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• CH P 17 TER A Minn. Stat. 3 469.177, s~bd. s. The TIF agreement with the developer is a complex document. Assistance from a financial advisor and the city attorney is necessary in order to " anticipate the many potential problems. An agreement can establish a see Protecting City Interests in TIF Agreements" in Minnesota minimum market value for tax increment assessment oses as well as p~ ~ cities, June/ruly, 1998, p. 19. A provide that the developer pay a certain level of taxes regardless of any copy maybe obtained from the classification rate changes or levy decreases The agreement should be Leaguo Research Service by calling (651) 281-1220 or (800) entered into before the assembly and acquisition of the land on which the 925-1122, completed improvements are to be located. Sce also Brookfreid v. Cou>rry of Ramsey 609 N.W.2d 868 (Minn, 1998); Lake Superior Paper lndu3'tires Y. Stat¢ and County Uf Sr. Louis, 624 N. W.2d 254 (Minn.20O1). Sce Minn. Stet. §§ 469. ] 77, The 2001 tax reform legislation, which reduced class rates and provided for subds. 1b, 1 l; 469.1771, subd. 1; 469.1792; 469.1793; 469.1799; the state takeover of the eneral education le resulted in several char es g ~~ g ana a69.1 s 1a. to various statutes to accommodate the changes. The continued viability of TIF in the future has been considerably reduced by these changes. Walker Auto Sales v. City of Cities should use extreme care in establishing a TIF district and should Richfield, 635 N.W.Zd 391 (Minn. App. 2001), follow all rocedural re ments otherwise a court ma find the district p gU1re ~ y was not properly established. • Given the complexity of the laws governing the use of TIF, cities or HRAs should not undertake this method of financing community development projects without the advice of an attorney and professional consultants. F. Property tax abatement Minn. Stat. §§ 469.1812 to A city may grant an abatement of some or all of the taxes or the increase in a69.1s1s. taxes it imposes on a parcel of property if the city expects the benefits of the proposed abatement agreement to at least equal the costs of the proposed agreement. The city must also determine that the agreement is in the public interest because it will increase or preserve tax base, provide employment opportunities, provide or help acquire or construct public facilities, help redevelop or renew blighted areas, or help provide access to services for residents of the city. Property taxes in a TIF district cannot be abated unless the period of the abatement will not occur until after the district is decertified. A resolution must be adopted after notice and public hearing, specifying the terms of the abatement. There are statutory limits on the duration and amount of the abatement. Bonds maybe issued in an amount equal to the sum of the proposed abatements to provide funds for projects. School districts and counties have similar abatement powers. A city, county, and school district can agree to abate their taxes on the same property. • HANDBOOK FOR MINNESOTA CITIES 17-IS ~9