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Councilmember Van Wagner introduced the following resolution and moved for its adoption: <br /> <br />RESOLUTION ~83-203 <br /> <br /> WHEREAS, industrial development bonds have been a very important means <br />for the expansion and development of new commercial business industry in the City <br />of Ramsey and the State of Minnesota; and <br /> <br /> WHEREAS, industrial development bonds do play a major role in the creating <br />of new jobs by creating the financing for new business; and <br /> <br /> WHEREAS, the League of Minnesota Cities "Action Alert" memo dated <br />November Z, 1983 states that on October Z4, 1983, the U. S. House Ways and Means <br />Committee reported out a tax bill, H.R. 4170, which contains a chapter on industrial <br />development bonds (IDB) which contain the following provisions that would be very <br />harmful to economic growth in the City of Ramsey, the State of Minnesota and the <br />Country in these pressing times: <br /> <br /> l) A $150 per capita limit on the amount of IDBs which may be issued <br />annually in each state. The state volume cap would be allocated 50% to the <br />state government and 50% to local governments on the basis of population. <br />The Governor, on an interim basis, and the Legislature would be able to revise <br />the allocation. <br /> <br />Z) New, severe and confusing limits on artitrage. <br /> <br /> 3) Limiting the use of small issue IDBs for a principal user not to exceed <br />more than $40 million of IDB debt outstanding after issuance. <br /> <br /> 4) A prohibition on the use of IDBs for the purchase of land or existing <br />facilities. <br /> <br />5) Denial of tax exemption for bonds issued with federal guarantees. <br /> <br />Other limitations. <br /> <br />NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, CITY OF RAMSEY, <br />ANOKA COUNTY, STATE OF MINNESOTA, as follows: <br /> <br /> 1) It is therefore requested that there be no changes made to the present <br />laws governing the use of industrial development bonds, as industrial development <br />bonds are the only tools that are available for the business community to finance <br />expansion of old industries/new industries. <br /> <br /> Z) It is therefore very critical that before any action is taken on H.R. 4170 <br />(regarding the IDB), a public hearing be conducted on this issue. <br /> <br /> 3) It is therefore requested that we have your support to vote against a change <br />to the present law governing the use of industrial development bonds. It is further <br />requested that you keep the City informed on this major piece of legislation. <br /> <br /> 4) It is directed that a copy of this resolution be sent to the following <br />Congressmen: <br /> <br />Senator Dave Durenberger <br />Senator Rudy Boschwitz <br />Representative Gerry Sikorski <br />Representative Bill Frenzel <br /> <br />Resolution ~83-203 <br />Page 1 of 2 <br /> <br /> <br />