City Updates NRP Phase II Revenue Projection

July 14, 2005 - "Doing your business well is the best action to take in this time of uncertainty," NRP Director Bob Miller told neighborhood leaders after City of Minneapolis representatives, on June 27, gave the NRP Policy Board projections showing a dramatic drop in revenues for NRP in 2005-2009. In a letter to NRP participants, he also urged them to continue their current Phase I and Phase II activities.

"Common Project" revenues (also known as Tax Increment, from various projects mostly in downtown Minneapolis) have been the primary funding source for NRP. The revised revenue projections are based on property tax reductions won by some Common Project properties, and state taxing decisions that reduced tax rates and the commercial/industrial share of the City's tax base.

NRP staff will be working with the City's Development Finance Department to ensure the projections (which are just that, projections, and historically change with time) are as realistic as possible. Several future obligations have already been identified that are the result of local decisions made by the Mayor and City Council and could be reconsidered now that the impact on NRP's mission and the continuation of neighborhood revitalization is known.

The Policy Board also acted on June 27 to establish a working committee on Continued Support of Neighborhoods and NRP to, by September, bring recommendations for the continuation and future funding of neighborhoods and NRP.

"This is no time for us to back away from our interest in, and commitment to, improving our neighborhoods," Miller wrote. "Rather, it is a time to recognize that critical decisions will be made over the next few months that will determine the future of NRP."

For the detail of the projections and assumptions, which may be changing as NRP and city staffs work on the issue, call 612-673-5140.



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