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Minge bill puts subsidy debate on national ag... Page 6 of 6 <br /> However, Mel Burstein, general counsel at the Minneapolis Fed, said <br /> urban areas have advantages such as well-established road, sewer and <br /> • utility systems that rural and suburban rivals must spend millions to <br /> duplicate in order to build a factory, warehouse or office building. <br /> Without targeted subsidies, companies could find development more <br /> expensive outside than inside city limits, he said. <br /> "The irony is, any city like Minneapolis should applaud this deal," <br /> Burstein said. "The fact is,they're the winners now and it would be <br /> very hard to make them a loser." <br /> Inspiration for Minge's effort to end the bidding war between states <br /> and localities came, in part, from an analysis of the phenomenon by <br /> Rolnick and Burstein. <br /> They argued in a paper published two years ago that taxpayer money <br /> is being squandered in trying to influence site location decisions that <br /> should be made on the basis of economic return. <br /> List <br /> ©Copyright 1997 Star Tribune.All rights reserved. <br /> • <br /> http://webserv1.startribune.com/cgi-bin/stOnLine/article?stories=10&pgraphs=l&orderBy=PUB 12/3/97-&next <br />