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ONE <br />O E <br />Jleague of minnesota cities <br />DEVELDPNENT STRATEGIES <br />DS-1. Tax Increment Financing (A) <br />Cities have the responsibility for the physical conditions and the <br />development of the state's urbanized land. Tax inurement finance is <br />virtually the only tool available to cities for positive intervention <br />to arrest the spread of blight and slums and encourage sound economic <br />development. Moreover, since cities have the responsibility for <br />preserving and maintaining the state's physical development, cities <br />must have the authority for discharging that responsibility. TIF is <br />indispensable to cities in order to exacute that responsibility. <br />Tax increment finance has permitted cities to plan and carry out <br />housing, and economic development projects on their own initiative. It <br />represents <br />the most feasible and effective legal strategy which is <br />currently available to cities to preserve and in -trove their physical <br />and economic environment. <br />In view of the dramatic reductions in federal assistance for <br />development and housing, tax increment finance remains one of the few <br />options available for cities to p::.aJte growth anI development in their <br />cities. <br />The League opposes volume limits or penalties for municipal use of tax <br />increment finance. Should the legislature decide that particular tax <br />increment finance practices should be modified, those practices should <br />be dialt with through specific proposals rather than the establishment <br />of a volume limitation. The Leagne also opposes the granting of a <br />project veto to other taxing jurisdictions. <br />DS-2. Economic Development Authorities (A) <br />The League believes that it is unfair and unreasonable to grant <br />greater authority and power to some cities in the economic <br />- 3 - <br />1 63 university avenue east, st. Paul, minnesota 55101 (612) 227.5600 <br />