Agenda - Council - 06/23/1981 - Laserfiche WebLink

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NAIOP LEGISLATIVE REPORT NAIOP POSITIONS UPHELD IN 1981 MINNESOTA LEGISLATURE SESSION hlaiop was successful in gaining sup- port in the 1981 Minnesota Legis- lature session for maintaining two key real estate financing tools: TAX EXEMPT BONDS. Several bills were introduced in the ses- sion to restrict the use of tax exempt bonds and notes on commercial real estate projects. These proposals ranged from a sweeping elimination of tax exempt financing for afl commercial projects, including office buildings, to specific limitations for certain types of retail commercial uses. We are pleased to report that the house sponsored bill was defeated by one vote in the House and Urban Affairs subcommittee and subsequently by several votes in the whole committee. Our lobbyist Jim Erickson kept us up to date and NAIOP was h~strumental in defeating these proposed restrictions, which would have had severe economic consequences for our ~etry and for the development of new business facilities State of Minnesota. Personal visits and telephone calls were made to a number of key legislators and letters were written to committee members. We had an opportunity to personally discuss the issues with the committee members themselves at our first NAIOP Legislative Day at the Capitol Holiday Inn in St. Paul. Your letters and phone calls did the job -- thanks! TAX INCREMENT DEVELOPMENT FINANCING. A major move was made by key senate leader Mmv Hanson to restrict the use of tax increment districts in Minnesota. It is NAIOP's position that this development tool, properly utilized within the existing legislation, is a valuable one for the attraction of new industry to the state. As opposed to redevelopment tax increment districts, development tax increment districts are short-lived (8 - 10 years) and enable a municipality in cooper- ation with a developer to provide needed land improvements, including roads and utRities, to make land viable for new bust- pThis tool is needed when funds are unavailable from r sources to accomplish the improvements. We are pleased orr that this bill wa~ defeated in the Senate by 18--43. PROPERTY TAXES. We are also pleased to report that some small amount of progress was made on reducing the property MEMBERSHIP COMMITTEE NEWS The Membership Committee is pleased to announce the addi- tion of 5 new. members to our chapter. They are: · Jerry Scott St. Paul Companies · Dick Feerick R.M. Feerick & Associates · Milo Pinkerton Orville E. Madsen & Son · Veto Beck Vernon Beck & Associates · Norm Johnson Norman D. Johnson Realty We welcome each new member and look forward to your active participation in this great organization. The May, 1981 national membership list showed our chapter as having 134 active members. These new members make us 139 strong! tax assessment formula from 43% to 40% on the first $50,000 of of valuation on commercial and industrial property. While this is a small amount of dollars in relation to the valuations of the properties of most of our members, it is nevertheless the first reduction in this pemenlage that we can recall. This provision was included as a part of the Omnibus Tax Bill vetoed by Governor Quie on May 20. It is uncertain at this time whether this provision will be included in the eventual tax legislation to come from the special session of the legis- lature when it reconvenes. These financing tools are badly needed in Minnesota where we operate from a serious competitive disadvantage with a num- ber of other states who are able to attract business with not only special financing tools, bu: considerably lower taxes and labor costs. ENVIRONMENTAL Your association is currently work- ing with our Public Affairs Counsel, NEWS Dick Nowlin of Lerkin, Hoffman, Daly & Lindgren Ltd. to provide input on the final drafts of the new environmental impact statement regulations. We were successful, through a letter- writing and testimony program, in helping to delay the imple- mentation of the preliminary draft of these rules which would have been very detrimental to the development industry. SPECIAL The legislature and the governor SESSION are moving forward with a special session of the legislature to con- sider how to raise your taxes more than $500 million! We suggest that you write your legislator and the governor and make your viewpoints known. Do you feel that a tax increase is absolutely necessary, or would you like to see further cuts in spending, including cuts in funds allocated to welfare and education? Your input at this point will be heard. Lack of input by the business community will mean a tax increase for certain. In the past business has suffered at the hands of government by default. The choice to become involved is yours. Many thanks to the members of our Legislative Committee* for their excellent help in preparing our positions for the last year. The next meeting of the Legislative Committee will be June 10, 1981. - James C. Stuebner, Chairman NAIOP Legislative Committee *Bob Worthington, Bob Hoffman, Al Beisner, Boyd Stofer, Jeff Coult, Tom Davis, Greg Bradbury, Jim Campbell, Dave Weir, Jim Stuebner. 1981-82 DIRECTORY NOTES The Directory Committee Is Hnallzing the 1981-82 Upper Midwest Directory. To make this directory complete and accurate we need your helpl Please look at your 1980-81 directory {with the red cover): 1. Is the information about you and your firm correct? We assume the information in the 198~81 directory is correct unless notified otherwise. 2. Do you like your picture in the 1980-81 directory? If not, submit a p cture you would prefer or plan to attend the June 1§ breakfast meet- lng. A photographer w be avaUable. The cost of a new pictureis $5.25 3. Are there addit onal members o! your frm you wish listed in the directory7 Listing an additional member is $20.00 per person, exclusive of photograph. you are a new member and have not been listed in the 198CL81 ~rectory, or If you desire any of the changes above, please contact Dianne Orblson {631-7472) or Paul Johnson i374-8306) withinforma- t on about yourself and your firm. All changes, new li~tlngs, and paymen, t for non-key member listings must be in the DirectorY Committees hands no later than July 1, 1981. We appreciate your cooperatiotl. --Tony Hipp, Chairman NAIOP Membership Committee