Guest Commentary - Rent Control Ballot Initiative

Guest post today from Cecil Smith, President and CEO of Minnesota Multi Housing Association.
​Our message: think twice.
 
As President and CEO of the Minnesota Multi Housing Association, I want to thank our business coalition partners for their support by joining the Sensible Housing Ballot Committee (SHBC) - a broad-based coalition of organizations and individuals who believe in sensible housing solutions. I am grateful that we stand united in common purpose to defeat two proposals on the November ballot in Minneapolis and St. Paul - which if enacted, would make the current housing shortage in both cities even worse.
 
During a global pandemic, rising economic inequality and surging inflation, we face another crisis in the form of two public questions: Question 1 in St. Paul and Question 3 in Minneapolis – that propose limits on how much rents can rise. These proposals are problematic for a host of reasons.
 
For starters, Question 1 in St. Paul puts a strict 3% annual cap on all rent increases, without consideration of inflation. Question 1 will enact a rent control ordinance without any exemptions, even for Mom and Pop property owners or new construction - leading to fewer and poorer-quality housing options in our city.  This proposal will impact economic development, new investment, jobs, and the neighborhoods in the city. a better answer to the problem of scarce housing and increasing rents is to increase the housing supply, rather than control prices, which discourages investment in housing.  
 
Question 3 in Minneapolis would give the City Council the authority to regulate rents and create rent controls. Experts have shown that rent control results in less housing - not more - and poorer quality housing. The Minneapolis Star Tribune tells us, “Among economists, rent control has long been considered a textbook example of bad public policy, one that messes with the smooth function of the housing market while failing to consistently help those who really need it.” Supporters of Question 3 cannot say how much the measure will cost taxpayers - or how it will be enforced. Question 3 is essentially a blank check to the City Council to create any kind of rent control ordinance they want at whatever cost they choose – all without voter approval.
 
The Sensible Housing Ballot Committee and its coalition partners are giving Twin Cities voters the facts about Question 1 and Question 3 - and our message is getting through to Minnesotans: Think Twice about rent control. These rent control ballot initiatives will impact our cities growth, jobs and will exacerbate our housing shortages and reduces the quantity and quality of available housing.  However, to defeat these measures we need you to talk to your neighbors, family, friends, and colleagues in Minneapolis and St. Paul. Contact your elected officials to express your concerns about these measures.  Above all - vote NO on rent control on November 2.
 
You can follow the SHBC campaign by visiting www.ThinkTwiceStPaul.com and www.ThinkTwiceMinneapolis.com or follow us on Twitter at @ThinkTwiceSTP and @ThinkTwiceMPLS.
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October 20 is National Support Your Local Chamber Day.  Cheers to all the chambers reaching, serving, promoting all of you together!
 
See you in the trenches.
B

A key F.D.A. advisory panel has concluded a series of votes to recommend boosters for all three coronavirus vaccines used in the U.S. — Pfizer-BioNTech, Moderna and Johnson & Johnson. The F.D.A. and the C.D.C. have already authorized Pfizer boosters and the lower-dose Moderna booster. Still waiting on J.&J.
 
Senate Republicans are pushing for exemptions to the vaccine/testing mandate for state employees who have already been sick with COVID-19. State workers who refuse to get the vaccine must get tested weekly for COVID-19.  The state policy already exempts unvaccinated individuals from weekly testing for 90 days after they have been infected. Seventy-four state workers have been placed on “no-pay” status for refusing to be vaccinated or tested. 
 
In the week ending Oct 2, nearly 1400 K-12 students tested positive for COVID-19. And that’s a decline.  Minnesota got the New York Times treatment earlier this week because our hospitals are nearing capacity again.  This is especially true in rural Minnesota hospitals.​

The big story this week: Rising costs (wholesale prices rose a record 8.6% over the last 12 months) are underscoring inflation that's looking less and less transitory. It's a problem that's likely to really start hitting consumers come holiday shopping season, given a supply chain backlog that's likely to linger throughout winter. What’s causing inflation to rise in the Fed’s Ninth District specifically? Interesting that Mpls Fed President Kashkari thinks short-term interest rates will stay near zero for a few more years. 

Strong Q3 earnings reports from U.S. Bank, United Health, Delta, and others. And that includes the Minnesota government! 

DEED has announced its first round of Main Street Economic Revitalization Awards.  On behalf of Saint Paul, the Saint Paul Minnesota Foundation has been awarded $8.96M, to support economic recovery from the impacts of social unrest and the COVID-19 pandemic. This award accounts for over 22% of the funding (out of 8 awards). See a list of all awardees here. 

​Employer Tax Credit’s uncertain future. What you need to know. 

​Please take this 5-minute survey to help the Minneapolis Fed and President Neel Kashkari better understand how your business is faring during the recovery phase of the pandemic.  

State: Governor Walz has started his tour of projects seeking state funding. According to MMB Commissioner Schowalter, requests for the 2022 capitol budget total nearly $5.5B. That compares with a 2020 bonding bill that totaled $1.9M, and was the largest in state history.
 
Local:

• Mayor Carter voted to support the rent control ballot initiative despite his “concerns with regard to potential new housing starts, at a time when our population is growing so fast.” Opponents, including your Chamber, are deeply concerned that it will discourage development and exacerbate the Twin Cities' housing shortage. 
• As November 2 approaches, be sure to check out our East Metro Voter Guide. And how does ranked choice voting work again?

Tremendous – and well deserving – group of MSPBJ’s 2021 Women in Business.  Read, promote, celebrate with them. Their success is ours!
 
Find out what’s going on with your Chamber on our Events  Calendar!  Lots of networking opportunities, and our final Equity Leadership Series of the year, tomorrow, on “How to lead differently and track impact.”  Cap off the year with our Equity Summit on Nov 9. And, yes, save the date on December 9 for our annual Holiday Open House – this year is our turn to thank the restaurants!

Workers are quitting at record rates. And restaurants are bearing the brunt of it. What’s really behind the labor shortage? Watch an interview with the Minneapolis Fed’s labor economist to hear what Abigail Wozniak has to say.
 
The SBA’s Minnesota office is hosting a panel discussion: Addressing Workforce Needs: Creating Positive Company Culture. Oct. 27, 3 – 4:30 p.m.  Hear from business owners working to build company culture to support employee recruitment and retention. Register here.
 
Nationwide research shows that 67% of people are experiencing increased stress, 57% have increased anxiety and 54% are emotionally exhausted. Productivity is impacted in many ways, as one in five of our employees are taking longer to finish tasks. As leaders, empathy is one of the greatest skills we can bring to the table. Learn more about the research here. 

Make sure you register for our Equity Summit! It is the place for business and community leaders to gather each year and chart a continued path of progress. Register here.

Racism and the Economy: Focus on the Wealth Divide. Join the Fed at this next even in their virtual series examining the impact of structural racism.

Target announces its plan to invest $100M in Black-led organizations through 2025 as it continues to realign its philanthropic priorities.

Scannell Properties has paid $3.5M for a development site that will expand its Amazon-anchored industrial park in Lakeville. 

Amazon is planning to build a fourth Twin Cities warehouse – in Woodbury. 515K SF distribution center, potential for 500-1000 jobs. Located on SW corner of Hudson Road and Manning Ave. To be completed in late summer, 2022. 

​B Line’s $65M BRT will connect downtown Saint Paul to Uptown along Marshall and Selby avenues and Lake Street. 
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Oakdale considers Minneapolis-Stillwater rapid-transit buses.