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, plus several additional 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
- affordable housing.
To promote and develop new and expanded business enterprises that create or retain primary jobs, a Type B EDC may fund:
- public safety facilities;
- recycling 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 may also 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 even if they do not create or retain primary jobs.