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CRAFTER 17 The city's attorney can best advise the city concerning the legality of a purchase of land for resale. Local circumstances are important in determining the legality. C.Industrial revenue bonds Minn. Stet. 3~ 469.152 to The municipal industrial development laws help cities attract new a69.16s. commercial and industrial development, and keep existing businesses in the city. The law authorizes the council to issue revenue bonds, and use the proceeds to acquire and construct industrial sites and facilities. The city then leases these facilities to private industry and uses the rental fee proceeds to retire the bonds. For more information contact MDTED at 500 Metro Square Building, 121 East Seventh Place, St. Paul, MN 55101-2146 (651) 297-1291 or (800) 657- • 3858, or visit their web site at http Jhvww.dted.state.mn.us/0l x0 Ofasp A city may issue industrial revenue bonds, also known as municipal revenue bonds, without public referendum. It cannot pledge the full faith and credit of a community as security for these bonds. Thus, the city may not tax property owners to pay principal and interest on the bonds. If a city decides to investigate the use of industrial bond financing, it should contact the Dept. of Trade and Economic Development. The department provides the city with information, advice, and technical assistance. This assistance is important, due to the adoption of federal and state laws allocating issuance authority among the states and their political subdivisions. The commissioner of Securities must approve the project. D. Commercial rehabilitation Minn. srat. s a69.1s4. Cities have authority to carry out programs for the rehabilitation of small- and medium-sized commercial buildings. The city must adopt a program ordinance that provides for the adoption of program regulations, including a definition of small- and medium-sized commercial buildings. Loans under the program maybe for amounts up to $200,000. The city may finance the program through the sale of revenue bonds. E. Tax increment financing (TIF) Minn. Stat. $§ 469.174 to Tax increment financing authority is available to most cities. Cities with 469'1799' housing and redevelopment authorities, economic development authorities, port authorities, redevelopment agencies, those cities administering development districts or development projects, or cities exercising port authority powers under a general or special law may use tax increment financing. Certain recent amendments, however, may make the use of this development tool impractical. • HANDBOOK FOR MINNESOTA CITIES 17-13 a~