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CHAPTER 15 <br />B. Industrial parks <br />An industrial park is a tract of land suitable for industrial use because of <br />location, topography, proper zoning, availability to utilities, and accessibility <br />to transportation. A single body has administrative control of the tract. In <br />some cities, an industrial park may be little more than a tract of unimproved <br />land, while in other cities it may be totally served by city services and have <br />restrictive building requirements. An industrial park's purpose is to attract <br />industrial development. <br />Property a city holds for later sale for economic development purposes <br />remains tax exempt for a period of eight years, or until buildings or other <br />improvements that are constructed after acquisition reach one-half <br />occupancy. <br />Currently, private enterprise creates most new industrial park development <br />by establishing afor-profit community development corporation. A city can <br />cooperate with that corporation through its land-use controls and methods of <br />financing public improvements. Many cities have also established industrial <br />parks complete with streets, water, and sewer, in spite of the possible tax <br />ramifications. The city then sells or leases a portion of the park to a business <br />needing a location for its building. <br />Minn. Stat. § 469.185; The law authorizes any city owning lands that are not restricted by deed to <br />Minn. Stat. § 465.035; convey the lands for nominal consideration, to encourage and promote <br />A.G. Op. 476-B-2 (Mar. 2, industry, and to provide employment for citizens. In finding that a <br />1961); cry ofPrpestone v. conveyance of land for an indoor arena was not within the statute, the <br />Madsen, 287 Minn. 357, 178 attorney general concluded the conveyance must encourage and promote <br />N.W.2d 594 (1970). <br />industry and provide employment for citizens. A more direct promotion of <br /> industry is necessary, beyond the fact that more potential customers might <br /> be in town as a result of athletic contests. However, the courts have upheld <br /> the municipal industrial development revenue bond law, discussed <br /> subsequently, against the same objection. The city's attorney can best advise <br /> the city concerning the legality of a purchase of land for resale. <br />C. Industrial revenue bonds <br />Minn. Stat. §§ 469.152 to The municipal industrial development laws help cities attract new <br />a69.lbst. 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 />15:13 <br />HANDBOOK FOR MINNESOTA CTTIES <br />This chapter last revised 12/1/2011 <br />