http://finance-commerce.com/2013/12/jud ... z2nNOyPiPC
The Stadium legislation mandates a certain number of structured parking spaces connected to the stadium. The stadium legislation caps Minneapolis' contribution at $150M. Minneapolis is financing that stadium-legislation mandated parking with funds beyond the $150M. I don't know how the judge should rule, but this doesn't strike me as a frivolous lawsuit. The city attorney has shown a willingness to make completely meritless arguments to get these deals done; I see no problem making her defend the city's involvement as lawful on the record in front of a judge.Woodruff, Cohen and Ostrow believe that the city’s contribution to the Downtown East project should be considered as part of its share in the Minnesota Vikings stadium, since the development is mere blocks from the stadium site, and a parking garage at Downtown East could benefit stadium users.
State law caps Minneapolis’ contribution to the stadium project at $150 million, and the plaintiffs say the additional cost of the Downtown East deal puts the city over that limit.
Ostrow argued that the two projects are closely related Thursday, while deputy city attorney Peter Ginder said their relation is “incidental” and the city’s involvement in each development should be considered separately.
Who knows how this stands up as a legal issue, but it does seem like the city is trying to have it both ways. We've justified subsidizing the stadium because it will make the land attractive for development, and now we have to subsidize development adjacent to the stadium and call the land "marginal" to use port authority dollars to redevelopment. Yet, these are downtown blocks at the confluence of two light rail lines that are being purchased for perhaps $40M (final price TBD). They claim it's marginal land because so much of it is surface parking, but the city previously alleged they remained undeveloped because of intentional city policy to concentrate development in the dt core. It does seem like the city is trying to have it both ways, or will at least say anything (without regard to merit) to get this built.The lawsuit also alleges that the city would make improper use of state port authority laws to fund the project. The laws give cities the power to borrow as a port authority in order to encourage development of “marginal” properties, but the plaintiffs say there’s nothing marginal about the land.
“It’s more than a little remarkable that property next to a stadium is now being referred to as ‘marginal,’” Ostrow said.
I see this deal passed, but was it really that fragile? This just doesn't make sense, and frankly this fomented sense of urgency is throwing up some red flags. I don't think the public has really had the information to make sense of this deal yet. It doesn't help that our town's main news organization is so dependent on this going down.Ryan and city officials including Mayor R.T. Rybak have said City Council approval is needed this month.
Segal said Thursday that deadlines both to purchase land for the development from the Star Tribune and to secure Wells Fargo & Co.’s commitment to the two office towers fall in late December.
“There are real deadlines here,” Segal said. “This whole thing can fall apart because of delay.”
I just can't shake the feeling we won't really know all the consequences until it's too late. I hope I'm wrong.
