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MEMO TO: Mayor & Council <br />FROM: Finance Director -Treasurer <br />DATE: May 17, 1984 <br />RE: PROPOSED RESOLUTION OPPOSING INDUSTRIAL DEVELOPMENT REVENUE <br />BOND PER CAPITA LIMITATIONS <br />The Clerk -Administrator has conveyed your request for information on <br />Industrial Revenue Bond (IRB) financing; specifically answers to the <br />following questions: <br />1) What types of facilities can IRB's finance? <br />2) As a result of this City's use of IRB financing, have <br />any new jobs been created? <br />In Minnesota IRB financing is governed by Minnesota Laws Chapter 474, <br />The Minnesota Industrial Development Act. After approved by the Com- <br />missioner of Securities, Minnesota Department of Commerce proceeds of <br />IRB's may be used for costs of land, buildings, equipment, interest <br />during construction, and fees of architects, engineers, attorneys and <br />fiscal agents for permitted projects. Facilities permitted are: <br />Industrial & Manufacturing <br />Pollution Control <br />Commercial <br />Warehouse & Distributing <br />Wholesale & Retail <br />Housing <br />Business Research & Development <br />Disposal of Solid Waste <br />Advancement of Tourism <br />Improvement in Ports <br />Electric Power Generation & Distribution <br />Telephone Service <br />Health Care Facilities <br />Rehabilitation of Historic Buildings <br />The maximum term of financing is 30 years. An exception in the seven <br />county metro area is that IRB's may not be used for hotels and motels. <br />The City has issued four IRB's since 1972. They are: <br />Century -Mercury Motor Freight - $1,500,000 <br />Industrial Development Revenue Bonds 11-7-72, trucking storage <br />and freight terminal <br />Midway Industrial Supply - $300,000 <br />Industrial Development Revenue Note 10-12-78, office and warehouse <br />