Minneapolis Slashes Funds For Economic Development Group

MINNEAPOLIS (AP) - Minneapolis has pulled most of its 2017 funding for the regional economic development group Greater MSP.

City Council members question the benefits the city gets from the organization and are concerned it pits local governments against one another other in the race to offer incentives to companies.

Minneapolis has given $800,000 to Greater MSP since 2011. The mayor's proposed 2017 budget included only $125,000 for the group, and the City Council reduced that to $10,000.

Greater MSP Chief Executive Michael Langley says the group is disappointed and will work to make Minneapolis a full active member again.

Greater MSP was launched in 2011 to promote job growth and business investment. The St. Paul-based organization employs 21 people, and is funded mostly by private companies.