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<br /> twincities.biziournais.com THE BUSINESS JOURNAL Commercial Real Estate&Leasing Guide September 24,2004 9
<br /> Greenberg:One thing that's important to , THE ROUNDTABLE PARTICIPANTS
<br /> stress is that technology is great,but it will ''
<br /> not replace human contact. If too much Lisa Dongoske, vice president&port- COLOSSAL BAN K
<br /> reliance is placed on it by a property manag , 1; ,�� <, folio manager, United Properties SMALL BUSINESS
<br /> er,you're going to lose a critical component Chuck Greenberg,general manager, LOAN APPLICATION
<br /> that ties the tenant to your property, that Colonnade Properties
<br /> being the personal relationship between the ,, 4E' Steve Herron, senior vice president,
<br /> tenant and the property manager. �a Zeller Realty Corp.
<br /> '?,.:421,.'51,04„,.
<br /> n _ Michael Stephens, regional manager, 4
<br /> The Business Journal: Before changes ` ' . First Industrial Realty Trust Inc. 51,04
<br /> ®�
<br /> the state enacted in 2001,Minnesota's com- "rF -. o0 16
<br /> mercial property owners faced some of the x , 2
<br /> 611111.
<br /> highest tax rates in the nation.I understand I don't know if someone doesn't like you, 1
<br /> you're concerned those changes could be :i s ''/ that they'll say that in a survey. But with 5 D
<br /> rolled back. Why is this important to you, HVAC,it's often a limitation of system.If a L.
<br /> and what do you think will happen? Let's system can't cool on certain days, it can't 0 V
<br /> start with you,Steve,since you're president ' cool. That's the No. 1 tenant complaint in
<br /> of the local chapter of the Building Owners i our industry.
<br /> and Managers Association(BOMA). rDongoske:Especially in our climate. 4A14 ®•
<br /> Herron: In the late 1990s, BOMA put ,:''''',.,11.,P ` t Herron: That's right. Our climate has 3 :e..) —� \6
<br /> together a comparative tax study that coin- ' ,:3_ such extremes,and you can't design a build- / ®�
<br /> pared us to other communities.We were off ing that can handle all of them.A building 0
<br /> the charts,significantly higher than compa- ,i41 ., , {`' will operate well up to about 95 degrees.And op 2
<br /> 4� � o
<br /> rable markets. What it said to businesses it will do OK down to 0 or 10 below It is dif- 1 \ 5
<br /> considering moving here is we really don't ficult to do at 30 below O®
<br /> want your business.BOMA has really made GLENN HALVORSON THE BUSINESS JOURNAL Greenberg: And in the spring and fall, o •
<br /> it an issue to advocate against these high ABOVE: Chuck Greenberg you've got one day when it's 30 and one
<br /> taxes.We were able to get to a tax rate corn- where it's 70.
<br /> pression that puts us in the top 15 in the The Business Journal:A disadvantage of Stephens: It's not a gripe,but one thing
<br /> country,down from the top five.That's more this discussion is you're speaking from the I've heard from tenants is they want to be /� j
<br /> realistic,because we're probably one of the same perspective.Wear the tenant's hat for a treated like you want to be treated. If they DANCE A F T E 1 t
<br /> 15 largest communities in the nation. Our moment. What are some of the gripes they call for something,call them back in a rea-
<br /> priority is to make sure the gains we've made express?What could you be doing better? sonable amount of time.If they ask you to OU T
<br /> are kept. Herron: Our industry relies heavily on fix their HVAC, do it right the first time.
<br /> Greenberg: Unfortunately, I think these tenant surveys. We get many of the same Treat them fairly. T H LOAN
<br /> V•
<br /> reforms are destined to be rolled back. The comments:"HVAC(heating,ventilation,air -
<br /> need for money is out there,and unfortunate- conditioning)is terrible.""Cleaning is OK." Neil Orman is based in Minneapolis.
<br /> ly, there's not much desire to cut spending.
<br /> - , � r 11 � 1 As a small business owner
<br /> That means they're going to have to look fore t ' z :._,,„11,,,,,,,, t., ,,,1
<br /> gym,.;,
<br /> s T r t have to be quick on
<br /> more sources of revenue.Unfortunately,corn- ,� .� Y , � youq
<br /> mercialrealestate—with our collective,very >` ' .' your feet. But you shouldn't
<br /> high property values — is an easy pool ofsioll,
<br /> fi.i.,,,,
<br /> f t
<br /> money. There isn't a big enough concentra-
<br /> tiontii' rhave t0 be tO get a loan:`Our
<br /> of members or votes in any one district �r If` a�"" g bankers are decision makers
<br /> to make a difference. ' :111,:.
<br /> ^1, _ 1
<br /> . a youthrough
<br /> And eventually there will be a revolt from Who will lead
<br /> people who do vote,as opposed to buildings - the process, and get back
<br /> who don't. Even if BOMA, the National t' s> #yr- to you on your loan request
<br /> Association of Industrial & Office
<br /> `�t►" ' ,� fast.We'll be there everystep
<br /> Properties, and all the other organizations ,, t+r ,,
<br /> were able to mobilize their people, it's not i, , of the way with advice and
<br /> going to make a difference. ;lie:- „,,Dongoske: I disagree with Chuck. Trade ry n ,m ► financial support to help
<br /> organizations can actively motivate people. -„ r , your business thrive It's not
<br /> We need to get people to understand this 1+�i t ^”
<br /> f the way most banks operate
<br /> issue better, and focus instead on how the i .4 4.110,�, sd
<br /> state is spending our money.For example,the ONE LEADING EDGE LOCATION
<br /> But it's how we've helped
<br /> services that rural northern Minnesota com-
<br /> munities get,compared to urban communi- "Extremely helpful,extremely efficient."That's how Bob Michalek of Display Solutions
<br /> ties, is way off the charts. They have snow describes the Elk River Economic Development Department.When Bob and his partners,Tom than 85 years,
<br /> plows going through when there's no snowBuchta and Jim Studee,launched their firm,the city provided everything from advice on
<br /> on the ground. That's how wild and weird potential business locations to help in securing a$50,000 Micro Loan.
<br /> state spending is.We need to educate people "It was important to us."The low-interest loan helps Display Solutions to minimize
<br /> on that,before we allow these tax reforms to overhead.As Bob notes,"A start-up business can use all the help it can get."
<br /> go out the window. It's fairer the way it is
<br /> now It's going to be a battle and it's going to For site and financing opportunities,please call (763) 635-1040,or visit u,s on the
<br /> happen this year,because the representatives Web at www ci.elk-river.mn.us and click on"Grow Your Business."
<br /> turn over in the next election.
<br /> Greenberg: I agree with Lisa that the WESTERN BANK``-
<br /> biggest problem is that money isn't being crry or
<br /> spent correctly.But I think their solution will Elk ......._ We're banking on people.
<br /> be to take money from buildings that can't River wrww.western-bank.com
<br /> vote back against them. The Light Industrial Hub of the Northwest Metro
<br />
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