Vicky writes:

> The pension fund paid $141 million for the Fifth Street Towers in 1996
(the
> best and brightest money managers no doubt!)  The same buildings are about
> to be sold for $110 to $118 million.  I wonder if the public employees in
> Oregon know about this debacle.
> 
> Hennepin County and Minneapolis got the shaft too because the buildings
are
> only valued at $82.6 million for tax purposes - quite a haircut if you ask
> me.  Kind of cute though that the public employees in Oregon are screwing
> the public employees in Minneapolis.

Hmmm....as any property owner well knows, the asking price is not the
getting price. So it would be difficult for Hennepin County to value Fifth
Street Towers at a selling price it hasn't received yet. (Wait until after
it's sold - then see what the assessment is!)

Also, as any property owner knows, their property is rarely assessed at the
amount it could be sold for. I'd be all for raising valuations across the
board, but you'd probably hear bleating from the property-rights crowd on
that.

Also, as any property owner knows, the market goes up as well as down. My
guess is that Fifth Street Towers, now one of the older office buildings in
town, has suffered with new office buildings coming on line.

But those new office buildings are NOT privately subsidized. So this is the
glorious free market working its magic, creating winners and losers. (And of
course, all the new buildings that are putting pressure on Fifth Street
Towers are new taxpayers into the city's tax base.) So there's no way that
anyone in Oregon is, ahem "screwing" Minneapolis - at least if you believe
in market forces.

David Brauer
Kingfield

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