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NRP
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Revitalization program falling short of money slated for Minneapolis neighborhoodsThe Minneapolis council will try to help the NRP by funding 70 percent of the amount originally intended.By Steve Brandt, Star TribuneLast update: October 18, 2007 – 9:47 PM The program that has pumped millions of dollars into housing fix-up loans and other neighborhood priorities in Minneapolis is limping toward an underfunded finish. Meeting in committee, the City Council agreed Thursday to try to fund the second half of the Neighborhood Revitalization Program (NRP) at 70 percent of what was originally intended. It also moved toward redefining how City Hall will interact with neighborhoods in a post-NRP era. The council is expected to reaffirm those decisions in full session today. The NRP was established as a program to pump up to $400 million into neighborhoods over 20 years. The money was to come from the increased taxes generated by development districts and be used for priorities set by residents. But the city's take from those districts dropped dramatically after the Legislature cut tax rates on business property in 2001. The program had collected $224 million in its first 10 years, but that fell to a projected $73 million for the final 10 years ending in 2009. Now it's looking like the collections will fall $12.6 million short of what the multi-jurisdiction program has approved in neighborhood spending plans. But to be prudent, NRP's governing board only let neighborhoods spend 70 percent of the cost of their plans until the income picture clarified. Some neighborhoods are bumping up against that limit, while about half have yet to devise second-phase plans. Budget Chairman Paul Ostrow moved Thursday to formalize the expectation that NRP's second phase won't be fully funded. His proposal directs city staff to identify sources of money that assure at least 70 percent funding of neighborhood second-phase plans. The council backed that proposal, which rests on an anticipated future loan repayment. A report is due back by Dec. 21. Meanwhile, the council also approved a proposal by council Vice President Robert Lilligren to direct a small group of top city officials to devise by Dec. 6 a proposal for how the city will interact with neighborhoods as the NRP phases out. In many neighborhoods, the NRP has paid staff who carry out directions from neighborhood association boards. The NRP has also financed programs in housing, crime prevention, youth work and other locally set priorities. The Lilligren group is to propose a neighborhood structure that is to work with the city when it wants resident input on city issues and recommend whether to make money available for community-initiated projects. According to a city accounting, $43 million, more than half of the money available for second-phase NRP funding, was held back by the NRP's board, most diverted for citywide spending priorities such as subsidized housing, police and a youth board. That has left an estimated $29.2 million to be spent according to plans set by neighborhoods. That compares with $182 million in the first phase. But NRP Director Robert Miller said he's still working to find ways to fill the $12.6 million gap. Neighborhoods are entering the second phase of the program at different times, depending on how fast they spent first-phase money. Steve Brandt • 612-673-4438 Steve Brandt • sbrandt@startribune.com
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