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�� <br />DS-3. Development Financing (A) <br />The League supports the continued use of industrial development bonds and <br />other tax-exempt instruments as development tools. <br />The following principles should apply to the allocation of tax-exempt <br />development authority: <br />1. A maximum of Minnesota tax-exempt development allocation authority being <br />retained by municipalities. <br />2. The maintenance of local discretion and flexibility in development <br />decisions. ; <br />3. The minimization of state control of local development decisions. <br />Tax-exempt financing allows cities to undertake a diverse range of <br />activities to prevent economic deterioration, to attract new businesses and <br />jobs, to retain existing businesses and jobs, and to maintain and strengthen the fl <br />local tax bane. <br />Pending federal tax legislation would substantially change the <br />applicability of tax-exempt development financing. Should the state become <br />involved in designing a new system appropriating tax-exempt bond authority to <br />cities, the League recommends that the above three principles apply, in general, <br />and that the League be centrally involved with the governor and the Legislature <br />in fasMoning an equitable system. <br />-5- <br />