Minnesota Taxpayers Association announces the release of its annual 50-state property tax comparison study for taxes payable 2011
State property tax rankings jump; commercial property tax rankings among nation’s highest
- Urban commercial rankings and relative tax burdens rose significantly in 2011 and now rank among the top five in the nation, their highest level since 2000.
- Both urban and rural industrial tax burdens increased relative to national averages. Industrial property taxes are 10% or more above the national average for all but the lowest valued parcels.
- Complete elimination of the statewide levy in 2011 would have dropped Minnesota’s urban rank 11 spots (from 5th to 16th nationally for a $1 million-valued commercial property and 11th to 22nd for a $1 million-valued industrial property).
- Regionally, Minnesota’s tax burdens are higher compared to all other Upper Midwestern states.
From the Public Policy Committee
Sen. Tom Bakk, Senate Minority Leader from Cook, MN, will be the guest at the next Public Policy Committee meeting. He’ll give his perspective on what’s going on at the Capitol.
You are welcome to join the conversation with Senator Bakk. Here are the details:
- Thursday, April 5, 7:45 – 9:00 am
- NAIOP’s offices at The Harrington Company (directions)
Want to attend? RSVP to Kaye Rakow at kayerakow@harringtoncompany.com.
House Deputy Minority Leader Debra Hilstrom was the guest at March’s meeting. She urges NAIOP members to get involved, and says that in her experience there has never been a time when “state government needed smart people as much as it does today.”
Read a synopsis of their discussion.
Cocktail Confessions – Volume 4
By Tony Carlson, Grandbridge Real Estate Capital, LLC
Welcome to the fourth installment of Cocktail Confessions. Cocktail Confessions is a publication which tracks down three industry veterans, feeds them some cocktails, and gleans answers to specific questions. Their answers are published exclusively on the Pulse and are meant to provide interesting commentary and insights for the NAIOP constituency.
If you have questions you’d like asked for future segments, please leave them in the comments section, below.
In this installment we are pleased to have Pat Mascia, current NAIOP Minnesota President and Senior Vice President at Duke Realty; Brenda Studt, Marketing Director of The Excelsior Group, LLC; and Andy Manthei, Director of Brokerage Services for KW Commercial Midwest. They were each asked the same three questions, and their responses are outlined below.
Question 1: What inspires you on a daily basis? What gives you the “fire” to tackle all the daily obstacles you face?
Pat Mascia:
High school and college tuition. Seriously, I enjoy the work that I do and people with whom I work. Every day presents a different challenge so I’m never bored. In addition to the thrill of competing, it’s the challenge of overcoming the obstacles that make the job fun and rewarding. (more…)
Tenant Rights When a Landlord Files for Bankruptcy
By Christopher Huntley, Attorney
A tenant that faces a landlord bankruptcy is put into the precarious situation that it does not know what its fate is. If the bankruptcy trustee accepts the tenant’s lease, the tenant must continue to satisfy its obligations under the lease as if no bankruptcy has occurred. If the trustee determines that it is in the best interests of the debtor’s estate to reject the lease, the landlord will no longer have an obligation to perform under the lease and the tenant will be deprived of essential services, its leasehold interest, and potentially very expensive tenant improvements. This type of situation makes it difficult for a tenant to plan its future and may be financially ruinous for tenants without deep pockets. A tenant is put into the position where it must decide if it should risk defaulting on its lease and enter into a new lease so that it will have a place of business if the lease is rejected, or should it wait around until the bankruptcy court determines the fate of the existing lease and risk having to find a premises in a shortened timeframe. Neither scenario is desired.
Rejecting the Lease
Generally, the bankruptcy trustee handling the landlord’s bankruptcy has the option to either accept or reject the tenant’s lease, but the court will only accept the lease rejection if the trustee demonstrates that that the rejection of the lease reflects a proper business judgment. Absent such a showing, the debtor must accept the lease.
The amount of time in which this decision must be made depends on the type of bankruptcy that the landlord has filed. For Chapter 7 liquidation cases involving residential property, the bankruptcy trustee must accept the lease within 60 days (or longer if the court orders a longer period) or the lease will be deemed rejected, and the trustee will generally allow the lease to be rejected unless the trustee believes that there is value in the lease. Tenants under Chapter 7 cases will at least know their fate fairly soon.
Residential tenants in Chapter 11 reorganizations are not in a better position as the trustee has no obligation to reject the lease until the point at which the reorganization plan has been adopted. This process can take months or years. A tenant, however, does not need to wait idly by while the bankruptcy trustee decides its fate. (more…)
Welcome new NAIOP members!
Thomas Becker, The Opus Group
DJ Heinle, C.M. Architecture
Raime Lavelle, Real Estate Recycling
Andrew Lechner, University of Minnesota
Nick Monson, Oppenheimer Wolff & Donnelly LLP
David Rau, Greiner Construction Inc.
Matthew Volpano, Investors Real Estate Trust
Aimee Zack, Braun Intertec Corporation
Project Profile | Doran Construction: The Edge on Oak
Currently Doran Construction is building a 6 story, 65 unit university housing project in the heart of Stadium Village near the intersection of Oak & Washington. The Edge on Oak was designed to meet the needs of today’s busy college student. The project features a hotel-inspired entrance lobby with designer finishes, on-site management and maintenance, the latest in security technology, and underground climate-controlled parking to assure the safety and comfort of its residents.
Doran demolished the existing theater structure that was on site prior to construction. Doran is excited to offer another option for student housing on the U of M campus.
One of the biggest challenges with the Edge on Oak site is the tight working quarters due to the lot lines being very close to a neighboring construction project. Doran Construction worked closely with the city in the review process of the project to avoid any future project delays.
Doran Companies is a family-owned local developer that strives to create and manage student apartments with an emphasis on convenience, safety and amenities to complement the lifestyle of the modern college student.
Best Practices: Christy Lewis
I reach out to a new prospect on all levels, including phone, email, Linked In, etc. Understanding that everyone works differently and has different preferences of how they like to communicate is key. This ensures a higher response rate based on the fact that they will most likely respond to one method and then you also become aware of their preferred method of contact.
Christy Lewis, Director of Business Development, Doran Companies
(952) 288-2037 | christy@dorancompanies.com
Member Profile: Chris Weirens
Chris grew up in Cottage Grove, Minnesota and graduated from Park High School in 2000. He received his Bachelor of Science degree from the University of Minnesota in 2004 majoring in Urban Studies. During his last year of study he interned with the City of Newport, Minnesota and after graduating was hired on full time as the Zoning and Planning Official. (more…)
Best Practices: Arvid Povilaitis
I have a number of direct reports throughout the country. Everyone is busy with their day-to-day activities managing issues as they arise. In an effort to stay focused on our goals and strategic in our thinking, I have a permanent time slot set aside with each person each week that is “sacred.” It sets aside a time to discuss anything we need to, as well as to catch up on the status of ongoing projects. These meetings are sometimes very brief, and sometimes quite lengthy, as warranted.
Inform your supervisor what you’re planning to do, when you’re going to get it done and then do it. No surprises.
Arvid Povilaitis, COO, Meritex Enterprises, Inc.
(651) 855-9708 | apovilaitis@meritex.com
Representative Melissa Hortman (DFL-Brooklyn Park) confronts Pat Mascia, NAIOP Minnesota President and Senior VP, Duke Realty Corporation, testifying before the House Tax Committee about how businesses create jobs.
Rep. Hortman: “So I just … think that the term ‘job-creator’ to refer to a business is wrong and offensive and I think we should talk about the true job-creators, are the customers.”
