Agenda Packets - 1985/01/02 - Laserfiche WebLink

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DS-6. COMMUNITY DEVELOPMENT PRINCIPLES (C) The League supports legislation which continues state assistance to cities ok for community and economic development. The League encourages the legislature to appropriate funds for direct assistance to business for economic development. Ae a matter of principle, the state should not encourage the use of such direct assistance for the sole purpose of moving businesses from one Minnesota city to another. Technical assistance should be furnished by the appropriate state agencies to aid cities in promoting local development activities. Minnesota cities have traditionally been responsible for their own economic growth. During the 60's and 70's, cities promoted development through the use of industrial revenue bonds, tax increment financing, and housing (or mortgage revenue) bonds. Substantial federal grant programs supplemented local resources. The economic realities of the 1980's require even greeter efforts by cities in community and economic development. As federal assistance disappears, cities are forced to become more creative in the use and leveraging of available resources. In recent years, the state has assisted cities' development efforts through legislation and agency -administered programs, including Minnesota Main Street, Star Citles, Minnesota !lousing Finance Agency loan programs, and small business rehabilitation loan programs. State legislation must continue to provide maximum flexibility for cities to carry out community development activities. Additionally, the state must actively promote economic development through direct assistance to businesses and more extensive technical assistance to maximize cities' ability to leverage local, state, and federal resources. Any proposed community and economic development legislation should respond to the following concerns: 1) Protection of cities' ability to finance capital improvements. 2) Management of economic growth to maximize cities' existing capital. investment. 3) Revitalization of cities reversing the trend of dispersion of population and economic activity. 4) Recognition and allowance for the great differences between cities ri.garding their atages of growth and development, demographics, and types of economic activity within and adjacent to their borders. 5) The legislature should enable the Small Business Finance Agency to package projects which are approved by local city councils into larger industrial revenue bonds. DS-7. TAX-EXEMPT STATUS OF LAND HELD BY CITIES FOR DEVELOPMENT (C) Up until recently, almost all property owned by political subdivisions was granted tax-exempt statue. In 1979, the legislature changed the law to provide that op rt held by a olitical uhdivisi�� of the efle for later Sesgle for econollc sev9lopment put oses woul� be cone eyed ore -37-