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Construction workers back subsidy for Mall of America expansion

Last update: April 22, 2008 - 11:34 PM

A public subsidy plan for the Mall of America’s second phase received a rocky reception Tuesday before a key House committee at the state Capitol, though a standing-room crowd of construction workers told the panel that the project would produce thousands of needed jobs.

The House Taxes Committee heard five hours of testimony on a $2 billion plan to create a 5.6 million-square-foot addition across the street from the existing mega­mall.

Though the Senate has included the plan in its overall tax bill, the mall is expected to face stiffer opposition in
the House and from Gov. Tim Pawlenty because of a provision to divert property tax dollars from the state’s fiscal disparities pool to help pay for a $204 million parking ramp.

Without the public subsidy, mall officials have said the project will not be built.

Rep. Ann Lenczewski, DFL-Bloomington, the Taxes Committee chair, said the panel would probably decide by May 1 whether to include the subsidy proposal in a House tax bill. Because the subsidy passed the Senate, it could emerge from a conference committee even if the House doesn’t pass it.

Mike Kaszuba

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