01-14-1985 Council Packet - Laserfiche WebLink

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DS-6. coolvNi'ry DF.VFI.0PMI:NT PRINCIPLES (C) The League supports legislation which continues state assistance to cities for community and economic development. The league encourages the legislature to appropriate funds for direct assistance to business for economic development. As a matter of principle, the state should not encourage the use of such direct assistance for the sole purpose of moving businesses from one Minnesota city to another. Technical assistance should be furnished by the appropriate state agencies to aid cities ir, promoting local development activities. Minnesota cities have traditionally been responsible for their own economic growth. During the 60's and 70's, cities promoted development through the use of industrial revenue bonds, tax increment financing, and housing (or mortgage revenue) bonds. Substantial federal grant programs siipplemented local resources. The economic realities of the 1980's requi-e even greater effort:, by cities in community and economic development. As federal assistance disappears, cities are forced to become more creative in the use and leveraging of available resources. In recent years, the state has assisted cities' development efforts through legislation and agency -administered programs, incluc:ing Minnesota Main Street, Star Cities, Minnesota Housing, Finance Agency loar, programs, and small business rehabilitation loan programs. State legislation must continue to provide maximum flexibility for cities to carry out community development activities. Additionally, the state must actively promote economic development through direct assistance to businesses and more extensive technical assistance to maximize cities' ability to leverage local, state, and federal resources. Any proposed community and economic development legislation should respond to the following concerns: 1) Protection of cities' ability to finance capital improvements. 2) Mapagement of economic growth to maximize cities' existing capital investment. 3) Revitalization of cities reversing, the trend of dispersion of population and economic activity. 4) Recognition and allowance for the great differences between cities regarding their stages of growth and development, demographics, and types of economic activity within and adjacent to their borders. S) The legislature should enable the Small Business Finance Agency to package projects which are approved by local city councils into larger industrial revenue bonds. DS-7. TAX-EXEMPT STATUS OF LAND HELD BY CITIES FOR DEVELOPMENT (C) The League supportg granting unlimited tax-exempt status to property held by cities and their political subdivisions for later resale to promote economic development. Up until recently, almost all property owned by political subdivisions was granted tax-exempt status. In 1979, the legislature changed the law to provide that rop3rt held by a olitical gubbdivisly of the st (e for later Lesale or econofic ev lopment pur,oses would be cons ered a public purpose and therefore 3I-