Agenda - Council - 03/22/1983 - Laserfiche WebLink

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NAIOP LEGISLATIVE REPORT OVERALL REAL ESTATE POLICY The luncheon sponsored by the Coali- tion for Sensible Land Use on February 16 provoked considerable conver~ation about the coordination of the various groups interested in overall real estate policy in the metropolitan area. Some expressed the idea that there may very well be limits to any given individual's time and ability to participate in a broad numberofsuch groups. Others saw the need for specialization and the resulting concentration of effort. A further problem is the wide range of individuals who areinlerested in liIT!ited Breas rather than in real estate in general. Governor Perpich's plan for solving PENDING Minnesota's financial crisis will in- INCREASE elude an average increase of 19% in IN THE the property tax. The last time the PROPERTY TAX State met with such a threat, commercial and industrial buildings were treated unfairly an'd forced to pay a considerably greater share of the increase than residential property. Marfield pointed out that at that time no one protested to the State about the inequity of such unequal treatment. Al Beisner reported the same attitude was expressed at a recent meeting hosted by the Brooklyn Center Chamber of Commerce for several key legislators and members of the Senate Tax Committee. In fact. one Senator was of the opi~ion that Minnesota will never be able to compete with South Dakota and should give up trying. Stuebner pointed out that taxes per sq. ft. on warehouse properties are now beginning to reach 50% of the net rent per sq. ft. Bradbury commented that the Legislature seems sincere about doing something about worker's comp this year but remains oblivious to the real cause Lehind the deficit. Stuebner and Beisner reported that another manufacturer is moving his technical staff of12-15 people to Sioux Falls, although he himself will retain his corporate offices here. This individual explained his move on the basis that it will cost only $4.50 per hour for laborin South Dakota lfS opposed to $8.50 here. He is of the opinion that combined unemployment and welfare benefits correspond to an hourly wage of $7.50 per hour. Perpich's new budget will increase school aids about 15%. It was felt that such increases are unnecessary, and it may take a great deal of adverse publicity to make the State aware of the new, and unnecessary, buildings for such districts as the Osseo Schools. MINNESOTA JOBS Stuebner reported that the Minneapolis Chamber of Com. merce has now formally endorsed Minnesota JOBS. He reviewed the qualifications of a particular individual from Washington, D.C., whom he felt would be a good Executive Secretary for the organization. The St. Thomas report was made available on a printout basis to the committee last falL However, its publication has been delayed. Beisner and others complimented Channel 11 for the excellent program entitled "Exodus" which appeared on February 11. Stuebner will call to see if we can get a copy of the film for our own use. Several members quoted leading lobbyists at the Capitol who are or the opinion that there are too many groups orfering too many solutions resulting in simple hewilderment. Therefore, it was suggested that the various real estate groups ought tojoin together in 8 consistent legislative effort. In spite of the maze of programs, Stucbner pointed out that Minnesota JOBS remains the only one with specific targets for concrete action. . Someone from the Chamber Task Force did spend several days at theCapitol in order to determine the actual costoftherecommenda. tions of Minnesota JOBS. Perhaps the Legislature could be convinced to enact the program if companies now in the State would pay the difference in taxes between present law and the improved regulations proposed by Minnesota JOBS into a trust fund as a sort of insurance. If tax revenues did not increase as predicted by Minnesota JOBS within the five year term then these funds could be used to offset the resulting deficit. If on the other hand, the economy did improve and the financial problem was solved, then these funds would be returned to the original payer, less some small margin to provide for greater promotion of the State and economic development in general. . Bradbury pointed out th.at the nature of business itselfis changing. The advent of the computer is rendering obsolete the high bulk warehouse. Hi tech employment needs fewer people and smaller spaces. As a result, we should do something to support that old industrial base that remains efficient in order to support the same level of employment to which the State had been accustomed_ For example, Litton has moved a major warehouse to South Dakota and expects to save $8 a unit. _ MARCH 3 BREAKFAST Itis hoped that Governor Perpich will attend the meeting to be held at 7:30 a.m. at the Alumni Club in the IDS Center. Invitations are being mailed out now. Six members of the committee agreed to call two pages each of the directory. The next meeting of the Public Affairs Committee will be held at 7:30 a.m. at the offices of Marfield 'Investments on March 16. NEXT MEETING -Jeff Coult, Secretary NAIOP Legislative Committee LUGS 10- MEMBERS Thiscolumn has been incorporated into our newsletter to enhance communicalions between members and local units of government, and the following article is our first. We hope both our members and the local units of government use this column to its fullest. TheCity of Gold en VaHey lIRA is soliciting developer proposals for the first phase of Golden Valley CBD redevelopment. Phase I of the Valley Square Redevelopment Project includes two areas comprising a total of 38 acres of land within the total 70-acre , redevelopment project area located at T_H. 55 and Winnetka Avenue North. The two Phase I areas are a consolidated commer. cial area of approximately 32 acres and an office development area ofapproximately6 acres offering opporluniti;s for business office, office condominium and commercial/retail development. The Golden Valley HRA intends to acquire the redevelopment sites and resell at a cost write-down to the successful developere. Proposal deadlines are May 17, 1983 forthe office area and May 31. 1983 for the commercial area. Copies of the Prospectus prepared for developers are available from Mr. Mike Miller, Planning and Redevelopment Coordinator, (612) 545-3781. -Michael J. Mile. Newsletter Chairman /