Northfield Downtown Development Corporation

This piece appeared as a Guest Column in today’s (December 29) Northfield News.

For pretty much most of this century, owners of commercial property in downtown Northfield have been complaining about steadily and substantially rising property taxes. Since 2000, these building owners have experienced annual average tax increases of 30%. Think about it, their property taxes have risen 30% each year for the past seven years.

Almost all of these building owners live in Northfield. Comparing their residential property taxes to their commercial property taxes effectively illustrates the issue. During these same seven years, their residential property taxes gone up about 10% per year. For example, on a residential property for which they were taxed $1,200 in 2001, they were taxed $2,100 in 2007. On a commercial property for which they were taxed $3,000 in 2001, they were taxed $14,500 in 2007. That’s a $900 increase in residential taxes and an $11,500 in commercial taxes over the same number of years.

Both residential and commercial property owners pay property taxes from the same source: their income. Typically, the residential taxpayer’s income comes from their employment. The commercial income source is rent paid by business or residential tenants, at least in theory. Unfortunately for building owners, in recent years market rents have not kept up with the increases in property taxes.

Most of the buildings in downtown Northfield are old, many are historic. If rental income is relatively flat and the property tax costs are steadily and substantially rising, there is less and less cash flow for maintaining these older buildings. In fact, in recent years, some building owners have had to dip into their savings to make needed repairs. Even more discouraging, some are being forced to tap savings just to pay their property tax bills. Essentially, they are personally subsidizing the preservation and operation of these historic structures. Increasingly, owning a building is less a profitable business venture and more a labor of love.

There are as many theories about how this situation developed as there are theorists. Different downtown building owners probably have different ideas about the causes of their plight. However, at the end of the day they all agree, something has got to be done about it, and now.

Some of us who don’t even own downtown commercial property also think something needs to be done about it. We believe that trends that threaten the economic vitality of our downtown present an economic risk to the broader community.

That sense of place, and community pride that it fosters, inspires citizens to leadership and promotes civic involvement. Many of us believe that having our downtown buildings owned by people who live here helps assure that they will be preserved and enhanced. It also gives us hope that the necessary financial investments and essential volunteer efforts in the community will be made.

Downtown building owners are not asking for a reduction in their property taxes. They are not expecting future increases in their property tax bills to be zero. All they are requesting is that future tax burdens be more equitably distributed and that their property tax costs rise at a rate that is in line with their other costs.

With a more equitable distribution of the tax burden and tax increases that are in line with other expenses, building owners have a chance to make their economics work. If they can make their building economics work, our downtown has a better chance of remaining economically viable. If the downtown remains economically viable, Northfield will continue to attract good families, creative individuals, inspired entrepreneurs, and innovative businesses.

Northfield has long enjoyed a vibrant local music scene. In recent years, Gospel Gossip, the Big Wu and Afternoon Records have raised our visibility regionally, however, the story goes back to the late ’60s and early ’70s, when there were many bands and frequent dances, perhaps best symbolized by the 1978 Jesse James Music Festival.

This Saturday night (December 29th) there will be a celebration of Northfield’s local music scene. Hearkening back to that golden age, a number of local bands and musicians will present YuleStock, an evening of ’60s and ’70s rock and blues music on Saturday, December 29, 2007 from 8 p.m. to midnight at the Eagles Club Main Hall, 304 Water Street South in Downtown Northfield.

All ages are welcome. There is a cover charge of $5 per person and the public is asked to bring non-perishable food items to help restock the Northfield Community Action Center Food Shelf.

The artists performing include: Lore, featuring Lori B. Williams (alto sax, guitar, piano, vocals), Peter Diggins (guitar, vocals), Dave Miller (keyboards), Mike Legvold (bass) and Rick Wind (drums), Jellystone Yogi featuring Diggins on guitar, Joel Cooper (bass) and George Marich (drums) and joined by members of The Zillionaires, Dave Drentlaw (drums) and Wendy Smith (guitar, accordion) and, an authentic link to that bygone era, The One Night Band, featuring Jon Bjork (guitar, vocals), Richard Hanson (drums), Bill McGrath (bass, vocals), Scott McMillan (guitar, vocals) and Gordon Oschwald (guitar).

So come on Down(town) on Saturday night to the Eagles Club and dance, watch, or just listen like you did thirty some years (or thirty some days) ago.

Although many of us were saddened by the closing the The Art Store, there’s a reason to be hopeful too. A new art store is opening in Downtown Northfield.

I got a chance to talk with April Ripka, the owner of The Sketchy Artist, a few weeks ago. She was busy getting ready to open, including spending time with Northfield’s famous sign artist, Jim Bohnhoff.

April hopes to open on January 2nd. She’s currently stocking up on inventory and having custom fixtures built. She plans to offer products for a wide range of creative types, including those of different ages, incomes, and skill levels. Her philosophy is “Let out your inner creativity”.

She comes to retailing with a wide variety of experiences. April was an art major at St. Olaf College (graduating in ‘99), and has worked in many aspects of graphic design, including freelance advertising and web design. She currently is the web master (or is it mistress) for the City of Dundas. She plans to showcase Ole art in her store as well as work by artists she has met throughout her career.

So come on down(town) and check out the Sketchy Artist on January 2nd. Be sure to welcome April to the neighborhood!

Over the past 12 months, the NDDC workload has included a variety of activities and initiatives. We have continued the last four years’ intensive focus on the economic vitality of our authentic downtown.

As we have said before, our efforts are structured on the National Trust’s Main Street Program’s Four Points. These are: Organizing, Promoting, Designing, and Restructuring. We’ve reported on our 2007 activities using this same format.

The NDDC’s Organizing efforts included the:

The NDDC’s Promoting efforts included the:

The NDDC’s Designing efforts included the:

The NDDC’s Restructuring efforts include:

The Board of Directors of the NDDC holds an annual planning session. At this session the current year’s priorities are reviewed and the upcoming year’s priorities are established and will continue to reflect the breadth of activities encouraged by the Main Street Program’s Four Points. The NDDC’s priorities for 2008 will be posted on this site in the very near future.

…or is she running with wolves?

I stopped by the Art Store to say “Hey” to Ann Marie Boyle. As many of you are probably aware, she’s closing down The Art Store.

After 4 years of owning and operating the store, Ann Marie is heading to Australia. Contrary to many colorful rumors (she’s running away from her marriage, she has a rare disease that can only be cured by going down under, and, my favorite, she’s doing some hardcore training that involves running with wild dogs…I think dingos in the outback), she is joining her husband to lead a St. Olaf College environmental science program on the island continent.

It is really sad to see the store go. It has been in Northfield for 29 years, with 2 different owners and at least 6 locations. It served people from the Minnesota River to the Iowa border and from the Wisconsin border to the South Dakota border. Apparently, it was the last independent art store in this region.

Ann Marie will be missed by more than just the artist community. She served on the Retail Support Strategies Task Force and the Chamber’s Retail Committee. In both groups she was admired for her intelligence, outspokenness and endless creativity.

Her closing comments to me were: “It’s been one of the greatest experiences of my life. The one thing that could have made it even better was if Northfielders would give more support to downtown Northfield. Increasingly my customers are from out of town and they all comment what a great place we have here. I don’t think some residents realize what jewels we have in downtown Northfield”.

I didn’t even have to bribe her with a beer. Thanks for everything, Ann Marie, and good luck with those dingos.