04-038-O

ORDINANCE NO. __________

AN ORDINANCE ADDING A NEW ARTICLE XXXI TO CHAPTER 2 OF THE DULUTH CITY CODE PERTAINING TO TAX BASE IMPACT STATEMENT.

BY COUNCILOR NESS:

The city of Duluth does ordain:

Section 1. That Duluth City Code 1959, as amended, be amended to add a new Article XXXI to read as follows:

Article XXXI. Tax Base Impact Statement.

Sec. 2-161. Policy and purpose.

It is the policy of the city of Duluth that protecting and expanding the property tax base are important factors to be considered when the city enters into any transaction, or makes a policy decision. Both the public and the elected officials should be informed of the effect a transaction or decision has on the property tax base. Therefore, this article is enacted for the purpose of providing a process by which the public and the elected officials are informed of the effect their decisions may have on the tax base of Duluth, and on the property tax revenues of Duluth.

Sec. 2-162. Definitions.

For purposes of this Article:

(a) Tax base means the property, and the valuation of it, that is subject, under the law, to ad valorem taxes, any part of which tax, when collected, may be part of the city of Duluth's revenues;
(b) Tax base impact worksheet means the form document, developed by the finance department and approved by resolution of the council, which records the relevant values and factors of a proposal;
(c) Tax base impact summary means a short statement approved by the mayor or city attorney that appears at the beginning of the statement of purpose of any proposal to which this Article applies;
(d) Tax base impact statement is a report that analyzes the information on the tax base impact worksheet, includes different and more detailed information, and states a conclusion as to the proposal's expected impact on the property tax base during each of the first 25 years following adoption or approval of the proposal;
(e) Proposal means any ordinance or resolution, filed with the city clerk, or communicated to the city council, Duluth planning commission or DEDA, or any report or other written communication from the mayor, administrative assistant or other officer of the executive branch of city government, or of any city board or commission, which ordinance, resolution or written communication would allow, require, or recommend any of the following:
(1) A transfer of any interest in real property, except an easement;
(2) A change in the tax classification of any property;
(3) The erection or demolition of any building covering an area of land greater than 1,100 square feet;
(4) A change or objection to change in the classification of tax forfeit land;
(5) The granting or recommendation of a loan, grant, business subsidy as defined in Minnesota Statutes Section 116J.993, et. seq., or its successor, tax abatement, tax assessment agreement;
(6) A lease or land use license for a period longer than one year;
(7) A special use permit or variance from zoning;
(8) The acceptance by the city of a gift or other conveyance of real property or any interest therein;
(9) The vacation of any easement;
(10)Any other action or transaction that will affect the property tax base. The term "proposal" does not include a transfer of property from one unit of government to another, nor an improvement completely paid for by one or more government units, located upon land owned by a government unit, and intended for public use or exclusively use for government operations.

Sec. 2-163. Tax base impact worksheet required.

Before any proposal is filed with the city clerk or presented to the city council, Duluth planning commission or DEDA, the proposer must cause to be accurately completed a tax base impact worksheet pertaining to the proposal. The completed worksheet shall be filed with the clerk as a public document, and shall be presented with any proposal that is not an ordinance or resolution, or with any proposal that requires a tax base impact statement.

Sec. 2-164. Tax base impact summary required.

Any proposal which is a resolution or ordinance that is presented to the city council, Duluth planning commission, or DEDA must include a tax base impact summary in its statement of purpose.

Sec. 2-165. Tax base impact statement required.

The proposer of the following proposals shall prepare a complete and accurate tax base impact statement, file it with the clerk as a public document and present it to the city council, Duluth planning commission or DEDA at the same time the proposal is presented:
(a) A proposal that involves more than 15 acres;
(b) A proposal that involves real property of fair market value, as shown on the records of the city assessor, in excess of $850,000, or that will involve construction, financed in any part with public money or business subsidy, of improvements, which construction will cost at least $1 million;
(c) A proposal that involves rezoning an area greater than 10,000 square feet;
(d) A proposal for which a tax base impact statement is requested by the mayor, city council or Duluth planning commission.

Sec. 2-166. Planning commission report required.

If the Duluth planning commission takes any action on a proposal, it shall include in its written report, or record of proceedings, or action, a tax base impact summary, and a description of what information formed the basis of the summary. The summary does not require approval by the mayor or city attorney.

Section 2. That this ordinance takes effect 30 days after its passage and publication.


STATEMENT OF PURPOSE:  This ordinance requires a report to the council, planning commission, and DEDA of the effect a proposal will have on the city's tax base. The report will be simple, short and summary in nature except for large projects.