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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Governor: Tim Pawlenty
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