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I I ! I i I i I I I I I I I I I I I -5- Tr~ me tro~li tan area'.s technolc~y-inter~ive irtlustry ~s a ~orerunner of t~e e~er~ir~ information-based eooncmy. Y~ch Of this industry is Its anteoedents are the area'.s entrepreneurs of expansionary vision who prospered from the fortunate, if not f(xtuitcus, juxtaposition of high finance, high eduGation and high perfonnar~e of wc~k f~rce--a].l sharpenirg the cuttir~ edge of private and public ent~prise. It is this past that now can help shape this area~s future in a yet emerging information society. It is not yet clear h~w the lmblic sector should direct its resources. For example, what is the relative importar~e of providir~ dollars for education, fc~ street maintenar~e, or for real estate develoi~ent? Fax-sighted ar~ prudent deployment of always scarce public resources is an over-ridirg concern in estahlishirg the role of cities as active participsnts in buildin9 the urban-industrial environment. City 9overnments are significant agents for maintainir~ th~ strer~th of the nation'.s urban areas. But how they carry out this task is in~ensely controversial today, particularly as city governments in the last 10 years have begun to play more aggressive roles than ever before in becc~irg finar~ially in~lv~d with real estate develc~ment within their i~rders. The national and state gove~,~nts are the centers of the debate, because they have been the main sources of financing available to cities. In Mir~esota, the Legislature has begun to ask fundamental questions as the dollar investment has risen rapidly: (a) ~at is the purpose of this assistar~e? (b) Hsw much is beirg provided? (c) l~w prudently are the dollars beir~3 spent? (d) Are the results worth the effort? (e) ~hat negative results, if any, are evident? (f) Il) cities need moz~ ___mc~e_ y? (9) Who is accx)un~able for the way the money is beirg spent? (h) ~hat is the '.'opportunity oost': of real estate assistance? ~hat is, what public or private service investment is not l~rovided or sit, ported becsnse of the real estate expenditure? (i) If cities were not to spend t]~ mo~ey, h~w wculd it be sisent in the private sector? (j) What is ~ social oost to taxpayers in sustaining the existing role of cities in real estate develcpment? ~hat is the social cost to taxl~yers in abar~ng that role? ~]%is report is intended to help public officials think through tl~se questions.