The following is a guest Cityscape column by University of Minnesota student Kelly Rogers.
Billionaire Kathy Cargill sparked controversy when her company quietly purchased seven homes in Duluth’s Park Point neighborhood. Soon thereafter, the properties were demolished. Residents are left to wonder what this means for the fabric of their community, and more consequentially, their property taxes.
In an interview with the Duluth News Tribune’s Jimmy Lovrein, Cargill called the properties “pieces of crap” she couldn’t imagine living in and threatened legal action against the paper if anything were published about their conversation. She gave no other insights to her intentions behind the buying bonanza besides that they were owned by her personal organization, North Shore LS, LLC, and not the Cargill family at large.
Reactions to her response could range from pearl clutching disgust at her lack of regard for her neighbors to chest-beating defenses for the autonomy of the ultra-rich. Wherever you fall on that spectrum, the episode is a reminder that billionaires don’t care about you — and they’re under no obligation to.
I admit that as a broke college student, I am predisposed to a certain level of compulsive contempt toward those at the top of the economic food chain. That said, I don’t have an ax to grind with any one billionaire specifically. As I looked into the property records on Park Point, several other Limited Liability Companies (LLCs) from across the country showed up as owners of lots along the sandbar.
This trend raises questions about transparency and the impact of distant ownership on local communities. It’s not just about scrutinizing individuals, but understanding the systemic factors that enable these widespread patterns.
We’re living in an age where those with access to unprecedented concentrations of wealth are able to change our realities on a dime, and rampant wealth inequality is only getting worse. The splash by Cargill was merely a drop in a much larger bucket of shadow corporations that touch every part of our lives.
The American housing market has been slowly consumed by wealthy investors of all shapes and sizes since the Great Recession. From LLCs to hedge funds, the rise of the corporate landlord turned basic property ownership into an outright cash cow. These entities — whether they are tied to one person or hundreds — are able to purchase homes well above market value. Once they arrive, it’s nearly impossible for the middle class to stay in the game.
Minnesota has a chance to be at the forefront of finding a solution.
The Legislature is considering House File 685, which calls for the prohibition of corporations turning single-family homes into rental properties. If passed, we would be one of the first states in the nation to take a hardline stance against these practices.
The benefits of this bill are twofold. First, it acknowledges that the material differences between wealthy investors and everyday homeowners are significant enough to treat them differently beyond taxation. It may seem basic, but this alone is how these corporations are able to speed run land-grabs in the first place. Second, it loosens the grip of these investors on the current market, which prevents them from taking advantage of zoning reforms that make it easier for housing to be built.
It’s time for a paradigm shift that goes beyond waiting for heavy hitters to adopt a moral approach to investing. History tells us that they will take advantage of a system that welcomes it for as long as they are allowed. A diverse range of property ownership goes beyond singular instances of economic mobility — it’s the only thing keeping us from slipping into neofeudalism completely.
Our built environment is so much more than a simple pay-to-playground. Reducing them to mere transactions in response to the highest bidder is to undervalue the human significance of these spaces. Our communities deserve environments shaped by a commitment to inclusivity, sustainability, and a shared responsibility for our collective good.
Passion projects of the uber wealthy cannot continue to supersede public interest. The cities we call home must be built collaboratively if they are to exist for us all.
