Minn wrote: The tax credits that we sold for equity, gave us an outside investor partner, (not government funds) who shares in a portion of the project profits.
My Response: Tax credits are a way for taxpayers to purchase tax deductions. While it is true that investors purchase tax credits and become part owners in the project, their goal is (usually) to obtain tax write-offs greater than the amount they invest. A quick google of "section 42 tax credits" gives you lots of advice on how to pay less taxes via tax credits. My point is this: While government does not pay for the credits; society does receive lower taxes in the future. Minn wrote: the city created a "package" that was worth $18 million in rent savings over the next 30 years, cleaned up a polluted brownfield,and opened the east bank industrial riverfront to residential redevelopment. I think The City made a good investment, and certainly received a lot of value. My Response: It is hard for me to calculate the value of cleaning up the brownfield and redeveloping the East bank. But, there is certainly value there. I greatly appreciate Mr. Minn correcting my earlier post. Clearly I understood the MHFA website incorrectly. I apologize. However, my original three question still have merit: 1) Do projects like this provide more affordable housing or gentrify downtown? 2) Stone Arch's rents are limited to 50% & 60% of the Area Median Income. Those levels are higher than the metro average market rent. If we really want to create more affordable housing, we must focus on families that make 30% and less of the Area Median Income. 3) If a building's taxable value is lowered because of it's commitment to restrain rent, that appears to conflict with the value of TIF. I again, want to stress that I have no issue with Mr. Minn or Stone Arch. I believe they built precisely what they promised. My question is with government policy and, in particular, our affordable housing policies. Finally... Mr Eklund adds: Should the citizens see a change in policy is needed, the ballot box awaits this fall. My response: Given the political climate, no candidate is willing to speak against "affordable housing." Until we educate the people and our leaders, we will continue to get solutions that (I believe) miss the target. Regards, Bill Cullen. Whittier Landlord. -- No virus found in this outgoing message. Checked by AVG Anti-Virus. Version: 7.0.300 / Virus Database: 265.7.1 - Release Date: 1/19/2005 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
