Tuesday, March 11, 2008

NRP Legislation Being Introduced

Legislation is being introduced to extend funding for the Neighborhood Revitalization Program (NRP) through 2019.

The legislation is being sponsored by Representative Karen Clark and Senator Patricia Torres Rey who were approached by a number of neighborhoods andasked to assist in the preparation of legislation.

The proposed legislation would extend Minneapolis' pre-1979 tax increment financing (TIF) districts for 10 years (through 2019) and allocate the tax increments from these districts to the county, city, and school districts in proportion to their tax rates (thus allowing all these entities to receive revenue), with the city's share to be divided between the City and NRP.
The legislation would also preserve the operation of the NRP Policy Board.

This legislation is consistent with the resolution passed by the NRP Policy Board in December2007 supporting continuation of NRP for another 10 years at a dedicated funding amount of $12 million per year and overseen by an independent governing board.

By extending the TIF districts for another 10 years, the legislation would also make up the approximately $100 million in revenue that was lost when the 2001 legislature adopted tax law changes that greatly reduced the revenues that were originally expected for NRP.

When the legislature passed NRP in 1990, the expectation was that the program would receive $20 million each year from the TIF districts and other revenues over 20 years for a total of $400 million. Because of the 2001 tax changes, revenues to NRP have been about $300 million. This is $100 million less than the amount originally committed.

Extending the TIF districts through 2009 would complete the original commitment to residents that were made when NRP was enacted.

This is important legislation that will preserve the operation of a program that has been a model of citizen participation and neighborhood revitalization. During the 18 years that NRP has been in existence, it has invested in and improved the City's housing stock and infrastructure,leveraged over $1 billion in other private and public investments in the City, and has activated thousands of volunteers to improve neighborhoods inways unique to each neighborhood.

NRP really has been an urban success story and has been held up as a model across the country for citizen engagement and empowerment.

Investments in neighborhoods, however, still continue to be needed.

The number of mortgage foreclosures in Minneapolis is only one indicator of the need for continued attention to neighborhood revitalization. This legislation will help continue this successful program.

But we need your help to make this happen. Hawthorne has been writen, urged to write and call your state senator and representative to support this legislation and to contact your County Board representative to support the legislation. The County support of this legislation is also very important.

For additional information:
Beverly Conerton
NRP Policy Board Representative
Revitalization Neighborhoods
(612) 721-2996

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