Yes, you read that right. In an 8-4 vote, City Council set a dangerous precedent by extending tax subsidies to MARKET RATE housing.
Council Members Lisa Goodman, Steve Fletcher and Jeremiah Ellison, who had previously voiced concerns about allowing tax subsidies to be given to market-rate housing, voted against the use of TIF. Council Member Linea Palmisano joined them in the dissenting vote.
Excerpt from Star Tribune (Miguel Otárola, April 19, 2019) here:
A divided Minneapolis City Council on Friday approved the use of tax subsidies for a large housing complex off the Blue Line’s Franklin Avenue light-rail stop.
Without public discussion, the council voted 8-4 to provide the developer of Seward Commons with tax-increment financing (TIF) for the construction of two five-story buildings on the site. The vote was supposed to happen three weeks ago, but it was delayed after some council members objected to the city subsidizing market-rate units.
Developers had requested around $3.7 million for one building with 128 market-rate units and $600,000 for a building with 32 larger units for low-income families. Seward Redesign and its development partners hope to break ground on the market-rate building in the fall.
“I am thrilled,” said Sheldon Mains, board president for Seward Redesign, a nonprofit. “This is a project that Seward Redesign … has been working on for years.”
Refer to full article here.