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Cxnr'rax 15 <br /> C. Industrial revenue bonds <br />i'vlint,. star- § 469.1 s2 to The municipal industrial development laws help cities attract new <br />aci~.16~t commercial and industrial development, and keep existing businesses in the <br /> city. The law authorizes the council to issue revenue bonds, and use the <br /> proceeds to acquire and construct industrial sites and facilities. The city then <br /> leases these facilities to private industry and uses the rental fee proceeds to <br /> retire the bonds. <br /> A city may issue industrial revenue bonds, also known as municipal revenue <br /> bonds, without public referendum. It cannot pledge the full faith and credit <br /> of a community as security for these bonds. Thus, the city may not tax <br /> property owners to pay principal and interest on the bonds. <br />For more information, comaet If a city decides to investigate the use of industrial bond financing, it should <br />l:)F~}17 6sl.zs9.7114, contact the De artment of Employment and Economic Development. The <br />p <br />800.657.3858 or 888.438.5627. <br />Main ofsee: 1st National Bank department provides the city with information, advice, and technical <br />Buiiaing 332 Minnesota street, assistance. This assistance is important, due to the adoption of federal and <br />Suite E200 Saint Paul, MN <br />state laws allocating issuance authority among the states and their political <br />sslol-13s1. subdivisions. The commissioner of Securities must approve the project. <br /> D. Commercial rehabilitation <br />Minn. star. § 469.184. Cities have authority to carry out programs for the rehabilitation of small- <br /> and medium-sized commercial buildings. The city must adopt a program <br /> ordinance that provides for the adoption of program regulations, including a <br /> definition of small- and medium-sized commercial buildings. Loans under <br /> the program may be for amounts up to $200,000. The city may finance the <br /> program through the sale of revenue bonds. <br /> E. Tax increment financing (TIF) <br />-Minn. stet. ti§ 469.174 to Tax increment financing authority is available to most cities. Cities with <br />469'1 %99. housing and redevelopment authorities, economic development authorities, <br /> port authorities, redevelopment agencies, those cities administering <br /> development districts or development projects, or cities exercising port <br /> authority powers under a general or special law may use tax increment <br /> financing. Amendments to the law, however, may make the use of this <br /> development tool more complicated. <br />15:14 <br />LEAGUE OF MINNESOTA CTTIES <br />This chapter last revised 12/2010 <br />