Politics & Government

'This Old Shop' Bill Would Entice Investments in Aging Buildings

Hopkins lawmakers joined together to introduce the proposal.

Hopkins Sen. Ron Latz (DFL-District 44) and Hopkins Rep. Steve Simon (DFL-District 44A), both of St. Louis Park, want to give businesses a break for upgrading old buildings.

The “This Old Shop” bill—as the legislation they introduced Thursday is called—would give businesses a break on tax assessments that would likely increase with renovations and other investments into old buildings. That, in turn, would lead to lower taxes.

The break would apply to buildings older than 45 years with a market value less than $2 million. The tax assessment increases would be abated for 10 years and then phased back over a five-year period.

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Simon said he thinks the bill is important for cities like St. Louis Park and Hopkins, where finding open real estate for new construction can be difficult. He added that he thinks the bill would remove the fear of being “punished” from a tax standpoint for adding onto a property.

The proposal is especially attractive to businesses at this point because of the economic downturn that has made credit and capital in short supply.

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SF0552 and HF0877 have been forwarded to the Taxes Committee for their respective chambers.

Simon Reacts to New Budget Numbers

Also last week, legislators got a bit of good news when they learned the state’s projected budget deficit had shrunk from $6.2 billion to $5 billion.

Simon said he is obviously encouraged by the smaller number, but he said it doesn’t necessarily mean a budget compromise between Republicans and Democrats will get any easier.

“Conceptually, I don’t think it’s a game-changer,” Simon said of the new budget forecast.

The Legislature is tasked with balancing the state’s budget by the time the session adjourns May 23. Republican leaders have pushed to solve the deficit through cuts alone, but Democrats like Simon and Gov. Mark Dayton have proposed using both spending cuts and tax increases.

Simon has previously said compromise will mean both sides doing things they find “unpleasant,” but he said he’s optimistic that a deal will be made by the time the session ends—preventing the need for a special session.

“It’s going to happen,” Simon said.

 

Details about how Latz responded to the improved forecast are .


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