Councilmember Lisa McDonald keeps trying to position
herself as a fiscal conservative on the city council
in her run for Mayor.

Though she is correct in her recent commentary that if
the city had allowed the 900 block of Nicolllet Mall
to be "left to existing uses and private development,
property taxes generated by those uses would have gone
to the city for development or other uses" one might
wonder what other uses or developments Ms McDonald
would consider suitable.

Two projects Ms McDonald supported in the past few
years were also the subject of former Minneapolis
Finance Director John Moir quote that they would
consume " a lot of scarce public resources for dubious
outcomes", those being the Mann/Pantages and Schubert
Theatre projects.

Moir and Steve Cramer objected to the exclusive rights
given to Historic Theatre Group to redevelop the
Mann/Pantages. They felt the city would be better
served by competitive bids on the work. According to
the StarTribune Cm Niland felt there was no guarantee
a better proposal would come about by bidding out the
project and that a search would cost valuable time. Cm
McDonald voted with Cm Niland.

The final result was that the city refinanced its
existing theatre bonds covering the State and Orpheum,
adding $24 million in debt and extending bond payments
for another seven years. To this date I've not seen a
bit of activity to redo the Mann/Pantages so that
sorta blows CM Niland's theory about bidding out the
project costing the city valuable time.

In the case of the Schubert Theatre John Moir feared
the capitulation of Artspace, the eventual owner and
redeveloper of the theatre. He referred to Artspace's
financial projections as "wildly optimistic" and said
the project was "not viable."

He continued; "Demolishing the Schubert after spending
$4.7 million to move it would probably make the
demolition the most expensive such event per square
foot in the history of Western Civilization."
Apparently this was befor the Conservatory came
tumbling down like a house of heavy cards.

CM McDonald to her credit inserted an amendment into
the action that authorized the move and sale of the
Schubert that would insulate the city treasury before
voting for the project. Unfortunately reality will
probably mirror the Target project should Artspace
fail to come up with the money to renovate the
Schubert. It is unlikely a private investor will pony
up the bucks to finish the project and the city will
be stuck with an empty hulking presence on Hennepin in
the midst of its vaunted "entertainment district." Who
do you think will have to finish the job?

Ms Mcdonald also voted in October 1996 to award
exclusive development rights to Brookfield Development
for Block E for nine months over Loon State Ventures
which effectively set the ball rolling to the
denouement we saw last Spring when McCafferty In
terests with Brookfield as junior partner inked a deal
with the city that included $39 million in TIF funds.

At the time that CM McDonald cast her vote for
Brookfield and against Loon State Ventures which had
estimated a TIF investment of $35 million for a much
grander scale project, one that would have had a
greater chance of competing successfully with Mall of
America for entertainment dollars, Brookfield
estimated the TIF investmest for their modest plan at
$27 million. 

Loon State Ventures had asked for a six month period
of exclusive development rights at the same time that
Brookfield had asked for an eight month period and
received nine months and subsequent extensions that
brought the deal into the new millenium before it was
finalized as a $39 million TIF investment or four
million dollars more than Loon State had proposed for
a three block project.

CM McDonald made these comments at the time: The Loon
design is wonderful but we're at a point where the
rubber hits(?)the road...It's very important we have a
project that is fnancially viable."

She was concerned that providing TIF for Loon would be
riskier than providing it for Brookfield. The Star
Tribune wrote "CM Lisa McDonald also spoke in favor of
Brookfield; she said the developer of such downtown
projects as City Center and Gavidae Commons has a
strong track record, financial stability, and
credibility."

What bothers me most of all about this information
aside from the foolish expenditure of money and the
likelihood that Block E will be butt ugly and that it
may start a precedent of tall buildings sprouting up
along 1st Avenue North, is that these posturings by CM
McDonald seem to go unchallenged.

I've read two people comment that Lisa has impeccable
timing. Well, I hate to sound like Oliver Stone but I
smell a rat. I do not believe it is mere coincidence
that Lisa McDonald's op-end piece shows up in the same
issue as Mike Meyers thorough analysis. The only fault
I found in the reportage was the mere mention of R.T.
Rybak that leaves us to accept the explanation of R.T.
without confirmation by another source.

Tim Connolly 
Ward 7   


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