I didn't make my point very well.  So I'll try again.

 

Other governments GET ANGRY and GET ACTIVE when their constituents are
ripped off.  They sue!  They scream! They pound on the table!  But not in
Minneapolis.

 

Minneapolis sweeps the fraud under the table and pretends it didn't happen.
The only way Minneapolis taxpayers find out is if Rochelle Olson at the
Strib happens to write about it, or via this blog.

 

Some examples:

 

Real Estate Developers:  Stone Arch Apartments told the City that their
project was worth $33.5 million (for the purpose of borrowing).  Within a
year or so, the Minneapolis tax assessor determined that the project was
only worth $19 million.  Between those two numbers is a $14.5 million fraud.
A lot of people of have gone to prison for lying to banks to get money.
When the City is the lender, no one prosecutes the culprits.  Same story for
Brookfield Development.  The Sears site is another one.  After so-called
open bidding, the City selects Ryan Construction.  Then, George Sherman
joins Ryan as the residential developer and the costs GO UP BY $59 million!
And not a peep from City leaders.  

 

Fannie Mae:  I am assuming that our pension funds were also invested in
Fannie Mae, though there is no way to find out because of the protective
barriers erected around that local scandal.  Why aren't the Minneapolis
pension funds suing to recover damages.  Apparently they've lost a fortune
in the stock market.  At the very least, the City should sue the fund
managers as detailed by Listmember George Janssen.

 

Target:  From memory, Target got $63 million downtown and another $20
million for its development on Broadway - which it recently abandoned.  When
Target sold Marshall Fields, it made over a ONE BILLION DOLLAR PROFIT.  I
think a good lawyer could get our money back.  About a year ago, The
Minneapolis Observer noted that the property taxes paid by the downtown
Target dropped from $10 million to $4 million.

 

Credit rating agencies like S & P:  I posted my rationale on this subject a
week or so ago.  We, the taxpayers pay them hefty fees to monitor and rate
our debt capacity.  They are simply not doing their job.

 

My opinion is that there is something very wrong going on in Minneapolis.
The City's financial reports are slow and unintelligible. The most recent
debt service figure we have is from 2003 - $144 million.  Interest rates
have gone up five times since then, but we won't even get the 2004 figure
until July if we're lucky.  It wouldn't surprise me if we don't get them
until AFTER the election.

 

Vicky Heller

North Oaks and Cedar-Riverside


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