Over the past year or more, we've all heard about the precarious budgetary
situation in Minneapolis-- the deficit situation with internal services
accounts; the massive TIF subsidies to large business developments
(accompanied by no increased tax increment going to the general fund for
decades- if ever), while growing demands for basic city services go largely
unmet, placing upward pressure on property taxes to maintain the status quo.
And now we're being told that there's problems with Gavidae (another TIF
investment), and it will likely cost taxpayers more. Businesses leave the
city, and downtown vacancies rise as new TIF-subsidized structures reach
toward the skyline. MCDA's cash-flow is in jeopardy-- beware of new
strategies as the house of cards crumbles! We are now to the point where
property values (owner occupied and rental housing, commercial and
industrial) are increasing dramatically every year and forcing everyone's
taxes/rents/leases up on a regular basis. Add to this the need to maintain
essential city services and reduce the deficits mentioned above, and it's
easy to see that property tax rates will be rising as well, right along with
property values-- a real double whammy for local residents and business
owners! What's a person to do?
The shortage of affordable housing in Mpls. and throughout the metro region
has been well documented; the costs to remedy the situation, who will pay,
and where the units will be located are not well documented however, and
remain in large part unknown at this point in time. We're talking big bucks
though. Minneapolis cannot solve the affordable housing crisis alone. As
documented in the Hollman Settlement, it is a regional problem that requires
a regional solution.
However, Minneapolis bears the brunt of the affordable housing crisis in
that the shortage is causing dramatically increased rents throughout the
city-- this is in addition to the property value increases and increases in
tax rates and fees we will be seeing more of in coming years! Add to this
the increased costs of energy we will likely experience for a couple of more
years anyway. Meanwhile we see basic city services being cut and fees
increasing. Public works is continually told to get leaner and meaner. The
city is strewn with trash; roads, curbs and gutters are in disrepair and
graffiti is ever-present. City streets aren't adequately plowed and parking
is severely restricted, with hundreds of cars being towed every night.
Potholes destroy our vehicles.
There is much poverty in Minneapolis. Average test scores in too many of
the city's public schools are depressingly low-- for reasons we're all aware
of. The public school infrastructure is in need of repair. City taxpayers
have passed large referendums (hundreds of millions of dollars) to maintain
small class sizes and to build a new downtown library in an effort to
improve our fair city... adding to our property tax woes. People are
leaving the city for perceived greener pastures beyond our borders-- the
city population has been in decline for years. There is increased talk that
soon only the rich and those too poor to leave will live in Minneapolis...
the middle class will leave seeking a lower cost of living and better public
schools. Perception is reality! Self-interest makes/drives people to take
action in their best perceived self-interest. And now Russell tells us he
too will be relocating.
What we have here is a failure to communicate! A lack of leadership in our
fair city. We need leaders who will stand and identify the priorities that
can be addressed successfully with limited property tax revenues-- and more
importantly, those priorities that can no longer be sustained with property
tax revenues! We need leaders who will stand and identify social problems
as such and seek appropriate county, regional, state and federal funds that
are earmarked for alleviating social problems. The city cannot solve all of
societies problems with it's limited stream of property tax revenues and
fees, etc.-- the residents/taxpayers cannot afford it! We need strong new
leadership in Minneapolis. We need elected officials who will sell the city
without increasing taxpayer liability in the process. We need leaders to
negotiate win-win solutions that enlist both the public and private sectors
to strengthen the urban core. We need leaders to organize and lead the
larger county/regional units of governments to accept common
responsibilities and help solve common problems.
We need dramatic change in the politics of Minneapolis. The status quo is a
burden around our neck and a unacceptable compromise. We either make
positive change that requires hard choices, or we accept a deteriorating
quality of life and an urban death spiral by default. Good thing it's an
election year. We have the opportunity to elect a new Mayor and several
city council members. We need to ask candidates the hard questions and not
accept the usual meaningless jargon as a response. There are only so many
iterations to this cycle... it's time for change! Before it's too late.
Michael Hohmann, Principal
Michael A. Hohmann and Co. (MAHCO)
4100 Ewing Ave. So.
Minneapolis, MN 55410-1021
612-922-1490
http://www2.visi.com/mahco
~Market research, financial analysis, business plans and writing~
> -----Original Message-----
> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of
> j burns
> Sent: Friday, February 16, 2001 9:00 AM
> To: [EMAIL PROTECTED]; [EMAIL PROTECTED]; [EMAIL PROTECTED]
> Subject: Re: [Mpls] Peterson Moving
>
>
> I don't understand how the Minneapolis Planning department can constantly
> lament the declining population and profess to want to "grow the
> city" when
> there aren't enough housing opportunities or adequate school
> curriculums and
> teachers to deal with the poor and low income people and/or non-english
> speaking populations that are already here; and then moan to the suburbs
> about Minneapolis' inability to provide affordable housing on it's own.
> Which is it?!
> JBurns
> Cleveland
>
> >From: Fran Guminga <[EMAIL PROTECTED]>
> >To: [EMAIL PROTECTED], [EMAIL PROTECTED]
> >Subject: [Mpls] Peterson Moving
> >Date: Thu, 15 Feb 2001 16:34:45 -0600
> >
> >I am sad to hear that one of Mpls Issues most prolific and thoughful
> >contributors, Russell Wayne Peterson, is moving out of the city.
> I hope he
> >continues to contribute to Mpls Issues. Mpls needs young, energetic
> >activists to return it to the glory days of my youth when it was the most
> >livable metropolitan area in the Midwest. But the voices of reason are
> >constantly drowned out by too many myopic ones who have no
> understanding of
> >what makes a great city. I fully understand Russell's reasons for leaving
> >and wish him well. As I recall, his will now be the third family on his
> >block to leave the city this year.
> >
> >My Third Ward Council Member, Joe Biernat, has a retort he often
> uses with
> >constituents who disagree with him, "If you don't like it, why don't you
> >move?" Apparently, a lot of solid middle class folks are taking
> his advice.
> >One wonders if we can realistically expect these new suburbanites to
> >support
> >state or county initiatives to help the core cities after we have "shown
> >them the door" with a crumbling infrastructure and a real estate
> market too
> >pricey for families.
> >
> >Fran Guminga
> >Bottineau, Ward 3
> >* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
snip_______________________________________________
> >Minneapolis Issues Forum - Minnesota E-Democracy
> >Post messages to: [EMAIL PROTECTED]
> >Subscribe, Unsubscribe, Digest option, and more:
> >http://e-democracy.org/mpls
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