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CHAPTER 15 III. Other development strategies A. Housing bonds ~~li~,~1. s,~t. ~h. 4t12c~. Cities may use revenue bonds for financing single- and multi-family housing, primarily for the benefit of low- and moderate-income families. The law contains single- and multi-family housing criteria and the specific actions cities must take to comply with the law. Federal law limits the issuance of housing revenue bonds. Bonding authority is allocated by a state formula. B. Industrial parks An industrial park is a tract of land suitable for industrial use because of location, topography, proper zoning, availability to utilities, and accessibility to transportation. A single body has administrative control of the tract. In some cities, an industrial park may be little more than a tract of unimproved land, while in other cities it maybe totally served by city services and have restrictive building requirements. An industrial park's purpose is to attract industrial development. Property a city holds for later sale for economic development purposes remains tax exempt for a period of eight years, or until buildings or other improvements that are constructed after acquisition reach one-half occupancy. Currently, private enterprise creates most new industrial park development by establishing afor-profit community development corporation. A city can cooperate with that corporation through its land-use controls and methods of financing public improvements. Many cities have also established industrial parks complete with streets, water, and sewer, in spite of the possible tax ramifications. The city then sells or leases a portion of the park to a business needing a location for its building. 44inn. star. ~ =1c~~.1 s~. The law authorizes any city owning lands that are not restricted by deed to M,r,l,. star. 1 ~~>.03°. convey the lands for nominal consideration, to encourage and promote ;~,c;. op. a ~,-13-2 (Alar. ~, 1963 }. industry, and to provide employment for citizens. In finding that a ~'zr; ~i'~t~~~~~tr~ I~. h~~~sE~, ~g~ conveyance of land for an indoor arena was not within the statute, the ~zuvz. 3s,, l ; u N.4~'.2d s9a attorney general concluded the conveyance must encourage and promote (1 `~?~)~ industry and provide employment for citizens. A more direct promotion of industry is necessary, beyond the fact that more potential customers might be in town as a result of athletic contests. However, the courts have upheld the municipal industrial development revenue bond law, discussed subsequently, against the same objection. The city's attorney can best advise the city concerning the legality of a purchase of land for resale. HANDBOOK FOR MINNESOTA CITIES 15:13 This chapter last revised 12/2010