Here are some facts regarding Hey City: The MCDA (now the City) bought the building from Hirshfield's (spelled with no "c") in 1995 for $500,000. Acquisition financing consisted of $50,000 loaned to the MCDA by 2 nearby property owners, an additional $50,000 down payment, and a $400,000 contract for deed (as Mr. Luce said).
The building was in turn leased to Hey City for 10 years at $11,041 per month, with options to extend. The acquisition and lease were approved by the MCDA Board on February 10, 1995. Real estate taxes have been paid by the Heys from the start of the lease. There was a guaranty by the Heys for an internal MCDA loan, but that guaranty has expired. Hey City was not "lured away" from 7 Corners. They were actively looking for a new and larger location in which to stage Tony & Tina's. And the 7 Corners landlord was not entirely privately financed. While the Heys estimate they've invested up to $2 million in the building, much of that investment has been to redo improvements specific to various performances, i.e., converting the space to allow the entire building to be used for Tony & Tina's, then later reconverting the space so each floor could be used separately & simultaneously for other shows. And I believe much of their investment went into furnishings and fixtures, such as tables, chairs, bar equipment, etc., much of which is not taxable. There are a number of other users such as the Fringe Festival that have sub-leases to use space in the Hey City building this summer and into early next year. We are making every effort to assure that these users will be able to use the space as planned. Bill Tetzlaff CPED Business Development 612-673-5168 -----Original Message----- From: Victoria Heller [mailto:[EMAIL PROTECTED] Sent: Sunday, June 27, 2004 11:40 AM To: Mpls Forum Subject: [Mpls] Hey City Stage stiffs Minneapolis Taxpayers - Scandalous! In 1995, the MCDA lured Hey City Stage from a privately owned building in 7 Corners to 824 Hennepin Avenue. I clearly remember the devastating blow this was to the West Bank because I owned a large apartment building within one block at the time. I also know the privately financed landlord who got the shaft from the City. Also, one of my part time employees worked for Sandy Hey and performed on stage in "Forever Plaid". I know quite a bit about this scandal. The Hennepin County Tax records show that Hirschfield's Inc. still owns the property, and "no sale information on file for this property." NO PROPERTY TAXES HAVE BEEN ASSESSED. Hey City Stage is shown as the taxpayer. The Minneapolis property records show Hey City Stage as the taxpayer and the CURRENT TAXABLE VALUE AS ZERO - SINCE 1994. The same report shows "estimated market value" of $268,000 for the building and $557,000 for the land. Further research on the City website shows a building value of $940,935 in 1995 when the building permit was issued. Subsequent permits were issued for remodeling worth $370,000 in 2000 and 2001, which would increase the building value to approximately $1.3 million, plus land. In other words, the current property value of 824 Hennepin should be around $2 million. Strib writer Rohan Preston states that "The city spent $900,000 to renovate the building. Hey said she has invested an additional $2 million." If Hey really invested an additional $2 million, she didn't apply for any permits. She didn't pay any taxes. Now, she is "terminating" her lease to the City. Too bad taxpayers - YOU GET THE FINGER. To calculate the TOTAL PUBLIC MONEY THAT WAS LOST ON THIS FIASCO, we must find out the following: How much did the MCDA pay Hirschfield's for the building in 1995? Why isn't this public knowledge like all private real estate transactions are? How much rent has Sandy Hey paid to the City since 1995? What are the terms of the lease to Hey City Stage? Are there personal guarantees? Is there a "termination clause"? Is Hey City Stage a 501C3 non-profit corporation? Why have NO PROPERTY TAXES BEEN PAID ON THIS PROPERTY? Do any theaters in Minneapolis pay property taxes? Please journalists, do your job. Find out these answers and share them with the public. Also find out how Ms. Hey "invested" the additional $2 million. Link to the Strib article: http://www.startribune.com/stories/1557/4847810.html Vicky Heller North Oaks and Cedar-Riverside REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
