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<br /> LE-9. Economic Recovery Grant Program Funding From <br /> LGA/HACA Penalty . <br /> Problem: The LGA/HACA aid penalty is preventing many valuable development and <br /> redevelopment efforts. <br /> Solution: If the state chooses to continue to impose a penalty for the use of TIF, these <br /> local funds should be contributed to the Economic Recovery Grant Program. These <br /> funds would then be available for cities across the state to retain businesses in the state <br /> and to pursue business looking to relocate from other states. <br /> LE-IO. State Funding for Economic Recovery Grant Program <br /> Problem: The Economic Recovery Grant program is not adequately funded. The state does <br /> not authorize an adequate slate of tools for local governments to assist job creation, <br /> redevelop blight and decay, and provide adequate housing choices. Cities are not well <br /> equipped to compete nationally and internationally for business development. <br /> Solutions: <br /> . Cities should be given authority for property tax abatements as another economic <br /> development tool. The precedent for abatements has already been established by . <br /> the "this old house" program, the contamination tax, and the enterprise zone <br /> program. In addition, Minnesota counties support authorization for an <br /> abatement program, <br /> . Information from the Minnesota Pollution Control Agency (MPCA) should be <br /> used to determine the remediation needs across the state to provide immediate <br /> guidance for the distribution of Contamination Clean-Up Grants. The state <br /> should commit the resources necessary to address the pollution that has been <br /> identified and acknowledge that this program otTers the best opportunity for <br /> clean up of non-Superfund sites, <br /> . The Economic Recovery Grant Program should be given twice its current funding <br /> and establish clear rules to govern its use. The state and federal funds that fund <br /> this program should also be spread over the year to help ensure that projects <br /> across the state have access to the grants. <br /> . The federal government should triple the current appropriation for the <br /> Community Development Block Grant Program, and should simplify the . <br /> application process and reduce the paperwork burdens. <br /> . Congress should remove the caps that have been placed on Industrial <br /> Development Bonds and acknowledge that the extensive eligibility requirements . <br /> now adequately limit their use. <br /> 10 League of Minnesota Cities <br />