I am going to jump in here because there are some glaring
misunderstandings about why the Legislature did what it did with Tax
Increment Financing in the just completed legislative session.
TIF is a complicated subject and I do not pretend to understand it. What
I do understand is that a great many Legislators have been very upset
over a perceived misuse of TIF by many metro area cities. Specifically,
the complaints I have heard involve suburban areas - most notably
Burnsville, Apple Valley and St. Louis Park.
Over the years local governments have found that, instead of retiring
the TIF District after 10 years, it was quite attractive to "re-up" it
and treat the resulting revenues as "found money." These monies have
been used to fund pet projects that have frequently involved
beautification projects.
Legislators have been chagrined at the large loophole that has allowed
what many say is one of the many successful schemes cities have used to
thwart their efforts to reduce local property taxes.
The changes the Legislature made in TIF is just one of the ways to
deliver property tax relief and pre-empt the local units from stepping
in and diverting it for their own uses.
Now I know less about the NRP than I do about TIF. What I do know is
that the legislature was not targeting Mpls in a mean and vindictive
way. Rep. Wolf and McElroy were upset with Burnsville. Rep Ozmet is mad
at Rosemont. Rep. Abrams is really angry with the cities in his
district.
Consequently, I know for a fact that the Burnsville City Council is so
pissed that they could collectively bite through a box of 10 penny
nails. The projects they were funding with TIF monies includes the Heart
of the City development. It is now in peril because now they will have
to budget it through the general fund where it can't be hidden from from
those pesky citizens who like to ask a lot of stupid questions.
Duke Powell
Burnsville
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