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Mayoral Rivals Differ Over Development

MINNEAPOLIS-Challenger R.T. Rybak advocates merging city agencies, administrative cost cutting and private involvement, while incumbent Sharon Sayles-Belton advocates a new property tax levy and citizen input.

By Jim McCartney | Updated on November 02, 2001

MINNEAPOLIS-On the eve of the Minneapolis mayoral election, one of the biggest issues looming for the winner is how to approach community development in the aftermath of the historic property tax reform that the Minnesota Legislature passed last year. While challenger R.T. Rybak would consolidate city functions, cut costs and raise more private money for affordable housing efforts, incumbent Sharon Sayles-Belton advocates an additional property tax levy and more citizen input and coordination between city departments and development initiatives.

Shortly after the legislation passed, the Minneapolis Community Development Agency warned the sweeping changes would severely shrink funding for community development programs throughout Minnesota with Minneapolis especially hard hit because of itscommitment to use development resources for neighborhood revitalization. MCDA officials estimated they would lose $27 million a year tax increment generated by current and future tax increment financing districts. This means the city will lose up to $27 million in MCDA revenue each year — about $226 million over the next 10 years. The effect will be felt most severely in neighborhoods while large commercial development projects typically generate enough revenue to pay off their debts.

This shortfall compounds an anticipated financial challenge facing the MCDA, in which it had planned to use $20 million a year for 10 years in TIF dollars to finance Neighborhood Revitalization Program through 2009.

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