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John do you mind if I send this to the list?  I was asked to pass it
on if you should respond.
 
Michael Fratto
Career One Stop
390 North Robert Street
St. Paul, MN  55101
651-296-3574
Fax  651-297-2381
[EMAIL PROTECTED]


>>> "John Mannillo" <[EMAIL PROTECTED]> 01/28/2004 3:54:59 PM
>>>

Mike,
This was the World Trade Center parking ramp deal towards the end
of Norm
Coleman's first term.  In exchange for a promise by the owners of
the World
Trade Bldg. to create a world class entertainment center with 14
movie
screens, restaurants etc., the city would expand the 500 car ramp
and give
all the rights for more than 20 years to Principal Mutual, the
owner of the
building.  This was good politics in that Coleman leveraged this
deal into
the Lawson project and ultimately the new Arena and campaigned on
his
development prowess for another term of Mayor.  After he was
elected, we
found out Principal never signed an agreement to do anything and in
fact
moved out of town after selling the Building for about $50,000,000
or
$10,000,000 more than without the parking rights to the ramp. 
Principal
however kept ownership of the income from the ramp which is really
an
amazing deal considering it is property-tax free since the city
held the
deed to the property.  After the term of the bond, Principal can
walk away
without having to rebuild a 20 year old parking ramp.  The only
reason you
don't see parking ramps developed in the last half century is they
don't
make money on their own.  Not after property taxes and structural
repair.
I remember Mike Harris saying at a Council meeting that even so,
this was a
good deal for the City because we needed the parking.  Even if this
was so,
(now our ramps are 35% vacant) why not build the ramp and have the
city
retain ownership?  This is just one of the many deals done under
Coleman's
watch in Downtown, none of which have ever generated any property
taxes
other than a load of debt.

John Mannillo
Downtown and Highland Park



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