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• -11- <br /> The Councilmember said he thought everybody agreed with the initial <br /> purpose of the Fiscal Disparities Law that all communities should share <br /> the wealth when commercial industrial growth takes place in the <br /> metropolitan area. The phenomena the bill' s writers had not expected <br /> had been that most of the commercial/industrial growth would only take <br /> place in 17 communities, leaving the other 111 communities in the metro <br /> area to become the basic benefactors. It was the Bloomington official's <br /> contention that the growth experienced by those 17 communities had been <br /> derived principally from the fact that they were located where they were <br /> and everything those growth communities realized from commercial/indust- <br /> rial growth had gone into fiscal disparities to be paid to other <br /> communities. <br /> Councilmember Peterson indicated this had caused Minneapolis to switch <br /> from a receiver to a payer which had changed the whole picture and <br /> caused the AMM Board to determine there was going to be a Fiscal <br /> Disparities bill before the legislature this year. The Board had also <br /> perceived it was better for the AMM to participate in the inevitable <br /> legislation and at least provide an arena for everybody to participate <br /> in the discussion rather than to have Minneapolis do whatever they <br /> wanted to do, he said. <br /> • Under the new formula, the contribution rate would be reduced by 2% per <br /> year for five years and any pre-1971 commercial/industrial base would <br /> start paying. <br /> The Bloomington Councilmember said his city would be a large benefactor <br /> of the bill and would be paying more in fiscal disparities than <br /> Minneapolis in four or five years. He couldn' t provide a defense for <br /> the 111 communities not sharing in the benefit except to say there would <br /> be more industrial growth and the 17 larger beneficiaries would be <br /> continuing to contribute to the program. <br /> Minneapolis would be lobbying extra hard for the new formula, but St. <br /> Paul was providing the main opposition, according to Councilmember <br /> Peterson. He said he agreed with both cities that many of the low <br /> income housing and welfare problems were being exported to both of their <br /> cities and that they need the industrial base to pay for them. He also <br /> said he agreed the outer circle suburbs need the inner cities if they <br /> are to grow stronger, which gives some credence to Minneapolis' <br /> arguments. The Bloomington Councilmember said he didn't know how the <br /> detrimental effect of the new formula could be alleviated for St. Paul. <br /> Mr. Childs said the difference in the potential effect for Hennepin and <br /> Ramsey County sides of St. Anthony is accounted by the larger commercial <br /> areas, principally Apache Plaza in the latter, which vastly overshadows <br /> the little commercial area on the other end. <br /> • <br />