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Latest revenue forecast to show size of Minnesota surplus

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Minnesota lawmakers will find out Wednesday whether they will once again have extra money to spend or save when they reconvene at the State Capitol in February.

Any surplus announced Wednesday is expected to be much smaller than the $17.5 billion budget surplus the DFL-controlled Minnesota Legislature used up earlier this year on a sweeping list of progressive priorities and the largest budget in state history.

An economic forecast from earlier this year predicted a surplus of nearly $1.6 billion for this two-year state budget cycle that began in July. A remaining balance of $820 million from the end of the last two-year budget cycle will be tacked onto any surplus projected for the current budget.

State lawmakers are heading into an even-year legislative session that typically revolves around funding construction projects.

DFL legislative leaders told the Star Tribune in October that passing a bonding bill to pay for infrastructure projects will be the main priority, but any surplus could also help fund other priorities such as child care affordability or investments in pensions.

Top Republicans countered that any extra cash should be used on tax cuts instead of new spending, especially after Democrats hiked some taxes earlier this year.

This is a developing story. Return to StarTribune.com for updates.



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Minnesota Lynx fans excited for return to dominance following playoff win

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Josh Franklin, an attorney from St. Paul, stopped for a moment in the middle of First Avenue to admire the large “Go Lynx” text painted on the street. He thinks the timing of the team’s success is beneficial to the city, mentioning it would be the first professional championship in Minnesota since before the pandemic, and the unrest following the murder of George Floyd.

“Seeing this here … in 2024 just really gives an entirely new feeling to the city, bringing back togetherness,” Franklin said.

Minneapolis City Council Member LaTrisha Vetaw attended Tuesday night’s game with fellow Council Member Andrea Jenkins. Vetaw believes there’s more confidence in the Lynx’s chances this year given their past success.

“We got hyped up about the Timberwolves, but there’s a little bit more certainty in this,” Vetaw said.

In interviews with fans leaving the arena and others who watched at the Minneapolis women’s sports bar A Bar of Their Own, most said they had started following the team closely in the past several years. The popularity of Indiana rookie guard Caitlin Clark has brought new attention to women’s basketball. But some have been watching for much longer.

“I always thought women’s sports were popular, I think everybody just kind of joined the bandwagon,” said Crystal Ruiz, a season-ticket holder.



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Downtown Minneapolis still grappling with office vacancies, plummeting values

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CBRE, which marketed the property, declined to comment on the sale.

Adam Duininck, president and CEO of the Minneapolis Downtown Council, said while the low sales prices might sound alarming, there are bright spots. Homeowners in the city are facing a few tough years of property tax increases as commercial values drop, he acknowledged. But the lower prices have also enabled new players to buy downtown properties, paving the way for fresh ideas to transform the urban core.

“Hopefully, they come into the market with a certain kind of energy and optimism that helps drive the market back up,” he said, adding public safety improvements have also fueled recent momentum.

Take the Kickernick Building, which recently opened an art gallery. Earlier this year, Twin Cities-based United Properties sold the historic former warehouse on the edge of the CBD for $3.79 million. In 2017, United paid $19.5 million for the building.

Just a couple blocks away, Tom McCarver and Steve Boynton bought a mixed-use, nearly 31,000-square-foot building at the corner of Seventh Street and Hennepin Avenue that most recently housed Seven Steakhouse & Sushi. Last month, they paid about $4.3 million, slightly more than half of what it sold for in November 2017.

Tom McCarver, CEO of Hennepin Real Estate Partners LLC, poses Tuesday on the rooftop of the Stimson Building in Minneapolis that formerly housed Seven Steakhouse & Sushi. (Alex Kormann/The Minnesota Star Tribune)

After the restaurant closed during the pandemic, the building went into receivership and up for auction. McCarver and Boynton, executives at a company that owns billboards across the metro, were among nearly a dozen bidders. They won the auction in March, but because of “legal hurdles,” the sale didn’t close until last month.



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Third wildfire detected in Superior National Forest in Minnesota

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A third wildfire burning within the Superior National Forest was discovered Tuesday near Bogus Lake in Cook County.

The fire, 45 acres in size, was active overnight into Wednesday as firefighters and aircraft continued suppression efforts, according to the U.S. Forest Service. The cause is unknown.

Bogus Lake is less than 20 miles northeast of Grand Marais.

A drought has put much of the upper Midwest, from northern Minnesota to the Upper Peninsula of Michigan, under “above normal” conditions for potential wildland fire, according to the National Interagency Fire Center.

The Bogus Lake Fire is the second wildfire to be discovered in the Superior National Forest this week and the third one actively burning since early September.

Monday, a fire was detected on the eastern side of Shell Lake, about 4 miles north of Road 116 within the Boundary Waters Canoe Area Wilderness, in St. Louis County. That fire is less than one acre, with the potential to spread east near Agawato Lake and the Sioux-Hustler Hiking Trail, the Forest Service said.

That fire grew to 45 acres and half of it was contained as of Oct. 1, according to the Forest Service. It is suspected of being caused by humans. Firefighters remain assigned to the fire.



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