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 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.
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