Agenda - Council - 05/27/1980 - Laserfiche WebLink

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Each year the legislature passes laws that have substantial impact on the development and rede- velopment of cities. Many of these laws work at cross purposes because the state has not articulated a community development policy to serve as a framework for evaluating both the direct and the spin-off effects of legislative, administrative, and judicial decisions affecting community develop- ment. Although elements of policy currently exist, these elements need to be put together into a co- herent policy. By so doing, laws working at cross purposes can be eliminated and areas where new legislation is needed can be identified. This action must occur within a solid partner- ship of cities, the state and the federal govern- ment, working together with business, labor and neighborhoods. By being included within the process, the private sector will learn that it can profit by investing within a locally planned and implemented framework, and that the cost of public services within a reinvestment structure will be less expensive to their businesses than will unstructured growth. Community development To meet the objective of community develop- ment we recognize that economic growth is essen- tial. The League recommends that such a com- munity development policy be articulated and that it include the following elements: To target and manage economic growth, insofar as possible, toward meeting the objective of community development. For the state to encourage the preserva- tion of agricultural lands, wetlands, sce- nic and recreational land, and to promote conservation activities. 3. ' To direct policy towards the revitalization of existing cities and community centers in order to reverse the trend of dispersion of population and economic activity. For the state to provide positive and nega- tive incentives to encourage community focus for development. o For the state to coordinate state invest- ment programs in such a manner so as to facilitate and encourage community devel- opment efforts of cities. o For the state to work in close cooperation with local governments and the private sector to facilitiate local objectives, where- ver possible. -6- For the state to enable cities, to the extent possible, to solve their own problems. Statewide reinvestment fund Cities must identify additional sources of cap- ital to assist in the financing of commercial and industrial redevelopment that must occur. Due to the growing need of older developed areas to provide monetary incentives to stimulate private investment and due to the lack of sufficient local government resources for this cause, the League urges the legislature to establish an eco- nomic reinvestment fund that would provide redevelopment monies to be quickly targeted to a single business or small groups of businesses within a community for projects that would revi- talize and help replenish a lagging tax base. Tax increment financing Tax increment financing has permitted many cities in various parts of the state to define and carry out rehabilitation, redevelopment, housing, and economic development projects on their own initiative. It represents the most feasible and effective legal strategy which is currently available to cities in preserving and improving the physical and economic environment in their communities. The Leagu.e commends the 1979 Legislature for passing one of the most flexible and compre- hensive tax increment laws in the nation. The legislation incorporates substantially the League's position. The League believes that presently no substantive changes are necessary and recommends that no substantive changes be made by the legis- lature until there has been sufficient experience to determine if changes are needed. Housing The League continues to encourage the use of tax-exempt financing for housing and supports the Minnesota Municipal Housing Revenue Bond Act, passed by the 1979 Legislature. After a year of experience with the legislation, however, cities and the League believe there are certain types of housing assistance which are not adequately ad- dressed. These involve blight, deterioration, re- development and revitalization efforts, with res- pect to both mortgage and rehabilitation loans. The League recommends that cities have the power to carry out a single family and multi- family'rehabilitation program, including the re- financing of existing mortgages or the financing of an acquisition if either or both are incidental to rehabilitation work. The League further re-