Minneapolis City Budget FY2015 & FY2016

Parks, Minneapolis Public Schools, Density, Zoning, etc.
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FISHMANPET
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Re: Minneapolis City Budget FY2015 & FY2016

Postby FISHMANPET » November 19th, 2015, 1:28 pm

I think that's kind of the desired intent though. The clear signal there is that a $75k lot is not the place for your modest 1 BR home. That owner should cash out and build something bigger with more units (hopefully, instead of building a 4 story mcmansion for a single family like the neighbor's house). Ultimately the point of a land value tax is to "coerce" property owners into doing something.

Though I'd never really considered the idea that someone could just build an expensive home rather than more units on a valuable lot, so maybe there would need to be additional regulations related to redevelopment to prevent a land value tax from creating an enclave of the rich. But ultimately the point is to get something other than a modest 1 bedroom home on that lot. And I don't mean to just ignore all the negative implications of that, as that's a whole other interesting discussion.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby MNdible » November 19th, 2015, 1:47 pm

I know some people think that SFH neighborhoods' days are numbered -- I'm thinking they'll stick around longer than any of us. And so, given that, the drive will be to build bigger, more expensive homes on those lots (this of course is an impulse that already exists based just on the fact that the land is getting more expensive, but a land value tax will reinforce this twice a year, every year).

I know I'm not the first one to suggest this, but I think the land value tax may be more appropriate for land in commercial districts.

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FISHMANPET
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Re: Minneapolis City Budget FY2015 & FY2016

Postby FISHMANPET » November 19th, 2015, 2:10 pm

I'd be really curious to see someone crunch the number and try and figure out some tax bills for a revenue neutral (aka generates the same amount of revenue as our current taxes) land value tax based on current land valuation. Because the quintessential case study of a land value tax is a parking lot in a busy commercial district and obviously their taxes are going to go way up and a skyscraper's taxes would probably go down every so slightly. But what would happen in our vast swaths of residential neighborhoods and local commercial zones. How many places are there in the city where cheap tiny somewhat run down homes sit on wildly expensive plots of land relative to the value of the home. My gut tells me not very many, but I could be wrong.

The county has value data downloadable, I might see if I can bruteforce something with it in Excel, because hell if I'm going to figure out ArcGIS on my own.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby RailBaronYarr » November 19th, 2015, 2:20 pm

While we're talking mostly in theory, I have a hard time believing that a modest SFR wouldn't still be very valuable in a Minneapolis neighborhood as the really nice, expensive 4BR SFR next door. I'm thinking 50s Edina ramblers that sell for $350k+ despite being 2, maybe 3 BR and an outdated layout. The families buying them now aren't really hurting, they're likely just a notch below the McMansion owner in terms of income (see: the rich white people in SW Mpls complaining about teardowns). In the off-case that it's a lower-income family in a home passed down through generations, or a family of modest means (or in retirement) who've just lived there forever, I'd be in favor of mitigating land-value tax increases by deferring the marginal amounts until they sell the home. It's not a perfect idea, but it can be targeted and scaled. Besides, yes I agree a mix is more appropriate than solely LVT for the reasons you cite.

I would be interested to see how much SFR turnover there'd be if we allowed R4-R5 stuff in most neighborhoods and upped the weight of the land's value on PTs. But, even then, I agree detached houses will be around for a loooong time. I wrote about it, it'd take a while, even under aggressive assumptions. For the most part though, lower income HHs/families in Minneapolis reside in more space-efficient or outlying neighborhoods. A LVT, even if it doesn't coerce much redevelopment, would likely slightly benefit those in apartments/condos at the slight expense of the richer people in SFRs. In theory, of course (though I thought I read that's how it played out in Pittsburgh).

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Re: Minneapolis City Budget FY2015 & FY2016

Postby amiller92 » November 19th, 2015, 3:41 pm

RailBaronYarr wrote:While we're talking mostly in theory, I have a hard time believing that a modest SFR wouldn't still be very valuable in a Minneapolis neighborhood as the really nice, expensive 4BR SFR next door. I'm thinking 50s Edina ramblers that sell for $350k+ despite being 2, maybe 3 BR and an outdated layout.
Having recently shopped for and purchased a SFH in south Minneapolis, prices can vary a lot based on how recently things have been updated, which for older houses often means whether the attic has been converted into living space. Location obviously matters a ton, but in the comparison you're making, the difference in listing price might be $100-150k. Maybe more.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby mariareese » March 28th, 2016, 4:51 am

For the most part though, lower income HHs/families in Minneapolis reside in more space-efficient or outlying neighborhoods.

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Re: Minneapolis City Budget FY2015 & FY2016

Postby mattaudio » April 27th, 2016, 10:05 pm

Minneapolis parks, roads maintenance plan clears key council hurdle
http://www.startribune.com/minneapolis- ... 377359131/


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