redwood PaUs 3 · RidUield 3 · Rochester 3 city * RUW~'3 · St. Coad 5 3~ CVB 2~ Convenrion Cc.ntcr 51. Paul "" 6 3~. (more than '0 rooms) 3 ~ City St. p~ 3 · Sauk Rapids 3 witb St. Goud · SCIDlID 1 trl with Coquet · Scbrocdcr 3 wilh Tofte &. Lutscn 1~. 2~ golf course S~~ 3 · Spang Grove 3 · Sugar Hi1Ja 3 Vlith Grand Rapids · Thief River Falls 2 II . Tofte 3 with Schroeder &: Lutset1 1~. 2$ Jolt coone . Tw'o HarbOrs 3 2,.. · 1" Tug Boat Virginia "3 Range wide · Waite Park 3 with SL Cloud · Willmlr 3 · Wmona 4 3 ~... -nCJt .G'I1W"'lm WorthiDgtca 2 Yi · 95~ of rec:ipc:s mtLIt be used to fund a Cooventioa &. Visitors Bureau 10 advertisc & promote me area u a visitoc andfc. c:oaveDlion ~l. # CiEy sUJ:1X>t1S Convcution '" .V....sitor Bureau (CVB). ; ,~ .C",_ ." . A~G 29 '121121 12: 12PM LEAGUE OF MN CITIES Minnesota Session Law~aPter 471 Sec. 30. [CITY OF LITTLE FALLS; TAX AUTHORIZED.] Sub~.~vi~.~.~n 1..::- [SALES OF rOOD; TAX.] Th~__._g.!_!'y' -2.L~ittJe ralls .~.frLg.rdin~nce Jrnpos~t.ax of on€_-ha~.U~E~ent_...Qn....th~ 9ros~_ r~~eip~s f';:.C2!!L!.he r~~ail .:5a1,?_.,Qi..-190d ~~d l]9nal_coho~.ic ~~'yera~.sold .~~,~erato;t" of..~a re.stau~a!}.!.. .,~lace q.f ref:r;_~sh~.ent .Y.ii th~n t12.e. ci ty-=--!~e t.ax i~EO~~q. ma~{,J?~'L..effec~~y~ ~_~.~._.tim~.. aft.~r Jl.':1.:L~.I~h ~1ft>d .,..1..:. [DEFIN1'l'IONS. 1 Fo:t;.~r.p..?se~__~~hi~....~!::ion ;. JJ.J.... "re.~tau.;:ant n._ meaI:lS ev.er.Y....f?uildJ..~.9r ~,~.r-er_. str~cture_ or ~!}clo.sur~.,_...Q;: _.any _~trt, thef~of?nd _all_builcting~ in ~onne.~tion.,_ ~e.p~'dse(L_or ~!1).n!;:~l~ned as, .or ~eJd _out to th~_~lic. to p~ an enclQsure ..~heE.~~?L~.9r l~~che.~-2!~. se~'yed o...!'-2fepar,~d ~9r servic~.els~wh~F_~!.~cep.:t schools).. 1.21~tac~~ of }:efreshrn~n.~~~~.. .eve!.yb\lild:.j.ML structur~ vehicle,t. sigewal.k c(~.~t o.r. any.._pa.t".t th.~_~eo0~~~d ~.~L._roa:i!!.~..~ine~ !.~..2..r adv:.ert;.sed ..?_~or held ,?ut to.. be.~,E..1C[i~..whe~,e con;eecti.oner:.YL-i..~e l~rearnf,_ or drinK~...2f va:r;)..ous kiqc!s.._ are ma_de, ~old, _..QLs.~rve..? at:,.;ret~il,... ~xcep.tin9 schpol~... and ~.ho91 ~~f!d eyent~~:qg J].L~,~.f.a't:l?r" .~eans the~.s.on_t.:Jho i2-~~;r.oprtetor..2i :the res't:~ura}?:!L...QI_e!.ace of :;-efre:~hmel!-h_~het_h_er in ~he c~Eac.i t-Y, Q.~_..~:...~!esse.~,_."~uble?ses ,.-.l...~s:ense,eL-2r a~ ~..oth_er c.a.pac~~~ Sul?~.:.. [USE OF PROCEEDS.) Th~. ordina~cL~dop~ed b~!.. ci ~y. shall p~ovi.9i=_...~9.i qistribut.i.g!l-.~f th~-2F.oce~ds 9f ttt.e tax. The pf.9Cee9-s qt.. th~._t;~2. must b~ used f9.r tQuri~~qrpo~e5 '. incl uding-22~.!= a t i.!l9~~I}~_~.i.D_t~.ini.D.,9-..1lf~~t i '!J t i~s an.:~~oqr~~ of_~he J:o~;:..ism ..El!-..Q....s:onyen~~.ion b..~r~2:Y.:~ s~q~~~ (ENFORCEMENT, COLLECTION. AND ADMINISTRATION OF TAXES. J The... tax .~_9.~ed ,~nde:;:_'t;.r1.~~?~~_t~.9lL~.hal~. be. enf~9~9.:.,- ~dminJst~.fed,... an(~Ls..?..11ect~d b~hE;_Ci.t)~9f. Lit:tl_~.. Fa~1.~p"rovided ,!=ha1; th~_ ci~~.u~C?ntra~t_~.ith ..,i;k ~o~Jssion~r of_~~venue...!.Q. p"'~.~fo;Jtl a~9-i ts_.J2L.the .tax _~p~ha~.f of...-!h~. ci.t.y. Thl? co~iss!oner_ sh~~_~harg~_t.t1.e c.t.iL?-~ount that....~quals t~ gir.ect ..' and_..in~.i:reci:. cO,~t.9 incu...~req l2.Y....the. dep<!.rt~e.nt 1;h~t. are. nece~.sarY-!2.. aud~!..~he t.9-x. Subd. 5. (EXPIPATION OF TAXING AUTHORITY.) The tax imp-osed ~.nder .. t'hi.s s.~cti~~...~r.,all. e~~ire ~2-Years aft~r ~ t" f~rst be~.omes effective. --.' Sub'd':-6. (EFFE:TIVE DA.TE.] This section is effective the day -fo.~lowing ..col!lP}_ia~fe ~~~9~e-rnig~LbO?V of the city' C?;' ~itt;.le E:~ll~.~~3=1L~,~nne.sota statu!:~~-L-~ect~on 645~021l.. ~.~pdiyisi9n 3_~_ http://www.revisor.leg.state.mn.us/slaws/1996/c411.html P.ll Page 1 of 1 8/29/00 RUG 29 '00 12: 12PM LEAGUE OF MNCITIES Minnesota Session Laws~hapter 389 Sec. 25. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, chapter 291, article 8, section 22, is amended to read: Subd. 2. Notwithstanding Minnesota Statutes, Section ~.,.,~ <)1, $:lJ~~n"'j fi;i~R le ~}7A. Ol:~, or any other law, ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an additional sales tax of up to one and one-half oercent on sales transactions which are _.---- ~ described in Minnescta Statutes, Section 297A.Ol, Subdivision 3, Clause (c). When tt~. ci ty c.2.~n9il_get~:r!l'ine.?_tll.a.:t_ th~ .~.~~e~ impos~.fLY.!1der .tpis _~.ubdi-,y"'isio..n and.unde:r::__se.c_+':ion_.26.al~;at~.. ot 9~e.,-half of one per(~.Ilt h~T~1;'~duc_ed::-ev~nue ._suf~icie.t:lt t<? p~ ~he debt s,?rV'i9.~ on_,.bond,9i in cLJ?_r,;Lncipa~ alTlQunt. ,of $}, 000 r....900 sinqe tr..~ imEosi t:i;or~9..f the.tax~s a_t the. rate 9L9Ele ~n~ one-h~1..LPerceIl~~~_~te-2..f th~.. tax .ll.!l.c!..~r th~,.;5 supdivi.~..~.C?~, ~~. red:uced ,to oJl~;:',cent.~ The imposition of this tax shall not be subj ect to voter rej:erendum under. either state law or city charter provisions. Sec. 26. Laws 1980, chapter 511, section 2, is amended to read: Sec. 2. [CITY o:'~ DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS. ] Notwithstanding Minnesota Statutes, Section 477~ 01, ~'wdi,nj FisVl 1i 4 77Fj" 016, or any other lav.7, or ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an additional tax of one ~~~_one-h~lf percent upon the gross receipts from the sale of lodging for periods of less than 30 days in hotels and motels loca~€d in the city. ~hen. the S~i t.y .~ou!}c:;il. dete;rmines th_~t;_.'t:h~ t21.xes. im"p~,~ed ~.nderthi~_,.. sec~ion ,and ~ectton. 25 a~_3__rate gf ~Ile-h~lf,.. .0; one;, p'er~.e!lt ~~ve ..Erod_uced _reV'~.rl1...e s_uff.is:ie_n1;---.to-12.~ th~..._c;l.~l;:>:t. service 9n b.g,nds, in a,.~nci...t?_~l a.~_ount of ~~~o~oo s,tnce,~.the ,~:r!lQosi.tion,. of t;hetaxe~_~the r9-te ,of oq,e aI)d oI).e-h~li..P~rcenh the .rate ~he !:a~~~.rde:t;_ thi~~1:io1}~.red~9.ed_to ope 2~~~ent~ The tax ~:hall be collected in the same manner as the tag set forth in the Duluth city charter, section 54(d), paragraph one. ThE! imposition of this tax shall not be subject to voter referendur.:\ under either state law or city charter provisions. Sec. 27. Laws 1980, chapter 511, section 3, is amended to read: Sec. 3. [ALLOCATION OF REVENUES.] Revenues received from the taxes authori~ed by section 1, ~ubdivision 2, and section 2 shall be used to pay for activities conducted by the cJ.ty or by otf.er organizations \olhich promote tourism in the city of Duluth, inc~ud~nSL.capital ~Il!E!..~vements .of tou.ris~ fac.ilities.( and to subsidize the Duluth Arena-AuditoriuIn and the Spirit Mountain recreation authority. Distribution of. the revenues derived from 'these ta:~es sha 11 be approved by the Duluth cj.,ty council at lea.st once annually, may _inc:lud~ plec;lqing su~,p. re.vem~,~to ...f~-P:ri!1cip.al oJ. anq int,er:est on.._ ci_~Y....2F ,Dul':lth bonqs. is~ued.~.!inan~~' su_~t;~.~m ~.?icilJti~~ and shall be made in accordance w~th the policy set forth in this section. Sec. 28. Laws 1991, chapter 291, article S, section 27, subdivision 3" is amended to read: Subd. 3. [USE OF REVENUES.) Revenues received from ta~es authorized by subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a portion of the expenses o:E constructing and operating facilities as part of an urban reviti3.1ization project in downtown Mankato known as http://www.revisor.1eg.state.mn.us/slaws/1998/c3 89 .html P P. 122 age 1 or , 8/29/00 -" A~G 29 'l2Il21 12: 13PM LEAGUE OF MN CITIES Minnesota Session Laws 1998, Chapter 389 Riverfront 2000. Authorized expenses include, but are not limited to, acquiring property and paying relocation expenses related to the development of Riverfront 2000 and related facilities, and securing or paying debt service on bonds or other obligations issued to" finance the construction of Riverfront 2000 and related facilities. For purposes of this section, "River~ront 2000 and relat~d facilities" means a civic-convention center, an arena, a riverfront park, ~ technolo,9Y.S~nter and relat5?,g. e~~s~]:.ion~l f~cil.i tiesJ_ a.nd all publicly owned real or pe:rsona1 propert~:{ that the governing body of the city determines will be necessary to facilitate the use of these facilities, including but 'not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. Sec. 29. Laws 1992, chapter 511, article 8, section 33, subdivision 5, is ~nended to read: Subd. 5. [TERMINATION OF TAXES.] The taxes imposed pursuant to subdivisions 1 and 2 shall terminate at J:he ,;1.at~,L-.Q.~ _Ll)~~~e~~er ~ J9~~L-2~~"L on the first day of the second month next succeeding a determination by the city council that sufficient funds have been received from the taxes to finance capi tal and administrati~J"e costs of $28, 760,000 tor improvements for fire station, city hall, and public library facilities and to p~epay or retire at maturity the principal, interest, and premium due on any bondS issued for the improvements. Any funds remaining after completion of the improvements and retirement or redemption of the bonds may be placed in the general fund of the city. http://www.revisor.leg.state.m.n.us/slavvsIl998/c389.html P.13 Page 2 of2 8/29/00 12: 13PM LEAGUE OF 11r~ CITIES ; 1 4(i9.1~7 )i:CONOMIC OEVELOPMENT II P.14 I I : 1 ! : shall be expended in the manner and for the city publicity purposes the council directs. The ccuncil may establish and provide for a publicity board or bureau to administer the fund, sub- ject to the conditions and limi[ations the council prescribes by ordinance. History: 1987 c 291 s 188; 1988 c 719 an 5 s 84: 1989 C 277 art 4 s 66 469.188 TAX FOR ADVERTISING RESOURCES; CITIES O}-' S.:COND OR THIRD CLASS. The govemingbody of any city of the second or third class in this Slate may levy a tax f(}r the: purpose of advertising agricultural, industrial business, and all other reSOurces of the community. History: 1987 c 291 s 189; 1989c 277 art 4 s 67: 1994 c 505 art 4 s 5 469.189 APPROPRIATION FOR ADVERTISING PURPOSES; S"fATUTORY AND FOURTH CLASS CITIES. The governing body of any statutory city or home rule charter ciLy of the second. third, or 1uurth class may annually appropriate money to advertise the municipality and its re. sou.rces and,advantages. The money appropriated sh8.11 be used only to advertise 'the mUnici~ palit.y, or for cooperative programs of promo~6n for tbe area by more than one municipality and'lts resourceS and advantages. History: 1987 c 216 s 2; 1987 c 291 s 190,243 469.190 LOCAL LODGING TAX. Subdivision 1. Authorization. Notwithstanding section 477A.016 or any other law, a statutory or home rule charter city may by ordinance, and a town may by the affirmati ve vote of the electors at the annual town meeting, or at aspeci~ ~~wn meeting, impose a tax of up to three percent on the gross receipts from the fumisping for co~sideration of lodging at a hotel, motel, rooming house, tourist court, orresort, o~er thari the renting or leasing of it for a con- tinuous period of 30 days or more. A statutory or home role char:ter city may by ordinance imp(tse the tax authorized under this subdivision on Ule camping sit~ receipts ofa municipal campground, . S ubd. 2. ,Existing taxes. Nos ratutory or home rule charter city Qr town may impose a tax under this section upon transient lodging that~ when combined widl any tax authorized by special law or enacted prior to 1972, exceeds a rare of three percent. Subd. 3. Disposition of proceed..~. Ninety-five percent of the gross proceeds..from any tax imposed under subdivision 1 shall be used by the statutory or home rule chaner city 01' town to fund a local convemion or tourism bureau for the purpose of marketing and promot- ing the city or town as a tourist or convemion center. This subdivision shalI not apply to any statutory or home rule charter city or town that has a lodging tax authorized by special Jawor enactr~d prior to 1972 at the time of enactment of chis section. Subd. 4. Unorganizedterritorics. A county board ac~i~g,as a tow~ board with respect to an unorganized territory may impose a lodging tax within the .unorganized territory ac- cordiugto this section ifirdetennines by resolution that imposi[ion.ofthe tax is in tbe public interest. Subd. 5. Reverse referendum. If the county board passes a resolution under subdivi. sion 4 to impose the tax., the resolution must be published for two successive weeks in a news- paper of general circulation within the unorganized territory, together with a notice fixing a date for a public hearing on the proposed tax. The hearing must be held not less than two weeks nor more than four. weeks .after the flfSt publication of the notice. After the public hearing, the county board may determine to rake no further action. or may adopt a resolution authorizing the ta'l. as originally proposed or approving a lesser rate of C:,\;t;.. The resol.ution must be published in a newspaper of general circulation within the unorganized territory. The voters of the unorganized territory may re- quest a referendum on the proposed tax by filing a petirion with the county auditor within 30 days after the resolution is published. The petition must be signed by.. voters who reside in the unorganized territory. The number of signatures mU$tequal at least.fjv~.pc~en~ of~he num- 1l4K RUG 29'1210 12;'14PM ~IE I::)r- r'1N CITIES . 1149 ECONOMIC DEVELOPMENT 469.20] be.rsons voting in the unorganized territory in the last generalelecdon. If such a petition is u y filed, the resolution is nor effecti ve until it has been submitted to the voters residing in the unorganized territory at a general or special election and a majority of votes cast on the quesrion of approving the resolution are in the affirmative. The commissioner of revenue shall prepare a suggested form of question to be presented at the referendum. Subd. 6. Joint powers agreements. Any statutory or home rule cbarter city, town, or county when the county board is acting as a town board with respect [0 an unorganized terri- tory, may enter into a joint exercise of powers agl'{~ement pursuant to section 471.59 for the purpose of imposing the tax. and disposing of its proceeds pursuant (0 this section, Subd, 7, Collection. The statutory or home rule charter city may agree with [he commis- sioner of revenue that a tax imposed pursuant to this seclio.n shall be collected by the commis- sioner together with the tax imposed by chapter 297 A, and subject to the same interest, penal- ties~ and other rules and that its proceeds, less the cost of collection, shall be remitted to the city. History: 1987 c 291 s 191; 1989 c 277 art 1 s 30; lSp1989 c 1 arc 8 s 1-3; 1990 c 604 art 6 s 6-8 ., 46~.191 CONTRIBUTIONS TO REGIONAL OR LOCAL ORGANIZATIONS. A home rule or sta,tutory city or town described in secuon 368.01. subdivision 1 or l,a, may appropriate not mOJ;c than $50,000 annually our of the general revenu~ fund of the juris- diction to be paid to any incorpomted development society or organization of this state for promoting, advertising, improving, or developing the economic and agricultural resources of the ciryor town. History; 1989 c 1 q5 s 1 469.191 ECONOMIC DEVELOPMENT I..OANS.' , A statUtory city, a home rule chaner ci ty, an economic development authority, a housing _development authority, or a port authority may make a loan to a business, a for-profit nprofit organization, or an individual for any purpose that theerttity is otherwi~eautho- rized (0 cany our under sections 116J.415, 469,001 to 469.068, 469.090 to 469,1081, 469.124 ro 469.134,4~9,152 to 469.165, or any special law. . History: 1994 c614 s 12: 1996 c 369 s 12 " TARGETED NEIGHBORHOOD REVITALIZATIONPROGRA~IS 469..201 DEFINITIONS. Subdivision 1. Applicability. The definitions in this section apply to sections 469.201 to 469.207. ' Subd. 2.1 City. \\City" means a city ofthefir~~class as defined in secrion 410.01 and a city of the second class that is designated as an economically depressed area by the United States Department of Commerce. For each city, a port authority, housing and redevelopment au- thority, or otberagency or instcumentali lY, the jurisdiction of which is theterritot)' of the city, is included within the meaning of city. . Subd. 3. City council. HCity council" means me city council of a city as defined in sub- division 2. Subd. 4. City matching money. (a) "City matching money" means the money of a city spt"...cified in a revitalization program. The sonrces of city matching money may include: . (1) money from the general fund or a special fund of a city used Co implement a revital- ization program; (2) money paid or repaid to a city front ':he proceeds of a grant that a ci~y has, re~e~ved from the federal government, a profit Qr nonprofi[ cOI'pQration, 01' another cn[j[Y or mdIVldu- al. that is to be used to implement a revitalization program; (3) tax increments received by a chy under sections 469.174 to 469.179 or other law, if elig~ble~ to be spent in the targeted neighborhood;