It is my understanding that the cost of new commercial/industrial
development is significantly more expensive on a sq. footage basis in
Minneapolis compared with surrounding suburban locations (a 25% premium
seems to ring a bell, but I don't know where that figure comes from or how
accurate it is). RT says the Mayor (and other elected officials I presume)
should not use our tax dollars to attract office tenants and commercial
developers to locate in our city, but rather should attract them and their
private investment dollars "with 'salesmanship' ... not with the public
checkbook." 'Salesmanship' is a pretty subjective concept-- until tangible
dollars are brought to the table. In fact, the term, when used in connection
with government programs and services, conjures up thoughts of 'feel good
doublespeak' in many peoples minds- smoke and mirrors, if you will.
My question: How do the central cities (Mpls/St. Paul) attract private
development without providing financial incentives, when the cost of such
development is clearly higher in the city as compared to many suburban
locations. What is the incentive for a developer to pay 25% more (or
whatever the premium is) for the right to put the project in Minneapolis as
opposed to Apple Valley, Hopkins or Buffalo? What factors makes it so
relatively more expensive to place a given development in the City, and how
can those costs be reduced to make the City more competitive in attracting
development dollars/projects? I'm talking capital construction costs and
annual operating expenses. How can the City make itself more competitive
and attract private investment and development?
Michael Hohmann, Principal
Michael A. Hohmann and Co. (MAHCO)
4100 Ewing Ave. So.
Minneapolis, MN 55410-1021
612-922-1490
http://www2.visi.com/mahco
~Market research, financial analysis, business plans and writing~
> -----Original Message-----
> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of
> R.T.Rybak
> Sent: Wednesday, January 24, 2001 3:44 PM
> To: David Brauer; Mpls list
> Subject: RE: [Mpls] Minneapolis loses again
>
RT says in part:
snip
> David Brauer asked if I was advocating spending money on office tenants.
> Absolutely not. Please go back and reread my post more carefully because I
> am specifically saying that the city SHOULD NOT subsidize office tenants
> with our tax dollars; we need a mayor who can attract them with
> her, or his, salesmanship...not with the public checkbook.
>
> As I said, we need a mayor who can attract private investment without
> subsidy so tax dollars can be used on the real needs of the city. An
> effective leader who attracts private dollars can save the money now going
> to development so it can be used to help solve the affordable housing
> crisis...where, I also think...we can be attracting more private
> investment.
> _______________________________________________
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