PL MINUTES 01161996 - Laserfiche WebLink

Home Browse Search

Planning Commission Regular Meeting Minutes • January 16, 1996 Page 5 1 Mr. Larson reviewed the valuation of Apache Plaza in 1990 was $17,753,000 to $4,850,000 in 2 1995. He continued that the figures only included the core of Apache Plaza, not the outer 3 buildings such as New Market. 4 Commissioner Franzese inquired when the valuation is complete on Apache Plaza. Mr. Larson 5 responded that after the Truth in Taxation meeting, the Ramsey County Auditor contacted the City 6 to inform them that Apache Plaza had applied for another abatement. He continued that the City 7 could appeal, but has decided to postpone in light of the redevelopment that may occur. 8 Chair Bergstrom indicated Southdale had applied for an abatement as well. Commissioner 9 Makowske indicated that Roseville and the Mall of America had done the same. 10 Mr. Larson reviewed that if the Apache Plaza valuation decreases, then St. Anthony's total tax 11 capacity decreases, and taxes increase. Chair Bergstrom inquired if there was a limit to how low 12 the valuation can decrease before it would be similar to a "vacant lot. Mr. Larson indicated the 13 valuation is low, but its valuation is higher than a vacant lot would be. Chair Bergstrom inquired 14 how much more the valuation could decrease. Mr. Larson indicated that until redevelopment of 15 Apache occurs the valuation could continue to go down. Commissioner Franzese inquired of the owners of Apache Plaza. Mr. Larson responded that at 7 one time a group of doctors owned Apache Plaza, and it appears Apache was used as a capital 18 gains write off during their ownership. 19 Mr. Larson reviewed the average home owner pays approximately $42 per year because of 20 Apache Plaza's lowered tax capacity. Commissioner Gondorchin indicated the number is only 21 a fraction because the other businesses take on much of the burden. Mr. Larson agreed. 22 Mr. Larson indicated the Planning Commission needs to recognize how critical planning is to the 23 total tax capacity of St. Anthony, and make decisions with tax base concerns in mind, such as not 24 replacing commercial with residential properties. Mr. Larson made an analogy that it would take 25 183 houses of$200,000 each to replace the tax capacity of Apache Plaza. 26 Commissioner Gondorchin inquired if any portion of the formula would significantly impact the 27 residents. Mr. Larson responded the certified levy (53 percent) and the HACA (Homestead 28 Credit) is a significant part of the revenue. He continued the state gives a subsidy on property 29 taxes, and the revenue is goes to the City in the form of aid.. Mr. Larson continued that HACA 30 amounts historically have not been changed. If they were services would be decreased drastically. 31 Commissioner Gondorchin inquired if it was a "sacred cow" that would not be tampered with, and 32 Mr. Larson responded if it was cut, there would be a large state wide response. Commissioner Franzese indicated that HACA had been decreased in the past with special 04 education. Mr. Larson responded it was an insignificant amount of approximately $3,000 to 35 $5,000 of the total $300,000 to $500,000.