Agenda - Council - 02/22/1982 - Laserfiche WebLink

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-3- I I I ! I mall would benefit adjacent property owners directly, and also would indirectly benefit a wider area. The flexibility of a special service district would allow a city to distribute the costs in a way that equitably reflects both direct and indirect benefits. A portion of the mall's capital and operating costs (40%, for example) could be specially assessed against adjacent property to reflect direct benefits. To reflect indirect benefits, the entire downtown could be designated as a special service district and an ad valorem tax levied on property within that district to finance the remaining 60% of the costs. As an alternative to an ad valorem tax within the special service district, property owners or businesses could be billed directly in the form of a service charge. Although service charges can be more complex to administer, they offer flexibility in how the charge is determined. For example, a service charge could be based on floor area and adjusted for type of activity (e.g., office space vs. retail commer- cial) rather than being based simply on property values. WHAT YOU SHOULD DO I1. Call or write your legislators and ask them to support H.F. 1904, or the "League of Cities Special Service District Bill." Explain briefly how your city might use a special service district. It is especially important to do this if your legislator serves on the House Local and Urban Affairs Committee or either the House or Senate Tax Committees. Attend the hearing on H.F. 1904 scheduled for noon, Tuesday, February 16, in Room 83 of the State Office Building in St. Paul. It is the Government Structures Subcommittee of the House Local and Urban Affairs Committee. Contact Peggy Flicker at the League office if you have any special interest in the bill and would like to testify in support of it at a legislative hearing or talk to key legislators about what it means to your city. PF:rmm