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Federal urban renewal pro, rams for slum clearance helped inaugurate a new role .for city..~overr~_nts in real estate development.--~he first major use of public dollars for private real estate development occurred in the national program to get rid of dilapidated buildings in the years followirg World %~%r II. Saint Paul and Minneapolis were amorg the main beneficiaries of this program in Minnesota; many square blocks of residential and business property were cleared, ~rtic~aTly in ar~ near the downtowns. Federal aid paid two-thirds, local dollars the bal-nce. Then the land ~s sold on th~ private market for redevelopment. Urban renewal helped oharge city governments: awareness of their ~x)tential role in real estate.--Before urban renewal, city governments had recognized that they played a significant role in regulation of real estate, through co~pr~i%~ plannirg, zonirg ordinarmes, buildirg codes, buildirg permits, and the like. City governments also played an informal role in pro~otin~ real estate sites, but they largely left initiati~ on location, type, design, finar~ ar~ timin9 of devel~ to the private sector. With urban rer~wal a new public policy %~s bc~n: City goverr~ents could assemble lar~, tear dc~n the old buildir~s, ard resell the property to private developers for less than the oost of acquisition, cor~istent with a previously-auopted plan. In doing this city governments bec~_-~_ financial oontributc~s to development of new structures in previously blighted areas. Federal urban renewal furuls were not available everywhere; they could c~ly be spent in blighted areas. But the preo~dent had been established. Even those city governments technically ir~ligible to p~rticipate were being prepared psyct~logically fc~ a new role in real estate. City ccur~ils were transforming themselves from passive regulators of real estate to active banker/developers. iMost city 9ov~r~nts, not just those strugglin~ with blight, have bee~e partici~ts in real estate assistar~e pro, rams which ha~ followed urban r~l.--The federal govern~nt dropped its original urban renewal progr~,~ in the late 1960s, bringing to an end th~ era of large, direct grants of federal I aid. A ~c~lalex system of ir~irect federal ar~ state assistance plus a few limited programs of direct aid have been employed sim~e then. ~he total public dollar in~stment through tl~ new programs vastly exceeds that of urban Irenewal. Eligibility has been broadened, toD. In the TWin Cities metropolitan area today, city governments in all growth stages and inocme levels actively provide assistance for private real estate development. An i impcxtant dimension of their participation is that they are designing unique agreements u~e-on-one with de~elopers of specific l~rcels. I I I i~ial~ are _en__t~siasti£ about thei_r '_~n%ol~ent.--City officials who participate ~ proud of their inclement ar~ are oonvinced that the overall quality of real estate develc~ is enhanced co~mi_aerably. ~ey usually state that without their help tl~ same p1Djects would not have heen ur~ertaken. They welcome the chance to help new development, even though their initial motivation may ha~ been to remo~ blight or to keep new or exparz~ing businesses from locatir~ elsewhere. They a~e extremely protective of the tools that federal ar~ state gove~-~ments haw gi~_n them. Bowever, a few city governments say they use the tools just because they are a~ilable, irrespective of wheth~ ne~d can be demonstrated.