The Strib story on the Sears site is here:
http://www.startribune.com/stOnLine/cgi-bin/article?thisStory=83744301
According to Steve Brandt, $1.4 million of the $2.4 buyout/bailout is to pay
off liens for work already done. (So theoretically, the city is merely
paying for improvements that needed to be done anyway, and will recoup when
they sell). $800,000 of this was state/federal grants committed to the
project, plus $600,000 more (also state/federal?)
Of the remaining $1 million, Harris and his partner get $300,000 - based on
an 8 percent return on their initial $225,000 investment. (Harris's quote:
"We're not going to be a long-term developer, but we're not coming out
getting hurt."") The story paraphrases MCDA head Steve Cramer saying this
was the price to avoid litigation and quickly convey part of the site to
Allina.
The other $700,000 is to buy back miscellaneous parcels Harris and his
partner acquired to round out the Sears site. No word in the story if they
made a profit on this part of the deal.
Two big remaining questions are: how much the new redevelopment plan will
produce in property taxes (I believe MDI and Allina, the two likeliest
tenants for two of the three parcels, are non-profit), and how many local
jobs will be created (the reason the MCDA got mixed up in this in the first
place)?
David Brauer
List manager, Minneapolis-issues
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of
Russell Wayne Peterson
Sent: Friday, March 09, 2001 8:14 AM
To: [EMAIL PROTECTED]
Subject: [Mpls] Sears Site Bailout
Anybody have insight on the nearly $2 million bailout of developers on the
Sears Site?
Russell W. Peterson
Ward 9
Standish
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