--- David Brauer <[EMAIL PROTECTED]> wrote:
> I've also heard some talk about the Met Council (or state?) pondering a
> sale-leaseback of the sewer system??!!!
> True? Does it include Minneapolis sewers?
<snip>
> David Brauer
> Kingfield



Below is some more information on that topic posted by Dan Dobson to the 
mn-politics-national
list.

The referenced article includes the following Minneapolis-specific comment:
Minneapolis City Coordinator John Moir said officials there were not interested in the 
lease
proposals because they feared taking the sewers off the city's balance sheet as an 
asset would
damage Minneapolis' credit rating.

Regards,
Jason Stone | Hale


* * *


To: [EMAIL PROTECTED]
CC: Send an Instant Message "Dan Dobson" <[EMAIL PROTECTED]>
From: Send an Instant Message "Dan Dobson" <[EMAIL PROTECTED]>  Add to Address BookAdd 
to Address
Book
Date: Sun, 30 Nov 2003 16:02:53 -0800 (PST)
Subject: MP-N: Plan to Build a New Stadiums by selling Community Assets

A little while ago I posted about a plan that may
arise in the near future to sell community assets,
i.e. the Saint Paul Regional Water System or the Met
Council's Sewage Treatment System to finance a new
Twins and/or Vikings Stadium.

An excellent article appeared last week in the Pioneer
Press last week about these very complex
lease/leaseback arrangements and their questionable
legality. See the full story at:
www.twincities.com/mld/twincities/news/7342632.htm

======================================================
Tue, Nov. 25, 2003  

Cities considering complex lease deals
BY PATRICK SWEENEY
Pioneer Press

Since early summer, about a dozen Minnesota cities,
including St. Paul, have been considering a New York
investment firm's pitch: Lease public sewer systems to
private companies that will use the systems for tax
deductions, and get significant payments up front.

The proposal, which could yield about $30 million for
St. Paul, is attractive to cash-strapped cities.
Burnsville, Rochester, Eagan and Duluth are
considering it as well, and other public-private
infrastructure deals have surfaced elsewhere in the
country.

But a U.S. senator from Iowa recently assailed the
lease arrangement as "good, old-fashioned tax fraud,"
and some Minnesota officials are raising questions
about it as well.

The complicated financing plan calls for cities to
lease the systems to private companies, then
immediately lease them back and continue operating
them as the cities always have.

www.twincities.com/mld/twincities/news/7342632.htm

Dan Dobson
Summit Hill - Saint Paul

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