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Memo - Revenue For Public Art ~t..4 IAdministration Department To: Steve Mielke Copy: n.a. From: Jim Parsons G<9~ (~ .. ~...d~ {.,. ~vJo <, ~d.' '<-<-- H(!,4 Of4o.... s bv~ycl-. ~ F:.t.,d-~ io f'r !~IA:. 1) /2S-tSD K - f-. P4~CS ;? ) f1o-r{~ tl.J'- ~OD Ie Memorandum Date: Subject: March. 21, 2000 Revenue for Public Art in Hopkins Background and Goals The City of Hopkins continues to explore ways to fund community arts in Hopkins. This effort is a consequence of the development by the City of the Hopkins Center for the Arts. The City may address a number of potential goals in this effort: ~ Beautifying public property and public spaces in Hopkins; ~ Fostering arts activities in the community; IS Encouraging grants and private donations to the arts in Hopkins; /& Paying off remaining debt from the construction of the Hopkins Center for the Arts. Possible Revenue Sources Many cities and states across the country have created and funded public arts programs. Over 25 states including Minnesota have passed laws calling for a certain percentage of capital spending on state projects to be allocated for public art. The City of Cambridge, Massachusetts, was one of the first cities in the U. S. to pass a "Percent for Art" ordinance in 1978. Today nearly 100 American cities have public art programs. Most of these programs are funded in large part by a commitment of city capital spending to arts projects and programs (typically 1 % to 20,{, of capital budgets). In some cases, private donations or fees and taxes levied on private companies comprise a significant revenue source for public arts. 1 't The City of Hopkins has begun to look at the following possible revenue sources for public arts projects and activities in the com~unity: .. . Percent for Art: allocation of city capital spending for the arts; E& City charter amendment to allow use of parkland dedication fees for the arts; ED Tax on new construction. The City of Los Angeles and others have levied taxes on new development to raise funds for public arts (often non-residential development only). Special state legislation is req!:Jired for such a city tax in Minnesota. Percent for Art State and local governments that spend a percentage of their capital budgets to public art typically devote 0.5% to 2.5% for that purpose. The percentage for public art is usually added to budgets for new or remodeled buildings, but not to budgets for land or equipment. In Minnesota, state law Chap. 168.35 calls for budgets for any state building to includB up to one percent for art in that building. The artwork is to be exhibited. in areas of the building or grounds that are regularly accessible to the public. Spending for public art under this law may not include landscaping. The following table shows percentages for public art in ~ajor cities around the U.S. Percent for Art Austin, Texas 1 Broward County, Florida (Fort Lauderdale) 2 Dallas 0.75 - 1.5 Denver 1 Kansas City 1 Los Angeles 1 Miami 1.5 New York City O.~ - 1 Philadelphia 1 Phoenix up to 1 Portland 1.33 San Antonio 1 San Diego case by case San Francisco 2 Seattle 1 Phoenix, which passed a percent for art ordinance in 1986, created a public art master plan that divided the city into a number of "urban design systems" and public art Ilworking zones." Phoenix has completed approximately 45 public art projects since 1989, ranging from a memorial to city employees who have lost their lives in the line of duty, to a large, playground sculpture in the form of a well-known toy. 2 In San Antonio, the municipal percent for art is supplemented by a hotel/motel tax and state and federal funds. · Albuquerque's public art program receives funding from many sources, including One Percent for Art, revenue bonds, state legislative appropriations, a special arts trust fund and numerous organizations, businesses and individuals. In Broward County, Florida (Fort Lauderdale), the commitment for public art is 2% of total eligible construction costs for capital improvements such as buildings, and 1 % of total eligible construction costs for highway and arterial road projects. These funds are supplemented by automobile license plate fees through an innovative state program. The State of Florida offers a vanity license plate for the arts; a portion of the fee for the plate goes to the resident's community for public art. For every arts vanity plate sold in Broward County, $20 is returned to the Broward cultural affairs office for public arts programming. Parkland Dedication The Hopkins city attorney has indicated that the City Council could, through an amendment to its ordinance, devote parkland dedication fee revenues to public art including specifically the Hopkins Center for the Arts. This is a local policy issue; existing law gives the City Council the authority to make this decision. Tax on New Construction: Los Angeles In 1989, the City of Los Angeles adopted a percent for art program and enacted a tax on new, private construction, called the arts development fee. The fee applies to any private, non-residential construction over $500,000. It may be satisfied either through a cash payment equal to, or an arts project costing no more than, one percent of the valuation of the construction project. Certain construction projects are exempt from the arts fee, such as fire sprinkler installation, earthquake protection and handicapped access work. The in-kind methods of satisfying the arts fee requirement can be quite varied. They can include function~1 elements such as grates, lights and benches that are originally designed by. an artist for unique or limited editions. Los Angeles requires developers to pay the arts development fee or obtain a waiver from its cultural affairs department before the, City will issue a building permit. A developer who opts to satisfy the arts fee requirement by developing an art project or program must sign an agreement with the City in order to obtain a waiver. The agreement includes financial security binding the developer to pay the cost of the art project. The City appears to be very flexible in the kinds of arts projects it will accept as in-kind satisfaction of the arts fee requirement. Funds raised via the arts development fee are placed in a special account, and may only be expended with the approval of the Los Angeles City Council. The City is committed to using the funds in accordance with its cultural master plan and guidelines established by city code. 3 More information on the Los Angeles program is on the Web at www.culturela.org/deptl public_artlpubart.htm; excerpts are attached. Tax on New Construction: Hopkins As noted above, any tax on new construction or arts development fee in Hopkins would require special authorizing legislation from the Minnesota Legislature. Based on past levels of commercial/industrial construction in Hopkins, a one percent tax on non-residential construction would generate $50,000 to $100,000 per year. Certain construction projects or project costs would likely be exempt, such as: @ Projects with a permitted valuation of a certain dollar amount or less; @ Projects that do not alter the size or occupancy load of the building; o Fire sprinkler installation; (& Flood-proofing; o Project costs that bring a building into compliance with handicapped accessibility laws and codes. The tax would be implemented via a building permit surcharge. To allow for in-kind art projects to satisfy the required tax, the City would have to create policies and procedures governing that process. Authority to spend funds generated by the arts tax would rest with the City Council. The Council would likely create or empower an advisory board to form recommendations about how to spend funds received. One of the City's goals is to pay the remaining debt on the Hopkins Center for the Arts, which is approximately $150,000. The City would wish to ensure that funds generated by the art tax could be spent on debt retirement for the arts center. Outline of Special legislation I. Authorization. The law would authorize the City of Hopkins to impose by ordinance a tax of a certain percent on the permitted valuation of new, private, non-residental construction. II. Disposition of proceeds. The law would state that all funds raised by the tax would have to be spent for public art projects and programs. .Allowable expenditures would include payment of the remaining debt on the Hopkins Center for the Arts. III. Public hearinQ. The law might stipulate certain public hearing requirements for the City. IV. Reportina reauirements. The law might require the City to report on collections and other details of the new tax to the Minnesota commissioner of revenue. 4 Attachments Minn. Stat. 168.35 Art in State Buildings 6) Minn. Stat. 469.190 Local Lodging Tax 4) Minn. Stat. 473.592 Subd. 1 Local Sales Tax (Minneapolis) City of Los Angeles Public Art Program e City of Albuquerque Public Art Program o City of Austin, Texas, Art in Public P'~ces Program . Broward County, Florida, Public Art and Design Program . City of Phoenix Public Art Program . City of Portland, Oregon Public Art Program e City of San Antonio Office of Cultural Affairs 5 168.335 DEPARTMENT OF ADMINISTRATION enable an agency to reduce its need for office space, provide more of its services electronical- ly, and decentralize its operations. The information policy office must review and approve the information technology portion of construction and major remodeling program plans be- fore the plans are submitted to the chairs of the senate fmance committee and the house of representatives ways and means committee for their rec9mmendations and the chair of the house of representatives capital investment committee is notified as required by subdivision 1. ' Subd. 6. Information technology r~view precondition. No state agency or depart- ment shall propose and the legislature shall not consider building or relocation projects with- out reviewing implications of utilizing information technology on space utilization. History~ 1989 c 300 an1 s 27; 1990 c 591 art 6 s 1; 1990 c 610 art 1 s 42; 1992 c 513 an4 s 23; 1993 c4 s 11; 1994 c 643 s 42-45; lSp1995 c 2 an1 s 24-26; 1996 c463 s 35 16B.34 INMATE LABOR. At a state institution or state park or in the maintenance of a state armory, an appropri- ation for construction, improvements, or maintenance may be expended through the use of inmate or project labor when authorized by the commissioner with the concurrence of the head of the interested state department. History: 1984 c 544 s 39 16B.35 ART IN STATE BUILDINGS. Subdivision 1. Percent of appropriations for art. An appropriation for the construc:- tion or alteration of any state building may contain an amount not to exceed one percent of th~ total appropriation for the building for the acquisition of works of art, excluding landscaping, which may be an integral part of the building or its grounds, attached to the building or grounds or capable of being displayed in other state buildings. Money used for this purpose.is available only for the acquisition of works of art to be exhibited in areas of a building or Its grounds accessible, on a regular basis, to members of the public. For the purposes of this sec- tion "state building" means a building the construction or alteration of which is paid for wholly or in part by the state. Subd. 2. Exempt h1l11ftJldiilOlgs. A building for which the appropriation is less than $500,000 for construction or alteration or a building for which the commissioner of adminis- tration has determined that tins section is inappropriate is exempt from the requirements of this section. Subd. 3. Unused funds. If an amount made available under subdivision 1 is not ex- pendedfor works of art for the building, the unexpended portion is available to the Minnesota board of the arts for the commission or purchase of works of art for state buildings existing or for which an appropriation was made prior to June 15, 1983, and is not available to pay construction costs of the building. - Subd. 4. Campuses. Art for a building on a public college or university campus shall be selected by the campus, in consultation with the arts board. Consideration of the artwork of faculty and students on that campus is encouraged. History: 1984 c 544 s 40; 1996 c 398 s 11 SERVICES TO STATE AGENCIES 168.36 INVESTIGATIONS. Subdivision 1. Authority. The conunissioner may examine, investigate, or make a sur- vey of the organization, administration, and management of state agencies and institutions under their control, and may assist state agencies by providing analytical, statistical, and or- ganizational development services to them in order to secure greater efficiency and ec~no~Y through reorganization or consolidation of agencies or functions and to eliminate duphcatlO~ of function, effort or activity, so far as possible. The commissioner shall periodically subITllt 546 547 to the legislature a list of the ~ scheduled at the time the list colleges and universities is a Subd. 2. Hearings. The sary changes in the laws of tl order to secure a better organi my in administration. For thi: poenas for and compel the at1 tion of books, records, accou History: 1984 c 544 s ., 12 16B.37 REORGANIZATII Subdivision 1. Commi~ rion, the commissioner may them, from a state agency to year prior to the date of transJ eroor. The commissioner shal bill making all statutory cha: sioner during the preceding ( colleges and universities is a Subd. 2. Reorganizati( the form of a reorganization ( chairs of the governmental ( senate at least 30 days befon must be filed with the secreta ly. An order is effective upc amended or superseded. Cop sioner to the secretary of the mental operations committel order which transfers all or s ment, the housing finance a! ratified by concurrent resolu Subd. 3. Appropriatio part of the appropriation to t sonnel, power, or duty, and t agency. Subd. 4. Work of depa: cy, the commissioner may d division or section of an age agency and shall require rf agency are reappropriated to the transfer warrant procedl Subd. 5. Employees as the heads of the department employee of a department 01 der another department or a, History: 1984 c 544 s 16B.38 DISSOLVED OR The commissioner shal ~hich has been temporarily mclude but are not limited t< pended agency including pa: property of the agency; and, pended, serving as its chief, 1I 12 nlOndS by reason of a p edge or mortgage on ich the bonds are issued ~solution to be necessary s, and they shall so state ; other than the revenues issuing city be subject to ,ay the bonds from funds io holder of the bonds or King power of the issuing he bonds or obligations, other public body other londs or obligations may Jrdance with a program, ~rest on them, Doney derived from loan 1ges securing loans made ;eived under them to the l, may make other cove- eemed necessary for the its rights under the mort- lISt for this purpose, con- sw considered neces- ody of the city shall not . any bonds or obligations 'f of the bonds or obliga- lublic sale. at the price or lse purchase, or other in- this section. ;;TJRY AND ElvlPLUl{... ~d by the grant, may eon- ote industry and provide ;TATUTORY CITIES. l a bureau of information d for outdoor advertising ets concerning the recre- ununity. OARD; FIRST CLASS y purposes. The city may TioceedS of the levy 1113 ECONOMIC DEVELOPMENT 469.190 shall be expended in the manner and for. the city publicity purposes the council directs. The council may establish and provide for a publicity board or bureau to administer the fund, sub- ject to the conditions and limitations the council prescribes by ordinance. History: 1987 c 291 s 188; 1988 c 719 art 5 s 84; 1989 c 277 art 4 s 66 469.188 TAX FOR ADVERTISING RESOURCES; CITiES OF SECOND OR THIRD CLASS. The governing body .of any city of the second or third class in this state may levy a tax for the purpose of advertising agricultural, industrial business, and all other resources of the community. History: 1987 c 291 s 189; 1989 c 277 art 4 s 67; 1994 c 505 art 4 s 5 469.189 APPROPRIATION FOR ADVERTISING PURPOSES; STATUTORY Al'!D FOURTH CLASS CITIES. The governing body of any statutory city or home rule charter city of the second, third, or fourth class may annually appropriate money to advertise the municipality and its re- sources and advantages. The money appropriated shall be used only to advertise the munici- pality or for cooperative programs of promotion for the area by more than one municipality and its 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 477 A.016 or any other law, a statutory or home rule charter city may by ordinance, and a town may by the affirmative vote of the electors at the annual town meeting, or at a special town meeting, impose a tax of up to three percent on the gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or reso~ other than the renting or leasing of it for a con- tinuous period of 30 days or more. A statutory or home rule charter city may by ordinance impose the tax authorized under this subdivision on the camping site receipts of a municipal campground. Subd. 2. Existing taxes. No statutory or home rule charter city or town may impose a tax under this section upon transient lodging that, when combined with any tax authorized by special law or enacted prior to 1972, exceeds a rate of three percent. Subd. 3. Disposition of proceeds. Ninety-five percent of the gross proceeds from any tax imposed under subdivision 1 shall be used by the statutory or home rule charter city or town to fund a local convention or tourism bureau for the purpose of marketing and promot- ing the city or town as a tourist or convention center. This subdivision shall not apply to any statutory or home rule charter city or town that has a lodging tax authorized by special law or enacted prior to 1972 at the time of enactment of this section. Subd. 4. Unorganized territories. A county board acting as a town board with respect to an unorganized territory may impose a lodging tax within the unorganized territory ac- cording to this section if it detennines by resolution that imposition of the tax is in the 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 fIrst publication of the notice. Mter the public hearing, the county board may determine to take no further action, or may adopt a resolution authorizing the tax as originally proposed or approving a lesser rate of tax. The resolution must be published in a newspaper of general circulation within the unorganized territory. The voters of tre unorganized territory may re- quest a referendum on the proposed tax by filing a petition 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 must equal at least five percent of the num- 469.190 ECONOMIC DEVELOPMENT 1114 ber of persons voting in the unorganized territory in the last general election. If such a petition is timely filed, the resolution is not effective until it has bee~ submitted to the voters residing in the unorganized territory at a general or special election and a majOlity of votes cast on the question 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 charter city, town, or county when the county board is acting as a town board with respect to an unorganized terri- tory, may enter into a joint exercise of powers agreement pursuant to section 471.59 for the purpose of imposing the tax and disposing of its proceeds pursuant to this section. Subd. 7. Collection. The statutory or home rule charter city may agree with the commis- sioner of revenue that a tax imposed pursuant to this section 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; 1Sp1989 c 1 art 8 s 1-3; 1990 c 604 art 6 s 6-8 469.191 CONTRIBUTIONS TO REGIONAL OR LOCAL ORGANIZATIONS. A home rule or statutory city or town described in section 368.01, subdivision 1 or la, may appropriate not more than $50,000 annually out of the general revenue fund of the juris- diction to be paid to any incorporated development society or organization of this state for promoting, advertising, improving, or developing the economic and agricultural resources of the city or town. History: 1989 c 165 s 1 469.192 ECONOMIC DJEVELOPlVlliNl' LOANS. A statutory city, a home rule charter city, an economic development authority, a housing and redevelopment authority, or a port authority may make a loan to a business, a for-profit or nonprofit organization, or an individual for any purpose that the entity is otherwise autho- rized to carry out under sections 116J.415, 469.001 to 469.068, 469.090 to 469.1081, 469.124 to 469.134, 469.152 to 469."165, or any special law. lffistory: 1994 c 614 s 12; 1996 c 369 s 12 TARGETED NEIGHJBORHOOD REVITALIZATION PROGRAMS 469.201 DEFINITIONS. Subdivision 1. Applicability. The definitions in this section apply to sections 469.201 to 469.207. Subd. 2. City. "City" means a city of the fIrst class as defIned in section 410.01 and a dry 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 andredevelopment au- thority, or other agency or instrumentality, the jurisdiction of which is the territory of the city, is included within the meaning of city. Subd. 3. City council. .'City council" means the 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 specified in a revitalization program. The sources of city matching money may include: (1) money from the general fund or a special fund of a city used to implement a revital- ization program; (2) money paid or repaid to a city from the proceeds of a grant that a city has received from the federal govenunent, a profit or nonprofit corporation, or another entity or individu- al, that is to be used to implement a revitalization program; (3) tax increments received by a city under sections 46901 74 to 469.179 or other law, if "eligible, to be spent in the targeted neighborhood; , ~i 1115 '" (4) the grl equipment, or I a profit or non mentation of a (5) city IT ture facilities ( (6) mone wise provide f or program rel (7) mone: opment activit (8) mone' law, and expen gram; (9) admir implementati<: (b) City I (1) city n vided through( in a ~.~ I y from repa)'l fmancing pro' (3) mone Subd. 5. nomic develo] Subd. 6. providehousil or moderate it improvement~ future for hot construction, I activities also and grant Pro8 borhood, the c grams authori Subd. 7.) talization acti, a cooperative, exceeds 125 p bilitation. Subd. 8. means person:aSubd. 9. : ate income" IT subdivision 1 ~ s.u. one or { States De r section 469.2C additional are: Subd. 11 the money des program. 473.581 METROPOLITAN GOVERNMENT 98 revenue anticipation certificates under this subdivision. So much of the anticipated tax and other revenues as may he needed for the payment of the certificates and interest thereon shall be paid into a special debt service fund established for the certificates in the council's finan- cial records. If for any reason the anticipated tax and other revenues are insufficient, the cer- tificates and interest shall be paid from the first tax. and other revenues received, subject to any limitation or prohibition in a bond resolution or indenture. The proceeds of the certifi- cates may be used for any purpose for which the anticipated revenues or taxes may be used or for any purpose for which bond proceeds under subdivision 1 may be used, provided that the proceeds of certificates issued after May 26, 1979, shall not be used to pay capital costs of the metrodome constructed or remodeled pursuant to sections 473.551 to 473.595. History: 1977 c 89 s 10; 1979 c 26 s 1; 1979 c 203 s 7-10; 1984 c 607 s 1; 1994 c 648 art 1 s 10 4730591 [Repealed, 1979 c 26 s 3J 4730592 TAX REVENUES. Subdivision 1. Local sales tax. The city of Minneapolis may enter into agreements with the metropolitan council and the commission which requires the municipality to impose a sales tax, supplemental to the general sales tax. imposed in chapter 297 A, for the purposes and in accordance with the requirements specified in sections 473.551 to 473.599. The tax may be imposed: (a) on the gross receipts from all retail on-sales of intoxicating liquor and fermented malt beverages when sold at licensed on-sale liquor establishments and municipal liquor stores located within the municipality, (b) notwithstanding any limitations of Laws 1986, chapter 396, section 5, clause (2), on the gross receipts from the furnishing for consideration of lodging for a period of less than 30 days at a hotel, motel, rooming house, tourist court, or trailer camp located within the munici- pality, . (c) on the gross receipts on all sales of food primarily. for consumption on or off the premises by restaurants and places of refreshment as defined by resolution of the city, or (d) on anyone or combination of the foregoing. A tax under this subdivision shall be imposed only within a downtown taxing area to be determined by the council. The agreement or agreements between the city, the metropolitan council, and the commis- sion shall require the municipality to impose the tax or taxes at whatever rate or rates may be necessary to produce revenues which are determined by the council from year to year to be required, together with the revenues available to the commission, to pay when due all debt service on bonds and revenue anticipation certificates issued under section 473.581, all debt service on bonds and revenue anticipation certificates issued under section 473.599, and all expenses of operation, administration, and maintenance of the metrodome and the basketball and hockey arena. When it is determined that a tax must be imposed under this subdivision after the effective date of Laws 1994, chapter 648, there shall be added to the rate of the tax imposed for the purposes described in the previous sentence a tax at a rate of 0.25 percent for use by the city to fund recreational facilities and programs in the city's neighborhoods for children and youth through the Minneapolis park and recreation board. The agreements shall provide for the suspension, reimposition, reduction, or increase in tax collections upon deter- mination by the metropolitan council that such actions are appropriate or necessary for the purposes for which the tax is imposed, provided that the balance in each of the metrodome debt service and the basketball and hockey arena debt service fund or funds, including any reserve for debt service, shall be maintained at least at an amount sufficient to pay the princi- pal and interest on bonds which will become due within the next succeeding one year period and, except as otherwise provided by agreement, shall not be maintained at an amount great- er than that required to pay principal and interest on. bonds which will become due within the next succeeding two-year period. Once the tax is imposed by the city, the tax imposed for the benefit of the Minneapolis park and recreation board shall remain in effect at the rate of 0.25 percent until the bonds issued under section 473.599 have been retired. The agreements shall be executed by the city, after approval by resolution of the city council and before the is- r ~ J ~.~ If >> ~ ~ ~ I.~ f 99 suance of ' dome or tl hockey an ers of the shall not b ment for tI not be acq accordanc, penses of I The tax sh: sales and l visions. 11 collection, neapolis f( shall dedul indirect st minister, a fund of the gether witl 473.595, i 473.581. a sion arisin for paymel tion 473.5: The procec ceeds may The I together w arena undf funds, esu operating l maintenan debt servic expenses ( Subel, Hist(J 4739595 < Subdi and mainta any privau tivities at t taxes impc such sale c sales price the person tributor, 3IJ er, seller, 0 ner as othe missions n to file retu: nonpayme: sure the prl Notw: sian tax up ary with th 98 99 METROPOLITAN GOVERNMENT 473.595 anticipated tax and nterest thereon shall the council's finan- insufficient, the cer- received, subject to ceeds of the certifi- axes may be used or ~d, provided that the y capital costs of the ~73.595. c 607 s 1.. 1994 c suance of the bonds under section 473.581 and commencement of construction of the rnetro- dome or the issuance of bonds under section 473.599 and acquisition of the basketball and hockey arena and shall consti,tute a contract or contracts with and for the security of all hold- ers of the bonds and revenue anticipation certificates secured by the tax. The metrodome shall not be constructed or remodeled in a municipality which has not entered into an agree- ment for the metrodome in accordance with this section. A basketball and hockey arena shall not be acquired in the city of Minneapolis unless the city has entered into an agreement in accordance with this section as security for bonds issued pursuant to section 473.599 and ex- penses of operation.. administration. and maintenance of the basketball and hockey arena. The tax shall be reported and paid to the commissioner of revenue with and as part of the state sales and use taxes, and s,hall be subject to the same penalties, interest,. and enforcement pro- visions. The collections of the tax, less refunds and a proportionate share of the costs of collection, shall be remitted at least quarterly to the metropolitan council and the city of Min- neapolis for use by the Minneapolis park and recreation board. The commissioner of revenue shall deduct from the proceeds remitted to the council and the city an amount that equals the indirect statewide costs as well as tbe direct and indirect department costs necessary to ad- minister, audit. and collect this tax. The amount deducted shall be deposited in the general fund of the state. The proceeds remitted with respect to the metrodome shall be placed, to- gether with the net revenues, of the commission attributable to the metrodome under section 473.595, into the debt service fund or reserve or special funds, established under section 473.581, and any funds established to secure payment of operating deficits of the commis- sion arising from its ownership and operation of the metroc...."lle. The proceeds may be used for payment of debt service on bonds and revenue anticipation certificates issued under sec- tion 473.581, and expenses of operation. administration, and maintenance of the metrodome. The proceeds shall not be used for any capital costs of the metrodome, ~xcept that the pro- ceeds may be used to pay interest on bonds during the construction period. The proceeds remitted with respect to the basketball and hockey arena shall be placed. together with the net revenues of the commission attributable to the basketball and hockey arena under section 473.595. subdivision la, into the debt service fund or reserve or special funds, established under section 473.599, and any funds established to secure payment of operating deficits of the corilmission arising from its acquisition, ownership, operation, or maintenance of the basketball and hockey arena. The proceeds may be used for payment of debt service on bonds and revenue anticipation certificates issued under section 473.599. and expenses of operation, administration, and maintenance of the basketball and hockey arena. Subd. 2. MS 1992 [Repealed by amendment. 1994 c 648 art 1 s 11] History: 1979 c 203 s 11; 1994 c 648 art 1 s 11 nto agreements with Gipality to impose a for the purposes and 13.599. The tax may quor and fermented ld municipal liquor tion 5. clause (2). on eriod of less than 30 d within the munici- aption on or off the tion of the city. or wn taxing area to be :il, and the commis- rate or rates may be m year to year to be .y when due all debt on 473.581. all debt ion 473.599, and all Ie and the basketball ,der this subdivision to the rate of the tax e of 0.25 percent for ; neighborhoods for 'he agreements shall llections upon deter- or necessary for the h of the metrodome unds, including any ~nt to pay the princi- ling one year period I at an amount great- come due within the ~ tax imposed for the ~ct at the rate of 0.25 ~he agreements shall it and before the is- l' 473.595 COMMISSION FINANCES. Subdivision 1. IVletrodome admission tax. The commission shall by resolution impose and maintain a ten percent admission tax upon the granting. issuance, sale, or distribution, by any private or public person. association. or corporation, of the privilege of admission to ac- tivities at themetrodome. No other tax. surcharge. or governmental imposition, except the taxes imposed by chapter 297 A, may be levied by any other unit of government upon any such sale or distribution. The admission tax shall be stated and charged separately from the sales price so far as practicable and shall be collected by the grantor, seller, or distributor from the person admitted and shall be a debt from that person to the grantor, issuer, seller. or dis- tributor, and the tax required to be collected shall constitute a debt owed by the grantor, issu- er, seller. or distributor to the commission, which shall be recoverable at law in the same man- ner as other debts. Every person granting. issuing. selling. or distributing tickets for such ad- missions may be required, as provided in resolutions of the commission, to secure a permit. to file returns. to deposit security for the payment of the tax. and to pay such penalties for nonpayment and interest on late payments, as shall be deemed necessary or expedient to as- sure the prompt and 'uniform collection of the tax. Notwithstanding any other provisions of this subdivision. the imposition of an admis- sion tax upon a national superbowl football game conducted at the metrodome is discretion- ary with the commission., Public Art Page 1 of2 .... ~~~':~HOc('Oli~~~ ~~~"*'"~tt*:lI*,8/tt.~~ festival s . c.alcndar grants (~(.un m.u1l1t}f a:rts u~Mtect~A'*,l ht$taIic "fs:~~~~.ft'jt'.~~:l o.t\ Public Art Welcome to the City Of Los Angeles Public Arts Department. View the information on this page by scrolling down or clicking the relevant section in the table of contents below. 1. Background 2. Percent for Art 3. The City Art Collection 4. Murals 5. Opportunities 1. Background In 1989, the City of Los Angeles adopted a series of landmark ordinances marking a significant commitment to citywide development of the arts. The ordinances required that a 1 % proportion of the value of new construction over $500,000 be allocated to support and develop the arts. The Public Arts Division of the Cultural Affairs Department was established to oversee these code requirements which are embodied in the two programs outlined below. 2. Percent for Art a) The Public Percent for Art progam (officially referrend to as the Public Works Improvment Arts Program) requires that one percent of all City capital improvement project monies be allocated for art. This obligation most often results in a commission of artist-designed elements for a building project, due to the expenditure restrictions of particular funding sources. F or further information on the Public Percent for Art, click here. b) The Private Percent for Art program, (officially referred to as the Arts Development Fee) applies to any private, non-residential construction over httn'//UTUTUT f"nltl1rAl<;1 nr("T/rlAnt/n..hl;~ n..-f-/......J...n..-f- t..4-...... ~ /1 "7/nn Public Art Page 2 of2 $500,000 and may be satisfied through either a cash payment or a project or program that is equal to no more than one percent of the dollar valuation of the project. Any funds collected for this obligation are placed in a specially designated account that can only be expended through approval of the City Council. F or further information on the Private Percent for Art, click here. 30 The City Art Collection For information regarding the City Art Collection and to view recent acquisitions, click here. 40 Murals Murals are an integral part of cultural expression in the City of Los Angeles. They have been created throughout Los Angeles by artists from various artistic and cultural traditions and backgrounds. Since the 1970s the City has funded public murals through the Citywide Mural Project. For more information, click here. ~So Opportunities For a list of opportunities with The City of Los Angeles Public Art Department, click here. iii Back to top m Home +F estivals+Calendar+Grants+Public Art + Architecture/Historic Preservation+Community Arts+ 1..J...L_.//_______ ~__1...____1_ __~/.J_~...../____Lt~_ _--,-1.__'-_ __.1..__ Public Percent for Art ... ~S<Sr ~~.~ oil~~ OOY1.Jl~m$.~~~M' festivals publk. a.rt calendar grants conl mun.ity' arts a,.rd.l:tt ~4.~'ur~l 'hi&fOfie I:'H'1l1~~,r~c.at'i~t) Public Percent for Art The following information provides an introduction to the Public Percent for Art Program. For further details regarding eligibility and the application process, please call the Public Arts Division at (213) 485-9570. View the information on this page by scrolling down or by clicking on the relevant section in the Table of Contents below: L Program History & Mission 2. Goals 3. Proiect Cycle 1. Program History & Mission The Public Works Improvements Arts Program, or Public Percent for Art requires one percent of the capital improvement cost of all construction, improvement or remodelling undertaken by the City to be allocated for public art. 20 Goals IllI To provide appropriate forms of artistic expression in all City capital improvement projects; Ii\1 To integrate the work of artists in the design and planning of capital improvement projects; iii To ensure that qualified artists of all genders and ethnic groups are represented; t..4-4-_.II..~~~.. ~..14-.._~1~ ~_~/....1~_.&.I_..t..l:~ ~....I_..t..~......., t..4-~ Page 1 of2 ,., /1 '7/(\(\ Public Percent for Art To provide a variety of arts and cultural activities~ and II!I To ensure the highest quality of artistic excellence. 38 Project Cycle Iiil City department or agency that is funding the project coordinates with the Cultural Affairs Department's Public.Arts Divison to develop a profile of the community surrounding th~ project site. . 111 This is incorporated into a Request for Qualifications (RFQ) and/or Request for Proposals (RFP) which is announced through direct mailing to parties through the Public Arts Newsletter, a quarterly CAD publication (If you do not receive this publication and would like to, please contact the Public Arts Division). lllI Applications are reviewed by an independent arts panel which is generally made up of three arts professionals, a representative of the client department, the project architect and a community representative. El The selected artist will meet with the sponsoring agency and architect to introduce their work. They will also meet separately with the architect to discuss concepts of an art proposal, and the best way to integrate art into the design of the building. The community will be informed of the project through a meeting where the selected artist will present their proposal and hear the comments of community members. III Back to top 1m Back to Public Art Main Page m Home Page 20f2 Private Percent for Art Page 1 of3 ... . ~s.!r (ct~~ 4K~~ ~~J.~~m~~~~. festivals pttblh~; art calendar grants conl munity arts a.l"1:.hEt ~l.~.~r~l "hAst,. tit. pr1l1:i5';;B'\<aH~tl Private Percent for Art The following information is intended to introduce the Private Percent for Art program to developers engaged in non-residential projects valued over $500,000. For further details regarding eligibility and means of satisfying the arts development fee, please call the Public Arts Division at (213) 485-9570. View the information on this page by scrolling down or clicking the relevant section in the Table of Contents below: 10 What is the Arts Development Fee (ADF)? 20 Which proje~ts are subjects to the ADF? 30 Methods of satisfying the ADF 40 What makes an arts project eligible? 1. What is the Arts Development Fee? The Arts Development Fee (ADF) is a one percent assessment on all new, non- residential develoment with a total construction value above $500,000. 20 Which projects are subjects to the ADF? All projects that comply with the above criteria are subject to the ADF with the following exceptions: 1. Any project for which the total value of all construction or work for which the permit is issued is $500,000 or less. h++~.II.nn..rnT ....111+....o1~ "..,....fAAni-/nl1hl:,... ~rl/nllh~rl1. hi-nl ,,/17/()() Private Percent for Art Page 2 of3 2. The repair, renovation or rehabilitation of a building or structure that does not alter the size or occupancy loa~ of the building. 3. The repair, renovation or rehabilitation of a building or structure for the insatllation of fire sprinklers pursuant to Division 9. 4. The repair, renovation or rehabilitation of a building or structure that has been made to comply with Division 88 (Earthquake Hazard Reduction in Existing Buildings) subsequent to a dtation of noncompliance with Division 88 5. The repair, renovation or rehabilitation of a building or structure for any handicapped facilities pursuant to this code. 6. All residential buildings or portion thereof This exception does not include hotels. 30 Methods of satisfying the ADF After determining that a project is eligible for an Arts Development Fee, there are two ways in which a developer may satisfy it. Paying a fee This is collected by the Department of Building & Safety at the time a Building Permit is issued. The money is deposited in the City's Arts Development fee Trust Fund to be used in accordance with the Cultural Masterplan and the guidelines established by city. code. Developing an art projector programo A developer may obtain credit for the ADF by agreeing in writing to undertake an art project within the City of Los Angeles. This project must meet the guidelines for eligibility established by administrative code and be financially secured through a written agreement with CAD. CAD will then issue a waiver which may be presented in lieu of payment to the Department of Building & Safety at the time a Building Permit is pulled 40 What makes an art project eligible? If a developer chooses to undertake an art project, there are MANY ways in which the ADF requirement may be satisfied: a) Cultural and artistic amenitieso Private Percent for Art This refers to individual artistic productions such as sculpture, murals, portable paintings, earthworks, neon, mosaics, photographs, prints and any combination of media such as sound, film, video, computers and new genres. b) Standardized and functional elements This includes grates, lights benches and other design enhancements which are eligible expenditures if rendered by an artist for unique or limited editions. c) Cultural and artistic facilities This includes spaces for exhibition, performance and education where the works by artists in the disciplines of visual, performing, literary and media arts are produced or shown. d) Cultural and artistic services This refers to projects that make the arts available to a wider audience such as performing arts (theatrical, dance, musical), literary arts (poetry readings, storytelling), media arts (film, video, electronic arts, screenings and installations), education (lectures, tours) and special events festivals, celebrations). m Back to top m Back to Public Art Main Page Il!I Home 1....H-..... II.., nn n...' ,.. .1....~""1... A~n-I ,.:1.,........1....... h1;,. nri I....... h...ri'l .......,., Page 3 of3 "/1 7/00 Imast 02.rnap/mast 02.mao ......................................................................................................................................................................0............................................................................................................"....................................................................... I ABQ ARTICLES I ABQ TOUR I CITY OF ALBUQUERQU.E PUBLIC ART PROGRAM A description of one of the best public art programs in the country and a listing of 121 works placed throughout the city. mailto: isoraaue~caba. QOV City of Albuaueraue Public Art Proaram \MNW: City of Albuaueraue Public Art Proaram ........ . . .. . . " .......... .. . . .. ... . .... .. . ... ..... ... Contents . - ... ..-0. .0.. ... .......... ......... ................ .... .. ..... .. ... . ... .... u_ . ..... .... Introduction to the City of Albuaueraue Public Art Proaram : City Regions Related Pages Old Town Area Albuaueraue Public Mural Installations . . ...... .. .... . Downtown AlbuauerQue International Sunoort Art Collection ... . . : .. .. .. .. .. .. . . .... .. .. .. . .. .. . . Southwest . ... .. ........................ ......... .... ................................................... ........ ..................... ................... .... West Side - North : Vallev : . ..................................... ....... .. . ... ... ... .... .... .... ... .......... ......... ...... ....... ..................... : Northeast SOSI Save Outdoor Sculoture! Southeast Leaend to fundina sources : Introduction Petroglyphs on the West Mesa. . . murals in the neighborhoods. . . arts and crafts at the International Sunport . . . tapestries, tiles, paintings and sculpture everywhere in the city. Public art flourishes in Albuquerque! residents daily experience the full speCenterum of creative traditions nourished by the dramatic Image: @ 1991 Sandia Mountains and the Rio Grande Valley, home to civilizations Barbara Grygutis for thousands of years. "Cruising San The City of Albuquerque's Public Art Program gives visual form to Mateo" the community's diverse cultural and artistic heritage, supporting a Public Art Program broad sweep of artistic expression. The Public Art Program photo receives funding frorr. many sources, including One Percent for Art, revenue bonds, state legislative appropriations, the Urban Enhancement Trust Fund and from other community organizations, businesses and individuals. As it adds exciting new works and preserves our rich treasure of existing public art, the Program commissions works directly and coordinates activities with other arts organizations. The Public Art Program plays an important role in New Mexico's culture and economy. That role is to involve the community in providing accessible expressions that define and nurture our heritage, stimulate the imagination, invite dialogue, and challenge the human spirit. Enjoy our history! Experience our variety! City of Albuquerque Public Art Program CIP Division I Mayor's Office, PO Box 1293, Albuquerque, NM 87103 505-768-3829 The Public Art Program has placed com.missioned art of all types throughout the city in a wonderful display of Albuquerque's rich historical, cultural and artistic variety. City of Austin: Art in Public Places: About Us AIISTIN OTY COM.ClIOM ._..1 ..... ...... ...... ..... l'lll'IIIIII~::~:::::~:~:~~:~~~~:~:~~~::~!!IIIIII'I'11'111'11!~~!~I.11111111 1!1!!!I!IIIIIIIIIII!I!iIIIIlIIIIIIIlIIIIIHIIIIllill!1111111111!llilllllll!!!illlllllllll about us For over a decade, the City of Austin Art in Public Places program has made it possible for talented artists of local and national renown to enhance public spaces thro~ghout the city with works of art ranging from outdoor sculptures and murals to functional works integrated into architecture. Artists have successfully incorporated traditions, objects, and physical marks of community members to create cultural landmarks that have become cornerstones of community identity. The City of Austin.was the first municipality in Texas to make a commitment to include works of art in construction projects when it established the Art in Public Places program in 1985. By ordinance, 1 % of budgets are allocated to commission or purchase art for public sites such as the airport, convention center, libraries, parks, police stations, and recreation centers. The Austin Arts Commission provides oversight and appoints a seven- member Art in Public Places Panel composed of respected local visual arts and design professionals to make program recommendations. The Art in Public Places Panel and staff work closely with project architects and city department and community representatives to ensure that the Art in Public Places Collection includes high quality works of art that represent the broad range of media, styles, and cultural sensibilities that contribute to Austin's distinctive ambiance. See and experience Art in Public Places for yourself! Credits This web site is partially funded by' X " TE,XAS -i:' r$'~i:ti~~ ~:if) ~ -:nc: '1"'i':t:,.~Il'r'lj. We would like to further recognize the City of Austin's Office of Internet Services for their expertise and committment to this project. e Panelists o Donation Policv e AIPP Guidelines @ City Council e Art Commissioners . Julia C. Butridge Gallerv AIPP Ordinance hH.......//,,'''''''~; '31H.t;1'\ tV' I1CO/'3;-n-n/'JIhr\l1t htm Page 1 of2 1/1 (:./(\(\ City of Austin: Art in Public Places: About Us Parks and Recreation Department :ll":l'~ Cultural Affairs Division :' 1110 Barton Springs Road, #201 : . :.. Austin, TX 78704 ~~~:'f.l~ tel. 512-397-1455 '.A.lllT U'i= e-mail: aioo<alci.austin.tx.us ~rliU~ Page 2 of2 Austin City Connection Source: City of Austin Modified: Wed Mar 118:47:582000 Public Art & Design Page 1 of2 Public Art Tour Call to Artists Public Art: The Five Most Frequently Asked Questions (FAQs) ., South Florida Cultural Consortium 2000 Public Art & Design The Broward County Public Art and Design Program allocates two percent (2%) for commissioned artists to provide design expertise, and to create artworks within a broad range of capital improvement projects. The purpose of the program is to contribute to the enhancement of urban design through the creation of commissioned works of art that create a sense of place, that improve the visual environment for the citizens of Broward County and that advance the missions of the County departments where the projects reside. Commissioned artworks are the result of a dynamic interaction between selected artists and interested constituent groups during the design stages of the projects. The Broward County Art in Public Places Program was established in 1978 for the purpose of enhancing the County's heritage and promoting a greater understanding and awareness of the visual arts. During 1994-1995, the Broward Cultural Affairs Division initiated an in-depth community planning process to assess the program and make revisions. The result was the passage of a two percent public art ordinance, new guidelines, and a more broad-based artist selection process. All of this is documented in the master plan entitled Design Broward, published in October 1995. Reflecting a new focus and direction which shifts the emphasis away from the traditional model of placing paintings and sculptures in public spaces and towards a program that concentrates on enhancing urban design through aesthetic amenities, the program emerged with a new name---the Broward County Public Art and Design Program. Artists are now commissioned at the early design stages of a project so that they may effectively collaborate with the architect as a member of the project design team. Artists are encouraged to reach out to the community in the early httn.llurnrnr t'V\ hrrnllTgrrl fllH..ff'111()()'\f)() httn 1/1,",-1()f) Public Art & Design Page 2 of2 phases of the design process to ensure that the resulting artworks and aesthetic amenities respond to community needs and perceptions. The Public Art and Design Committee which oversees the operation of the program recommends appointment of seven specialized Artist Selection Panels by the Broward Cultural Affairs .Council. The selection process, which includes community and agency representatives, is intended to promote excellence while ensuring fairness, diversity, and sensitivity to the specific needs of constituent groups. hi-tn.llnTnTn1 r'A hrn.n7'lrA fi l1...lr'l1;f\f\oC;:()() h.f....... ..., 11 LI^^ Florida, State of the Arts License Plate Page 1 of 1 Florida, "State of the Art" License Plates .. .......................... ....................,...,......... . .................................... .................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................................ THE DRIVE IS ON TO SUPPORT THE ARTS IN BROWARD. The state has added the Arts License Plate to its vanity plate program. The colorful plate has the words "Florida" at the top of the plate and "State of the Arts" at the bottom. The plate is available at any of the seven Broward tag offices, or it may be ordered through the mail. Funds from the sale of the license plate will be returned to Broward County for the distribution to local cultural groups. NOW A V AlLABLE FROM YOUR LOCAL TAG OFFICEa httn'//UTurn.T {,r\ hrr\UT~rrl f1 11~/{,1110 1,,00 htm 1/1 h/nn Cultural Affairs Page 1 of 1 Welcome to the Broward Cultural Affairs Web Site. Explore the Arts! There are over 200 events taking place weekly. H you can't tind what you are looking for, click here to e-mail us with your question and we will try to assist you. :::: "', . '~~~":'.:~:+n::~.::0t~::../: . ^ ,":?i ::::: ::<~"" ::~ -, '. Explore the multitude and variety in the museums throughout Broward County from tine art to science, from history to archaeology, from Native Americans to outer space, there is so much to discover! Not only does Broadway come to Broward, but more than 20 bome-grown theater companies perform. year-round. Sample some of the best road shows, regional, showcase and community theater. . , ~ -"x;v:;~.., x t: V':#" ' , .'~ ., . ... ~? ~I 'y',,~. . . ~ . ln~" '%1X. :. ~';'~~~~~ Take a boat ride on a pristine lake and learn about Broward's delicate eco-system, unearth dinosaurs and fossils, angle knowledge on Br()ward's marine industry, watch in awe as butterflies hatch and flutter aU around you. The Cultural Dir~ctory is a comprehensive directory :. with listings by disciplines, a short description of the : cultural organization and contact names and telephone ./:..... l!'S.lll1mbcrs. To add ym.nJr cultural! orgmmnzatnoBll to this .q . directory, please Click Here. :~. "':: The Cultural Quarterly magazine is published four :;:'f,:::?l times a year and devotes its pages to the visual and . performing artists in Broward County. The magazine includes a fold-out poster of original artwork and a calendar of events. Did yo~ know that if you purchase an Arts License ,.................w~;)........................'w...... Plate you can help to support the arts . :~ Why not consider joining the Cultural Foundation .. . ~.. ~:~=~:h:~O:=,,,::~::: ::~:I~:t way to JJtn{W~L~!~J!.Q~. community. ............... :~fn:~~~h:.....-........ PHOENIX ARTS COMMISSION PUBLIC,ARTRROGRAM,. Page 1 of3 1 ...........,..,.w.. r' "'''''''''PH'OE'N [x...A.RIs...."'., ...., ~ .~.. I .; COMM~SSIQN t~ < ~ ::: . :- . >... PUBLIC ART PROGRAM . Public Art Program Milestones Newsletter Circuit Breakers Symposium Return to Phoenix Arts Commission Public Art Program In 1986, Phoenix adopted a Percent for Art Ordinance, which allocates up to 1 percent of the city's Capital Improvement Program for public art projects. In 1988, a public art master plan was created, which divided the city into a series of "urban design systems" and public art "working zones. " The public art program has become internationally recognized for its unique and innovative use of artists on design teams for large projects such as civic buildings, freeways and bridges. Artists also have been commissioned to create site-specific neighborhood landmarks, sculptures, video artworks and murals. Commission staff coordinate projects with artists, city departments, neighborhood organizations, architects and engineers. The commission maintains a slide registry, which includes more the 1,000 local, national and international artists. Artists are selected for public art commissions through the slide registry or through an open competition process. Approximately 44 public art projects have been completed since 1989. Examples of some of the projects include: e Dreamy Draw Pedestrian Bridge - 1995. Squaw Peak Parkway at Dreamy Draw. The artist, Vicki Scun, working with the engineering firm ofT.Y. Lin, has designed this 311- foot pedestrian bridge and urban gateway. The bridge design references the area's mountain environment and cultural heritage with special color and geometric patterning in its concrete and metal structures. @ Public Employee Memorial - 1994. Phoenix City Hall. Second Avenue and Monroe Street. The artist, Otto Regan, has created an nine-foot by two-foqt thick semi-circular stone wall. This rough hewn wall encloses a space that is 50-feet in diameter. Two flagstone-covered walkways slowly descend into the memorial so that by the time the visitor is completely in the memorial, he or she will be almost three feet below the average grade of the surrounding plaza. The 60- httn'/Iurnrm (':1 nhopniy ~711~1 ART~/~rtnro(}r htmJ 1/1 (\/00 PHOENIX ARTS COMMISSION PUBLIC ART PROGRAM Page 2 of3 foot long inner wall cradles five sweeping tiers of glass bricks. These glass bands are made up of solid case glass "bricks" on which the names and departments of city employees who have lost their lives in the line of duty are engraved. o Solid Waste Management Facility - 1993. 27th Avenue and Lower Buckeye Road. The artists, Michael Singer and Linnea Glatt, working with the engineering firm of Black and Veatch, have designed the facility. The artists' concepts touched all aspects of the site and buildings including road configuration, building layout, building elevation designs, structural design, material choice and landscape. Key to their design considerations was the clarity of function at the facility and the varied experiences of visitors, administrators and employees. The site plan and built spaces were designed for visual access and integration of all activities. o Metroasis - 1993. Phoenix City Hall, 200 W . Washington St. Located in the lobby of Phoenix City Hall, this 20-foot mural depicts the history of Phoenix from pueblo to skyscrapers. It was designed by artist Joel Coplin. @ Ironwood Branch Library - 1993.4333 E. Chandler Blvd. A curated show of Mexican Folk Art objects located at the Ironwov~ Branch Library. The show consists of eight different panels, which can rotate throughout the year and represents different aspects of the Mexican Culture. 1& Machan Oasis - 1993..Machan School. 2140 E. Virginia Ave. A welcoming entry marker to students and the neighborhood, the sculpture also functions as a play/performance area, shaded by a ram.ada constructed of brightly colored steel cut-outs representing subjects from the school curriculum. The sculpture was designed by Ginny Ruffuer. e Papago Park/City Boundary Project - 1992. Papago Park. McDowell Road and Galvin Parkway. This two-acre environmental sculpture addresses the axial alignment of Phoenix and Scottsdale and serves as a life-giving watering system for its desert site. The stone and concrete work includes seven directional towers, \iVhich also align with the summer solstice. The towers surround a 20-foot-Iong tree form that serves as an aqueduct, channeling rainwater onto a series of planting terraces created by the tree's branches. Jody Pinto and Steve Martino, landscape architects, created this sculpture. @ Electro-Symbio Phonics for Phoenix - 1992. America West Arena. 201 E. Jefferson St. The artist, Nam June Paik, has created a video sculpture and neon installation featuring three robot figures comprised of 60 television monitors set into aluminum frameworks. Each figure uses three video channels, one each for the head, torso and arms/legs. Neon panels depict symbols of human communication, technology and biology. Q HydrotitYer - 1992. 91st Avenue Wastewater Treatment Plant. ~615 S.. 91st Ave. W orIcing with recycled materials, the artist, Evan Lewis, has created a functional water fountain in the form of the microbes used in the water treatment process. It' Untitled - 1991. Sunnyslope Transit Center. Third Street and Dunla~ Avenue. The artist, working with Sunnyslope Elementary School students, Cl ~ated a series of six bronze sculptures illustrating students' views of mass transit from the past, present and future. Each pedestal also contains two bronze plaques based on student drawings made at the transit center. t...A-L_./'-______ _~ ~1___._~___ 1"T't.~nl . PHOENIX ARTS COMMISSION PUBLIC ART PROGRAM Page 3 of3 G Homage to the Hohokam - 1991. Sky Harbor International Airport. Park and Ride Shuttle Lot 24th and Tonto streets. Series of five sculptures, each depicting a different Native American animal symbol set against a field of airplanes. I) Mr. Potato Head Rises Over Phoenix - 1991. Encanto Park. 15th Avenue and Encanto Boulevard. A large, semi-circular sculpture at the entrance to the Kiddieland Playground consisting of a colorful assortment of geometric shapes of painted steel atop concrete columns. Peter Shire, the artist, designed six other smaller sculptures located throughout the playground. e Our Shared Environment - 1990. Thomas Road Overpass at Squaw Peak Parkway. The freeway overpass, spanning three streets, uses Native American (Hohokam) imagery found on pottery shards excavated at the construction site. Artist MarilYn Zwak assisted in designing the bridge's lizard-shaped support columns and extensive adobe and concrete-relief murals. Area residents incorporated their own designs and personal objects into the wet adobe during the construction process. (& Central Avenue Medallions - 1990. Central Avenue between Culver Street and Camelback Road. A series of 300 circular medallions affixed to pedestrian light poles are contemporary interpretations of traditional Native.American imagery and symbols. The work on these medallions was shared by Howard Sice, Juan and Patricia Navarrete and Doug Weigel. @l Nuestro Pueblo - 1989. Marivue Park. 55th Avenue and Osborn Road. Four totem-like pillars with multi-colored ceramic mosaic surfaces created by Ron Gasowski with assistance of students from Harris, Cartwright, Downs, Barry and Spitalny elementary schools; Borman Jr. High; and Maryvale High School. Return to top of Public Art Program Return to Phoenix Arts Commission .~ .... ,', ...... ,,,... "... '0" ............... ......... ',' ......... . ........ . .... ..... ," i: . REItlRN -to PHOEN1X :;:' '. :.::.... . .A1 yep & F{NG;E~~BS @ Copyright, 1999, City of Phoenix Last modified 12/01/99 18:56: 16 GMT (phoenix time is GMT - 7 hrs) httn.!IummT f"1 nhf'\pn1V ~7 11~1 A "RT~/~rtnr('\(Tr html 'l/1 r:./oo The City of Portland, Oregon Page 1 of3 j S-crVfCQ~ & Burouw:-, ::::::::::::>'~~:::"~~;';_~:;:'~:il:~~1J ~~~l:a~@~'. ~"::}" ~., If you still cannot locate the information you need after using the search function, please contact us. Tip: You can use + in front of a term to require it. Example: +"scuba diving" Hawaii, Maui C0tihCil A gcndtl -- Conti.1ct Us . . CHy Code Search Start new search Search these results Search for: I"PUbliC art II ~ ~.,w""':"'klii"""':_~I"""""w"""",""",............................."................................,...........................................................................w........................: :~ ~ III I~~I~ ::~~~~~..~$~~..~>.:.~~~~~~ Help Advanced Results for: "public art" 73 results found, sorted by relevance Document count: "public art" (73) ~~mi~lii~'JB_ \.lijiBiB 1- ~ 10 ~~ 99%~ 25 Nov 98 Find Similar Public Art Goals The goals of the Percent for Art Program are to: Develop a public collection of artworks which are of the highest aesthetic quality, represent our diverse community, and offer a wide range of... http://www.racc.org/PublicArt (PA)/PA GoalsHistory.html- size 4.6K "public art": 24 Pll1blic Art Regional Arts & Culture Council One of the most visible programs of the Regional Arts & Culture Council is the Public Art Program, whose purpose is to enrich the region by integrating a wide range of art ... http://www.racc.org/PublicArt (PA)/PA HomePage.html- size 3.5K "public art": 24 PAFAO 89% ~i"l~~i PUBLIC ART PROGRAM FREQUENTLY ASKED 20 May 99 QUESTIONS Where can I obtain more information on the Find Similar Percent for Art program? I need help putting together a portfolio of slides and/or writing a resume/artist's statement. Can RACe ... http://www.racc.org/PublicArt(pA)/paJaq.htm - size 12.9K "public art": 11 About the Council 83% ~'~:::"'~""":~~~i Works with the Board of Directors and a staff of 17 to carry 02 Dec 99 out the mission ofRACC which is to provide leadership, Find Similar 99% ~g~.M?a 3 1 Jan 00 Find Similar . ../ Querv. htm1?coI=default&ht=O&an=&at=o/ti22nublic+art%22&as=&ac=&nw= 1 OO%25&ws= 1 3/] 6/00 The City of Portland, Oregon Page 2 of3 funding and advocacy for arts and culture throughout the tri- county Portland, Oregon region. ... http://www.racc.org/abouCihe_council.htm - size i4.6K "public art": 7 . Freq. Asked Ouestions 1/97 78% lo:<.~~o>.-.:_.~~ Frequently Asked Questions How does RACe serve the arts 24 Feb 00 in the Portland metropolitan region? What is RACe's Find Similar location and hours of operation? What information on RACe can be mailed? Does RACC have a schedule of art ... http://www.racc.org/faq.htm - size 17. 7K "public art": 5 BES&BWW.htm 77% s.....'... ..~~~ The intent of this Policy is to identify appropriate Bureau of 19 May 99 Environmental Services (BES) and Bureau of Water Works Find Similar (BWW) participation in Portland's Public Art Program within the restrictions ... http://www.racc.org/Pub/icArt (PA)/PA public polices/bes% 26bww.htm - size 7.2K "public art": 12 Public Art Portland Center for the Performing Arts ARTIST: James Carpenter TITLE: Spectral Light Dome DATE: 1985 LOCATION: Interior Atrium MEDIUM: Glass, Steel FUNDING: $167,000 Percent for Art D ... http://www.racc.org/PublicArt(pA)/PAFactSheet/PAIs6.htm/- size 5.6K "public art": 11 75% Sc;:~~~i 25 Nov 98 Find Similar anseptoct CC is funded by the City of Portland, Metro, and Multnomah, Clackamas and Washington Counties. RAce INFORMATION Coming in 2000: RACC Professional Development Workshops" Taxes for Artists : Learn about unique tax ... http://www.racc.org/ArtNotes.htm/- size 35.5K "public art": 4 Public Art 74% >.w...........~~~~~il Arbor Lodge Park ARTIST: Peter Helzer DATE: 1996 25 Nov 98 LOCATION: Arbor Lodge Park, Portland, Oregon MEDIA: Find Similar bronze, concrete, slate SIZE: Dimensions of bronze and pedestal: 4'H x 3'L x 2'D Dimensions .~. http://www.racc.org/PublicArt(pA)/PAFactSheet/PAlsi.htm/- size 13.5K "public art": 1 0 7 5% ~~;:;:-t:~! 11 Jan 00 Find Similar Public Art 73% <>:~::~~~:~~~ Rose Garden Arena Complex ARTIST: TIan Averbuch 25 Nov 98 TITLE: The Little Prince: A Three Piece Installation DATE: Find Similar 1996 LOCATION: Rose Garden Arena Complex, Portland, Oregon MEDIA: The Little Prince: '" /r111pnr htm1?('()1=t1~f~111tRTht=f\.Prru..-=.Pr",4--0L ,..,")_. .1..1= __I M04.n/ "'''' 0_ _ __ 0_ _ __ 0_____ __.. n.n.n,. .... ~ n The City of Portland, Oregon Page 3 of3 http://www.racc.org/Pub/ic Art (PA)/PA Fact Sheet/PAfs 5.html- size 17.4K "public artll: 9 :~lt~_~_i._ 1- -.. 10 top .................................................................._...........-.............................................:~............................................................................................................................................... Disclaimer. Site map. This page is maint@.ined by the City Home Page Group (CHPG) and was last updated updated: August 19, 1999 1m lPnT html?(".()l=np.f~ll1t.Rrht=O.Rrnn=.Rrnt=O/,. ??nl1hlir'+~rtO/,. ??lVn~=R.rnC'.=/Vnw= 1000;",? '\/Vw~= 1 1/1 n/OO Public Art Page 1 of2 Public Art Goals The goals of the Percent for Art Program are to: Develop a public collection of artworks which are of the highest aesthetic quality, represent our diverse community, and offer a wide range of artistic tastes and venues, including established and innovative art in the form of permanent and temporary works. Encourage public dialogue about and understanding of works of art and the issues public art may raise. Ensure that public agencies and community representatives play an active role in the selection of art commissioned through the Percent for Art Program. Encourage early collaboration among artists, architects, and engineers. Provide opportunities for artists to play active roles in the revitalization of neighborhoods and redevelopment areas. Provide opportunities for artists to advance their art forms. Encourage the preservation of multi-cultural traditions. Preserve art objects and artifacts displaced through improvement projects. Provide for the proper maintenance of the Public Art Collection. Ensure proper cataloguing of the Public Art Collection. History of Portland Public Art 1980 Multnomah County passed 1 % for art ordinance. 1980 City of Portland passed 1% for art ordinance. 1985 Multnomah County added .33% for maintenance, administration & public education. httn' //urUTUT r~("(" nro!Pnhli"o/...")(\ A riO/", ")(){D A \fD A 01'. "f\~~~l~ T_T:_...___ L...~_l Public Art Page 2 of2 1988 Following A River, a plan for public art in Portland, was adopted as part of the Central City plan. 1988 Bonus Program for Private Developers adopted for Central City Plan. Provides bonus floor area ratio in return for public art contributions. 1989 City of Portland added .33% for above, expanded scope to include more capital improvement projects and instituted Public Art Trust Fund. 1990 Multnomah County expanded scope to include purchase price of existing buildings, EXPO center, and new parks fund. 1994 Blank Wall Guidelines adopted for developers to consider public art as an alternative to meeting the City of Portland Building Code's ground floor window requirements when undertaking new construction and major renovations. 1994 City of Portland adopted public art policy for the Bureaus of Environmental Services Water Works. 1995 Metropolitan Arts Commission became the Regional Arts and Culture Council, a non-profit regional arts agency. Other Public Art Ordinances 1985 Beaverton passed 1 % for Art ordinance to be administered by the Beaverton Arts Commission. 1987 Metropolitan Service District passed 1% for art ordinance. 1987 Portland Public Schools passed a three year 1 % for art ordinance to be administered by the Metropolitan Arts Commission. 1994 Lake Oswego passed 2.5% for Art ordinance to be administered by the Lake Oswego Arts Commission. 1997 Tn-Met passed a Public Art Policy which sets aside 1.5% of certain capital projects for public art. httn://www_racc.orQ/PuhHcO~20ArtO~20(P A )!P A%20GoalsHistorv. html 1/1 n/OO index P-Jr:'~\fS r \/ n I d '> 0.: Ie' 1.'1 U~ '; flrngt'..Jlnx: Link;;, Page 1 of 1 Welcome to the Office of Cultural Affairs .Ut n r JIlIIIIJ~ . In III 1II.M1 rr [Uu~ 111m 11111111 nl Tn III 111_ II r Our Missiol1 As an agency of municipal government, the Office of Cultural Affairs provides leadership and resources for arts and cultural development, enhancing the quality of life through improving the quality of the arts in San Antonio. Contact Information The City of San Antonio Office of Cultural Affairs is hosting this web site to help citizens and visitors experience the many rich forms of our cultural heritage. T 'ce is the local arts agency for San Antonio . pported in part by Texas Isslon on the Arts and the National Endowment for the Arts. Please let us know how we are doing and what we can do to improve our service! ARTS@cLsat.tx.us Telephone (210) 222-ARTS FAX (210) 228-0263 Postal address P.O. Box 839966 San Antonio, TX 78283 Electronic mail Cultural Tourism: ciarrell@ci.sat.tx.us Technical Assistance: ernestor@ci.sat.be.us Arts In The Community: swatchison@ci.sat.tx.us General Information: mguerrero@ci.sat. be. us Send mail to ARTS@ci.sat.txlIus with questions or comments about this web site. last modified: February 251 2000 httn./Iuru"u ,...; C'loIJlt tv" "",IA..,.,..I ~ I' ". I,....,.... City of San Antonio Office of Cultural Affairs-Programs Page 1 of 1 Programs The Office of Cultural Affairs is the official local arts agency for San Antonio established in 1988 as the result of a Blue Ribbon Committee report on the state of the arts in the city. The Office is advised by the Cultural Arts Board, appointed by City Council. The Office of Cultural Affairs current goals are: e To support programs that further artistic excellence and foster public participation €I To increase arts and cultural audiences . To support cultural tourism initiatives as an economic development strategy · To collaborate with other City departments and community groups in the implementation of neighborhood revitalization, economic development and youth initiatives where the arts, artists and cultural activities play integral roles To meet these goals OCA operates the Grant Program, Marketing & Audience Development Program, and assists with the Design Enhancement Program. 1..4.4._.//.______ _~ __A. A.__ ___ '-1_ _ _ I City of San Antonio Office of Cultural Affairs-Design Page 1 of 1 EH~ d.~. The Design Enhancement Policy This policy allows for functional design enhancements to capital improvement projects that reflect the diverse cultural, historic and environmental characteristics of our community. It calls for the formation of community teams to represent a consensus among the community for each project. A slide registry is maintained to facilitate the selection of artists. For more information on this program contact Felix Padron at the, City Artitect Office, (210) 207-4433 or amail fpadron@ci.sat.o<.us Send mail to ARTS@ci.sat.tx.us with questions or comments about this web siteD last modified: February 04, 2000 hUn" //www r.i ~~t ty J1~/r1~r.~/rtP~ian htrn "2/1 ?/(\(\ . HOPKINS CENTER FOR THE ARTS METHODS FOR REIMBURSEMENT OF PART OF CITY FUNDING DECEMBER 10, 1996 FILE: A: \RECOUP. DOC A: \RECPRINT . DOC STAFF REPORT BY JIM PARSONS CONCEPT: The City of Hopkins has commdtted $1,856,000 to the construction of the Hopkins Center for the Arts in 1997. Of that amount, the Hopkins City Council is interested in recouping the $356,000 that was commdtted to the project in 19960 This report analyses various methods of recouping the $356,000 sumo SUMMARY <<his report analyses the following methods of recouping funds committed to he Hopkins Center for the Arts: o General Sales Tax o Entertainment/Ticket Tax o Bar and Restaurant Food and Beverage Tax o Beer and Wine Tax o Liquor Tax o Lodging Tax o Automobile Sales Tax o Tax on Construction o 10% Tax on Charitable Gambling o Special Taxing Districts o Voluntary Contributions: Check-off, Round-up No City may impose a sales tax or income tax unless it has specific statutory authority from the State of Minnesota. This report examines the pros and cons of the methods listed above. Where possible, it also examines the level of tax needed to recoup the target amount ($356,000), and the expiration timeframe for each method. "The report outlines the staff recommendation, which is that the City pursue voluntary contributions from the users of Hopkins Center for the Arts, e.g., audiences, from the residents of Hopkins, and from residents of ~opkins School District 270. The staff recommendation is that the City ~ursue special taxing authority only after the potential for voluntary contributions has been exhausted. METHODS OF RECOUPING CITY COST HOPKINS CENTER FOR THE ARTS staff Report by Jim Parsons TABLE OF CONTENTS Cover Page and Summary 1 Table of Contents 2 Authority: Special Legislation 3 Special Methods: 1. General Sales Tax 3 2. Entertainm~nt/Ticket Tax 4 3. Bar and Restaurant Food and Beverage Tax 6 4. Beer and Wine Tax 6 5. Liquor Tax 7 6. Lodging Tax 7 7. Automobile Sales Tax 8 8. Tax on Construction 8 Residential 9 Commercial 10 Industrial 10 All Construction 11 Trade Contractors 11 9. 10% Tax on Charitable Gambling 12 10. Special Taxing Districts 12 Special Municipal Taxes in ~nnesota 13 Voluntary Contributions 15 Staff Recommendations 16 AUTHORITY: SPECIAL LEGISLATION In Minnesota law, the general rule.is that a city may not enact a local sales or income tax. (See M.S. 477A.016.) To enact such a tax, a city must obtain specific statutory authority from the state of Minnesota. A growing number of cities have received specific legislative authority to impose a local sales tax for purchases made in or received within the city. (See M.S. 297A.46 and M.S. 116.06, Subd. 22.) Only Duluth has a sales tax as a.. revenue source for the city's general fund. All other city sales taxes in Minnesota are dedicated to specific purposes and projects within the city. state law allows cities to require organizations conducting charitable gambling to contribute 10 percent of their net gambling profits to the city. (See M.S. 349.213, subd. l(a) and (b), and M.S. 349.12, subd. 25. ) SPECIAL METHODS 1 . GENERAL SALES TAX Types of Goods and Services Taxable A general city sales tax would the Minnesota state sales tax. groceries, shoes and clothing, goods and services exempt from a city sales tax. be applicable to all items taxable under In general, all goods are taxable except while all services are not taxable. Any the state sales tax would be exempt from Total taxable sales and number of establishments in Hopkins According to the Minnesota Revenue r~partment, there are 789 businesses in Hopkins that remit state sales tax collections to the state (excluding businesses whose data is masked due to data privacy restrictions) 0 In 1995, these businesses transacted total taxable sales or $288,278,890. The total state sales taxes collected in Hopkins in 1995 were $19,024,844. Amount of Tax Needed to Recoup $3561000; Expiration Timeframe In order to collect a total of $356,000 for the Hopkins Center for the Arts via a general city sales tax, various alternative percentage tax and duration combinations are possible: Percentage of Tax 0.01% 0.03% 0.05% Duration of Tax 13 years 5 years 3 years Annual Amount Collected $ 28,800 86,500 $ 144,000 3 2. ENTERTAINMENT/TICKET TAX The city has at least two options in the area of a ticket tax. The City could impose a tax on all entertainment in Hopkins where admission is charged. This tax would affect the Hopkins Center for the Arts, the Mann Cinema 6 movie theater, the Hopkins House theater, some performances at Eisenhower Community Center, and any other venue where admission is charged. Or, the City could tax tickets at the Hopkins Center for the Arts only. Hopkins Center for the Arts A prime advantage ofa sales tax on tickets sold at the Hopkins Center for the Arts is that it would only affect users of the facility. The funds could likely be raised without imposing a formal tax, by simply increasing the rents that tenants and occasional users pay. The issue with such an increase is whether the tenants' customers and occasional users will feel the facility is overpriced and go elsewhere. In general, the City does not expect to set rents high enough to recover the capital cost of the facility. Imposing a ticket tax or increasing rents to recoup $356,000 would be an exception to that position. Child's Play Theater Company Child's Play has approximately 65,000 customers per year, paying about $5.00 per customer. Child's Play has gross annual sales of approximately $325,000. Child's Play Director steve Barberio has objected to the ticket tax idea, because Child's Play is in a competitive, price-sensitive business. A ticket tax would be a new operating cost that would force ticket prices up, Barberio said. He is concerned that a price increase would decrease attendance at performances and thus decrease total sales revenue for Child's Play. Child's Play Theater Attendees from Hopkins Area, Other Communities. The demographic composition of Child's Play Theater's audience is as follows: 27% live in Minneapolis' southern and southwestern suburbs 21% live in Minneapolis' western suburbs 20% live in Minneapolis' northern and northwestern suburbs 10% live in Minneapolis 7% live in Saint Paul and its suburbs 16% either live outside the Twin Cities metro area or purchased tickets at the box office Clearly, the majority of Child's Play's audience is from outside 4 Hopkins. The majority of Child's Play's audience members bring children between the ages of 4 and 11 years old. . Of these families: 93% own their own home 87% are between the ages of 31 and 50 81% are married 74% have four or more years of college education 69% earn $45,000 or more annually Child's Play Theater brings thousands of potential restaurant goers to Hopkins every year, many of whom might not otherwise frequent Hopkins. For affordable, family-oriented Hopkins restaurants, Child's Play Theater is an asset. Moving Child's Play from the Eisenhower Community Center to the Hopkins Center for the Arts downtown will expose audience members to downtown dining opportunities. It would appear that such restaurants as Boston Garden, Big Ten, Papa John's Pizza, Dairy Queen~ Jack Yee's, Kentucky Fried Chicken and others will benefit from their proximity to the Hopkins Center for the Arts and Child's Play Theater. The City of Hopkins may find that there is a tie between businesses that would benefit from the Center for the Arts bringing people to Hopkins and the idea of a restaurant food and beverage tax. Hopkins Mann Cinema 6 Movie Theater According to Hopkins Economic Development Director Jim Kerrigan, the projected cash flow from the Hopkins Cinema 6 Mann movie theater is in large part obligated to cover the debt service for the project, including the city of Hopkins' debt. Kerrigan does not believe that there is projected cash flow available to cover the cost of a ticket tax. Hopkins House Theater Due to data privacy restrictions, it is not possible to obtain from the Minnesota Revenue Department a total sales figure for the Hopkins House theater. As a small commercial theater, Hopkins House Theater is not a likely source of significant ticket tax revenue. Establishments such as Archies, the Eisenhower Community Center theater, etc., might be affected by a ticket tax. Amount of Tax and Timeframe Required Looking only at Child's approximately $325,000, increase are: Percentage of Tax 3% 5% 10% 15% Play Theater Companyis annual sales of possible options for a ticket tax or rent Duration 34 years 22 years 11 years 7 years Annual Tax Collected $ 9,750 16,250 32,500 48,750 5 3. BAR AND RESTAURANT FOOD AND BEVERAGE TAX According to the Minnesota Department of Revenue, there are 45 eating and drinking establishments in Hopkins (available state sales tax data do not separate restaurants from bars). In 1995, these businesses had total taxable sales of $26,938,023 and remitted a total of $1,805,316 to the state in sales taxes. If the $356,000 for the Center for the Arts were to be recouped through a city sales on eating and drinking establishments, possible tax amounts and durations would'be: Percentage of Tax 0.1% 0.2% 0.3% Duration 14 years 7 5 Annual Amount Collected $ 26,900 53,900 80,800 4 . BEER AND WINE TAX On-Sale Beer/Wine The following businesses hold on-sale beer/wine licenses in Hopkins: Wine and 3.2 beer: 3.2 Beer: ABE's Restaurant, China Royal Restaurant, Pros Inc. Minneapolis Park Board, Vie's Red Door Clubs There are four groups with a club license in Hopkins: VFW Post 425, American Legion 320, BPOE Lodge 2221, Oak Ridge Country Club Sales data are not available for on-sale beer/wine establishmeiY~s and clubs.. Beer Off-sale (Wine off-sale is not licensed separately in Hopkins.) There are four businesses selling beer off-sale in Hopkins. They are G & D Express, Kenny's Markets, Mainstreet Market of Hopkins, Minneapolis Park Board. Sales data are not available for off-sale beer and wine. 6 5. LIQUOR TAX Liquor On-sale There are seven businesses with on-sale liquor licenses in Hopkins: Archies Too, Inc., ERW Industries, Lindees Saloon and Eatery Inc., Mainstreet Bar & Grill, Mitch's Tavern, Northern Lights Food, Inc., stone Creek, Inc. Sales data are not available for liquor on-sale. Liquor Off-sale There are nine businesses in Hopkins that sell liquor off-sale. They are Archies Too, Inc., F.T.L. Corporation, Hopkins Liquor, Jim's Liquor, Kotra Inc., Leaman's Liquor Inc., Mitch's Tavern, Richards Liquor Corporation, Wakefield Enterprises Inc. Sales data are not available for liquor off-sale. Because of the lack of sales data, it is not possible to estimate tax collections from .various tax levels. 6. LODGING TAX Current Legislation A city may pass an ordinance to impose up to a three percent tax on the gross receipts of lodging at a hotel, motel, rooming house, tourist court, resort, or city campground. (M.S. 469.190.) The law requires that 95% of the gross proceeds from the tax be used to fund a local convention or tourism bureau for the purpose of marketing and promoting the city. To impose a lodging tax for other purposes would require special legislation. Due to data privacy limits, it is not possible to. obtain official sales data for places of lodging in Hopkins. The Hopkins House and the Hopkins Park Plaza are the only motels in Hopkins. Hopkins House The Hopkins House has 120 rooms. Assuming a 50% occupancy rate at $50 per night, the Hopkins House's sales volume could be estimated at roughly $1,095,000 per year. Percentage of Tax 3% 5 10 Duration 11 years 7 4 Annual Tax Collected $32,850 54,750 109,500 Lodging Tax: Staff Recommendation . staff recommends that the City not impose a sales tax on lodging places in Hopkins for two reasons: 1) the number of lodging places is very small; and 2) the use of the tax proceeds for the Hopkins Center for the Arts is not demonstrably connected to the lodging industry. 7 7. AUTOMOBILE SALES TAX There are at least five dealers of new and used cars in Hopkins, including Rudy Luther's Hopkins Honda, Walser Chrysler Plymouth, Car Credit Sales, Hopkins MotorCars, and Metro Motorcars. Total sales Sales tax data for automobile dealers is aggregated with data for gas stations. Sales of automobile services, e.g., repair, is reported separately. According to the Minnesota Revenue Department, the forty (40) automobile dealers and gas stations in Hopkins accounted in 1995 for total taxable sales of $22,401,373. If the $356,000 were recouped via a sales tax on auto dealers and gas stations, alternative tax levels and durations are as follows: Percentage of Tax 0.1% 0.2% 0.3% Duration 16 years 8 6 Annual Tax Collected $22,400 44,800 67,200 8 . TAX ON CONSTRUCTION There are two possible methods of taxing the construction industry to recoup funds for the Hopkins Center for the Arts: 1) The City could add a surcharge to building permits, equal to a percentage of the permitted valuation; 2) The City could impose a tax on trade contractorsg payable when persons purchased taxable construction goods and services from Hopkins vendors. The City would be responsible for collecting a building permit surcharge, while in the case of a sales tax on contractors, the state would collect the taxes and remit the funds. to . the City. 8 Residential Construction: Tax Via Building Permit Surcharge Amounts and Types of Construction Activity, 1992-1996 As a fully developed community, Hopkins has had only 14 new houses built from 1992 to 1996, for a total value of $1,'657,700. This contrasts with the permitted valuation that can be anticipated from the construction of the Oaks of Mainstreet and Nine-Mile Cove Townhouse projects in the next few years. Those projects, with about 130 total units averaging at least $150,000, will likely generate approximately $20 million in valuation, or $4,000,000 per year for the next 5 years. In only one of the last five years has there been any new apartment construction in Hopkins. Apartments worth $1,330,000 were built in 1993. All other residential construction, such as remodeling ,and additions, has averaged $4,412,730 per year since 1992. Amount of Tax Needed to Recoup $356,000; Expiration Timeframe 1992-1996 Average New Houses New Apartments Remodeling/Additions Sub-Total Plus Townhouses (future) Total $ 331,540 266,000 4,412,730 5,010,270 4,000,000 $9,010,270 Projected Annual Residential Construction, 1997-2001 Assuming that this projected construction activity could be taxed via a building permit surcharge, and that only residential construction would be taxed, then taxation options would be as follows: Percentage of Tax 0.3% 0.5% 1% Duration 14 years 8 4 Annual Tax Collected $27,030 45,050 90,100 Builders Involved Residential builders in Hopkins can be expected to object to a tax on construction or permit surcharge. They will likely point out that the Hopkins Center for the Arts is not related to their industry. The Builders Association is active at the legislature,. and would likely lobby against any proposed special legislation to impose a tax. 9 Commercial Construction: Tax Via Building Permit Surcharge Amounts and Types of Construction Activity, 1992-1996 In four of the last five years, additions to commercial buildings have accounted for the largest share of the construction activity in commercial buildings in Hopkins. From 1992-1995, commercial additions accounted for $3,540,100 per year on average, while new commercial buildings accounted for an average of only $507,900 per year. This pattern was reversed in 1996, with $6,752,000 in new commercial buildings and $4,547,133 in commercial additions. Amount of Tax Needed to Recoup $356,000; Expiration Timeframe Commercial Buildings: Pe~itted Valuation, 1992-1996 Average New Buildings Additions Total $1,756,720 3,741,500 5,498,220 Average Annual Commercial Construction, 1992-1996 If this construction activity were taxed via a building permit surcharge, and if only commercial construction were taxed, then taxation options would be as follows: Percentage of Tax 0.5% 1.0% 2.0% Duration 13 7 4 Annual Tax Collected $ 27,500 55,000 110,000 Industrial Construction: Tax Via Building Permit Surcharge Amounts and Types of Construction Activity, 1992-1996 There have been no new industrial buildings in Hopkins in the last five years. Additions to industrial buildings have accounted for $1,267,600 per year in valuation for the last five years. Estimates of the amount of commercial/industrial development expected in the re-development of the 40+-acre Hennepin County site range from $50 million to $100 million. It may take from 5 to 10 years for the site to be fully re-developed. For the purpose of the following estimate, assume that the re-development adds $50 million in industrial construction over a 10-year period, beginning in 1999. Industrial Buildings: Permitted Valuation New Buildings Additions County Site (future) $ 0 1,267,"600 5,000,000 1992-1996 Average Average Annual Industrial Construction, 1999-2008 Projected Annual Total $6,267,600 10 If industrial construction activity were taxed via a building permit surcharge, and if only industrial construction were taxed, then taxation options would be as follows: Percentage of Tax 0.5 % 0.75% 1.0 % Duration 12 8 6 Annual Tax Collected $ 31,300 47,000 62,700 Tax on All Construction Via Building Permit Surcharge If the tax were imposed on all construction in the form of a building permit ~urcharge equal to a percentage of permitted valuation, then the taxable totals and possible tax amounts and durations would be as follows: Projected Annual Construction, 5-Year Period (Rounded) Residential Commercial Industrial $ 9,000,000 5,500;000 6,300,000 1997-2001 1999-2003 TOTAL $20,800,000 The following tax levels and durations could apply to the $20,800,000 projected annual construction amount: Percentage of Tax 0.1% 0.3% 0.5% Duration 18 years 6 4 Annual Tax Collected $ 20,800 62,400 104,000 Sales Tax on Trade Contractors The construction tax could be applied not as a percentage of permitted valuation, payable as a surcharge on building permits, but rather as a sales tax on trade contractors. A dozen trade contractors as a group accounted for $5,822,399 in taxable sales on 1995 in Hopkins. If the sales tax were applied to that industry, the tax levels and durations would be as follows: Percentage of Tax 0.5% 1.0% 2.0% Duration 13 years 7 3 Annual Tax Collected $ 29,100 58,200 116,400 11 9. 10% TAX ON CHARITABLE GAMBLING Current Legislation and status in Hopkins Minnesota law allows cities to impose a 10% tax on the net profits of local charitable gambling operations. Cities may use these funds for any charitable purpose. The Hopkins Jaycees, the Raspber.ry Festival and other organizations operate charitable gambling venues in Hopkins. The city requires that all charitable gambling operators in the city be Hopkins-based organizations. Charitable gambling operators in Hopkins are significant donors to a wide variety of community groups, including the City of Hopkins itself. The Hopkins Jaycees have committed $100,000 to the Hopkins Center for the Arts. It is not clear that a 10% tax on charitable gambling would raise more money for the Center for the Arts and/or other City uses than is already being contributed. 10. SPECIAL TAXING DISTRICTS Downtown Hopkins As has been done in Minneapolis, the City could through special legislation from the state establish a special taxing district downtown for any of the sales taxes under consideration. Tax Increment Financing The city is utilizing tax increment funds generated by the downtown re-development tax increment district and other districts. Under current law it is not possible to capture new increments via new or expand districts and use the funds for the Hopkins Center for the Arts, because state restrictions on eligible uses have been increased since 1990. Special Assessments It is most likely impossible to use special assessments to recoup funds to be spent for the Hopkins Center for the Arts, because of the likelihood of appeals by property owners and the increasing reluctance of the courts to find benefit to private property from public improvements. 12 SPECIAL MUNICIPAL TAXES IN MINNESOTA Nine Minnesota cities and two counties have received special authority to impose local sales taxes. They are: Bloomington Cook County Duluth Mankato Minneapolis Rochester Saint Cloud Saint Paul Scott County Two Harbors Winona Rate 6% 5% 3% 1% 2% 1% 1% 4% 6% 0.5% $20 0.5% 3% 6% 3% 3% 3% 3% 0.5% $20 5% 1% 0.5% 3% 6% $0.25 1% 1% Tax Base Lodging Liquor and beer Admission to spectator events State sales tax base Lodging in Lutsen, Tofte, Schroeder State sales tax base Certain food and beverages Lodging Lodging - 30 or more rooms State sales tax base Per motor vehicle sold at retail State sales tax base Lodging Lodging - more than 50 rooms (cumulative tax on lodging in Mpls. cannot exceed 12% by law) Admissions, amusements, lodging On-sale liquor and beer downtown Restaurant food downtown Lodging state sales tax base Per motor vehicle sold at retail Lodging Certain food and beverages State sales tax base Lodging Lodging - 50 or more rooms Per paid admission to large amusement places Lodging Lodging Revenue Collections from Special Local Taxes (Data are from 1993) Bloomington Duluth Mankato Minneapolis Rochester Saint Cloud Saint Paul Winona Cook County Scott County $ 8,252,000 9,940,000 1,762,000 31,029,000 7,653,000 1,259,000 3,437,000 159,000 245,000 287,000 13 The Minnesota Department of Revenue administers the local taxes for Mankato, Minneapolis, Rochester, Saint Cloud and Saint Paul. Other cities and counties collect their own taxes. Who Pays: Purchasers of taxable goods and services. Who Remi ts : Holders of local sales tax permits. Due Dates: The 20th of the month following the sales month. History of Major Changes (See attachment) state Agency Recommendations The Minnesota Revenue Department recommends that local option sales taxes have a uniform rate applied to the state sales tax base, and that the state administer the tax (policy from Model Revenue System for Minnesota, July, 1992) 0 The state Revenue Department comments on local sales taxes as follows: "Whether or not the Department of Revenue administers a local tax depends on the specific language passed by the Legislature. Sometimes the Department is mandated to administer a local sales tax and other times it is optional. The Department prefers to administer most local sales taxes if possible, for the convenience "of the taxpayer. As of June, 1995, Duluth is the only city that administers its own general sales tax. "The enabling law also usually allows the Department to recover its administrative costs. In the past, the Department has charged local units of government for systems development, overhead, auditing, processing, etc. These costs are generally based on the amount of tax being collected and are approximately two percent (2%). The systems costs are generally one-time start-up costs and can run from $8,000 to $10,000. The Department typically transfers the money to the locality once per month via electronic funds transfer. "Generally the Legislature looks at the rate and purpose of a proposed local tax when deciding whether to grant authority. In the past, the Legislature has tended to allow only local taxes that were designed for specific projects and not for general operating budget money. This trend is changing somewhat, and" it is difficult to tell exactly what the Legislature's criteria are for granting local taxing authority." . 14 VOLUNTARY CONTRIBUTIONS An alternative to special taxation .for the Center for the Arts is voluntary contributions. The City is in a unique position to solicit contributions from the Hopkins community, in part because the city sends regular mailings to nearly every Hopkins resident and business. Of course, the Center for the Arts capital campaign is currently under way. It is the joint effort of about 60 volunteers on a variety of committees. The City's fundraising effort would be more efficient if it were coordinated with the volunteer capital campaign. After the Center for the Arts is built, supporters may create a private foundation to conduct on-going fundraising to underwrite a range of permanent and/or programmatic enhancements at the Center for the Arts. The City may wish to coordinate its fundraising effort with such a foundation. Regular Mailings The City currently sends out at least two documents to residents and businesses on a regular basis. These mailings could provide the City will a cost-effective means of soliciting contributions to the Center for the Arts, not once, but on a regular basis until fundraising goals are met. The City sends utility bills quarterly to 5,000 accounts (residential billings are staggered so that one-third of all residential accounts is billed in a given month. Commercial accounts are billed monthly). The postage on the utility bills is 2905 cents per bill. The City sends the Hopkins Highlights newsletter six times a year to all Hopkins residents and businesses. The Highlights newsletter is sent as unsorted bulk mail. utility Bill Check-off or Round up to Nearest Dollar At least two methods of solici ting contri:t.:1tions via the utili ty bill are conceiveable. One would be a voluntary check-off modeled on the check-off for non-game wildlife on the Minnesota income tax form - the well-known "chickadee check-off." The other is a method used by utility companies and others to solicit contributions by asking the customer to round his or her bill up to the nearest dollar. The round-up amount is devoted to a particular use, e.g., the Hopkins Center for the Arts. The check-off for the arts has the advantage of being a single flat amount, such as one dollar, on every payment. However, there are problems with adding a check-off to the utility bill using the current software and bill format. The bill is printed into a pre-sealed envelope, so stuffing a letter of solicitation in with the bill is not possible. The bill is itemized by code with amounts due for the various services, and shows a total amount due. The check-off would make the amount paid different from the amount due. (Some customers pre-pay part of their account, and a check-off could confuse the accounting of credit balances. ) 15 The Finance Department is looking at new billing software for 1997, and may consider packages that would provide the capability to administer a voluntary check-off. The Hopkins Highlights postage rate is determined by how many pages are in the newsletter, so adding regular material to solicit contributions to the Hopkins Center for the Arts would increase the cost of postageo The Highlights is not a bill, so readers are not already writing a check to the city of Hopkins. still, the Highlights newsletter provides a means of placing a regular solicitation for voluntary contributions before the residents and businesses of Hopkins. A related issue is that of reaching residents of cities surrounding Hopkins with solicitations for contributions to the Hopkins Center for the Arts. The residents of the Hopkins School District are likely contributors to the Center. The possibility of mailing regular solicitations for voluntary contributions to school district residents should be explored with the District 270 staff. STAFF RECOMMENDATIONS Staff recommend that the City pursue voluntary contributions to the Hopkins Center for the Arts construction account after the volunteer capital campaign is complete, which should be at the same time that the Center is opened in Fall, 1997. The City should consider making regular solicitations to Hopkins residents, Hopkins School District parents and residents, and Hopkins area businesses throughout the first year of operation of the Center in order to recoup the target amount of $356,000. If voluntary contributions to the construction account do not amount to $356,000, then the city should consider a special sales taxo Because the benefit of the Center for the Arts is widespread but indirect, staff recommends that the City consider a general sales tax on the state sales tax base, devoted to the Hopkins Center for the Arts construction account. iii# 16 History of Major cm.n~ 1969 - Minneapolis imposed a 3 % tax on admissions. amusements, and tranSient I dging. 1970 ~ St. Paul, Duluth, and BloomingtOn imposed :1 .3 % taX on transient lodging. 1971 -- R~hester imposed a 3% taX on transient lodging. - Local governments prohibited by scare law from imposing or increasing sales or income rAxe..~. 1973 - Duluth authorized to impose a 1 % general sales laX. 1 fJ77 - Duluth authorized to impose a 2 % tax on restaurant sales of meals and drinks. 1979 - St. Cloud authorized to impose a 3 ~ lodging tax. - Metropolitan Sports Commission lodging and liquor taX authorized. 1980 - Duluth exempted from prohibition against increasing rates without legislative approval. 1932 - St. P2ut authoriZed. to impose a lodging taX of 3 %. At lc:ast 2S" of che proceeds to pay die debt service on the civic center parking ramp. 1983 - Authorized any city to impose a lodging tax of up to 3 % for tourism promotion. - Rochester authorized lO impose a genera! sales tax of up to 1 % and an excise tax of up to $20 per vehicle sold at retail. 1985 - Extended EO towns the authority to impose a local lodging taX of up to 3 % for courism promotion. 1986 - Minneapolis authorized to impose these raxes fOf convention center funding; a 0.5 % general wes and use taX; a 3 % sales tax On liquor and beer and on restauram food (downtown only); and an additional 3 % lodging taXon facilities with mo(C dum 50 rooms. - St. Paul authorized to impose an additional 2% taX on transieru: lodging facilities with SO rooms Of more to fund a convention bureau. - BloomingtOn authorized to impose a 1 % general sales taX within a designated. special district. The city also authorized to impose a S % lodging taX and a 5 % sales tax on liquor and beer. - St. Cloud. aUthorized to fund a convention center by imposing il 1 % sales taX aD (;crWn food and beverages and. an additional 2 % lodging taX. 1981 - Bloomington authority to impose 3. 1 % general sales tax ICpc:aled. - Cook County lodging tax in certain towns authorized. - Sc:oct County admission taX authorized. 1989 - Rate for the generally-aurborized transient lodging taJ( increased from J % to 6%. with the first 3 % dediClted for toUrism promotion. 1990 - Rate for gc:nerally.aumorized lodging tax reduced from 6% to 3% - Bloomington authorized Co impose an additional 1 % lodging 13:t. 1991 ...... Mankato authorized to impose a general sales tax of 0-5% and a $20 excise tax pel" mocor vehicle sold at retail. Prcxeeds to fund the Riverfront 2000 Project. - Winona. authorized (Q impose a lodging cax of 1". Half Qf proceeds for a specified projc:ct: the ba.lan~e for tourism promotion. - S[. Paul's audturity to impose an additional lodging tax on a business with SO or more rooms increased from 2 % to 3 %. 1992 - Brooklyn Ctmer authorized to impose a I % tax on restaurant food and. oo.sa1e liquor. PrOO:eds to fund low-income housing lJrojectS. (Tax not imposed because referendum failed). - Ely authorized. to impose a general sales tax of 1" ~ an excise tax of $20 per motor vehicle sold at retail. Proceeds to fund the Ely Wildem~ Gateway project. (tax not imposed because referendum failed). - Rochester authorized to impose a general sales and use tax of 0.5 % and an excise tax of $20 per motot vehicle sold at retail. Proceeds for specified apical improvements. (On 111/93 replaCe4 expirecl 1 % tax). - RoseviUe authoriZed to impose a 2% rax on lodging. Proceeds to fund a multi-use speed skating and bandy facility. (fax not imposed because it was not placed on the ballot.) - Thief River Falls aumorized to impose a genctal sates tax of 0.5% and an excise tax of $10 per motor vehicle sold at retail. Proceeds to fund me .Area Tourism. Convention Facilities. (Tax not imposed because it was not placed on the balloL) 1993 - St. Paul authorized to impose a general sales l'.3.X ofup to 0.5% by resolution of the city council. Proceeds to fund the expansion and remodeling of the St. Paul Civic Center complex and capital projtd:S to fUrther residential, cultural, commercial, and economic development downtown and in the neighborhoods. (Implemented 9/1193) Cook CountY authorl%ed to impose a gene:tal sales tax of up to 1 % by referendum. Proceeds to fund the expansion and improvemCltt of dte North Shore Hospital. (Approved, effective 111194) Garrison authorized to impose a general sales tax of up to 1 % by referendum. (Tax not imposed) 1994 - Two Harbors authorized to impose by ordinance a tax of up to 1 % on rtansient lodging. Ptocceds co be used for preservation and display of the tugboat Edna G. (Implemented 4/1/94) .-:[) /' ~F~~ .E(~ c-c ~ '{.\i {A t-c- f;-c: V\ l-\t '>lQ,... ;ltfb 51-- Ax ;J q 3'-;' - C "?c'S- How Mayors and City Govemments Support the Arts: Innovative Financing Techniques and Strategies The United States Conference of Mayors FOREWORD The arts and culture contribute immeasurably to the q~1ity of life and to the economic fibe! of our urban communitie~. Recogruzlng-tne centrallmporfance of the arts, mayors across the nation exhibit . outstanding resourcefulness in finding methods to finance arts programs, community arts events, arts centers, artists, and arts organizations. This publication describes a variety of financing techniques and strategies devised by city governments and made possible because of the advocacy of mayors. The major goal of the book is to highlight these financing methods so that other cities and other mayors can evaluate and use those that seem most appli- cable to their own cities. Mayors face difficult public policy choices. In times of decreasing financial resources and increasing expenditures, mayors must balance the demands of the public for fire and police protection, water and sewage, garbage disposal, business and industrial strength, and other essential services. The task is never easy. This study of innovative financing techniques for the arts, carried out by The United States Confer- ence of Mayors with support from the National Endowment for the Arts, was conducted with the hope that the findings will make easier the Mayor's difficult task of finding support for that which lends color, hope, ana exd~1UCuL tv 000 Ii v e;,-lhe arts and culture. - . - - The United States Conference of Mayors expresses its appreciation to the National Endowment for the Arts for its support of the project. The Conference of Mayors is gTateful to the many mayors who lent their cooperation to this study and who have the courage to fight for our heritage, our culture, and all those artistic treasures that nurture our spirit and bless our lives. . Arthur J. Holland Mayor of Trenton Presiden t of The United States Conference of Mayors Juanita Crabb Mayor of Binghamton Chair, USCM Committee on the Arts, Culture, and Recreation . HOW MAYORS AND CITY GOVERNMENTS SUPPORT THE ARTS Chapter I Introduction In Albuquerque, New Mexico, voters ap- prove multi-million dollar bond issues to expahd the Albuquerque Museum of Art and add to its collection. In Seattle and about 50 other cities, the city government sets aside one percent of public construction costs to provide arts through- out the city. The Los Angeles city government provided buiiding rights to developers of the $1 billion California Plaza Development in down- town Los Angeles in exchange for construction of a new building to house the spectacular $23 million Museum of Contemporary Art. In other cities, special taxes are levied, with their pro- ceeds dedicated to the arts, and sneciaLordi- nances are passed to make it ~asier for artists to ~ork and live in decaying industrial districts. .- These are only a few of the ways in which cities now help the arts. It was not always so. The Wall Street Journal noted in a 1976 article that cities were just beginning to support the arts with more money and by establishing more city arts councils. Just twelve years later, hundreds of cities have arts agencies, and city 'and county govern- ments across the country are involved in an array of arts-support programs that can be diz- zying to comprehend. .The current level of local government funrling for the artc: p1(ceeds the 'combined budgets of all state arts ag-encies and the National Endowment for the Arts. In re- 'sponse to the growing populanty ot every art form from ballet to poetry readings in poor neighborhoods, cities make contributions to the arts through financing techniques that were unheard of in the arts field a few years ago: percent-for-art programs, hotel/motel taXes, gift catalogs, loan guarantees, revolving funds, and many others. In addition, more and more cities have begun to make the simplest and most traditional commitment to the arts: appropria- tions from general revenues for re-granting to arts institutions, community arts groups, and special arts programs. nurine- these same years. m~yors and other ci officials have been called upon to assume a more subtle. but 0 n equ po t ro e: promoter of arts. Mayors often play leading Toles in campaigns for passage of multi-million dollar municipal bond issues and direct their staffs to make sure the arts get their proper place in every part of city liie from downtown office buildings to public housing projects. And the mayors of the 1980' s encourage business and other private sector groups to use their resources to help the arts. Mayors have assumed critical roles in pro- moting both the smallest and the largest cul- tural undertakings. When Charleston's Spoleto Festival of classical music was threatened by internal disputes, Mayor Joseph P. Riley, Jr. personally took control of festival planning, a move that was widely credited with overcoming difficulties that could have scuttled the festival. In 1976, less than a year before it was slated to open, Spoleto's executive director, chairman, and half its board of directors resigned over financial and organizational problems. Riley assumed the chairmanship of the festival plan- ning committee and worked nearly full-time for almost eight months on festival planning, pub- licity, fund raising, and securing city appropria- tions. mtirnately, Spoleto proved a resounding success. Arts leaders have also come to recognize publicly the role that mayors and other political leaders now play in getting new arts initiatives off and running. Mayor Federico Pena of Denver made the arts a major component of his first mayoral campaign by promising to form and finance a local arts agency. In office, he estab- lished the Denver Commission on Cultural Af- fairs. The mayor appoints its fifteen-member board and supplies funding for its staff. The mayor also supported a $31 million bond issue to complete the Denver Performing Arts Complex. "The city has gone from 'no state of the art' to a 1 ~. real un derstanding of what the arts can do," said Greg Geissler, fonner Director of the Denver Commission on Cultural Affairs. "The mayor emphasized the arts, but he was pragmatic. He saw the arts as a real animator of the city." City initiatives in the arts are so new and have grown so fast that both elected officials and arts leaders sometimes express surprise that they are working together ~ But the reasons are ~ear: the newly-discovered understanding of the role of the arts in a city's ec.onomic develop- ment and the increased..poDularlty of every art form sUlce- the 1960's. ~e _~~rious question in most CIty governments today is not whether to support ~e aTts,~t wh~ch techniques make the most sense art~_stica~ly! economically, and polIti- cally. ~ Economic Benefits >r. Economic development officials have long recognized the value of the arts in attracting tourism, recreation and convention dollars. The growing recognition of the arts as an integral element in the economic vitality of a city goes much deeper, however, and has its roots in the deep societal and economic changes that have taken place in the United States in the postwar era-the movement to the suburbs, the develop- ment of the post-industrial economy and the higher educational level of the Americanpeople. . Older citi~c: pan-b9n~fH from a stronger arts presence because the arts and entertainment 'attract tounsm, convention and recreation dol- ~~s, bringp~oi~o~~~_~ the eve~ings and on the ,!eekend~gen..erate sales for other city . businesses and_ work ~ improve a city's overall ima~e. J3y virtue of their already substantial investments in arts facilities and their concen- trations of artists and organizations, many cit- ie~ have in the arts a significant base for future development. Economic development officials see increased arts inve'stments in older cities as an efficiency measure. "You cannot have the infrastructure investments in downtowns-in fire and police departments or water and sew- ers-if the city opens up at. 8 o'clock in the morning and closes at 5," said one federal offi- cial. A number of economic development studies have shoWn that the arts are vital to attracting the increasing number of footloose industries- businesses that can locate anywhere in the country-and professional services, and in help- ing local industries recruit high-quality execu- tive talent. As the economy has expanded from agriculture and heavy manufacturing to high technology and services, traditional location criteria such as proximity to raw materials and markets have fallen by the waysid~, and busi- .nesses are placine- a ereater priority on locating ,in areas that are attractive to their employees. For the younger generation of workers, the most highly educated that the United States has ever produced, the arts are an important attrac- tion. Perhaps the most famous and authorita- tive of economic development studies was con- ducted by the. Rand Corporation, which found that the quality of local amenIties, InCluding cultural facilities, plaved a bie:e:er role in execu- tives' bUSIneSS location decisions than did lOCal tax abatements. When the-Congressional Joint Economic Committee surveyed businesses in ten cities, it found that "cultural attractions" were cited by three-fourths of all firms as among the factors that either encouraged (44 percent) or strongly encourage (32 percent) them to stay or expand at their current location. .."A city's quality of life is more im ortant than business-related factors," r the study conclu e. recommen at eco- . nomIC development strategies be part "of a comprehensive effort to upgrade the quality of life in the city." Partners for Livable Places, a Washington research organization, has corne to call the local facilities the "amenities infrastructure" and has in fact warned older cities that if a city allows cultural facilities to deteriorate, it "loses much that makes it attractive." Partners' report, The Economics of Amenity: Community Futures and Quality of Life, further charged that "as ameni- ties grow more important for urban develop- ment, that loss may be counted in dollars lost to the local economy as well as in a declining quality of life." ~ Arts development may be even more impor- tant to younger towns that are trying to attract the "footloose" industries. And the job is even tougher since many younger cities must try to develop an arts community relatively quickly, while lacking a traditional base of private sup- port. Most Sunbelt cities, while growing rapidly , "have 8 credibility problem" because they lack important cultural institutions to give them national identity, said Phoenix Mayor Terry Goddard, who has pushed plans for a large downtown arts district in that city. "It's not the 2 streets or the fire and police departments that make the competitive distinctions between cit- ies. mtimately, it's going to be the opera and the art museums that are the extra commodities that make people want to live there~" San Antonio's "Target '90" high-technology development plan makes the arts a top priority. Among the explicit goals for the arts: to make the San Antonio Symphony one of the ten best in the country, establish the city as the nation's center for Hispanic visual and performing arts, develpp a first-class ballet company, enact a long.term plan for the city's museums, and, make the San Antonio Festival, the city's annual 23-day event, an international attraction. For the majority of cities, the greatest poten- tial for the arts lies in these general economic development benefits. Sizable, direct, and immediate net economic benefits from the arts themselves are unlikely in many cities because they lack either the concentration of arts, as in New York City or Los Angeles, or because they are not tourist magnets, such. as Charleston's Spoleto Festival. "The true significance of the arts in economic development may not lie so much in the quantifiable direct and indirect effects on the economy of a community as it does in the improvement and attractiveness of the city and center city ," wrote David Owi, an expert on the economics of the arts. "While defying easy quantification, the arts are important in promoting the region and its image as location for businesses and residents," said a 1983 study by the Port Authority of New York and New Jersey. To the extent that exist. ing businesses are influenced to continue oper- ating in this region or that new businesses choose to locate in the New York.New Jersey area in part due to the arts, then thousands of additional regional jobs and billions in business revenues are strategically dependent on the well-being of this particular element." A few analysts have warned against over- stating-the economic value of the arts. AJohns Hopkins University analysis of the economic impact of the arts and cultural institutions in Baltimore concluded that reductions in their- budgets would hurt employment, income and business volume in the city, but also stated that government spending for the arts is no more "desirable" or beneficial than for other programs. And public administration expert Dick Netzer has said that "it is quite improper to ascribe to the arts the economic benefits of visitors who in rea.lity are attracted by entirely different attrib- utes of the urban area-gambling in Las Vegas, the centrality of Chicago, the beauty and spar- kling ambience of San Francisco, the monumen- tal structures and government activity in Wash- ington, the business opportunities of Houston and the Twin Cities-and happen to visit a museum or go to the theater." Such "mercenary arguments for the arts,"N etzer warns, "are both wrong and vulnerable to ridicule and backlash." The Arts As Industry The general economic benefits of the arts do not mean, however, that public officials can ignore the economic value of the arts them- .selves, even in relatively small towns. A large body of material documenting the size and impact of local arts "industries" exists to guide those decisions. According to a National Endowment for the Arts study, in eight of the nation's largest cities, paid attendance at cultural events and museums actually tops paid sports attendance. The symphony outdraws professional football in ten cities and hockey in seven cities. In Houston and New York, more people go to the opera than to football or hockey games. In recent years, attendance at art events bas grown faster than at sporting events. In re- sponse to the higher educational level of the American public and the spreading of the popu- lation to the South and the West, the number of museums and professional performing compa- nies has mushroomed. Between 1965 and 1985, the number of major professional orchestras (with budgets over $100,000) rose from 58 to 175, and professional opera companies, dance companies, and theaters grew at a similar or faster rate. A 1980 report found a total of 4,609 museums in the United States, half of them established since 1960-a new museum every three-and-one-half days for twenty years. Folk arts and crafts have gro~ atas~milar'pac~-,-and Uie arts have moved aW8Lfromtheir elitist Image an~performance Jlal1s~su&;;ii4ma:!! tOwns an rur~1 areas wh~they h~- tracted l1ugeJ_-r:te.w ~udiences. . - .- .Reports of the economiCfmportance of arts institutions come from all over the country. In a 1978 economic impact study done by the Greater Columbus (Ohio) Arts Council (GCAC) in con- junction with the National Endowment for the Arts, Columbus' six largest arts organizations reported over $6 million in direct spending for 3 goods and services, salaries and wages, audi- ence spending, and guest artist spending. Sec- ondary business income generated by these organizations was $10,500,000, including the creation of 574 additional jobs in the Columbus area, for a total economic impact of$16,876,000. Current direct spending alone is now in excess of $15 million. As a result GCAC is now updating the 1978 study. While few regional assessments of the eco- nomic impact of the arts exist, a 1980 study of New England by the New England Foundation for the Arts found that the arts provided about 7,000 full-time and 36,000 part-time jobs in the region. The 2,830 cultural organizations counted, the report concluded, comprised a $560 million industry, which, taking into account secondary economic benefits, generated more than $1 bil- lion annually. The arts groups also generated $10 million in federal income tax revenue and $2.7 million in state taxes. New York City illustrates the massive im- pact a . large arts industry can have on a local economy. The Port Authority study fOWld the arts were a $5.6 billion-a-year industry in the New York-New Jersey metropolitan area, gen- erating more than $2 billion in personal income and 117,000 jobs. About 64 million people a year take advantage of the arts in. the region, the report estimated, and the 13 million out-of-town visitors the arts attract account for about $1.6 billion in spending. Tourist spending arid direct expenditures by cultural institutions alone pro- duce about $150 million in local income and sales taxes. Expenditures by arts groups and patrons, the Port Authority said, were particularly im- portant to other industries, including real es- tate, professional services, wholesale and retail trade, eating and drinking establishments, ho- tels and personal services, utilities and trans- portation. The arts are "an engine of sustained activity and growth" and "one of the most pro- ductive industries in the metropolitan region," the report concluded On a smaller scale, many cities have also seized upon arts to tap the lucrative tourist market which generates $160 billion in annual spending nationally, directly supports jobs for five million people, and contributes $16 billion a year in federal, state, and local taxes. The drawing power of the arts for both tour- ists and suburbanites has been well-documented. The Treasures of Tutankamun exhibition, for instance, drew 1.3 million people in Seattle. Only 18 percent of those who attended the exhi- bition lived in the metropolitan area. A 1980 National Endowment for the Arts study of 44 cultural institutions across six cities found that suburbanites and tourists made up more than half of the arts audience. It estimated that tourists spend as much as $160 per person while visiting a city and that loeal spending associated with. the arts in the six cities gener- ated $3.3 million in local tax revenues ~exclud- ing the impact arts facilities had on adjacent property values. Arts festivals, which many cities have taken a strong role in encouraging, either by direet sponsorship or by donating manpower and serv- ices, generate immense spending in local econo- mies as well. In 1987, Charleston's renowned Spoleto Festival, a multi-disciplinary arts festi- val, had an estimated $53 million impact on the city's local economy. This figure includes ticket sales, concessions, food and lodging expendi- tures by tourists' , salaries and artists' fees. Year round, the arts industry in Charleston gener- ates approximately $75 million in salaries, 10,.. cally purchased services by arts organizations and patrons. Roughly 4,000 people are em- ployed by the local arts industry on either a full- time or part-time basis. The similarly popular Memphis in May Festival has paid off handsomely for that city. The five-week-Iong festival includes perfonning and visual arts events and exhibitions. A study of the festival conducted by the U. S. Travel Data Center found that 83,000 of the 800,000 people who attended the festival in 1984 were from outside the Memphis area. The tourists alone spent $12 million locally, generating $2.4 mil- lion in wages and $229,000 in local tax revenue. Taking secondary economic impact into account, the festival resulted in a total of $25 million in retail sales. In addition to economic activity, Memphis also documented the publicity the festival gen- erates for the city. In 1985, media messages about the festival reached 20 million people, and 42 publications with circulations over 100,000 reported the Memphis in May festival. The Arts As A Revitalization Tool Ever since the construction of New York's Lincoln Center on its deteriorated Upper West Side in the 1960's, major cultural facilities have ... . 4 been used as anchors in urban recleveloprti~nt $IDorts. The Lincoln Center project has often- been criticized in recent years for also setting up the model of displacing residents, but its eco- .nomic and redevelopment efforts are undeni- able: in the center's first twenty years of opera- tion, some $1 billion in new construction was undertaken in the surrounding area, and the movement ofhigher income people into the area has been unceasing. Much smaller cities have adopted the Lin- coln Center model or a more modest variation of it. The arts rovide si mcant development .benefits, according to ewi, inclu '. g: retainmg aowntown retail trade, enlivenIng prOjects WIth '(faytime and nighttime activities, boosting the city's image, creating markets for new business, and encouraging new private investments from suburban to city locations. 'The developers of mixed-use projects are making the natural connection with the arts, and the arts community, faced with shrinking budgets, is looking for cooperative ventures," according to the Urban Land Institute's Devel- . opment Review and Outlook: 1984-1985. "So office buildings become art galleries. Retail marketplaces transform into performing arts stages, and plazas and museums host concerts. The arts not only decorate new projects, but also create enVIronments ~~~~ attract people wllling to spe.J1d tiD;1e and money." The Institute, which . represents the development industry, said the arts "are neither frills nor expensive add-ons, and in fact help establish a successful market image." Reco~izing the p!:'!:rn.i!len~e of the arts_ in . City. developmentplansa ::ors around the .~ountry have reorganize . e~onomic .d~vel- opment agencies and olanning.-.deDartments to Include arts. agencies. In St. Paul, Minne'sota, Mayor George Latimer housed the city's arts agency within a combined department of plan- ning and economic development. Baton Rouge, Louisiana's Mayor Pat Screen includes the arts in the city's planning process, a commitment which led to a major role for arts projects in the Baton Rouge 2,000 strategic downtown develop- ment plan. In downtowns and industrial areas which lost offices and factories in the 1960's and 1970's, city governments have combined the people- generating insurance of cultural facilities with public investment to lure private developers. }nLouisvillp. T{eRf-nl'~26millio.n in pubIic-." ~money was invested to construct the.:.Kentuckv ~Center for the Performing Arts, which oJ!~l)ed in Louisville in 1984. The center houses the Lou- isville Orchestra, the Louisville CiVic Ballet, the 'KentuckY Opera Association, and the Louisville \Jhildren's Theater~.Among the center's objec-: tives are boosting tourist spending in the city and spurring revitalization of the northern sec- tion of the center city. Several other cities, including Cleveland, Dallas and Pittsburgh, are using cultural dis- tricts to undergird their downtown redevelop- ment programs. Cleveland's 50-acre Playhouse Square redevelopment, which involved the reno- vation.ofthree historic downtown theaters and office retail structures, has been underwritten by federal, city and county funds as well as private contributions. The city estimates that when it is fully operational, the performing arts center will attract more than one million pa- trons a year and generate $35 million a year in new consumer spending in the city. The center itselfwill produce more than 200 full-time jobs, and more than 1,500 new jobs in the theatre district. So far, foul" major corporations have relocated in offices in Playhouse Square. A $40 million, 275,000 square feet office building is scheduled to break ground in March 1988. Later in the year, construction is expected to begin on a 192-room luxury hotel, and an $8 million, 750- car parking structure will be completed. Dallas' "master plan" calls for the city to provide three-quarters of the cost of land acqui- sition and 60 percent of the cost of construction for new cultural facilities in the sprawling Dal- las Arts District.. Since 1975, the city has used federal Community Development Block Grant (CDBG) funds and municipal bond issues total- ing$66.2 million for 12 cultural facilities in the district. The public monies have been matched by $66.6 million in private donations and invest- ments. By the--time the project is completed in the late-1990's, it is expected to have attracted investment of more than $3 billion. The mixed- use project on the northeastern edge of the city's old central business distric~ will provide space for Dallas' major cultural institutions along with 15 million square feet of office, hotel, retail, and residential space over a twenty-block area. The city estimates the district will provide jobs for 30,000 people and add $1.5 billion to Dallas' tax base when completed. Pittsburgh's $35rnillion renovation of the sixty-year-old Stanley Theatre into the BEmedum 5 Performing Arts Center is the first step increat- ing the city's planned downtown arts district. The city's decision to go ahead with the Benedum Center led Allegheny International, ,Inc. to lo- cate its new $100 million headquarters in the city. According to a Pittsburgh Trust for Cul- tural Resources study, the arts district will generate a variety of benefits for the city: a construction payroll of more than $40 million, secondary construction spending for local goods and services of$300 million, and, upon comple- tion, at least $5.8 million a year in increased food, retail, parking expenditures and more than $2.5 million in taxes from 1.3 million square feet of office and retail space. Ticket sales of $7.5 million alone will generate $750,000 a year in admission taxes. Local Popularity The demonstrated economic benefits of the arts are only one factor that have made support for the arts popular among mayors and their constituents. Arts projects enjoy a broad base of political support. . The methods that cities have adopted to support the arts are far from uniform across the country, however. Ranging from bond issues and commitments of hard-won federal aid to contributions of buildings that no other group wanted and moral support from the mayor, the methods depend on the age of the city, its level of wealth, the strength of the arts community, and the competition with other causes for scarce city resources. Raising Big Money The biggest challenge that most cities face in the arts field is finding the money for con- struction or renovation of major facilities such as museums, concert halls and opera houses. The most common methods or financing these facilities are through municipal bonds and/or some combination offederal urban aid and local funds. Lesser facilities may be aided through loan guarantees. These commitments of city funds are particularly crucial in Sunbelt and smaller northern cities with few or no corporate headquarters or major philanthropic founda- tionsi..;.The most sophisticated of these,. strategies yse stronS! commitment:C! of publlc mnney as an ~portant f}r~t step _!!uieyelopi~gJ~rivate sup-=-_ port. ~ties using the municipal bonds strategy range from coast to coast and young and growing to well-established and fighting economic de- cline. Albuquerque, New Mexico, voters have approved five bond issues since 1975 to build the Albuquerque Museum of Art and enlarge its collection. Dallas voters have authorized more than $40 million in bonds to help finance the Dallas Arts District. Meanwhile, in the depths of Cleveland's fiscal crisis, Cuyahoga County Commissioners approved $3.5 million in public funds to assist the Playhouse Square project. Charlotte, North Carolina, has similarly financed a downtown cultural center, while Minneapolis used $9.2 million raised through bond sales to purchase its performing arts center from the Minneapolis Orchestra Association, which built the facility. , Many cities have used money from the fed- eraf EconomIC Development Admiiifstration _. rEDAl. th.e Housing and Urban Development Departm~nt'Q (HUDlQommunity Development Block Gran~ and Urban Development Action ~Grant (UDAG) programs to b~l(f cultural facili- ~ Some cities have also managed to- use Interior Department Land and Water Conser- vation Fund and historic preservation grants for some aspects of cultural facilities while smaller . communities have obtained money from the Agriculture Department's Farmers' Home Administration. all start-up grants. from .~eNationalEndowmentfor e avep aye an initi~~n some of these rojects. - The EDA and HUD grants, wnlc are the largest and can run as high as several million dollars, must by federal rules include provisions to create employment, contribute- to economic development, and benefit low-income people. But changes in regulations by the Reagan Administration have given local governments greater authority to decide how to spend the money. Shifting the debate over how to spend such federal money to the local level has height- ened the importance of cordial relations be- tween city hall and arts organizations and made mayoral cooperation) ifnot leadership, essential in the arts field. Large federal grants for arts institutions are an unlikely prospect, however. The Reagan Administration has proposed the elimination of UDAG and EDA in several budgets as inefficient and unnecessary federal subsidies, and while Congress has rejected the proposals, budgets for 6 ~ ~~~ both EDA and HUn funds have either been cut back, or fallen after inflation, annually, since 1981. The uncertainty of future funding levels suggests that local governments should be care- fUl about dependence upon such funds. Use of large-scale federal funds has un- doubtedly played a major role in a number of renovation projects around the country and will continue to be important to the extent they are available. An EDAgrant paid for nearly halftl,le cost of converting San Antonio's Lone Star Brew- ery into an art museum, and other EDA grants paid at least part of the cost of such varied projects as a Shakespeare theater.in Ashland, Oregon, a firefighters' museum in Baton Rouge, Louisiana, and an addition to the Brooklyn Museum in New York City. Since there is always a limit to the amount of direct grant money available, some local gov- ernments have used loans to assist arts groups. New York City's Joyce Theater was renovated because the Feld Ballet crafted a complex loan package that combined private and public re- sources. Joyce Theatre supporters first obtained a $600,000 private loan, 90 percent of which was guaranteed with federal funds. Since the attraction of this financing tech- nique is the ability to recycle the funds, city officials must be careful in analyzing the credit- worthiness of the arts groups. When usedjudi- ciously, this financing can be very effective.. For . example, St. Paul, Minnesota. has used ibi; llnancing method in. establishing ~ highly suc- . cessfulloan fund to build artist's housin~ in its Lowertown neighborhood. --.. Dedicated Revenues Dozens of cities have turned their own power to raise revenue into tools to support the arts. A wi de variety of taxes , rangingfrorn property and sales to hotel and special tax districts, have been applied with great success to raise money for arts projects and facilities. The types of ear- marked taxes differ radically from city to city. The most common earmarked taxes are hoteV motel levies, which are collected in 33 states and in 319 cities and counties and which dedicate anywhere from one to twenty percent of their revenues to the arts. Also known as bed taxes, hotellmotellevies are a fixed taxon anyone who rents a hotel or motel room in a local jurisdiction. On occasion they are extended as surcharges on restaurant meals as well. Voters have shown a clear preference for taxes on visitors rather than city residents, and campaigns to enact bed taxes have clearly picked up on the theme. In St. Louis' campaign to pass a bed tax, media consultants used the slogan, "You never paid for it; you never wil1." Even states such as California which have experi- enced tax revolts in recent years have been able to maintain support for hotel taxes as levies on non-residents who use local facilities. But it is important to remember that almost all special arts taxes levied by cities require state legisla- tive approval, and most must be presented to the voters at the polls for approval. San Francisco's 25 years of success with the hoteVmotel tax has spurred dozens of similar local ordinances. But the Dallas city govern- ment has rejected the hoteVmotel tax as too limited a source of revenue to support its expen- sive new cultural facilities. A handful of local governments take advan- tage of state laws that allow uSe of special property taxes to support the arts. Aspen, Colo- rado, levies a special assessment on real estate transfers of one-half of one percent, to restore and maintain its Wheeler Opera House and to support visual and performing arts groups in the city. In 1980, the real estate tax raised a total of $ 140,000 but public officials have had to overcome resistance from the real estate, busi- nesscommunities, and from property owners to use revenues for the arts. . Boston recently required a ten percent "link- age fee" to be assessed on the value of all new corporate construction in the city,.and some of the $3 million expected in new revenue this year may be earmarked for the arts. Other cities and counties have helped the arts through special tax districts,. or "special authorities," which are semi-autonomous politi- cal entities with the power to tax and often to issue bonds for specific public needs such as hospitals, parks, schools, economic development and water and sewerage systems. In a few cases, special assessment districts havebeen specifi- cally created to aid the arts, but, more fre- quently, arts support comes as part of the man- date of a special economic development district. Other special districts have been. set up to spread the burden of supporting cultural insti- tutions beyond the local jurisdiction to the met- ropolitan area-wide population that takes ad- vantage of the facilities. St. Louis and its sub- urbs, for example, established a special district 7 in 1971-the St. Louis Zoo-Museum District- with the power to levy a property tax dedicated to the city zoo and two museums. In 1983, city and county voters increased the tax dedicated to the zoo and art museums from four cents to eight cents per $100 valuation and also began funding the Botanical Garden and the Science Center at a level offour cents per $100. In December 1984, the St. Louis City Arts Commission was replaced by the Regional Cul;; tural and Performing Arts Development Com- mission, which is funded through the city. and county hotel/motel tax. The Commission must distribute 85 percent of its funds to local arts organizations and is barred from distributing money to any of the beneficiaries of the zoo- museum tax. Arts Ordinances City regulatory powers, including zoning, licensing and taxing authority, can be modified in a number of ways to support the arts at little OT no cost to the public. Most often, cities exempt arts organizations from admissions taxes, set up special licensing procedures for artists or change zoning laws to accommodate artists' studio and living quarters. Some cities that hold annual arts festivals allow arts organizations sponsor- ing the events to earn money by giving them control over food and product concessions at the festivals. The mJtst widespread of these ordinances is "percent for art." which reauires that a certain 'portion of a city's caoital expenditures be set - aside for the purchase of public art. Since Philadelphia led the way in 1959, nlore than 50 city and county governments, at least 19 states, and the federal government have established percent-for-art programs, ranging from a tenth of one percent to two percent of the construction budget. The ordinance generally applies to public buildings, but a few ci ties have expanded it to include privately-owned office buildings. Seattle, Anchorage, Philadelphia, Chicago and other cities have acquired sizable public art collections through percent-for-art programs. "Live-work" ordinances change city zoning and building codes to allow artists housing and studio facilities in neighborhoods zoned exclu- sively for industrial and commercial use. Live- work ordinances, which oftenrequire changes in state regulations as well, have been applied in New York City and Los Angeles among other cities, with immense success. The laws are an attractive mechanism local government can use to stimulate urban artists colonies, and have led to the revival of flagging industrial neighbor- hoods around the country. Cities have also altered ordinances to allow painters and other visual artists to sell their work on city streets and exempt dancers, mimes and other performing artists from bans on public vending and perfonnances. San Francisco has even taken artists out of direet competition for space with other street vendors by setting up 270 sidewalk spaces for the exclusive use of artists, a licensing proce- dure, and a lottery to distribute space daily. Jacksonville, Florida, has taken a similar tack with street musicians, exempting them from the city's "anti-husking ordinance" (which prohibits begging)., The law not only ~nows.artists to sell ~heir wares'.in public park$. but__~ls~ ~n.Q~s artists to perform on the streets and "pass the - hat"without fees or licenses.. ===- . ... Donated Buildings and Services Some cities have managed to secure facili- ties for more modest arts groups by the much cheaper methods of providing low-cost space or donating services. In some cases, the arrange- . ments are a way around prohibitions against giving grants to private organizations, but more frequently, free or low-cost space and services are a supplement to other forms of city support. Many cities have turned over excess mu.ni.9- par property to arts groups for short-tenn. per- ,formance or exhibition space at less-tl:1~-c~m,- . mercial rents. Biloxi, Mississippi, for instance, L. makes its renovated Saenger Theater available to non-profit groups for $75 per night, a rental which covers operating expenses. At least a few cities, including Palo Alto, California, have contracted out for services with arts groups. In other cities, such as Denver, local government provides in-kind maintenance services to arts institutions. Festivals While few cities have the whereWIthal to launch international-scale festivals on the level of Charleston's Spoleto Festival U.S.A, the proliferation of smaller urban festivals attests to the growing consensus among city officials 8 that civic fetes are worthwhile public invest- ments. Festivals are one event in which the city plays a "make it or break it" role. Only city governments can provide police for traffic and erowdcontrol, use of parks, trash removal, trans- portation of equipment, electricity, publicity and other logistical support. By providing services either free or at low-cost to festival sponsors, the city can make a festival more successful or even tinanciallyfeasible. Some cities haveinstitu~ policies making festival planning easier. Atlanta's policy includes a "one stop shopping" arrangement for festival permits, logistical co- ordination and promotion. Stimulating Private Support As federal arts and economic development dollars have become more scarce and local gov- ernments have in turn felt pressed, the mayor's role in stimulating private support for the arts has become more and more crucial. Both local and state governments ar~ experimenqng with tools to stimulate nrivate ~nppnrl nf the a~. Some of the methods, such as business-arts alliances, have existed for decades. Others, including local government power in granting cable franchises, state and local tax checkoff systems, and donated materials programs are in the testing stage. Houston's Wortham Theatre, for instance, is built on land donated by the city, with the private sector having oraised and .funded the construction and development costs. Mayor Kathryn J. Whitmire has worked closely with local businesses in fund-raising. In Seattle, the business community assumed total responsibil- ity for creating the Corporate Council on the Arts, whose base of funds comes from 21 large and small local corporations. Whatever shape they take administratively, alliances between business and the . arts are attractive because they provide a vehicle for corporations to feel comfortable in making con- sistent and sizeable contributions to the arts. In addition to coordinating the flow of information and gifts between business and arts communi- ties, the alliances typically provide administra- tive and technical assistance to arts groups. ~nme citie~1 c:n,.h ai Sagramento, have even published and marketed "wish-lists" for poten- - . . donor arts institutions. These "gift -.. catalogs; as the arts groups ca them, list the needs of local museums, theaters and other institutions and. invite the public to "buy" or donate needed equipment. Gift catalogs take advantage of direct mail advertism2 rec!hmaues to market the needs of the arts to the public. o New York'S donated matenals program uses the City Department of Cultural Affairs as a clear- inghouse for surplus equipment donated by the private sector to arts organizations. Such pro- grams work best in cities with large business and arts communities. As cities and counties award cable television franchises, some have sought to beriefit the arts by guaranteeing the access of arts groups to public channels, developing channels and facili- oties specifically for the arts, and reserving a portion of subscriber revenue for the arts and arts programming. Several cities, from New Orleans, Louisiana, to La Mirada, California, have requested and won commitments by local cable companies to the arts., The TucsonlPima (Arizona) Art Council, Inc...is planningcabTe channel proE!Tammine-. devoted to arts educa- tion nrograms and re~ar productions hy 1~~ 1 Ipts m-oups. The council estimates that about $200,000 will be available each year for arts programming as a result of the cable franchising agreement. Reluctance among cable operators to add to the costs of already expensive systems has, however, reduced cities' bargaining power with cable companies. Cities also have the power to raise private money for the arts ~roUgb-pllfilic eiriployee payroll detttictlonsand tax checkoffs for prlvate- . "Citizens.-- dtner methods have been initiated on the state level, but involve local government either in administering the funds generated for the arts or in distributing them. Income tax checkoff arrangements, which allow taxpayers to specify how a small portion of their tax pay- ment will be allocated or to add a donation for a particular organization to their tax bills, cur- rently exist in all 50 states,and can be adapted as well to local property tax collections or cities which levy income taxes. Only a few cities have used tax checkoffs to support the arts. Oregon, Alabama and Louisiana, meanwhile, allow tax- payers to earmark a small part of their state income tax refunds to fund local arts agencies. San Die~o Co~ty_putsj]ie~ in J~ D~QR,erty tax _bins to solicit donations for _s~~llo_ca~o age~- cies and cultural institutions. --- -- Local arts - groups may also benefit from state-run or authorized gambling operations. 9 The programs are initiated at the state level, but involve local government in distributing money to arts organizations. The arts in Massachu- setts have benefited handsomelyfrom the state's "Megabucks" Arts Lottery, which reserves a portion oflottery revenue for local arts agencies. In Florida, horse and greyhound race tracks and jai-alai frontons are allowed to hold "charity days" with all gambling proceeds donated to arts organizations, educational institutions and other non-profit groups. -, Over the long run, these newer, but rela- tively untested mechanisms may prove to be more beneficial to the arts than direct grants from government at all levels. Certainly they are more politically feasible in an age character- ized by stretched city budgets and a general trend in favor of private initiatives over public. All the newer mechanisms require mayoral leadership, whether. it is a campaign to pass a municipal bond issue or an effort to convince a state legislature to allow an arts ordinance, or making a change in the tax laws. Mayors may find it difficult to make a strong commitment to the arts in the face of competing interests in the CityLBut for the mayor who decides that an arts strategy is worth the effort, the dividends are ~ clear: not just a higher quality of life, but down: . town revitalization. new businesses and, m6st of ~j~L - 10 Chapter II Sharing City Revenues Over the past 20 years, cities have increas- ingly used several forms of city revenues to assist major arts institutions, especially for major building projects. These range from special municipal bond issues to using federal grants as "anchor" financing for major projects, to guaran- teeing loans for arts institutions, to special taxes dedicated to the arts. Each of these financing techniques has its strengths and weaknesses and requires its own political strategy. Municipal Bonds Traditionally a long-term, low-interest tool to borrow money to finance large-scale construc- tion projects such as bridges, roads, sewer and water systems, general obligation bonds have been issued by dozens of cities to finance costly construction or renovation of major cultural buildings. A city's ability to issue municipal bonds for arts projects depends on the local laws which regulate bond issues, state laws which impose limits on the borrowing capacity of localities, and the willingness of mayors and other city officials to promote the bond issue with the voters. The approval process for issuing bonds is neither simple nor risk-free as the following examples illustrate, but proponents point out that it would be almost impossibl.e to raise such a large amount of local, public money in any other fashion. All bond issues for construction of arts facilities have involved broader commit- ments of money, and the success or failure of the campaign often hinges on whether the public believes that groups other than the general taxpayers have made appropriate donations. Albuquerque In 1975, Albuquerque voters approved a $2.9 million bond issue to construct the city's art museum. It was the first of six bond issues totaling $6 million backed by voters over the next 12 years, both to continue expansion of the building and, since 1981,to expandthe museum's' collection. Albuquerque differs from other cities in its use of general obligation bond funds for development of its arts collection. The 1975 vote also signaled the beginning of new private and federal support. After the bonds were issued, the museum attracted other public and private monies, including $1.2 million from the U.S. Department of Commerce's Economic Develop- ment Administration. The first Albuquerque. bond issue passed in 1975, but those issued in subsequent years were approved only after exhaustive and sophisti- cated promotional campaigns that may be. in- structive for other cities. In earlier efforts at the polls Albuquerque voters rejected the art mu- seum bond proposal, as well as several others for more traditional purposes. The strategy for successful bond issues in Albuquerque works as follows: First, local offi- cials and arts advocates who back the museum enlisted the support of local business, political and social leaders whose endorsements could carry weight with the voters. Second, city offi- cials mounted a vigorous public relations cam- paign. And the mayor appointed a citizens group of 25 local public and private sector lead- ers to. coordinate the promotional campaign, including hiring a local media consultant. Media blitzes played no small role in the Albuquerque strategy, including well-timed visits by the Spanish Duke of Albuquerque and the unveiling of a portrait of the Sandia Moun- tains commissioned by the city. As a final tactic, the museum bond was included in a much broader package of bonds to provide fundingfor dozens of projects around the city, generating wider pub- licinterest. By 1983, when the city won approval for an additional bond issue for the museum, its 3,000 members were the base for a massive grassroots, door-to-door, telephone canvassing and get-out-the-vote drive. Baltimore and Charlotte Baltimore has used three large bond issues totalling $4.6 million since 1974 to construct and 11 expand the Baltimore Museum of Art. In 1984, Baltimore voters approved an additional $1.4 million to expand the museum's sculpture gar- den and construct new storage facilities for its growing collection, as well as $1 million to reno- vate the Walters Art Gallery. In 1984, Balti- more voters approved an additional $1.4 million to expand the museum's sculpture garden and construct new storage facilities for its growing collection, as well as $1 million to renovate the Walters Art Gallery. In 1987, voters approved a $1.5 million bond issue for the former of a new wing to the Baltimore Art Museum. Strong support from city hall for the arts, said local supporters of the museum, has paved the way for easier public approval of municipal borrow- ing for the arts than would otherwise have been the case. Charlotte, N.C., has also used large munici- pal bond issues to bankroll downtown cultural facilities. In 1975, Charlotte adopted a Cultural Action Plan drafted by a group .of 100 private and public sector leaders. The report called for transforming an old downtown church into a performing arts center and using it as the an- chor for a revitalized downtown. After a long lobbying effort, in which backers spent $50,000, Mecklenburg County and the city won voter approval ofa combined $12.1 million bond pack- age, including $2.5 million for the Spirit Square arts center and $9.6 million for the Discovery Place science museum. As part of the arrange- ment, the county agreed to provide the arts center with $300,000 a year to cover operating expenses. But the crucial strategy in securing voter approval offun ding for the arts facility was probably the decision to include the center in the same bond issue with a popul~r science mu- seum. "It is doubtful," said a Charlotte city official, "that the arts center would have suc- ceeded on its own." Federal Funding Large community and economic develop- ment grant programs administered by the Eco- nomic Development Administration (EDA) of the U.S. Department of Commerce and the U. S~ Department of Housing and Urban Develop- ment (HUD) have made arts projects eligible for federal support only since the 1970's. Money from these agencies has proven vital to a num- ber of major developments, but local officials must still draw careful linkages between arts projects and the more traditionaljob.and busi- ness creation goals of the programs. In New York City, San Antonio, and Cleve- land, federal money has provided critical financ- ing for major arts facilities viewed as economic development tools. The Cleveland experience, however, underscores one of the pitfalls in rely- ing upon federal funding. A freeze on EDA grants during the early days of the Reagan Administration brought privatefund-raisingfor Playhouse Square to a halt for about a year. Cleveland ultimately received the EDA grant after an intensive lobbying effort. New York City Until early 1982, when the renovated Joyce Theatre in New York's Chelsea neighborhood was unveiled, small- and medium-sized dance cox;npanies in the city lacked a modern dance hall in which to perform and rehearse. After purchasing the rundown theater in 1979 with a $225,000 grant from one of its board members, the Feld Ballet joined with the city of New York to win a blend offederal, corporate, foundation, and private support to renovate the theater. Federal and state money were crucial in attract- ing other support for the $3.8 million facility. Initial funding included a $105,000 grant from . the National Endowment for the Arts' Dance and Design Arts programs,. along with $22,500 from the Architecture Program of the New Yark State Council on the Arts to help cover architec- tural fees. Because of the reluctance offinancial insti- tutions to provide capital financing to a non- profit organization, the dance company crafted a complex loan package combinine public and private monies. It obtained a $600,000 loan from the Morgan Community Development Corporation, a subsidiary of Morgan Guaranty Trust, after 90 percent of the loan was guaran- teed by the EDA Then New Ybrk City made available a $400,000 Urban Development Ac- tion Grant (UDAG) as the final part of the financing package. With federal grants and private loans in place, the dance company then turned to private foundations such as the Kresge Foundation, which contributed $200,000. In 1980, the National Endowment for the Arts awarded a $450,000 challenge grant (which requires matching private support) to the thea- ter project The city argued in applying for the federal 12 .' funding, that the refurbished Joyce Theater would have a significant economic impact on its surrounding neighborhood. The argument has proven correct. Since the theater reopened in 1982, dozens of restaurants and shops have opened around it. The theater itselfhas created 40 new jobs. And it is lit 44 weeks per year, bringing a constant stream of theater patrons into the neighborhood. San Antonio and Cleveland Federal money provided nearly half the cost of converting San Antonio's Lone Star Brewing Company brewery into the San Antonio Mu- seum of Art. The highly acclaimed $7.2 million facility, which opened in 1981, was financed with a $3.4 million grant from EDA, along with funding from the city of San Antonio, Texas- based foundations, corporations and individu- als. Supporters of the project made a strong pitch that the museum would change the eco- nomics of the northern part of downtown San Antonio, with a strong, beneficial impact upon property values and upon commercial areas and neighborhoods around the museum. Since the museum's opening, the economic claims have been substantiated: property values in the neigh- borhood around the museum have jumped from $3 per square foot to $20 per square foot, and most dilapidated buildings in the area are cur- rently slated for either demolition or renovation Federal support was similarly critical in starting Playhouse Square, Cleveland's down- town performing arts center and economic de- velopment project. Of its $27 million cost, $6.7 million came from Washington.. Playhouse Square got its first EDA grant of $3.147 million in 1978, because a city waterfront redevelopment project for which. the federal money was i~tended was never built. Cleveland's mayor and its 37-member city council agreed to turn over the EDA funds to Cuyahoga County, which had responsibility for the historic thea- ters in the area. It took a "massive campaign of persuasion" to convince city officials to hand over a large federal grant to -the county, said Jane Kirkham, director of area development and planning for the Playhouse Square Founda- tion. The county pursued more federal funds for the theaters, winning a $3.5 million EDA grant in 1980, but changing federal priorities nearly led to disaster for the project. In early 1981, EDA froze all grants. Playhouse Square officials estimate the federal withdrawal threw the proj- ect off schedule by at least a year, increased costs significantly, and nearly crippled fund-raising efforts. After a lobbying effort m Washington, Cleveland and Cuyahoga County officials were able to get the grant money reinstated, but not before EDA required the county to issue a $3.5 million general obligation bond in return. This requirement was part of the Reagan Administration's poliey of insisting that local government pick up a larger share of the costs of most projects before releasingfederal assistance. The Department of Housing and Urban Developmenthas also awarded UDAGs to Cleve- land for renovation of several office buildings and theaters in the arts district. Playhouse Square officials say that the federal and local commitments led the way for $6.6 million in business contributions, $3.1 million from foun- dations, and $4.3 million from individuals. In March 1984, the state of Ohio released $4 mil- lion fro~ its capital budget for higher education to the Cuyahoga Community College, allowing the college and Playhouse Square Foundation to develop work-study internship programs in tha Playhouse Square theaters. Chicago and St. Louis The Chicago Office of Fine Arts uses federal funds to support projects that bring artists into the city's poor neighborhoods. Known as the Neighborhood Arts Project, it funds such events as poetry readings, summer arts instruction classes for poor teenagers, and poetry writing classes for the elderly. The city channels HUn's Community Development Block Grant money to artists and arts organizations in designated neighborhoods. Artists and organizations re- ceive grants of up to $4,000 under the program, with neighborhood advisory panels determining who gets the money and the size of the awards. The 123 awards made in 1987 financed services - which reached 76,000 low-and moderate-in- come Chicago residents. Similarly, St. Louis is using Community Development Block Grant (CDBG) money to provide operating support to neighborhood arts councils around the city. Detroit is using the Department of Labor's Job Training Partner- ship Act to finance training courses in the arts for poor Detroit teenagers as part of its summer 13 youth program. Loan Funds Ahandful of cities loan money to arts organi- zations when they experience short-term fund- ingproblems. Supporters argue that ifproperly funded and managed, this could be an efficient and inexpensive way to help a large number of arts organizations since the city expects to re't ceive the money back and lend it to other groups. It must be noted, however, that a number ofloan programs have failed because arts organiza- tions were unable to repay the obligations. In Detroit, for instance, officials concluded that it was politically impractical to force repayment of a number of loans and converted all outstanding loans into grants. Of the loan programs currently underway, most have not been in operation long enough to indicate their ultimate success or failure, al- though they can take credit for supporting prom- ising local arts developments. St. Paul The New Works St. Paul Project was set up by the city in 1983 to help promote St. Paul's Lowertown District as an arts district. The project has- loaned money for conversion of in- dustrial buildings in the neighborhood into stu- dio and living spaces for artists. Without the public loans, it is doubtful that the financing could ever have been arranged for the $1. 7 million renovation since the financing process took two years to complete. The St. Paul Arts Collective, a community arts group, worked in partnership with a for-profit renovation finn, Assets Development Services Inc., to convert the building. The New Works St. Paul Project ar- ranged loans from four sources: $250,000 in Community Development Block Grant (CDBG) funds at no interest, loaned by the city and requiring no repayment for ten years; $78,000, at two percent interest from CDBG multi-family rehabilitation money andHUD residential en- 'ergy improvement funds, also at two percent; $178,000 at 7.5 percent interest from the city- chartered, non-profit, Lowertown Redevelop- ment Corp. (funded by a $10 million foundation endowment for Lowertown}; and a $540,000 tax- exempt industrial revenue bond authorized by the city. Lowertown Lofts, in a renovated warehouse, provides 29 studiolhousing units, which rent for $43 a square foot to low- and moderate-income artists. Lowertown Lofts has already been fully leased, and has triggered a new $300,000 reha- bilitation loan from the city to renovate a neigh- boring building for the arts. Los Angeles The Los Angeles Actors Theater's new $16 million performing arts center, adjacent to Los Angeles'run-down old central business district, was supported by a complex package ofgovem- ment loans, foundation grants, private dona- tions, and money from the issuance of tax-ex- empt certificates of participation, another novel fonn offinancing. The arts center, which opened September 20, 1985, houses four theaters, re- hearsal and workshop space, costume and prop shops, an art gallery, bookstore, bar, restau- rants and offices. The Community Redevelopment Agency, a city agency, spearheaded the effort to revitalize the old business district, providing the theater company with a $150,000 loan from its own funds and an additional $2.5 million loan from UDAGmoney awarded to the city for the project. The redevelopment authority also purchased the theater building and two adjacent lots (worth . $1.9 million), pledging the buildings as collat- eral to help secure private sector loans. It also provided loan guarantees from its own funds. All told, the Community Redevelopment Agency has invested nearly $4 million in the Center. A unique element in the financing package were 17 tax-exempt certificates ofparticipation, similar to bonds, but privately issued, with at- tractive tax shelter provisions. Eight of the 17 were privately sold at $80,000 each, and the remainder were purchased by the theater com- pany with money loaned by the redevelopment authority. Earmarked Taxes Dedicating tax revenues for specific pur- poses has proven one of the most popular ways for cities to help the arts. Regardless of the different mechanisms used by cities, the debate that surrounds the use of dedicated taxes for the arts revolves around two issues. Supporters of the levies argue that many of the taxes can be relatively easy to enact and administer and can produce a pool of public money for the arts free 14 from other fiscal pressures. Critics consider reliance on the taxes risky, however, because they generally depend on a narrow base for funds. Establishing special taxes for the arts- can be politically difficult if the public believes the levies have enlarged tax bills. HotellMotel Taxes In the roughly 30 cities that dedicate a portion of hotel taxes to the arts, there is gener- ally strong competition between tourism offices; convention bureaus, sports authorities, and other city agencies for a share of the funds. While hotel and restaurant trade groups usually do not support the taxes, their opposition has been softened by programs designed to enhance that industry's competitive position. Ifbed taxes are set at too high a level, tourism officials claim they can damage a city's convention and tourist trade. Once hotel/motel taxes have been diverted to funding the arts, agencies which administer the programs and local visitors bureaus have worked together closely on promotional efforts. In Columbus, Ohio, the Greater Columbus Arts Council, which runs the program, "plays ball" with the tourist and convention industry by designing special promotions to market Colum- bus' cultural facilities to convention planners, said Timothy Sublette, the former executive director of the Council. Houston Since 1977, Texas has allowed its cities to allocate a portion of their hotel/motel taxes to the arts, humanitios and historic preservation~ Houston's 11 percent tax on its 33,000 hotel and motel rooms raises from $2.5 million to $3 million per year, which is distributed to about 100 projects and arts organizations by the Cul- tural Arts Council of Houston. Half the money goes to 11 major cultural institutions, while one- fifth goes to sponsor free perfonnances at city- owned theaters, and another fifth goes to about 80 small arts groups. The grants have provided each of the major arts institutions with five per cent of their operating budget, and almost the entire budget for many smaller organizations. Despite the popularity of the bed tax in Houston and other cities around Texas, the state legislature, when faced with a tight fiscal situ- ation in 1983, placed a cap on the amount of hotel taxes any city could set aside for the arts-one percent of total revenue. The legislature's goals was to divert more of the bed tax 1;I1oney to city general operating funds and thereby lessen the localities' fmancial demands on the state. San Franci,co and San Diego San Francisco's three percent hotel/motel tax enacted in 1961 was one of the first setting aside tax revenues for the arts. Today the League ofCaliforma Cities estimates that about 100 California cities and counties levy a tax on hotel and motel charges, raising $129 million per year. In addition to San Francisco, three other cities-San Diego, Sacramento and Santa -Barbara-allocate hotel tax revenue to the arts. The San Francisco program is run throUgh a city agency, Grants for the Arts of the San Francisco Hotel Tax Fund, which links the arts portion of the tax revenue to tourist promotion. In 1985, the hotel/motel tax, currently 11 per- cent with a fixed 17 percent allocation to the agency, provided over $6.1 million to 131 arts and cultural organizations. In order to qualify for public grants, arts groups must "advertise and promote the city of San Fra.9}cisco," according to the city law, "make San Francisco more attractive to visitors...and have a positive economic impact on th city." San Diego diverted some of its hotel/motel tax revenue to the arts, after a strong lobbYing effort in the early 1970's by City Hall. At the time, the San Diego Hotel and Motel Association argued that reserving money for the arts would mark the beginning of a "giant slush fund" for city projects with only tenuous links to tourism. Tourism industry oppoSItion diminished, how- ever, when San piego tourist promoters began working closely with arts organizations to mar- ket the city. Revenues from the hotel/motel tax are con- siderable in San Diego, which is a popular tour- ist destination. Currently, 18 per cent of hotel/ motel tax revenues are dedicated to arts and cultural institutions; in 1987, arts and culture received about $1 million from the tax. Columbus, Ohio Since 1977, the Columbus City Council has set aside a portion of revenues from the city's hotel/motel tax for the arts. The 20 percent allocation for the arts goes to the Greater Co- 15 lumbus Arts Council, which in turn distributes the funds to local arts organizations.. In late 1985, the City Councilraised the hotel/motel tax from four to six percent and increased the arts' allocation from 20 to 25 percent. Property Taxes The real estate transfer tax in Aspen, Colo- rado, is the only. one of its kind in the nation dedicated to the arts. It took effect in 1980 and requires that one-half of one percent of the value of each property transaction is paid to the city to finance renovation of the Wheeler Opera House and other projects. Between 1980 and 1983, the tax. produced $300,000 for the arts in Aspen (pop. 4,000). Because of broad home rule powers which the state of Colorado grants to local government, nine Colorado cities have imposed. special real estate taxes. Aspen is the only city that dedi- cates the proceeds to the arts. The tax has worked well in Aspen because of its frequent and expensive real estate transac- tions, although real estate has experienced a slight downturn recently. Aspen voters sup- ported the tax referendum, said a local official, because the levy is perceived as a tax on land speculation, much of which is conducted by out- of-state and foreign investors. Backers have also been able to point to the virtual second tourist season the arts have generated, bringing thousands of tourists and millions of dollars into the city in the summer months. Under the Aspen law, most of the tax reve- nues are used to repay city bonds that financed the opera house's renovation, with the remain- der allocated by the City Council to other visual and performing arts groups and facilities. Developers and real estate owners almost always oppose special real estate taxes for the arts as a deterrent to development, but the concept is more likely to win public support in areas where real estate development and specu- lation are booming. Special Tax Districts Special taxing districts, also called special authorities, are one of the most traditional methods of channeling tax revenues to the arts and have raised money for local cultural institu- tions for more than fifty years. In some cities, special districts dedicated to parks and recrea- tion or downtown development tum over a por- tion of their tax revenues to cultural institu- tions. Several cities have created special dis- tricts solely for raising tax dollars for the arts. Chicago'. Museum Tax Chicago's was one of the first special tax districts set up in the nation. Created by the lllinois legislature in 1934, the Chicago Park District collects property taxes to support activi- ties under its jurisdiction. Currently, two-thirds of the District's $130 million in annual revenue comes from a special district-colIeeted property tax. The funds are used to manage and maintain parks, marinas and other recreation areas. The district also collects. a special museum property tax which supports eight major private muse- ums on park district land. The tax raised $17.2 million for the museums in 1983, $17.9 million in 1984, and $23 million for the museums in 1985 and $25 million in 1986. In 1971, the district was also authorized by the legislature to issue $30 million in bonds to establish a museum capital endowment for renovation and expansion. The museums are required to match the public money on a dollar- for-dollar basis with private contributions. New Orleans' Development District The New Orleans Development District was created by the Louisiana legislature in 1975 to finance and plan capital improvements projects for the city's central business district, a 100- square block area of commercial and retail es- tablishments. The development district raises about $3 million a year through its tax assess- ments.: Several programs run by the Arts Council of Greater New Orleans to attract attention and people to the downtown area are financed by the development district. The activities have in- cluded an annual downtown arts festival and a series of lunch hour concerts. In 1984, the district established a $400,000 arts fund. The fund includes $ 100,000 for the arts council to use in meeting matching fund requirements for public and private grants to institutions. In 1985, the remaining $300,000 was earmarked for construction of a performing arts stage downtown. 16 St. Louis' Cultural Tax Distri~t In addition to collecting hotel/motel taxes for the arts, St. Louis uses a cultural tax district to raise money for. its museums. The district spreads the burden for financial support to resi- dents of the entire metropolitan area, rather than relying only on city property tax revenues for support. The district was set up in 1971, primarily to ease the financial difficulties of St. Louis' city zoo and art museum. Theseinsijtu- tion had been plagued by growing maintenance needs and climbing attendance, even as the city of St. Louis faced population and tax revenue losses and found itself increasingly unable to maintain the institutions in an appropriate manner. The financial problems were solved by creat- ing a cultural tax district, approved by voters, that included suburban St. Louis County, as well as the city. The law presented no new tax for city residents, but county residents had to agree to a tax hike. The campaign to secure voter approval took two years. Because public opinion polling early in the campaign indicated that voters would reject a "cultural" or "arts" taxing district, the referendum was marketed by backers as sup- port for the "St. Louis Metropolitan Zoological Park and Museum District." The measure passed by a narrow margin in 1971. Sales Taxes Sales taxes earmarked for the arts have been enacted in a handful of cities, but they have usually been tied to popular municipal projects. Bartlesville, Oklahoma, resid~nts, for instance, approved a temporary one-cent sales tax hike to finance a $13.5 million community center in 1977. Huntsville, Alabama, places a ten percent tax on the sale of mixed drinks, and has used the money to build and provide operating funds for its civic center-an arts and convention facil- ity-built in 1975. Because city retailers usu- ally oppose sales tax hikes, and they are rarely popular with the public, local officials have generally not used these taxes for the arts. Arts Ordinances Various cities have experimented with ordi- nances to encourage the arts. Most of these ordinances are particular to one city since ordi- nances of any type must carefully follow existing laws governing private property and fit with the local geographic, political and economic climate. Creative public officials,. however, have man- aged to take the concept of an ordinance from one city and adapt it to another. "Percent-For-Art" Programs "Percent-for-Art" ordinances have existed for only about a quarter of a centt.lry, since Philadelphia established its ordinance in 1959, but. the origin of the concept goes. back to the public commissioning of art. Seattle began its well-known tradition of public artwork in 1912, and enacted a "percent-for-art" ordinance in 1973. In Europe, the early equivalent of per- cent-for-artlaws on the national and loca.llevels dates to the 1920s. During the administration of Franklin D. Roosevelt, the federal government, through the . Works Progress Administration commissioned more than 100,000 painting and 18,000 sculptures for public buildings. Federal programs, at their peak, employed more than 5,000 artists. The U.S. General Services Ad- ministration has had a one-half of one percent policy for public art in new federal buildings since 1963. Many localities have adopted the ordinance in the last 25 years; Sacramento, California, appears to have one of the highest art set-asides, requiring two percent of construction budgets be used for art in both public and private buildings. Supporters of "percent-for-art" ordinances contend the programs soften the environment, offer a systematic method to integrate art into public spaces, support local artists who create the works, give the ~rtists broad public expo- sure, and help municipal government amass significant collections of arts. The percent-for-art program in Anchorage, Alaska-requiring municipal buildings with construction budgets of $250,000 or higher to house works of art valued at one percent of total construction cost-has "added vitality to the city" and "created a museum without walls" that "get arts out where the people are," said Molly B. Jones, administrator of the city's community affairs office. The ordinances may be of particu- lar value to fast-growing, younger cities such as Anchorage because in a period of great public capital expenditures, the program can lead to a large public art collection in a short period of time. 17 There is no shortage of controversy about percent-for-art programs, however. The most common-and famous-disputes are over pub- lie reaction to various art objects, the cost of the object, especially if it is controversial, and the selection process used by the municipality. In extreme cases art objects unpopular with the public have been used as political issues against incumbents. Conflicts also arise over the type of artr-representational versus abstraet-to be commissioned. The outcome of these battles is mixed. Arts groups frequently defend any object to "strike a blow for freedom" for the artist, but a number of objects have been taken away after newspaper editorials and politicians have charged that the public should not have to live with something the majority considers ugly. Percent-for-art laws are even more contro- versial when applied to private construction. Developers often oppose the laws on the grounds that they increase construction costs. Richard Andrews, who formerly headed Seattle's per- cent-for-art program, has urged cities to use successful percent-for-art laws as a way to en- courage a voluntary private sector commitment to include art in new buildings. "If you view percent for art itself as the goal, you are being short-sighted," Andrews has said And in cities where art set-asides have been in operation for some time, officials report that private reluc- tance to incorporate art into projects has faded. In Los Angeles, said Y okio Karawatani, a Los Angeles Redevelopment Authority senior plan- ner, developers not covered by the law are volWl- tarilyincluding art works in their projects. Many developers have concluded that art adds long- term value to the projects, he added. Other critics who support the concept of art in large buildings but question the use of ordi- nances have suggested that local, state or fed- eral tax incentives, similar to those granted for historic preservation projects, might be a less contentious alternative to encourage developers to include works of art in their buildings. Philadelphia Philadelphia's percen t-for-art ordinance, the nation's first, remains a national model for public art set-asides. Two separate percent-for-art programs exist in Philadelphia: one ordinance, whic~ requires a set-aside of up to one percent for art on all municipal construction projects, and a more unusual one, administered by the Philadelphia Redevelopment Authority. The redevelopment authority, a state-char- tered agency responsible for land acquisition and clearance in specific areas as well as pack- aging and selling the land to developers has required developers to reserve one perce~t of construction costs to commission original public art for its projects since 1959. Under the author- ity board policy more than 300 works of art, with a value of more than $8 million, bave been installed in high-rise commercial and residen- tial towers, housing for low- to moderate-income . families and the elderly, industrial facilities, schools, and libraries. Developers are allowed to select works of art for their projects, but they are subject to approval by the fine arts commission , and artists must be included in the early stages of project planning. Philadelphia's pioneering law has not satis- fied all critics. Because of the law's ceiling on arts set-asides "its influence has been dimin- ished," charged a fonner director of the Philadel- phia Arts Commission. And the law has been more effective in some city administrations than others, he charged, adding that without mayoral leadership, city bureaucrats have sometimes "cut the arts budget to the bone." Seattle Seattle passed its percent-for-art ordinance in 1973. The law is broader and more flexible than in most cities, setting aside one percent of the funds appropriated for all municipal con- struction projects for the selection, acquisition, and installation of artworks in public places. Seattle pools some of the percent-for-artfunds in a Municipal Arts'Fund that provides money for public art anywhere in the city and also supports an "art bank," a portable exhibition of 1300 works. So far, more than 50 works of art have be.en installed in public spaces. Seattle's Municipal Arts Plan, developed by the Art in Public Places Committee. of the Se- attle Arts Commission, sets up guidelines for spending public art money. The public arts committee also assembles selection panels to commission art. In 1986, the city drafted a philosophical statement on the issue of public an. The law is slowly prodding private develop- ers to recognize the value of public art to both their own projects and the city's economic viabil- .~ 18 ity, and many are. voluntarily includiiig art in their buildings, said Karen Gates, fonner execu- tive director of the Seattle Arts Commission. But implementation of the law was not auto- matic. It has-required "strong leadership" from the mayor, she said, to gain the cooperation of the administrators of the city's capital develop- ment departments, but as a result, artists now serve on design teams for all city capital proj- ects, not just those covered by the law. Live-Work Ordinpnces As manufacturing has moved from America's central cities to the outskirts and the suburbs, artists searchingforcheap, large spaces in which to work have flocked to down-at-the-heels urban industrial neighborhoods. The vacant ware- houses, textile mills and slaughtering plants, the artists have said, provide the cheapest and largest housing and working spaces in urban areas. Generally, however, the artists moving into and converting the buildings to the now- famed "loa" studios and apartments violated city zoning laws which prohibit the mixing of commercial, industrial, and residential facili- ties. Nevertheless, the process continued in many neighborhoods in New York City, Chi- cago, Boston, Los Angeles and other cities. In New York City, a 1961 "live-work" ordi- nance legalized the illegal conversions and in fact enco.uraged the rehabilitation of derelict industrial buildings for new uses. In 1986, New York City estimated that two-thirds of the 8,000 residents in SoHo (South of Houston Street) and NoHo (North of Houston Street) in lower Man- hattan are artists and theirfamilies. The official sanctioning of the conversion from industrial to artistic space has produced some charges that the law actually pushed out small textile manu- facturers who generated more employment than artists. But probably the bigger threat to the working environment oflower Manhattan is the popularity of these neighborhoods with stock- brokers, lawyers and other middle and upper class professionals who decided that once the artists have "pioneered" in these neighborhoods they would be interesting-and safe-places to live. Subsequent New York City actions have in fact tried to prevent the artists' displacement by limiting evictions and stabilizing rents for living and studio space. Since New York's experiment, dozens of cities, including Seattle, Washington, Los Ange- les and Venice, California, have tried to meet the living and working space needs of artists. The Los Angeles City Council enacted a live-work ordinance in 1981. to allow artists to combine living and working space in several. neighbor- hoods. Before the city could act, the California legislature amended state health and building codes to give local government greater leeway in setting the standards. Vacant manufacturing and commercial buildings in urban areas, said a legislative report in support of the revisions, "constitute a potential resource. . . . which would be physically and economically suitable particu- larly for use by artists. . . ." The proposal produced little debate: Los Angeles officials agreed the ordinance would eventually broaden the city's tax base, and owners of vacant industrial buildings were at- tracted by the prospect of new tenants for their buildings. One Los Angeles ordinance created a special zoning category for joint living and work- ing spaces for artists in selected neighborhoods, . and a second amended the city's building code to liberalize requirements on plumbing, heating, electricity and exits t.o make. conversions less costly. According to the Los Angeles Visual Arts Consortium, the ordinance has already made an impact: an "economic infrastructure" among artists has been created as they have moved to the rezoned neighborhoods from throughout the city. Out-of-state artists are relocating to Los Angeles because of the legal status of combined live-work space, property values in the rezoned neighborhoods have increased, and businesses that supply artists are moving to. the neighbor- hoods. Street Artists Programs Supervisors of the city and county of San . Francisco set up a Street Artists Program in . 1972, which established space for vendors of handcrafted articles, a licensing procedure, and a lottery to distribute space daily. Pressure for the program came from both. downtown mer- chants who complained about competition from street merchants and from street vendors frus- trated with daily battles over scarce sidewalk locations. The law defines 20 locations for artists, of which 175 are of them downtown and near the popular Fisherman's Wharf, certifies artists and their work as eligible for the program, and alIo- . 19 cates spaces through a lottery three times a week. Additional slots are opened during the Christmas shopping season. The San Francisco Arts Commission designates the sites and used a panel of artists to certify street artists. While the program has succeeded in defus- ing tensions between artists, vendors and mer- chants, it has not been an unqualified success. A shortage of sidewalk space for artists persists with about 300 competing for the 270 spa~es during peak. periods. While no one has studied the income street artists earn, reports are wide- spread of many artists earning up to $500 per day from street sales. A number of successful careers and businesses have been launched on the city's sidewalks which, in the aggregate, offer employment for the largest group of artists on the West Coast. Vending Revenues Winston-Salem, North Carolina, is among the cities which grant arts organizations and other non-profi~ groups control over sales at festivals. The ordinance, passed in 1983, pri- marily benefits the Winston-Salem Arts Coun- cil, which sponsors two major annual festivals in the city. Sales at the events generated consider- able profits, and local officials sought for years to find a way to control food and beverage vending at the festivals and direct profits towards the arts. The city's answer: grant organizations that receive permits to sponsor "exhibition shows" the right to control the sale of arts crafts, food, and other articles at their exhibition site. Gen- erally, annual net revenue is about $100,000 from sales at the two festivals. Lima, Ohio, has a similar arrangement for the Lima Arts Coun- cil, which sponsors that city's annual arts fest. Admissions Tax: Exemption Arts organizations have been exempted in many cities from paying city admissions taxes which are levied on event ticket sales. The exemptions allow the groups to retain a larger portion of the income they generate and avoid . some of the uncertain ties of raising funds. Since 1973, Seattle has exempted non-profit organizations from the city's five percent admission's tax. The law applies to operas, concerts, dance recitals, and other musical en- tertainment, plays, dramatic readings, exhibi- tions of paintings, sculpture, or other artistic or historical objects, and to museums. Groups seeking the exemption are certified by the citys Director of Licenses and Consumer Affairs. By 1987 t about 104 organizations in Seattle had been exempt from their admissions tax. The ordinance has run into very little political opposition. While no recent estimates have been made on the value of the Seattle Law, a 1977 study showed 50 arts groups with $4.8 million in revenues from subscriptions and ticket sales had $240,000 in income that otherwise would have been paid as taxes. .- Donated Buildings, Services and . Festivals From Seattle's City Center which gives low cost studio space to artists, to Shreveport, Lou~ isiana, which "rents" its civic center to the local symphony at no cost, cities across the United States provide indirect public subsidies in the form offree or reduced-cost space. Other cities, most notably Charleston, South Carolina, have become partners in. the promotion of arts. festi~ vals. Sensitive issues in all these cases are the appropriate level of city donations and partici- pation and whether the city can get anything in return. In the case of the performing arts, city governments do have the potential to reduce the subsidy by taking a share of ticket and food concession revenues. Some cities achieve the same goals by pro- viding arts groups and cultural institutions with in-kind services, most frequently free mainte- nance and technical assistance. Denver, for instance, supplies heating and air conditioning and pays telephone and utility bills for the privately run Denver Art Museum. The ar- rangement, which dates to 1932, now costs the city about $850,000 a year. Denver also provides direct operating subsidies and other public monies to the museum. The Arlington County, Virginia, government provides arts groups with financial support, technical assistance and donated equipment. The county hires arts administrators and con- sultants to provide arts groups with technical assistance in leadership and professional train- ing, marketing and public relations. In the wake of Proposition 13's tax cuts, Palo Alto, California, has shifted from producing plays in its own theater to donating the theater space .~ 4. 20 to private groups which also receive a. city con- tract to put on the plays. The method has proven a less expensive way to bring theater to the people of the city. Biloxi and Shreveport These two southern cities have demonstrated some of the most creative programs in providing low- or no-cost space for the arts. Biloxi's Saenger Theater is the only one'in the. Gulf Coast region suitable for stage plays and musicals, and city officials agreed unani- mously to spend $200,000 in city funds to reno- vate it. Once the modernization was complete, the city made this public asset available to local, non-profit organizations. The city's pricing policy charges non-profit groups a rental fee high enough to cover utility costs for running the theater; in 1985 it was set at $75 per night. Sponsors of for-profit events pay $225 per night plus ten percent of gross ticket sales revenues to the city. Biloxi's two- tiered approach allows it to subsidize the arts without spendingcityfWlds or providing in-kind services, and at the same time has created a magnet to lure area tourists to the city. Shreveport's experience in making its civic center available to the Shreveport Symphony suggests that cities can use arts groups to pro- mote under-used city facilities and even make money from the activity. Shreveport city officials began offering the $9 million Civic Center free of charge to the symphony when they were faced with sparse bookings for the facility. In return for free use of the Civic Center during the summer, the sym- phony agreed to provide a series offree concerts for the city. The city makes a small profit through its share of concession sales at the events. The symphony concerts have also worked as a valuable marketing tool for the Civic Cen- ter; bookings for other events have risen since the symphony began performing at the Center. Baltimore's School No. 33 By converting an abandoned Baltimore public school into an arts center offering classes, free gallery space, and low-cost studio space for artists, Baltimore has proven that cities can successfully donate facilities for reasons other than perfonnance. To justify the public investment required to renovate the school, the city designed the arts center to provide services to Baltimore's school system, whose arts education budget had been cut severely in the 1970's. The centers educa- tional program, offering classes at modest fees, primarily benefits neighborhood residents. Its gallery program allows artists - who have not been shown in commercial galleries to display their work free of charge. In return for the reduced cost of studio space, its studio program required "resident" artists to frequently open their studios to the public. Schools. throughout the city schedule student trips to the center. Artists pay $75 per month rental for each of the nine studio spaces. The costs of renovating the school were paid largely by the federal government. The center currently generates about $20,000 per year through rents, classes and community programs and attracts $10,000 in federal and state sup- port. Baltimore provides the remainder of its $112,000 per year operating budget. Festivals .city arts festival~ ha~e---proven so ~c_c~sm& that even distressed cities without obvious tour- , ist draws !lave ericoura1!ea -tJ1em as economic development tools. Bethlehem, Pennsylvania's '-MusikFest paid off handsomely for the commu- nity in its first two years, attracting 180,000 people in its first year and more than 400,000 from around the Mid-Atlantic region in 1985. The ten-day festival, which features everything from classical concerts to rock groups and Amish folk ensembles, is the centerpiece of the city's strategy to develop a tourist base to supplement its flagging steel industry. Fifty local corpora- tions have taken the lead in financing the festi- val. The classic case of city involvement in arts festival is, of course, Charleston and its Spoleto Festival, which began in 1977, and has risen to international fame. In 1975, Charleston waged a successful campaign for the right to host the planned North American "sister" of Italy's Spoleto Festival, one of the most venerable classical music festivals in the world. To receive official designation from Spoleto officials, the city pledged three city-owned performance halls for the event and also agreed to handle logistics, including site preparation and security. The mayor's office lined up pledges offinan- cial and promotional support from area busi- 21 ness, civic and arts groups and won state and federal financial support as well. Business people became motivated to lend their support because of the expectation of increased tourism, retail sales, and long-tenn promotional value. The experience of Charleston's Spoleto, even with its built-in publicity and organizational advantages from the original Italian Festival, shows how difficult such events can be to organ- ize and how crucial mayoralleadershipcan be i,n salvaging the event. After a series of disputes about financing, Mayor Joseph P. Riley Jr., stepped in and personally took control offestival - / planning. Spoleto quickly became the world- class music festIval its organizers had intended, but many Charleston residEnts did not identify with or attend. the event. In response, the city established Piccolo Spoleto, which showcases local talent and is aimed at residents. Charleston's festival is not the only one which has become embroiled in controversy. Former Chicago Mayor Harold Washington canceled the city's nationally famous Chicago Fest and overhauled the city's extensive pro- gram of festivals after charges about political favoritism in previous administrations. Under the leadership of the Reverend Jesse Jackson, blacks boycotted the event, and.a major lawsuit over contracting practices was brought against the city. In 1987, the mayor's office of Special Events presented a series of summer festivals which targeted both downtown and neighbor- hood audiences. Three of these, the Chicago Jazz, Blues and Gospel festivals, generated $437,000 in revenue and were attended by 995,000 people. Gift Catalogs and Donated Materials City sponsorship of gift catalogs listing the needs of arts groups has become another un- usual way for cities to encourage private support of the arts. Gift catalogs usually solicit dona- tions to enable institutions to purchase specific items displayed in the catalog. Biloxi, Mississippi, for instance, used a gift 'catalog to raise money to help refurbish the Saenger Theater, its municipal performing arts center. The catalog was produced by its Cultural Affairs Office, which inventoried the theater's holdings and drew up a list of needed items. The effort raised more than $6,000 from 400 people. Since 1982, the Sacramento Department of Community Services has distributed a gift catalog annually seeking donations for a variety of city programs, including the arts. . Chevron Oil underwrote production of the catalog, which in 1984 raised $121,000 in pre-publication dona- tions alone. New variations on public fundraising are "earned income techniques," through which a city. agency markets products to the public. Sacramento's sale of a specially designed poster touting the city has raised more than $30,000 for the city's art commission. Advocates say this method allows a city to be entrepreneurial in raising money for the arts. New York City uses its donated materials program to collect and distribute surplus equip- ment from the private sector to arts groups. Old department store cases have been converted into museum displays, and old high-fashion mannequins have been used in costume exhibi- tions. The program was set up in 1978 by the Department of Cultural Affairs, which picks up materials, stores and catalogs them, and distrib- utes them to arts organizations. The Materials for the Arts program provides a conduit for business donations that cost con- tributors little or nothing. The New York Times, Village Voice. and Newsweek have donated advertising space to the city to publicize the program. The administrative costs of Materials . for the Arts, which come to $140,000 per year, are paid for by the National Endowment for the Arts, the New York State Council on the Arts, and several foundations. The program annually distributes material worth about $500,000 from 500 donors. .~ .~ Cable Television Cable television's promise of possibly hun- dreds of stations in each city devoted to every conceivable community interest raised the hopes of public officials and arts advocates across the country. In addition, some arts promoters hoped that cities would set aside revenues from cable franchises to benefit the arts. Nationwide, cable television has been a disappointment in this respect, but there are several examples of suc- cessful city efforts. Several cities, through franchise award procedures, have taken fun advantage of cable television to secure money and visibility for local arts organizations. As part of its franchise agreement. Tucson won two public access chan- nels for the arts and dedicated a portion of 4. 22 . . subscriber revenues to the city arts conitmsslon. City officials estimate the revenues will eventu- ally produce $200,000 per year for equipping and staffing the cultural channels and produc- ing programs. In New Orleans, the cable company awarded the city franchise set aside $450,000 for the Municipal Endowment Fund for the Arts, Humanities and Community Services. Half the fund provided grants to local arts groups, and the other half supports community cable pro- grams. Under the cable contract, whenever New Orleans' cable operator is awarded a rate in- crease, it must increase support for the fund by the same percentage. The cable franchise in La Mirada, Califor- nia, agreed to set up a $750,000 revolving invest- ment fund to support locally-produced arts pro- gramming. Profits from the syndication of pro- grams are split between the city and the cable company. The cable company also dedicated $35,000 to improve lighting at the city-owned La Mirada Civic Theater to make TV productions possible and $70,000 to hire consultants for television productions. The use oftbe theater by commercial producers to film cable programs has provided a profit to the theater as well. Despite these successes, the prospects for cable television to help the arts are speculative. Almost all the nation's major cable markets have chosen operators and decided their com- munity programming priorities. As franchises are renegotiated within the next five to ten years, new cable contracts may lead to packages which include the arts, but the ailing financial condition of many cable companies is likely to lead cable operators to reduce costs and exclude the arts. Tax Checkoffs Tax checkoffs, another system of individual fundraising, allow taxpayers to specify how their tax payments will be allocated or to add a dona- tion for a particular organization or purpose to . their taxes owed. San Diego County, California, allows several arts organizations to include promotional material soliciting donations in county property tax bills. Oregon, Alabama, and Louisiana permit taxpayers to earmark a por- tion of their tax refund to the arts. Nationwide, about five percent of state taxpayers use check- offs to make contributions to all kinds of causes. Advocates of the method point out that surveys have shown that tax checkoffs are generally used by people who would not otherwise make contributions. When San Diego County's supervisors au- thorized a property tax checkoff for the arts in 1980, their major goal was to reduce the depend- ence of local cultural institutions on hotel/motel tax revenues. . They hoped that by increasing taxpayer support, some hotel/motel tax revenue could be diverted to other purposes. Contribu- tions to the plan average $40,000 to $50,000 per year, and the checkoffhas met the goal ofreduc- ing hotel/motel tax outlays to groups that re- ceive tax checkoff money. In addition, arts organizations have accumulated a new list of potential contributors for future fund-raising. The county distributes literature from four organizations with its property tax statements, and citizens can write a separate check to any of them, or designate another recipient. COMBO, a group that coordinated fund raising for 21 San Diego visual and performing arts groups and museums, and three local museums include lit- erature in the .statements. The county absorbs all the costs associated with the program. Local arts groups in Oregon receive funds from a statewide arts tax checkoff that was the first in the nation. Its tax fonns include boxes that can be checked for donations of $1, $5, or $10 for the arts. The amount is deducted from the taxpayer's refund and forwarded to the Oregon State Arts Commission. When the idea was first introduced in 1977, it encountered opposition from arts groups which feared the tax checkoff would substitute for subsidies provided from state general funds. By the time a bill was reintroduced in 1981, it had become more palatable, given state fiscal prob- lems which almost guaranteed cuts in state support. At the time, Oregon ranked 48th among the states in its per capita spending on the arts (13 cents). In that context, the checkoff became an altemativeway to expand aid to the arts. About 40,000 of Oregon's 1.1 million taxpay- ers take advantage of the checkoff, which has raised an average of$100,000 to $130,000 a year for the Oregon Arts Commission. . The Commis- sion uses the funds to build and renovate arts facilities. Gambling Revenues The spread of state-run or sanctioned gam- bling operations provides other potential ve- 23 hides for arts fund raising. Gambling schemes to allocate money to the arts are controversial, of course, especially in conservative communities, but it has proved a lucrative way to raise money for. arts groups and institutions. The most unexpected use of legalized gam- blingfor the arts may be in North Dakota whose legislature legalized low-bet gambling in 1981 with the provision. that most of the revenue would go to charitable causes; one of the largest beneficiaries is public television. Perhaps the most financially successful program in the nation is Massachusetts' "Mega- bucks Arts Lottery," enacted in 1982 after a decade of lobbying by proponents. of the arts. The plan was modeled after the lottery in Sydney, Australia, which helped raise funds for its $150 million opera house. Massachusetts'$1 tickets are sold for a twice- weekly drawing for a multi-million dollar jack- pot. The lottery raises $140 million a year, but proceeds to the arts are capped at $3 million. . - The remainder goes to state agencies and to municipal govemmentgeneral furids. Cities receive a share of the money based on population, per capita income, and real estate values. Boston receives 14 per cent of the pro- ceeds, the largest individual share. Each small town receives a minimum of$l,OOO. Local arts lottery councils distribute money to arts groups. In the most recent round offunding, about 2,000 arts organizations statewide received lottery money. Florida permits pari-mutual gamblingreve- nues from horse and greyhound races and jai- alai matches to flow to non-profit organizations including arts groups. Race tracks and jai-alai frontons are allowed to sponsor special charity days, with gambling profits earmarked for char- ity. The practice dates to the 1930's, but in recent years 'revenues to the arts have declined as larger portions of the money has been awarded to education and other sectors. 24 Chapter III Local Arts Agencies \ ;/ "A While municipal concern for the arts in the United States can be documented as early as the late eighteenth century, and financial support has been a fixture of city and county budgets for well over a century, only since the early 1970's have municipal governments begun to establish arts agencies to coordinate and administer their various arts and cultural programs. Prior to the establishment of the National Endowment for the Arts and the state arts agencies, most cities dealt with arts funding on an ad hoc basis and most of their arts programs, such as free parks concerts or public works of art, were spread across several departments and boards. In 1972, the City of Seattle became the first major city to reorganize all its arts functions under a single city agency, the Seattle Arts Commission. New York followed suit in 1976 with the establishment of the Department of Cultural Affairs under an appointed commis- sioner, responsible directly to the mayor. That same year San Antonio became the first city to designate its private arts council as it~ official arts agency, setting another pattern which would be adopted by many cities such as Houston, Columbus, and New Orleans. Today there are over 900 professionally directed local ar~~s agencies serving most major - . .cities and many mid.size and smaller COiiliiiUiii- ties throughout the United States. It has been estImated that these agencies affect the expen- diture of over half a billion dollars annually in public and private funds for the arts. In addition to providing grants to arts organizations, these agencies also provide commissions for artists, maintain and operate arts facilities, coordinate public arts programs, conduct long. range plan- ning, and provide technical assistance and serv- Ices. A roximately 75 percent of the local agen- cies are private n~pro 1 organIzatIOns, many 'of which are con tracted or d.esjgnated to wOrKon oehalfoftheir local government. The remaining' .25 percent are operating agencies or depart. ments of city or county government. Most of these public agencies work directly through the Office of the mayor, while a few may be lodged within parks or economic development depart- ments. While some cities continue line-item fund- ing by city councils for selected arts organiza- tions, in recent years most cities have adopted the decision-making model offederal and state agencies. They use peer review panels working with a professionally staffed agency under the oversight of an appointed or elected board or commission to determine funding allocations. Most local agencies provide 2Tartts which must .....00 matched with additional private support, 'thereby increasing the leverage ana-investment -Of public funQs. - While local, state, and federal funds have. become an increasingly important factor in the operation and development of arts programs, private support, particularly from corporations and foundations, has grown substantially in the last few years. Most local agencies try to main- tain a public-private partnership in arts sup- port. Certain cities also have established strong business-arts aUiances through their local agen- CIes, such as in Baltimore, Memphis, and Louis- ville. At least fifty cities throughout the nation use the United Arts Fund approach whereby the local arts agency solicits funds on behalf of a group of arts institutions from individuals, cor- porations, and foundations. Winston-Salem, Ft. Wayne, St. Paul, and Cincinnati have all used this method of fund raising with great success. A 1983 report which surveyed 43 united arts funds foupd the group raised $33.4 million for the arts. Several cities now use non-profit united arts funds designated or administered by official city arts agencies to distribute public funds appropriated for. arts groups. The funds are particularly important in smaller cities: The 1983 surveyfound more than half of the united arts funds in cities with popu- lations under 250,000. Other cities, however, do not use the united fund approach for individual giving, which is left to the institutions, but concentrate solely on corporate giving. Still others believe that private fund raising should 25 be solely the responsibility of the arts organiza- tions and restrict their local agencies to solicit- ing and distributing only public funds. , Recently a tre.nd whi~h has been developing in' areas has been t e JOl~ ~1, ~coun agency., Underthismo 'e, o city and county governments allocate their arts funds through a single agency which serves both jurisdictions. In this way ,the agency has the advantage. of tapping funds for arts' and cultural facilities which may be located with in the countyjurisdic- tion while the users may be residing in the country, outside the taxing authority of city government. For the county, this arrangement also insures that its arts needs will also be considered. Sacramento city and county, Santa Barbara city and county, White PlainsIW estch- ester county, New York, and JacksonlHinds County, Mississippi, are but a few examples of outstanding cooperation of city and county gov- ernments that work together on arts needs and support through a joint agency. Most recently in South Florida, the model of city/county cooperation has been extended to include a consortium of four counties, Dade, Broward, Palm Beach, and Monroe, working together on. a regional basis. In this way all of the cities, arts institutions, artists, and citizens benefit from cooperative planning to address common problems such as need for promotion and touring for an entire region. The result has been increased visibility for the arts and in- creased financial support for all Noone model of a local arts agency win serve every community. Each agency must be adapted to a particular community and its arts needs. There are, however, certain characteristics that identify all good agencies. All are under the direction. of 8 profes~jnna] director with vision and the oversiKht of an active _and committed Doard or commission An have the involvement and SUDport of their Dolitical and community ieaders.' All good aE!encies are involved in a ~ntinuingpTocessof1nng-nmge planning-which insures input by all se~ents of the communi~, and all are concern im rovin h ual- 1 as well as the quantity, of the arts in their communitie~. ~ In 1983, the National Endowment for the Arts established the Locals Program specifically . to encourage increased and sustained state and local public support through local arts agencies. Early reports indicate that for every federal dollar in grants, the local agencies have been able to raise at least five additionaIdollars in new money. To date, the local agencies partici- pating in this program have more than doubled their annual appropriations from local govern- ment. It is expected that this program will provide a major new source of support for local governments and their local arts agencies. Because this program has developed at a time of general reduction in federal support, it is an indication of the importance which the Arts Endowment attaches to local arts agencies in the context of overall support for the arts. For- mer program director Robert Canon has stated that "many of the future decisions regarding the support and development of the arts will be made by local arts agencies." Most state arts agencies also have increased their support and involvement with local agen~ cies. Nearly half the states have some form of decentralization program in which the state agency provides grant funds for smaller arts organizations which are administered by the local arts agency. In some states the local - agency has become a working partner with the state agency to help determine long-range arts needs and funding strategies. It is anticipated that state funding will increase for local arts agencies during the next few years. The emerging "public partnership" among the federal, state, and local agencies makes it essential for local government officials to strengthen their own agencies' resources if they are to compete successfully for limited public and private funds. Most public agencies are in the process of developing a highly sophisticated network for communication and infonnation- sharing. The most successful local agencies have already established good systems for plan- ning and resources allocation and are increas- ingly involved in community and economic de- velopment decisions. ,Most city officials today re~lize that the arts afen~ does not simpl~ serve A n~rrnm ~\Ilt&Fal G9A.ttituency bnf: !';.erves 'the city as a whole. ..:.. . ~ 26