HomeMy WebLinkAbout2021 04-13 Ramsey County pushes ahead with affordable housing levy; cities worried about tax burden PIONEER PRESS4/15/2021 Ramsey County pushes ahead with affordable housing levy; cities worried about tax burden — Twin Cities
NEWS POLITICS
Ramsey County pushes ahead with
affordable housing levy; cities worried
about tax burden
By IMAININA WIEINI IEI . I dweniger@pioneerpress.com I Pioneer Press
PUBLISHED: April 13, 2021 at 6:56 p.m. I UPDATED: April 13, 2021 at 7:38 p.m.
As Ramsey County pushes ahead with its proposed levy for low-income housing projects, some
cities are voicing concerns over the looming tax burden, the distribution of funds and how much
say they'll have in where these units are built.
The county is proposing a levy through its Housing and Redevelopment Authority that would
increase annual taxes on a median -value residential property by about $45.
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4/15/2021 Ramsey County pushes ahead with affordable housing levy; cities worried about tax burden — Twin Cities
"We cut a million dollars from our budget last year to try to help shore ourselves up for this year
and what might come, and also did a zero percent levy for this year," said Maplewood city manager
Melinda Coleman. "This just seems like it's gonna be sort of a double whammy to our taxpayers,
because there is going to be this cumulative effect. We're a little bit concerned about that."
TWO CITIES FACE DECISION
On Tuesday, the Ramsey County Board of Commissioners formally requested the cities of St. Paul
and North St. Paul to pass a resolution allowing the county to collect the levy from their property
owners.
Of the 19 municipalities within the county, these two cities had their own HRAs established prior to
1971 when the county was given the ability to create its own. Therefore, they are statutorily
required to pass a resolution to participate in the county's levy. Or, they can choose to opt out. They
have until the end of May to decide.
An HRA is a legally distinct public entity or a special taxing district that has powers to purchase, sell,
lease or dispose of real estate. It also has the authority to levy up to 0.0185 percent of estimated
market value on all taxable property within the county specifically to fund housing needs.
Ramsey is the only county in the Twin Cities that does not have an active levy authority dedicated to
affordable housing. The county projects that the levy would produce an extra $11.6 million per year
for housing needs.
The county can proceed without the two cities, but said it would drastically reduce the available
funds. �
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4/15/2021 Ramsey County pushes ahead with affordable housing levy; cities worried about tax burden — Twin Cities
TAX BURDEN VS. COMMUNITY BENEFITS
North St. Paul is weighing its options.
"I can tell you that it's a concern because we already have an HRA," said Scott Duddeck, North St.
Paul city manager. "What the county is proposing would more than double what we already have
locally."
St. Paul said it needs more time to study the proposal.
"It's an interesting idea and possibly an additional source to fund needed affordable housing in our
city and county," Housing and Redevelopment Authority chair Chris Tolbert said. "St. Paul is in the
beginning stages of doing our due diligence on this proposal, and I look forward to further
conversations."
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The HRA would be a primary funding arm of the county's ECoinoinn iic CornpetiLiiveness and Incllusion
........................................................................
Plain unveiled in March. The plan would shape county investments over the next four years through
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the lens of racial equity.
County Commissioner Trista MatasCastillo stressed the urgency of providing affordable homes for
residents, saying there is a shortage of 15,000 units countywide.
"We know that if we have enough housing in Ramsey County, we can close the wealth gap between
communities of color and white communities in one generation," she said. "And I think knowing
that it is an absolute fact, it is something that we must make happen. And I think it's a moral
imperative."
While altruistic in design, some aren't so sure it's the cure to end all ills.
Alexander Buster Deputie, a Liberian immigrant who lives in St. Paul, said the plan is less about
closing the gap than it is about redistributing wealth.
"It focuses on government coming to the rescue of these communities," he said. "When did
government move from limited to a savior? Where is all the money going to come from to fund all
these programs? Are we not taking tax dollars paid by, as the report admits, higher earning white
folks and redistributing to people of color through additional taxation? How is this fair?"
MORE DIALOGUE NEEDED
Local leaders say they need more information.
Although Maplewood does not have the ability to opt out, Coleman said there hasn't been enough
dialogue between the county and the city on specifics. She said she could not get a commitment
from the county on how the funds would be distributed.
"That in itself is a little concerning because we're paying the money and we don't know what we're
going to get back;" she said.
Smaller cities worried that they would be footing the bill for projects in St. Paul, the biggest city in
Ramsey County. 3
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4/15/2021 Ramsey County pushes ahead with affordable housing levy; cities worried about tax burden — Twin Cities
"We want to ensure that if it does go into place, what gets taken from Vadnais taxpayers? And what
gets reinvested back into the community?" said Kevin Watson, Vadnais Heights city administrator.
County Commissioner Victoria Reinhardt, whose district includes Maplewood, North St. Paul and
White Bear Lake, said the levy would benefit everyone in the county.
"It's really locally driven," she said. "This isn't something where we're coming in and saying,'Hey,
this is what we're going to do and city, you need to deal with it."'
Tags: IHl uusiling, Maplewood, North St. IPau.ull, I annsey County,
IRairmusey County Board, St. Paull
Deanna Weniger I Weekend reporter
Deanna Weniger covers Ramsey County and works a weekend breaking news shift.
She has more than 15 years of experience at daily newspapers in Michigan and
Minnesota. She has covered the environment and several geographic areas and
has been a columnist.
dweniger@pioneerpress.com
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