Minneapolis neighborhoods headed Monday toward a legal and legislative confrontation with the city over who has the rights to neighborhood revitalization money.
The governing body that has overseen use of the money for the past 20 years authorized its staff to seek state legislation to protect the money against budget actions taken by the City Council last month. It also directed its staff to work with any neighborhood organization that wants to challenge the city action in court.
City Council President Barbara Johnson, a member of the board, cast the only dissenting vote, warning afterward of unforeseen consequences in going to the Legislature or courts. "You put it in someone else's hands, you lose control," she said.
The dispute arises from the council's freeze of $13.3 million in money set aside for neighborhoods but not yet spent. The council acted as part of its 2011 budget. That money would presumably then be used to finance neighborhood programs in 2012 and 2013, years when the council signaled its plans to use money it had previously earmarked for neighborhoods to fund property tax relief.
The council directed a variety of reports before it takes further action on that direction but neighborhoods aren't waiting. They regard money set aside under the Neighborhood Revitalization Program (NRP), which allows neighborhoods to direct money to locally set priorities, as rightfully theirs. The board that runs NRP includes neighborhood representatives, public officials from four jurisdictions, including the city, and other community representatives.
The city action leaves 39 neighborhoods without program money, and only 30 with some left to spend, according to NRP Director Robert Miller. Neighborhood staff directors complained the cutoff is also hurting their ability to attract money from foundations and other outside entities.
Miller cautioned that previous legal opinions mean neither the board nor neighborhood groups may use NRP money to sue the city. But they have other sources. Nick Kakos, who offered the action that was approved Monday, said his and nearby neighborhoods around the Uptown area raise a five-figure income annually from a wine-tasting party, for example.
Because NRP was authorized by state legislation and is governed by the multi-party board, neighborhoods claim the city can't unilaterally freeze the money. But the city controls the development districts whose property tax yields funded NRP's treasury, which got its last dose of money in 2009. Kelash said he's asked Senate legal staff to research some of the legal issues.
Steve Brandt • 612-673-4438
