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Target Subsidy Thwarts Mayor's Re-election Bid

MINNEAPOLIS-The city will spend about $62 million in public subsidies to build a 185,000-sf discount store Downtown, which reportedly has cost Minneapolis Mayor Sharon Sayles-Belton her party's endorsement.

By Jim McCartney | Updated on June 11, 2001

MINNEAPOLIS-A $62-million subsidy for a new Target store Downtown has provided grist for controversy that led to an incumbent Minneapolis mayor losing her party’s endorsement in her bid for re-election, according to a front page story in theSunday edition of the Minneapolis-based Star Tribune newspaper. Under the headline “The $62 million Target,” the newspaper reports that the new store being built on Nicollet Mall between Ninth and 10th Streets will cost about $160 for each resident of Minneapolis.

The total cost of the 185,000-sf store and adjacent parking ramp is $164.5 million; the developer is Minneapolis-based Ryan Development. Most of the subsidy is providedthrough tax increment financing. Minneapolis Mayor Sharon Sayles-Belton blamed theheavy subsidy, which rose steadily in estimates starting with $16 million in 1996, for her inability to land the Democratic endorsement in her bid to be re-elected mayor this fall.

“The left wing of the DFL is saying, ‘We’re not happy with Target. We’re not happy with Target. We’re not happy with the progress you’ve made on affordable housing. We’re not going to give you the endorsement’,” Sayles-Belton said after the convention, according to the story. None of the candidates won endorsement.

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