The real heroes are people like Paul Klodt, Bill Cullen and many others who provide affordable housing with NO government subsidies, NO developer's fees, NO credit enhancement fees, NO bond underwriting fees, and NO harm to the Minneapolis taxpayers.
Readers need to understand that, after all of the mumbo jumbo and rationalization, Minneapolis donated $300,000 per year, for 25 years to Minn's project. That's the way TIF works....the Developer gets the cash, the taxpayers get the debt. Real estate developers have abused this form of grant so many times that Minneapolis now FORFEITS almost $70 million per year (28%)of its property tax collections to pay debts for developers. Mr. Cullen made the point that Minn's "affordable" rents are HIGHER than current "market rates". So what did Minneapolis get? More expensive apartments and a $3.6 million debt, plus interest. Was it worth it? My opinion is NO. [Minn] It is not uncommon during lease-up for new construction properties to take up to three full operating years to reach stabilized tax value. Stone Arch first occupied in September 2003. [Heller] The $19 million tax value (compared to the $33.5 million loan value) is for taxes payable during year TWO, 2005. The tax valuation for year THREE, 2006, won't be posted on Hennepin County's website until April. I marked my calendar to check in April. [Minn] The tax value of the property is determined by a combination of income stream, replacement cost and market comparison. [Heller] Those same variable are used to determine "loan value" too; unless government arranges the financing. [Minn] As I am no longer a public figure, you should consult an attorney about your obligations regarding false and slanderous statements in a public forum. Your next mistake may be actionable. [Heller] Make my day! A lawsuit would be the fastest way to audit the Stone Arch money trail. I've posted this before: When using public money, financial records and tax returns should NOT remain private. I'm working with the Legislature on this issue too. [Minn] The $3,600,000 of Tax Increment is a junior mortgage, essentially serviced by a part of taxes we created when the building was built. [Heller] Once again in plain language: Minn got the cash, Minneapolis taxpayers got the debt, plus interest. Vicky Heller North Oaks and Cedar-Riverside REMINDERS: 1. Be civil! Please read the NEW RULES at http://www.e-democracy.org/rules. If you think a member is in violation, contact 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 Civil City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[email protected] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
