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Work Finally Begins on US Bancorp Project

ST. PAUL, MN-The city comes through with a $12-million-plus bridge loan after the Minnesota Legislature's property tax reform reduces the tax increment financing aid by nearly $3 million.

By Jim McCartney | Updated on September 10, 2001

ST. PAUL, MN-Site preparation for a large US Bancorp office development began this month after property tax reform legislation in the state Capitol almost derailed the project. The bank’s $79-million West Side Flats project, across the Mississippi River from Downtown, faced an uncertain fate after the Minnesota Legislature reduced the money available for tax-increment financing, or TIF, by sharply cutting commercial property taxes.

US Bancorp’s plans were delayed almost four months, and the ensuing changes cost the bank project, under development by Minnetonka, MN-based Opus Corp., an estimated $2 million to $3 million in TIF funds.The city covered the shortfall with a bridge loan as part of a $12-million to $14-million TIF package approved last month.

“They were raring to go,” says Brian Sweeney, the city’s planning and economic development director. The Minneapolis-based financial services company will spend about $65 million for the project.

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