From Steve Brandt's article in yesterday's Strib:
"The city provided several million dollars in up-front assistance for the rehabilitation of two milling buildings and the construction of a third between them.
Despite grossing $50 million in condominium sales from developing three buildings overlooking St. Anthony Falls, a developer said it probably hasn't made enough money to pay the city under a profit-sharing deal.
The condos along S. 2nd Street in Minneapolis sold for a cumulative total far higher than the $27 million that Brighton Development estimated they would fetch before it broke ground in 1998. At least 10 units sold for more than $1 million each, and one topped $3 million."
Link to the article: http://www.startribune.com/stories/462/4245464.html
Chris says: I guess I need to take "new math" or "creative accounting" or "greed ethics." The city was supposed to receive 25% of any profits exceding $4.4 million. The sales were far higher than the expected $27 million, a number no doubt agreed to by the city as an amount that would net the city some profit. And yet, despite exceding the no-doubt optimistic forecasts, there is no money to pay the city its share?
Sounds like Brighton "lost money on paper" but made a fortune in hard cash through the use of creative accounting. It's just another case of the city giving away taxpayer money to favored developers.
Chris Johnson Fulton
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