Good bye and hello...

 

 

 

 

 

 

"It is going to be a tough road of haul to get to the goals of Thrive 2040...Maybe another tax hike would help..."

The Met Council's dream of building Minneapolis to be of mecca of high rise employment has sure had some puts and takes as of late. The debacle of the downsizing at Target has really hurt as many from the "Target Mother Ship" were given their pink good-byes.

At the same time, other companies have decided to move to town. As others were leaving, there developed and ebb and flow. However, the bottom line is this - more employees are leaving downtown than are being transferred there.

The latest kick in the teeth was to have the TCF Bank HQ pull the plug. They decided life in the burbs might be better (or cheaper) than live downtown. As many know, life downtown can be very expensive due to confiscatory taxation. However, even with high taxes, one of my former clients from my IBM days (ECMC), is moving 500 employees to downtown Minneapolis. They will reside at the Ameriprise Client Building on 3rd Avenue.

Here is the problem. Every time Mayor Betsy talks about curing the ills of her city, money is involved. Usually big money. Being a lifelong Democrat, Mayor Betsy firmly believes money grows on trees someplace in the city parks. She does not understand programs (and there are many of them in Minneapolis), end up being paid for by property or other taxes. After a while, a company whom is concerned about their bottom line, will cry "Uncle". The company will then vote with their feet. In other words, they will move.

Even though many Euphorians (like Mayor Betsy) believe companies should just "take it", and be good "corporate citizens", that is not how the game is played. As much as many think it might be unfair, in a free country such as ours, companies can leave. They can leave the county, they can leave the state, and they can even leave the country.

Expect to see more of this "movement" as we meander down the road towards 2040. Just like when sand fills an empty hole, or when water finds its own level, companies as well as corporate headquarters, will find their path of least (financial) resistance. In other words, they will gravitate towards where the taxes are the most favorable.

So fare thee well TFC. You have been a guest of Minneapolis for many years now. The city will miss the 1,700 employees you are taking with you. Don't worry - you will not be the last. As your departure will mean less fuel for the tax base, it might have to be raised. And then more companies will leave. I can see Mayor Betsy coming up with a new law. One which states that companies in Minneapolis need to just "grin and bear it". No matter how painful it might become...