Because the last thing that our City government wants is a default on the $62 million bond debt. Minneapolis now finds itself on the receiving end of a kinder, gentler form of extortion.
Target may have determined that their Nicollet Mall building is worth LESS than the $62 million debt? Remember that Target has NO financial risk because the Minneapolis taxpayers guaranteed payment of the bonds and interest. Worth noting is that the original bonds were NOT guaranteed by taxpayers, but when interested rates dropped, the MCDA re-financed the bonds (they received big fees too) and all of a sudden the taxpayers were on the hook. Remember this when real estate developers claim to have "pay as you go" bonds. Target bonds were pay as you go in the beginning too. If I accomplish nothing else on this List, I really want you to understand how dangerous it is for cities to lend money to, or borrow money for, specific businesses - whether taxable or tax-exempt. First, consider fairness. Do you really want government picking winners and losers? Second, consider the opportunity for corruption when directing massive sums of money. This is especially because no one in government monitors what is actually done with the money. Third, realize that the City can be held hostage by the recipient. What's the City to do if Target threatens to leave the Nicollet site and walk away from the bonds? Such an act is perfectly legal, though immoral. Brookfield tried this, but failed. Who got hurt? You did, not Brookfield. It's time that Minneapolis residents make the distinction between illegal and immoral. Do you really need some Court to tell you what's right and what's wrong? Vicky Heller Cedar-Riverside and North Oaks TEMPORARY REMINDER: 1. Don't feed the troll! Ignore obvious flame-bait. 2. If you don't like what's being discussed here, don't complain - change the subject (Mpls-specific, of course.) ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
