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89-72 WHITE - CITV CLERK ' R E S O L U T I O N . PINK - FINANCE (�+ COLLIICII CANARV -DEPARTMENT �A!�I CITY O� SAINT PAUL BLUE -MAVOR '�� Fll@ NO. ��` �� ''�''�� "'`�`II,` ��6yT.= Ordinance N 0. � R E S 0 L U T I 0 N Presented By , Referred To Committee: Date Out of Committee By� Date WHEREAS, the City of Saint Paul and the City Housing and Redevelopme t Agency (HRA) own and operate parking facilities by manageme t contract; and WHEREAS , these facilities provide important economic development traffic management functions, therefore serving critical pubilic purposes , and WHEREAS, the�, Ramsey County Taxation Department is of the opinion tha current law does not provide tax exempt status for City-ow ed parking facilities or parking facilities owned by the HRA; and WHEREAS, Ramsey County will place these facilities on the tax rolls in 198'9 for taxes payable in 1990 unless legislative clarificatioin is obtained; and THEREFORE, E IT RESOLVED, that the Saint Paul City Council supports legislation amending Minnesota Statutes Section 272 . 0 and Section '�272 . 01 to protect tax exempt status of City and HRA-owned parking facilities including those under lease or ; concession; ,and BE IT FURTH IR RESOLVED, that the City lobbying staff is directed to draft, introduce and lobby such legislation during the 1989 legislative session. �I II'� COUNCIL MEMBERS Yeas Nays , �� Requested by Department of: Dimond ii �� ' � In Favor Goswita� Rettman �be;�� Against BY Sonnea� `�u�� '! JAN 17 1989 Form Ap r ed by City torn Adopted by Council: Dat Certified Pass uncil Se re } By � By Approved b ayo • Da 'JAN 1 g i989 Appro by M for mission to Council By B �' P'�.iS�D .;:-�R�; � � 1989 ' • •� I � •IHG PAPER: TAa STATUS OC' CITI' AND HRA-Ok'NED � . RILI' PnRKING RnriPS • � ��-��_ BACKGRO ND The Cit of Saint Paul and Housing and Redevelopment Authority (HRA) o n and operate (generally under management contracts) several prsricing ramps in downtown and lowertown. Several private parlting ramps cannot be operated profitably, the � pravision of ramps ancillary to public facilities or necessary to redelvelopment projects, has developed on the City and its redeve7�'opment agencies. (1) The staltus under which the City and HRA operate ramps contain some autbiguity respecting the tax status of the ramp. Minnesdta Statutes Section 459 . 14 clearly authorizes municipal ownership and operation of ramps but is silent as to exempt status. Minnesota Statutes Sections 469.012 and 469 .040 do not expressly authorize HftA ramp ownership and operation, but clearl3P' exempt HRA property. . STATUS ', � City ald HRA ramps, as well as surface parking facilities, have b en tax exempt. Ramsey County has given notice,however, that i 1.989 for taxes payable 1990 the ramps will be placed on the tax rolls because in the opinion of the Ramsey County Attorn y' s Office "some doubt" exists as to their tax status. (2 ) L cking a specific exemption in Section 459. 14 , City ramps re exempt under Section 272 .02, Subd. 7 as "public proper�ty e�:clusively for a public purpose. '� The County �r� Attorn�ey accepts that a City ramp is public property but ' questipns "whether or not its use can be construed as for a public purpose. �� - "This is. a fact question and I hesitate to say � .� categoricalZy that such a ramp would or would not be for a public purpose. Inasmuch as the sefromltaxation arettolbe � property is taxable and exemption narrowly construed, I would recommend that you consider _ 'i (1 ) Tle Port Authority parking ramps are viewed as tax exempt ' � b reason of the particular wording of the PorL A thorities Statute. ' • , - (2 ) L�tter from Lou McKenna to George Latimer, attached. � ' • 13riefin� Paper: Parking RamPs �� 7� •'• . .'• � page 2 ' , . . ___ _ . . . the'�e ramps non-exempt and, if necessary, let the Tax _ �,,,,�,__ . . Cou�rt decide whether or not they are for a public pur�ose. " ( 3 ) THE CIT1Y OF SAINT PAUL POSITION If Cityland HRA ramps are subjected to taxes, parking rates will in�Crease significantly and the non-competitive position of downtown retail versus shopping center retail with free parking' will be exacerbated. A better forum for deciding the ._ public �iolicy issue involved is the Legislature rather than the Tax! Court which can only narrowly resolve the "public purposei' use issue in light of the existing statutes. The City of Saint Paul supports amendments to Minnesota .Statutes Secti.on 272.0, Subd. 2(a) and Section 272.01, Subd. 2(b) (2 )! to protect tax-exempt status of City and HRA-owned parking! ramps. The City lobbying staff is directed to introdu�ce and lobby such legislation during the 1989 ' legislative session. 'I . . *�• ... . � - I� (3 ) Letltter from David McMillan, Assistant County Attorney, to LouiMcKenna, May 20 , 1988. Mr. McMillan, while admitting he �as not reserached Chapter 469 for specific tax exe{nption of HRA ramps, applies the same analysis as to e�:emption as quoted regarding City ramps. M.S. 469 .040 , Sub�d. 1 expressly execupts HRA property. � . I . � •. I i:;; . , . . . . . , � __`-.;- _��--- . � . � . :. . �-�, � � � G�'!Y-'f�l .'� "` '� �� DEPARTMENT OF ��.�' ��Y!`�i /� ..�,.,1� . .� •� I. ... ' , , �•�, : . � I: TAXATtON �4ND RECORDS ADMINISTRATIaN«-�- � �� :� � courvr�r oF aaMS�r � K� - »�-� 38 COURT NOUSE � � ST. PAUI. MINNESOTA 55102 �'�^�c-ti- OIVISipN IMANAGE R�IWSEY COU . • . qICHARO O.WARC Propvrn. Va/wtion _ IEONAfiO F.O1,50: lOU MCKENNA RQ''�^� OircClO! � C.TNOMASOSTHOF i PEGGY RECTOR . ROGER VIK Rec+ores 'Assl. Oirecfo� i , JOHN C.McLAUGHL ' Abst�act, Tit1e I • J�d Ownersh:p, i . • . I . . • ' ... . , ;��- The Honoirable George Gatimer, Mayor y ' ' "� ``� City .of ISaint Paul City Hal�l and Court House ' ... � ' ' � Dear Geotge: � �! Enclosed is a copy of an Opinion from Dave McMillan I Which puts the ta,�_s tatus of HRA arking ram� s in some c�n„i�hr_„ Rather than test this matter nocr by placing . . . these ra�ps on the tax roll, I crould suggest that ve Wait • until th;e folloWing year and give you an opportunity to � � get to t�e legislature and see if this matter can be taken care of $o your advantage. _ If you are unsuccessful in getting some legislat�ve changes, We vill be placing these proQerties on � • the tax �oll in 1989� payable 1990_ � - � • Sincetely, .;.. i � . i .-%'�� , Lou McKenna� Director ' . Department of Taxation and . � � Records Administration . . i - . . LMcK/rv , � , . _ . . ' Enclosure� . • ' � cc: Rich�.rd Ward� Manager . Prop�rty Yaluation Division � '�P i . . . � i . �� • ,.��'� , . � � ' �� ` � ��-7-Z . , . _ _`�� .._. _ �� .� ��: _ ' �'�rl ', ;1.� i . I . � I' � , WHEREAS�, the City of Saint Paul and the City Housing and ~ Redevel�opment Agency (HRA) own and operate parking facilities by manalgement contract; and .. WHEREASI, these facilities provide important economic developlment traffic management functions, therefore serving_ �critica�l public purposes, and ' WHEREA�,, the Ramsey County Taxation Department is of the opinior� that current law does not provide tax exempt status for Cit�y-owned parking facilities or parking facilities owned " by the �HRA; and WHEREAS, Ramsey County will place these facilities on the tax rolls in 1989 for taxes payable in 1990 unless legislative clarification is obtained; and . � ,;,: WHEREASI, this action could cost the City of Saint Paul 5 '"` per yea!r; THEREFOIRE, BE IT RESOLVED, that the Saint Paul City Council support�s legislation amending Minnesota Statutes Section 272 .0 and Secltion 272 .01 to protect tax e�:empt status of City and • HRA-own,�ed parking facilities including those under lease or concessiion; and BE IT FIURTHER RESOLVED, that the City lobbying staff is directed to draft, introduce and lobby such legislation during the 19819 legislative session. . . � ... - � - . II . . � � .. � .. � . �I �I , . . .� - � �� GITY OF SAINT PAUL ��s�� ' � ' OFFICE OF THE CITY COUNCIL �. � �� James Scheibel, Chair � Committee of the Whole Date: January 9, 1989 ' COMMITTEE REPORT To: SAINT PAUL �CITY COUNCIL From: CITY COUNCIL LEGISLATION COMMITTEE � , � � 1. MSA Street Slandards � COMMITTEE RE�OMMENDED APPROVAL .�`'.,' Ta�c;��us o ..�C�Cy and HR�r-(�d� Parki��tamps_> ,, , .. , , „r,� �'�UiK� I�,1B$'�i'��i�'''��a�;..x,e'��;r'W�"E e) 3. The Year of tihe City COMMITTEE RECjOMMENDED APPROVAL � I 4. Property Tax Reform COMMITTEE RE OMMENDED APPROVAL 5. Fingerprintin of Firefighters COMMITTEE REC MMENDED LAYOVER TO A FEBRUARY DATE 6. Bonding Alloc tion COMMITTEE REC MMENDED APPROVAL I I � �� , , I � � CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 s..��4e ,