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June 1998 Minnesota Journal

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June 1998 Minnesota Journal Two views on tax-krcrement financbg. - ' June 16,1998 Next novernor faces critical state issues Can Minnesota's next governor skilled workers, highly motivated, asks runway fold a map? by Dana Schroeder who can function as well as any in the world, particularly as it relates The ability to pass that "common the commentators produced a long to information technologies," he noise help sense" test is one thing Marcia list of critical issues that deserve said. by Martin J. Kirsch Keller Avner, public policy director attention: workforce skills, educa- fnr the Minnesota Council of Non- tion, tax and spending policy, wel- "Most of the workforce will have Eastern Richfield is getting a new its, would like to see in the can- fare reform, transportation, afford- to be retrained," Krueger said, neighbor and it's not arriving qui- ~iuatesvying to be the state's next able housing, health care, tech- "since most jobs will require infor- etly. chief executive. "Can they prove nology access, crime and livability mation technology skills." He said they have common sense?'she and management and leadership the state will need almost 8,800 Indeed, when the new north-south asked. style. new technology workers for each runway makes its home on the of the next 10 years, including western edge of the Minneapolis- The Minrzesota Joz~malasked Workforce skills. Rick Krueger, replacement workers. And even St. Paul International Auport, there Avner and six other public policy president of the Minnesota High- that figure, he said, undercounts the will be no need for knocking on thought leaders to reflect on the Tech Association, called the skill of need. since those are traditional east Richfield residents' doors to issues that should be addressed dur- Minnesota's workforce the number technology jobs, like computer pro- signal the arrival. The thundering ing the rest of the gubernatorial one issue facing the next governor. grammers or people who work for noise of jet engines barreling down campaign. Besides common sense, "We must make sure we have Continued on page 2 the runway and the shaking and rattling of windows, walls and objects in homes will herald a new, unhappy era of low-frequency Fate of municipal board raises questions ground noise for this community. The Minnesota Munici~alBoard. by Philip H. Wichern Should anything be done? Or A new north-south runway is part the nation's first statewide quasi- should the board just rest in peace? of the Metropolitan Airports Com- judicial agency overseeing munici- articles by state Senators John Hot- mission's (MAC) response to pal incorporations, mergers, annex- tinger (DFL-Mankato) and Jim Municipal board history growing congestion at the Min- ations and other boundary changes, Vickerman @FL-Tracy). The board was created in 1959 to neapolis-St. Paul International Air- was an innovation championed by apply statewide standards to port, as MAC executive director the Citizens League in the 1950s. Interestingly, these two legislators municipal boundary-setting deci- Jeff Hamiel reported in his article Now it appears the board is headed were apparently instrumental in sions. Those decisions had previ- in the April 14 Minnesota Jouml. for what could have been a nearly adding the following sentence to ously been made by county com- Richfield recognizes the impor- private burial. the 1997 Community Based Plan- missioners, upon application of tance of the airport to the econom- ning Act: "The Municipal Board municipalities, townships or 100 or ic vitality of the region and has not The Minnesota Journal examined shall terminate on Dec. 3 1, 1999, more residents in those townships. opposed the construction of the annexation issue and the and all of its authority and duties The result had been "municipal runway. However, the city . .. ...micipal Board's work several shall be transferred to the office of boundary chaos" and proliferation believes the MAC should provide years go in an Oct. 18,1994, arti- strategic and long-range planning." of small municipalities, particularly noise mitigation in order to protect cle, "Annexation debate: How That sentence and other legislation in the Twin Cities area, where one Richfield from the devastating should state cities grow?'and in became Chapter 202, which passed new municipality contained 43 res- noise impacts of the community. June 18, 1996, pointlcounterpoint and was signed into law a year ago. Co~ltinuedon page 5 Continued on page 4 June 16,1998 MINNESOTA JOURNAL Moving beyond the Minnesota Miracle-without a crisis Another view: Original intent of tax-increment use lost There is a crop of major city may- dement or downright suspicion ors that New Republic magazine among taxpayers. In a recent meet- The article on the accelerating rate House Tax Committee said, "We returned to the regular tax rolls as 3. The use of TIF should be limited has referred to as the "new progres- ing hosted by the Twin West -, ,of qrowth for tax-increment are stuffing the developers' pockets soon as sufficient tax increment has to'recovering the cost of physical sives." They have taken cities & by Lyle Wray chamber ofcommerce on j , I\ ncing(TF)intheMay19 with money." been generated to pay all the oblig- improvements to the property in the crisis-over burning rivers, crime, ed state mandates to local govehr ~l&inesotaJournal explained the ation of the district, regardless of TE districts. crumbling school systems-and asphalt plants and one public works that our core cities have been large- ments, state and local elected off% possibility of abuse, misuse and The following resolution was passed the original term of the district. begun to turn them around using a employee for every three hundred ly protected from the dangerous cials and members of the business overuse by cities using TIF for at several DFL precinct caucuses The net tax capacity of TIF districts variety of strategies. Featured citizens-not counting an addition- crises faced by many around the community discussed the thicket of redevelopment. The original intent of cities statewide averaged 6.1 per- prominently in these turnarounds is al contingent to do park services. country. stateAocal relationships. There was of using TIF only to finance rede- cent in 1997. Richfield's was 11.53 a good dose of competition in pub- This staffing level is multiple times plenty of frustration about who velo~mentof blihted areas has "It is evident in Richfield that tmlevies have percent. With several new TIF dis- lic services. that of comparable mature subur- The question for the next governor pays for what and how much gets bee; lost for the Lost part. Many tricts created recently and if those ban communities. Snow removal is and for Minnesota's citizens is this: spent. One person, in an un-Min- of the citizens of Richfield believe been raised because sf TIE" being considered by the Richfield Some of these mayors are writing not done on a 24-hour basis and Absent such a crisis, how do we nesota fashion, stomped out of the this is the case. They also believe HRA are carried out, some resi- books to share their experiences. road surfaces are in some cases- propel reform in systems which room. Despite a number of false that with increments being passed dents estimate TIF districts could Indianapolis Mayor Steven Gold- shall we say-not the best. may otherwise be captured by sta- starts over the years, we need to get on to the developer, schools, cities and the DFL district convention held 2. The tax capacity of the original reach 25 to 30 percent of Rich- smith has produced The 21st Centu- tus quo interests? This should be serious about sorting things out. and counties will have difficulty earlier this year and we intend to base value of a TIF district which field's tax capacity. And it appears ry City. Mayor John Norquist of For many of the "turnaround" cities front-and-center on the radar scope providing needed services. It is present it to the legislative task force yields tax revenues to fund the there is no method presently to Milwaukee has a soon-to-be- around the country, a precipitating of the next governor and of the Third, we need to pursue efforts evident in Richfeld that tax levies meeting this summer to study the ongoing expenses of the city, coun- locally control it! released book. Both--one a Demo- crisis galvanized action and provid- Legislature, in which representation to encourage local governments have been raised because of TIF. problems in the state TIF laws: ty and school district during the life crat and the other a Republican- ed permission-albeit accompanied from suburban communities will to measure the quality and effec- At a recent Richfield meeting, of the TIF district should be Don Priebe CfomrRichjield tell tales of driving down costs by the necessary political courage soon make up the majority. tiveness of their public services. state Rep. Dennis Ozment (R- 1. Tax-increment financing districts increased at the same rate as all the mayor) and Gordon Anderson, dramatically using competition. to act-to take some strong steps to This measurement is now required Rosemount), member of the should be ended and the property other property in the city. Richjield reform. A burning river and city Here are three suggestions: in order to receive a small propor- In both cases, there was no whole- bankruptcy, for example, can have tion of local government aid, but sale rush to "privatize." But sound a way of clearing the decks and First, we need to spend smarter on we need to think more carefully steps were taken to put public mobilizing public insistence on local government aid in Minneso- about some next steps.
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