06-24-1985 Council Packet - Laserfiche WebLink

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C0VNPFIL AIr-STING TO: Mayor and City Council c.,r' FROM: Mark Bernhardson, City Administrator dy0: ' ' r;� -Igo DATE: June 17, 1985 SUBJECT: Spring Hill Conference Center - Donation When the Spring Hill Conference Center was first initiated back in the early 70's the issue of Spring Hill's tax exempt status was discussed and there was some willingness on the part if Spring Hi l l to make a contribution to the City of Orono to help defray particularly Police and Fire expenses. This however was not initiated until budget year 1980, in which based on a formula that took into account Spring Hill's market valuation, assessed value, applicable tax rate, Orono's portion of that tax rate and the percentage that Police and Fire made up of Orono's taxable budget, a donation figure of approximately $1,900.00 was arrived at. From 1981 to 1984 the same formula was used which yielded an approximate contribution of $2,100.00, which Spring Hill did contribute. With their addition in 1985 the formula was recalculated based on a $3.5 million addition, as was indicated on the building permit, yielded a contribution of approximately $8,300.00. When the letter outlining the formula and amount of contribution was forwarded to Spring Hill they indicated verbally that this has always been a voluntary contribution on their part and feel that the existance of a formula to serve as the basis for that contribution over a period of time begins to make it compulsory. As you will note in the attached letter they have responded and are willing to increase their contribution from approximately $2,200.00 to $4,000.00. Just under 50% of the amount that the formula would have indicated. While the building permit value for the property is not necessarily an indication of the market value it is the best guide we have until a market valuation is done. This is anticipated in 1986 and can give us some guidance at that point. Should you, the Council, feel this is adequate we will accept the contribution as sent forward and reevaluate the issue next year. Please feel free to give me your comments and suggestions.