Rochelle Olson wrote in today's StarTribune:

The city also has two remaining loans to Brookfield, including a 1987 deal
on the "north parcel" of Gaviidae that gave Brookfield $7.5 million. The
total loan balance, $17.4 million (including principal and interest), is due
Sept. 30.

The city doesn't expect to see that money, but is unable to seize the
property because a Brookfield affiliate holds the primary mortgage of $30
million on the building that is currently valued at $7 million.

Translation for the mathematically challenged:

In 1987 the "north parcel" of Gaviidae was worth at least $37.5 million ($30
million first mortgage to an "affiliate" of Brookfield, plus the $7.5
million second mortgage that "we" gave them.

In 2002 the building is worth $7 million.  That reflects an 81% drop in
value.  Hmmmmmm......

Questions for the MCDA.......

Who valued the building currently at $7 million?  The tax assessor?  A
Brookfield affiliate?  An MCDA appraiser?  Where's the appraisal?

Who valued the building in 1987 to support $37.5 million worth of debt?
Where's the appraisal?

Who is the Brookfield "affiliate" that holds the 1st mortgage?

Why has other downtown real estate, including mine, doubled in "taxable
market value" over the past FIVE years?

If this isn't FRAUD, we can all expect 15 years worth of very large property
tax refunds from the City of Minneapolis.

Too bad the FBI is busy with life and death issues right now.  Wait a
minute, I'll bet the IRS would like to take a close look at this one.  Gotta
run.

Vicky Heller, North Oaks

Rochelle Olson's entire story is at
http://www.startribune.com/stories/462/2848711.html


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