Memo- Arts Funding
.
Administrative Services -
Office of the City Manager
Memorandum
To:
From:
Date:
Subject:
Honorable Mayor and Members of the City Council
Steven C. Mielke, Hopkins City Manager J;t
May 25, 2000
Arts Funding
Attached are several pieces of information on Arts funding. None of this is new
information but I thought it might help to stimulate discussion on the various options.
At the worksession, as I understand the direction, we will attempt to narrow the various
e funding options so we can begin working toward a debt reduction plan.
.
.
.
.
IAdministration Department I
Memorandum
To:
Copy:
From:
Date:
Subject:
Steve Mielke
n.a.
Jim Parsons
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;
. Encouraging grants and private donations to the arts in Hopkins;
o 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 2% 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
The City of Hopkins has begun to look at the following possible revenue sources for
public arts projects and activities in the community:
.
,:" Percent for Art: allocation of city capital spending for the arts;
_" City charter amendment to allow use of parkland dedication fees for the arts;
-:> 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 required for sLlch a city tax in Minnesota.
Pen::;en~ 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 te' \ncludr 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 major cities around the U.S.
Percent for Art
J\ustin, Texas 1
Broward County, Florida (Fort Lauderdale) 2
Dallas 0."15 - '1.5
Denver 1
Kansas City "1
Los Angeles 1
Miai'ni '1.5
New York City 0.5 - "
Philade!phia 'I
Phoenix up to 'j
Portland '1.33
San Antonio 1
San Diego case by case
San Francisco 2
Seattle -I
.
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
"vvorking zones." Phoenix has completed approximately 45 public art projects since
'1989, i8nging 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
.
.
e
.
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 Sroward 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
Sroward County, $20 is returned to the Sroward 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 functional 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 'vVWW.culturela.org/deptl
public_art/pubart.htm; excerpts are attached.
Tax on New Construction: Hopkin.s
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;
c. Projects that do not alter the size or occupancy load of the building;
n Fire sprinkler installation;
o Flood-proofing;
(, 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 \f;Jould have to create policies and
procedures governing that process. Authority to spend funds generated by the arts tax e
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
tho City's goals is to ray 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.
'f)il}mrn<e ,ot Speda! tegis~atior!
~L
}-\uthorization. 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-residentai construction.
Pisposition of proceeds. The law would state that all funds raised by the tax
'vvould 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.
Public hearing. The law might stipulate certain public hearing requirements for
the City.
Reportinq requirements. The law might require the City to report on collections
and other details of the new tax to the Minnesota commissioner of revenue.
ill.
IV.
...~
...
.
.
e
.
Attachments
. Minn. Stat. 168.35 Art in State Buildings
. Minn. Stat. 469.190 Local Lodging Tax
. Minn. Stat. 473.592 Subd. 1 Local Sales Tax (Minneapolis)
. City of Los Angeles Public Art Program
. City of Albuquerque Public Art Program
. City of Austin, Texas, Art in Public Places Program
. Broward County, Florida, Public Art and Design Program
. City of Phoenix Public Art Program
~ City of Portland, Oregon Public Art Program
~ City of San Antonio Office of Cultural Affairs
5
16"8.335 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 finance committee and the house of
representatives ways and means committee for their recommendations 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 art 1 s 27; 1990 c 591 art 6 s 1; 1990 c 610 art 1 s 42; 1992 c
513 art 4 s 23; 1993 c 4 s 11; 1994 c 643 s 42-45; 1Sp1995 c 2 art 1 s 24-26; 1996 c 463
s35
16B.34 JINMATE 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
Jl6'8.35 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 the
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 thc construction or alteration of which is paid for
wholly or in part by the state.
Subd. 2. Exempt ollllildings. 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 detennined 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-
pended for 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
SERV][CES TO STATE AGENCIES
16J1U6 INVESTIGATIONS.
Subdivision 1. Authority. The commissioner 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 duphcat1o~
of function, effort. or activity, so far as possible. The commissioner shall periodically subJIIlt
546
547
to the legislature a list of the s
scheduled at the time the list i
colleges and universities is a
Subd. 2. Hearings. The
sary changes in the laws of th
order to secure a better organi
my in administration. For this
poenas for and compel the att'
tion of books, records, aceou
History: 1984 c 544 s 4
12
16B.37 REORGANIZATH
Subdivision 1. Commis
cion, the commissioner may
them, from a state agency to .
year prior to the date of transf
ernor. The commissioner shall
bill making all statutory char
sioner during the preceding c
colleges and universities is a
Subd. 2. Reorganizatio
the form of a reorganization 0
chairs of the governmental 0
senate at least 30 days before
must be filed with the secret~
ly. An order is effective upo
amended or superseded. Copi
sioner to the secretary of the ~
mental operations committee
order which transfers all or SI
ment, the housing finance ag
ratificd by concuncnt rcsolu
Subd. 3. Appropriatiol
part of the appropriation to tl
sonnel, power, or duty, and tJ
agency.
Subd. 4. Work of depm
cy, the commissioner may di
division or section of an agel
agency and shall require re
agency are reappropriated to
the transfer warrant procedu
Subd. 5. Employees aSI
the heads of the department~
employee of a department or
der another department or al
lllistory: 1984 c 544 s '
:Jl6B.38 DISSOLVED OR 1
The commissioner shal,
~bich has been temporarily
lnclude but are not limited to
pended agency including pa)
property of the agency; and, .
pended, serving as its chief a
1112
1113
ECONOMIC DEVELOPMENT 469.190
n.bonds by reason of
a ~ e or mortgage on
lic e bonds arc issued
~solution to be necessary
IS, and they shall so state
; other than the revenues
issuing city be subject to
Jay the bonds from funds
10 holder of the bonds or
xing power of the issuing
:he bonds or obligations,
. other public body other
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 MiD
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 resort, 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 determines 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. After 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 tl>e 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-
Jonds or obligations may
ardance with a program.
erest on them,
money derived from loan
ages securing loans made
ceived under them to the
I, may make other cove-
teemed necessary for the
its rights under the mort-
ust for this purpose, con-
stee as considered neces-
r6r the city shall not
]"r)~nds or obligations
:r of the bonds or obliga-
mblic sale, at the price or
ase purchase, or other in-
this section.
5TRY AND EMPLO Y-
~d by the grant, may con-
lote industry and provide
STATUTORY CITIES.
1 a bureau of information
,d for outdoor advertising
cts concerning the recrc-
nmunity.
'oAR.D; FIRST CLASS
ly purposes. The city may
The proceeds of the levy
469.190 ECONOMIC DEVELOPMENT
1114
1115
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 been submitted to the voters residing
in the unorganized territory at a general or special election and a m~01ity 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
TARGETED NEIGHBORHOOD REVITALIZATION PROGRAMS
(4) the gre
equipment, or 0
a profit or nonr
mentation of a
(5) city me
ture facilities 0
(6) money
wise provide fiJ
or program rel<
(7) money
opment activiti
(8) money
law, and expenc
gram;
(9) admini
implementatioJ
(b) City IT
(1) city ffii
vided througho
in a targeted ne
(2) Ie
ly from t .t
financing ov
(3) mone)
Subd.5.<
nomic develop
Subd.6.1
provide housin
or moderate in
improvements;
future for hon:
construction,n
activities also i
and grant progt
borhood, the c(
grams authoriz
Subd.7.1
talization activi
a cooperative,
exceeds 125 pe
bilitation.
Subd. 8. I
means persons
Subd.9.1
ate income" me
subdivision 18
Subd. 10.
one or more ce:
States D.
section 4' .:
addItional area
Subd. 11.
the money desi
program.
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 DEVELOPMENT 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.
History: 1994 c 614 s 12; 1996 c 369 s 12
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 citY
of the second class that is designated as an economically depressed area by the United States
Department of Commerce. For each city, a port authority, housing and redevelopment au-
thority, or 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 govemmcnt, 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 469.174 to 469.179 or other law, if
eligible, to be spent in the targeted neighborhood;
473.581 METROPOLITAN GOVERNMENT
98
revenue anticipation certificates under this subdivision. So much of the anticipated tax and
other revenues as may be 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
473.591 [Repealed, 1979 c 26 s 3]
473.592 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 lax 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 detennined 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 basketba1l and hockey arena debt service fund or funds, including any
reserve for debt service, sha1l 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, sha1l 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 tw~year period. Once the tax is imposed by the city, the tax imposed for the
benefit of the Minneapolis park and recreation board sha1l 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-
~
99
I
11
,
Ii
ili
,
,i
I
~"
'I
,
,
~
,q
,
t
~
II
.
If
i:
if
Ii
~
r
i~
['
I:
F
~
~
I,
,t1
1:>>1
,',
j
suance of th
dome or the
hockey aren
ers of the be
shall not be
ment for the
not be acqui
accordance
penses of 01
The tax shal
sales and USI
visions. The
collection, s
neapolis for
shall deduct
indirect statl
minister, aUt
fund of the 1
gether with '
473.595, int
473.581, anf
sion arising
for payment
tion 473.581
The proceed
ceeds may b
Thepn
together wit
arena under
funds, estab
operating de
maintenance
debt service
expenses of
Subd. 2
Histox;
473.595 C(
Subdiv
and maintaiI1
any private (
tivities at th(
taxes impos(
such sale or
sales price sc
the person a(
tributor, and-
er, seller, or (
ner as other (
missions ma
to file return
nonpayment
sure the prof
Notwitl
sion tax upor
ary with the.
-----~
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 metro-
dome or the issuance of bonds under section 473.599 and acquisition of the basketball and
hockey arena and shall constitute 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 shall 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 the 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 commissiion 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 operatioll1 of the metror'''''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, except 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 commission 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
~ipality to impose a
for the purposes and
'3.599. The tax may
quor and fermented
ld municipal liquor
lion 5, clause (2), on
eriod of less than 30
d within the munici-
nption 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
Ider 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
tinds, 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
il and before the is-
4730595 COMMISSION FINANCES,
Subdivision 1. Metrodome admission taxo The commission shall by resolution impose
and maintain a ten percent admission tax upon the granting, issmmce, sale, or distribution, by
any private or public person, association, or corporation, of the privilege of admission to ac-
tivities at the metrodome. No other tax, surcharge, or governmental imposition, except the
taxes imposed by chapter 297A, 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 unifonn 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
~ (~~' :l~ k-;i, ...N~fx<
{Si~t..~~tof<(I'i<~""I ~~;;M*,liOli*
festival s
calendar
grants
c
(~O1ll munity
arts
JH'~hiH~<;;lll~#
hl$wdc
[!n,~!,.n'''t'lwl
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. Qpportuniti~.~
1. Background
In 1989, the City of Los Angeles adopted a series oflandmark 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.
For further information on the Public Percent for Art, di.c.kJ}~re.
b) The Private Percent for Art program, (officially referred to as the Arts
Development Fee) applies to any private, non-residential construction over
http://www.culturela.org!dept/public_art/pubart.htm
Page 1 of2
----'
2/1 7/00
Public Art Page 2 of 2
$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.
For nJrther information on the Private Percent for Art, ~Jick her~.
3" The City Art Collection
For information regarding the City Art Collection and to view recent
acquisitions, clickhere.
4, Murals
lVlurals are an integral part of cultural expression in the City of Los Angeles.
They have been createcl 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
b~fe.
.
:'J. Opportuflnties
For a list of opportunities with The City of Los Angeles Public Art Department,
~lick here.
!J Back tOJQQ
n Home
+ F esti v{ll s+Cal end ar+Grrtnt s+Publ i c Art + t\rchi tectIJre/Historic
Preserv(ltion+rommunity Art~+
.
http.llww"V!eLllturela.org/deptlpublicnart/pubart.hUn
2/1 7/00
.
.
.
Public Percent for Art
-::~r~fsx.::.o~~(
&.r&Jl."~,,,(lsolt<<"~~
publk
art
festivals
ealendar
grants
community
arts
<lrcl.lit<>r:t'ut'i.'/
hj~lflric
f1r",,,,}t'\<JlHQll
l....:.~
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:
1. pro-lram History & Mission.
2. Goals
3. Project Cycle
L 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.
2. Goals
II To provide appropriate forms of artistic expression in all City capital
improvement projects;
1'1 To integrate the work of artists in the design and planning of capital
improvement projects;
ill To ensure that qualified artists of all genders and ethnic groups are
represented;
http://www.culturela.orgldept/public_art/pubart2.htm
Page 1 of2
._-~
2/1 7/00
Public Percent for Art
To provide a variety of a11s and cultural activities; and
El To ensure the highest quality of artistic excellence.
30 JPmject Cycle
WI City department or agency that is funding the project coordinates with the
Cultural Affairs Department's Public Arts Oivison to develop a profile of
the community surrounding the project site.
ffi 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).
rl 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.
['J The selected artist will meet \vith 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 infOImed of the project
through a meeting where the selected artist wiII present their proposal and
hear the comments of cOlIUllunity members.
'J Back to t012
I~, pack tgPubli~i\IU~.jIlin Page
T~
.G nome
hj--I-jo....I!n,'"\~ln~ ,....,.l-hli-olo") rd.,r/.rlC),n+(nllhl~r" '=I..--t/nllh'7lt-tl"") htr'll
Page 201'2
.
.
.
") I 1 7 Ion
.
.
.
Private Percent for Art
. ~~~~I~(Uo:~~(
ig:r.@I~,,~...~!t<;~OO
festivals
pnblie
a.rt
calendar
grants
com munity
arts
il.n;hit <'1~ I;.r"'l
"hi~tfl fie
r,r,".~'3r~'i1tji:lt\
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:
1. What is the Art~Development Fee (AD F)?
2. Whi~h projects are subjects to the ADF?
3. Methods of satisfying the ADF
4. What Illakes 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.
2. 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.
http://\VWW.culturela.orgldept/public~art/pubart3.htm
Page 1 of3
2/17/00
Private Percent for Art
2. The repair, renovation or rehabilitation of a building or structure that
does not alter the size or occupancy load of the building.
3. The repair, renovation or rehabilitation of a building or structure for the
insatllation of fire sprinlders 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 citation 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.
3> Methods of satisfyfing !the AJDlli'
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
ree
II This is ~~ilected by the Department of Building' & Safety'at the 1
1'1 time a. Building Permit is issued. ~he money is deposited, in the,
: CIty's Arts Development Fee frust Fund to be used III i
Ii accordance with the Cultural Masterplan and the guidelines J
;i _, _ established by citY' code., _ _
I ,A developer may obtain credit for the ADF by agreeing in
I I
- 1 writing to undertake an art project within the City of Los
!, Developing Angeles. This project must meet the guidelines for eligibility
an art !! established by administrative code and be financially secured
project OK' I through a written agreement with CAD. CAD will then issue a
!program. waiver which may be presented in lieu of payment to the :
:Department of Building & Safety at the time a Building Permit iSI'
:1 pulled _, _ ._
4[, What makes 3!l1! 2ft ]project eligible?
I f a developer chooses to undertake an art project, there are MAl\fY ways in
which the ADF requirement may be satisfied:
n) O.dt!lB"a~ Rtmn 2lR,tistk amt'11~ties,
httn //-I,N\\/W cll1i11ieh onr/(hcnt/nllhlic ~rt/nllh~rn him
Page 20f3
.
.
.
')/'17100
.
.
.
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).
II Back to tog
II Back to Public Art Main Page
II Horne
bttp://www.cuItureIa.orgldept!public_art!pubart3.htm
Page 3 of3
2/1 7/00
.
.
.
/mast 02.map/mast 02.map
~;'.'.....'.'.'. ..... .". .". .". .". . ..,..-.............. .... ".' ... ....~....,-~..~.-.~~;-, .. .. . '". .. -:---."". .". .. .
._.,'_.C..'_\._...:;'-:'T..';<......-:-.C-.....,..........c...'.........v....;-................'................_.
"."... '..~...'"....... '..~....._._._._._._._._._._._._._._._...c..._.c..
I ABa ARTICLES I ABa TOUR I
CITY OF ALBUQUERQUE
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: ispraQue@cabQ.Qov
City of Albuquerque Public Art ProQram
\MNW: City of Albuquerque Public Art ProQram
Contents
., ".. ....... .. ...... .. ...--........... . n. . .........-.-,...
Introduction to the Citv of Albuaueraue Public Art Prooram
City Regions Related Pages
Old Town Area ..; Albuquerque Public Mural. Installations
Downtown . Albuquerque International Sunport Art
; Collection
Southwest :
:
.. ..",.. ..,...... - ...... ..... .. ...,..,..... n ,.
West Side - North :
Vallev
............ ....................,.. .. ....... ........,....... ........... .. ...-. . ..... .. ....,.. ................ . .......
Northeast : SOS! Save Outdoor Sculoture!
Southeast Leoend to fundina sources o:.::.:~~:
.~u.
.
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 1mage: @ '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 Alt,
revenue bonds, state legislative appropriations, the Urban
Enhancement Tt"ust Fund and from other community organizations,
businesses and individuals. ,0..5 it. adds exciting new works and
preserves OLlr 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 oLlr heritage, stimulate the imagination, invite dialogue, and challenge the
human spirit.
Enjoy our history! Experience our variety!
City O'f Albuquerque Public Art Program
CIP Division / Mayor's Office, PO Box 1293, Albuquerque, NM 87103
505-768-3829
The Public Art Program has placed commissioned art of all types throughout the city in
a wonderful display of Albuquerque's rich Ilistorical, cultural and artistic variety.
.
City of Austin: Art in Public Places: About Us
.
AUSTIM OTY
CONNECTION
.
.
(1
:~';-;m- -. 1.---:- '11' -. I-I;:
, '. ... ..
. .. , .
, . . ..
f.W::-,:,( -:) "/::/ -.n ,:'
..,.. "..
"n.."..,......"...". H "T . n,._ __.' '. u, u..............................................._.
.. .. ..... ....... .......... .... .... ..." .,,,.....,..,,-,,.,..-.--...-,,--....,,-....,,--.
::::::n:fii:,:ifl~I~~iii::::,: ::~::::~::::~~:~IM~:~~:fl~:::::
.". ....,....,................,.............. ...
. ........n on... ......n....n.n.. un... .n....
0"'... ... .". .... ... ... .... .." ..__..,. .... ... ....."
conn'. .'. __.' ,
.,... ... ..... ............. ..... .. .. .........
:t::1:@:::(::::::::::::::;;&I~~j&~:::::
n on on on on .n.n."...n... n....n.n .n. n.
............,..... ...........................,......
u ._.u_........................ ..._. ._........
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 throughout 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:
,
TEXAS
~'!ioi_~"l \ ~H) ~
,;~ '~. ":"f.: ~ ~p. r.';
We would like to further recognize the City of Austin's Office of Internet
Services for their expertise and committment to this project.
. Panelists
. Donation Policy
o AlP? Guidelines
II City Council
,. Art Commissioners
. Julia C. ButridQe Gallery
. AIPP Ordinance
http://www.ci.austin.tx.us/aipp/about.htm
Page 1 of2
3/16/00
City of Austin: An in Public Places: About Us
Parks and Recreation ~epar:r:nent .11 ~.~. .
Cultural Affairs DIvIsion J:;
1110 Barton Springs Road, #201\\
Austin, TX 78704 f>~HI'"
tel. 512-397-1455 ~
e-mail: ~p~ustin.tx.u~ n!.u~
Austin CltvJ:onne<;..ti9JJ.
Source: City of Austin
Modified: Wed Mar 1 18:47:582000
httn ://"".II","W ci austin tx lls/ainn/;jhollt htm
Page 2 of2
.111 6/00
.
.
.
.
.
.
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
Pu hUe 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 vlsual 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. Ail
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-nthe 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
http://www.co.broward.fl.lls/cui00500.htm
3/16/00
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
AtTairs 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.
:i~a"1):
....::;E.....\1"nH4i<;.~'.:.
.0)- ,'-', ' .".:.
'.:' ~".:.:.
::' ':".'>: :~A>.fr?::r:.
',. .. .....,. .
http:/hvvvvv.co.broward.tl.us/cui00500.htm
3/16/00
.
.
.
.
.
.
Florida, State of the Arts License Plate
Page 1 of 1
Florida, "State of the Art" License Plates
. .
. - .' ," '.' ." '. ..'
. .
'i'fl' ..' :.1..... "D'" 'R' ...Vi.S.:..... .1'''5'' ....... '.'0":' .'.:,. .J.:...~:.....I... ......:...:.... ..:.c......:......
." :.' .'".." ..,- ,.' ':-'. --",: " '-"'.' '. -",: .'.: ':'-" ",-:' .:. -' . " .
.; ',", . -.,.. .'. ," -' -.',' ..,'.-', ' ......,..'. ..:'> . .'-.', ',' .... .>:- ',' ,-,'.: ',' ,'. :':. ',' ,', .-..'.
'.'" ':. ....... ..,...... :1:,:" "':':.' '.... .,H: :':' "'. .,.: .:,.:..,. ..,.F>-:Je:B...
.... .... ...... ....uTFiiN.I:I:aRI.~I(j.
,:,;;....
"<s:S.C
i:'~15rC
Vif:{t.
frnOW'AkAH.,.Awm
)f<< '..FltbM:ltH)~ . '..:
.. ....?Phh\b~::::"j~p. .... 't.~~tit40ff:HH~ .
THE DRIVE IS ON TO SUPPORT
THE ARTS IN BROW ARD.
The state has added the Arts License Plate to its vanity plate
program. The colorful plate has the words i1Florida" 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 AVAILABLE FROM YOUR LOCAL TAG
OFFICE.
http://www.co.broward.f1.us/cui01500.htm
3/16/00
Cultural Affairs
Page 1 of 1
.
~i,}j~lill'JlI.~'I~il!{C@,
::::/':\1*"''::5,,.,,:: "':~~,~~.'..:.~(g.~4r:~~r~~~90::~tJ.}..",8Q.'"., . q+~~l~.r:
,',.,', .... :.......'-;<....',
Welcome to the Broward Cultural Affairs Web Site. Explore the Arts!
There are over 200 cycnts taking place weeldy. If you can't find what
you are looking for, !:lick here to e-mail us with your Question and we
will try to assist you.
Explore the multitude and vadcty i!1l the museums
throughout Broward County from fine art to
science, from history to archaeology, from Native
Americans to outer space, there is so much to
discover:
Not (Hilly docs Broadway come to Browanl, out
more than 20 home-grown theater companies
pcrfonn year-round. Sample some of the best road
~Jlurws, n~giomtl, showcase and community theater, .
Take a boat ride on a pristine lake and learn ahout
Broward's delicate ceo-system, unearth dinosaurs
and fossils, angle knowlcdt~e on Browani's marine
ind\.lstr)" watch in awe :is buttcrllics hatch and
flutter all around you.
.
The OJlltural Dir~ctory ~s ] comprehensive directory
with listings by disciplines, a short description of the
ndmral organization and contact mlmcs and telcphone i
,m'it',>';:?'::;, If'r; n~l<l YOWl' culh"a! orgaBi~gt;on to t~li3 '''.. ......
din~ctor.:v" please CHck Hcn;'bjttlo.~:it,
.,. _ __m~r<=,*,.
=-. =. - n.n.n. . JJ.. -. III
.w The Cultural Quarterly magazine is published four
;."..~;M%f.;/\".'A times a year and devotes its pages to the visual and
.~'~'~<"':WiiIk& performing artists ill Broward Cmmty. If'bc magazine
~~ includes a fold-out poster of orig"inal ~rtwod{ and a
calendar of events.
Oid you Imow that if you purchase an Arts License
Plate you can help to support the arts? For every
plate sold in Broward County, $20 is returned to
Broward Cultural Affairs for arts programming. ?Ci
~ 'Why not consider joining thl:.' Odtllral Foundation
~'- of Brow'ard? The Foundation b an .excellent way to
- "n' .,' ensure that the arts continue to shine in the
If:[ ][!@[ f0H[)f:t:Ol \:ommunity.
"j' il~~iiiH
.
http://www.co.broward.fJ.us/arts2.htm
3/1 6/00
.
.
.
fHOENIX ARTS COMMISSION PUBLIC ART PROGRAM
Page 1 of3
PUBLIC ART PROGRAM
. Public Art Program
. Milestones Newsletter
. Circuit Breakers Symposium
Return to Phoenix Art~ C~mllli~sjQJ!
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:
It Dreamy Draw Pedestrian Brjdg~_- ] 995. Squaw Peak Parkway at Dreamy Draw.
The artist, Vicki Scuri, working with the engineering firm of T. Y. Lin, has designed this 31 ]-
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 EmI>loy~e Memorial - 1994. Phoenix City Hall, SecoIlsl 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-
http://www.ci.phoenix.az.us/AR TS/artprogr.html
3/16/00
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.
<) Solid Wa.~le Management FacUlty - 192.3. 27th Avenue and Low~r 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 e]evatinn 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.
., Metroasis- 19CJ.J.._Phoenjx City B~U,.200 w. Washirrg10n 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.
.:1 Iyonwood Bran~hLibrary - 1993. 4333 E. Chandler Blvil~
A curated show of Mexican Folk Art objects located at the lronwoGu Branch Library. The show
consists of eight different panels, which can rotate throughout the year and represents different
aspects of the Mexican Culture.
;"' Macha_ILO_asis - 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 ramada constructed of brightly colored steel cut-outs .
representing subjects from the schoo] curriculum. The sculpture was designed by Ginny Ruffner.
.., PawgQ_-ParklCity Bound~D,-_project ~ut992. PaRago Park, McDowell Road and Galvin
P~rk..way-,-
This two-acre environmental sculpture addresses the axial aligmnent of Phoenix and Scottsdale
and serves as a life-giving watering system for its desert site. The stone and concrete work
indudes seven directional to\vers, \vhich 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. 10dy Pinto and Steve Martino, landscape
architects, created this sculpture.
'el Electro'.SYQ).bioJ,~hoI1kf> kr Phoenix - 1992. America W_~L6rena, 201 E. Jeffer:;on S1.
The altist, Nam June Paik, has created a video sculpture and neon installation featuring three
cobot 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 conununication, technology and biology.
.. Hydrotifyer ,---.l22..2.,--.21 st.Aygnue Wastewater Treatment Plant, .~.9J5 S._91 st Ave..
Working with recycled materials, the aftist, Evan Lewis, has created a functional water fountain
in the form of the microbes used in the water treatment process.
" Untitled - J991. Sll.TIl1wope Transit Center, Third Street and DunJ'!:1__Ay'~nue. .
The artist, working with Sunnys]ope Elementary School students, C1 ~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.
http//www.ci.ohoenixaz.us/ARTS/artnroQ.f.html
")/! fi/OO
.
.
.
PHOENIX ARTS COJ\1MISSION PUBLIC ART PROGRAM
Page 3 of3
'" 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.
. 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.
. 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.
'" Nuestro I?lleblo - 1989. Marivue P~r.k, 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 Ir. High; and Maryvale High School.
R~turn to top of Public Art Program
Return to Phoenix Arts Commission
({') Copyright, 1999, City of Phoenix
Last modified 12/01/9918:56:16 GMT
(Phoenix time is GMT - 7 hrs)
http://www.ci.phoenix.az.us/ARTS/artprogr.html
3/16/00
The City of Portland, Oregon
Page 1 of3
.
..... . ...... . .. .. .. .. .....
: SCf\fico~ 8. BtH'ClniS
: ~~~~~~~~~~~~~~~~~{j~~~~~~~~lj~~ll~M~~[lf1
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
.
.
. ... . . . .... . . . .. ..
C<>Utlcil AgCtldl.l
. .. Cl1y C<;)(:!e"
--
. Con tam Us .
Document count: "public art" (73)
Results for: "public art"
73 results found,
sorted by relevance
::~:;l:::::;~'!#~rj@.~mm HI,~::ij@iii~ 1- ....
10
99% m%Wili1lI
25 Nov 98
find Similar
99% iidA@iI
31 Jan 00
Find Similar
89% WBiiM:j
20 May 99
f.ind Similar
PA FAQ
PUBLIC ART PROGRAM FREQUENTLY ASKED
QUESTIONS Where can I obtain more information on the
Percent for Art program? I need help putting together a
portfolio of slides and/or writing a resume/artist's statement.
Can RACC ...
http://www.racc.orgIPublicArt(PA)/paJaq.htm - size 12.9K
"public art": 11
About the Council 83% @iB:8
Works with the Board of Directors and a staff of 17 to carry 02 Dee 99
out the mission ofRACC which is to provide leadership, Find Similar
.. ./query.html?col-default&ht-0&qp-&qt=%22public+art%22&qs=&qc=&pw=1 00%25&ws= I 3/ I 6/00
Search
Start new search Search these results
Search for:
t.'.~~~.:.~.:....:~~.~~.......................................................................... ........................... ......:
:gn1ww~mmml
:::>:.::)!~%:.,....".::o:. Help Advanced
...~'..:....T..:.:+..:..T...'.......:..~....+.'..:T..:'.
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...
htip:llwww. race. orglPublic Art (PA)/PA GoalsHistory.html- size 4.6K
"public art": 24
Pl!bU_~~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.orgIPublicArt(pA)/PAHomePage.html- size 3.5K
"public art": 24
funding and advocacy for arts and culture throughout the tri-
county Portland, Oregon region. ...
http://www.racc.org/ahout_the_council.htm - size 14.6K
I!public artl!: 7
Freq. Asked Questions 1/91 78% tEJ.wm::j
Frequently Asked Questions How does RACC serve the arts 24 Feb 00
in the Portland metropolitan region? What is RACC's find Similar
location and hours of operation? What information on
RACC can be mailed? Does RACC have a schedule of art ...
http://www.racc.org~raq.htm - size 17. 7K
"public art": 5
BES&BWW,htm 77% %;,;JM::::!
The intent of this Policy is to identify appropriate Bureau of 19 May 99
Environmental Services (BES) and Bureau of Water Works FiIlct_Similar
(BWW) participation in Portland's Public Art Program
within the restrictions...
http::/www.racc.org.Puhlic Art (PA),PA public polices/bes9b
:6bww.htm - size 7.2K
"public artl!: 12
Public Art
POiiland 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 0 ...
http::/www.racc.urg.PublicArt(PA).PAFactSheet!PAj~6.htm/-
size 5. fiE:
"public art": 11
The City of POllland, Oregon
Page 2 of3
.
75% t;;n,M,=::j
25 Nov 98
Find Similar
.
75% IF'Y.MU
11 Jan 00
3111.~~p1Q~t
CC is funded by the City of Portland, Metro, and
1\1ultnomah, Clackamas 8ml ~N8.shington Counties. RACe
INFORt\1ATION Coming in 2000: RACe Professional
Development Workshops" Taxes for Artists: Learn about
unique tax...
http:..wlI.w.racc.orgAr{liotes.htm!- size 35.5K
"public art": 4
r'Jiblic Art 74% MJf.$1::!
Arbor Lodge Par!..: ARTIST: Peter Helzer DATE: 1996 25 Nov 98
LOCATION: Arbor Lodge Park, Portland, Oregon l\1ED!A: Finc-LSjllljl'!f
bronze, concrete, slate SIZE: Dimensions of bronze and
pedestal: 4'H x 3'L x 2'D Dimensions...
http:/'www.racc.org'PublicArt (P,{):PA Fact Sheet/PAj.. l.html-
size 13.5K
"public art": 1 0
DJ1d. Similar
1p'ubJic ~~.t 73% lli.tlliJi
Rose Garden Arena Complex ARTIST: llan Averbuch 25 Nov 98 .
TITLE: The Little Prince: A Three Piece Installation DATE: flnd Similgr
1996 LOCATION: Rose Garden Arena Complex, Portland,
Oregon MEDIA: The Little Prince: ...
.. .Iquery html'7col=default&ht=O&Civ=&ot-%22Dublic+art%22&as=&ac=&Dw= 100% 15&ws= 1 3/ t 6/00
.
.
.
The City of Portland, Oregon
Page 3 of3
http://www.racc.org/PublicArt(pA)/PA Fact Sheet/PAIs 5.html-
size 17.4 K
"public art": 9
:~i~~~~~~.!l~i~M~~}. illij~~.!il!ll~
1- ..
10
top
Disclaimer · Site man.
This page is maintained by the City Home Page GrouQ (CHPG) and was last updated updated:
August 19, 1999
.. ./query. html?col=default&ht=0&qp=&qt=%22public+art%22&qs=&qc=&pw= 1 00%25&ws= 1 3/16/00
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-cuI tural 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
1l'980 l\1ultnomah County passed I % for art ordinance.
] 980 Ci ty of Portland passed 1 % for an. ordinance.
.
1985 lVlultnomah County added .33% for maintenance, administration & public education.
http://'N\'ryv. mec org/Public%20ArtO'o20CP f\)lP A%20GoalsHistory. html
3/16/00
.
.
.
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 Pu blic 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 Tri-Met passed a Public Art Policy which sets aside 1.5% of certain capital projects for public
art.
http://www. racc.org/Public%20Art%20(P A)/P A %20GoalsHistory.html
3/16/00
.
.
.
index
.. f:JEW.f1.
. .
. . . .
.. ..
[venr-s 0:: Places
. .
. .
. .. ...
.. ..
Prng.riUU'<;.
.. . .
. +. .
.. Ut:d{s ..
'..:" .:..' "." "0.
.. . .
.. .".. ..
...... .
Page 1 of 1
Welcome to the
Office of Cultural Affairs
If I nJlltI~ l~ "If! III rlLII JJIHI 1.L III III ItIJJ
JlItI..tIlIlI*f~ ~
Our Mission
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 Anton io.
""W
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. The Office is the local arts agency for San Antonio
funded by the hotel/motel tax and supported in part by Texas
Commission on the Arts and the National Endpwment for the Arts.
Please let us know how we are doing and what we can do to improve
our service! ARTS@ci.sattx.us
Telephone
(210) 222-ARTS
FAX
(210) 228-0263
Postal address
P.O. Box 839966
San Antonio, TX 78283
Electronic mail
Cultural Tourism:9iarrell@ci.sat.tx.us
Technical Assistance: ?rnestor@ci.sat.tx.q~
Arts In The Community: $watchison@ci.sat.tx.LL~
General Information: mguerrero@ci.sat.tx.us
Send mail to ARTS@ci.sat.tx.us with questions or comments about this web site,
Last modified: February 251 2000
http://www.ci.sat.tx.us!dacaJ
3/16/00
City of San Antonio Office of Cultural Affairs-Programs
Page 1 of 1
Programs
The Office of Cultural Affairs is the offfciallocal 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 Cultuc~! Arts Board, appointed by City
Council.
The Office of Cultural Affairs current goals are:
'" To support programs that further artistic excellence and foster public participation
'oj To increase arts and cultural audiences
'1 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, MarkE2!l119-& AudiencE;!
DevelQpment Progr~lJJ1, ancl assists with the Desjgn E_nhanQeme~nt PrQ,gram.
htto:l/www.cisat.tx.us/daca/nroQrams hIm
11 j filOiI
.
.
.
.
.
.
City of San Antonio Office of Cultural Affairs-Design
.. .
.. ..
.' .'
.'. '. ';;.:.: B:?.~~:.:"
Page 1 of 1
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 smail
fpadron@ci.sat. lx. us
Send mail to ARTS@ci.sat.tx.us with questions or comments about this web site.
Last modified: February 04, 2000
http://www.ci.sat.tx.us/dacaldesign.htm
3/16/00
e
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 committed $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 committed to the project 1n
1996. This report analyses various methods of
recouping the $356,000 sum"
SUMMARY
This report analyses the following methods of recouplng funds committed to
4Itthe 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
Hopkins School District 270. The staff recommendation is that the City
.pursue 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. Entertainment/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 Minnesota
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. 1(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 Department, 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). In 1995, these businesses transacted total taxable sales
of $288,278,890. The total state sales taxes collected in Hopkins in
1995 were $19,024,844.
Amount of Tax Needed to Recoup $356,000; 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%
Annual
Amount Collected
$ 28,800
86,500
$ 144,000
Duration of Tax
13 years
5 years
3 years
3
2. ENTERTAINMENT/TICKET TAX
e
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 of a 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 positlon.
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.
e
Child's Play Director Steve BarberlO 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% 11ve in Minneapolis' southern and southwestern suburbs
21% live in Minneapolis' western suburbs
20% live in Minneapolis! northern and northwestern suburbs
10% live ln Minneapolis
7% live in Saint Paul and its suburbs
16% either live outSlde the Twin Cities metro area or purchased
tickets at the box office
Clearly, the majority of Child's Play's audience is from outside
e
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 GardenI Big TenI 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 Dot 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 Play Theater CompanyVs annual sales of
approximately $325,000, possible options for a ticket tax or rent
increase are:
Percentage of Tax
3%
.
5%
10%
15%
Duration
34 years
22 years
11 years
7 years
Annual Tax Collected
$ 9,750
16I250
32,500
48,750
5
3. BAR AND RESTAURANT FOOD AND BEVERAGE TAX
e
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
53F900
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. 4It
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 establlshments and
clubs.
Beer Off-sale
(Wine off-sale lS not licensed separately in Hopkins.)
There are four businesses selljng beer off-sale in Hopkins. They are
G & D Express, Kenny's Markets, Mainstreet Market of Hopklns,
Minneapolis Park Board.
Sales data are not available for off-sale beer and wine.
e
6
.
e
.
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
e
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 Motor Cars, and Metro Motorcars.
Total sales
Sales tax data for automobile dealers is aggregated wlth 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
e
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 contractors, 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..
e
8
.
.
e
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
e
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: Permitted 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 commerclal 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, beglnning in J999.
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 surcharge 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
Ie
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 Raspberry 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
e
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 Remits:
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).
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.
liThe 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 decidjng whether to grant authority. In the past, the
Legislature has tended to allow only local taxes that were deslgned fOL
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 29.5 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 soliciting contributions via the utility 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 postage.
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
~hould 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
$356,0000
.
If voluntary contributions to the construction account do not amount to
$356,000, then the City should consider a special sales tax. Because
the benetit of the Center for the Arts is widespread but indlrectr
staff recommends that the Clty consider a general sales tax on the
state sales tax base, devoted to the Hopkins Center for the Arts
construction account.
####
16
e
.
History of Major Changes
1969 - Minneapolis imposed a 3% tax on admissions.
amusements, and rransient lodging.
1970 - 51. Paul, Duluth, and Bloomingron imposed a 3%
taX on transient lodging.
1971 - Rochester imposl:d a 3% toU on transient lodging.
- Local governments prohibited by sur.e law frem
imposing or incrt:asing sales or income taxe~.
1973 - Duluth authorized to impose a 1 % general sales
tax.
1977 - DulUlh authorized to impOse a 2 % tax on
r~t:]urant sales (If meals and drinks.
1979 - St. Cloud authorized to impose a 3 % lodging tax.
- Metropolitan SportS Commission lodging and
liquor tal: authorized.
1980 - DuJuth exempced from prohibition against
incrusing tales without legislative approval.
1982 - St. Paul authorize4 to impose a lodging tax. of
3 %. At least 2S % of die proceeds (0 pay me debt
se('\lice: on the civic center parking ramp.
1983 - Authorized any city to impose a lodging taX of up
to 3 % for tourism promotion.
- Rochester aUthorized lD impose a genera.1 sales tax
of up to l % and an excise w:: of up to $20 per
vehicle: sold at retail.
1985 - Extended 10 towns the auiliority to impose a local
lodging tax. of up to 3 % for tourism promotion.
1986 - Minneapolis authorized [0 impose these taXes fOf
convemion center funding; a 0.5% general sales
and use taX; a 3 % sales tax on liquor 3tI!! beer and
on restaurant food (downtown only); and an
addicional 3 % lodging taX on facilities with mO(e
man 50 rooms.
- St. Paul authorized to impose an additional 2%
taX on transient lodging facilities with 50 rooms or
more to fund a. convention bureau.
- BloomingtOn authorized to impose a 1 % general
sales QIX within a designated spc:cia.1 district. The:
city also authorized to impose a. 5 % lodging taX
and a 5% sales taX on liquor and beer.
- St. Cloud authorized to filnd a convention cemer
by imposing a 1 % sales tax on certain food and
beverages and an additional Z% lodging taJ;.
1987 - Bloomington authority to impose :1 1 % genel<ll
sales taX repealed.
- Cook: County lodging w:. in certain towns
amhorizcd.
- Scoo: County admission tax authorized.
1989 - Rate for the generally-authorized transien[ lodging
t.U. incf~Sed from 3 % to 6 %. with the first 3 %
dedicated for tourism promotion.
19$0 - Rate for gmer.a.lly-aumonzed lodging taX reduced
from 6% to 3%
- Bloomington authorized to impose an additional
1 % lodging la;\;.
1991 - Mankato aur.horiz~ to impose a general sales laX
of 0..5 % and a $20 e;.;cise taX per mOlOr vehicle
sold at retaiL Proceeds to fund the Riveffront
20Xl Project.
- Winona aurhorized to impose a lodging tl.X of 1 %.
Half of proceeds for a specified proj~; the;
balanCI: for tourism promotion.
.
It
- St. Paul's authority to impose an addilional
lodging tax on a business with 50 or more rooms
increased. from 2 % 103%.
1992 - Brook:.lyn Ctnter authorized to impose a I % laX
on restaurant food and on-sale liquor. Proceeds r.o
fund low-income housing projectS. (Tax not
imposed because referendum failed).
- Ely authorized. to impose a genera.! sales tal. of
1 % and an excise tax of $20 per motor vehicle
sold at retail. Ptoceeds to fund the Ely
Wildl:fi]CSS Gatev.'ay project. (Tax not imposed
because referendum failed).
- Ro:he!ter authorized to impQse a geoenJ. sales
and use laX of 0.5 % and an e~ise laX of $20 per
motor vehicle sold at reuil. Proceeds for
specified capital improvements. (On II I 193
replaced ellpired 1 % w.).
- RoseviUe aUlhQrized to impose a 2% C3.'( cn
lodging. Proceeds to fund a multi-use speed
skating and bandy facility. (Tax not imposed
because it was not placed on the balloL)
- Thief River Falls authorized to impose a general
sales taJt of 0.5% and an exc.ise tax of 520 per
mOtor vd1iclc sold at retail. Proceeds to fund the
Area Tourism. Convention Facilities. (Tax not
im~sed because it was not placed on the ballol.)
1993 - St. Paul authorized. [0 impose a general sales w::
of up to 0.5% by resolution of the city council.
Proceeds to fund the expansion and remodeling of
the SL Paul Civic Center complex: and capiIal
projects to further rc:sidenrial, cultunU,
commercial, and economic development
downtown and in the neighborhoods.
(Implemenred 9/1/93)
Cook: Counry authorized to impose a general sales
tax of up to 1 % by referendum. Proceeds to fund
the expansion and improvement of the North
Shore HospitaL (Approved, effective 1/1194)
Garrison authorized to impose a general sales t.:u
of up to I % by referendum. (Tu not imposed)
1994 Two Harbors authorized. to impose by ord1rumce a
tax of up to 1 % on transienc lodging. Proceeds 10
be used for preservation and display of the ClIgboat
.Edna G. (Implemented 4/1/94)
'i)
:Pc r~{-\ E(\J ~f
~ '{.." U\ i-.: F.~c '" l'\t ".0 l ~~
~'f( y~ /~ .....:
q 3l~ . t (~t)-
.
How Mayors and City Governments
Support the Arts:
Innovative Financing Techniques
and Strategies
.
.
The United States Conference of Mayors
FOREWORD
.
The arts and culture contribute immeasurably to the ~ oflife JU1d .t.o the economic fiber of our
urban comm~uniti~J:i. Recogrllznfg-Ll'ltn:enuallm:portance of the arts, mayors a;;:oss 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 ofthe 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 semces. 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,
-an~cttl~lllt::llt-to-onrfives=-th-earrsaii.d-cUltiire~" - ~ --- ~'"--~~~._-._..----~~ ~~ ~- ~.- ~- --~---
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 grateful to the many mayors who lent their
coopera tion 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
President of The United
States Conference of Mayors
Juanita Crabb
Mayor of Binghamton
Chair, USCM Committee
on the Arts, Culture,
and Recreation
.
HO\V MAYORS AND CITY GOVERNMENTS
SUPPORT THE ARTS
.
Chapter I
Introduction
.
In Albuquerque, New Mexico, voters ap-
prove multi-million dollar bond issues to expand
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 building rights to developers ofthe $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 speciaLm:di-
nances artl~s.sedto make it easier for artists to
;ark and live in decayingindustria~rict~.-
--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 ~ern-
ments across the country are involved in an
array of arts-support programs that can be diz-
zying to comprehend. The current level oflocal
~overnment funding~.rts pyceeds the
combined budgets of all state arts agencies an_d
the National Endowment for the Arts. In re-
'sponse to tEe 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.
.
--.During these same years, mayors and other
ci officials have been called upon to assume a
more subtle. but 0 n equa . portant role:
promoter of arts. Mayors often play leading
roles 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 life from downtown
office buildings to public housing projects. And
the mayors ofthe 1980's encourage business and
other private sector groups to use theirresources
to help the arts.
Mayors have assumed critical roles in pro-
moting both the smallest and the largest cul-
tural un dertakings_ When Charleston's Spoleto
Festival of classical music was threatened by
internal disputes, Mayor Joseph P. Riley, Jr.
personally took control of festival pla.nning, 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. Ultimately, Spoleto proved a resounqing
success.
Arts leaders have also come to recognize
publicly the role that mayors and other political
leaders now play in getting new arts initiatives
offand 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
'>r
-f
real understandingofwhat the arts can do," said
Greg Geissler, former Director of the Denver
Commission on Cultural Affairs. lhe 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
sJ~llr: Jj1e newly-discov~:t:.ed ~derstanding of
the role oftll-€! a~in~~~~ity'~-.eCcinoin~ g-i~_~lop-
ment and th~. in.~!e~~~d pgp!!laritY.Qf eye~i-t
foITilSince-the 19~O).._ .Thf ~eri.Q~s.iluesti~~)n
most city govemments today is not whether to
support t1i.e~T!s:51J~}YE~~h.__~ch~iq-u~ii{ake the
most sense artistically, ecof,omic<i!lY...Land'p-61lti-
ca.n~. " - - -" - ... . -. - ~~~-
Economic Benefits
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 American people.
. Older citipc:. "'~Il-he.nefitir9}ll a stronger arts
presence because the arts and entertainment
mrcict toillisrn;~con ventl'On JUl d..recreation do 1-
lars, bringpe(;pi~- <io~tc;~ in the.~xenings and
on the weekends, generate sales for'othercity
. ~e~ses ~<;l ~ork_ to.: L;Pp.i~i-; city'SOVe~~1
i!lli'-.z.e. .)3y virtue of their already substantial
investments in arts facilities and their concen-
trations of artists and organizations, many cit-
ies have in the arts a significant base for future
development. Economic development officials
see increased arts investments 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 wayside.r and busi-
.nesses are placin!: a greater priority on locating
in areas that are attractive to their employees.
For the younger generation of workers, the
mosthighlyeducated 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
~hat the quality of local amemtles, InCluding
cultural facilities, played a bigger role in execu-
tives' busmess location decisions than did lOCal
tax abatements.
When theCongressional 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 of1ife is
more im ortant than business-related factors,"
the study conclude. recommen e at eco-
-Mmie 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 come 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 oflife." ,
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 commrmity relatively quickly,
while lacking a traditional base of private sup-
port. Most Sunbe1t cities, while growing rapidly,
''have a 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
.
e
e
2
.
streets or the fire and police departments that
make the competitive distinctions between cit-
ies. illtimately, 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 ofthe ten best in the
country, establish the city as the nation's center
for Hispanic visual and performing arts, develop
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.
Forthe 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 Cwi, an expert
on the economics ofthe 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
.
.
reality are attracted by entirely different attrib-
utes of the urban area-gamblingin 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," Netzer 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 ofmaterial 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 ofthe nation' 5 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 has
grown faster than at sporting events. In re-
sponse to the higher educational level of the
American public and the spreading ofthe 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 grown at a similaI"P~c~-,8I!Q
the arts have movea away _fro~_theJLelitist
unage and performance halls Jo_suburbs,.,.small
tOwns and ---mrar;re~~h_eLe theY_Qr.we__Jl,t-
tracted huiie-:-newaudiences.
Reports of the economic-importance of arts
institutions come from all over the country. In a
1978 economicimpact 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, induding the
creation of 574 additional jobs in the Columbus
area,for a total economic impact of$16,876,000.
Current direct spending alone is nowin 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. The2,830 cultural organizations counted,
the report conduded, 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 found 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 and 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, eati;lg 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 ofthe arts audience. It estimated
that tourists spend as much as $160 per person
while visiting a city and that local 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 direct
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, lo-
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-longfestival includes performing
and visual arts events and exhibitions. A study
ofthe 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.
.
e
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 redevelopmenJ
'~orts. -=-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 of higher 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 provide significant development
.benefits, according to Cwi, including: retwmng
aowntown retail trade, enIIVeningpr6jecls With
aaytime and nighttiine activities, boo-sti~g-ihe
city's image, creating market~for new J:>.!!siness,
and encouraging new private investments from
suburban to city locations.
"!'he 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 transfonn into performing arts
stages, and plazas and museums host concerts.
The arts not only decorate new projects, but also
create enVIronments that B:ttr~ct pe2ple Wl~.!i_ng
to spend time anod money." The Instibite,.which
represents the development industry, said the
arts "are neither frills nor expensive add-ons,
and in fact help establish a successful market
image."
~co.EJ1izing the prominence otthll..arts_w
city development plans, m~yors aroung the
country have reorl:a.nize-CLClty_e~.o.iiii_i!iic d~yi1-
opment agencies and planning.d~-llil1j;!!1en_t~~
:mclude arts agem:ie.s. In 81. Paul, Minnesota,
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.
In Louisvillf'. J[~mtllC',kyJ26million in public
. - - ~
.
.
. money was invested to construct the Kentuc~
Center for the Performing Arts. which openedin
Louisville in 1984. The center houses the ~u~
isville Orcnestra,the:LOUiSVJ.He-Civjc- Balret~ the
Kentucky Opera Association , and the Lo~svil1e
-childrerrs Theater. Among tlie.center's ob.Jec~
tlves 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 60-acre Playhouse
Square redevelopment. which involved the reno-
vation of three 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
itself will 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 ofland 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
CCDBG) 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 ofthe city's
old central business district will provide space
for Dallas' major cultural institutions alongwith
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 $35 million renovation of the
sixty-year-oldStanleyTheatre into the Benedum
5
Performing Arts Center is the first step in creat-
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 payron 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 unifonn across the
country, however. Ranging from bund 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 of financing these
facilities are through municipal bonds and/or
some combination of federal 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-
tions.....The most sophisticated ofthese strategies
,gg~.t.rong commitments--ol'-pub1iC-In.o.rr~ an
important first step in developing private siip-
----- .-----., -., -~~, -. .
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 sim.ilarlyfinanced
a downtown cultural center, while Minneapolis
used $9.2 million raised through bond sales to
purchase its perfonning arts center from the
Minneapolis Orchestra Association, which built
the facility.
Many cities have used money from the fed-
era~~evelQii.IiLerir-AamiEisfrat!9n
CEllAUb.Q.....Hq1.lsing and Urban_ Deve'iopmenC
Depl!.rtment's..(HUD) Community DevelopmenC
_Block Granh_ ~m~ Vrb~~~!?~.~~m~IActj_oii
Grant (UDAG) program~ to build cultural facili~-
_ ~ SOme~cities 'have also man~gedto 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. _Small, start-up grants from
~he National En4?:vn!~!1:tfOah! f..ili Jl~~layea
an initifi.tT2)e in some oftheRj)2:ojects. ----
- The EDA and HUD grants, whlchare 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
.
e
.
6
.
.
[y
(\\1
~~~
.
both EDA and HUD 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-
rul 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 EDAgrantpaid for nearly halfthe
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 ~
linancing method in e.stablisbi!}g_a_ higE.ly_!,:!c-
. cessfulloan fund to build artist's housi~ its
Lowertown neighborhood. -
---
Dedicated Revenues
Dozens of cities have turned their own power
to raise revenue into tools to support the arts. A
wide variety of taxes, ranging from 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 hotel!
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,
hoteVmotellevies are a fixed tax on anyone who
rents a hotel or motel room in a localjurisdiction.
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 will." 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 hotel/motel tax as too
limited a source of revenue to support its expen-
sive new cultural facilities.
A handful oflocal 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,OOO but public officials have had to
overcome resistance from the real estate, busi-
ness communities, and from property owners to
use revenues for the arts. .
Boston recen tly required a ten percen t "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 reven ue this year
may be eannarked 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 have been specifi-
cally created to aid the arts, but. more fre-
quently, arts support comes as part of the man-
date ofa 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 afthe 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 of four 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
or no cost to the public. Most often, cities exempt
arts organizations from admissions taxes, set up
speciallicensingprocedures 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 most widespread of these ordinances is
"percent for art: which requires that a certIDn-
portio~of a city's capital expe"~
. 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 ofthe construction
budget. The ordinance generally applies to
public buildings, but a few cities 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 often require changes in
state regulations as we]], 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
andotherperlonning artists from bans on public
vending and perlonnances.
San Francisco has even taken artists out of
direct 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-busking ordinance" (which prohibits
begging). The law not only a)lo.y.'~~aJj;ists.t~sell
their wares in Q.ub1i~Ik~, _bu~ also_;:J.Jl9'~s
_ artists to perform on the streets_ and "p~s~tbe
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-
- roents 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 e~ses~mll1li~-
palproperty to arts groups for s.Dost__term per-
fOrmance or exhihiti.o.rLS]la-ce ~tJ~s?-than~corn-
mercial rents. Biloxi, Mississippi, for -instance,
"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.
e
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
CTowdcontrol, use ofparks, trash removal, trans-
portation of equipment, electricity, publicity and
other logistical support. By providing services
either free or at low-eost to festival sponsors, the
city can make a festival more successful or even
financially feasible. Some cities have instituted
policies making festival planning easier.
Atlanta's policy includes a "one stop shopping"
arrangement for festival pennits, 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 are ex~erimenting with
tools to stimulate private !,;l1ppnrt of t~.
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 raised 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 offunds 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 ofinfonnation
and gifts between business and arts communi-
ties, the alliances typically provide administra-
tive and technical assistance to arts groups.
,Snme cities <:111"h lHi 8.aframento, have even
published and marketed "'>'Iish-listi'-Ior pot~::-
tial donors to arts institutions. These "gift '
catalogs,' as the arts groups call 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 advertlsm~ recnmQues
to market the needs of the arts to the public.
-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 benefit the arts
by guaranteeing the access of arts groups to
public channels, developing channels and facili-
ties 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 Tucson/Pima
(Arizona) Art Council, Inc. Is planmng cable
channel programming', devoted.J,Q arts ed~a-.
bon progra'!l1s and re~ar productions hy lncal
~.ID"-2.ups. 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 pIjva~
mane)' for the arts_Jh.iQ~n~liubHc~_employee
payroll deductions and tax checkoffs for llrivate
'Citizens. Oiher 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 eannark a small part of their state
income tax refunds to fund local arts agencies.
San Dieg-o County puts fliersjnj.ThJ>Ulpg~
_~ to 20jicit donati~!ls fOT_sr:verallocal ~gen-
cies and clJtUrnTlTlSt"itUEions:------ ~-~ ~
-~ Lo~al arts gro-~ps 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 handsomely from the state's
"M:egabucks" 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 gamblingproceeds 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 Jaws. Mayors may
find it difficult to make a strong commitment to
the arts in the face of competing interests in the
city. But for the mayor who decides that an arts
stT~g,y~S wortb~~e eff9rt, thed.ividen~s are
'clear: not just a higher quanfY~of1ife,l:)ut doWii~
town revitafizatTol!, new b!!~inesses aTIJhP10st of
all, jobs:_... --~
10
.
e
.
.
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 expand the 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 of25 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 ill useum bond was included in a much broader
package of bonds to provide funding for dozens of
projects around the city, generating wider pub-
lic interest. 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 tile 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 tile museum, has paved the way
for easier public approval of mnnicipal borrow-
ing for the arts than would otherwise have been
the case.
Charlotte, N.C., has also used large mnnici-
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 iocI ude the center in the
same bond issue with a popular 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 anum.
ber of major developments, but local officials
must still draw careful linkages between arts
projects and the more traditional job 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
companies in the city lacked a modem 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 ofthe New York
State Council on the Arts to help cover architec-
tural fees.
Because ofthe reluctance of financial 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 York 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
Fonndation, 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
surrowuling 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. Gfits $27 million cost, $6.7
million carne 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
mo'ney was intended 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 Jl 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 policy 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 from 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 the
Playhouse Square theaters.
Chicago and St. Louis
The Chicago Office afFine 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 RUD's
Community Developmen t Block Gran t 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 detennining
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
A handful of cities loan money to arts organi-
zations when they experience short-term fund-
ing problems. Supporters argue that if properly
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-
ceive the money back and lend it to other groups.
It must be noted, however, that a numberofloan
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 ofloans and converted aU 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 supportingprom-
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 firm,
Assets Development Services Inc., to convert the
building. The New Works St. Paul Project ar-
ranged loans from four sources: $250,000 in
Community Developmen.t Block Grant (CDBG)
funds at no interest, loaned by the city and
requiring no repayment for ten years; $78,000,
at two percentinterestfrom CDBGmulti.family
rehabilitation money and HUD 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 studioJbousing 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.
.
LOB 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 of govern-
ment loans, foundation grants, private dona-
tions, and money from the issuance of tax-ex-
empt certificates ofparlicipation, 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
UDAG money 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 of participation,
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.
HoteVMotel 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 hoteVmotel 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 fonner executive
director ofthe CounciL
Houston
.
Since 1977, Texas has allowed its cities to
allocate a portion of their hoteVmotel taxes to
the arts, humaniti;}s 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
cen t 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-<lne
percent of total revenue. The legislature's goals
was to divert more of the bed tax money to city
general operating funds and thereby lessen the
localities' financial demands on the state.
San Francisco and San Diego
San Francisco's three percent hoteVmotel
tax enacted in 1961 was one of the first setting
aside tax revenues for the arts. Today the
League of Califomi a 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 hoteVmotel 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-"lcisco," according to the city law, "make
San Francisco more attractive to visitors...and
have a positive economic impact on the city."
San Diego diverted some of its hoteVmotel
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 hoteVmotel tax are con-
siderable in San Diego, which is a popular tour-
ist destination. Currently, 18 per cent ofhoteV
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
hoteVmotel 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 Council raised 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 Vlheeler Opera House
and other projects. Between 1980 and 1983 the
tax produced $300,000 for the arts in ~pen
(pop. 4,000).
Because of broad home role 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 wen 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 oftourists 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 Teal 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 turn 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's Museum Tax
Chicago's was one of the first special tax
districts set up in the nation. Created by the
l11inois legislature in 1934, the Chicago Park
District collects property taxes to support activi-
ties underitsjurisdiction. Currently, two-thirds
of the District's $130 million in annUAl revenue
comes from a special district-collected 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 incIudes $100,000forthe 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 District
.
In addition to collecting hoteVmotel 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. These institu-
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.
BartlesvilIe, Oklahoma, residents, for instance,
approved a temporary one-cent sales tax hike to
finance a $13.5 million community center in
1977. Huntsville,A1abama, placesa 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 orcli-
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 cen~ry. 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-far-art laws on the national and local levels
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 mOTe 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 artists 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 oftotal
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 ofparticu-
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-
lic reaction to various art objects, the cost ofthe
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
art-representational versus abstract-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 la ws on the grounds
that they increase construction costs. Richard
Andrews, who fonnerly headed Seattle's per-
cent-for-art program, has urged cities to use
successful percent-far-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 Yokio Karawatani, a Los
Angeles Redevelopment Authority senior plan-
ner, developers not covered by the law are volun-
tarily including art works in their projects. Many
devebpers 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 percent-for-artordinance, the
nation's first, remains a national model for public
art set-asides. Two separate percent-far-art
programs exist in Philadelphia: one ordinance,
which 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 percent of
construction costs to commission origin: 1 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, have' 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 former 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
been 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 selechon panels to
commission art. In 1986, the city drafted a
philosophical statement on the issue of public
art.
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-
e
18
.
ity, and many are voluntarily including art in
their buildings, said Karen Gates, fonner execu-
tive director of the Seattle Arts Commission.
But implementation of the law was not auto.
matico 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 Ordinances
.
As manufacturing has moved from America>s
central cities to the outskirts and the suburbs>
artists searchingfor cheap, 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 "loft" studios and apartments violated
city zoning laws which prohibit the miring 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 encouraged 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 their famili es. The official
sanctioning ofthe 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 eviction sand stabil izing ren ts for livi ng
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 govemmentgrearer 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 to 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 rner~
chants, it has not been an unqualified success. A
shortage of sidewalk space for artists persists
with about 300 competing for the 270 spaces
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-profit 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. Uma, 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 uncertainties of raising funds.
Since 1973, Seattle has exempted non-profit
organiza tions 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 city's Director of Licenses and Consumer
Affairs. By 1987, 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
fonn 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 ahout $850,000 a year. Denver also provides
direct operating subsidies and other pubhc
monies to the museum.
The Arlington Cormty, 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 producingplays
in its own theater to donating the theater space
.
.
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.
BiIoxi'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 spending city funds 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 center's 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 festivals hav~~:r:oY~l1.[~....s~~@s.ful
that even distressed cities without ohYloUS tour=-
ist draws haye eI1coin:-.~eTIlieJ11 as. economic
development tools. Bethlehem, PennsYlvania's
1VfusikFest 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" ofItaly'sSpoleto
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 perfonnance 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-term 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 mayoral leadership can be in
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 producedby 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 ann ually seeking dona tions for a variety
of city programs, including the arts. Chevron
Oil underwrote production ofthe 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 ofa 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 full advantage of cable
television to secure money and visibility for local
arts organizations. Ai; part of its franchise
agreement, Tucson won two public access chan-
nels faT the arts and dedicated a portion of
.
22
.
subscriber revenues to the city arts commission.
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 setup 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 ofthe 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 ofindividual
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 oftheir 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 oflocal 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 forms include boxes
that can be checked for donations of $1, $5, or
$10 for the arts. The amount is deducted from
the taxpayer's refund and forwarded to the
Oregon State Arts Commission.
When the idea was first introduced in 1977,
it encountered opposition from arts groups which
feared the tax checkoff would substitute for
subsidies provided from state general funds. By
the time a bill was reintroduced in 1981, it had
become more palatable, given state fiscal prob-
lems which almost guaranteed cuts in state
support. At the time, Oregon ranked 48th among
the states in its per capita spending on the arts
(13 cents). In that context, the checkoffbecarne
an alternative way to expand aid to the arts.
Ahout40,OOO of Oregon's 1.1 million taxpay-
ers take advantage of the checkoff. which has
raised an average of$lOO.OOO 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
hicles 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' "M:ega-
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 $150
million opera house.
Massachusetts'$l 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 government general funds.
Cities receive a share of the money based on
population, per capita income, and ::-enl estate
values. Boston receives 14 per cent ofthe pro-
ceeds, the largest individual share. Each small
town receives a minimum of$1,000. 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 eannarked for char-
ity. The practice dates to the 1930's, but in
recent years revenues to the arts have declined
as larger portions ofthe money has been awarded
to education and other sectors.
.
.
.
24
.
.
.
, /
r <
i"
Chapter III
Local Arts Agencies
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 its official
arts agency, setting anotherpattem which would
be adopted by many cities such as Houston,
Columbus, and New Orleans.
Today tl:e:'l;l~:r~_, over 900 professionally
directed local arts agenc!~_s se~ng most major
---- ------...... -~-- -. ----."-.......
. .cities and many' mid~~,.an~!l1anercommuni-
ties th~gh~!!i1ed States. It has been
estlmated 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-
lces.
Approximately 75 percent ofthe local agen-
ciesare PEvate_n.on.=Pfo.f1t (lr@f!~2:~tlOns, many
of which are contract~d ord~signatedfO----worKon
behalfoftheir local government. "Th;;em-a-ining
"25 percent a~perating 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 of federal 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 l?rovide ~ants which must
~e matChed with additional private support,
'thereby increasing the leverage ana-investment
or~blic fun~s. ~._"-~"--"-- ---~-
-- 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 alliances through their lciCiilagen=-
C1es, 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 found 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 survey found more than
half ofthe 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 trend which has been developing
in many areas has been 1FIe~j01.nCcffY-coumy~
agency. Under this moaeCoofficity and-coullti
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 Plains/Westch-
ester county, New York, and Jackson/Hinds
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 will 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
directior. of a-pBlfussional director with vision
wd the oversilI.l:!~ ot ar~. activ~ ~rl(:l_~()Tl)1!ljttesl
ooard _0.1_ c2.,.mmismo.n......AllhJlYdhe involvemen t
andsutrport of their political and community
leaders. All goocL agencies are involved in a
.continuingpro~ngwhich
insures input by all segrnents-ofthtlQ...nm:mn}!y,
-ind all are concerned . him rovin he ual-
1 as well as the quantity, of the arts in their
communities.
.~ 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 additional dollars 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 ofthe 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 information-
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
realize that the arts agency does not simply-
~rvp. B n::lrrn'" ~\lltural lltmgtitll~ncy but: se~
the city as a whole. .
.
.
.
26