I'll stand corrected on the assessed value. I wrote that response late at night and that's why I prefaced my comments with "I beieve". As most property owners know the assessor valuation may not reflect the market. And as I commented there was another buyer ready to offer more, but on different terms. The Park Board obtained two appraisals. The lowest was for $3.2 million. The aquisition price was slightly less than $3 million. I'll repeat for hopefully the last time, the financing mechanism used for the purchase can't be used for operational expenses. The Park Board has a power unique among political subdivisions in the state--the ability to mortgage property. There are no new dollars in the 2003 budget for the Park Board's office space--hence the notion that programs will be cut is simply nice sounding rhetoric, but ill-informed rhetoric nonetheless. Rent and parking for the downtown office is $430,000 per year and going up. Prinicipal and interest payments to Wells Fargo on the mortgage at the new building are $256,000 per year. For less money the taxpayers are getting three times the space as renting. The asset is quite real and tangible and easier to liquidate than say city hall. As far as Jordan goes, it will most likely be better served with a new northside service center as will other north and eastside parks. -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Craig Miller Sent: Monday, August 26, 2002 10:28 AM To: Mpls Forum Subject: Re: [Mpls] Bob Fine Editorial - The Park Board's numbers are fishy
I took a little time to confirm what Vicky posted. She's dead on in all of her facts. List Members; It's time to start scrutinizing every little thing the park board does. It troubles me that they could mishandle such a large amount. What about the minor and mid size expenditures? The board is about to make a very unwise purchase. 1-2 million in poor decisions could keep the parks open for kids in Jordan or any other neighborhood for longer hours. We could hire that many coaches for basketball and little league. Kids could be playing all day seven days a week. Craig Miller Former Fultonite [EMAIL PROTECTED] > If you drive by the proposed "new digs" at 2117 West River Road N, you will > see a two story industrial building in a sad state of repair. > > Next door is Broadway Pizza, 2025 West River Road N. > > On the other side are two buildings: Doyle Lock at 2201 and Star Press at > 2225. > > I looked up the 2002 property tax valuations and tax bills for these 4 > properties. Here they are: > > 2117 (Moore Business Forms - New Digs) Valuation: $2,360,000 Property > Taxes: $98,823 > 2025 (Broadway Pizza) Valuation: $743,000 Property Taxes: $30,045 > 2201 (Doyle) Valuation: $605,000 Property Taxes: $24,175 > 2225 (Star Press) Valuation: $532,000 Property Taxes: $21,070. > > Brian Rice said that the "appraised value" of 2117 is $3.3 to $3.4 million. > Hmmmmm.....must have used the City Center appraiser. Having been in the > real estate business for over 30 years, I can assure Mr. Rice and the Park > Board that no one in their right mind would pay $3 million for that property > at this point in time. Commercial property values are dropping like a rock. > > Mr. Rice also said that "he believes" the City assessor carries a value on > it of $3.2 million. Wrong Mr. Rice: It's $2.3 million - and falling. > > As a comparison, I looked at a nice office building on the edge of the > loop - 825 S 8th Street. This property has two towers, one with 5 stories > and one with 12 stories. It sold last year (in the midst of the real estate > frenzy) for $3.06 million. > > It took me about 10 minutes to do my little exercise in due diligence. > > If the Park Board thinks it's getting a good deal - we've got a serious > competence problem. > > On the other hand, I've got about 4 acres of incredible land on the West > Bank - with breathtaking views of Downtown Minneapolis. I'd be delighted to > sell it to the Park Board - for say $10 million! Let's make a deal: That > way, Moore Business Forms and I can laugh all the way to the bank together. > > One more note: Renting office space is smart during times of declining > market values. Buying office space is smart at the bottom of a cycle - not > at the top. > > Vicky Heller > Cedar-Riverside (Work) > North Oaks (Home) > > _______________________________________ > 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 _______________________________________ 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 _______________________________________ 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
