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NAIOP Minnesota's 2013 Property Tax Talking Points
For Minnesota’s thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...

--COSTS MATTER--

...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate.

Read more
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“As our members talk to their business tenants across the state, the message they hear over and over is loud and strong: Costs matter...and among the costs they must deal with, Minnesota’s business property taxes continue to be the single major expense over which they have absolutely no control.”

David L. Kordonowy
President/CEO, Steiner Development
2013 President, NAIOP Minnesota


Read more

The Amazing Power of a Penny: Ongoing Support from Current Contributors
"The Penny Per Square Foot Fund has proven itself over the years since its start to be one of the best investments we can make..."
~Pat Mascia, Duke Realty Corporation

"Without NAIOP’s Penny Per Square Foot Fund our tenants would still be paying the highest property taxes in the nation."
~Stew Stender, Stewart Capital Partners

Read more

A Message to Governor Dayton and Minnesota's Legislators
“As we listen to our tenants every day, one message remains constant: costs really matter to them…and new, friendlier policies regarding business property taxes and regulation would go far in assuring their success and speeding Minnesota’s economic recovery, especially with regard to employment.”

Pat Mascia, Senior Vice President–Minneapolis/St. Paul Operations, Duke Realty, 2012 President, NAIOP Minnesota

NAIOP Minnesota introduces its 2012 president and public policy team, along with its legislative priorities.

Read more

NAIOP Minnesota's 2012 Property Tax Talking Points
For Minnesota’s thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...

--COSTS MATTER--

...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate.

Read more

Q: What does greater transparency in government spending have to do with property taxes?

A: Everything!
It's time to unveil the drivers behind the rising cost of public services and the demand for increasing local tax revenues.

Read more

Transparency Proposal Talking Points for NAIOP members

Transparency Proposal FAQ

Transparency Proposal Press Release, Initiative to Spur Greater Transparency in Local Government Spending Launched by NAIOP Minnesota

Ultimately local government spending drives property tax levies and, in turn, property taxpayers’ bills. This is the most influential piece of the property tax system. It is also the most important and—in many ways—the most challenging element for taxpayers to understand.

The place will be filled with new people.
Referring to the state capitol on January 4th, the opening of the 2011 legislative session.

Who are these “Newbies”?
In all, an amazing 60 new legislators—24 new Senators and 36 new members in the House.

To introduce them to NAIOP Minnesota and our issues, we have sent to each of them, along with their returning incumbent counterparts this publication. NAIOP’s story and priorities are told through the words of our own members and our public policy team leaders. Read our latest publication.

2010 Comparative Tax Study
An urgent message to our state’s policymakers … Minnesota’s job-creators are eager to go back to work!

NAIOP’s 23rd annual Comparative Tax Study shows that the property tax burden under which Minnesota businesses labor tops all other states in our study but one.

NAIOP President's Message to Minnesota Business Leaders and State Policymakers:
"Supporting Minnesota's economic recovery and assuring future job growth in our state will require policies that restore business confidence and assure investors, risk-takers and employers."
-- Doug Fulton, Senior Director, Cushman & Wakefield of Minnesota, Inc., 2010 NAIOP Minnesota President

Click here to read the balance of NAIOP's message sent to 2000 businesses across the state, members of the Minnesota Legislature, Governor Pawlenty and constitutional officers.

2010 Property Tax Education Flyer
Increasing fixed costs, such as property taxes, on any Minnesota employer in this tough economy will only make it even more difficult for them to retain existing employees and keep them working, let alone create new jobs or bring back workers who have already been laid off.
Influencing the Process – the 2009 Legislative Session

Cover memo from Director of Public Policy on 2009 Legislative Session

In this special Situation Report, NAIOP Minnesota “connects the dots” with an assessment of the 2009 Legislative Session.

2009 Comparative Tax Study
An urgent message to Minnesota's policymakers...
2009 Property Tax Education Flyer
It is likely that a proposal to increase business property taxes over and above the already projected statewide increase of 8% for 2009 will be on the legislative agenda again this year. In preparation for that debate, it is important that business property taxpayers fully understand Minnesota's dual system of taxing commercial and industrial property. NAIOP in partnership with the Coalition of Minnesota Businesses, the Minnesota Business Partnership and the Minnesota Chamber of Commerce has developed a special educational flyer explaining that system.
Setting the stage for the 2009 legislative session.
This issue of TaxWatch provides NAIOP members with talking points, facts and figures to use when communicating with policymakers about business property taxes.
2008 TaxWatch, Issue 2

Everyone who benefits from reduced C/I property taxes, won by NAIOP’s efforts, should be contributing to the PPSF fund.  Your pennies are needed to keep this momentum going.

Remember the PPSF fund in your budgets

Read what contributors to the PPSF fund are saying.

NAIOP's 21st Annual Comparative Tax Study
“Our primary obligation to our PPSF contributors, to our members, and to our tenants is to not give up any of the property tax gains we have worked so hard to achieve.”
--Murray Kornberg, 2008 President of NAIOP-Minnesota, interviewed in TaxWatch.

Read the entire article in NAIOP’s most recent issue of TaxWatch.

“Sharing the Wealth”
A New NAIOP Publication Designed To Educate Metro Area Commercial And Industrial Property Taxpayers About The Fiscal Disparities Program

Click here to read the press release about the Fiscal Disparities publication

NAIOP's Business Taxation Study, based on a new study from the Minnesota Taxpayers Association.
The full study can be found at ENTIRE STUDY
Read MTA Press Release
Read Star Tribune Editorial on MTA Study

Meet NAIOP Minnesota's Legislative Team

Kaye Rakow
Director of Public Policy
(952) 928-7461
Rich Forschler
Lobbyist
(612) 766-6902
Doug Fulton
Public Policy Chair
(952) 465-3333
Brian McCool
Land Use Subcommittee Co-Chair
(612) 492-7309
Greg Munson
Land Use Subcommittee Co-Chair
(651) 633-5050
Paul Reinke
Nexus Task Force Chair
(651) 330-1737

Backing up the team are the many members of NAIOP's public policy committee and board of directors, all of whom are active in the commercial real estate industry on a daily basis. Dozens of other individual members regularly devote personal time, energy, and resources to supporting the work of the committee and the board at the grassroots level.


Thank you Penny Per Square Foot Contributors

  • FROM THE CAPITOL
    The Tax Conference Committee met the morning of Wedneday, May 8 at 8:30 and until 10:30 that night.
    Time was spent on four economic development projects: 3M in Maplewood, Emerson in Shakopee, Baxter in Brooklyn Park, Mayo in Rochester and MOA in Bloomington.
    --In the morning session, they compared the differences in the Senate and House approaches to the projects.
    --In the evening session they dug into the Mayo project and after asking if committee members had questions on the other projects, which no one did, they moved on to the tobacco provisions.
    --They might reach agreement before the weekend, but on the other hand, this could go on into the following week. At this point, only a few people really know what's going on.
    --The State General Levy business property tax increase hasn't come up in discussion.

    A comment on the unifying themes of more money and more progressivity in the current tax plans at the Capitol:
    "If nothing else, Minnesota appears to be positioned to become a popular research destination for scholars interested in investigating the timeless question of how far this lever (more money and more progressivity) can be pulled before creating collateral damage to economic growth, the stability of the tax system, and general state competitiveness."
    Minnesota Center for Fiscal Excellence
    "Taxation and the Session Homestretch," Fiscal Focus, March-April 2013

    On behalf of all business property taxpayers, thank you to the impressive number of NAIOP members who are contacting their legislators and members of the Tax Conference Committee regarding the business property tax increases in HF 677.
    "Costs matter to Minnesota businesses and job-creators. These tax increases fail the test of government supporting job creation and incentivizing businesses to expand in Minnesota."

    NAIOP Minnesota's board of directors sends a letter of concern to Tax Conference Committee members and Governor Dayton
    "Taxing business properties too aggressively will cause our tenants to invest elsewhere or disinvest here, causing stagnation or a decline in job creation and economic development."
    (5.9.13)

  • NAIOP IS ALSO APPLYING PRESSURE BY SUCCESSFULLY PLACING ARTICLES AND OP EDS
    House and Senate tax bills misuse "fiscal disparities"

    "Office absorption rates for the region have just turned positive in 2011-2012 after showing a net loss in occupancy from 2008-2010. The word used by those who understand this market is 'fragile.'"

    "Legislators are proposing to subsidize one competitor in a way that removes much of the risk for that developer and does not require the accountability to the public that should come with such a large subsidy."

    "What kind of policy would make office owners, who may already have challenges with vacancy, subsidize a competitor that might actually take one of their existing tenants?"

    "From the Citizens League perspective," this is "a bad policy."
    Bob DeBoer, Project Director, Citizens League
    St. Paul Pioneer Press, Thursday, May 9, 2013


    Tax break for MOA is a hard sell for some
    "It's an appealing funding source at the Legislature because the money doesn't go through the state budget. But it worries others. In its 42-year history, opponents say Fiscal Disparities never has been used to subsidize this sort of private development, but if the Mall of America opens the door, others will surely follow."

    "But who draws the line of who's worthy of a subsidy?"
    Bob DeBoer, Project Director, Citizens League
    St. Paul Pioneer Press, Monday, May 6, 2013


    Taxpayers asked to subsidize Mall of America expansion
    The Mall of America is looking to double in size and taxpayer money could be used to cover some of the costs.
    KARE 11, May 6, 2013

    Mall plan riles CRE leaders
    "Requiring businesses to finance their competitor's projects through an increase in property taxes is a serious misuse of the pool."
    David Kordonowy, President of Steiner Development & 2013 President of NAIOP Minnesota

    "Fiscal disparities was never set up to be a funding mechanism. ... It wasn't meant to be used like TIF as a funding mechanism. We just think that's bad policy."
    Pat Mascia, Duke Realty, NAIOP board member and past president
    Finance and Commerce, May 7, 2013


    You, every other business property owner, and your tenants should be concerned
    Fiscal disparities again a target at the Minnesota legislature

    As the demand for more local revenue sources has grown, proposals to tap the program for favored local public or private projects have grown more frequent and more creative. In 2013, the fiscal disparities program will redistribute approximately $565 million worth of tax base levy dollars around the metro area, according to the program's administrative auditor and the Department of Revenue.
    Minnesota Real Estate Journal, April, 2013
    (5.9.13)

  • Finding Our Balance: Taxes, Spending and Minnesota competitiveness
    The fiscal catch-22: Spend too little on essential physical infrastructure and human capital and productivity declines and economic growth suffers. Tax too aggressively, and businesses will choose to invest elsewhere or disinvest here, causing job creation and economic development to stagnate or decline.

    Can a more challenging business tax and cost climate offset the benefits strong foundational competitiveness is expected to deliver?

    Mark Haveman's PowerPoint presentation to the Public Policy Committee

    The full study
    (5.9.13)

  • Working hard on your behalf-from NAIOP Corporate
    Job Growth Is the #1 Driver of Commercial Real Estate

    According to a new Cassidy Turley report, for every 100,000 net new office-using jobs created, vacancy typically falls by 60 basis points six months later.

    More info on study

    How Is U.S. Employment Shaping Up?
    (5.9.13)

  • FROM THE CAPITOL
    The final budget dance has begun

    After a steady flow of budget bills on the House floor appropriating general fund money for the 2014-2015 budget period, the House passed their tax bill raising $2.6 billion to pay for this spending.

    On Tuesday, the Senate unveiled their tax bill, with revenue hikes of $1.9 billion, putting in place the final piece for budget deliberations at the Capitol in the coming weeks.

    If the Senate passes their tax bill next week, as expected, negotiators from the two chambers and Gov. Dayton will try to hammer out a final tax package by mid-May.

    Mark Haveman of the Minnesota Center for Fiscal Excellence cautions that none of the proposed DFL budgets seem very concerned with one hallmark of sound tax policy - competitiveness. "That's a good tax principle that deserves consideration," Haveman said.

    Of particular interest to NAIOP in the Senate Tax Bill:
    --An increase in business property taxes of $220 million in the 2016-2017 biennium, through the state general levy, a property tax paid by business properties into the state general fund.
    --An increase in business property taxes in the seven-county metro area of $6 million annually to pay for the Phase II expansion of the Mall of America through the fiscal disparities pool.

    Of particular interest to NAIOP in House Tax Bill:
    --A diversion of resources from the fiscal disparities pool to pay for the Phase II expansion of the Mall of America of approximately $6-9 million annually.
    --The granting of authority to cities to levy a street maintenance fee (another property tax) on properties to pay for street maintenance.
    (4.28.13)

  • In early April, United for Jobs, a coalition lead by the Minnesota Business Partnership and the Minnesota Chamber of Commerce, began running ads attacking Gov. Dayton and DFL lawmakers for their purportedly spendthrift ways. The Senate bill is likely to exacerbate those tensions.

    Watch the ads
    (4.28.13)

  • To members of the Senate Tax Committee from NAIOP Minnesota President David Kordonowy:
    "We are concerned that regardless of how any diversion from the fiscal disparities program might be structured, metro area business properties will ultimately bear the burden of financing these projects, private or public, through an increase in the area-wide rate."

    Read the letter
    (4.28.13)

  • Proposed street fees rile property owners
    "I just think it's very disingenuous to say we want to provide property tax relief but then take it out of the other pocket and call it something else."

    Kaye Rakow, Director of Public Policy, NAIOP Minnesota
    Finance and Commerce, Wednesday, April 24, 2013
    (4.28.13)

  • From NAIOP Corporate: Working hard on your behalf
    Stormwater Management

    The U.S. Environmental Protection Agency (EPA) has considered implementing new stormwater regulations for commercial buildings for the past several years. Under a settlement agreement with the Chesapeake Bay Foundation, EPA agreed to promulgate a rule that would require commercial buildings to maintain the hydrologic characteristics of a new development site to that of undeveloped land.

    Read more

    Real Estate Coalition Guide to assist in completion of the EPA's information collection request
    (4.28.13)

  • FROM THE CAPITOL
    The Budget

    With the caveat that deficits and problems facing Minnesotans are not solvable in just one budget cycle, Senate and House DFL leaders are rolling out major budget bills this week. They have indicated that they plan to pass all of the budget bills for the Governor to sign by the end of April.

    Summary of the Majority's Proposed Spending and Revenue Changes from FY 2012-13 to FY 2014

    Legislation
    SF 607/HF 745:
    Authorizes cities to establish municipal street improvement districts and to apportion street improvement fees, i.e. taxes, on all parcels located in the district. The bill has had numerous very lively hearings in both the House and Senate and will be considered for both omnibus tax or transportation bills.

    Twenty-eight organizations have joined the coalition, lead by the Minnesota Auto Dealers Association, to oppose this legislation. Nine of them, including NAIOP Minnesota, testified in opposition to the bill in both the Senate and House this week.

    Read the position statement and coalition list

    SF 207/HF 208: Authorizes the use of the fiscal disparities (FD) pool to finance part of the expansion at the Mall of America (MOA).

    NAIOP Minnesota's position remains the same: This will establish an unwelcome precedent and we are concerned that business properties will ultimately bear the burden of financing these projects. The legislation calls for the MOA's TIF district tax capacity to be distributed as outlined in the fiscal disparities table (link below). Note there is no fiscal disparities (FD) contribution from 2014-2033.

    Fiscal disparities table

    SF 1563/HF 1724: Repeals the current requirement for truth-in-taxation notices. Instead imposes a requirement for a truth-in-taxation budget meeting to be held on or before September 1 and requires local governments to provide certain budget information prior to and at the meeting.

    The Nexus Task Force made a similar recommendation after their fall meetings. This bill will provide a great vehicle for NAIOP Minnesota's expenditure type reporting requirement. Bill authors are open to our suggestions.

    The first hearing was on Tuesday night with Mark Haveman, Minnesota Center for Fiscal Excellence (MCFE), testifying in favor of the bill and recommending expenditure type reporting be included in the budget information.
    (4.15.13)

  • Faegre Baker Daniels Legislative Update - April 5
    House Property Tax Division Report
    House Tax Committee Actions
    House Omnibus Jobs bill
    (4.15.13)

  • United for Jobs Launches Campaign Across Minnesota with TV, Radio, Newspaper, and Online Ads
    Effort Will Focus on Spending Accountability

    "Before the Governor and legislators ask for more from taxpayers, they need to go line-by-line through the budget, make sure they have cut the waste, and are accountable for every single taxpayer dollar they spend," said David Olson, president of the Minnesota Chamber of Commerce. "If they could save just two cents on every dollar spent, they would save over $700 million ($36.7 billion times .02), thus wiping out the deficit."

    To learn more visit www.UnitedforJobsMN.com or follow @UnitedforJobs on Twitter.

    Watch a TV ad "Highest"
    Press release
    Messaging document
    Spending reform items
    List of United for Jobs Coalition members
    (4.15.13)

  • Comparison of Individual Income Tax Burdens by State
    Released by The Minnesota Center for Fiscal Excellence (MCFE), this analysis provides a detailed perspective on the structure of income taxation at the state level and how state and local income taxes impact individuals and households with similar incomes differently across the nation.

    Why do rankings matter?
    In today's world of increased mobility and competition for economic development, states are increasingly watching each other. States must balance the need to provide high-quality services and infrastructure improvements needed to encourage economic growth with the need to be fiscally competitive.

    Read the full report

    How much 'fairness' is too much?
    The state's income tax system is already among the nation's most progressive

    "Fairness often is 'politically convenient as an argument to raise more revenue,' the Center's executive director, Mark Havemen, told us. 'It's a lot easier to raise revenue by saying somebody else is not paying their fair share.' "

    Read the editorial
    St. Paul Pioneer Press Editorial, April 10, 2013
    (4.15.13)

  • NAIOP Minnesota gets a little press
    Real estate: Cautious optimism


    David Kordonowy, the head of Minnesota's NAIOP chapter (and Steiner Development), sees concerns over policy but a more positive outlook for commercial real estate.

    "With the change in the party control over at the legislature, we want to make sure that our members are heard and our issues are understood."
    David Kordonowy, President of Steiner Development & 2013 President of NAIOP Minnesota

    Read more
    Minnesota Business Magazine, April 2013

    The Fiscal Disparities Program is totally reliant on the commercial-industrial tax base in the metro area and a subject of legitimate concern to NAIOP members and the thousands of business tenants in the buildings they own and manage.

    Read more
    Minnesota Real Estate Journal, March 2013
    (4.15.13)

  • From the Capitol
    Budget bills will take center stage in April, when legislators return from the Easter recess.

    Governor's Plan
    --Raises taxes by $1.8 billion (8% increase)
    --Increases new spending by $1.2 billion
    --Raises personal income taxes to 9.85% on 54,000 filers (21,000 businesses), 4th highest rate in nation
    --Raises corporate taxes by $297 million (15% increase), retains 3rd highest rate in nation

    House Majority Plan
    --
    Raises taxes by $2.57 billion (10% increase)
    --Increases new spending by $1.1 billion
    --New income tax surcharge of 11% on income > $500,000, 2nd highest rate in nation

    Senate Majority Plan
    --
    Raises taxes by $2 billion (8.5% increase)
    --Increases new spending by $1.4 billion
    --Raises personal income taxes, possibly on top 5% of incomes

    Minnesota Chamber's comparison of the 3 plans

    Minnesota’s “outlier” status if these proposals become law:
    --Personal income taxes—4th highest rate in the nation
    --Corporate income taxes—3rd highest rate in the nation

    Minnesota is already an outlier on business property taxes:
    --Effective rates for an urban commercial building: top 5 in nation
    --Effective rates for a rural commercial building: 6th in nation
    --Effective rates for an urban industrial building: 10th in nation
    --Effective rates for a rural industrial building: 12th in nation
    (3.28.13)

  • "Minnesota has a lower margin for error in being a significant outlier on business taxes and costs than other 'high tax, high service' peer states."

    Finding Our Balance: Taxes, Spending and Minnesota Competitiveness

    Analysis of 10 national competitiveness studies offers perspective on striking a balance between public investments and business costs.
    Minnesota Center for Fiscal Excellence, February 2013

    Press Release
    Executive Summary
    (3.28.13)

  • Faegre Baker Daniels Legislative Update - March 22
    More budget details, health insurance exchange, silica sand mining regulations
    (3.28.13)

  • NAIOP Minnesota organizes meeting with District 44 legislators Senator Terri Bonoff and Representatives Sarah Anderson and John Benson and invites members of MSCA and the Minnesota and TwinWest Chambers of Commerce
    "Overall, legislators were favorable on all/most of our concerns. The question remains: Can they influence their respective caucuses? They all expressed how important it was to hear from business leaders and job-creators."
    Judy Johnson, TwinWest Director of Government Affairs
    (3.28.13)

  • From NAIOP Corporate - Working Hard on Your Behalf
    A "carried interest", also known as a "promoted interest" or a "promote" in the real estate industry, is a financial interest in the long-term capital gain of a development given to a general partner, usually the developer, by the limited partners (investors). It is paid if the property is sold at a profit that exceeds the agreed upon returns to the investors. Carried interest has traditionally been treated as a capital gain for tax purposes.

    Supporters of eliminating capital gains treatment for carried interest intend to pursue the effort in the 113th Congress in connection with any deficit reduction measures.

    NAIOP opposes a tax increase on "carried interest" from capital gains rates to ordinary income rates that is intended solely as a revenue-raising measure or as a punitive attack on certain industries.

    Read more
    (3.28.13)

  • From the Capitol
    Two bills add an additional tax/fee on property

    SF 606/HF 511 - Authorizes local units of government to levy a "recreational facilities fee," i.e. a tax to finance parks, playgrounds, trails, recreational complexes, etc.
    • Has not had a hearing in the House or Senate.
    • SF 607/HF 745 - Authorizes cities to establish municipal street improvement districts and to apportion street improvement fees, i.e. taxes, on all parcels located in the district.
      • Passed on a party line vote in House Government Operations and Transportation Policy.
      • "City mangers love this idea."
      • Has not had a hearingin the Senate.
      A bill changing the Fiscal Disparities Program
      SF 207/HF 208 - Authorizes the use of the Fiscal Disparities Pool to finance part of the expansion at the Mall of America.
      • Bill has been heard in both the House and Senate Tax Committees. No votes taken.
      • Pat Mascia, Duke Realty, and Michele Foster, Foster Real Estate Advisory Services, both members of the Fiscal Disparities Task Force, testified on behalf of business property owners.
        (posted 3.18.13)
  • "Legislators really remember personal stories about the impact of proposed tax and policies on their businesses. They use those examples in committee discussions and floor debates."
    House Minority Leader Representative Kurt Daudt 
    Guest speaker at the March Public Policy Committee meeting
    (posted 3.18.13)

  • Demonstrating what can happen if the business community galvanizes with one voice
    Governor Dayton dropped the B2B (business-to-business) part of his budget proposal. 
    A great big thank you to everyone who communicated with the Governor and their legislators. 

    A special thank you to public policy committee members who stepped up to the plate:
    • Using various real project and development scenarios, calculated the impact on the CRE industry.
    • With that information, briefed CEOs in advance of a meeting with the Governor.
    • Mark Nordland, Nordland Partners, testified in the House Tax Committee.
      (posted 3.18.13)

  • In the hubbub of Capitol activity, it's imperative that we keep the business property tax message in front of legislators.
    Minnesota's Classification System
     shifts the burden of local property taxes onto commercial/industrial (C/I) properties. In effect, owners and their employer-tenants end up subsidizing all other taxpayers in the same jurisdiction.

    In 2012, business property owners and their employer-tenants paid 31.1% of all property taxes, but represented only 12.8% of total statewide estimated market value.

    Read more
    (posted 3.18.13)

  • Thank you to the roughly 50 commercial real estate people who represented the industry at the Day at the Capitol.

    Commercial real estate talking points 

    "A feisty Gov. Mark Dayton climbed into the belly of the beast Wednesday, March 13, to tell critics in the business community that they have their facts wrong on Minnesota's economy...In perhaps the most in-your-face speech by a Minnesota governor since Jesse Ventura left office in 2003, Dayton accused those critics of partisan sniping because he's a Democrat..." 
    Bill Sallisbury of the Pioneer Press
    (posted 3.18.13)

  • Minnesota shines at the Chapter Leadership and Legislative Conference in DC
    Congressman Erik Paulsen, breakfast keynote speaker, was introduced by Jean Kane, Welsh / Colliers International and NAIOP Chairman-Elect. Congressman Paulsen effectively addressed the concerns of the commercial real estate industry, prompting very positive comments from other NAIOP chapters, saying "you're very fortunate to have such great representation in Congress" and "he hit on all our points - he's been well briefed."
    (posted 3.18.13)

  • From NAIOP Corporate - Working Hard on Your Behalf
    Until 2004, the Internal Revenue Code required that depreciation for leasehold or tenant improvements (TI) occur over the economic life of the building structure itself - 39 years, rather than over the economic life of the improvements. In 2004, tax legislation was enacted that temporarily reduced this 39-year depreciation period for TI to 15 years - a period more reflective of the true economic life of TI in the modern commercial real estate market.

    NAIOP strongly supports making the 15-year qualified leasehold improvement depreciation a permanent feature of the tax code, and will work with Congress to include it in comprehensive tax reform legislation.

    Read more about the issue, status, talking points, and available resources
    (posted 3.18.13)

  • An interview with David Kordonowy, NAIOP Minnesota 2013 President
    • "We have been credible representatives of the business community because we are as close to Minnesota's entrepreneurs and employers as you can get. We talk to them every day. We know what they're thinking, what worries them. As small business owners ourselves, we share their experiences and their concerns." David Kordonowy, President of Steiner Development & 2013 President of NAIOP Minnesota
      (posted 2.28.13)

  • NAIOP gets a little press in the Minnesota Real Estate Journal
    Turning property tax frustration into productive action: MSCA/NAIOP members put expenditure type reporting into action in Edina
    • "It was an eye opener for a lot of people....Spelling out the issues in layman's terms in the way the report does will be a really useful tool in helping ask better questions." Karla Keller Torp, Executive Director, MSCA
    • "This is a two way street. I am equally interested in what the business community can offer to me in the way of ideas." Scott Neal, City Manager, Edina, praising the report and the way the information was presented
    • "At the end of the day, we need to influence policymakers regarding the property taxes we pay and how our money is spent." Paul Reinke, Senior Director-Development at Haugland Company & Nexus Task Force Chair
  • Minnesota Center for Fiscal Excellence
    A Closer Look at "Plan A"
    Love it or hate it. Governor Dayton's tax reform and budget plan has given everyone a lot to talk about.
    This issue of Fiscal Focus examines the Governor's reform proposal and budget plan and models some impacts:
    • Projected impact on Minnesota's overall national tax rankings
    • Projected impact of fourth tier on Minnesota's rankings
    • Projected impact of $500 property tax rebate on percentage of total property tax paid: from Edina at 8.5% to Mahnomen at 88.8%
      (posted 2.28.13)

  • Finding Our Balance: Taxes, Spending and Minnesota Competitiveness
    Analysis of 10 national competitiveness studies offers perspective on striking a balance between public investments and business costs.
    Press Release
    Executive Summary

    St. Paul Pioneer Press Editorial on the "Finding Our Balance" Analysis
    The Minnesota Center for Fiscal Excellence has some good advice for lawmakers as they work to find the "sweet spot"--if there is such a thing--in balancing taxing and spending.
    • On giving homeowners a $500 rebate on their property taxes: The proposed use of more than $2 billion in new tax revenue - significantly funded by business taxes to finance $1.4 billion in rebates - fails to demonstrate a value proposition to business.
    • On the proposed sales tax on business to business services: Findings suggest the deep concerns expressed by businesses over the competitive impacts of enacting this policy are not hyperbole.
    • If Minnesota expects businesses to continue to accept higher tax burdens than imposed elsewhere, it is imperative the returns on that spending be greater than elsewhere as well. The value proposition must be clear and tangible.
      (posted 2.28.13)

  • From NAIOP Corporate - Working Hard on Your Behalf
    Energy Efficiency

    Arbitrary mandates oftentimes are based on assumptions that have little to do with realistic capabilities and business realities.

    In the real estate industry, local economic conditions determine the levels of efficiencies and costs that can be absorbed in a given market. Not all markets are created equal, and nationwide energy mandates for all building types will create a disincentive to develop new properties in areas where the markets cannot absorb the increased costs.

    Read more about NAIOP's position and Congressional status
    (posted 2.28.13)

  • Governor Dayton's Budget and Tax Reform Proposals

    2014-15 Projected Total State Budget
    $63.3 billion: All funds, federal and state
    $37.8 billion: State general fund

    State General Fund

    Governor Dayton's Budget for FY 2014-15
    Overall spending of $37.9 billion
    • 2.8% increase over current law
    • 7.8% increase over FY 2012-13
    Overall revenue of $37.9 billion
    • $2.1 billion tax increase
    • 6.3% increase over FY2012-13
    Read NAIOP's summary of the Governor's tax increases, spending highlights, and the net impact of his recommended changes
    (posted 2.19.13)

  • NAIOP is part of a Business Budget Coalition recently formed and organized by the Minnesota Chamber of Commerce. The Coalition will unify and speak with one voice in response to the Governor's budget and tax proposal. When asked to help, just say yes.
    (posted 2.19.13)

  • Business-to-Business sales tax links:
  • The Fiscal Disparities program is a subject of legitimate interest and concern to NAIOP Minnesota members because of its total reliance on the commercial-industrial tax base.
    Because the value of the Fiscal Disparities pool has grown to current levels in the hundreds of millions of dollars and demand for public resources has increased, the program is attracting increased interest from those who would divert some of this tax base sharing to subsidize or directly fund private or public development projects.

    NAIOP members maintain that commercial-industrial properties should not bear the burden of financing any programs or projects by changing the Fiscal Disparities program.

    Read the position statement recommended by the Fiscal Disparities Task Force, chaired by David Anderson of Frauenshuh, and adopted by the Public Policy Committee.
    (posted 2.19.13)

  • From NAIOP Corporate:
    U.S. Environmental Protection Agency (EPA) issues Information Request
    The EPA is requesting information pertaining to a potential new rule on lead-based paint hazards in the renovation, repair, and painting activities on and in public and commercial buildings.

    NAIOP, along with a coalition of real estate interests, is working with the EPA to provide the agency with the data they need to determine if there is enough cause to go forward with this rule.

    Read more
    (posted 2.19.13)

  • The Price of Government (POG) indicator now serves as an important political talking point for debates over acceptable levels of government taxation and spending.
    The problem is that the POG doesn't actually measure the claim government has on what an average Minnesotan might think of as "personal income."

    Here's why, according to Mark Haveman, Executive Director, Minnesota Center for Fiscal Excellence (Formerly MTA):
    Minnesota's "Price of Government": Where Theoretical Income Turns into Personal Income
    (posted 2.19.13)

  • Changes Coming to Business Day at the Capitol
    Wednesday, March 13
    Crowne Plaza, Downtown St. Paul
    • Registration and Commercial Real Estate Briefing at 10:30 am
    • Keynote Address from Scott Wine, CEO & Chairman, Polaris Industries at 11:00 am
    • Luncheon Address from Gov. Dayton (invited) at 12 pm
    • Appointments with your Legislators start at 1:15 pm
    • Networking Reception starts at 4:00 pm
  • Join hundreds and hundreds of other business people from across the state and speak with one voice on issues that will help strengthen Minnesota’s business environment.

    Free to NAIOP members! Register with Stephanie Wolf

    NAIOP thanks Minnesota’s employers for their loyalty and commitment to our state.
    (posted 1.31.13)

  • Minnesota Taxpayers Association rebrands as Minnesota Center for Fiscal Excellence
    The new name better reflects the 87-year-old organization’s role in providing researched-based fiscal policy. Three new reports will be out in the coming weeks:
    • Minnesota’s national rankings on various tax, spending and competitiveness indexes
    • Minnesota’s changing price of government
    • Multi-state individual income tax comparison and rankings
  • For years, NAIOP Minnesota has depended on the MCFE for information and analysis on Minnesota’s fiscal policy. In particular, NAIOP’s Nexus Task Force thanks MCFE for their research and guidance.

    Visit their website: www.fiscalexcellence.org
    (posted 1.31.13)

  • Property Tax — Maligned and Misunderstood
    Tax reform is in the air in Minnesota
    “Simplifying the property tax system and improving its transparency are two worthy reform objectives. Local government finance has a lot of moving parts—any of which can affect an individual’s property tax. To restore trust … we must make it simpler … for property taxpayers to accurately determine what and who is causing their taxes to rise.”
    Mark Haveman
    Executive Director, Minnesota Center for Fiscal Excellence

    Read the article
    Star Tribune, Opinion Exchange, Sunday, January 20, 2013
    (posted 1.31.13)

  • Man With a Plan
    Governor Dayton released his budget proposal last week. Below are the details:
  • Read the Minnesota Chamber’s fact sheet on Governor Dayton’s budget proposal:
    Budget and tax reform threaten jobs and the economy
    (posted 1.31.13)

  • At their Thursday, February 7 (7:30-9:00 am) meeting, the Public Policy Committee will begin discussion on the Governor’s budget and it’s implication for the commercial real estate industry and the general business community. The committee welcomes your participation.

    RSVP to Kaye Rakow
    (posted 1.31.13)

  • “As our members talk to their business tenants across the state, the message they hear over and over is loud and strong: Costs matter...and among the costs they must deal with, Minnesota’s business property taxes continue to be the single major expense over which they have absolutely no control.”
    2013 Intro to NAIOP - Kordonowy
    David L. Kordonowy
    President/CEO, Steiner Development
    2013 President, NAIOP Minnesota


    Read more

  • Star Tribune “Inside View” Features David Kordonowy, NAIOP Minnesota’s 2013 President
    “I've been in the business 31 years. It's been my livelihood. I've been able to get into the industry and benefit from the industry, and it's just time to give back.”
    -David Kordonowy, Steiner Development

    Read the interview
    (posted 1.17.13)

  • Minnesota Legislative Update: 2013 Legislative Session Preview
    “The new DFL leadership is struggling to lower expectations of the DFL base relating to desired outcomes of the 2013 legislative session. The new leadership and the DFL Governor are attempting to quietly ‘get on the same page’ with the many issues being put forth by advocates. The new Speaker and Majority Leader are new to these roles. The course of the legislative session will depend on how DFL legislators can align priorities with the Governor.”

    Read the preview from Faegre Baker Daniels

    Some of the topics covered in the preview:
    • Budget outlook
    • Tax reform
    • Economic development
    • Transportation
      (posted 1.17.13)

  • Key Elements of the Fiscal Cliff Tax Deal
    “While the initial outlook for commercial real estate is positive, substantial concerns remain as the legislation delays scheduled budget cuts for only two months and does little to address the nation’s long term problems.”

    From the commercial real estate perspective
    Tom Bisacquino, President and CEO, NAIOP

    From the general business community perspective
    Minnesota Chamber of Commerce
    (posted 1.17.13)

  • Day at the Capitol
    Wednesday, March 13
    Crowne Plaza, Downtown St. Paul
    • Speaker of the House Paul Thissen urged Public Policy Committee members to join Business Day at the Capitol: “It makes a huge difference for legislators to have people come to the Capitol and meet with them. We don’t learn everything in committee meetings. We learn through your expertise. It helps us and the state in general.”
      (posted 1.17.13)

  • The Department of Labor and Industry (DLI) will be proposing to “take the cap off” of elevator inspection fees including new construction in the 2013 legislative session.
    Read the content of an email from Jessica Looman, DLI
    (posted 1.17.13)

  • The Public Policy Committee celebrates 2012
    NAIOP Minnesota wins the prestigious national legislative award in 2012, beating out top contenders Arizona and California!

    Thank you, NAIOP Public Policy leadership team!
    2012 Public Policy leadership

    Thank you, PAC contributors!

    Thank you Penny Per Square Foot Fund contributors!

    In 2013, the Public Policy Committee will continue to:

    • Protect and advance the economic interests of our chapter’s developers, investors and owners.
    • Be the first line of defense at the State Capitol for the business property taxpayer.
    • Identify and get smart on issues, primarily fiscal, impacting the commercial real estate industry.
      (posted 1.17.13)

  • The Public Policy Committee met on January 3 with Representative Paul Thissen from Minneapolis, new Speaker of the House. NAIOP Minnesota is continuing to maintain & enhance its position as the leading advocate for Minnesota commercial real estate development. Get connected to NAIOP's public policy efforts both in Minnesota and nationally.
    (posted 1.10.13)

  • Senate Majority Leader-elect Tom Bakk spoke with the standing-room only crowd at the December Public Policy committee meeting.
    Below are some of Senator Bakk’s quotes from that discussion:
    • “The honest thing to do during the coming session is to put all of the revenue pieces on the table. We have to deal with the sales tax, state general tax, class rates, and the corporate tax.”
    • “We are going to do tax reform this session. We don’t want to do something without the business community. We want business to come to the table. But do not come to the Capitol with a blank piece of paper. We want ideas on how we can bring stability to the system.”
    • “Where can we target money to provide the most leverage for economic development?”
    • “Governor Dayton wants to be remembered as a job-creator. He intends to do significant regulatory reform next year. Business can help by bringing stories describing how specific regulatory burdens are having an impact on jobs. Those are really important, and have a real impact on legislators’ thinking.”
    • “My goal at the end of the session is to hand off a balanced budget. I want NAIOP and your business partners involved in the process.”
      (posted 12.13.12)

  • Minnesota Management and Budget issued their November forecast last week
    The state is in much better fiscal condition than in the last few years.
    Revenues are up $1.3 billion for the current biennium FY 12/13. The $1.3 billion under current law will be used to pay back the $2.4 billion K-12 budget school shift. $1.1 billion of school aid shifts will remain. A previous surplus from last year replenished the budget reserves and cash flows which are at $1 billion.

    The deficit projected for FY 14/15 is estimated to be $1.1 billion.
    This does not include inflation, which would add another $990 million to the deficit.

    Spending continues to outpace revenues.
    Revenues are increasing by 2.4% ($850 million), while spending is increasing by 4.7% ($1.6 billion). Total general fund spending is estimated at $36.9 billion.

    The forecast is more uncertain than usual due to the lack of action on the fiscal cliff.
    The forecast does assume that the fiscal cliff is avoided. However, if the fiscal cliff occurred it is estimated that would add another $1.7 billion to the deficit for FY 14/15 for a total of $2.7 billion and unemployment would rise to 7.1% in 2014.

    For additional information, go to the Minnesota Management and Budget Website:
  • Minneapolis is considering a proposal that would force commercial buildings to receive public ratings based on their energy-efficiency.

    Draft Minneapolis Building Rating & Disclosure Policy
    The proposal, authored by Council member Elizabeth Glidden, will get its first hearing in January.

    Mayor and City Council members

    How would this work?
    • Building owners would be required annually to benchmark their energy and water use through software such as ENERGY STAR Portfolio Manager.
    • The city would report the data through a website.
    • Building owners would be required to disclose the data to prospective buyers, tenants or lenders.
    • Compliance would be phased in.
  • “Commercial buildings may be forced by the city to report energy use.”
    Star Tribune, November 26, 2012
    Read the full article.
    • “Unfortunately, we see this as a sign of things to come.” Karen Penafiel, VP, BOMA International
    • “It’s just been a non issue, quite frankly.” Kent Cleveland, VP, BOMA, San Francisco
    • “The result could be a loss of value for certain members of ours.” Kevin Lewis, Executive Director, BOMA Minneapolis
  • NAIOP Building Owners and Managers—What are your thoughts on proposals like this?
    Email Kaye at KayeRakow@harringtoncompany.com.
    (posted 11.29.12)

  • Deciphering Park Dedication Fees
    Presented to the Public Policy Committee by the Minnesota Taxpayers Association

    View the Presentation, which includes:
    • An overview of park dedication fees, including legal understanding of the fees, how they are set, how they are used and conclusions.
    • Highlights of a study on park dedication fees in five metro cities in various stages of development.
      (posted 11.29.12)

  • Environmental Congress Citizen Forums
    Rochester – Bloomington – Duluth – Worthington – St. Cloud – Moorhead

    Minnesota state agency commissioners are facilitating discussions on air, water, land, energy and climate with community leaders and a diverse group of citizens in five locations across the state. They want your insights as they prepare a new vision on what is important for Minnesota’s environmental and economic future.

    Learn more and Register

    Current Minnesota Environment and Energy Report Card
    (posted 11.29.12)

  • A dramatically different landscape at the State Capitol
    Even though we'll have to work harder than ever before, NAIOP's message remains the same:

    Costs matter to Minnesota's employers and the tenants in the buildings NAIOP members own and manage, especially those fixed costs over which they have no control, such as the property taxes they must pay on the space they either lease or own.

    NAIOP members stand ready to help Governor Dayton and Minnesota's legislators by providing "real world" information on coping with our state's high property taxes and offering analysis on the actual impact of legislative decisions on job creation and business growth.

    NAIOP Minnesota's public policy committee and team will be ready to take on the challenges facing our industry when the session begins in January.
    (posted 11.13.12)

  • Minnesota's State General Tax ...
    ...places an additional fixed cost on every employer, no matter their size, profitable or not. 
    State General Tax
  • NAIOP Minnesota members win local elections
    Duane Poppe (current councilor), receiving 57% of the vote, defeated current Mayor Al Lindquist in Osseo. Duane is a Vice President with Transwestern's Minneapolis office, specializing in industrial sales and leasing.

    Paul Reinke, running unopposed, "an indicator that people think Oakdale is going in the right direction," was elected to his third four-year term as an Oakdale city council member. Paul is the Senior Director of Development at Haugland Company in Minneapolis and is NAIOP Minnesota's Nexus Task Force chair.

    Are we missing anyone from this list? Let Kaye Rakow, Director of Public Policy, know at KayeRakow@harringtoncompany.com or 952-928-7461.
    (posted 11.13.12)

  • Minnesota's classification system...
    ...shifts the burden of local property taxes onto C/I properties.
    State General Tax
  • Inside View: Doug Fulton, Cushman & Wakefield/NorthMarq, and Chair, NAIOP Minnesota’s Public Policy Committee
    Speaking of NAIOP’s public policy committee:
    “It's comprised of a whole bunch of very knowledgeable developers, property managers, investors, brokers, architects and attorneys -- all really with the goal of promoting lower business property taxes, which encourages development and helps create a better business climate.”

    Read the full interview.
    Star Tribune Business Section, November 2, 2012
    (posted 11.2.12)

  • With each passing day, the pension problem grows
    From a study to determine the amount of additional money that would have to be devoted annually to state and local pensions systems to achieve full funding in 30 years, a standard period over which governments target fully funded pensions:
    • On average, a tax increase of $1,385 per U.S. household per year would be required. For some states, the number is much higher, including Minnesota where it’s $1,928.
    • From the Washington Post, reprinted in the St. Paul Pioneer Press, October 25, 2012

      Read the full article.
      (posted 10.30.12)

  • The St. Paul Pioneer Press continues to be a strong supporter of NAIOP Minnesota’s expenditure type reporting initiative
    Here’s what they had to say about Senator Ted Daley of Eagan, the chief Senate author of NAIOP Minnesota’s expenditure type reporting legislation in the 2012 session:

    “Ted Daley, in addition to his military background, is a certified public accountant with an MBA from the University of St. Thomas. He was chief Senate author of proposed legislation to require cities and counties to report more budget information in a way that helps citizens spot local spending trends. That measure got our attention -- and support -- and we hope to see it considered again in 2013.”

    Read the editorial.
    (posted 10.30.12)

  • What are the NAIOP demonstration projects?
    NAIOP’s local government transparency initiative and accompanying expenditure type reporting legislation has both advocates and foes. But one thing most everyone agrees on is that reporting information just for the sake of reporting it is not a worthy investment of anyone’s time and effort. We need to show that this information can better inform and educate local taxpayers about local government decision-making and at the same time, provide an accurate, clear, and satisfactory understanding of why property taxes are changing.

    The goal of a demonstration project is to work with local taxpayer interests and government officials to collect the information which would be reported under the proposed legislation, and demonstrate how it can be used to understand the evolution of local government budgets and reasons for property tax increases as well as engage local decision makers in a more productive way.

  • In conjunction with the first demonstration project, NAIOP Minnesota and the Minnesota Taxpayers Association held the first Citizen’s Budget Committee meeting in Faribault, along with the Faribault Chamber of Commerce, the City of Faribault, and the Faribault Daily News.

    Rethinking how we look at Faribault’s city budget
    Faribault Daily News, posted Wednesday, October 17, 2012
    “If 2 percent of citizens are currently engaged on this topic, and if we could get even 5 percent of them engaged with this data, then we would be in good shape,” said Steven Pope, committee member and chief operating officer of Huckie Media.
    (posted 10.18.12)

  • Issue Card #5 | Spend Smart-Minnesota spending by the numbers
    The fifth in a series of six issue cards, which will be sent by the Coalition of Minnesota Businesses to all candidates for the state legislature.
    Given the slow economic recovery, the impact of demographic changes on taxes and spending and the competitive global economy, the public sector can—and must—find new ways to deliver public services at lower costs.

    Read the cover letter sent to legislative candidates.

    For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
    (posted 10.11.12)

  • Minnesota Chamber of Commerce business barometer sets the stage for the November election
    Minnesota business leaders are more optimistic about the state’s economy than a year ago, but about 20% still expect things to get worse.
  • Governor Dayton will present his budget on January 22, 2013, which will likely include a bold tax reform package
  • Department of Revenue Commissioner Myron Frans presented the Governor’s reasons for tax reform at the October public policy committee meeting.
  • NAIOP’s public policy committee welcomes your thoughts in preparation for the 2013 legislative debate on tax reform. Email Kaye Rakow, Director of Public Policy, at KayeRakow@harringtoncompany.com.
    (posted 10.11.12)

  • Senator Tom Bakk, from Cook, MN, and current minority leader in the Minnesota Senate, will be the guest at the Thursday, December 6 Public Policy Committee meeting
    Join what is sure to be a lively discussion on the impact of the election and the November state budget forecast on the 2013 legislative session.

    RSVP to Kaye Rakow, Director of Public Policy, at KayeRakow@harringtoncompany.com.
    (posted 10.11.12)

  • MnDOT adopts the Statewide Multimodal Transportation Plan 2012-2031
    This will be used to shape subsequent MnDOT modal plans and investment decisions moving forward. Library and Documents

    SMnDOT is currently in the process of updating the 20-year State Highway Investment Plan To become involved in this process, please visit the project website.
    (posted 10.11.12)

  • Doug Fulton, Cushman & Wakefield | NorthMarq, Is New Chair of NAIOP Public Policy Committee
    According to new chair Fulton, "The committee will continue to be mindful that we are not only working at the Capitol to defend the interests of our own members, but also our tenants, investors and every business property taxpayer in our state."
    Read more
    (posted 9.27.12)

  • Add Your Voice to Minnesota's Tax Reform Debate
    Join Myron Frans, Commissioner of Revenue, who will:
    • Talk about Minnesota's tax system and
    • Collect suggestions from NAIOP members on how to make it better.
  • It is important for the Governor to hear the commercial real estate industry's perspective on "tax fairness and economic growth."

    Attend this meeting and add your voice.
    Public Policy Committee
    NAIOP's offices at The Harrington Company in St. Louis Park
    Thursday, October 4, 7:45-9:00 am
    RSVP to Kaye Rakow at kayerakow@harringtoncompany.com
    (posted 9.27.12)

  • Matt Van Slooten Adds the Commercial Real Estate Voice to the Property Tax Reform Debate

    NAIOP Minnesota member Matt Van Slooten, President of Carlson Real Estate Company, has been representing his fellow NAIOP members and the thousands of business property taxpayers across the state on the Property Tax Working Group for the last year and a half.

    Read a summary of this discussion at the most recent Public Policy Committee Meeting
    Read the Property Tax Working Group's Draft Report
    (posted 9.27.12)

  • NAIOP Minnesota's transparency initiative attracts attention from other chapters across the country
    The Minnesota Chapter briefed attendees at the advanced legislative summit in Dallas last week on the topic: "Building a statewide unified grassroots effort to influence legislation."

    All chapters are facing declining revenues on a local level and are becoming more interested in understanding the cost drivers in their local budgets.
    (posted 9.27.12)

  • Highlights from the Minnesota Taxpayers Association’s 50 State Property Tax Comparison Study were recently discussed in Finance and Commerce
    Minnesota is moving up the rankings, but not in a good way: Its business property taxes are increasingly becoming some of the highest in the country.

    Urban commercial property valued at $25 million, with $5 million in fixtures
    • 2010: 8th, $873,993
    • 2011: 4th, $999,328
  • Urban industrial property valued at $25 million, with $12.5 million in machinery and equipment, $10 million in inventories and $2.5 million in fixtures
  • Issue Card #4 | Do the Math: Minnesota Education Spending by the Numbers
    The fourth in a series of six issue cards, which will be sent to all candidates for the state legislature.

    Since 2003, state directed K-12 education funding has kept pace with CPI (as shown below); the most widely used measure of inflation, and one that is viewed as an indicator of the effectiveness of government economic policy.

    Education is so important to Minnesotans that we put it in our Constitution. And for at least the last quarter-century, K-12 funding has made up the largest share of the state General Fund (40% of the budget in 2012-2013). This commitment to education crosses party lines and has helped make Minnesota students some of the highest-performing in the country.

    Money is important, but how we use those resources to educate our children is more important.

    Read the cover letter sent to legislative candidates.

    For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
    (posted 9.13.12)

  • The July-August edition of the Minnesota Taxpayers Association’s Fiscal Focus is now available.
    In this issue:
    • State Labor Agreements – Beyond the Numbers: If there was one area of strong bipartisan agreement in the state labor hearing, it was that it is imperative to reward excellence among state employees and retain talent. However, the best methods for accomplishing this are a source of significant dispute.
    • MTA 2012 Accountability Index is Down on the Farm: Rising land values stemming from record prices have created both real and paper fortunes. Booming cash rents have made farmland an attractive alternative investment with returns that have destroyed conventional stock and bond options.
      Read more
      (posted 9.13.12)

  • Wednesday, October 3 – MTA’s 86th Annual Meeting of Members
    Rising land values stemming from record prices have created both real and paper fortunes. Booming cash rents have made farmland an attractive alternative investment with returns that have destroyed conventional stock and bond options.
    • St. Paul River Centre, 9:00 am – 1:30 pm
    • For you policy wonks - The Policy Sessions will be on tax reform, an issue that is sure to be a focus of the Minnesota legislative session in 2013.
    • Speakers include Commissioner Myron Frans,Minnesota Department of Revenue; Doug Lindholm, President and Executive Director of the Council on State Taxation (COST); and Tracy Gordon, Brookings Institution Fellow.
    • If you’re interested in attending, contact Kaye Rakow at kayerakow@harringtoncompany.com.
      (posted 9.13.12)

  • Eric Anderson to Hand Off Leadership of An Energized, Even More Activist Public Policy Committee to Doug Fulton
    He will also be handing off a supercharged committee - one that has moved far beyond its long established role as legislative watchdog and defender of Minnesota's business property taxpayers to a new, more activist role as a highly visible and influential player in the legislative and political arena as a public policy "think tank" and, even more dramatically, as an aggressive catalyst for positive legislative change.

    "I've been astounded," said Eric, "at how far we have been able to go in addressing the challenge of encouraging greater local government transparency in reporting on local spending."

    Nice work, Eric. And thanks, on behalf of all of the members of NAIOP and local taxpayers everywhere!
    Read more
    (posted 8.24.12)

  • Issue Card #3 | Spend Smart: MN Property Taxes by the Numbers
    The third in a series of six issue cards, which will be sent to all candidates for the state legislature.

    Business Property Carries Large Tax Burden and Subsidizes Other Properties in the Same Jurisdiction
    Effective tax rates - taxes payable as a percentage of market value - have actually been lowered for every class of property since reforms were enacted in the late 1990s. But even after reforms, the effective tax rate for business property is three times higher than for homes.

    Property Tax Classification System Shifts the Burden to Business Properties
    Business property comprises 13% of total state market value but pays 31% of all property taxes - paying 2.4 times more in tax than its value.

    Read the cover letter sent to legislative candidates.

    For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
    (posted 8.24.12)

  • Editorial: St. Joseph fails in transparency
    Did you ever have an experience that restores your faith in something while simultaneously reinforcing your frustrations with the topic at hand?

    I've had such an experience in recent weeks, and it culminated last week ... I hope. The good news: It restored my faith in everyday residents paying attention to their government. The frustration it restored? Leaders of government resistant to transparency.

    Mike McDonald, referred to in this editorial, has been an early and consistent supporter and advisor to NAIOP's transparency proposal. He is a CPA and a former city council member.

    Read more
    St. Cloud Times, July 14, 2012
    (posted 8.24.12)

  • We need the city to help us understand Faribault's finances
    "...the Minnesota Taxpayers Association and NAIOP Minnesota, the commercial real estate development association, have been talking with local governments, and community newspapers and chambers in an effort to get volunteer participation ... in a City Budget Transparency Project."

    "The Chamber Board of Directors recognizes the opportunity this provides the city: To be a leader in the state in engaging its residents. We do, too."

    "Now, we need the city to see that and jump on board."

    Read more
    (posted 8.9.12)

  • State Revenues Exceed February Forecast by $336 million
    • Minnesota's net general fund receipts for FY 2012 are now estimated to total $16.450 billion, $336 million (2.1%) more than forecast in February.
    • Receipts from the individual income tax, the sales tax, and the corporate income tax were all above projections.
    • Net general fund receipts in fiscal 2012 are now estimated to be 5% greater than fiscal 2011.

      Read the four page report
      (posted 8.9.12)

  • 2012 Coalition of Minnesota Businesses Issue Cards
    Educating legislative candidates on fiscal issues
    Even though the recession's impact is a little less severe in Minnesota, the projections for FY 2013 and the 2014-15 biennium are less optimistic than earlier in the year.

    In order to grow and compete globally, Minnesota needs a business climate that encourages companies to innovate, expand and create jobs.

    Issue Card #2 | Spend Smart: Minnesota Taxes by the numbers
    The second in a series of six issue cards, which will be sent to all candidates for the state legislature.

    Read the cover letter sent to legislative candidates.

    For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
    (posted 7.30.12)

  • Don’t forget about the primary elections!
    Tuesday, August 14
    All 201 seats in the Minnesota House and Senate are up for election on November 6. The process begins with the August 14 primary elections with many important seats at stake.
    (posted 7.30.12)

  • Details on New Laws Effective August 1, 2012
    • Business and commerce
    • Energy
    • Environment
    • Health and human services
    • Housing
    • Military
    • Public safety
    • Transportation
      (posted 7.30.12)

  • From the July 10th edition of NAIOP Source, the weekly e-newsletter from NAIOP Corporate:
    Transparency in local government moving forward in Minnesota in spite of Governor's veto

    NAIOP Minnesota is now working with local municipalities to establish pilot programs that will demonstrate the benefits of reporting local budgets based on spending type.

    Read the article
    (posted 7.19.12)

  • 2012 Coalition of Minnesota Businesses Issue Cards
    Educating legislative candidates on fiscal issues

    The next legislature must be ready to make tough decisions right away.
    Some of the state fiscal pressures (slowing economic growth, the global economy, an aging population, government spending trends) have been building for decades.  More recent pressures brought about by the Great Recession and a projected $1.1 billion state deficit mean immediate tough decisions for the 2013 legislature.

    Issue Card #1 | Spend Smart: Because we can't afford not to
    The first in a series of six issue cards, which will be sent to all candidates for the state legislature.

    For more information on the Coalition of Minnesota Business (CMB), visit www.MNBusiness.com.
    (posted 7.19.12)

  • Do rising property taxes irritate you?
    Don't let others worry about the decisions that determine your tax bill.  

    When taxes have our attention, chances are higher that we will check up on how those tax dollars ($8.6 billion statewide in property taxes in 2012) are being spent.  

    Understanding Your Property Taxes:  2012 Edition, an easy question-and-answer format

    • Is it true that every time spending rises or revenue from non-property tax sources falls that my property tax bill goes up?
    • Shouldn't there be protection from tax bills growing faster than value increases?    
    • How can I know how much my local governments should be spending? 
      Published by the Center for Public Finance Research, the research arm of the Minnesota Taxpayers Association.
      (posted 7.19.12)

  • The St. Paul Pioneer Press appreciates NAIOP’s work to advance Expenditure Type Reporting: Asking Better Budget Questions
    “...five years of cuts have left us very few places to look to cut further.”
    Message from Mayor Chris Coleman, St. Paul

    “All the more reason, it seems, to take a long and serious look at what’s driving costs higher...we appreciate work to advance legislation to requiring cities and counties to report more information in a way that helps residents understand local spending trends...championed by the Minnesota Taxpayers Association and the Minnesota chapter of the commercial real estate organization, NAIOP.”
    St. Paul Pioneer Press Editorial, Thursday, July 12th

    Read the St. Paul Pioneer Press Editorial
    (posted 7.13.12)

  • From the front page of the July 5th Independent Review, Litchfield Minnesota:
    Groups seek transparency in local government.
    Several Litchfield business leaders and members of the Chamber of Commerce met on June 28th with representatives from NAIOP Minnesota to discuss a possible demonstration project modeled after proposed legislation and aimed at creating more transparency in local government.

    "...the project will show the Litchfield spends taxpayer dollars wisely. What better way to demonstrate that Litchfield and Meeker County are great places to do business."
    --Dee Schutte
    Executive Director, Litchfield Chamber of Commerce

    Read the article
    (posted 7.6.12)

  • Floor debate of the 2012 tax bill and the governor's subsequent veto letter provided clear evidence that property taxation will be a major issue in both the November elections and 2013 tax reform proposals.

    A Blueprint for Property Tax Understanding
    To address this concern, NAIOP Minnesota and MTA have been working to develop an analytical tool that would provide greater understanding of why property taxes change using the information generated through expenditure type reporting. The tool is based on four key concepts:
  • Details on New Laws Effective July 1, 2012
    • Business and commerce
    • Education
    • Environment
    • Health and human services
    • Military and veteran affairs
    • Public safety
      (posted 6-28-12)

  • How did your legislator vote on issues tracked by the business community?
    The Minnesota Chamber of Commerce posted 2011-2012 voting records for both the House and the Senate, focusing on issues of importance for you and your business.
    Minnesota Chamber 2011-2012 Voting Records
    (posted 6-28-12)

  • Frank Dutke, President and CEO of United Properties, briefed Metropolitan Council members on May 2nd on commercial real estate development in the region.
    The Met Council is in the process of working on the next generation of the Regional Development Framework and asked regional stakeholders to give their perspectives.

    Frank gave a historical, current and projected overview of the commercial real industry, educating Council members on how the business works and what’s important to its ease and success.

    To cite a few of his points:
    • Cost and regulations really matter—must be supported by market rents
    • Developers don’t create markets, they react to them
    • Scarcity of public resources demands more cost-effective and efficient government service delivery
    • Allocate resources to alternatives that are most likely to result in economic expansion
    • The interplay between risk and a reasonable rate of return
    • The impact of technology on job creation and the demand for space Thanks to Rick Collins and Pat Mascia for helping Frank prepare his remarks.

      More information on the Met Council’s Regional Development Framework
      (posted 5-31-12)

  • Matt Van Slooten, President of Carlson Real Estate Company, represents business property taxpayers on the Property Tax Working Group.
    The Property Tax Working Group was established by the Minnesota Legislature in 2010. The specific goals of this working group are:
    • to simplify the property tax system and make it more understandable;
    • to shorten the two-year cycle from assessment through property tax collection; and
    • to determine the cost versus the benefits of the various property tax components and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.

      More information on the Property Tax Working Group
      (posted 5-31-12)

  • David Bade, Director of Land Development Services at RLK Inc., represents commercial real estate developers on the Minimal Impact Design Standards (MIDS) Work Group, the next generation of storm water management.
    The group must report its findings to the Legislature by February 1, 2013.

    Historically, the goal of storm water management was to move water off the landscape quickly and reduce flooding concerns. Now the focus is on keeping the raindrop where it falls.

    The development of MIDS is based on low impact development (LID) — an approach to storm water management that mimics a site’s natural hydrology as the landscape is developed. Using the LID approach, storm water is managed on site and the rate and volume of predevelopment storm water reaching receiving waters is unchanged.

    The Minnesota Legislature allocated funds to “develop performance standards, design standards or other tools to enable and promote the implementation of low impact development and other storm water management techniques.”

    Members of the MIDS workgroup will provide guidance and recommendations to the MPCA on the MIDS project.

    More information on MIDS
    (posted 5-31-12)

  • Brandon Champeau, Development Manager at United Properties, represents commercial real estate developers on the MIDS Linear and Redevelopment Technical Team, which is a sub-group of the MIDS Work Group, formed in February 2012.

    More information on the MIDS Linear and Redevelopment Technical Team
    (posted 5-31-12)

  • Testifying at the Capitol:
    Representing the Nexus Task Force and all property tax payers in support of NAIOP’s expenditure type reporting legislation:
    • Paul Reinke, Senior Director – Development at Haugland Company, provided the perspective of a commercial property owner as well as a city council member.
    • Mark Haveman, Executive Director of Minnesota Taxpayers Association, provided the perspective of good tax policy and transparency for all taxpayers.
    Representing the business property taxpayer in support of the phase out of the State General Property Tax:
    • Mark Reiling, Senior Vice President, Principal, Cassidy Turley, provided the perspective of an owner/investor.
    • Doug Fulton, Executive Director, Brokerage Services, Cushman & Wakefield/NorthMarq, provided the perspective of a site selector/lease negotiator.
    • Pat Mascia, Senior Vice President-Minneapolis/St. Paul Operations, Duke Realty, provided an overview of the market both in Minnesota and nationally.
    • Adding the perspective of a business owner and business property taxpayer, were Kevin Bador, Executive Vice President, Japs Olson Company, in St. Louis Park and Steve Wise, President of Cass Screw Machine Products in Brooklyn Center.
      (posted 5-31-12)

  • State view: Access to details would make local government budgets easier to trim
    From the Duluth News Tribune, Wednesday, May 23, 2012

    “Last week I wrote a letter to the lawmakers who sponsored a great idea that was included in the tax omnibus bill vetoed by Gov. Mark Dayton last week. The great idea was requiring cities — and, I hope, all units of government, including school boards, eventually — to post four years of budgets by expenditure type on their websites.”

    “This would make city and other local government spending so much more comprehensible to voters and, frankly, to city council members. I know as a former city council member how dependent councilors can be on staff; you have to push to get behind the numbers. I could have done a better job with this kind of reporting. I can see greater accountability and leaner budgets as clear outcomes.”

    Kim Crockett is chief operating officer, executive vice president and general counsel for the Center of the American Experience, a nonpartisan, tax-exempt, Minneapolis-based public policy and educational institution.
    (posted 5-31-12)

  • Editorial boards across the state continue to support NAIOP's expenditure type reporting proposal

    A provision for transparency in local government
    St. Paul Pioneer Press, Thursday, May 10, 2012
    • "A bill in the Minnesota Legislature to require cities and counties to report more budget information -- in a way that helps citizens spot local spending trends -- could become law as part of a renegotiated tax bill. If it fails, it will be one of the 2012 session's missed opportunities."
    • "Dayton's signature on the tax bill will mean many things to Minnesotans. We hope it also will mean new transparency for local government units and the citizens who want answers that now are buried deep in city budgets."
    • The St. Paul Pioneer Press has been supportive of NAIOP's Expenditure Type Reporting since day one. 
    • Read the entire editorial.
  • A little more transparency in Faribault is a good thing
    Faribault Daily News, Thursday, April 26, 2012
    • "It's a good bill, one that empowers taxpayers and that deserves to be law."
    • "Far be it for us to suggest another state government mandate is a good thing, but the measure looking for more local government transparency may very well be just that."
    • Read the entire editorial.
      (posted 5-10-12)

  • From the Capitol - Tax 2 Bill
    On May 9, both the House and Senate passed the second tax bill, after Governor Dayton vetoed the first tax bill.
     

    NAIOP's provisions remaining in the tax bill:
    • A one year freeze on the State General Property Tax escalator.
      Originally, both the House and Senate tax bills had a complete phase out of the tax.  However, in conference committee that was changed to a permanent freeze on the statutory escalator on the tax, which ultimately became a one year freeze on the escalator.    
    • Expenditure Type Reporting proposal.
      This proposal requires cities and counties to break down spending by expenditure types in addition to program areas, which is the typical way budgets are presented.
  • It is possible that Dayton has or will have the Tax 2 bill on his desk today or tomorrow.   He then has fourteen days to either sign or veto the bill.  So, we wait.

    Thank you to all NAIOP members who provided great back up support by communicating with the governor's office.  

    Read NAIOP President Pat Mascia's letter to the Governor.

    Win or lose, we still have a lot of work to do and will continue with a vengeance.
    (posted 5-10-12)

  • Duluth, St. Louis County retirees see six-figure pensions 
    A Chicago-based watchdog group shows that 17 retired city or county workers receive pensions of more than $100,000 a year.
    • "At present, Public Employees Retirement Association of Minnesota (PERA) is only 76 percent adequately funded to meet its future commitments. The system would need another $4.4 billion to become fully funded."
    • "Solvency - or the assurance that 100 percent of potential pension payouts have money behind them - is mandated by state law by 2031. PERA is on track to reach that goal...."
    • According to David Montgomery, chief administrative officer for the city of Duluth: "Minnesota is not the worst out there, by far. But there is an issue... It's not an imminent, crisis-tomorrow issue, but if you let it go, the less time you have to make up any shortfall. And time is your best friend to make the impact of any change more moderate." 
      From the Duluth News Tribune, April 22, 2012

  • MNDOT's New Corridor Investment Management Strategy (CIMS)
    In the event you have an interest in MNDOT's CIMS, which will be rolled out this spring, the following links provide necessary information:
  • From the Capitol (as of Thursday morning, April 26)
    With the intent of adjourning three weeks early on Monday or Tuesday at the latest of next week, all negotiations are focused on the Omnibus Tax bill, the Vikings Stadium and the bonding bill.  

    Omnibus Tax Bill
    The conference committee appointed to work out the differences between the Senate and House tax bill hasn't met for three weeks. In the meantime, behind the scenes negotiating on the tax bill continues between legislative leadership and the governor.
    • Both the Senate and House tax bills contain the phase out of the state general property tax.
    • NAIOP's expenditure type reporting provision is in the Senate tax bill, but not the House tax bill.   

      Expenditure type reporting legislation
      We're being out gunned at the Capitol on this one. Simply put, cities and counties do not want this legislation passed.  They strongly resist taxpayers having easy access to the expenditure type information called for in the bill. They have significantly stepped up their lobbying efforts over the last few weeks, bolstered by the efforts of AFSME lobbyists.

      • In the House, the bill remains in the Ways and Means committee.
      • In the Senate, again, the bill's language is in the tax bill with hopes that the House accepts the language as part of the final omnibus tax conference report.  
        (posted 4-26-12)

  • Eric Anderson, Vice President of Development & Facilities at New Perspective Senior Living and chair of NAIOP’s public policy committee, writing to Senator Julianne Ortman, chair of the Senate Tax Committee on the Expenditure type reporting provision:
    “The result of this bill will allow taxpayers to better understand not just the costs of ‘programs’ that local government provides, but also how they spend the money to pay for the programs (salaries, services, equipment, etc.) ... The opposition to this appears to be more about not wanting the public to ask questions about how governments operate."

    Read Eric's letter.
    (posted 4-25-12)

  • Please take time to write a letter to Governor Mark Dayton and as soon as you can. Your message to the Governor can be as short and simple as "I'm writing to ask you to support the phase out of the State General Property Tax."

    Talking points and background information

    The Governor's contact information:
    The Honorable Governor Mark Dayton
    130 State Capitol
    75 Rev. Dr. Martin Luther King Jr. Blvd.
    St. Paul, MN 55155
    (651) 201-3400
    (posted 4-12-12)
  • It’s time for NAIOP members to contact Governor Mark Dayton:
    It's likely that the phase out of the State General Property Tax will end up in the Omnibus Tax bill and be presented to the Governor for his decision.
    • Pat Mascia, Senior Vice President-Minneapolis/St. Paul Operations, Duke Realty, and 2012 NAIOP Minnesota president, sent a letter to the Governor asking him to support the phase out of the state general property tax. Read his letter
    • A group of influential NAIOP leaders and members, experienced in commercial real estate ownership and management, are sending letters to Governor Dayton.
    • From the Capitol
      HF 389/SF 270, Interim zoning provided, municipal development contracts provisions modifications, and municipal development land dedication and fees provided.
      Fails on the Senate on a close vote after passing on the House floor. BATC will keep pushing this legislation next session.

      HF 1954/SF 1741, a bill for an act relating to local governments; requiring counties and certain cities to report additional budgetary information.
      Is still alive and well. In the Senate, the bill language is in the Senate Omnibus Tax Bill. In the House, the bill is in the House Ways and Means Committee.
      (posted 4-12-12)
    • Ramsey and Hennepin County Mortgage Registry and Deed Tax–Environment Response Funds
      Both the Hennepin and Ramsey taxes are set to expire and the extension of these two taxes isn’t getting enough traction at the Capitol.

      At the April 5th public policy committee meeting, the committee agreed that the money raised and spent on cleaning up polluted and contaminated land is important for redevelopment.

      If you have utilized or plan to utilize these funds and feel that the money raised by the tax is vital to contamination cleanup and economic development, you should contact the Tax Chairs at the Capitol and urge them to continue to impose the mortgage registry and deed tax.

      Lorrie Louder, St. Paul Port Authority, provides a background of the tax, its status at the Capitol, and other words of help in an April 5th email. Read her email on Environment Response Funds (ERF).

      A meeting at the Capitol with Representative Davids is scheduled for the 16th and Lorrie asks that you send your emails as soon as possible.

      Letter from the St. Paul Port Authority to Ramsey County re: ERF
      Ramsey County ERF talking points
      Facts about Ramsey County's ERF
      (posted 4-12-12)

    • The last day before Minnesota legislators left the Capitol for their spring break, Senator Terri Bonoff (DFL), Assistant Minority Leader, shared her views on the status of some key issues and major legislation with NAIOP’s Public Policy Committee.
      Read her update on issues including taxes, light rail, prevailing wage, and the Vikings.
      (posted 4-12-12)

    • HF 389/SF 270, Interim zoning provided, municipal development contracts provisions modifications, and municipal development land dedication and fees provided.

      This land use reform bill remains alive and is poised for floor votes in both the House and the Senate.
      Substantive changes amending out the moratorium provisions protecting completed applications and requiring a super majority vote to enact a temporary moratorium are likely to face strong opposition from DFL members in both bodies.

      The two remaining provisions of the bill provide important reform to applicants proposing development projects, aimed at creating a more efficient and equitable approval process for land use applicants.
      • The first major change requires park dedication fees to be negotiated with an applicant or be based on a current fair market appraisal of the underlying land value.
      • The other change in the bill requires that no term or condition may be included in a development contract which isn’t authorized by law or is mutually agreed upon by both parties.
      • Finally, the bill would require that the amount of financial security for work authorized under the development contract must have a rough proportionality to the work to be completed by either the municipality or the applicant.
        Link to HF 389
        Link to SF 270
        Thanks to James Vagle, Public Policy Director, Builders Association of the Twin Cities (BATC) for providing this summary.

    • HF 1954/SF 1741, a bill for an act relating to local governments; requiring counties and certain cities to report additional budgetary information.

      NAIOP Minnesota’s expenditure type reporting proposal continues to gather momentum.

      Amended bill language is in the Senate Tax Bill, which awaits floor action. The bill itself, SF 1741, remains in the Senate Tax Committee and can travel separately if necessary.

      In the House, the bill has had hearings in the following committees: Government Operations and Elections, State Government Finance, Property and Local Taxes, and Taxes. The bill has been re-referred to State Government Finance and after passage in that committee, it will be sent to the House floor with a recommendation to pass.

      Conversations with the Governor’s office regarding the legislation are in the works.

      Paul Reinke, Haugland Companies, and Nexus Task Force Chair, Mark Haveman, Minnesota Taxpayers Association, and Kaye Rakow, NAIOP, have been providing testimony, along with the bill’s authors, Senator Ted Daley, District 38 and Representative Keith Downey, District 41A.

      Link to HF 1954
      Link to SF 1741

      HF 2337/SF 1972, Omnibus Tax Bills, financing state and local governments, making changes to individual income taxes, property taxes, sales and use taxes, mineral taxes, liquor taxes, corporate franchise taxes, exemptions and deductions, and other tax related items.

      As reported frequently by the press, both of these bills contain a phase out of the state general property tax.

      HF 2337 has passed on the House floor and SF 1972 is waiting action on the Senate floor. After passage on the Senate floor, a conference committee will be appointed to work out the differences between the two bills before ultimately going to the Governor’s desk for action.

      Link to HF 2237
      Link to SF 1972
      (posted 3-29-12)
    • Minnesota Taxpayers Association announces the release of its annual 50-state property tax comparison study for taxes payable 2011
      State property tax rankings jump; commercial property tax rankings among nation’s highest
      • Urban commercial rankings and relative tax burdens rose significantly in 2011 and now rank among the top five in the nation, their highest level since 2000.
      • Both urban and rural industrial tax burdens increased relative to national averages. Industrial property taxes are 10% or more above the national average for all but the lowest valued parcels.
      • Complete elimination of the statewide levy in 2011 would have dropped Minnesota’s urban rank 11 spots (from 5th to 16th nationally for a $1 million-valued commercial property and 11th to 22nd for a $1 million-valued industrial property).
      • Regionally, Minnesota’s tax burdens are higher compared to all other Upper Midwestern states.
      • Regionally, Minnesota’s tax burdens are higher compared to all other Upper Midwestern states.
        Link to Executive Summary
        Link to Press Release
        (posted 3-29-12)

    • NAIOP Minnesota’s expenditure type reporting proposal continues to gather momentum
      • From the Capitol
        The bill is making its way through the legislative process. It’s been heard three times in the House and two times in the Senate. Amendments have been made to address issues related to timing requirements for reporting the information.
        • Two articles came out in support of NAIOP Minnesota's expenditure type reporting legislation, calling for more transparency in local budgets.
            • Minnesota State Rep. Keith Downey wants local governments to more clearly report the types of things they are spending money on. He thinks business owners and others with issues over property taxes would then be better informed.
              Read more.
            • Based on current policies and historical trends, city expenditures are expected to grow at a 5.5% annual rate through 2025 - a whopping 49% faster rate than city revenues, according to the League of Minnesota Cities.

              And the first two questions of every newly involved citizen should be, "just what expenses are growing and exactly why are they growing so fast?" Read more.
              (posted 3-15-12)
      • More information on expenditure type reporting:
      • From the Public Policy Committee
        Sen. Tom Bakk, Senate Minority Leader from Cook, MN, will be the guest at the next Public Policy Committee meeting. He’ll give his perspective on what’s going on at the Capitol.

        The committee invites all NAIOP members to join them. Here are the details:
        • Thursday, April 5, 7:45 – 9:00 am
        • NAIOP’s offices at The Harrington Company (directions)
        • Want to attend? RSVP to Kaye Rakow at kayerakow@harringtoncompany.com.

          House Deputy Minority Leader Debra Hilstrom was the guest at March’s meeting. She urges NAIOP members to get involved, and says that in her experience there has never been a time when “state government needed smart people as much as it does today.”
          Read a synopsis of their discussion.
          (posted 3-15-12)

      • Legislation of interest to NAIOP members:
        • Bills phasing out the state general property tax in both the House and the Senate will most likely be included in the final tax bills. This week, the House put out the first draft of its tax bill: “State general levy reduced and eliminated, additional property tax refund modified, and money appropriated.”
          Link to status of HF2337.
        • Interim zoning provided, and municipal development land dedication and fees provided.
          Link to status of HF389.
        • Hennepin county; watershed districts required to get municipal approval before acquiring property in the municipality.
          Link to status of HF2589.
          (posted 3-15-12)

      • Two recent editorials came out in support of NAIOP Minnesota’s expenditure type reporting legislation, calling for more transparency in local budgets.
        • The pitter-patter of bipartisan feet
          “It’s an itty-bitty piece” of legislation, if anything that “could be a baby step toward bigger bipartisan moves … this could be it.”
          Lori Sturdevant, Star Tribune Opinion Exchange, Sunday, February 19, 2012
        • Truth in Budgeting
          The legislature may require standardized reporting by counties and most cities beginning in fall.
          “Regardless of the political bickering and the hidden agendas-be they fictional or real-all sides should support greater transparency in government spending.”
          Dale Kurschner, Editor’s Note, Twin Cities Business Magazine, March 2012
        • FOR IMMEDIATE RELEASE
          From NAIOP Minnesota, the Commercial Real Estate Development Association
          Proposed legislation would require “aggregated expenditure type” reports by cities with a population over 2,500 and counties.
          Read the full press release.
        • More information on expenditure type reporting:
      • NAIOP members shine at the Capitol this week
        Testifying in front of the Senate Tax Committee meeting on Wednesday morning in support of the phase out of the State General Property Tax:
        • Mark Reiling, Senior Vice President, Principal, Cassidy Turley, providing the perspective of an owner/investor.
        • Doug Fulton,Executive Director, Brokerage Services, Cushman & Wakefield/NorthMarq, providing the perspective of a site selector/lease negotiator.
        • Adding the perspective of a business owner and business property taxpayer, was Kevin Bador, Executive Vice President, Japs Olson Company, in St. Louis Park.
        • Rounding out the presentation was Kaye Rakow, Director of Public Policy, NAIOP Minnesota, giving a brief overview of business property taxes in Minnesota.
        • Providing observation and support was Kim Ihle, CBRE.
        • Testifying previously in the Senate Jobs and Economic Development and House Tax Committees was Pat Mascia, Senior Vice President-Minneapolis/Saint Paul Operations, Duke Realty, along with Doug Fulton and Steve Wise, President of Cass Screw Machine Products in Brooklyn Center.
          (posted 2-23-12)

      • From the Director: Returning to Our Transparency Roots
        Based on current policies and historical trends, city expenditures are expected to grow at a 5.5% annual rate through 2025 — a whopping 49% faster rate than city revenues, according to the League of Minnesota Cities.

        And the first two questions of every newly involved citizen should be, “just what expenses are growing and exactly why are they growing so fast?”

        “One of my public policy heroes, Dr. John Brandl, commented long ago that ‘government organizations and the people in them can be entirely devoted to serving the public. They can also be self-serving, putting the convenience of the organization and its employees ahead of the interests and needs of its citizens.’”

        Read more.
        (posted 2-23-12)

      • Property tax system needs reform, not quick 'fixes'
        Column from Eric Wieffering on the phase out of the state general property tax.

        “Minnesota’s property tax system doesn’t need to provide relief for one particular group. It needs real reform, and our best hope for that may come from the property tax working group. Its recommendations are due a year from now. Until then, let’s resist the urge to bolt on any more ‘fixes.’”

        Read more. (Star Tribune, February 18, 2012)
        (posted 2-23-12)

      • The Fiscal Disparity debate will be heating up again.
        Read the recent Star Tribune article, "Tax-share program receives scrutiny," from January 31, 2012. A study of this program was required by 2010 laws and conducted by TischlerBise.

        The study provides information and analysis on:
        • Growth trends in the Twin Cities metro region;
        • Fiscal and economic conditions in the region;
        • The basics of the Fiscal Disparities program, including what has been said about it in the past and today, what the trends have been regarding the program’s impact on taxes and what the changes would be if the program were eliminated;
        • The potential “overburden” on jurisdictions — cities, counties, schools — from different types of land uses both under the current taxation system (with Fiscal Disparities) and a hypothetical scenario if the program were eliminated; and
        • Major policy considerations addressing criticisms, issues and praise for the program.

          Here are links to all aspects of the study:
      • The amount and number of development fees-especially park dedication fees-were identified as they issues by the Land Use Sub-Committee.
        Read more about their discussion.
        (posted 2-16-12)

      • Changing the rules, mid-game
        Land use spat pits developers against cities, environmentalists against business

        Imagine you’re a business owner, looking to construct a new building on property you’ve owned for many years. You spend several months and tens of thousands of dollars planning it. Finally, you submit your land use application to the city.

        Then you find out there’s a problem. Someone on the city council doesn’t like your project. They vote to adopt a one-year moratorium on new land uses, and while it’s in effect, they change the land use regulations so that your building can never be built.

        Does this seem fair to you?
        Rep. Mike Beard (R-Shakopee) sponsors House File (HF) 389 which would severely limit the abilities of cities, counties and townships to adopt what are known as “interim ordinances.”
        Sen. Warren Limmer (R-Maple Grove) sponsors the Senate companion, Senate File (SF) 270.
        Read the article. (Session Weekly, February 3, 2012)
        (posted 2-16-12)

      • Star Tribune Editorial Board comes out in favor of the phase out of the state general property tax
        We are working on many fronts and in many ways to support legislation to phase out the state general property tax. However, we're going to need everyone's help to get it done. So when asked to communicate with your legislator or the governor, please do so.

        Editorial: GOP has a better business tax idea (Star Tribune, February 5, 2012)
        • “Republican legislative majorities say now's the time to begin a multiyear teardown of the 11-year-old statewide business and seasonal-recreational property tax.”
        • "Dayton would do well to give the GOP alternative serious consideration.”

          However, Governor Dayton has a different proposal. (Star Tribune, February 5, 2012)
          • "After the disastrous first two weeks of the 2012 legislative session and another recital of business complaints, this session already feels the same as the last one. If those tactics and attitudes continue, there is little to look forward to."
          • "Bipartisan 'Jobs Now' legislation should be the Legislature's top priority. Other bills can wait until we have done our job to help put Minnesotans back on their jobs."
            (posted 2-16-12)

      • Help Minnesota residents see what drives public cost increases
        The St. Paul Pioneer Press editorial board supports NAIOP Minnesota’s transparency initiative.

        “A bill in the Minnesota House ... helps understand better what’s driving costs higher and could change taxpayers’ ‘why bother’ attitudes.”

        This supportive editorial is based on interviews with Paul Reinke, Senior Director – Development at Haugland Company, Oakdale City Council Member and NAIOP member; Rep. Keith Downey of Edina, chief author in the House; and Kaye Rakow, Director of Public Policy – NAIOP Minnesota.

        Some highlights from the editorial:
        • Rep. Downey: "We need to understand the spending behind tax increases to understand what can be done."
        • Paul Reinke: “With good information, ‘citizens can plug in constructively and help us’ serve the needs of the community.”
        • “Property taxes are an issue of deep concern for local businesses, and we appreciate the work done by the Minnesota chapter of the commercial real estate organization NAIOP and the Minnesota Taxpayers Association.”

          Read the editorial.
          (posted 2-1-12)

      • The GOP and the DFL have declared job creation as their number one priority of the 2012 session. While they share that goal, they differ in their approaches.
      • Senate Tax committee chair Julianne Ortman and House Tax committee chair Greg Davids are united behind a push to phase out the State general property tax in the 2012 session.
        Read the Finance & Commerce article, “GOP seeks phase-out of business property tax”
        Finance & Commerce, January 18, 2012

        Bills to phase out the state general property tax were introduced last week. NAIOP will be offering testimony in favor of the bill in front of the Senate Jobs and Economic Growth Committee.
      • NAIOP Minnesota's 2012 Property Tax Talking Points
        For Minnesota’s thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...

        --COSTS MATTER--

        ...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate. Read more.
        (posted 1-27-12)

      • NAIOP Minnesota’s transparency initiative
        Developed by the Nexus Task Force, NAIOP Minnesota’s transparency initiative requires local units of government to report certain cost drivers in their budgets, and has been adopted and made a part of the House majority Reform 2.0 initiative.

        Read the Reform 2.0 highlights.
        A separate bill, HF 1954, has been introduced on NAIOP’s transparency initiative. This bill requires counties and certain cities to report additional budgetary information.
        Read the bill.
        (posted 1-27-12)

      • With all of the energy and information available, shouldn’t it be easier to understand the who, what and why of property taxes?
        According to Jim Mulder, retired executive director of the Association of Minnesota Counties, and the Independence Party’s candidate for lieutenant governor in 2010, the entire tax system needs to be redesigned.

        Your property-tax calculation is here
        Star Tribune, January 14, 2012
        (posted 1-24-12)

      • “A Worse-Case Scenario”
        If Minnesota’s pension plans assumed an 8% return instead of an 8.5% return over the “forever” timeline, the biggest three statewide pension plans would immediately report an additional $2.9 billion in unfunded pension liabilities.

        Read more about the status of Minnesota’s public pension fund obligation and the necessary elements for reform.
        By Mark Haveman, Minnesota Taxpayers Association (MTA)
        MTA is NAIOP Minnesota’s research partner for the Nexus Project.
        Star Tribune, January 22, 2012
        (posted 1-24-12)

      • Metropolitan Council offers grants for Transit-Oriented Development (TOD)
        The purpose of this new program is to assist Livable Communities participants to implement transit-oriented development that demonstrates how increasing density around transit stations can reduce dependence on automobile ownership, vehicular traffic, and associated parking requirements that would otherwise be necessary to support a similar level of more traditional development, and encourage more transit ridership. Building on prior regional public investment in its transit infrastructure, the Metropolitan Council is requesting proposals for development sites that are located in the following areas:
        • Within a DEED designated Transit Improvement Area (TIA) or area eligible for TIA designation.
        • Within a one-quarter mile radius along designated high frequency local bus lines.
        • Within a one-half mile radius of a bus stop or station on designated high-frequency express routes.
        • Maps of eligible areas
          More information about TOD grants
          Applications for this first funding round are due February 15, 2012.
          (posted 1-24-12)

      • A Message to Governor Dayton and Minnesota's Legislators
      • “As we listen to our tenants every day, one message remains constant: costs really matter to them…and new, friendlier policies regarding business property taxes and regulation would go far in assuring their success and speeding Minnesota’s economic recovery, especially with regard to employment.”
      • Impact of Market Value Exclusion on C/I Property Tax Burdens in the Metro Area
        The average change in C/I property taxes payable is 1.71% or $1,842 for the hypothetical $3,000,000 C/I property. Increases range from a low of $930 to a high of $4,900. On a percentage basis, increases range from 0.88% to 4.51%.

        These numbers are based on the following assumptions:
        • No levy increases over payable 2011.
        • No changes to distribution of tax burden due to market-based valuation changes across property types.
      • Gary Carlson, director of intergovernmental relations for the League of Minnesota Cities, said the effects of the switch to the market value exclusion system will vary from city to city. But in general, he said, communities with many lower-value homes and small commercial-industrial bases will see the biggest tax shifts to commercial properties.

        See the chart prepared by the Minnesota Taxpayers Association showing the impact based on a $3million C/I property for selected metro area cities.
        (posted 1-12-12)

      • More on the Impact of the New Market Value Exclusion Law
        “As a result of this exclusion, a bigger share of the property tax burden in many cities is falling on owners of office and retail buildings who in turn pass along the tax increases to their tenants.”
        Pat Mascia, Senior Vice President–Minneapolis/St. Paul Operations, Duke Realty, 2012 President, NAIOP Minnesota

        Read the full article from the Star Tribune, January 6, 2012.
        (posted 1-12-12)

      • “What NAIOP is proposing in terms of legislation requiring cities of a certain minimum size to apply object code breakouts to their spending reports is really key.”
        Representative Keith Downey, House District 41A, Edina.

        Read about Representative Downey’s conversation with NAIOP Minnesota’s public policy committee at a recent meeting.
        (posted 1-12-12)

      • Have you found yourself complaining about the quality of candidates running for office?
        Have you found yourself complaining about the direction your political party is taking?

        Attend your precinct caucus on February 7, 2012.

        Precinct caucuses are meetings organized by Minnesota’s political parties to begin the process of selecting candidates for the 2012 election and policy positions to shape the party platform.

        Who can attend a precinct caucus and what do attendees do at these caucus meetings?

        Precinct caucus locations will be available soon; check back for details.
        (posted 1-12-12)

      • Will Pension Plans Run Out of Money?
        A new research report using GASB proposed metrics reveals risks of “depletion”

        “…The burden of proof now empirically resides with the elected officials and these plans’ officials to show that they have a strategy in place (or at least underway) to put their house in order.” The Minnesota Teachers fund is included in the list.

        This demonstrates the need for greater transparency in local budget reporting in Minnesota.

        Read Girard Miller’s article from Governing.com, December 8, 2011.
        (posted 1-12-12)

      • A report released in November suggested that Hennepin County fix a “piecemeal” system of watershed management in order to simplify the current water governance structure.
        The Minnesota Center for Science, Technology and Public Policy (CSTPP) made the following recommendations to the Hennepin County Board of Commissioners on November 3, 2011:
        • Consolidate the 11 existing watershed districts and water management organizations into 4 divisions based on hydrological boundaries.
        • Grant taxing authority to all water organizations in Hennepin County.
        • Improve coordination of water management planning between watershed districts/water management organizations and cities.
        • Implement coordination, oversight or enforcement between watershed organizations and the state.

          Read the full report.
          (posted 1-12-12)
      • State General Tax
        (posted 12-20-11)

      • For NAIOP Members who have asked for clarification on the new Medicare tax on “unearned” net investment income
        Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new tax will affect some real estate transactions, the National Association of Realtors (NAR) has prepared materials to clarify the new tax.

        Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000.

        NAR frequently asked questions

        Examples of different scenarios in which this new tax applies
        (posted 12-20-11)

      • The 8.5% dilemma
        Minnesota’s current 8.5% annual assumed rate of return on pension fund investments in the highest in the nation, according to a public fund survey conducted by the National Association of State Retirement Administrators. Last fall the Minnesota Pension Commission heard extensive testimony on whether the current 8.5% is too optimistic and what the implications would be if this assumption was lowered.

        How big of a deal would this be?


        MSRS: Minnesota State Retirement System
        PERA: Public Employees' Retirement Association
        TRA: Teachers’ Retirement Association

        It is only in pension finance that the discount rate for a liability is based on the expected return. Not in banking, not in investment banking, not in project finance, not in home mortgages of consumer finance—and not in government finance. No one else; nowhere else; nothing else.”
        --M Barton Waring, Pension Finance: Putting the Risks and Costs of Defined Benefit Plans Back Under Your Control

        Read more from the Minnesota Taxpayers Association on page three of their Fiscal Focus, November-December 2011, Volume XXXVII No. 6
        (posted 12-15-11)

      • New Laws Effective January 1, 2012
        Source: Minnesota House of Representatives, Public Information Services
        (posted 12-15-11)

      • Southwest Transitway
        On September 2, 2011, the Federal Transit Administration (FTA) granted approval to begin preliminary engineering (PE) on the region’s third light-rail transit project, the Southwest Corridor. The FTA blessing represents a significant step toward winning federal matching funds and building the 15-mile LRT line between downtown Minneapolis and Eden Prairie.

        Speaking to a standing-room only crowd, Hennepin County Commissioner Gail Dorfman and Patrick Connoy, Hennepin County Community Works and Transit Department, addressed the Public Policy committee and answered questions of particular interest to NAIOP members in regards to the Southwest Corridor, including:
        • What are the possible development opportunities along the line?
        • Why is the building of this line important to the region, economic development, over all transportation plan, etc.?
        • Where will the money come from for the capital costs of the line?
        • What are the anticipated operating costs and what are the proposed sources of that money?
        • Is anticipated that value capture methods or money from TIF districts will be used for any part of the financing? If so, how will that work? What approvals are necessary?
        • What are political, financial, and other challenges at this time and moving forward?

          Click here to download materials addressing many of these questions.
          (posted 12-2-11)

      • On the Frontlines at the Capitol for NAIOP Members and their Business Tenants
        Early in the session, Senator Geoff Michel, district 41/Edina, introduced a bill to reduce and ultimately phase out the state general property tax on business properties, a remarkable change in legislative tenor in and of itself.
        • Senator Michel immediately called NAIOP, as the first line of defense for business property taxpayers at the Capitol, to arrange solid supportive testimony for his bill.
        • NAIOP turned to Pat Mascia, whose testimony was “an important step in the demonstrating to many legislators the serious impact of property taxes on Minnesota businesses’ ability to compete and create jobs.”

          On behalf of all NAIOP members and business property taxpayers, we would like to acknowledge Pat for his dedication and advocacy. Read more.
          (posted 12-2-11)

      • Greater MSP CEO Michael Langley Briefs Public Policy Committee on Plans, Invites NAIOP to Serve on Group’s Advisory Council
        With an annual budget of $5 million (most coming from the private sector), Greater MSP’s charge is to recruit new companies to the 13-county region’s “economic ecosystem,” while encouraging those already located here to stay and expand.

        New Image for the Twin Cities: Prosper
        Star Tribune, October 11, 2011
        (posted 10-12-11)

      • Business Group Calls for More Transparency in Local Tax Data
        Kaye Rakow, Director of Public Policy, made a presentation to local business and government leaders in Willmar on NAIOP’s transparency proposal. A recap of the presentation was on the front page of the West Central Tribune the following day. The article captures the essence of our transparency proposal.
        West Central Tribune, September 23, 2011

        NAIOP members get the opportunity to see our transparency presentation on Thursday, November 10 at 7:45 am. Details to follow in future Universe This Week emails.
        (posted 10-6-11)

      • Snapshots: 2011 Legislative Session
      • Local view: Share government spending information with taxpayers
        “I realize property taxes are essential in delivering the local services we all need and want. I also fully recognize the serious nature of our city’s financial problems and the need to find ways to solve them. But our year-after-year increases in property taxes when property values, both commercial and residential, continue to fall, frankly, baffle me. As a taxpayer, I find it increasingly difficult to find out what these higher tax payments are actually buying for Duluth’s residents. Without having that information, it’s becoming harder and harder to sympathize with local officials when they call for even more revenue because of higher costs, even though inflation is flat and has been for several years."
        Bill Wilson of Duluth is an investor and the owner of several commercial properties.
        Duluth News Tribune, September 4, 2011
        Read the article.
        (posted 9-7-11)

      • More useful government spending reports needed
        “To intelligently cope with the influence of spending on property taxes, taxpayers must be able to quickly and easily understand the cost drivers behind local government spending. Financial reporting by object code would provide greater spending transparency for taxpayers."
        Dee Schutte is the executive director of the Litchfield Chamber of Commerce.
        Crow River Business, September 2011 edition
        Read the article.
        (posted 9-7-11)

      • Rep. Linda Runbeck: Standardized reporting needed for property taxes/Legislator Lingo
        “What are the cost drivers that are constantly increasing property taxes? What stands in the way of taxpayers addressing the spending issues at the local level? A “transparency” proposal from the folks at NAIOP (commercial property owners) points to some answers."
        PressPubs.com, August 16, 2011
        Read the article.
        Read the transparency proposal.
        (posted 8-19-11)

      • Our view: Minnesota failing to make grade on transparency
        “As Minnesota rebounds from their budget crisis, they need to put a priority on making their government more transparent and accountable to the people,” according Michael Barnhart, president of Sunshine Review, a nonprofit, nonpartisan, pro-transparency group.
        Duluth News Tribune, August 8, 2011
        Read the article.
        (posted 8-9-11)

      • "Cities of every size, in every region, will be broke by 2015..." according to a 2010 report by the League of Minnesota Cities.
        See a simple flyer on object code reporting.
        (posted 8-8-11)

      • It's time for more useful government spending reports
        "To intelligently cope with the influence of spending on property taxes, taxpayers must be able to quickly and easily understand the cost drivers behind local government spending. Financial reporting by object code would provide greater spending transparency for taxpayers."
        Dee Schutte, executive director of the Litchfield Chamber of Commerce, writing in the Litchfield Independent Review, on July 28, 2011.
        Read the article.
        (posted 8-1-11)

      • Your Turn: Details help taxpayers identify costs
        “Property taxes are necessary to maintain local services, but taxpayers should be able to clearly understand what our money is buying.”
        Mike McDonald of St. Joseph, MN, writing in the July 9, 2011 St. Cloud Times in support of NAIOP’s Object Code Reporting proposal.
        Read the article.
        (posted 7-21-11)

      • Joe Weis: What is your property tax money actually buying
        NAIOP and MTA believe reporting spending by object code would also greatly improve the quality of public debate over all spending and taxing decisions, eliminating the finger-pointing and blame passing that has dominated public discussion in the past.
        Read the commentary by Joe Weis, Weis Builders.
        Read more about standardized object code reporting.
        Rochester Post Bulletin, June 23, 2011
        (posted 6-23-11)

      • Minnesota House of Representatives announces new laws effective July 1, 2011
        Laws passed include the areas of agriculture, education, environment, and public safety.
        Read a quick summary of the laws.
        (posted 6-23-11)

      • Sewer Access Charges (SAC) Working Group
        John Ryden, Senior Vice President at CB Richard Ellis and Gary Lally, Senior VP of Development at Hoyt Properties, have agreed to represent NAIOP members on a SAC (Sewer Access Charges) working group.
        The Association of Metropolitan Cities and the Met Council environmental services plan to convene an informal working group to discuss issues related to SAC  charges applied at the time of retrofitting space or redeveloping property. In addition to Messrs Ryden and Lally, there will be representatives from cities, the St. Paul Port Authority, the Met Council, and the general business community. Please contact either Mr. Ryden (john.ryden@cbre.com or 952-924-4641) or Mr. Lally (garyl@hoytproperties.com or 612-746-5021) if you have any pearls of wisdom for them when representing building owners on this working group.

        Background
        SAC applied by the Met Council Environmental Services (MCES) at the time of retrofitting space or redeveloping property have been causing a lot of frustration and confusion among NAIOP members.
        They have expressed a notable change, an inconsistency in the way charges are currently being implemented and a significant increase in cost. 
        Read about the problem, the impact for the commercial real estate industry, and a quick summary of how the MCES operates.
        From the conversation with Jason Wilette, finance director for the Met Council's Environmental Services, at the May 5th Public Policy Committee meeting.

        Issues related to SAC will also be discussed at the Met Council Industrial Waste Customer Forum
        The main topic:  Met Council Environmental Services (MCES) rates and Industrial Rate System information
        Tuesday, June 21, 2011
        8:00-9:30 a.m.
        MCES meeting room at the Metro 94 Business Center, 455 Etna Street, Suite 32, St. Paul
        RSVP:  651-602-4711
        Read the full meeting notice
        (posted 6-20-11)

      • NAIOP Minnesota wants to acknowledge and thank Twin Cities Business and Dale Kurschner, Editor in Chief, for supporting our efforts on government transparency.
        Past TCB coverage of our initiative includes:
      • Goal to Uncover the Drivers Behind Property Tax Rates
        “While taxpayers, including businesses, and elected officials can debate the proper levels of taxes, having a good understanding of the ways in which tax dollars are spent should be an idea on which all sides agree.”
        Big Fat Finance Blog, Karen Kroll, June 1, 2011
        Writing about NAIOP Minnesota’s transparency project and OpenGovernmentMN.com
        (posted 6-8-11)

      • Is Tax Relief Still a Possibility?
        “Real estate industry backers were rewarded with a receptive audience at the Capitol. For the first time most legislators largely agreed the general levy not only shouldn’t be raised, but indeed be rolled back.” Kaye Rakow, NAIOP Minnesota and Rich Forschler, Faegre Benson talked with MNCAR members.
        Read the recap article in the business section of the Star Tribune, June 6, 2011 by Don Jacobson
        (posted 6-8-11)

      • The Sunlight Weekly Roundup in Washington, DC, writes on NAIOP’s transparency initiative
        “There is a group improving local government transparency in Minnesota by pushing for standardized financial reporting with details of the state’s spending including public officials’ salaries and expenses. OpenGovernmentMN.com is proposing a business-like approach “Object Code”, to provide access to data that can be used to create an open public discussion.”
        Read the article.
        (posted 6-8-11)

      • Dissecting city spending
        I don’t think I’m unique in not recalling a single time when my tax statement—whether the value of my home was up or down—did not call for more money than I paid the year before … my puzzlement over what caused those constant increases was shared by my equally baffled neighbors. When we asked our elected officials, we were greeted with the usual finger-pointing: the city blamed it on cutbacks in state aid, the state fingered the city for excessive spending. As a result, taxpayers have great difficulty understanding what underlies local spending decisions, including what is mandated by state and federal governments and what local government can control itself.

        Read the commentary by Michele Foster, Foster Real Estate Services.
        Read more about standardized object code reporting.
        SouthWest Journal, May 2, 2011
        (posted 5-3-11)

      • More details, more power to the people
        Property taxes are necessary, hard to fathom and sometimes painful to pay. They can increase when our property values go down? And the opposite can also be true? Say what?

        Hard to fathom is right. But one constant in property taxes is spending by local governments — the cities, counties and school districts whose levies make up most of the property tax bill. Keeping a foot on the brake of local spending is one important way to keep property taxes within reason.
        Pioneer Press, April 27, 2011
        (posted 5-3-11)

      • 50-State Property Tax Comparison Study
        The Minnesota Taxpayers Association just updated their 50 state property tax rankings for payable 2010. Again, their study continues to show a high burden for business properties in Minnesota. A couple of key findings from that report for business property taxes include:
        • Homestead taxes remain modest compared to neighboring states and are below the national average.
        • Urban and rural $25 million commercial properties and rural $1 million commercial properties are all still ranked well within the top 10 nationally.
        • Industrial burdens generally range from 10% below national averages to 20% above national averages depending on property values and location within the state.
        • And, even though commercial properties in Minnesota have experienced significant competitive improvement since 1995, when comparing three different property values of commercial buildings in Minneapolis, property taxes payable are still 12-44% above the national average. When comparing three different property values on commercial buildings in Glencoe, property taxes payable are 19-54% above the national average.
          (posted 4-29-11)

      • Minnesota Organizations Push for Transparency in Government Spending
        NAIOP Minnesota, the Minnesota Taxpayers Association, and the Minnesota Chamber of Commerce plan to draft legislation requiring all government entities to use the same structure to report how they budget and then spend taxpayer dollars.
        Twin Cities Business, April 19, 2011
        (posted 4-20-11)

      • Minnesota Senate passes a cut in business property tax bills
        Ending state tax would return $700M to payers; odds of passing slim.
        Finance & Commerce, April 6, 2011
        (posted 4-18-11)

      • Q: What does greater transparency in government spending have to do with property taxes?
        A: Everything!
        It's time to unveil the drivers behind the rising cost of public services and the demand for increasing local tax revenues.
        Read more.

        Transparency Proposal Talking Points for NAIOP members
        Transparency Proposal FAQ
        Transparency Proposal Press Release, Initiative to Spur Greater Transparency in Local Government Spending Launched by NAIOP Minnesota

        Ultimately local government spending drives property tax levies and, in turn, property taxpayers’ bills. This is the most influential piece of the property tax system. It is also the most important and—in many ways—the most challenging element for taxpayers to understand.
        (posted 4-11-11)

      • NAIOP introduces OpenGovernmentMN.com
        OpenGovernmentMN.com has been established as an online resource and central repository of research, news and other information useful in informing Minnesota taxpayers and encouraging public debate and involvement.
        (posted 4-11-11)

      • Report finds the cost of providing government services should be reformed.
        The research provided in NAIOP’s Compensation report is presented by the Minnesota Taxpayers Association (Aaron Twait) at a forum organized by the Willmar Chamber of Commerce. “This is not a public employee bashing exercise”, said Twait, as a preface to his summary of the study, which was funded by the Minnesota Chamber of Commerce and NAIOP Minnesota, the commercial real estate development association. But Twait said fringe benefits, like public pensions and health benefits that have “exploded” in the past decade need to be reformed. Published in the West Central Tribune on Saturday, April 2, 2011.
        (posted 4-8-11)

      • Local government aid—rules flow in, money flows around.
        The time for political posturing is long gone, and it is time for people to get to work on the real issue: What does government really need to do at each level? And, when we get that figured out, what is the fairest way to pay for it? Appearing in the Star Tribune on March 16, 2011.
        Read more.

        • Steven Dornfeld: Local government aid – counterpoint. Republican state lawmakers have proposed slashing the 40-year-old program of state aid to Minnesota cities, while DFL Gov. Mark Dayton wants to preserve the status quo. Nobody seems to be talking about a more thoughtful and constructive option—redesigning the program to make it more equitable, efficient and effective.
          (posted 3-24-11)
      • A myth-busting look at property taxes.
        Think local levies punish mainly outstate regions and central cities, leaving suburbs unscathed? New data could make you think again. Appearing on the front page of the Opinion Exchange section of the Star Tribune, Sunday, March 6.
        Read more.

      • Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.

        Read the February column, Claims of a property tax crisis outstate may be overblown, appearing in the February 11th issue of Finance & Commerce.

        The ability to pay taxes is a function of how the economy is doing, and at least in some outstate areas, communities have appeared to weather the recession reasonably well. Department of Revenue data indicates that from 2008-2010— representing the heart of the Great Recession—total commercial and industrial property values fell by over $3.2 billion just in Hennepin County alone. Commercial-industrial property values in Anoka, Washington, Dakota, and Ramsey counties declined by an additional $1.7 billion. But 54 of Minnesota’s 87 counties experienced commercial-industrial property value increases during this period and 13 counties actually experienced double digit growth. This is important because Minnesota businesses are finding themselves in the political crossfire on the controversial issue of aids to local governments.
        (posted 2-24-11)

      • What’s in your budget? We need to better understand how government is spending our money.
        Imagine, the ability to easily understand how your taxes are being spent and how those using them are being held accountable. But the efforts by NAIOP, MTA, and the chamber at least point us in the right direction.
        Read more.
        (posted 2-24-11)

      • An alert to NAIOP members:
        For release from the Nexus Task Force on February 15, 2011:
        the Open Government in Minnesota Report

        The many publications and resources designed to help taxpayers navigate and understand Minnesota’s property tax system do a great job of discussing the interconnected pieces of the system and how they work. But the most influential part of the property tax system is local government spending. It ultimately drives property tax levies, and in turn, property taxpayers’ bills.

        This 16 page report examines the issues impacting the ability of property taxpayers to make informed judgments about local spending and the use of their property tax dollars and identifies three requirements to enhance those judgments.
        Read more
        (posted 2-15-11)

      • Orchestrated by NAIOP’s Nexus Task Force and authored by Mark Haveman was the headlining commentary from the Opinion Exchange section of Sunday, January 30th’s Star Tribune. Material for this article was taken from the Minnesota Public Sector Compensation Report, released by the Nexus Project in December.

        Read commentary: To Break the Cycle of Failed Government Reform, Address Civil-Servant Productivity

        Public-worker pay is disconnected from results. Without change, we consign ourselves to lower services, higher taxes, or both.
        (posted 2-4-11)

      • Applause for bill to limit business property tax and bipartisan support on plan to reduce ‘burdensome’ levy.
        “The proposed reduction in state property taxes was hailed by the Commercial Real Estate Development Association."
        Read the article on Senate File 1, appearing in Finance and Commerce on February 2nd.
        Read the bill.
        (posted 2-4-11)

      • Senate File 1 reduces the State General Property Tax to 2009 levels and eliminates the automatic annual increase
        As a point of reference, the State General Property Tax has increased by 34% since the first year payable, 2002. For taxes payable 2011, the tax will raise $795 million for the state general fund. If passed, the amount payable will be fixed at $757 million beginning in payable 2012. As in current law, of the total amount, 95% ($717 million) will be paid by C/I properties and 5% ($40 million) will be paid by seasonal recreational properties.

        See the history of the State General Property Tax Levels (2002-2011).

        Authored by Senators Amy Koch and Geoff Michel, the bill also reduces the corporate income tax by 50% over the course of six years, provides for more efficient DNR permitting and modifies environmental review requirements. The biennial cost of the bill is roughly $200 million.
        Read the bill.
        (posted 1-11-11)

      • Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.

        Read the January column, Property owners see shifting tax burdens during recession, appearing in the January 5th issue of Finance & Commerce.

        The basic math of classification causes commercial taxable value to rise faster than residential taxable value in good times but fall faster in bad times, putting pressure on homeowners’ property taxes.
        (posted 1-7-11)

      • Department of Revenue (DOR) announces a 2.6% increase in the State General Property Tax, a property tax paid to the state by business and cabin properties, only.
        -
        A chart showing the history of increases in the state general property tax - a 34% increase since 2002.
        - The DOR's calculation of the state general property tax.
        (posted 12-14-10)

      • Released to the General Media on Thursday, December 9
        Discussions over the cost of government swiftly move to the cost of labor, as government at all levels is a labor intensive enterprise. NAIOP Minnesota partnered with the Minnesota Chamber of Commerce to produce the study, Minnesota Public Sector Compensation, the first report which examines state and local government employee compensation levels and design. The research was conducted by the Minnesota Taxpayers Association.
        Read the press release, report and highlights.
        (posted 12-9-10)

      • Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.

        Read the December column, Transparency in Budgeting: "More than Just a Data Dump," appearing in the December 2nd issue of Finance & Commerce.

        Truth in taxation statements, just delivered to property owners across Minnesota, are undoubtedly triggering shock and frustration. The shock comes from the numbers they contain; the frustration comes from the absence of any information on just why taxes are going up.
        (posted 12-3-10)

      • NAIOP’S Greg Munson Part of Planning Task Force for Innovative MnDOT/DEED Transportation Economic Development Program
        An innovative pilot program that will make $39 million available to Minnesota communities for highway improvements and public infrastructure projects that support economic development, road improvements and job creation has been launched jointly by the Minnesota Department of Employment and Economic Development (DEED) and the Minnesota Department of Transportation (MnDOT). Read more.

        More information about the TED program, including the solicitation and application forms, is available at http://tinyurl.com/PositivelyMinnesotaTED.
        (posted 11-9-10)

      • Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.

        Read the November column, Public-sector management needs private-sector tactics, appearing in the November 4th issue of Finance & Commerce.

        Cost and competitive pressures have forced private-sector organizations to jettison hierarchical, bureaucratic workforce-management practices and rethink compensation systems. But public sector human resource systems are still highly command and control oriented …
        (posted 11-5-10)

      • A Counterpoint to Council Member Betsy Hodges’ commentary
        Minneapolis Council Member Betsy Hodges’ commentary (Oct. 4th) attributes part of the increases in homeowners’ property tax bills to “disproportionate” relief granted to business property owners by the Legislature.

        Read Mark Reiling’s letter to the editor, appearing in the November 1st issue of the SouthWest Journal.
        (posted 11-1-10)

      • 2011 Business Day at the Capitol
        Save the date!
        Wednesday, March 16
        Crowne Plaze, St. Paul Riverfront
        (posted 10-25-10)

      • We’ve dug ourselves into a really big hole
        That’s Legislative Auditor James Nobles’ take on the state’s pension system.  How did it happen?  And how long a ladder might taxpayers need to provide?

        Read article published in Twin Cities Business, November 2010 edition.

        Thanks to the ground work laid by the Nexus Task Force, NAIOP was able to arrange for this article to be written and placed in Twin Cities Business.
        (posted 10-20-10)

      • Dave Sellergren hangs up his jersey as chair of the Land Use Subcommittee...
        Dave Sellergren, Fredrikson & Byron, has played the role of smart policy analyst and wise advisor to a succession of chapter presidents and public policy committee chairs.  According to one past president, "Dave was able to take complex legislative language, think it through, eliminate the junk, and fluff, and tell us how it might affect us in the commercial real estate development industry."

        ....while Brian McCool and Greg Munson step up to fill the big shoes he left behind.
        Brian McCool, Fredrikson & Byron, is particularly concerned about what he describes as the unpredictable "fallout" from the state's fiscal crisis, which would have an impact on land use.   "We can expect a variety of new or increased regulatory costs, like impact fees, storm water fees, the costs of new infrastructure, as well as new approaches to 'smart growth' to be imposed directly on developers and their projects."

        According to Greg Munson, McGough Development, continuing issues must be monitored closely-particularly the planning of infrastructure by the Met Council and new sources and levels of transportation funding, "because of the close way in which transportation and land use are intertwined."
        Read interviews with these illustrious NAIOP leaders.
        (posted 10-15-10)

      • NAIOP commentaries in Star Tribune and Finance & Commerce
        We were successful in placing two commentaries authored by Mark Haveman, Minnesota Taxpayers Association.

        • Local Government Aid: There’s a Catch. “It creates perverse incentives. It goes to the wrong places and pays for the wrong things. And we can’t afford it.” Star Tribune, Wednesday, October 6, 2010
        • Redesigning State Government Isn’t Easy. “Will our legislators and our next governor have the political courage to take on the serious public administration reforms needed to allow government redesign to thrive and prosper?” Finance and Commerce, Wednesday, October 6, 2010
          (posted 10-15-10)

      • As if the terrible state of the economy were not enough, a recent decree on the granting of variances has heaped additional fuel on the already stressed state of commercial and residential real estate development in Minnesota.
        Linda Fisher, Larkin Hoffman, has agreed to represent NAIOP members in the coalition assembled by the League of Minnesota Cities to "fix the situation." 
        From the League of Minnesota Cities:

        Supreme Court Decree on Variances is Confusing to Developers
        (posted 10-15-10)

      • Is it true that Grandma will have to pay a 3.8% tax when she sells her house?
        This rumor is floating around concerning one of the provisions of the recently passed Health Care bill. Grandma will not have to pay a 3.8% tax when she sells her home.  However, the new 3.8% tax does apply to "unearned income" for individuals making $200,000 plus or couples making $250,000.

        According to Toby Burke, NAIOP Corporate, "The implications of this new tax as part of the health care bill are still being reviewed."

      • The Changing of the Guard
        Thank you Pat Mascia, Senior Vice President, Twin Cities Operation, Duke Realty, for chairing the public policy committee for a two-year term. "We have been focusing our attention, over the past two years, on positioning ourselves for the battle ahead. We've launched the Nexus Project, a big step toward broadening the availability of information available to taxpayers, have proactively created new partnerships, built broader coalitions, and worked hard to make more friends among key legislators."

        Stepping in to chair the committee for the next two years is Eric Anderson, Director of Development, Ryan Companies, US, Inc. Anderson agrees that NAIOP should continue to develop "more active partnerships with key legislators. We need to help them begin looking at government differently, focusing on the cost side, on the high degree of duplication of services and bureaucracies at every level--literally turning government on its head."

        Replacing Eric Anderson as chair of the Nexus Task Force is Paul Reinke, Senior Director of Development for the Haugland Company. Reinke sees his role as the new leader of the landmark Nexus project as one of "significantly increasing the level of understanding of our members, taxpayers, and policy makers of the realities that drive local government spending decisions."
        Read interviews with these three illustrious NAIOP leaders
        (posted 10-6-10)
      • Will the legislature raise business property tax?
        Published in Finance and Commerce, September 9, 2010

        Click here to view full chart

        Why would legislators single out business owners and their buildings for a big tax hit as part of the budget fix?
        The simple answer is that they are politically safe targets. Businesses do not vote. Therefore, some legislators may be eager to turn to the easiest, and politically most safe, solution: let the state’s businesses pick up a substantial portion of the budget shortfall by increasing the statewide “general” tax (a tax paid directly to the state only by businesses, public utilities, and cabin owners) or by upping the classification rate on commercial-industrial properties.
        Read full article
        (posted 9-13-10)
      • If there is an homeowner property tax affordability crisis, it’s much more likely to be in the metro area, not outstate. A recent report by the Minnesota Department of Revenue provides an important perspective on how significant the ability-to-pay problem really is.
        Read the latest Nexus Notes from the Nexus Project, written by Mark Haveman, Executive Director, Minnesota Taxpayers Association and appearing in the July 15th issue of Finance and Commerce.
        The short article includes a chart comparing homeowner property tax burdens between metro regions and greater Minnesota regions.
        (posted 8-10-10)

      • NAIOP Minnesota's Nexus Task Force: The Way Forward - Comprehensive Government Redesign
        "Government works in a very different way - it is like a dance. 'I will give you what you want, if you give me what I want.' In business, on the other hand, you set an objective, a strategy for achieving it, and the tactics needed to get there. The difference makes changing government really difficult."
        - Senator Terri Bonoff meeting with NAIOP's Nexus Task Force
        Click Here to read the conversation NAIOP Minnesota had with State Senator's Terri Bonoff and Ann Rest.
        (posted 5-21-10)

      • State view: Legislators: Please listen
        By: Michael Norby, Duluth News Tribune
        Duluth news tribune commentary cites NAIOP comparative tax study.
        “Legislators in St. Paul have seen this data for years, showing the disparity in business climate. But the graph showing tax burdens really struck me this year.”
        Read the full article
        (posted 4-13-10)

      • Study: Minneapolis is among pricier cities for corporate HQs
        Minneapolis' property taxes were the main reason for its relatively high ranking.
        Read more
        (posted 4-13-10)

      • A Conversation with Dr. Cy Smythe
        “I believe that real change in how cities and government bodies operate will come, not because of political will, but because they are out of money. That’s the glimmer of hope in all this – that we are going to run out of money!”

        The Nexus Task Force has a conversation with Dr. Cy Smythe.
        (posted 4-13-10)

      • Nexus Notes: Public Pensions in Minnesota – A Primer for Taxpayers and Policymakers
        Among the many challenges facing Minnesota’s policymakers and taxpayers is what to do about underfunded public pension plans. It’s worth taking a closer look at these retirement plans to better understand how they work, their current condition, and the potential costs to taxpayers of repairing them.

        Read full report.
        (posted 2-18-10)

      • Snapshot of 2009 Public Policy Activities, spearheaded by the Public Policy Committee and Chair, Pat Mascia, Duke Realty Corporation. Thank you to the Board of Directors and all NAIOP members who participated and contributed to our success this past year.
        (posted 12-8-09)

      • "It's ironic that a program (Local Government Aid, or LGA) intended to foster greater equity in local government service delivery across the state creates greater inequity among public employees with respect to health care benefits," notes Mark Haveman, Executive Director of the Minnesota Taxpayers Association. "Based on one year of data, LGA is a far greater determinant of differences in health care benefits than any other revenue source."
        Press Release
        Full Report
        www.mntax.org/cpfr
        (posted 6-10-09)
      • State Aid to Cities Enables Greater Spending on Employee Health Care Benefits
        On June 9, the Minnesota Taxpayers Association release their report, "Health Care Spending By Minnesota's Cities - Costs, Efficiencies, and the Role of Local Government Aid."
      • The 2009 Legislative Session: Forschler and Rapp 'Wrap It Up' for the Public Policy Committee
        Read a summary of the energetic discussion in front of a standing-room only crowd at the Public Policy Committee meeting on June 4.
        (posted 6-10-09)
      • “We are entering an area of policy and politics in Minnesota that is absolutely unique.”
        --Todd Rapp, Himle Horner
      •  “Expect a big fight.”
        --Rich Forschler, Faegre & Benson, speaking of the statewide property tax.

        On January 8th, Todd Rapp and Rich Forschler led a discussion at the public policy committee meeting on the state budget outlook and the 2009 legislative session. 
        Read a brief summary of their presentation.
        (posted 1-14-09)

      • “Minnesota has a long-term structural budget problem, with long term expenditure growth likely to outpace revenue growth.”
        --Budget Trends Study Commission Report released on January 12th.
        The Budget Trends Study Commission was charged by the 2007 legislature to examine changing demographics and the subsequent fiscal impact on the long-term stability of the state budget. These demographic trends are about to transform Minnesota’s public sector, permanently changing our expectations for economic growth and government services.
        Full Report
        Executive Summary
        (posted 1-14-09)
      • Falling Revenues and Higher Spending Drive State Budget Outlook
        FY 2010-11 revenues will be 1.8% below levels forecast for the 2008-09 biennium, while current law spending is expected to grow by 6.1 percent over FY 2008-09 levels. Projected expenditures are concentrated in health care programs
        Highlights of the November Budget Forecast prepared by Minnesota Management & Budget.
        (posted 12-9-08)
      • The Election Is Over. Now What?
        Read a summary of the lively presentation and discussion lead by Rich Forschler, Faegre Benson and Todd Rapp, Himle Horner, from the Public Policy Committee meeting last week.
        (posted 11-11-08)
      • Fiscal Rarity
        A pioneering system of public financing survives an unusually tough test.
        Read Dave Beal's Capital Beat article, written for Twin Cities Business, on the fiscal disparities challenge during the 2008 legislative session.
        (posted 11-11-08)
      • We are pleased to announce that Pat Mascia, Duke Realty, will take over as chair of the Public Policy Committee when the 2-year term of Steve Schwanke, RLK, Inc. expires on September 1st

        “The greater our focus, I believe the easier it is for us to become involved and the more likely we are to have a significant impact on the course of the debate,” according to Pat.  Read more.
        (posted 8-4-08)
      • Eric Anderson, Ryan Companies, will chair the Economic Development Incentive Task Force established to thoroughly and thoughtfully study the issues surrounding development incentives and subsidies and to help determine the most effective contribution NAIOP can make to the debate.  The task force is encouraged to “think big” with a 360-degree perspective in a series of research and study sessions. 
        Read the executive summary of the project.
        (posted 8-4-08)
      • Big Challenges Ahead
        Obviously, what happens in Washington next year depends on who gets elected. But lobbyists say a few things are certain: A new president will enter with an ambitious legislative agenda and Congress will continue its work on large complicated bills, like climate change.
        Read how the K-Street lobbyists are preparing for 2009 on issues such as climate change, transportation, ethics, regulations, and labor protection.
        (posted 7-2-08)
      • Doug Fulton Named Chair of Minnesota Chamber of Commerce's Transportation Policy Committee
        Doug Fulton, currently serving NAIOP’s 1,000 plus members as second vice president, member of its board of directors, and 2010 “president-to-be" has been named chair of the Minnesota Chamber of Commerce’s important Transportation Policy Committee. “With the passage of the landmark transportation funding bill in the 2008 legislature, the focus of the committee will be on the efficient implementation of work and investment in the state’s infrastructure."said Fulton, senior director of Cushman & Wakefield.
        Read more about Doug and the work of the MNCC Transportation Policy Committee.
        (posted 6-17-08)
      • Speaking to the Minnesota Chamber’s transportation committee, on April 14th, Bob McFarlin, Acting Commissioner of the Minnesota Department of Transportation (MnDOT), made the following points concerning transportation funding and HF2800:
        • “The nature of HF2800 mandates that the state’s bridges are examined and repaired within 10 years, and also returns MnDOT to bread and butter work—preservation of pavement, preventative maintenance.”
        • “Efficiency in transportation means getting to contracts quickly and getting projects done ASAP, not just the amount of construction costs.”
        • “HF2800 is going to really, really good things for the state, but setting realistic expectations is very important. There is a lot to invest in but we won’t be able to solve everything for everyone.”
        • “We accomplished great things with the 2003 bonding bill and contrary to what some legislators say, the debt from that bonding isn’t an albatross around our necks.”
          (posted 4-17-08)
      • “The truth is, as a department, we do want to support the economic development of local communities and of the state,” but, in this new reality, “all of us may have to lower our expectations” in terms of highway speed, driving times and congestion.
        Peggy Reichert, MnDOT, spoke to the public policy committee at their April meeting.
        Click here for a summary of her presentation.
        (posted 4-11-08)
      • Triple Five Again Seeks MofA Expansion Rebate
        (posted 4-11-08)
      • "Real estate groups spar with Mall of America over funding"
        Article from Minneapolis/St. Paul Business Journal, April 4, 2008
        (posted 4-7-08)
      • "We respectfully request that legislators oppose the use of the metro fiscal disparities pool to subsidize the MOA Phase II."
        Letter from the Citizens League to members of the Minnesota Senate, April 2, 2008
        (posted 4-7-08)
      • "Spend Smart and Live Within Your Means" message for the state's projected
        $935 million budget shortfall.
        (posted 3-11-08)
      • February 2008 State Budget Forecast for FY 2008-09
        Quick snapshot prepared by the CMB (Coalition of Minnesota Businesses)
        (posted 3-11-08)
      • NAIOP's 3-Point Position on Fiscal Disparities
        (posted 3-5-08)
      • Chapter Wins Publication of the Year Award
        The Minnesota chapter won "Publication of the Year" at the NAIOP Chapter Merit Awards in Washington, D.C. on February 11th for "Family Night at the Movies!".

        "Family Night at the Movies!" is a publication detailing how business property taxes are a regressive tax that every Minnesota family pays through the products and services they buy.
        Download the full publication
        (posted 2-13-08)
      • Short Bonding Session to Convene on March 12th Amid Budget Shortfall Concerns
        Minnesota Session Preview prepared by Faegre Benson.
        (posted 2-11-08)
      • Bonding Session? What is a Bonding Session?
        (posted 2-11-08)
      • “Business seems to be getting a tainted view of the economy from the media reports they read, at the same time that they see their own businesses receiving solid orders and enjoying steady growth.” Toby Madden, Regional Economist for the Federal Reserve Bank of Minneapolis, speaking to a standing-room only group of NAIOP members at the January public policy committee meeting.
        Read a summary of Mr. Madden’s comments.
        (posted 1-16-08)
      • Governor Pawlenty announces 2008 bonding proposal - Transportation/infrastructure accounts for the largest portion of the proposal – nearly 40% of the entire package.
        Read the key points.
        Read the summary of recommended projects
        (posted 1-16-08)
      • Behind the numbers: A simple one-page look at the November 2007 State Budget Forecast for FY2008-09 (7-01-07 to 6-30-09).
        (posted 1-16-08)
      • A task force of savvy NAIOP members was formed to develop a policy position on the Fiscal Disparities Program, funded entirely by C-I property taxes in the seven-county area, in preparation for the 2008 legislative session. Read their final report.
        (posted 12-11-07)
      • NAIOP members in Senate District 60 met with their state legislative delegation: Speaker of the House, Margaret Anderson Kelliher, Senator Scott Dibble and Representative Frank Hornstein.
        Read quotes taken from the meeting concerning the Minnesota’s economic climate, the budget, transportation, public pensions, education, government spending, etc
        (posted 12-11-07)
      • “The business community has a responsibility to get educated and involved in the fiscal disparities debate.”
        --Representative Ann Lenczewski, DFL, Bloomington and Chair of the House Tax Committee speaking to the Minnesota Chamber Fiscal Policy Committee on November 1, 2007.
        Read a quick snapshot of her comments to the committee.
        (posted 11-5-07)
      • "Border battle for business is going strong"
        St. Paul Pioneer Press, Dave Beal, October 7, 2007

        NAIOP's Comparative Tax Study referenced in article.
        (posted 10-16-07)
      • Clean Water: An Emerging Challenge to NAIOP Developers
        Mike Robertson, Policy Consultant on Clean Water to the Minnesota Chamber of Commerce, spoke at the October 1st Public Policy Committee Meeting
        (posted 10-16-07)
      • Transportation Now A ‘Front & Center Issue’ For NAIOP
        (posted 9-11-07)
      • Governor Pawlenty continues to hold the position that scheduling a potential special session will be contingent upon detailed agreement being reached between legislative leadership and his office.
        Read his latest letter to DFL Legislative Leadership
        (posted 9-11-07)
      • On August 22, a select group of NAIOP members held a fundraiser for Governor Tim Pawlenty to thank him for supporting our organization and the business community.
        View event highlights & photos
        (posted 9-4-07)
      • Who Says The State Isn’t Spending Enough?
        $55.4 billion—Total State Spending For The 2008-90 Biennium
        View General Fund spending by department as enacted by the 2007 legislature
        (posted 7-17-07)
      • Craig Patterson and Kaye Rakow send letters to Senator Coleman and Senator Klobuchar regarding the amendment to the Clean Energy Act of 2007.
        Read letter
        (posted 6-21-07)
      • Statewide, the 2007 taxable market value for commercial industrial properties increased by 11% from 2006 with a property tax increase of 7.3%
        Click here for the full report from House Research.
        (posted 5-4-07)
      • The statewide market value for commercial industrial properties is projected to increase for taxes payable in 2008 by 9.6% with a projected property tax increase of 6.8%
        Click here for the full report from House Research.
        (posted 5-4-07)
      • Letter to NAIOP Members from Governor Pawlenty
        (posted 4-5-07)
      • "Spend our tax dollars wisely. Pay for those things that work. But stop paying for the things that don't."
        Read the complete commentary as published in the Minneapolis Star Tribune on April 3, 2007 by Glen Dorfman, CEO, Minnesota Association of Realtors and Kaye Rakow, Director of Public Policy, NAIOP
        (posted 4-4-07)
      • NAIOP members joined hundreds of Minnesota business leaders at Business Morning at the Capitol on March 14.
        Click here to read comments from the Governor's address.
        (posted 3-20-07)
      • NAIOP 2007 Property Tax Talking Points
        This simple bullet point format makes it easy for you to communicate NAIOP's property tax points to legislators and colleagues.
        (posted 3-8-07)
      • Minnesotans Believe State Legislature Needs To Spend Smarter And Set Better Priorities, Rather Than Propose Tax Increases
        First ever "Citizen Compass," a survey conducted by the Coalition of Minnesota Businesses, identifies property tax relief, local schools and health care as State's key issues.
        Cover Memo to State Legislators
        Press Release
        Executive Summary
        Full Report
        (posted 3-8-07)
      • Spend Smart
        NAIOP and the Minnesota Association of Realtors have partnered on the Spend Smart campaign and will be placing ads in targeted legislative districts across Minnesota. Click on the links below to see the ads.
        Squeeze every penny out of the surplus. Not the taxpayer.
        Spend the $2.2 billion wisely and keep the economy on a roll.
        What tax increases will do to the Minnesota economy.
        (posted 3-8-07)
      • Spend Smart Principles
        (posted 3-8-07)
      • Defending Eminent Domain article by Susan Feyder from the Minneapolis Star Tribune
        (posted 3-9-06)
      • NAIOP Minnesota partners with area associations to develop
        Ten Guiding Principles of Eminent Domain
        (posted 2-28-06)
      • Toward a Lean and Less-Mean State Government: Dan McElroy, Senior Advisor on Innovation to Governor Pawlenty, speaks to NAIOP's Public Policy Committee
      • Public Policy Committee Announces "Feedback Forum", Real World Experiences from the Leading Edge of Economic Growth, chaired by Peter Kordonowy, Steiner Development.
      • Snapshot: State Building Permit Surcharge - A "Hidden" Tax on Minnesota Developers and Businesses
      • Snapshot: 2004 Effective Property Tax Rates
      • Read the Coalition of Minnesota Businesses 2005 Legislative Wrap Up on Fiscal, Education, and Health Care policies. NAIOP and other CMB members coordinated grassroots efforts on property taxes and other fiscal issues during the 2005 legislative session.
      • In the Press David Kordonowy, President, Steiner Development and Jeff Eaton, Senior Vice President of Real Estate Services, United Properties submitted letters to the editor in community newspapers opposing increases to the Statewide Property Tax:

        Read Dave Kordonowy¹s letter: "Raising property taxes not the right move"

        Read Jeff Eaton¹s letter: "Senate should ax the business tax"

        "Getting the Job done-right," Read Representative Barb Sykora¹s editorial in the July 7th issue of the St. Paul Pioneer Press. Refer to the highlighted areas for her response to attempts to increase taxes on businesses, particularly the Statewide Property Tax. Approximately 35 NAIOP members live in Representative Sykora¹s district, (33B) and they have been communicating with her during the legislative session.
      • Becky McDaniel retires as Chair of Public Policy Committee. Read More.
      • Study Released: Minnesota's "Hidden" Funds Originally created by Minnesota legislative action to serve special needs, "Hidden" Funds today represent more than $9 billion in annual spending, much of it, according to the Minnesota Taxpayers Association, "hidden" from taxpayers and largely unexamined in the press and by the legislature. Read More.
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