Nov 2 Program on the Office & Industrial Markets – Insights to create tomorrow’s opportunities


Get on the list for the November 2nd headline program on the Twin Cities’ office and industrial markets.

The Office Panel includes: Doug Fulton, Emily Nicoll, Jill Rasmussen, and Brent Robertson
Some of the topics:
– More room to run in this office cycle? (Is the show over??)
– Tenants are going urban (both in downtown AND in the suburbs).
– Where, oh where, is new office development?
– Have we repositioned everything?
– Big changes in deal-making terms

The Industrial Panel includes: Casey Hankinson, Brent Masica, Adam Mullen, and Colin Ryan
Some of the topics:
– From an afterthought to a competitive advantage
– If you have $1 as an industrial tenant, where does it go?
– How capital markets and user requirements have changed
– The impact of companies and labor and how MSP compares to the national market

Guthrie Theater, 818 Second Street South, Minneapolis
3:00 pm Presentations, 4:30 pm Reception


Email NAIOP Minnesota or call the office at (952) 928-4647.

October 17, 2017 at 11:59 am

2017 Awards of Excellence Project Winners

Congratulations to the project winners at NAIOP Minnesota’s 34th Annual Awards of Excellence!

See the complete list of 2017 project nominees.

See the detailed list of winners along with their full project teams.

October 10, 2017 at 9:46 am

Oct 17 Breakfast featuring market insights from Kim Culp, Mark Rauenhorst, Bill Katter & Russ Nelson

Have breakfast with your commercial real estate colleagues on October 17 to enjoy a discussion and insights from KIM CULP (Chairman & Partner, The Excelsior Group), BILL KATTER (President & Chief Investment Officer, United Properties), RUSS NELSON (President/Principal, NTH) and MARK RAUENHORST (President, Marren Properties).

Tuesday, October 17
Golden Valley Country Club
7:45 am: Breakfast
8:00 – 9:15 am: Discussion

Details and Register Online

NAIOP: Where Minnesota Commercial Real Estate Meets

October 6, 2017 at 12:51 pm

Governor, legislative leaders square off over veto of legislative funding

On September 8th, the Minnesota Supreme Court ruled that Governor Dayton’s veto of the legislature’s biennial appropriation was a legitimate and constitutional use of his executive power. However, the issues surrounding this veto are far from resolved.

Governor Dayton vetoed the legislature’s appropriation in an effort to convince legislative leaders to return to the bargaining table on the omnibus tax bill, which had several provisions that the Governor opposed. One of those provisions eliminated the automatic inflation escalator on the statewide business property tax – NAIOP Minnesota supports eliminating the escalator, which puts state tax increases on autopilot.

Legislative leaders have argued that Governor Dayton could have vetoed the tax bill in its entirety as a method of continuing negotiations. However, the Legislature linked funding for the Department of Revenue’s operations to the tax bill, and Governor Dayton chose to preserve funding of the department’s services. By vetoing only the appropriation for legislative functions (called a line-item veto), he sought to get the legislature’s attention without risking the funding of any state agency.

Legislative leaders also argued that a veto of all funding for the legislature violated the principle of separation of powers. It was clear that the Court had some sympathy for that argument, but was unclear whether they believe the judicial branch has the authority to settle a battle over legislative appropriations. The Court ordered Governor Dayton and legislative leaders to enter mediation to attempt to resolve the dispute, and asked the parties to offer further information and arguments to help settle the different separation of powers issues.

A successful veto doesn’t reinstate the automatic escalator for statewide property taxes and Governor Dayton hasn’t publicly opposed another provision of the tax bill that reduced the impact of the statewide tax on smaller commercial and industrial property. However, any effort to reopen the tax bill puts both laws at risk.

Clear as mud? Stay tuned.

September 14, 2017 at 2:08 pm

St. Paul, Woodbury court cases on municipal fees also impact NAIOP members

Earlier this month, a Citizens League task force released a report suggesting that the City of St. Paul should explore a PILOT (Payment-In-Lieu-Of-Taxes) program for non-profits with substantial real estate holdings. A Minnesota Supreme Court decision struck down St. Paul’s expansive assessment system for infrastructure improvements, and Mayor Chris Coleman announced a projected property tax increase of nearly 24 percent to replace assessment fees. The Citizens League report recommended that St. Paul explore a voluntary PILOT system for non-profits such as health care facilities and higher education, which are exempt from property taxes but pay assessment fees. Kaye Rakow, former public policy director for NAIOP Minnesota, served as co-chair of the task force.

While NAIOP is concerned about the size of the St. Paul property tax proposal, we also strongly support more transparency in municipal taxing decisions and more limited use of municipal fees.

In a case involving the City of Woodbury, a district court judge ruled that an assessment fee on builders to pay for road improvements outside of a residential subdivision was illegal under state law. The Minnesota Court of Appeals will rule as soon as this month on the appeal of that decision, which is one of several decisions in the past two decades limiting the expenditures that cities can include in assessment fees on new development.

Either issue could be addressed at the State Capitol in the upcoming legislative session.

September 14, 2017 at 1:43 pm

State Budget: Repeal of the Statewide Business Property Tax may be at risk

NAIOP Minnesota members and the industry are potentially impacted by the court case that has continued the budget debate between Governor Dayton and legislative leaders. Following a district court ruling that the Governor’s veto of the two-year funding for legislative operations was unconstitutional, the Governor acknowledged that his veto was intended to bring legislative leaders back to the bargaining table on several issues in the tax bill, rather than a concern about funding. The judge’s decision stated that vetoing the legislature’s appropriation because of an unrelated objection violates the principle of separation of powers.

For you and our industry, this court case is important. Governor Dayton has targeted the recent repeal of the inflator for the statewide business property tax as an item he wants renegotiated. Repealing this inflator, which previously placed the state business property tax on autopilot, was an important legislative victory for NAIOP Minnesota and other business organizations in 2017. Ultimately, an appeal means that the Minnesota Supreme Court is likely to make the final decision on this court case.

August 17, 2017 at 12:44 pm

PILOT Discussions Continue in St. Paul

PILOT stands for “payment in lieu of taxes,” a method used by local governments to receive revenue from organizations that are exempt from property taxes, yet still receive the benefits of local services.

One year ago, the Minnesota Supreme Court ruled that right-of-way assessments in St. Paul were taxes, not fees, meaning that non-profit organizations were exempt from the assessments. In response to a potential loss of tens of millions of dollars in tax revenue, city leaders have been exploring ways to use PILOT or SILOT (services in lieu of taxes) to replace the lost revenue, rather than immediately increasing the property tax levy or cutting the city’s budget.

NAIOP Minnesota works tirelessly to keep local governments accountable for property tax levels or increases. The Supreme Court decision has been a welcome victory for transparency in local taxation. Efforts by the City of St. Paul to find a reasonable and public solution to this revenue issue have improved taxpayer understanding of how local budgets work.

In August, a Citizens League task force is expected to complete its work analyzing potential solutions for the City of St. Paul. Kaye Rakow, formerly having championed NAIOP Minnesota’s public policy initiatives, is co-chairing the task force.

August 17, 2017 at 12:39 pm

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