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1111 At the present time a variety of Federal and State programs and <br /> development authority is available for use by cities to encourage <br /> economic development. All of these are currently under threat of <br /> elimination or may be severely restricted by legislation <br /> presently being considered by the United States Congress . <br /> It is difficult to predict what restrictions will ultimately be <br /> imposed , however, it is a certainty that some type of action will <br /> be taken to restrict the ability of local governmental units to <br /> offer incentives for economic development. <br /> At this time all municipal bonding authority has been restricted <br /> by HR3838 which essentially eliminates the tax-exempt status for <br /> all bond issues benefitting one individual or company for more <br /> than 10 percent of the principal . Although taxable bonds may be <br /> issued for those authorized purposes for which tax-exempt may not <br /> be issued , such restrictions have had a significant impact on the <br /> ability of cities to offer economic incentives. The future of <br /> tax-exempt municipal bonds is uncertain at this time and will <br /> remain such until Congress adopts final tax legislation . <br /> The following summaries are a listing of the various <br /> programs/authority currently available to the City of Mounds View <br /> for encouraging economic development . An Economic Development <br /> Plan for the City should not place a great deal of dependence <br /> upon any of these for the success of a program to encourage <br /> • economic development . <br /> • <br /> 4-1 <br />