There was an excellent story in yesterday’s Star Tribune entitled “Will megamall deal usher one in for the Vikings?”. You can click that link to read the story by Mike Kaszuba.
The story explains a proposal being considered by the State Legislature to allow the City of Bloomington to assist the owners/developers of the Mall of America with the construction of a public parking ramp to serve the proposed Phase II of the mall. Phase II will essentially double the size of the current mall. It will require a new large parking ramp. The owners of the mall say they won’t do the Phase II project if they have to pay for their own parking ramp.
The proposal under consideration will allow the City of Bloomington to use the new Fiscal Disparities revenues created by the Phase II mall development to help fund the parking ramp. So, in one sense, you could say that the owners of the mall are paying for their own parking ramp. However, the proposal, depending on how it’s implemented, may require the amount of the Fiscal Disparities contribution that is redirected to build the parking ramp to be replaced in the Fiscal Disparities system by all other commercial/industrial taxpayers in the Twin Cities metro area. By the City of Bloomington’s own estimates, this could raise commercial/industrial taxes by 0.31% across the board. That may not seem like much, but for the Eden Prairie Center mall, it could be as much as $12,500 in additional property taxes in one year.
In my humble opinion, requiring commercial/industrial taxpayers throughout the metro area to pitch in and pay a little extra property tax so that the owners of the Mall of America doesn’t have to pay the cost of building its own parking ramp is bad public policy. As you’ll read in the Star Tribune story, the Minnesota Vikings are looking very carefully at this new funding mechanism. They’re thinking that it might be a good tool to build a new football stadium next year.
The state legislature is considering this proposal right now. If you pay commercial/industrial property taxes in the Twin Cities, you should pay attention to this issue. It’s important now, and could be even more important in the years ahead.









