At the Rotary Golf Tournament

I belong to the Rotary club of Crystal -New Hope - Robbinsdale, and we held our annual Elmer's Golf Classic yesterday at the Medina Golf & Country Club. I'm not going to tell you how well I "golfed", but it was a fun day. During the dinner hour I had several friends, colleagues and acquaintances ask me about the status of Phase II. I was thrilled that I was able to tell them that Governor Pawlenty signed the legislation that included Phase II.

However, I also shared with them that we still didn't have a thorough understanding of the bill's language. But it was really nice to be able to say that we are cautiously optimistic and that the project is alive. The next step is to see what the city's action will be re: implementing local taxing options (tax on MOA property and local hotels). My hope is that we can continue to move forward. Can't wait to be a part of this history!

The most exciting part of these discussions was the broad spectrum of support MOA and Phase II have with the general public. I can't tell you how many times people have told me that they can't wait for Phase II to be built and that it's a "no-brainer" that's great for Minnesota. I couldn't agree more!

It will take some time

I've been asked by a lot of friends and supporters the past few days what the final legislation meant for the project. As unsatisfying as it is - I tell them that it will take some time. We need time to study the language and understand what its impact on the Phase II project will be. However, I am still hopeful. This project will be so beneficial to Minnesota in so many ways - I've listed them all before, so I won't bore you again.

But it will also be historical. The largest commercial construction project in the state's history. There will be so much excitement for Phase II around the world. And as the project gets closer to becoming a reality that will continue to build. I really want to be a part of that energy and excitement - and hope we can all have that experience together.

Phase II Bill Passes

From my perspective, the message was mixed from the legislature this year. The good news is --- and it is very good news --- that Phase II was included in legislation that passed, and the governor's signature appears likely. This means the project can continue to move forward.

I have some concerns as well. Phase II will generate millions in tax revenue for the state and the region, so it seems unfair that the entire public portion is generated locally. However, the vast majority of those are local "user-taxes" on the project itself - so the burden does not fall on Bloomington residents. This means that guests who use MOA and Phase II will help support the public infrastructure.

I am also concerned that the project had many restrictions placed on it. Phase II won't be allowed to have a music theater, dinner theater or any other live performance arts venues. That just doesn't seem fair to me - but that is strictly my opinion.

Again - overall I think this news is good - and I am hopeful.

There have got to be a lot of tired people this morning - because they have been working hard to get Phase II legislation passed. I don't know everyone that was involved in making this legislation pass - but it is a very large number. I know that the Construction Trades have worked tirelessly to get this done - and they've been great partners to the Mall over the years. I also know that members from the construction industry stepped up in a big way to help make this happen.

My guess is that it will take some time to thoroughly understand the legislation and its impact on the project - but I'm hopeful we can move forward. This is a great project that brings thousands of jobs, millions in new tax revenue and millions of new tourists.

Report Shows Need for Jobs Now!

Minnesota lost another 10,100 in April!

According to a story posted today at http://www.positivelyminnesota.com/ , todays report from the Minnesota Department of Employment and Economic Development contained more bad news for an already struggling state economy. Once again Minnesota lost thousands of jobs. In fact we lost more than 10,000 jobs in April alone. And there should be no surprise, but the construction industry took the hardest hit losing 3,300 jobs. That's just not right.

I don't know about you, but this is deeply troubling to me. It's time to get Mall of America Phase II going so we can put thousands of people to work. We all need to get on the phone and call our elected leaders and ask them to get the deal done. This is too important -Please make the call today. Ask your coworkers to call. Ask your friends and family members to call. Ask your neighbors to call. The more the hear from us the better.

And please check out the story link above, or read the report in any of the dailys. It is not good news.

Phase II Supporters Continue to Work Hard

Conference Committee-Brokered Phase II Language Unworkable
Mall of America Phase II supporters not giving up on legislation to advance largest commercial construction project in state history; 14,000 total jobs

May 14, 2008 – We appreciate the efforts of state leaders to include language in the tax bill supporting the Mall of America Phase II expansion. Unfortunately, in its present form, the bill includes several provisions that make the project unworkable, including conditions that affect the mall’s ability to secure private financing and restrictions on hotel and other developments that are critical to the project.

The new language also shifts the public investment in the project to local sources entirely, which is inconsistent with the project’s regional and statewide impact. The city of Bloomington is valuable partner in the Phase II expansion but its investment should be supported by other jurisdictions that stand to benefit directly from the project.

We are committed to working with state leaders during these few remaining days of the session to do everything possible to reach a viable solution. We appreciate the bipartisan support the project has received and we thank leadership for their ongoing efforts to make Phase II a reality.

The Mall of America expansion would be the largest commercial construction project in state history. The Mall’s private investment of nearly $2 billion is three times larger than this year’s bonding bill. The project would put more than 14,000 Minnesotans to work, including 7,000 construction jobs and another 7,000 permanent positions. When finished, the Mall will be back on top as a leading tourist destination, attracting visitors from all over the world to Minnesota.

Why the Mall of America is important to the State

The Mall Phase II is important not just to Bloomington but the entire State. The construction of the Mall will require over 500 businesses from all over the State.contributing to the development. Many of these companies will employ people from all over the State not just in Bloomington. All these employees will be paying taxes to generate an economic impact all over this State. This is an emormous opportunity that we simply can not pass up.

In the Waning Hours

It is Saturday morning and the Tax Conference Committee is at it again, taking up specific projects, tax law amendments and other reforms that will cap off the 2008 session. In these waning hours, supporters of MOA Phase II must continue to be vigilant in their quest to create the spark for the largest commercial project in Minnesota history. People from all over the world have come here to see this unique family destination. To keep them coming, we have got to keep it new, keep it fresh and keep it exciting, and that takes investment. Investment in public infrastructure will come from the public sector and comprise just 17 percent of the $2.1 billion project. Investment in the private attractions and retail will come from owners, investors, lenders and others, and represents the vast majority of new dollars into the project.

We must remember to encourage and thank the lawmakers who have supported the project, and continue to listen with respect to those who still have questions. In the end, we believe this will get done this legislative session because it is the right thing to do for Minnesota, it is good for Minnesota families who need jobs, and it is a great attraction on which to build the state's reputation as an international tourism destination.

Thanks to everyone who has worked so hard to make this opportunity possible!

More great press for Phase II

Once again, David Ybarra from the Minneapolis Building Trades has hit it out of the park. In his letter to the editor in Tuesday's Star Tribune, David makes a great case for the need to make Phase II a reality:

Letters to the editor for Tuesday, May 6, 2008
May 6, 2008
MALL SUBSIDY
See the big picture

Star Tribune columnist James Lileks doesn't get it ("Stores galore! But what of MOA parking ramp?", April 24). The state's role in authorizing the expansion of Mall of America has little to do with a parking ramp. People don't get on a plane in Europe to come visit a parking ramp in Minnesota.

The public contribution for public parking infrastructure allows the full private investment in the project to go forward, making the attraction something people from all over the world will continue to want to come and see.

The reality is that projects of this magnitude don't happen without some public involvement. Nearly every significant project in the past 20 years was made possible by a similar combination of public and private investment, including the Guthrie Theater, the Minneapolis Convention Center, Cabela's, the Blaine National Sports Center and the list goes on.

Lileks states that the mall is basically building a house and asking the state to pay for its floors. I say if that house employs 14,000 Minnesotans, generates millions in tax revenue and attracts cash-carrying tourists to our state, then we might want to consider throwing in the drapes too.

DAVID YBARRA II, BROOKLYN PARK;
BUSINESS MANAGER, MINNEAPOLIS BUILDING AND CONSTRUCTION TRADES COUNCIL

***************************
Monday afternoon, David, along with major construction executives, will lead a large delegation of constuction industry representatives to the state capitol to make the case directly to legislators. We'll be sure to let everyone know how it goes!

Thoughts on Thursday

It's Thursday morning - and there aren't many days left in the legislative session. I'm encouraged by the bi-partisan support from both houses for this project. I was reading an article in the Pioneer Press [ http://www.twincities.com/ci_9187341 ] this morning where they listed construction projects taking place... and in my view, combined they don't come close to what Phase II will do for creating jobs and boosting the economy. This is the time to get this project moving - please let your elected officials know you support it!

Great photo from Jobs Rally

Phase II is the bright spot on the horizon for construction workers. You should have heard the stories that workers were telling at the rally last week - it didn't paint a pretty picture for anyone who's looking for work right now.

There's a great article about the rally here: http://www.workdayminnesota.org/index.php?news_6_3635

Response to newspaper article

After reading it a couple of times, I would like to respond to David Morris’ “Be suspicious of megamall subsidy” published on May 2, 2008. I respect his opinion, and I know he echoes a few other voices. However, I've talked to lots of people about Phase II and they are all excited and supportive of the project. But I would like to clarify a few points from my point of view.

This project is about jobs, new tax revenue and tourism.

There were many pessimists 20 years ago when Mall of America was first proposed and built. Many voices said the project would never fill with tenants, that it wouldn't generate the expected tax revenue and that it won't draw millions of visitors. These claims were proven false then, and the same concerns will be shown to be inaccurate again with Phase II.

Like some others, he argues against the use of fiscal disparities as part of the funding mechanism. My understanding is the legislation would exempt Phase II from fiscal disparities until the public parking infrastructure is paid off. This is no different than the dozens of other metropolitan properties – including many in downtown Minneapolis – that have been exempt from the fiscal disparities pool for decades now.

Finally, many have sounded the alarm that other developers will be lining up to use the same funding tools. By creating 7,000 construction jobs and 7,000 permanent jobs, increasing annual tax revenue by more than $80 million, increasing tourism to the state by millions and keeping Minnesota top of mind throughout the world, Phase II is an unprecedented opportunity for the state. No state money will be used, and private owners are willing to invest nearly $2 billion into the state’s economy. If any future project can provide such positive impact to the region and the state, I think our elected officials should do everything they can to make it a reality.

It is time to stop sounding alarms and to be a state of innovation and vision again. A new exciting day is dawning for Minnesota… and it begins with the jobs, tax revenue and tourism generated by Mall of America Phase II.

Excitement builds for Phase II

I was lucky to be present at the building trades/construction companies rally at the state capitol last week. There was so much energy and positive feeling in the air! It was great to see so many support this important project - and to have leadership from both parties showing support was great. Mall of America Phase II is so important to our state I continue to speak with my friends, neighbors, family members and co-workers about it. When I really explain the benefits of the project - to a person - they all agree it is a great deal for the state of Minnesota. Especially during a difficult economic downturn. Just like 20 years ago - MOA can help pull Minnesota from the economic duldrums. I would encourage everyone to contact the governor and their state elected leaders and ask them to support Mall of America Phase II.