Tax-Exempt Debt

Northrop Auditorium on U of M campus

The University issues debt to fund various capital projects, including land and building purchases. The issuance process and post-issuance compliance are the responsibility of Debt Management. The University Tax Management Office works with the Debt Manager and several other departments on campus to manage the tax aspects of a tax-exempt debt issuance. As needed, the Tax Management Office will perform reviews of private use and arbitrage rebate relating to tax-exempt debt issuances.

The University has debt management guidelines that ensure each debt transaction conforms with all laws and regulations. Capital Project Management provides a portfolio of projects in design, projects in construction, and completed projects.

Private Business Use Working Tips

  • Private business use (PBU) must be tracked by the TMO on an annual basis.

  • PBU occurs when an outside non-governmental entity uses the TE funded space.

  • The following activities will need to be analyzed by the TMO to determine if private use exists:

    • Rental of debt-financed space to outside third parties.

    • Naming rights for non-individuals.

    • Research agreements with outside organizations

    • Collaboration agreements with third parties

    • Management contracts

PBU Maps

The TMO has prepared maps of each of the campuses identifying the capacity for private business use within each building. Departments should refer to them prior to entering into any private business use arrangements. The following is information to help interpret the color coding (key) used in the maps.

  • Buildings shaded blue do not have any TE debt on them and have no limits at this time for private use. 

  • Buildings shaded orange also have no TE debt and have capacity for additional private uses but HEAPR funds should not be used for any building improvements without first working with the TMO.

  • Buildings shaded green have TE debt but have capacity for additional private uses.

  • Buildings shaded yellow have TE debt and the TMO should be contacted prior to entering any additional private use agreements.

  • Buildings shaded red have TE debt and the TMO should be contacted prior to entering any additional private use agreements. In addition, HEAPR funds should not be used for any building improvements without first working with the TMO.

  • Buildings shaded gray have not yet been analyzed by TMO.  Departments should contact TMO before entering into any private business use arrangements or before requesting HEAPR funds to be used for building improvements.

  • Click on each map below to access the pdf version for each campus:

Minneapolis PBU:

Tax Map Minneapolis

 

St. Paul PBU:

Tax Map St Paul

 

Duluth PBU:

Tax Map Duluth

 

Morris/Crookston PBU:

Tax Map Morris and Crookston