NAIOP applying pressure through op eds

May 16, 2013 at 10:53 am

House and Senate tax bills misuse “fiscal disparities”
“Office absorption rates for the region have just turned positive in 2011-2012 after showing a net loss in occupancy from 2008-2010. The word used by those who understand this market is ‘fragile.'”

“Legislators are proposing to subsidize one competitor in a way that removes much of the risk for that developer and does not require the accountability to the public that should come with such a large subsidy.”

“What kind of policy would make office owners, who may already have challenges with vacancy, subsidize a competitor that might actually take one of their existing tenants?”

“From the Citizens League perspective,” this is “a bad policy.”
Bob DeBoer, Project Director, Citizens League
St. Paul Pioneer Press, Thursday, May 9, 2013

Tax break for MOA is a hard sell for some
“It’s an appealing funding source at the Legislature because the money doesn’t go through the state budget. But it worries others. In its 42-year history, opponents say Fiscal Disparities never has been used to subsidize this sort of private development, but if the Mall of America opens the door, others will surely follow.”

“But who draws the line of who’s worthy of a subsidy?”
Bob DeBoer, Project Director, Citizens League
St. Paul Pioneer Press, Monday, May 6, 2013

Taxpayers asked to subsidize Mall of America expansion
The Mall of America is looking to double in size and taxpayer money could be used to cover some of the costs.
KARE 11,  May 6, 2013

Mall plan riles CRE leaders
“Requiring businesses to finance their competitor’s projects through an increase in property taxes is a serious misuse of the pool.”
David Kordonowy, President of Steiner Development & 2013 President of NAIOP Minnesota

“Fiscal disparities was never set up to be a funding mechanism. … It wasn’t meant to be used like TIF as a funding mechanism. We just think that’s bad policy.”
Pat Mascia, Duke Realty, NAIOP board member and past president
Finance and Commerce, May 7, 2013

You, every other business property owner, and your tenants should be concerned
Fiscal disparities again a target at the Minnesota legislature

As the demand for more local revenue sources has grown, proposals to tap the program for favored local public or private projects have grown more frequent and more creative. In 2013, the fiscal disparities program will redistribute approximately $565 million worth of tax base levy dollars around the metro area, according to the program’s administrative auditor and the Department of Revenue.
Minnesota Real Estate Journal, April, 2013

Entry filed under: Public Policy | Government Affairs.

Job Growth Is the #1 Driver of Commercial Real Estate FROM THE CAPITOL


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