Agenda - Council - 12/11/2012 - Laserfiche WebLink

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csm v PROPERTIES October 22, 2012 Jason Willett Director, MCES Finance & Energy Management Metropolitan Council 390 N. Robert street St. Paul, MN 55101 Dear Jason, The purpose of this letter is to support the proposed changes to the Met Council's SAC credit rules. Specifically, the SAC paid at any time on a property should be sufficient evidence for continuing credit. The current requirement of having to prove existing use, especially if the original SAC payment was before the seven year look -back period, is an unfair and an undue burden on business and redevelopment. When a property Is purchased, the information needed to "prove" past use for SAC determination, like a room -by room use map, was likely never completed, nor would it be available for future users because the past user would never have had a reason to prove something they already have. That culminates in a "guilty until proven innocent" scenario while ignoring the logic of working from past known SAC credits. The importance of being able to carry these credits forward is a key economic factor because redevelopments always struggle with cost, and SAC costs frequently make their presence known at the end of deals, and when each side is usually towards their negotiating breaking point. In conclusion, as representing a private real estate owner and developer, the proposed SAC credit changes have support from our company, and I would conclude by and large from the greater commercial real estate industry. Sincerely, Drew Johnson CSM Corporation Cc: Russ Mathis —City of Eagan Director of Public Works 500 Warl'ungton Avenue South, Suite 1O00 Minneipatis. Minnesota 554.15 telephone: (612)'395.7000 I-nx: (612) 395,7001 www.cfrncoip.nct