Scott McGerik says:
> I am confused about the status of NRP and TIF with regards to the tax
> bill. Is TIF being eliminated entirely? Of is the use of TIF for NRP
> funding being eliminated?
I haven't seen the details on what was passed, but I believe it's the
diversion of TIF revenues away from the general fund (for a period longer
than many see necessary-- i.e. not paying down and closing TIF districts
ASAP), with part of said revenues going to fund NRP that is the issue being
addressed in the new tax laws. In addition, I think TIF district revenues
are exempt from the fiscal disparities law, which means other cities are
less likely to benefit from sharing in the metro disparities pool since so
much revenue in Mpls is tied up (for extended periods) in TIF districts
(about 15% I believe)-- hence many jurisdictions, not just the outlying
suburbs, may feel they've been shorted by the metro disparities pool over
the past decade due to the extent TIF has been used in Mpls. and to the
'slow payback' phenomena referenced above.
I found it interesting to hear that no elected officials from Mpls. had met
with Ron Abrams, Chair of the House Tax Committee to discuss the issue over
the past six months. I'd imagine some city staffers including the NRP &
MCDA were lobbying hard and probably did meet with Abrams, but I think it
inexcusable that the Mayor and key committee heads on the City Council had
no meetings with him.
I hope someone more knowledgeable than I regarding the new state tax laws,
can provide us with a concise and unbiased summary of what has happened and
why; including reference to TIF law, districts and cash flow; the workings
of the fiscal disparities pool & law; and how this will impact MCDA, NRP and
city taxpayers in the future. Also, what does this tax law change mean to
surrounding local governments and the broader community-- the metro region,
in general? Seems we might be witnessing the end of a proverbial 'free
lunch' here in Mpls. However, it looks like the broader 'metro & beyond'
community viewed things differently than many here in Mpls.-- what is the
reasoning involved? I think it extremely important that we fully understand
what has happened and why, before we begin discussing new solution
scenarios.
Michael Hohmann
13th Ward
www2.visi.com/mahco
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