[Mpls] $69 million of City taxes in 2003 went to DEVELOPERS, NRP

[Victoria Heller]

The September 28, 2004 issue of "Minnesota Journal" published by The
Citizens League contained a basic course in Tax Increment Financing for
those who want to know the truth about why Minneapolis has no money.

The total tax revenue for the City in 2003 was $250 million (rounded for
simplicity).  Of that, $69 million DID NOT GO TO THE GENERAL FUND.  Instead,
it was "captured" (DIVERTED) by 103 TIF Districts in Minneapolis.  See the
table on Page 7....
http://www.citizensleague.net/blogs/homepageblog/archives/final_Journal_9-04
.pdf

I notice that St. Paul doesn't even appear on the Table.....maybe that's why
St. Paul hasn't raised property taxes for 13 years.

The article is good as far as it goes, but it neglects to point out how much
TIF money ends up in developer's pockets and how giving TIF money to
HAND-PICKED INSIDERS destroys competition in a free market.  

The jobless recovery in Minneapolis is self-inflicted.  Not many businesses
can afford to pay the tab for a decade of multi-million dollar handouts to
developers, corporations, and DFL party activists.  Many businesses have
actually reduced their payrolls - just to pay their spiraling property
taxes.

Vicky Heller
North Oaks and Cedar-Riverside