Northfield Downtown Development Corporation

…at least on their drinks.

Last Friday a number of Commercial Property Owners in Downtown Northfield took advantage of the half-priced drinks for anyone bringing in their tax statements to several local establishments. A few of them posed for a photo in Bridge Square.

As many of you are aware, commercial property taxes in downtown Northfield have risen over 30% a year for the past seven years or so; the total increase since 2000 is well over 200%. With rents remaining stable, there is no longer sufficient cash flow to address building operating expenses, much less maintenance and improvements.

The tax payment due-date confirmed this grim reality. The dozen or so commercial property owners with whom I spoke last week all had to either draw down their savings or borrow money from the bank to pay their tax bills.

The situation is not economically sustainable. Our architectural, commercial, and cultural health, heritage, and hope is at risk.

…at least this Friday.

The Northfield Downtown Development Corporation (NDDC) is pleased to announce Commercial Property Taxpayer’s Specials, Friday, May 15th from 4 p.m. to 6 p.m., at select establishments in historic downtown Northfield. Bring your commercial property tax statement in for a 50% discount on beverages. It’ll be the best deal that commercial property owners are likely to get on this day. (more…)

…tomorrow.

After getting an announcement from Mill Towns Trail advocate Peggy Prowe that the bicycle bridge over the Cannon River was going to be lifted and put in place, with the north and south sections joined together, and a tip from Mayor Mary Rossing the the event would occur Monday, April 27th, at 9 a.m., I headed over to catch the action. It was a “nipping and eager air” this morning, and noticing very little action, I returned to the office. (more…)

The Northfield Downtown Development Corporation (NDDC) would like to thank Representative Bly and Senator Dahle for introducing bills at the State Legislature that are intended to address the commercial property tax situation in downtown Northfield. It is encouraging for us to see some action on this issue that has such a significant impact for so many building and business owners in downtown. (more…)

NDDC board members and staff traveled to St. Paul again this morning to give testimony on the commercial property tax issue in downtown Northfield. It was in support of a bill introduced by Senator Kevin Dahle.

It gave us an opportunity to provide the committee members with important details of the issue. We illustrated the changing economics of owning and operating a building in downtown Northfield.

Rent rates in downtown Northfield are at modest levels, most are in the 6 to 8 dollar per square foot range. With the mortgage costs at $3.00 or $3.50 per square foot, common area utilities at 75 cents per square foot, and insurance at 50 cents per square foot, there’s about $2.25 left for all other building costs. Since the year 2000, the average property tax cost has gone from $1.50 per square foot to $2.50.

In fact, I have seen the year-to-year operating expenses on about a half dozen buildings in downtown Northfield. Indeed, they have gone from producing positive cash flow to a point where the owners are now having to draw down savings to keep their buildings operating.

But it’s not just about the economics of old buildings. These older commercial districts are important to Minnesota. These districts are the most visible indicators of community pride, can be a key asset in the efforts to recruit and retain residents and businesses, serve as a focal point or gathering place for our citizens, and symbolize our communities’ heritage.

We thank all the Senators involved in today’s hearing for the opportunity to raise the awareness of the commercial property tax situation in downtown Northfield.