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i '1 I I I I I i .I i I I ! Currently Saint Paul receives $2-3 milli°n in i~y-back each year. In a few years Minneapolis will be~in reee/virg over $2 million ar~ually. Where is it being used?~ties must qualify annually as 'distressed cities' before being o0~sidared f~x & U~G. To determine a city's level of physical distress f~D sets minim~n standards that cities must meet. Cities over 50,000 in population must meet ~Lnimm standards in three of the following six areas: 1) per~_ntage of housirg oons~ before 1940; 2) per capita income; 3) percentage of people below poverty; 4) l~ation growth or decline; 5) unemplcyment; 6) decline in jobs. Eligible smaller cities have slightly different criteria. Any city not deemed physically distressed may apply for D/I%G mo~ey by docLm~i~ the existenoe of a 'Pocket of Poverty' within its boundaries. In this metropolitan area the only eligible cities of any size are Minneapolis and Saint F~i. ~ other very __,~_ 11 cities, Mer~ota, (bats, Bandolph, New Germany, Hampton, Bethel and New Trier, are also eligible this year, although n~ of these cities applied for Uf~G mo~ey. F~w much mone~ is invol~.~d?--Between 1977 and 1983 Mirnesota cities received $109,404,723, in ~ grants, of which ~r 88 percent went to Minneapolis ar~ Saint Paul. UfOS grants to Minnesota cities in 1984 included the following: nneapolisGrant ~ 836,807 $3.4 million Saint Paul $ 700, 000 T~o Harbors $1.4 million Virginia $ 386,000 Purpose Assist financing of St. Anthony Main Phase IV develop~ _at oz~=ion loan to renovate Standard Mi 11, Ceresota Mill and Smokehouse building, 'includirg public pla~a and Rehab old Ikx~l~'s store into office facility Assist Louisiana-Pacific Corp. con- struct waferboard siding production f~cility Assist construction of medical office Total $6,785,807 iAl~nst any activity can be funded with UII%G _ _m~e_ y, provided it supports a project that stimulates economic recovery. Sc~ activities are specifically prohibited: a) the cost of plamirg the develop~nt (except in small cities); b) costs of relocatirg o--.-~-rcial or industrial facilities frcm one metrpolitan I area to ar~fcher; ar~ c) costs of public services like day care or social services; d) refur~iir~ debt service; e) use as operatin] capital. 1986 on the basis 'that they do not ~%~ to national investment or job creation. /~-~ordirg to the administratior~ this program, along with other federal ~c devest subsidies, does not ex~ar~ the mtiomal e(xaaomic base. ~he administration believes UII%Gs may provide the funds to support jobs in r~w subsidized ___~e__rcial facilities, but at t~ expense of 'existing jobs in established, unsubsidized ]m~sinesses. The $522 million projected in Beagan'.s kudget for ~ in 1986 reflects the continued sper~cut of ~ for projects appr~ in prior years.