Neil St. Anthony, the Strib business columnist who last covered the looming
Brookfield/City Center situation, comes out swinging with a tale of
Minneapolis taxpayers losing $500,000 on a dispute with the widow of
Cedar-Riverside developer Keith Heller. St. Anthony writes, "Although the
case wasn't huge, it gives insight into how the city can play hardball when
backing its subsidized-developer pals." The piece is at:

http://www.startribune.com/stOnLine/cgi-bin/article?thisStory=83706621

St. Anthony concludes with a tough swipe against city development policy:

"Minneapolis, through its aggressive and controversial development
practices, is pushing up public indebtedness by taking land to subsidize
development of downtown Target stores and entertainment complexes into which
tens of millions of dollars are being poured to buy or force out existing
owners and prepare the land for development by city-favored developers....
Because of the huge public debt the projects create, it takes years for such
developments to generate taxes for schools, cops and parks while the debt is
being repaid by the incremental taxes. It made some sense to prime
development in the 1970s and 1980s when the downtown loop was in rough
shape. It makes a lot less sense now. ...

"Everybody hopes the Target development, Block E and the refurbished
Milwaukee Road depot will be successful, pay down their public debt and
generate incremental revenue for the roads and schools sooner than
scheduled. Regardless, it's time for a breather and for the MCDA and its
board, the City Council, to curb future handouts for developments that will
take years to pay off for taxpayers."

Comments/responses/rejoinders, as always, welcome.

David Brauer
List manager, Minneapolis-issues


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