The Minot Area Growth through Investment and Cooperation Fund, or MAGIC Fund, is a growth fund financed through a one percent sales tax in the city of Minot, North Dakota. The fund was approved by voters on May 1, 1990, and the money is used for economic development, capital improvements and property tax relief. As of 2012 the MAGIC Fund has invested over $33 million into 200 projects in 44 communities. Role in Economic Development Forty percent of the one percent tax is earmarked for economic development and is used to help finance relocations, start-ups and expansions in the Minot area. Minot Area Development Corporation, the lead economic development agency for the city of Minot, targets primary sector businesses such as those in value-added agriculture, knowledge-based business and the energy industry. The availability of MAGIC funds makes Minot more appealing to businesses. The MAGIC Fund is very progressive in that it was one of the first growth funds in the state of North Dakota and the first one to be used regionally. Guidelines When the MAGIC Fund was originally established, it was designed to operate with minimal guidelines to allow for the high level of flexibility necessary when assembling financing and incentive packages to benefit potential businesses and the community of Minot. This nonrestrictive nature of the fund has been a source of some criticism though. Local leadership acknowledges that throughout the life of the MAGIC Fund it has been a challenge maintain openness with the public about specific spending while at the same time respecting the confidentiality of business information. Leaders are striving, however, to keep communications clear. In 2005, new MAGIC Fund guidelines were set in place to clearly define “full time” and to require a breakdown—not an average of—salaries of proposed positions. More recently, in October 2008, the guidelines of the MAGIC Fund underwent public review and area residents were encouraged to offer suggestions. Suggestions included making MAGIC Funds available for private sector projects such as housing, recreation and childcare or using the money for infrastructure purposes such as streets and sewer in order to encourage more housing projects. After consideration, the guidelines review committee decided to continue using MAGIC Funding for business-related projects. History The initial creation of the MAGIC Fund in May 1990 established it through 2006 and come June 2004, city voters approved an extension of the 1% city sales tax through the year