--- Victoria Heller <[EMAIL PROTECTED]> wrote:
> This of course is BEFORE all of the downtown defaults beginning to
> rear
> their ugly heads (City Center, Target Center, etc.)  You see, when
> the MCDA
> arranges financing for the multi-millionaire developers, repayment of
> those
> debts is optional - because of course the taxpayers have co-signed
> all of the mortgages.

[TB]  What is the basis for suggesting these defaults.  The city
already owns Target Center, bought it as part of the deal when the
Timberwolves were sold in the early to mid 90's.  Target Center debt IS
city debt, the only question is if it will cash flow or not.

> If Minneapolis residents had any idea how much they will have to pay
> in
> property taxes over the next few years, there would be a mass exodus.
>  The
> flight from oppressive taxation has in fact begun.  What people refer
> to as
> "white flight" is really the avoidance of goofy government and its
> corresponding costs.

[TB] But, after decades of population decrease our population increased
during the 90's.  We don't even have the highest tax rates in the metro
area.  We may have "goofy government", but your generalizations are
suspect.
 
> Dean Zimmerman mentioned on television last week that Minneapolis has
> 11% of
> the State's population, but ALREADY pays 19% of the tax burden.

[TB] The 7th ward pays something well over 75% of the property tax in
Minneapolis, primarily the downtown business core.  That area also
generates a significant amount of income and sales taxes.  Its an
interesting statistic, but not all that meaningful.

> Commercial property taxes in Minneapolis are already four times
> higher than
> San Francisco ($8.73 vs. $2.38 per square foot, year 2000.)

[TB] Granted commercial property taxes are high in Minnesota compared
to most other states, partly because there are only a couple of states
that tax different types of property at different rates.  To make a
meaningful comparision you need to look at all state and local taxes
not just one piece.

> The per capita income in Minneapolis has dropped from $24,000 to
> $17,000 since 1998.

[TB]  Says who?  What is the most recent year for which data is
actually available?

> If Standard and Poors used the correct number to calculate our
> allowable
> debt load (Tax Capacity rather than Assessed Market Value) - the
> Minneapolis Bond rating would drop like a rock.

[TB]  Standard and Poors along with Moody's are the calculations that
matter.  There's concensus amoung them as to what the rating is.  Looks
here like they probably know what they are doing.

> I wouldn't waste much time discussing a Stadium - or anything else. 
> THE MONEY IS GONE - AND THEN SOME!

[TB]  I'm not convinced that the economics of baseball work, if they
did the owners of baseball would probably be building their own
stadiums.  However, to have a rational public policy discussion we need
to look at real facts.



Terrell Brown
Loring Park

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