Property tax revenue is an important indicator of the economic vitality of an area. In 2014, the trends of past years continued, as the chart below illustrates. We continue to see revenue from riverfront increase faster than in the rest of the city. The Central Riverfront has driven overall growth in tax revenue along the riverfront – in 2004 it accounted for nine percent of citywide total property tax revenue; today it accounts for nearly 11 percent.
By comparison, the Upper River accounts for a decreasing portion of citywide property tax revenue. This can be attributed to a mix of factors, including depressed property values, sluggish private investment in some areas, as well as the transition of tax-paying land to parkland. In the long term, we can expect investment in parkland will begin to pay dividends as it attracts nearby private development.
Data source and methodology: Data analysis based on Hennepin County Parcel Dataset from the end of the calendar years 2004 to 2014. For years prior to 2010, data acquired from MetroGIS DataFinder land ownership data, which originated with the same Hennepin County dataset. Parcels were tagged as being in the Upper River, Central Riverfront, Lower Gorge and/or City of Minneapolis, as appropriate. The boundaries of the Upper River, Central Riverfront and Lower Gorge were delineated by the Minneapolis Riverfront Partnership at a distance of roughly one-half mile from the river, following Census blocks. To provide the comparison in the chart shown above, we summed the taxes paid by each property in the Upper River, in the Central Riverfront, in the Lower Gorge, and in the full City of Minneapolis for each year of analysis. The results were plotted in the chart above.