Eagan Development overreach costs Eagan taxpayers millions

Posted in the Minneapolis Forum

First Prev
of 4
Next Last
non-starter

Saint Paul, MN

#1 Jan 4, 2013
With very little to show for it.

A key parcel of land in western Eagan is in the hands of a commercial developer that has plans to build an upscale outlet mall.

Eagan's Economic Development Authority this week unanimously approved a $14.73 million purchase agreement with Baltimore-based Paragon Outlet Partners for 29 acres of city-owned land in the Cedar Grove Redevelopment Area.

Paragon wants to build a 420,000-square-foot, open-air mall consisting of 90 to 100 outlet stores of high-end retailers. The EDA, made up of city council members, approved preliminary plans in April.

If the city council gives the green light to final land-use plans later this year, the mall would be the first major new development within the Cedar Grove commercial district, which is east of Cedar Avenue and includes property on both the north and south sides of Minnesota 13.

Paragon has told city officials that its similar projects across the country typically have had an investment of more than $100 million, created 400 construction jobs and brought in 1,500 to 2,000 retail jobs.

"It's a very big step," city administrator Tom Hedges said of the purchase agreement. "We're excited about (Paragon's) ability to develop the property -- we feel it's consistent with our long-term plans."

The purchase agreement includes $5.8 million for the land, an additional $3.5 million for the relocation of Cedar Grove Boulevard and $1.2 million to move a gas pipeline.

Paragon is also chipping in $4.2 million for a $19 million multi-level parking ramp the city will build, own and maintain, said Gene VanOverbeke, Eagan's director of administrative services.

In turn, since 2000, the city's EDA has spent about $40 million in acquiring land in the area and investing in infrastructure with the aim of luring mixed-use development.

The mall's footprint leaves about 16 acres of city-owned land for future development that could help fulfill the city's vision for a mix of uses in the area.
non-starter

Saint Paul, MN

#2 Jan 4, 2013
Notice that $4.2 million of the $14 million purchase price is paid toward building a $19 million parking ramp. Another $15 million that Eagan taxpayers will have to front for a dubious payback.
The Truth

Minneapolis, MN

#3 Jan 4, 2013
All made up. Notice no links to verify.

Eagan residents are extremely happy with the decision to acquire a blighted, empty shopping mall and replace it with a new outlet mall that will improve the beauty of the area as well as add jobs and tax base to Eagan.

Thank you, Eagan officials!
The Truth

Minneapolis, MN

#4 Jan 4, 2013
The Truth wrote:
All made up. Notice no links to verify.
Eagan residents are extremely happy with the decision to acquire a blighted, empty shopping mall and replace it with a new outlet mall that will improve the beauty of the area as well as add jobs and tax base to Eagan.
Thank you, Eagan officials!
The Eagan residents are happy to do this with what they think is other people's money. Low information voters like The Truth (Mpls version) love spending oher people's money.

The only problem is that the debt needs to be paid. And it will eventually come out of the pockets of those very same low information voters.
non-starter

Saint Paul, MN

#5 Jan 4, 2013
The Truth wrote:
All made up. Notice no links to verify.
Eagan residents are extremely happy with the decision to acquire a blighted, empty shopping mall and replace it with a new outlet mall that will improve the beauty of the area as well as add jobs and tax base to Eagan.
Thank you, Eagan officials!
http://www.twincities.com/loca lnews/ci_21104340/eagan-oks-de veloper-purchase-outlet-mall
Amused Slew

Seattle, WA

#6 Jan 4, 2013
Nice "link" you posted poorly, moron.

I'd be calling you a hypocrite, for not calling out con on her new moniker, but to you... hypocrisy is "business as usual"...

Tell the "man of your family" hello and I hope SHE had a nice Christmas... LMAOROTFU~!
The Truth

Minneapolis, MN

#7 Jan 4, 2013
Amused Slew wrote:
Nice "link" you posted poorly, moron.
I'd be calling you a hypocrite, for not calling out con on her new moniker, but to you... hypocrisy is "business as usual"...
Tell the "man of your family" hello and I hope SHE had a nice Christmas... LMAOROTFU~!
Dumb shyt that pretends to be from Seattle is not even smart enough to click on a link properly. Hey Slewzie, have a 3rd grader show you how to click on a link!

http://www.twincities.com/loca%20lnews/ci_211...
Amused Slew

Seattle, WA

#8 Jan 4, 2013
Click on a link ??? Not yours, especially since you can't post them without multiple moronic ATTEMPTS ~! Say hello to the man of the house, she's nice...
non-starter

Saint Paul, MN

#9 Jan 4, 2013
The Truth wrote:
All made up. Notice no links to verify.
Eagan residents are extremely happy with the decision to acquire a blighted, empty shopping mall and replace it with a new outlet mall that will improve the beauty of the area as well as add jobs and tax base to Eagan.
Thank you, Eagan officials!
Notice it isn't made up. Notice your post is relegated to conjecture, your post is all made up, no links.
Amused Slew

Seattle, WA

#11 Jan 4, 2013
I like you FORGETTING the building jobs, the REVENUE taxes, and the management/worker jobs in a BLIGHTED DEAD LAND....
non-starter

Saint Paul, MN

#12 Jan 4, 2013
Amused Slew wrote:
I like you FORGETTING the building jobs, the REVENUE taxes, and the management/worker jobs in a BLIGHTED DEAD LAND....
The building jobs don't go to Eagan, there isn't a construction company located there. The Revenue taxes go to the state, and there are no taxes on clothing in Minnesota, and the mall portion of Cedarvale could have been re-developed for much less without Eagan getting involved. You are grasping at arguments once again low integrity poster. But keep on trying, your posts show your true lack of understanding.
non-starter

Saint Paul, MN

#13 Jan 5, 2013
Paragon has told city officials that its similar projects across the country typically have had an investment of more than $100 million, created 400 construction jobs and brought in 1,500 to 2,000 retail jobs.

"It's a very big step," city administrator Tom Hedges said of the purchase agreement. "We're excited about (Paragon's) ability to develop the property -- we feel it's consistent with our long-term plans."

The purchase agreement includes $5.8 million for the land, an additional $3.5 million for the relocation of Cedar Grove Boulevard and $1.2 million to move a gas pipeline.

Paragon is also chipping in $4.2 million for a $19 million multi-level parking ramp the city will build, own and maintain, said Gene VanOverbeke, Eagan's director of administrative services.

I wonder what kind of tax breaks Paragon has negotiated with Eagan and for how long.

Eagan paid for the $40 million with TIF funding. From Wikipedia:

When an increase in site value and private investment generates an increase in tax revenues, it is the "tax increment." Tax Increment Financing dedicates tax increments within a certain defined district to finance the debt that is issued to pay for the project. TIF is often designed to channel funding toward improvements in distressed, underdeveloped, or underutilized parts of a jurisdiction where development might otherwise not occur. TIF creates funding for public or private projects by borrowing against the future increase in these property-tax revenues.[1]

Currently, thousands of TIF districts operate nationwide in the US, from small and mid-sized cities, to the State of California. As of 2008, California had over four hundred TIF districts with an aggregate of over $10 billion per year in revenues, over $28 billion of long-term debt, and over $674 billion of assessed land valuation.[2] California, where TIF began in the United States in 1952, has currently discontinued the use of them.

Must work great if even California won't even allow the use of TIF any more.
Amused Slew

Seattle, WA

#14 Jan 5, 2013
Minnesota=California ??? That's your best "argument" ??? LMAOROTFU~!

Jobs benefit Eagan.... Property taxes benefit Eagan...New development benefits Eagan, including a new park...Sorry about your tree house, ms low integrity SPAMMING poster.

On the heels of last month's preliminary approval by the Eagan City Council, Paragon announced this week that Saks Fifth Avenue OFF 5TH will be a major anchor store at the 441,000-square-foot, open-air outlet mall.

Paragon has said it will court many of its "retail partners" that are found at the company's other outlet malls, including Brooks Brothers Factory Store, Coach, The Children's Place, DKNY and Nike.

Paragon said the project is expected to bring about 400 construction jobs, and another 1,500 to 2,000 permanent jobs when the mall opens in November 2014.
Amused Slew

Seattle, WA

#15 Jan 5, 2013
non-starter wrote:
Paragon has told city officials that its similar projects across the country typically have had an investment of more than $100 million, created 400 construction jobs and brought in 1,500 to 2,000 retail jobs.
"It's a very big step," city administrator Tom Hedges said of the purchase agreement. "We're excited about (Paragon's) ability to develop the property -- we feel it's consistent with our long-term plans."
The purchase agreement includes $5.8 million for the land, an additional $3.5 million for the relocation of Cedar Grove Boulevard and $1.2 million to move a gas pipeline.
Paragon is also chipping in $4.2 million for a $19 million multi-level parking ramp the city will build, own and maintain, said Gene VanOverbeke, Eagan's director of administrative services.
I wonder what kind of tax breaks Paragon has negotiated with Eagan and for how long.
Eagan paid for the $40 million with TIF funding. From Wikipedia:
When an increase in site value and private investment generates an increase in tax revenues, it is the "tax increment." Tax Increment Financing dedicates tax increments within a certain defined district to finance the debt that is issued to pay for the project. TIF is often designed to channel funding toward improvements in distressed, underdeveloped, or underutilized parts of a jurisdiction where development might otherwise not occur. TIF creates funding for public or private projects by borrowing against the future increase in these property-tax revenues.[1]
Currently, thousands of TIF districts operate nationwide in the US, from small and mid-sized cities, to the State of California. As of 2008, California had over four hundred TIF districts with an aggregate of over $10 billion per year in revenues, over $28 billion of long-term debt, and over $674 billion of assessed land valuation.[2] California, where TIF began in the United States in 1952, has currently discontinued the use of them.
Must work great if even California won't even allow the use of TIF any more.
Using YOUR standards.... Notice your post is relegated to conjecture, your post is all made up, no links.
non-starter

Saint Paul, MN

#16 Jan 5, 2013
Amused Slew wrote:
<quoted text>Using YOUR standards.... Notice your post is relegated to conjecture, your post is all made up, no links.
Like you ever post links hypocrite. Check your cut and pastes last night and today, no links, but then, a low integrity poster can try to make a case for holding others accountable to standards they cannot even approach personally.
non-starter

Saint Paul, MN

#17 Jan 5, 2013
From Wikipedia, common concerns raised about TIF projects:

Although generally sold to legislatures as a tool to redevelop blighted areas, some districts are drawn up where development would happen anyway such as prime areas at the edges of cities. California has had to pass legislation designed to curb this abuse.[7][8]

The designation as blighted, essential to most TIF implementation, can allow governmental condemnation of property through eminent domain laws. The famous Kelo v. City of New London United States Supreme Court case, where homes were condemned for a private development, was about actions within a TIF district.

The process arguably leads to favoritism for politically connected developers, implementing lawyers, economic development officials and others involved in the process

In some set-ups school districts within areas that are big TIF users are experiencing larger increases in state aid than those within areas that are not relying heavily on this mechanism. This may be creating an incentive for governments to over-TIF and to take on more risk. Governments are under no obligation to recognize when TIF would seriously harm a school districtís financial condition.

Normal inflationary increases in property values can be captured with districts in poorly written TIFs, representing money that would have gone to the public coffers even without the financed improvements.

Districts can sometimes be drawn too large and capture value that would have been increased anyway for unrelated reasons.

Approval of districts can sometimes capture one entity's future taxes without its official input, i.e. a school districts taxes will be frozen on action of a city.

Capturing the full tax increment and directing it to repay the development bonds ignores the fact that the incremental increase in property value likely requires an increase in the provision of public services, which will now have to be funded from elsewhere (often from subsidies from less economically thriving areas). For example, the use of tax increment financing to create a large residential development means that public services from schools to public safety will need to be expanded, yet if the full tax increment is captured to repay the development bonds, other money will have to be used.[9]
Amused Slew

Seattle, WA

#18 Jan 5, 2013
They're your standards, which YOU use to criticize other people...I see you're still a hypocrite, broke-ass loser...

Want to borrow 15 cents ?? LMAOROTFU~!

Like the personal attacks, loser..

Tell the "man of your family" hello and I hope SHE had a nice Christmas... LMAOROTFU~!
non-starter

Saint Paul, MN

#19 Jan 5, 2013
Amused Slew wrote:
<quoted text>Using YOUR standards.... Notice your post is relegated to conjecture, your post is all made up, no links.
Notice I said where the article was from. If you can use a computer, maybe you should look it up on Wikipedia for yourself, mr low integrity poster.
Amused Slew

Seattle, WA

#21 Jan 5, 2013
non-starter wrote:
From Wikipedia, common concerns raised about TIF projects:
Although generally sold to legislatures as a tool to redevelop blighted areas, some districts are drawn up where development would happen anyway such as prime areas at the edges of cities. California has had to pass legislation designed to curb this abuse.[7][8]
The designation as blighted, essential to most TIF implementation, can allow governmental condemnation of property through eminent domain laws. The famous Kelo v. City of New London United States Supreme Court case, where homes were condemned for a private development, was about actions within a TIF district.
The process arguably leads to favoritism for politically connected developers, implementing lawyers, economic development officials and others involved in the process
In some set-ups school districts within areas that are big TIF users are experiencing larger increases in state aid than those within areas that are not relying heavily on this mechanism. This may be creating an incentive for governments to over-TIF and to take on more risk. Governments are under no obligation to recognize when TIF would seriously harm a school districtís financial condition.
Normal inflationary increases in property values can be captured with districts in poorly written TIFs, representing money that would have gone to the public coffers even without the financed improvements.
Districts can sometimes be drawn too large and capture value that would have been increased anyway for unrelated reasons.
Approval of districts can sometimes capture one entity's future taxes without its official input, i.e. a school districts taxes will be frozen on action of a city.
Capturing the full tax increment and directing it to repay the development bonds ignores the fact that the incremental increase in property value likely requires an increase in the provision of public services, which will now have to be funded from elsewhere (often from subsidies from less economically thriving areas). For example, the use of tax increment financing to create a large residential development means that public services from schools to public safety will need to be expanded, yet if the full tax increment is captured to repay the development bonds, other money will have to be used.[9]
Do you mean like when RawMoney "developed" ski slopes for friends during the Olympics ?? Funny, not a word, when the cash is going to your party... Otherwise LOTS OF COMPLAINTS, without proof.
non-starter

Saint Paul, MN

#22 Jan 5, 2013
Amused Slew wrote:
<quoted text>Do you mean like when RawMoney "developed" ski slopes for friends during the Olympics ?? Funny, not a word, when the cash is going to your party... Otherwise LOTS OF COMPLAINTS, without proof.
I am discussing Eagan and city things. Nice of you to deflect the argument to something you are passionate about. Maybe you should start a thread to discuss that mr low integrity poster. Mr. Romney lost the election, the Oprah book club selection of the week author won the election. If you would like to discuss that, that would be another fine discussion topic mr low integrity poster.

Eagan, come for the eminent domain, stay for the outlet mall.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 4
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Minneapolis Discussions

Title Updated Last By Comments
Global warming 'undeniable,' scientists say (Jul '10) 13 min Fair Game 32,790
Marriage Man and a Woman 7 hr LIbEralS 10
Ebola Spreads to Texas 7 hr Billy 3
Why? 7 hr Billy 7
Elizabeth warren 12 hr Zoey Jaja 10
Beheading suspect likely radicalized in jail ó ... 12 hr cowboy chris 2
Black Bear Fights Back During Vicious Murder 12 hr Tang Wong Chew 1

Minneapolis Jobs

Minneapolis People Search

Addresses and phone numbers for FREE

Minneapolis News, Events & Info

Click for news, events and info in Minneapolis

Personal Finance

Mortgages [ See current mortgage rates ]