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I11. .Ne~tiate fc.~. recover~ of cit~ assistance~e reo~ that city officials reoogn~ze that negotiati°ns ~rlth developers are t~o-~ay streets and that they as well as developers s~culd place negotiable items o~ the table. Specifically, city offici~l~ should take the initiati~ in su~gestin~ ways that the city could recover i0ert c~ all of its financial assistance, even that provided in lo~ns. ;~org the i~ossibilities~ l~eeeivir~ m share of ar~ capital 9ain that the develoi~.r might realize when the property is sold to a new owner. (Developers might insist, in return, that the city share in any loss, too. ) Betainir~ ultimate o~ership c~ interest in ~ land. To guard against a city 9overnment'.s providirg assistance with the hope that a project will return great profits to th~ city, a city should not seek to recover m~re than its ~riginal in~stment. This recommendation of llm~_taticn arises out of our dual ooncern about, (a) pressures on city officials to approve proposals f~r publicly assisted real estate development, ar~ (b) difficulty of ]x)ldir&3 today'.s political leaders accountable for the profit of t__~or__row. %~e believe that the expectation of future profit to the city from real estate development oould soften a city'.s bargaining resolve, thereby making it easier fo~ city officials to grant m~re public assistance than can be justified. 12. ..Use c~l~ ne~o. tiat(xs experienced in real estate deveSt--We recc~ar~ that city governme_._nts exercise great care in assigning individuals to nec3otiate fina~ci~ assistance packages with de~l~pers. It is doubtful that ~ without direct 1oersc~al experience in development will be skillful enough to understand the approach of tl~ dev~l~ across the table. Therefore, the most desirable negotiatc~ for a city could well be scmeca~e who has been (m the other side of the table in the l~st c~ someone who is a de%~_loper c~ represents developers in other p~rts of the nation. 13. Phase out ir~ustrial re~nue bo~ls~ support th~ pl~se-out schedule for irn'ustrial rev~ue bonds now in federal law. The bo~ds for o...,ercial- industrial purposes, other than m~,~cturing, are set to be disccrfcinued at the end of 1986, and for m~nufacturirg, at the end of 1988.