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169. RESOLUTION NO. 2002 147 R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS URGING THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO REQUIRE THE CONSENT OF LOCAL TAXING ENTITIES FOR TRANSACTIONS BY NONPROFIT CORPORATIONS THAT RESULT IN TAX EXEMPT STATUS FOR RENTAL HOUSING PROPERTY; AND DECLARING AN EFFECTIVE DATE. RECITALS: 1. In December, 2000, a privately owned apartment complex in the City with a value of approximately $9,500,000 was purchased by a nonprofit corporation formed under Chapter 53 of the Texas Education Code through financing provided by another nonprofit corporation formed under Chapter 53 of the Texas Education Code. 2. The nonprofit corporations concluded the financing and purchase without notifying the City and without obtaining the consent of any of the local taxing entities. 3. Although the purchase provided benefits to the two nonprofit corporations, it resulted in tax exempt status for the apartment complex and the following losses in annual revenues to local taxing entities, at current tax rates: City of San Marcos Hays County San Marcos Consolidated Independent School District $44,640.39 $35,086.78 $135,494.48 4. The apartment complex and its residents generate the need for local government services such as police and fire protection, street and utility maintenance, and public school and court facilities construction, maintenance and operation without contributing to the property tax revenues needed to provide these services. 5. The benefits to the two nonprofit corporations come at the expense and subsidy of the taxpayers of the City of San Marcos, Hays County and the San Marcos Consolidated Independent School District, and create an unlevel playing field with respect to privately owned, taxable rental housing in the San Marcos community. 6. The City Council strongly objects to purchase and financing transactions by nonprofit corporations that result in tax exempt status for rental housing properties without the consent of the City Council. 7. The City Council wishes to seek the support of the Texas Municipal League for legislation that would require the consent of local taxing entities for transactions by nonprofit corporations that result in tax exempt status for rental housing property.