Apparently we are not the first to realize that our region’s employment situation has been grim and the repercussions of losing jobs can be devastating including population decline.
There is an organization that has been created to try to promote and bring employers to the Twin Cities metro area. It is called Greater MSP.
My first reaction to this was “oh no, not another ‘do nothing’ organization siphoning tax dollars”. As I read further into it, this may hold some merit. They have managed to pull together a pretty impressive board of directors to manage the organization; at least their credentials are a lot better than mine. There are a number of business leaders on this board that should know what is needed and how to achieve it. The organizations visions and goals line up with what I believe our region needs to focus on:
Vision for a Brighter Future for All
The GREATER MSP Partnership is committed to stimulating economic growth and prosperity in the Minnesota’s 13-county Minneapolis Saint Paul metro area. As a public-private partnership funded by charitable donations, its vision is to be a value-added resource to all economic development organizations in the Greater MSP region. Its goal: a brighter future for all Twin Cities residents and businesses.
The Partnership works with dozens of economic development partners at the state and regional levels. It provides vision, strategy, resources and staff support to governments and organizations involved with job creation, regional marketing, business recruitment and business retention. Specifically, the GREATER MSP Partnership leads or partners with existing organizations to:
- Set a strategic vision for regional economic development
- Define and guide a tactical economic development agenda
- Brand and market the Greater MSP region to internal and external audiences
- Retain and expand current businesses in the region
- Attract new businesses to the region
- Connect businesses with local resources and incentives
I heard about this organization from Minneapolis St Paul Business Journal that wrote a short article about the new organization and their kick-off event coming up.
The organization will be holding a big kick-off event Tuesday evening at the Pantages Theater in downtown Minneapolis where invited guests and media will learn more about the region’s new “brand and marketing campaign” and hear about how Greater MSP will help recruit companies to the region.
Read Full Article
Let’s hope their efforts produce results, our region needs economic growth. Take a moment to visit their website and let’s support their efforts any way we can. They are running all this from Charitable Donations according to their website.
Image via Wikipedia
Sure looks like it. I can’t say that I have followed the China Real Estate Market very close (and I don’t intend to either…), but I think this is interesting… Mainly because the possible size and scope.
I don’t think this will have any impact on our market unless of course it is large enough to create global economic troubles, and if that is the case then all markets will be effected..
China’s overheated real estate market is showing signs of correction. With a glut of overpriced, vacant residential real estate on their hands, many large developers in Beijing have been offering steep discounts recently, even 60 percent. But the developers may be taking a hard hit, Chinese experts say, as they are sitting on a mountain of debt, according to a recent report.
The mid-term report of China’s 98 real estate development companies that are listed on the stock market showed that they have an average debt to equity ratio of 62 percent–with 40 of them exceeding 70 percent–and a total combined debt of 1.01 trillion yuan (US$158.3 billion), far exceeding their revenue growth.
Read Full Article from Epoch Times
This is a great visualization from calculatedrisk blog. The commercial real estate market is tracking about 18 months behind residential. Commercial Property Price Index vs. Case Shiller. So what my question is: In order for the Residential Market to recover, we need jobs. The primary purpose of Commercial property is commerce aka Jobs. So which market will recover first? Residential or Commercial?? Thoughts?
Also another question comes to mind – had we not interfered with the residential market (government intervention) would the Case Shiller index bottomed out like the CPPI? Was it really worth it?
CPPI vs. Case Shiller (calculatedrisk blog)
After many years of talking about it – looks like they are going to proceed with their grocery store at 12th and Hennepin downtown Minneapolis.
Lunds Food Holdings Inc. is about ready to break ground at its new location in downtown Minneapolis.
The grocer, which owns 10 Lunds and 11 Byerly’s supermarkets in the Twin Cities, will hold a ceremonial groundbreaking at the 12th Street and Hennepin Avenue site on Sept. 1. CEO Tres Lund will be on hand, wielding a jackhammer.
Lunds said in a news release that it expects to complete the 20,000-square-foot store by next summer.
Full Story Here
You may know of Jerry Trooien as the St Paul Real estate developer that had proposed the Bridges of St. Paul, a $1.5 billion complex of retail shops, a hotel and housing on the West Side flats across the Mississippi River from downtown St. Paul. That proposal was turned down by St Paul in 2007. He also owned the Cloud 9 Sky Flats (condominiums) in Minnetonka, which is under investigation and 3 real estate professionals have pleaded guilty in fraud charges. This issue is yet to be resolved.
Cloud 9 Skyflats - Minnetonka, MN
Story from the St Paul Pioneer Press
As he tries to re-establish himself with five properties he was allowed to keep, he’ll need to win over some lenders who have already started foreclosure proceedings.
The deal was finalized Tuesday in federal bankruptcy court in Minneapolis.
And if he can hold onto the properties, he’ll share half the cash he generates with creditors who OK’d the reorganization plan.
There is some good news that we will hopefully begin feeling in the real estate market. The default index is dropping on first and second mortgages despite high unemployment rates, reported by S&P Experian.
- S&P Experien Default Index
This is Nationally, so hopefully our market place is tracking similar or better. Could this be a sign the worst of the foreclosures is behind us? Or is this too early to judge if this is just a temporary lull?
The National Association of Home Builders reports Builder Confidence still depressed. The Wells Fargo/NAHB HMI (Housing Market Index) remains unchanged as reported today August 15, 2011.
Wells Fargo/NAHB HMI August 15, 2011
Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. He noted that 41 percent of respondents to a special questions section of the HMI indicated they had lost sales contracts due to buyers’ inability to sell their current homes.
“The uncertain economic climate and concerns about job security are discouraging many potential buyers from exploring a home purchase at this time,” said NAHB Chief Economist David Crowe. “While buying conditions are very favorable in terms of prices, interest rates and selection, consumers are worried about what the future will bring, and builders are echoing those sentiments in their responses to the HMI survey.”
NAHB: Builder Confidence Unchanged in August.
The Banks Are Killing the Housing Market with Short Sale Policies.
Great post by John Murphy, a friend and fellow Realtor. This is problem that needs to be addressed to help the real estate market correct.
I recommend taking the time to read it.
Image via Wikipedia
Oh no! Not Again…
City of Lakes and Tax Hikes.
Full Disclosure: I own rental property in Minneapolis, and can not vote there because I am not a resident. Anyone interested in buying my Rental Property??
Story by Star & Tribune:
Chastened by last December’s noisy pushback from Minneapolis property taxpayers, Mayor R.T. Rybak responded Thursday with a 2 percent tax hike proposal for 2012 — the smallest he’s urged in his 10 budgets.
That proposal contrasts with a 6.7 percent levy hike that had been budgeted for 2012 in the city’s five-year budgeting cycle and the 7.5 percent the mayor sought last year for 2011 before a backlash from taxpayers and the council cut it to 4.7 percent.
Last December, homeowners stormed City Hall before the council adopted a 2011 budget to demand further cuts, saying they couldn’t weather property tax hikes during a prolonged recession. “Minneapolis residents have told us loud and clear that property taxes are too high and they want us to do everything we can to hold them down,” Rybak said.
But Rybak’s 2012 proposal is built on the gamble that the city’s retired police and firefighters will approve a pension merger that finance officials say will save the city $17.1 million in spending next year
Read Full Story
After looking at the stock market crash, this is really looking to me like the safest place to put money right now…
Buy some homes for rental properties. (on the right column – use my spreadsheets to analyze rental properties to see if the investment makes sense for you.)
Star Tribune Article on rental vacancy