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Figure 3.1: Bonding experience – a concert at the State Theatre in Minneapolis (renovated through a city bond)<br />
In Minneapolis, the city government bought four major downtown theaters that were either closed or moribund, and pulled them back into the public<br />
sector fold with a view to improving them. To pay for the investment, the city issued revenue bonds on the theaters. It has since fulfilled its intention of<br />
putting the theaters in the hands of a non-profit, the Hennepin Theatre Trust. The Trust is continuing to operate and program the theaters and repay city<br />
investment, whereupon it will then own them outright. In order to make the payments, the trust imposes a surcharge on each ticket sold.<br />
(source: McNally Smith/Flickr)<br />
This section has helped you to ….<br />
• Understand the menu of tax-related policy tools that are potentially available to local electorates and<br />
politicians that want to raise funds for assets. This policy choice reduces the risk of any one tool not<br />
delivering.<br />
• Become aware of the key questions that would need to be asked when contemplating the introduction of tax<br />
mechanisms.<br />
• Recognize that such issues require voter approval and so enhance the involvement of the public (which<br />
includes many existing and prospective asset-users) in making decisions about assets.<br />
71 | The New Barn-Raising