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23 For a decade or more NMMA has called for the State to develop a statewide economic development and redevelopment policy along with appropriate tools and funding. Few have accepted this challenge to take a leadership role and become proactive in terms of the development of new tools, programs and policies that will place the State of Minnesota in the forefront of competition for economic growth. The newly created TIF Grant Fund administered by the Department of Revenue is set up to address debt service only. Pay-as-you-go notes, interfund loans and others will not be eligible for relief from this fund. There is some ability to pool, but only if all other pre-e)asting obligations are satisfied. To gain access to the fund, several things must occur: • A city must have debt that meets the deadlines set forth in statute; • A city must have pooled all available increment; • A city must let the certified tax rate float and change the fiscal disparities election. Few cities, if any, will access the fund. If this is the case and the money is unspent, there is an opportunity to reposition these resources so that they could be allocated to a statewide development and redevelopment program(s). Objective Create new statewide economic development and redevelopment tools designed to give the State and local communities the necessary tools and funding support to address development and redevelopment opportunities. There is a need to bring together proponents willing to provide the necessary leadership.to advance this proposal. The current system suffers greatly because it seems that key legislators no longer have confidence in it. Even the public at large is showing signs of non-acceptance, (e.g., the negative reaction of groups in the city of Minneapolis regarding the use of TIF for various projects). What role should the State, the region, and the local communities play in this arena? What kinds of programs, policies and support are in fact legitimate to pursue, and what outcomes are desired that can be measured against the investments made? These and other policy driven questions need to be openly discussed, probed and dealt with in unison with other interested organizations and decision-makers. This is an area where NMMA can play a role to bring decision-makers, the community at large, and other interested parties to the table to discuss options and probe alternatives that are working in other parts of the country, and engage public discussion on the subject. Action Steps 1. Clearly identify and articulate the need to create new development and redevelopment tools. Work with key legislators, Commissioner of Trade and Economic Development, Minnesota State Planning, Metropolitan Council and other governmental units, (e.g., counties and school districts and others), other interested groups and organizations -to design a new set of development and redevelopment tools that would be funded at the State level and that could be used by local units of government statewide. Coordinate with key legislative leadership, administrative officials and schedule initial legislative committee hearings. 2. Attempt to create statewide funding mechanism for the current economic development program that will produce a minimum of$100,000,000 annually. The fund would be managed by the Department of Trade and Economic Development, State Planning 4