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95-226O R � � ! � � �- A � 3 a�9 � ouncil File # / � �� Green Sheet # � �7 � O�S RESOLUTION CIlY OF SAINT PAUL�MINNESOTA �t Presented By Referred To Int tions Committee: Date March 8, 1995 1 WHEREAS, the Metropolitan Airport Commission leases 2 Airpon in the City of Saint Paul; and for development surrounding Holman 3 WHEREAS, the Minnesota State Legislature and the Metropolitan Airport Commission has 4 designated Holman Airport as an intermediate airport; and 5 WHEREAS, detachment law in Minnesota Statutes does not allow Airports currently classified as 6 intermediate to be detached from taxation of the City and the School District; and 7 WHEREAS, the City supports the increased economic development at the Holman Airport; therefore 8 be it 9 RESOLVED, That the City of Saint Paul does recommend for consideration by the Minnesota State 10 Legislature that Airports classified as intermediate by the Metropolitan Airports Commission and the 11 Minnesota State legislature be included in detachment law concerning City and School District 12 taYation.to sunset December 31, 1998, unless notified b the Council and Mayor before that 13 date. 14 15 16 Adopted by Council: Date �� '��. �q�� Adoption Certified by Council Secretary R • o�.. `'�.�..k. a g a�.-9.� �tv�.....�-. • aa�eeaby co�u: nae� �`('��+�1 �� 4 g�' Adoption Cutified by council Secretazy �.: a Approv byMayor: ete -' h'� S � s �` � , , ,� % , ; a Requested by Department pf: By: Form Approved by City Attorney By: BY� � � -Y-z� a--t� Approved by Mayor for submisaion to � Council Approved by May Date By: BY= 9S=�L DEPAqTMENT/OFFICE/COUNCIL DATE INITIATED � O 2 9 9 �� c,ryco,��u s-oi-9s GREEN SHEET � INITIAVDATE (� AT CANTACf PEflSON & PHONE � DEPARTMEM DIRE Q CIN COUNCIL � Jerry Blakey 2b6-861A ass��N CRY ATCOf{NEY cm c�a�c NUYBERFON O a MUST BE ON COUNCIL AGENDA BV (DATE) pOUTING O BUDGEf DIREC�OR � FIN. 8 MGT. SEPVICES �IR. ONOER � MpYOR (OR ASSISTANn � TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION P.EQUESTED: Refeaal to Intergovernmental Affairs Committee (iECOMMENDATIONS: Approve (A) or Reject (F) PEFiSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS: _ PLANNING COMMISSION — CIVIL SERVICE CAMMISSION 1. Has this persoMirm ever worketl under a contracl for this tlepartment? — C�B COMMITfEE _ YES NO _ STAFF 2. Has this personRirm ever been a ciry employee? — YES NO _ DIS7RIC7 COURi _ 3. Does this persoNFirm possess a skill not normally possessed by any curreni ciry employee? SUPPOPTS WHICH COUNCIL O&IECTIVE� YES NO Explain sll yes answers on separate sheM and attach to g�een sheet INITIATING PROBLEM, ISSUE, OPPORTUNffY (Wlw, What, When, NTere, Why): Holman Airport needs amendment to state detachment law to be competidve with MSP Airport in attracdng corporate flights into Saint Paul. ae�� : z �� p�q 10 1995 ADVANTAGESIFAPPROVED 3�,F"yr �Z, „ .� � ��.�" Holman Airport lessees will be on the same compedtive level as MSP Airport lessees DISADVANTAGES IFAPPROVED City and School District [axes will be eliminated (detached) &om real property at the Holman Airport DISAOVANTAGES IF NOT APPROVED: L.essees at the Holman Airport will be a[ a competitive disadvantage. S � �� ,.�� MAR � I 8955 TOTAL AMOUNT OF TRANSACTION $ COST/liEVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIfdG SOURCE ACTIVITY NUMBER FINANCIAI INFORMATION. (EXPLAIN) 0 R i G � N A�f Council File # (� r �oZ � D Y�/1 � � Green Sheet # yya a,.� �-� �/ � - - RESOLUTION �C� OF SAtNT PAUL, MINNESOTA Presented By Referred To �� Commit� j Committee� Date March 8, 1995 1 WI-IEREAS, the Metropolitan Airport Commission leases 2 Airport in the City of Saint Paul; and 3 WHEREAS, the Minnesota State Legislature and the Metropolitan 4 designated Holman Airport as an intermediate airport; and , 5 WHBREAS, detachment law in Minnesota Statutes does not 6 intermediate to be detached from taxation of the City and th 7 WHEREAS, the City supports the increased economic 8 be it surrounding Holman Commission has Airports currently classified as ol District; and at the Holman Airport; therefore 9 RESOLVED, That the City of Saint Paul does reco end for consideration by the Minnesota State 10 Legislature that Airports classified as intermediate b the Metropolitan Airports Commission and the 11 Minnesota State legislature be included in d ch nt law conceming City and School District 12 +axation� l? � � � �i� � �� v j � ��Giy�� 1' 1 U/ �, ��d' � � � �. � ,+ , �' �+ 14 ` �s � ��,� , 16 Absent Adopted by Adoption Approved by Mayor: . Date by Council Secretary Date Requested by Department oE: By: Form Approved by City Attorney By: Approved by Mayor for Submisaion to Council By: By: CITY OF SAINT PAUL Office of the City Council `O<'- 310 City Hall Saint Paul, Ivfinnesota 55102 (612) 266-8577 GmgoryN. Blees Fiscal Policy Director DATE: TO: FROM: SUBJECT: MEMORANDUM March 21, 1995 Council member Jerry Blakey Greg Blees, Fscal Policy Director �' Downtown Airport: Property Taz Eaclusion CF# 92-226 �s -2-a� This memo provides the City Council with the information requested at the March 15, 1995 Intergovemmental Relations Committee where there was a request to support State legislation to eliminate City and School District properiy taxes for personal property located at the Holman Field Airport in Saint Paul. It also identifies policy issues regarding "service contracts" for Saint Paul police and fire services and for "special assessments" to airport property. TAX DATA REOUESTED: Based on Ramsey County's Payable 1995 Property Tax data, 29 parcels at the Downtown Saint Paul Airport would have City and School Distdct properry ta7ces eliminated under the proposed legislation referenced in attomey 7oseph O'Neill's Mazch 14, 19951etter representing Regent Aviation Services. The attached spreadsheet displays that the 29 parcels collectively have an Estimated Market Value of $4,104,000 which generates a Tax Capacity valuation of $173,356. In 1995, the 29 parcels collectively will pay $257,740 in personal property taxes, which is equal to about 6.3% of the market value of their property. If the proposed legislation were enacted as requested, the tax reduction for the 29 parcels would total $178,921, or about 69.4%. The amount of airport ta�ces proposed to be elinunated for services provided by the City of Saint Paul totals $66,630, while the total for the 5aint Paul School District is �112,291. About 78% ofthe property tax reduction for the ISD 625 would be offset by an increase in equalized State School Aids of about $87,000, and thus would not be shifted to other property tax payers. While the Saint Paul Airport businesses would experience a tax reduction of about 70%, there would be a conesponding slight tax increase for ail other Saint Paul properties. By removing $173,356 in Taa Capacity valuation from the Saint Paul Tax 6ase, all other properties would experience a tas increase of about 0.087% (eighty-seven, thousandths of a percent). A Saint Paul homestead with an Estimated Market Value of $75,000 currently pays $1,185.80 in property taxes. That representative home would experience a tax increase of about $1.03, if the proposed legislation was enacted. City Councii Members �s - aa � Page 2 CONTRACTS FOR SERVICE AND SPECIAL ASSESSMENTS The Metropolitan Airports Commission (M.AC.) provides 24 hour-a-day, non-city, Police and Fire services for the structures located at the Minneapolis Saint Paul International Airport. The cost of these services are paid for through rent and lease payments of the ternunal and other M.A.C. properties. If the private businesses at the Holman Field Airport desire to be tased in a similar manner to the Twin Cities Airport properties, they too would have to pay for the Fire and Police services (currently being provided by the City of Saint Paul) by some method other than property ta�ces. (Of the $66,630 paid to the City in 1995 by Holman Field Airport businesses, approximately $11,000 is for Fire Services and $15,000 is for Police services.) °� � pb o �,� J If Holman Field Airport properly taxes are eliminated for City services, it would be only fair and proper for the businesses at the Saint Paul Airport to enter into a"contract-for-service" - for their most essential public safety services. The businesses could collectively contract with the � Saint Paul Police Department and the Saint Paul Department of Fire and Safety Services, or some private-sector firms. The Metropolitan Airports Commission has no plans to provide Police and Fire services to the Holman Fieid Airport. Currently, the City of Saint Paul does provide Police and Fire Service to the "tas-exempt propert}�' owned by M.A.C. at the Downtown Saint Paul Airport. M.A.C. recently help purchased a new fire truck for Saint Paul which provides the capability to foam a runway at the Holman Field Airport. Over the years, M.A.C. has refused to pay assessments (street maintenance and storm area charges) for the land it owns at the Holman Field Airport. They believe that because they are detached from the City and School District for property taxes, they do not have to pay for other City services provided directly to their properties. If the City of Saint Paul supports State legislation to reduce property taxes at the Saint Paul Airport, it may be appropriate to clarify existing State law regarding the M.A.C.'s responsibility to pay assessments for direct property services provided by the City of Saint Paul. c: Council Members: David Thune, Marie Crrimm, Dino Guerin, Michael Harris, Roberta Megard, and 7anice Rettman Mayor Coleman, Pam Wheelock, Joe Reid, Tim Ma� Chuck Repke, Gerry McInerney Joseph O'Neill �s-a�-� Z O ti � � O � Z � � � W a 0 � a �; o� �: � W � � � a a � � c . ; a � v n ti < � � V � � E � s � C John B. Butke, Jr.+ Joseph T. O'Neillr Brian F. Leonard• Micbael R. O'Brien Lawrence A. Witfordt Eldon 7. Spencer, St.* FdwazdW. Gale Pe[er H. Grills Jamu A. Geske Michelle McQuacrie Culton Grover C. Sayre, III Thomaz W. Newcome IIIt Brian F. Kidwell Thocnas W. Newcome O'NEILL, BURKE, O'NEILL LEONARD & O' BRIEN Attomeys At Law A Professional Association 800 Norwest Center 100 South Fifth Street 55 East Fifrh Street Suite 1200 Saint Paul, Minnesota 55101 Minneapolis, Minnesota 55402 Telephone (612) 227-9505 Telephone (612) 332-1030 Fae (612) 297-6641 Fax {612) 332-2740 Reply to: Saint Pau[ March 21, 1995 Councilmember Roberta Megard St. Paul Ciry Council 310-D City Hall St. Paul, MN 55102 � s -aa� Timmhy M. Wa{sh Soseph J. Deuhs, Jr. Thomas C. Atrnoie Kazen A. Ch2merlik Sohn T. Kelly Eric D. Cook Kristen A. Ziemer Of Counsel: John F. Kelly Kenneth B. Peterson David E. Crawford +Re¢ced 'AISO admitted in Wisconsin tCenified Real Property Specialis[ (Minrsecot¢ StaJe BarASSOCiation) Re: Downtown St. Paul Airport I.essees Personal Property Detachment from City and School District TaYes Dear Councilmember Megard: We represent Regent Aviation and other lessees at the Downtown St. Paul Airport. We wrote to you on March 14, 1995 enclosing a resolution presented by Councilmember Blakey relative to proposing support for an amendment to the Metropolitan Airports Commission law. Under this amendment, the present law, Minnesota 5tatutes §473.625 which detaches personal properiy at the "major" Minneapolis/St. Paul Airport (MSP) from city and school district taxes would be extended to detach city and school district tases at the one "intermediate" airport of the MAC located at the Downtown St. Paul Airport Holman Field (STP). I am enclosing a copy of a letter from the Superintendent of Schools, Dr. Curman Gaines, indicating their support for the proposed change under Minnesota Statute §473.625. As is done in other locales, if the statute is changed, the lessees at the downtown airport intend to enter into a contract with the Saint Paul Police Department for providing police services in accordance with the repor[ from Greg Blees, City Council Fiscal Analyst. In addition, the lessees are interested in working out an arrangement with the Saint Paul School District relative to working with the students of the Saint Paul School District to familiarize them with the possibaliry of a career in aviation through participation in a program between the Public School System and Regent Aviation. �s—a�c� We hope with this report from the Saint Paul School District and Mr. Blees' report that you will be able to support this resolution of Councilman Blakey. If you have any questions, please contact me. Very truly yours, O'NEILL, BURKE, O'NEILL, LEONARD & O'BRIEN r � � JTO:Imf Enclosures cc: Senator Sandy Pappas Representative Carlos Mariani Ray Faricy - Laurie I.auder Dr. C�rnian Gaines 13120_1 �� I L�� L - �S-a�-� OFFICE OF THE SUPERINTENDENT PUBLIC SCHOOLS CURMAN L.GAINES, Ph.D. Superintendent ot Schools March 16, 1995 LIFELONG LEARNING Mr. Joseph T. O'Neill O'Neill, Burke, O'Neill Leonard & O'Brien 80Q *:orcJest Cer_ter 55 East Fifth Street Saint Paul, MN 55101 Dear Mr. O'Neill: Thank you for your February 23, 1995, letter regarding legislation proposing Saint Paul downtown airport lessees' detachment. We appreciate your clients' interest in the-economic development of the Saint Paul community. I have reviewed the impact on the Saint Paul school district concerning the proposed change in law affecting the property tax status of the Saint Paul airport. The school district supports the proposed change in MN Statutes 473.625. As you may know, the district is Concerned with the property tax impact on the individual homeowner whenever there is a tax shift towards the homeowner caused by a deClining tax base in the city. This specific proposed decrease in property tax base, however, has been estimated to increase school property taxes on an average value home in Saint Paul by less than one dollar. The benefits for the City of Saint Paul appear to merit the proposed change in law. Ti�ass;c you for your continue� interest in trie Saint Paul PubliC Schools. Sincerely, �f^ �,�ic�...�..� Curman Gaines CG:ca cc: SChool Board Directors DISTRICT 625 • 360 COLBORNE STREET • ST. PAUL, MINNESOTA 551023299 •(612) 293-5150 • FAX NUMBER: (612) 290-8331 �.r, o0 Q 4 ? o i m JERRY BLAKEY Counci7member COMMITTEE REPORT March 15, 1995 1. qS—��. CITY OF SAZNT PAUL OFFICE OF THE CIT'Y COUNCII. Members: Jerry Blakey, Chair Marie G�imn Roberta Megard Dave Thune INTERGOVERNMENTAL RELATIONS COMMITTEE Approvai of March 8, 1995 IGR Committee Minutes Committee recommended APPROVAL o£ the Minutes 2. Mayor's Staff Update Mayor's 5taff were Unable to Attend 3. Holman Airport Resolution (C.F. #95-226) (referred to IGR Committee at 3/8/95 Council Meeting) �' =� t � '��'� � ; :�. __�:_ Committee recommended REFERRAL BACK to City Council, �i'ITAOUT A RECOMMENDATION (Whatever new information is available, and a report from Greg Blees on the financial impact on the City, to be provided before the City Council Meeting. A full discussion to be at the next City Council Meeting on 3/22/95) �';��;;'.� si'�sv stc��3� i',�'�,;{ a,��et? CITY HALL THIRD FLOOR SAINT PAUL, MINNESOTA 55102 612/266-8610 s�ns Printed on Berycled Paper qs-�.�� City of Sairrt Paul Ciry CouncG Research CeMer 310 City Hall Saint Paul, MN 55102 612 266-8565 INTER-DEPARTMENTAL MEMORANDUM DATE: Mazch 10, 1995 TO: Councilmember Blakey FROM: Mary Erickson SUBJECT: C.F.95-266 Attached is a copy of Resolution 95-266 - Recommending that the Minnesota State Legislature consider airports classif'ied as intermediate by the Metropolitan Airports Commission and the Minnesota State I.egislature be included in detachment law concerning City and School district Taxation. This resolution was referred to the Intergovernmental Relations Committee by the City Council on Mazch 8, 1995. C: Cazol Novak