On Dec 16, 2004, at 4:12 PM, Victoria Heller wrote:
As Minneapolis loses its business tax base, residents make up the
difference. As Minneapolis reduces commercial tax values, residents make up
the difference.
Vicki, you may have done this before, but could you please cite a source that total Minneapolis commercial values are decreasing? I couldn't find a figure in a scan of the web. (There are lots of figures for the reduced share of taxes paid, and for reduced tax rates - but not overall commercial valuation.)
Commercial rate cuts and the wiping out of residential limited-market-value caps - both state actions - are key factors (possibly bigger ones) than market valuation shifts. To cit only one ignores reality.
As Minneapolis turns formerly
commercial property into residential property, commercial taxes drop and
residential taxes increase - at a lower rate. Think Condomania.
Can you cite examples? Lots of condos are being built on parking lots or drastically underused spaces. Anecdotes are not proof, but a few places that are or soon will undoubtedly produce more property taxes include:
* The 39-story Carlyle condos, being built on the site of a parking lot and a vacant FDA low-rise office
• The 26-story Skyscape site that held two one-story buildings.
• The 20-story Elliot Park development being built in Horty-Elving's parking lot.
• The new Village Green developments at Aldrich and Colfax in Lyn-Lake - replacing a former Perkins and a parking lot.
• The Mill District developments, replacing vacant historic buildings and parking lots
• 1730 Clifton Place, replacing a ministry center that probably paid zero property taxes.
• The 301 Kenwood Pkwy condos that are worth MUCH more than the low-rise office building that was there before
• Groveland Ave. condos on Loring Park parking lots.
• ...and many more.
Terry Fiedler wrote in the Strib "While the Minnesota manufacturer with a
70,000 square foot building saw taxes go down to $124,646 last year, a
company with a similar building in Iowa or Wisconsin would have paid about
half as much, $66,285 and $64,428, respectively." Commercial property taxes
are STILL a lot higher in Minnesota (including Minneapolis) than other
locations. In part, this is why businesses are leaving the City and the
State.
Huh? Have you seen our employment rates compared to our neighbors? Highest in the Upper Midwest - even through the recent recession, even faster than places with "low" property taxes. This argument has never held water. But at least Montana has better mountains!
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