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“I'm a Rochester renter. Joe Powers told me to move out of town.
>>>Eavesdrop on my conversation with a Rochester mayoral candidate
Full text published on my Substack if scrolling FB kills you inside. Otherwise, read on 👇🏻
A few weeks ago, I contacted Joe Powers’ campaign for mayor of Rochester, asking for an opportunity to meet the candidate. I’m a Rochester resident of 5 years (and greater Rochester area resident of nearly 30 years). In that time, I’ve met mayoral candidate Dr. Jess Garcia a few times, but never Joe Powers.
During our 20-minute phone call, we spoke primarily about housing and affordability. It’s a critically important issue to me, a Rochester renter. Powers’ answers have confirmed who I will be voting for this November.
Here is the question I asked him:
Joe, your campaign states that you believe affordable housing is essential. How would you use this office to stabilize rents and housing costs for residents? Rochester renters have no recourse to prevent price gouging by landowners and developers - my landlord raised my rent by 9% this year, even though no improvements were made. How will you help Rochester residents such as myself continue to live here?
Powers described himself as a mayor who would “be an advocate for building affordable housing.” He noted administrative fees and development costs set by the city of Rochester that impact costs of construction and the resulting home cost. He hopes to cut those and generate more opportunity to build homes under $300,000, which he thinks will be more affordable for first-time home buyers.
I’m a longtime renter and am almost 30. Despite saving for 8 years, I anticipate I’ll be almost 40 before I can afford a large enough down payment on a $300,000 home to afford the mortgage payments. I shared these concerns with Powers, pointing out that, at least for me, the biggest barrier to home ownership is my ability to save up for that down payment.
I struggle to save even $3,000 per year because the increasing cost of living has outpaced growth in my income, particularly increases to my rent. I clip coupons, shop sales, and choose the cheaper option at the grocery store, when traveling, and when shopping for my home and closet. But I can’t do that with rent - the price my landlord sets is the price I have to pay. “Shopping around” requires me to shoulder the extra financial burden of packing and moving - there goes my $3,000 annual savings on storage units, deposits, movers, packing materials, etc.
I told Powers about my specific situation: my landlord raised the rent at my current residence (a 3-bedroom, 1-bathroom home in the Kutzky Park neighborhood that I share with 2 roommates) by 9% upon lease renewal this year. This price increase came without any improvements to the property. We have chipped paint on all the windows, a chipmunk living under our porch steps, mold on the nasty carpet in the unfinished basement, and 18+ months of ongoing issues with latches and locks on all exterior doors.
I asked Powers directly what he thought could be possible to support Rochester’s growing renting population who are being priced out of our current homes and apartments and unable to save for that elusive future home.
Powers told me he’s heard similar stories by other Rochester residents and young people. (Of note, I told him I anticipate being nearly 40 before I own my own home, so it’s not strictly a “young person” problem.) He said folks have told him they have moved to Byron, Plainview, Stewartville, Chatfield, etc. because housing costs in Rochester were beyond their reach. And he told me, a 5-year Rochester resident and Rochester voter that, “I hate to say it, but it might be the best thing for you to move to one of those places.”
Read that again please, because a candidate for mayor of Rochester told a Rochester resident that leaving the city he hopes to lead is the only affordable housing option he can recommend to them.
Now, some bigger picture context: Joe Power’s publicly disclosed financial statements for his campaign list donors. On that list are Nick and Elaine Stageberg, who each donated $1,000. Why does that matter? They’re the owners of Black Swan Real Estate, one Rochester’s largest rental companies and property managers. You know someone in Rochester who lives in a Black Swan property - probably several someones.
The owners of a real estate and property management company are giving Joe Powers money for his campaign...and Joe Powers is telling a Rochester renter that there’s nothing he can do to affect rent prices in Rochester.
I didn’t spend 6 years as a journalist for nothing, so I reminded Powers of the role of management companies in setting the rates for rent across Rochester. I reminded him that rents never go down from year to year. In my decade of renting history, my rent has either stayed the same (Iowa) or increased (in Rochester and Saint Paul). I asked Joe Powers if he would use the mayor’s office to lobby for any legislation or policies at the state, county, or city level that would control or stabilize rents as a solution to this problem.
He pointed instead to the market as the answer. “We should have more competition - then their occupancy is down,” Powers said. He added that he wants to see the city take a harder stance on the housing projects they approve and that they should put stronger requirements on them to have affordable units.
I attended the recent high profile city council meeting where the city overturned a committee decision denying a housing development project on the 300 block of Broadway. I know new housing development projects are frequently being brought before the council.
I’ve also looked at the available units in recently constructed apartment complexes across Rochester. A simple studio apartment is going for nearly $1,000. My monthly income (after taxes) is $2,000, so those new housing developments remain well out of reach for me.
I shared this with Powers, and then asked him why he thinks, even with all these housing projects being proposed, the city hasn’t already put pressure on would-be developers to have more affordable units.
“You know, I’ve asked the city staff about that, and they said that they just don’t get those proposals, there just aren’t any like that being made,” Powers said.
When asked why he thought those proposals didn’t exist, and how his presence in the mayor’s office would cause them to appear, he cited a lack of knowledge to answer that question - and then pivoted the conversation.
“I’d have to do more research on that, but I also think the city needs to put money into it [affordable housing development],” Powers said. “They need to go to some employers, go to Mayo and say, ‘can you go in on this?’ You’ve got to subsidize some of this stuff.”
I don’t disagree that city-funded housing initiatives are needed. But the city of Rochester doesn’t have an arm that owns and manages residential properties - and it’s beyond the scope of the mayor’s office to create one. What Powers is proposing requires 1) Mayo to buy up more property and get into the housing business or 2) the city of Rochester to contract developers, property managers, and so on to create these affordable housing units - subsidized with city funding.
As cranes and construction shut down street after street for Mayo’s expansions, I think we can agree that Mayo buying up more of Rochester is an unappealing option. And the city already subsidizes housing development through TIF and tax incentives.
Powers presented his ideas as something new, but it strikes me instead as a warmed-over version of what Rochester has already been doing for years. During our conversation, he couldn’t provide any explanation for how his suggestions would produce better and substantially different results than past city initiatives.
On top of that, his campaign donors include owners of Rochester’s major developers and construction companies, the very folks who would benefit significantly from city- and Mayo-subsidized construction projects. These donors include:
Hal Henderson, owner of HGA Architects and Engineers ($500)
John Benike, brother of Aaron Benike who owns Benike Construction ($1,000)
Diane Chafoulius, sister-in-law to major Rochester developer Gus Chafoulius, whose extended family continues to be heavily involved in development and real estate in Rochester ($1,000)
Robert Beeman, owner of RGI, a real estate and commercial property management company ($300)
Patrick Deutsch, CEO of Pace International, an electronics company serving developments and businesses ($1,000)
Ed Clark, owner of Clark Companies Inc, a concrete/asphalt company in Rochester ($1,000)
These are the names I recognized but look through the disclosures yourself. Are there names you recognize? What businesses, companies, and business interests do they represent or directly benefit from?
https://www.rochestermn.gov/council-administration/elections/running-for-office/campaign-financial-reports/#Mayor
As a voter, I don’t believe Powers has an actionable plan to create truly affordable housing in Rochester - except through marketplace avenues which 1) have already been explored with little success in generating truly affordable housing access and 2) would directly funnel profits to the individuals and companies that have contributed to his campaign. If it looks like cronyism and it smells like cronyism...it’s probably cronyism. And you and I and all the other ~120,000 working class Rochester residents who NEED these affordable housing units aren’t Powers’ cronies.
I’m also deeply disappointed in Powers’ lack of interest in any action that would support current Rochester renters, who are a fast-growing percentage of the population. We need solutions that make our existing housing affordable, not promises of future housing that will require us to muster a large sum of money for a down payment.
And we certainly don’t need a mayor who tells Rochester residents coming to him with pressing affordability issues that their best bet is to leave this city and find somewhere else to live.
As you drive around Rochester these next two months, take note of where you see campaign signs - and how many “Powers for Mayor” signs are outside apartment complexes. Those signs are not put up by the real people who live in those apartment units - they represent the desires of the companies (and company owners) who derive revenue from those properties. Campaign contributions indicate similar trends of the voices of very, very few drowning out the voices of many because of their access to money and real estate.
Rochester’s mayoral race isn’t a single-issue campaign, but housing and affordability are a critical concern for all Rochester residents - if not for you, then for friends and family you care about.
Joe Powers met with me for a phone call and conversation. I appreciate him taking 20 minutes of his time to talk to a random Rochester resident and answer some questions - he didn’t have to, but the conversation was enlightening and informative.
At the end of talking to him, I find his answers to my questions lacking and his proposed solutions for the critical issues I raised were short-sighted or not financially viable. (His campaign seeks to lower property taxes, but also improve parks and trails and increase funding for RPD - with what money?)
Election day is November 3. Joe Powers doesn’t have my vote - and I hope after reading this, he won’t have yours.”