[Mpls] Allina won't pay Property Taxes - City will lose $750,000 a year

[Eva Young]

At 07:53 PM 2/18/2004, Dave Jensen wrote:
>Good news for South Minneapolis!
>
><http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-18-2004/0002112344&EDATE=>
>

Allina isn't going to pay property taxes:

http://www.startribune.com/stories/535/4421709.html


Ultimately, Allina will move 950 employees to the site, with the move 
subsidized by an agreement from the city to forgo most property taxes for 
the life of Allina's 20-year lease.

<snip>


Collins said that because the Sears site is a historical redevelopment, 
which makes it more costly than other types of projects, Minneapolis knew 
it couldn't win simply on a cost basis against the competing projects. To 
become more competitive, the city agreed to give back most of the estimated 
$750,000 a year that Allina otherwise would have paid in property taxes 
annually for the length of its lease.

EY:  So Allina gets twenty years of no property taxes.  Unless Allina 
employees live in Minneapolis, the city doesn't get property taxes from the 
employees.

Allina also blackmailed the city to get them to support the 35W Excess 
Project.

Just how is this going to help the city?  Homeowners in the city get double 
digit property taxes increases.  Meanwhile the city subsidizes Allina by 
allowing Allina to be there tax free.


Eva Young
Near North
Minneapolis
eva at usucceed.com
Blog is up:
http://lloydletta.blogspot.com