Archive for January, 2012
A Message to Governor Dayton and Minnesota’s Legislators
“As we listen to our tenants every day, one message remains constant: costs really matter to them…and new, friendlier policies regarding business property taxes and regulation would go far in assuring their success and speeding Minnesota’s economic recovery, especially with regard to employment.”
Pat Mascia, Senior Vice President–Minneapolis/St. Paul Operations, Duke Realty, 2012 President, NAIOP Minnesota
NAIOP Minnesota introduces its 2012 president and public policy team, along with its legislative priorities. Read more.
Metropolitan Council offers grants for Transit-Oriented Development (TOD)
The purpose of this new program is to assist Livable Communities participants to implement transit-oriented development that demonstrates how increasing density around transit stations can reduce dependence on automobile ownership, vehicular traffic, and associated parking requirements that would otherwise be necessary to support a similar level of more traditional development, and encourage more transit ridership. Building on prior regional public investment in its transit infrastructure, the Metropolitan Council is requesting proposals for development sites that are located in the following areas:
- Within a DEED designated Transit Improvement Area (TIA) or area eligible for TIA designation.
- Within a one-quarter mile radius along designated high frequency local bus lines.
- Within a one-half mile radius of a bus stop or station on designated high-frequency express routes.
Maps of eligible areas
More information about TOD grants
Applications for this first funding round are due February 15, 2012.
Impact of Market Value Exclusion on C/I Property Tax Burdens in the Metro Area
The average change in C/I property taxes payable is 1.71% or $1,842 for the hypothetical $3,000,000 C/I property. Increases range from a low of $930 to a high of $4,900. On a percentage basis, increases range from 0.88% to 4.51%.
These numbers are based on the following assumptions:
- No levy increases over payable 2011.
- No changes to distribution of tax burden due to market-based valuation changes across property types.
Gary Carlson, director of intergovernmental relations for the League of Minnesota Cities, said the effects of the switch to the market value exclusion system will vary from city to city. But in general, he said, communities with many lower-value homes and small commercial-industrial bases will see the biggest tax shifts to commercial properties.
More on the Impact of the New Market Value Exclusion Law
“As a result of this exclusion, a bigger share of the property tax burden in many cities is falling on owners of office and retail buildings who in turn pass along the tax increases to their tenants.”
Pat Mascia, Senior Vice President–Minneapolis/St. Paul Operations, Duke Realty, 2012 President, NAIOP Minnesota
Read the full article from the Star Tribune, January 6, 2012.
“What NAIOP is proposing in terms of legislation requiring cities of a certain minimum size to apply object code breakouts to their spending reports is really key.”
Quote from Representative Keith Downey, House District 41A, Edina.
Attend your precinct caucus on February 7, 2012.
Have you found yourself complaining about the quality of candidates running for office?
Have you found yourself complaining about the direction your political party is taking?
Precinct caucuses are meetings organized by Minnesota’s political parties to begin the process of selecting candidates for the 2012 election and policy positions to shape the party platform.
Who can attend a precinct caucus and what do attendees do at these caucus meetings?
Will Pension Plans Run Out of Money?
A new research report using GASB proposed metrics reveals risks of “depletion”
“…The burden of proof now empirically resides with the elected officials and these plans’ officials to show that they have a strategy in place (or at least underway) to put their house in order.” The Minnesota Teachers fund is included in the list.
This demonstrates the need for greater transparency in local budget reporting in Minnesota.
Read Girard Miller’s article from Governing.com, December 8, 2011.
A report released in November suggested that Hennepin County fix a “piecemeal” system of watershed management in order to simplify the current water governance structure.
The Minnesota Center for Science, Technology and Public Policy (CSTPP) made the following recommendations to the Hennepin County Board of Commissioners on November 3, 2011:
- Consolidate the 11 existing watershed districts and water management organizations into 4 divisions based on hydrological boundaries.
- Grant taxing authority to all water organizations in Hennepin County.
- Improve coordination of water management planning between watershed districts/water management organizations and cities.
- Implement coordination, oversight or enforcement between watershed organizations and the state.
For NAIOP Members who have asked for clarification on the new Medicare tax on “unearned” net investment income
Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new tax will affect some real estate transactions, the National Association of Realtors (NAR) has prepared materials to clarify the new tax.
Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000.
NAR frequently asked questions
Examples of different scenarios in which this new tax applies
Martha Nevanen inducted into the Midwest Real Estate News Commercial Real Estate Hall of Fame
Martha Nevanen: Always on message for Marquette Real Estate Group
By Dan Rafter
Each December, Midwest Real Estate News runs its Commercial Real Estate Hall of Fame issue, higlighting the careers of the industry’s top professionals. We also run a selection of these profiles on our Web site throughout the year. Here’s a look at the career of one 2011 Hall of Fame inductee, Martha Nevanen with Marquette Real Estate Group.
Reporters seeking last-minute interviews on commercial real estate trends know just how well Martha Nevanen does her job. So do the commercial real estate professionals at such companies as RJM Construction, United Properties and Cushman & Wakefield/NorthMarq.
As vice president for marketing and communications with Marquette Real Estate, Nevanen works daily with reporters, editors and many of the biggest names in the commercial real estate business, all to make sure that the companies that make up Marquette are able to effectively tell their stories. When you see an official from NorthMarq Capital quoted in the Minneapolis Star Tribune or one of the top producers from Cushman & Wakefield/NorthMarq profiled in a trade magazine, the odds are good that Nevanen made the interview happen. Full article
