Tough to get TAF, should try for TIF

Star Tribune Tue, 12 Feb 2008 20:37:13 GMT
Big expense of sports center has Blaine wary

A report suggests that the city consider sharply downsizing tax incentives for the proposed SportsTown USA project. "You're asking for the moon," said Blaine City Council member Russ Herbst when the development group behind the SportsTown USA project brought a public financing request to the city last fall. By the city's calculations, Donnelly Development is asking for about $12.2 million in tax incentives to build a $150 million hotel and fitness-entertainment center just north of the National Sports Center. After a couple months to consider the request, Blaine's response is in -- and it suggests the city consider about one-fourth of the incentives, called tax-abatement financing, that Donnelly requested. A staff report delivered in January says the city would lose money on the Donnelly proposal, and says the city should look at kicking in something in the range of $3 million to $5 million. The report is not an official recommendation, said finance director Joe Huss. But it clearly carries weight with council members and the mayor. "It's a terrific project and everybody's excited about it," Mayor Tom Ryan said. "But it's not doable. It's too risky. There's no way we can do the full abatement" that Donnelly has requested.

[[keywords: LandUse;PropertyTax;Metro;]]