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Finance Tools The investment of public dollars to achieve economic development objectives should be guided by several key principles: • Financial resources are limited. The city has limited funding to apply to economic development initiatives, so the use of resources must be targeted to achieve the greatest effect on the community. • Financial decisions require long-term perspective. The current use of financial resources may reduce monies available in the future. In evaluating short-term opportunities, it is important to question the long-term impact on community development. • Public funds should lead to private investment. While this section focuses on public finance actions, economic development cannot become reality without private investment. The use of public funds should be targeted to actions that encourage private investment in Lino Lakes. Figure 5-8 lists some of the tools that are available to the City of Lino Lakes. Each finance tool has unique requirements which are subject to constant state and federal law changes. Each one creates different obligations on the part of the city. For example, the city takes the lead with tax increment financing, and will have on -going administrative responsibilities. If certain city assistance qualifies as a business subsidy under state law, the city will need to establish, monitor and annually report on achievement of job and wage goals. Using some other tools (such as an industrial revenue bond) may have minimal city reporting on monitoring requirements once they are established, but may be subject to state allocations administered by the state Department of Employment and Economic Development (DEED) when they are issued. Some of the available tools do not provide direct assistance or subsidies to businesses at all, but can still be used to encourage economic development. For example, the city can invest in its utility and roadway systems to make development possible and spur private investments that further the city's goals. Lino Lakes' Charter places some limitations on using special assessments as an economic development tool compared to other communities. The City Charter contains a process to allow property owners to use petitions to protest a special assessment project and prevent it from occurring if there is sufficient opposition. In addition, if the proposed special assessment is for less than 100% of the cost of the improvement, a citywide vote is required. C I T Y O F LNC E5 Figure 5-8. Economic Development Tools • Tax Increment Financing • Property Tax Abatement • Special Assessments • Special Service Districts • Housing Improvement Area • Utility Revenues • DEED Grant and Loan Programs • Street State Aid • Street Reconstruction • Lease Revenue Bonds • Capital Improvement Bonds • EDA/HRA Tax Levies • Industrial Revenue Bonds Economic Development Priorities In 2014 the City evaluated the opportunities for economic growth within Lino Lakes, representing the various types of development currently facing the community: housing, commercial, industrial and redevelopment. The City developed priorities based on a review of each area's positive aspects and potential challenges. Four areas of opportunity were identified. • Development and implementation of a Business Retention and Expansion Program (BRE) • Lino Lakes Town Center, located at Interstate 35 and Lake Drive • Redevelopment of the intersection of Hodgson Road (CSAH 49) & County Road J (Ash Street) • The Commercial and Industrial Corridor along Interstate 35E and County Road 14 Business Retention and Expansion Retention and expansion of key businesses is an important strategy in promoting continued economic growth. It is an avenue by which communities promote reinvestment and facilitate employment growth. By establishing a formal Business Retention and Expansion (BRE) Program, Lino Lakes can enhance its relationship with key existing businesses. The BRE is an avenue to gather information about local business activity, anticipate changes in a company's status, and work to retain the businesses that provide the greatest positive economic impact. DRAFT Jan25-18 Lino Lakes Comprehensive Plan Update for review only Chapter 5: Economic Development 54