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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS Road Costs The county may charge the TIF authority for county road costs, if: • The TIF development will (in the county's judgment) "substantially increase the use of county roads requiring construction" of improvements or other costs and • A formal county plan had not scheduled the improvements for construction within five years. M.S. 469.175, subd, la, After receiving the TIF plan, the county has 45 days to submit the road costs to the development authority. M.S. 469.175, subd. 1(b). The authority is required to add the improvements to the TIF plan. Since the TIF plan can be approved within 30 days and road costs may be submitted after 45 days, this may require a plan amendment. If the costs "break the budget" in the TIF plan, the authority and county are to negotiate an agreement to permit the financing, If they cannot agree, the dispute must be submitted to binding arbitration. M.S. 469.1762, The County's Role in Administering TIF Although counties have a very limited decision making role in TIF, county officials have a substantial role in administering TIF. Specifically, county officials: • Certify and maintain an ongoing record of the original tax capacity of the TIF district, M.S. 469.177, subd. 1 (auditor). • Calculate the captured tax capacity, M.S. 469.177, subd. 2 (auditor). • Certify assessment agreements as reasonable, M.S. 469.177, subd. 8 (assessor). A city assessor performs this function, if a city assessor is responsible for assessing the property. • Determine and collect the increment for the district, M.S. 469.177, subd, 3 (treasurer). • Distribute increment to the development authority, M.S. Ch. 276 (treasurer). • Distribute excess increments and excess taxes to the taxing jurisdictions, M.S. 469.176, subd. 2; 469.177, subd. 9 (treasurer). • Notifying the Department of Education of distributions to school districts of excess increments and taxes, M.S. 469.176, subd. 2; 469.177, subd, 9(a) (auditor). • Enforce the four-year knock -down rule, M.S. 469.176, subd. 6 (auditor). • Decertify districts at the end of their legal duration limits, M.S. 469.177, subd. 12 (auditor). This includes enforcing the three-year activity rule (also called the three-year knock -out rule). M.S. 469.176, subd. la. The county may require the development authority to pay these administrative costs. These costs are not subject to the percentage limitations on administration expenses. Increments from the district are generally used for this purpose. M.S. 469.176, subd. 4h. Three -Year "Knockout" Rule If a TIF district has no qualifying activity within three years after certification of the district, the County Auditor must decertify the district. A qualifying activity can be the sale of certain bonds, the authority's TAX INCREMENT FINANCING 13.01 •22 REVISION DATE: NOVEMBER, 2010