The Development Corporation Act of 1979 gives cities the ability to finance new and expanded business enterprises in their local communities through economic development corporations (EDCs).
The MPR EDC is a Type B Economic Development Corporation.
The Type B sales tax may be used for any project eligible under Type A rules and several other project types, including quality of life improvements. Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements for:
professional and amateur sports and athletic facilities, tourism and entertainment facilities, convention facilities and public parks;
related store, restaurant, concession, parking and transportation facilities:
related street, water and sewer facilities; and
To promote and develop new and expanded business enterprises that create or retain primary jobs, a Type B EDC may fund:
public safety facilities;
streets, roads, drainage and related improvements;
demolition of existing structures;
general municipally owned improvements; and
maintenance and operating costs associated with projects.
Type B EDCs also may seek voter approval to spend Type B sales tax funds for a water supply, water conservation program or cleanup of contaminated property.
Exceptions for Small Cities
Type B EDCs created by cities with a population of 20,000 or less and those classified as landlocked communities may use sales tax proceeds to fund projects that promote new or expanded business development that do not create or retain primary jobs.