How do city/county bonds work?

[mandyky]

I am trying to come up with a plan that allows a municipal govt to actually own and manage a business.

For instance, if a community wants to keep Walmart out butwants to provide a similar shopping center for residents, how would the city or county go about forming and funding this type of business, and then paying "dividends" to bond holders.

If a city or county owns a business, they could make sure it is "up to code" environmentally as well as related to labor practices.

[TreasonousBastard]

1. Very tricky business. and...

you're going to need some expert advice and political clout.

Some places might prohibit such ownership by a town, others might require an independant authority/corporation be set up (which would probably be a good idaea anyway).

The town also runs the same risks any private entrepreneur has, and should be very careful it doesn't bankrupt itself and put all the town's taxpayers at risk if there's a failure.

Perhaps the town sponsoring something more like a buyer's co-op would be a bit easier.

[haele]

2. You might want to look at some successful city/"authority" associations -

If the community wants to set up a civic "shopping area", it is a form of city development, just as much as a new library or police station is. Creating a development "authority" gives the city a chance to direct and control the atmosphere in which a development like that would go. You (as a town) will also have to realize that this would end up being a long term investment and come up with an extended plan to cover contingencies and changes for several decades out.
We have two rather successful local instances;
While the City of San Diego is currently having serious money issues, the Unified Port District of San Diego - which includes both the Port and Airport Authority, runs the airport, the waterfront shipping intrests, maintains port contracts and a few critical city "businesses" ("tourist" facilities such as hotels, the Convention Center and it's concourse, city "rent-a-cop" event and facility security, some public parking areas around critical city buildings) - generally runs a nice little profit between user fees on services under their control. Part of the control they have over tourist services is the investments they control that allow businesses to take risks in building and expanding facilities. Businesses working with the Port District tend to pay more in the way of fees than does the average consumer.
http://www.portofsandiego.org/
The other instance is the Santee Community Development Commission - which has developed a lot to be the community center and park area, public transit hub and a business development area (i.e. shopping malls in easy access) - and it's still in transition. After 25 or so years, they still haven't built the library, town hall and other facilities they had promised. Funding issues as usual - much of the community development funding in California comes from county, state and federal Community development block grants that are specifically identified as funds for transit and facilities improvement; while it's easier to get businesses like Costco, Barnes and Noble, Target, Lowes, et all to pony up some development funds to be "hub" businesses in your development, it can be a bit more difficult to get the grants and if the economy takes a downturn and your population and homeowner base - the people who would regularly use the community facilities - decreases, supplimenting those grants with community bond issues to match the business investment can be a lot harder.

http://www.ci.santee.ca.us/dhr/cdc.htm
As for part of your question, the part community development bonds play in both these development groups is that the community is investing in the projects and the fees generated within these projects create the operating budget and the community profit. Say, a business that operates within the authority of the development organization pays 1% of profit as a fee as well as the designated rent. Those moneys go back to the community development organization which gives a percentage of some of the monies gathered back to the city to be earmarked for, say, infrastucture maintenance. Another percentage, a designated amount over a designated time, gets set aside to pay off the bond and stakeholders. Much like the way any other municipal bonds work. The success of the development will directly impact the community.
As you can see in the instances above, any development group - be they city based or community business based has to be careful that there can and probably will be an increase in political corruption and possible investment from "organized" criminal groups, but if the city or town sets up a good regulatory practice, damage from that sector can be at a minimum over the long term.
And it's imperative to be clear and concise about any community development plan - if you don't want a WalMart or many of the "big box" stores in, you might want to be able to go to the your county and state for community renovation block grants by linking the city redevelopment more towards improving public transit and maintaining some sort of historical renovation plan. And in the charter of the development plan, insure you put in some sort of legal approval procedure that will require any big business to meet before developing in the local area. There are small towns all over the area that focus on tourism; they've got requirements that businesses must not deviate from the local "feel" to build - size, signage, architecture and parking restrictions...
A Walmart or any other Big Box can't build a standard store in a place like, say, Julian. Perhaps a small, discrete hub store, but not their standard warehouse - because of Julian's Community Development Board.
Good luck, I hope you and your community can succeed.

Haele