Agenda For The Public Hearing Regarding Gateway Arts District Recertification Resolution City of Mount Rainier Tuesday, June 15, 2021 7:00 PM 1. Call To Order 2. Review of Agenda 3. Public Hearing Regarding Resolution 05-2021; Ordinance 09- 2021 & Ordinance 10-2021 Gateway Arts District Recertification & Tax Credits. 4. Adjournment Adopted June 15, 2021 RESOLUTION 05-2021 A RESOLUTION OF THE CITY OF MOUNT RAINIER APPROVING THE ESTABLISHMENT OF A GATEWAY ARTS AND ENTERTAINMENT DISTRICT WHEREAS, Prince George’s County has applied to the Secretary of Business and Economic Development of the State of Maryland for renewal of the Gateway Arts and Entertainment District (the “District”) designation within certain boundaries shown on the map attached to this Resolution, and WHEREAS, under Md. Code Ann., Tax-Gen’l Art., § 10-207(v), a “qualifying residing artist”, as that term is defined in Md. Code Ann., Econ. Development Article, § 4-701, in a designated arts and entertainment district may, for purposes of calculating his or her State adjusted gross income, subtract from his or her federal adjusted gross income the amount of income derived within the district from the publication, production, or sale of an artistic work that the artist created, wrote, composed, or executed in the arts and entertainment district.; and WHEREAS, under Md. Code Ann., Tax-Prop. Art., § 9-240, the City of Mount Rainier may grant, by law, a property tax credit against the City property tax imposed on a manufacturing, commercial, or industrial building that is located in the arts and entertainment district is capable for use by a “qualifying resident artist” or an “arts and entertainment enterprise”, as those terms are defined in Md. Code Ann., Econ. Development Article, § 4-701; and WHEREAS, under Md. Code Ann., Tax-Gen’l Art, § 4-104(e), the City of Mount Rainier may exempt gross receipts from any admissions or amusement charge levied by an arts and entertainment enterprise or qualifying residing artist in an arts and entertainment district from the City’s admissions and amusement tax. NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MOUNT RAINIER THAT: 1 1. The City of Mount Rainier agrees that the geographic boundaries of the Gateway Arts and Entertainment District shall be as depicted on the attached map titled “Gateway Arts District” and including the parcels listed on the attached sheet; and 2. The City of Mount Rainier fully approves and supports the designation of the District; and 3. The City of Mount Rainier understands that the income tax subtraction under 10-207(v) of the Tax-General Article for qualifying residing artists in the District might affect its income tax receipts; and 4. The City of Mount Rainier has adopted legislation to provide the following incentives to eligible persons in the District: (a) During the entire designation period approved by the Secretary, the City exempts from the Admission and Amusement Tax gross receipts from any admissions or amusement charge levied by an arts and entertainment enterprise or qualifying residing artist in the District, as authorized by Md. Code Ann., Tax-General Art., § 4-104; and (b) During the entire designation period approved by the Secretary, the City grants a real property tax credit as described in §9-240 of the Tax-Property Article against the City of Mount Rainier property tax imposed on the assessment of eligible buildings. The real property tax credit amount shall be the following percentage of the amount of property tax imposed on the eligible assessment of the property entitled to the credit:: (i) 100% in each of the first taxable years after the calendar year when the property initially is entitled to the credit; (ii) 80% in the second taxable year; (iii) 60% in the third taxable year; (iv) 40% in the fourth taxable year; (v) 20% in the fifth taxable year; and (vi) 0% in the sixth through tenth taxable years. 2 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MOUNT RAINIER that this resolution shall take effect immediately upon adoption, provided that a fair summary has been read at the meeting at which it is introduced and at the meeting at which it was acted upon, it is posted at City Hall for at least two weeks after it becomes effective, a fair summary is published at least once in a newspaper having general circulation in the City, inclusive of the City's newsletter mailed or otherwise delivered to every City household, and filed in City Hall by the City Manager. INTRODUCED AND ADOPTED by the Council of the City of Mount Rainier, Maryland at a meeting of the City Council on June 15, 2021. Attest: ______________________ __________________________________ John Hoatson, City Clerk Celina Benitez, Mayor ______________________________ Luke Chesek, Councilmember Ward 1 ______________________________ Scott Cecil, Councilmember Ward 2 _________________________________ Jarrett Stoltzfus, Councilmember Ward 2 ________________________________ James Tarlau, Councilmember Ward 1 3 Introduced & 1st Reading: June 15, 2021 Adopted: June 15, 2021 CITY OF MOUNT RAINIER, MARYLAND Ordinance No. 09-2021 Introduced by Mayor & City Council Amending Chapter 2, “Assessments and Taxation and Fees”, of the Code of Ordinances of the City of Mount Rainier, to add Section 2-111, “Admission and Amusements Tax Exemption for Certain Uses in an Arts and Entertainment District”, to implement the permissive tax exemption set forth in Md. Code Ann., Tax-General Article, § 4-104. WHEREAS, pursuant to § 5-202 of the Local Government Article of the Annotated Code of Maryland, the Council of the City of Mount Rainier, Maryland (the “City Council”) has the authority to pass such ordinances as it deems necessary to assure the good government of the municipality, protect and preserve the municipality’s rights, property, and privileges, preserve peace and good order, secure persons and property from danger and destruction, and protect the health, comfort, and convenience of the residents of the municipality; and WHEREAS, pursuant to § 6-203 of the Tax-Property Article of the Annotated Code of Maryland, the City Council has the specific authority impose a property tax on those classes of property that it selects to be subject to municipal corporation property tax; and WHEREAS, pursuant to this authority, the City Council has adopted Section 705, “Taxable Property”, of the City Charter subjecting all real and business personal property within the City to taxation for municipal purposes; and WHEREAS, pursuant to Section 706, “Notice of Tax Levy”, of the City Charter and Section 2-103.A, “Annual Levy”, of the City Code, the City Council annually imposes property taxes in conjunction with the adoption of the City budget; and WHEREAS, pursuant to various provisions of the Tax-General Article of the Annotated Code of Maryland, the City Council has the authority to provide for certain tax credits and tax exemptions; and WHEREAS, the City Council has deemed the creation and maintenance of an Arts and Entertainment District (“the District”) by Prince George’s County a benefit to the Town’s economic _____________________________________________________________________________________ UNDERLINED TEXT IN SMALL CAPS : Indicates matter to be added to the City Code [Bold brackets] : Indicate matter to be deleted from the City Code * * * Asterisks : Indicate matter to remain in existing law but omitted here Page 1 of 3 development and its vibrancy and attractiveness and has supported the designation of the District by Resolutions adopted in 2002 and 2011; and WHEREAS, the Arts District designation will imminently expire if the designation is not renewed by the State upon the application of Prince George’s County; and WEREAS, in order for Prince George’s County to obtain re-certification of the Arts and Entertainment District from the State, the government entities with taxing authority within its boundaries must certify that they will make available certain incentives for certain property and certain uses within the District; and WHEREAS, the City Council desires that the Arts and Entertainment District designation be renewed; and WHEREAS, the Council, by the unanimous vote of Council members present at the time of adoption, determines that there is an urgent public necessity requiring the adoption of this ordinance on an emergency basis so as to allow the waiver of the requirements of City Charter Section 12(a) that an ordinance cannot be adopted before the expiration of six (6) days from the date of introduction. Section 1. NOW THEREFORE, BE IT ORDAINED AND ENACTED, by the Council of the City of Mount Rainier, Maryland that Chapter 2, “Assessments and Taxation and Fees”, of the Code of Ordinances shall be and hereby is amended to add Section 2-111, “Admission and Amusements Tax Exemption for Certain Uses in an Arts and Entertainment District”, to read as follows: SEC. 2-111. ADMISSION AND AMUSEMENTS TAX EXEMPTION FOR CERTAIN USES IN AN ARTS AND ENTERTAINMENT DISTRICT A. IN THIS SECTION, THE TERMS “ARTS AND ENTERTAINMENT DISTRICT”, “ARTS AND ENTERTAINMENT ENTERPRISE” AND “QUALIFYING RESIDING ARTIST” HAVE THE MEANINGS STATED IN MD. CODE ANN., ECON. DEV. ARTICLE, § 4-701. B. GROSS RECEIPTS FROM ANY ADMISSIONS OR AMUSEMENT CHARGE LEVIED BY AN ARTS AND ENTERTAINMENT ENTERPRISE OR QUALIFYING RESIDING ARTIST IN AN ARTS AND ENTERTAINMENT DISTRICT IN THE CITY IS EXEMPT FROM THE CITY’S ADMISSIONS AND AMUSEMENT TAX. Section 2. This Ordinance is adopted by the Council of the City of Mount Rainier this 15 day of June, 2021,