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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS governments to borrow in anticipation of receipt of tax increments. The practice in Minnesota now often does not use bonds, but instead expects developers to pay the costs and to be reimbursed as increments become available. This approach (called "pay -as -you go" financing) shifts the "capitalized interest" costs to the developers. In some cases, the city or development authority absorbs the cost by advancing its money (e.g., from another city or authority fiend) until it can be reimbursed with the increments. If the city accepts lower or no interest on these advances, it is using these funds to assist or subsidize the development. Local Governments' Roles in TIF Four types of governmental units have some role under the TIF law: 1, Development authorities. These entities (e.g., a housing and redevelopment authority or HRA) make nearly all the important decisions, such as deciding whether to use TIF, determining how it will be used, adopting TIF plans, and so forth. They also implement TIF decisions — enter development agreements, contract for TIF work, and so forth, 2. Municipalities. The municipality, usually a city, must approve some of the TIF decisions made initially by the development authority. In a few instances, the municipality is charged with making direct TIF endings or decisions. In many cases, the municipality controls the development authority or, in fact, is the development authority. 3. Counties. The county is responsible for administering much of the TIF law that relates to the collection and distribution of increments. Otherwise the county's role is limited to making advisory comments on major TIF decisions of the development authority. 4. School districts. Schools' role in TIF is largely limited to making advisory comments on major TIF decisions of the development authority. The Role of the County in TIF Decisions Counties have fairly limited roles in making TIF decisions, although county officials are responsible for administering the collection and distribution of increments for TIF districts. The counties' powers and responsibilities consist of three components: 1, Making comments on proposed TIF plans and major amendments 2. Charging for county road costs that are stimulated by the TIF development 3. Administering the collection and distribution of TIF revenues for the authority. Before approving a TIF district, the development authority must notify the county and provide a copy of the proposed TIF plan and an estimate of the impact on the county. M,S. 469.175, subd. 2, This must be done at least 30 days before the public hearing is scheduled. For housing or redevelopment districts, separate notices must also be given to individual county commissioners who represent the area of the district. M.S. 469.175, subd, 2a. If the county disagrees with the TIF proposal, its only power is to persuade the authority to abandon or modify its plans. It cannot veto or delay adoption of the plan. TAX INCREMENT FINANCING 13.01 - 21 REVISION DATE; NOVEMBER, 2010