My goodness, I received a deluge of e-mails overnight wanting to know
why I wasn't allowed to build my 102 unit apartment project in 1995.

First, I discovered that the MCDA (without my knowledge) had signed a
contract in 1988 which promised to give my land to George
Sherman/Riverside Plaza.  I had to spend almost nine years in Court to
reverse this illegal act on the part of the City.  The MCDA falsely
(and knowingly) claimed that it had "easement rights" over my
property.  Once they made that claim, even though it was a lie, there
was a cloud on my title.  In other words, I couldn't borrow against
the land, or sell it, or do anything with it until I could PROVE in
Court, that I owed the land free and clear of any encumbrances.

Now, I can finally develop my land, but the market has changed.  There
is a glut of overpriced apartments in Minneapolis, construction costs
have soared, and people are leaving the City.  In all investments,
timing is everything.  It's not what, but when that matters.  I'm no
longer willing to invest in Minneapolis - the political antics are too
dangerous and costly.  To me, it would be equivalent to buying Enron
stock in 2000, which I did by the way - yikes!.  (A sidenote:  The
bookkeeping in Minneapolis make the Enron boys look like amateurs.)

Understand that it costs a lot to hold real estate that doesn't
generate income.  (Minneapolis taxpayers don't even know how many
millions they have lost by owning Block E and the Sears site for
decades each.)  For private property owners, there are taxes,
insurance, snow removal, lawn care, among other operating costs.  Each
month that a development is delayed - increases the cost of the
eventual project.  Jumping through hoops in Minneapolis, just to get
approvals and permits, takes YEARS.  In addition to the bureaucracy
downtown, one must contend with the little fiefdoms called
"neighborhood groups" run by bullies with no real jobs (based on
personal experience.)

Here is another arms length example.  An acquaintance of mine has been
trying to open a night club, Baja Riverside, for two years.  During
that time, the property owner has been paying $12,000 per month in
debt service plus taxes, maintenance, legal fees, architectural fees,
and exorbitant construction costs.  He told me that he's sorry he ever
started the process.  Two reasons for the delays:  Liquor license and
George Sherman, who owns the other half of the block, wants this man's
land.  It took almost a year to get the liquor license (even though he
already has one in Minneapolis) because:  GET THIS.......Council
Member Zerby pandered to the Muslim neighbors at Riverside Plaza who
"don't approve of alcohol."  Never mind that a bar has been at that
location for 100 years and that there are 14 other bars in the
vicinity.  In Minneapolis, religion apparently trumps property rights.
This past year was spent fighting off a Sherman/Marchant attempt to
get a key piece of land next to the LRT station.  This battle
culminated a couple of months ago with Council Member Zimmerman
offering to "withdraw his objection to Sherman's parking variance
appeal" IF the property owner sold the key piece of land to Sherman.
You decide what to call that!    The end of the story is that the
property own can finally proceed with his night club, but he will open
it more than $300,000 in the hole.  Contrast this with Montana where a
liquor license costs $20 and you can open your business the next day.

There are lots of these awful stories in Minneapolis - but the
citizens don't know about them.  Utterly disgusting.  Which is why I
am headed west to one of the "free states."  I'm sick of the smarty
pants college boys trying to run my life and my business.......can
hardly wait to join a few cowboys and ranchers in Wyoming.  For
reference, here is a gorgeous property that's for sale:
http://www.rockriverranch.com/.

Hee Haw!

Vicky Heller
North Oaks

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