As always there is more to the history than first meets the eye.  Nicollet
Lake is historic in many respects. It was one of the first three tax
increment districts authorized in Minnesota, and was if I remember
accurately, a second choice location after Chicago Lake. An origianl plan
for redeveloping the Chicago Lake area was resisted by the Minneapolis Model
Cities Planning and Policy boards. Judy Challman then chair of the board
lived in one of the house slated to be taken, and in those days it was a
cause celeb to not loose any more single family houses, particulalry to
commercial and/or high density housing. But I digress. Minneapolis
approcahed the legislature to secure authority to try Tax Increment
Financing (TIF) which until then was not legal in Minnesota. Many members of
model cities opposed the plan and tetified against it at the legislature,
myself included. Our opposition was primarily based on our opposition to the
Chicago Lake plan. I remember my testimony well though, as some of th
theoretical flaws I warned against eventually came true albeit 30 years
later. The legislature did however approve the concept and granted
Minneapolis the right to try three distircts.  With oppositon strong at
Chicago Lake, the city decided to focus on another Lake street node,
Nicollet and Lake. They sold bonds and acquired and demolished porperty in
preparation for a planned development.  1971-3 was a recession period with
high inflation reaching 5-6% a year terrifying the markets, and resulting in
an economic slowdown that doomed the original development plans.
Unemployment was running much higher as the baby boom boys and the new
movement of the baby boom girls also wanting jobs overwhelmed the economies
ability to provide new jobs.  The proposed development stalled due to lack
of hard tenants and reluctant lenders. No development equalled no money to
pay the TIF Bonds. The city found itself in the position of having to use
general fund dollars to support what had become a fiscal black hole. The TIF
experiment at Nicollet and Lake was hemoraging big time. The post office
built a new building in the district, not helping at all with the increment
but providing some new vitality. My recollection of the timing of the other
minor developments is a bit shaky.  A plan to build a grocery store at 28th
and Lake was stopped by Kieth Ford and I just as we were elected to the
council that I now in retrospect suspect may have been a mistake. We opted
to ksupport keeping industrial jobs there in the form of the still existing
if under new ownership meat cutting plant. Insted we wanted to keep
development on Lake Street.  Various efforts and plans were made to
stimulate interest in the Nicollet Lake district. It wasn't unitl Kmart and
its developers stepped forwars that anything viable appeared.  The Whittier
Neighborhood and I strongly opposed the closing of Nicollet. I predicted
that 1st Avenue and Blaisdell would become Kid Demoliiton zones and greatly
feared that the balance of Nicollet would become desolate. Unfortunately for
Nicollet Ave, we lost at the city council on a 11-2 vote, with Tom Johnson
of the 2nd ward and Myself opposed. The reason for city council support had
nothing to do with backroom politics. It was a matter of the fiscal drain on
the general fund pulling money from around the city to plug the Nicollet
Lake hole with no other solution in sight. The other two TIF districts by
the way were Loring Park, perhaps one of the greatest of Mineapolis
Development success and the less successful City Center. These were
experiments and as a group they tuaght many lessons. TIF can be good, bad
and indifferent. Got to run to support the CWA workers  - no time to proof. 
 
Earl Netwal 
Nokomis East
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