Agenda Packets - 1983/10/24 - Laserfiche WebLink

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POLICIES FOR COORDINATING ECONOMIC DEVELOPMENT What is currently being done to coordinate the Region's economic development and enhance its entrepreneurial climate? Government has always played some role in economic development --primarily by providing the public infrastructure (roads and sewers, for example) and services. Land use regulations have also been a tool. Federal economic development programs have been organized under the Economic Development Administration (EDA), the Department of Housing and Urban Development (HUD), the Small Business Administration (SBA), and the Comprehensive Employment and Training Act (CETA). The current administration is in the process of effective- ly eliminating the EDA, reducing the funding for SBA and HUD, and replacing CETA with a job -training partnership program. With its remaining programs, the federal government is concentrating its economic development activity in the areas of public land acquisition and improvement, and business financing. In the past, state programs have not done much to assist local government and businesses with economic development. The state has preferred to let local government do most of the work. This may change with some recently passed leg- islation. In 1983, the Minnesota Legislature reorganized the Minnesota Small Business Finance Agency into a business enterprise fund with expanded authority and increased funding. In addition, two pieces of state legislation --tax increment financing and industrial revenue bonds --have been helpful to local governments in promoting economic development. Economic development programs are generally implemented through local govern- ment regardless of whether the funds are provided by federal, state or local governments. The most significant factor in economic development, however, is the shift away from federal and state involvement and toward local involvement solely. With this shift comes a certain narrowing of the focus --local govern- ment will be primarily concerned with development in its community. The role of regional agencies in economic development is relatively new and not well defined. In 1978, the EDA instituted a program to demonstrate the role for regional planning agencies in metropolitan economic development planning. Results of the program identified a number of roles for regional agencies. They included providing information, forums for decision -making and technical assistance. The Council performs some of these functions currently, but the efforts are not always focused on economic development. In addition to governmental efforts directed specifically at economic develop- ment, a large number of groups --from universities to public/private think tanks- -are looking into the business climate issue. Two organizations, the Minnesota Business Partnership and Minnesota Wellspring, have undertaken major long-range studies of the state"s economy. Although these groups will continue to examine issues affecting the economic health of the state, their research does not concentrate on a regional perspective. The narrowness of the local government focus, in addition to the emphasis on the state economy by other groups, creates some gaps that can be filled by a regional agency. The Council can provide a unique economic development perspective because the urban economy functions on a regional basis rather than along city and county boundaries. G. THE METROPOLITAN COUNCIL WILL ENCOURAGE THE COORDINATION OF ECONOMIC DEVELOPMENT IN THE REGION.