10-28-2015 Council Packet - Laserfiche WebLink

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Project Area PROJECTS AND DISTRICTS Projects Tax increment financing is used in conjunction with underlying development and redevelopment powers. Tax increments must be spent within particular geographic areas created under the development statutes. The basic planning area is often referred to as a "Project Area," "Development District" or "Redevelopment Project" which also has other names according to the authorizing statute of the authority under which it was created. Typically, the following types of authorities can administer tax increment districts: City Council: City or County HIAA: EDA: Port Authorities or County EDA: Development District Act HRA Act EDA Act Special Legislation All Projects require a general development or redevelopment plan, approved after a public hearing held by the City Council. The boundaries tend to be large areas within which the authority intends to promote development or redevelopment. TIF Districts TIF Districts are the specific parcels within a Project area from which tax increment will be captured. Following is a description of the general types of TIF districts: Redevelopment Districts Qualifications: "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions ofa project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: 1. Parcels consisting of 70 percent ofthe area ofthe district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; 2. The property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad rights-of-way; 3. Tank facilities, or property whose immediately previous use was for tank facilities, as defined in M.S. Section 115c.02, subdivision 15, if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used; or 4. A qualified disaster area, as defined in M.S. Section 469.174, subdivision 10b. Ehlers & Associates, Inc. - TIF Basins 2