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Home My WebLink AboutP-0295 - Payment in Lieu of Taxes - County Owned Property 05-29-1997-3POLICY FOR INSERTION INTO THE POLICY MANUAL MEETING DATE: May 29, 1997 NUMBER: P0295 EFFECTIVE DATE: May 29, 1997 REVISIONS: POLICY: PAYMENT IN LIEU OF TAXES -COUNTY OWNED PROPERTY County owned real property (land and buildings) is exempt from ad valorem property taxes as provided in Article V, Section 2 (3) of the North Carolina Constitution and North Carolina General Statutes b 105-278.1. From time to time Orange County owned real property is leased to persons using the property for private purposes not related to County programs or services. Typically these tenants are using the property as part of the for- profit business activities of the tenant. This policy confirms and ratifies the previous unwritten policy of Orange County to charge such tenants payments in lieu of taxes in amounts equivalent to the amount of property tax that would otherwise be lawfully assessed against the leased premises where they are taxable by the county and by any municipality in which the leased premises are located. Requiring these tenants to make payments in lieu of taxes serves two important purposes. One, it eliminates the competitive advantage accruing to a tenant of County owned real property that could result from a rental agreement not requiring tenant contribution of property taxes. Two, it provides the County and any municipality wherein the leased premises are located with money equivalent to taxes as a contribution to the cost of public services provided by the County and any municipality wherein the premises are located which public services benefit the tenant of County owned space in the same way that they benefit a tenant of privately owned leased space. • 3 ORANGE COUNTY BOARD OF COMMISSIONERS REGULAR MEETING MINUTES MAY 29, 1997 AT 7:30 P.M. The Orange County Board of Commissioners met in regular session on Thursday, May 29 at 7:30 p.m. in Superior Courtroom in Hillsborough, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair William L. Crowther and Commissioners Margaret W. Brown, Moses Carey, Jr., Alice M. Gordon and Stephen H: Halkiotis. COUNTY ATTORNEY PRESENT: Geoffrey Gledhill COUNTY STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Manager Rod Visser and Albert Kittrell and Clerk to the Board Beverly A. Blythe (All other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. ALL RECORDING TAPES OF THE MEETING WILL BE KEPT FOR FIVE j~ YEARS. AGENDA 1. Presentation of the Manager's 1997-98 Recommended Budget John Link summarized his 1997-98 recommendation budget message. He acknowledged those staff members who worked on the budget. Highlights of the budget include the following: • General Fund Budget of $85,574,588 • An increase of $107 in the per pupil allocation for Education • a request for 13-1/2 new County positions • Provision of 2.5% COLA and modifications to the pay plan 2. Budget Public Hearing Ed Collins, representing the Carrboro Elementary School Governance Committee, read a prepared statement. The committee endorses the Chapel Hill-Carrboro City School Board budget as presented to the County Commissioners. He briefly told how the budget impacts the activities at Carrboro Elementary. They need additional funds for technology and 1-1/2 positions. His letter is in the permanent agenda file in the Clerk's Office. Lucy Gallo, representing the Transportation Advisory Council, spoke in support of the budget as recommended by the Chapel. Hill-Carrboro City School Board. They need additional people to ride the buses to monitor the discipline problems. She asked for money for safety monitors and substitute drivers. Sandy Williamson spoke in support of the budget for the Chapel Hill-Carrboro City School system. She supports the money which will decrease the student teacher ratio from 1 to 35 to 1 to 30. END OF PUBLIC COMMENTS 4 3. Adoption of Policy regarding Paving-in-Lieu of Taxes This policy is for County-owned facilities which are leased for private purposes not related to County programs or services. This policy provides authorization for Orange County to charge such tenants payments in lieu of taxes in amounts equivalent to the amount of property tax that would othervvise be lawfully assessed against the leased premises were they taxable by the County and by any municipality in which the leased premises are located. A motion was made by Chair Crowther, seconded by Commissioner Gordon to approve the policy as written which will be incorporated into the County Commissioners' Policy .Manual. VOTE: UNANIMOUS 4. Lease Approval for 501 West Franklin Street, Suite 106 A motion was made by Commissioner Halkiotis, seconded by Commissioner Brown to approve and authorize the Chair to sign a two year lease with Jim Lilley Properties for the period June 1, 1997 through May 31, 1999 substantially under the terms and conditions cited in the lease. VOTE: UNANIMOUS 5. Closed Session _Attorney-Client Privilege ~ authori of G.S. Section 143-318.11(a)(3) A motion was made by Commissioner Halkiotis, seconded by Commissioner Gordon to go into closed session in accordance with the attorney-client privilege by authority of G.S. Section 143- 318.11(a)(3). VOTE: UNANIMOUS A motion was made by Commissioner Halkiotis, seconded by Chair Crowther to reconvene into regular session. VOTE: UNANIMOUS ADJOURNMENT With no further items to come before the Board, Chair Crowther adjourned the meeting. The next regular meeting will be held on Monday, June 2 at 7:30 p.m. in the courtroom of the Old County Courthouse in Hillsborough, North Carolina. William L. Crowther, Chair Beverly A. Blythe, Clerk • • ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ACTION. AGENDA ITEM ABSTRACT Meeting Date: May 29, 1997 SUBJECT: Adoption of a Policy regarding Payment in Lieu of Taxes in certain leases executed by the County DEPARTMENT: PURCHASING AND Public Hearing: No CENTRAL SERVICES Budget Amendment Reqd? No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, ext. 2650 Policy Geof Gledhill, Co. Attorney Telephone'Number- Hillsborough 732-8181 Chapel Hill .967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider a adopting a policy regarding payment in lieu of taxes as it respects County owned property which is leased for private purposes not related to County programs or services. BACKGROUND: Pursuant to the Board's request, the attached policy is presented for Board consideration. RECOMMENDATION: The Manager recommends that the Board approve the policy as written. C~ J POLICY FOR INSERTION INTO THE POLICY MANUAL MEETING . DATE: May 29, 1997 NUMBER: EFFECTI VE DATE: May 29, 1997 REVISIONS: POLICY: PAYMENTS IN LIEU OF TAXES - COTNTY OWNED PROPERT County owned real property (land and buildings) is exempt from ad valorem property taxes as provided in Article V, Section 2(3) of the North Carolina Constitution and North Carolina General Statutes § 105-278.1. From time to time Orange County owned real property is leased to persons using the property for private purposes not related to County programs or services. Typically these tenants are using the property as part of the for profit business activities of the tenant. This policy confirms and ratifies the previous unwritten policy of Orange County to charge such tenants payments in lieu of taxes in amounts equivalent to the amount of property tax that would otherwise be lawfully • assessed against the leased premises were it taxable by the County and by any municipality in which the leased premises is located. Requiring these tenants to make payments in lieu of taxes serves two important purposes. One, it eliminates the competitive advantage accruing to a tenant of County owned real. property that could result from a rental agreement not requiring tenant contribution of property taxes. Two, it provides the County and any municipality wherein the leased premises is located with money equivalent to taxes as a contribution to the cost of public services provided by the County and any municipality wherein the premises is located which public services benefit the tenant of County owned space in the same way that they benefit a tenant of privately owned leased space. lsg-9 realprop.pol