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CH"TER 16 Currently,private enterprise creates-most new industrial park development by establishing a for-profit community development corporation. A city can cooperate with that corporation through its land-use controls and methods of financing public improvements.Many cities have also established industrial parks complete with streets,water, and sewer, in spite of the possible tax ramifications. The city then sells or leases a portion of the park to a business needing a location for its building. Minn.Stat.§469.185. The law authorizes any city owning lands that are not restricted by the deed Minn.stat.§465.035. to convey the lands for nominal consideration,to encourage and promote industry, and to provide employment for citizens. In finding that a A.G.Op.476-B-2(Mar.2,1961). conveyance of land for an indoor arena was not within the statute,the attorney general concluded the conveyance must encourage and promote industry and provide employment for citizens. A more direct promotion of industry is necessary,beyond the fact that more potential customers might be in town as a result of athletic contests. Because the Legislature may not City of Pipestone v.Madsen,287 constitutionally authorize the expenditure of public funds for private Minn.357,178 N.W.2d 594 purposes,there may be some doubt about the constitutionality of this law. (1970). However,the courts have upheld the municipal industrial development revenue bond law against the same objection. • The laws that authorize the granting of lands presumably override any charter restrictions as to bids or voter approval of the disposition of such lands. However, they have no effect in granting authority to convey land a city holds in trust for a particular purpose. The city's attorney can best advise the city concerning the legality of a purchase of land for resale. Local circumstances are important in determining the legality. C. Industrial revenue bonds Minn Stat.§§469.152 to The municipal industrial development laws help cities attract new 469.1651. commercial and industrial development, and keep existing businesses in the city. The law authorizes the council to issue revenue bonds, and use the proceeds to acquire and construct industrial sites and facilities. The city then leases these facilities to private industry and uses the rental fee proceeds to retire the bonds. A city may issue industrial revenue bonds, also known as municipal revenue bonds,without public referendum. It cannot pledge the full faith and credit of a community as security for these bonds. Thus,the city may not tax property owners to pay principal and interest on the bonds. ' HANDBOOK FOR MINNESOTA CITIES 16-15 This chapter last revised 12/15/2004