Board of Aldermen 02-23-2021 Page 12
Alderwoman Lu
Thank you Madam Chairman. Just had a couple of questions, this Legislation kind of came up a little quickly;
it's been on the table since April. | missed a Budget meeting and realized this week that it was going to be
heard again. So | tried to reach out to as many people as | need to speak with and | apologize because |
spoke Mr. Cummings today and | didn’t think of a couple of things. | wonder will the payment in lieu be
available for the School Street Parking Lot Bond Service. First question. | imagine | would ask Attorney
Bolton, Corporation Counsel, I’m unclear.
President Wilshire
Attorney Bolton did you want to respond to that?
Attorney Bolton
I’m not certain what you are speaking of talking about a “payment in lieu”. Is there something in the proposed
amendment that discusses a pilot agreement or payment in lieu of taxes?
Alderwoman Lu
You know what, excuse me, | think | misspoke, it’s in lieu, it's a payment of $150,000.00 and then $300,000.00,
$300,000.00, $300,000.00, $300,000.00, $300,000.00, in lieu of having a right to park they are paying us
because they can’t park underneath? That’s the way it reads in the agreement.
Attorney Bolton
lf they are paying money into the City, it is available to the City, assuming it is appropriated appropriately by
the Board of Aldermen it is available to the City to pay the City’s obligations. Earlier today, Alderman Jette
called me with his concerns about the lack of a more detailed description of the parking garage. And in an
effort to better familiarize myself, | read the agreement that was originally proposed and was attached originally
to the Resolution. As described in that agreement, as said earlier, the contemplation was a purchase. In any
event, prior to the closing of that purchase, the development plan which would have included the plans for the
parking garage had to be approved by the City. And if those provisions have survived the proposed
amendment then | think the concerns may be premature because if the City and when this agreement talks
about the “City” it is talking about the City acting through the Board of Aldermen and the Mayor. And, again,
unless that’s been amended out, that’s contained in Section 1.1 of the document.
So prior to any closing the development plan has to be approved by the Board of Aldermen and the Mayor. So
to the extent you want to be sure what you are getting, that should satisfy that concern. There was another
question Alderman Lu that | received in an email from you early this evening concerning payment of taxes on
the property. The general rule is the City does not pay taxes to itself. So City-owned property does not
generally have taxes paid. The exception to that is if City property is leased and used by a third party which is
subject to taxation, in other words, some entity that is not entitled to a charitable, religious or educational
exemption that user the lessee of publicly owned property is obligated to pay taxes. Now there are exceptions
to that and there are possibilities of payments in lieu of taxes. | don’t know if any of that is dealt with in the
proposed amendment.
President Wilshire
You’re all set Alderman Lu?
Alderwoman Lu
No | had a couple of other questions.
