Terrell wrote: > Walking from lunch at home back to the office a few minutes ago, I > noticed the headline of one of the free weeklies mentioning a downtown > grocery store. A quality grocery store downtown is not a new topic. > > Not far into the article, guess what? The store needs a city subsidy > of $8-12 million. Why is it that everytime someone suggests building > downtown, they want us taxpayers to chip in?
Just real quickly: I wrote this piece in Skyway News. I'm glad Terrell noticed it. I just want to add a little context for those who haven't seen it yet (and check out www.skywaynews.net if you haven't, it may not be posted yet but will be soon). The MCDA and Opus (the developer Lunds is working with) are chewing through various scenarios. No deals have been cut and no final numbers arranged, although we're headed there (the story's point was that details are coming together). The $8-12 million, at this point, is a rough estimate for one site. There are two others now actively being considered. The numbers could certainly change. Steve Cramer of the MCDA gave me the agency's best current guess based on a site on the east side of 11th to 12th St. S. and Hennepin. One reason the number is so high is that there's already a lot of development on that block (Hendlin Communications, Harmon Glass), making it more costly to buy out and producing less TIF. The agency is also looking at 2 parking lots on either side of Hennepin between 10th and 11th. One reason those sites are considered is that the subsidy needed to put them there might be less than at the 11th-12 site. The housing estimate was Steve's estimate of how much affordable housing money might be available, and my math (dividing the 30 affordable units proposed in the lastest version of the plan, which again is not final, by the $4 million). I have heard from other affordable housing advocates over the years that this level of subsidy is not uncommon, but I did not have a chance to verify this for my story. Side note: if $4 million buys 30 rental units, that means RT's plan to spend $16 million of up-front NRP money would produce 120 units? That does seem low. Again, my story is kind of a "progress report." I'm glad it's generating discussion, but I don't want people to think anything is a "done deal." Also, the TIF going to the development is "project-specific," unlike the Target TIF that roped in tax revenue from other, unrelated development. That means that if all the new taxes get loaned to the project, no current taxes are spent, but no new taxes will flow to the general fund for several years from the new project. Amazingly (for me), I am neither publicly endorsing or opposing the grocery deal, either in the story or in this post. David Brauer Managing editor, Skyway News _________________________________________________________ Do You Yahoo!? Get your free @yahoo.com address at http://mail.yahoo.com _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
