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09/11/85
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09/11/85
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Meetings
Meeting Document Type
Agenda
Document Title
Economic Development Commission
Document Date
09/11/1985
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only those geographic areas which haw bsen classified as n0nagri~ultural land <br />for tax purposes for st least 15 years. <br /> <br />A renewal plan should be sufficiently detailed so that prospective developers <br />understand what is expected of them and could sutm~it proposals. Expenditures <br />wc~ld be permitted only if oonsistent with the plan. <br /> <br />6. Bequire regional guidelines--~he Metropolitan (k~ncil, other regional <br />development agencies in ~ state amd the State Plar~irg Agency (far parts of <br />the state without regional pla~ir~ bodies) should be required to help city <br />governments develop renewal plans that a~)id wasting money t~h unnecessary <br />inter-municipal bidding but recognize that some c~npetition amorg cities is <br />healthy. City governments today are forced to decide c~ assistance with <br />virtually no input c~ whether their actions are consistent--or in <br />oonflict--with are~;ide land use plans. The Metropolitan (k)uncil ar~ other <br />agencies should not be given power to decide whether assistanoe should be <br />granted. That power should oontinu~ to reside at the level of city <br />goverr~ent. Instead regiorknl and state agencies oould develop suggested <br />guidelines for cities to follow. <br /> <br />7. Make total assistar~e explicit for each project--At the time a city <br />government makes its initial oc~mi~ent of public assistance, whether through <br />the assis~ fund or tax-increment, e~.n though th~ total amount of <br />co,~tments are mot yet known, the city should be required to make public <br />estimates of the total value, in current dollars, of ail assistance, direct and <br />indirect, from federal, state ar~ local sources oombined, including the value <br />of tax deductions and credits for each publicly-assisted develol~nent. Such <br />estimates can be prepared f~r different scenarios of what the total package <br />might look like. <br /> <br />8. Separate '~overhead',' expenses--Scme of the expenses would be servioes <br />provided lmy city government staff ar~ c(x~ultants. City officials should be <br />required to _make separate allocations for such ':overhead, ': so that a~nunts for <br />that purpose always are cl~rly kn(~rn. O~=.rhead expenses wculd be chargeable <br />to the redevelopment fur~ or to tax-increment accounts along with other <br />expenses of a renewal project, such as infrastructure oonstruction or financial <br />assis~ to a developer. }bwever, as noted earlier, city governments should <br />not be allowed to charge salaries of city employees to tax-increment acoounts. <br /> <br />9. Require ~eriodic audits ar~ periodic review--The Legislature should require <br />periodic rar~cm audits of city real estate assistance funds and of <br />tax-incre_me__-nt districts, Goverirg a detailed analysis of receipts arz] <br />exper~itures. The Legislature al~.o should require periodic review of real <br />estate assistance projects to oc~pare results to date ar~ the outlook for the <br />future, measured against projects', original objectives. Part of periodic <br />review should be re__no~,~-r~lations to the Legislature on the r~--~ for state <br />dollars in rede%~lcpment funds in oomir~3 years. Regional ager~ies such as the <br />Metropolitan Council oould be instructed to make such reco~z~_ r~tations. <br /> <br />10. Allow use of oonde~natic~ even if financial assistance is not <br /> <br />provided--State law should clarify the right of any city to use its l~wer of <br />condition in carr~i~ out a previously-adopted renewal plan, but without an <br />acoc~t~mying requirement that a city al~o provide financial h~lp. Oa~emnation <br />authority should be used sparingly, because it represents the public'.s taking <br />of private property when the pri~ate o~a~er does not want to sell. It should be <br />used primarily to help the private developer acquire hold-out paroels. <br /> <br /> <br />
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