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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS acquisition of property within the district, or the construction of public improvements within the district. Activity that takes place before a TIF district is certified is not a qualifying activity for purposes of the three-year rule, and the rule applies to the entire district and not individual parcels. Four.Year "Knockdown" Rule If, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to section 469,177, no demolition, rehabilitation, or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district, If the authority or the owner of the parcel subsequently commences demolition, rehabilitation, or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the County Auditor that the activity has commenced, and the County Auditor shall certify the net tax capacity that which is the most recently value certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The County Auditor must enforce the provisions of this subdivision. The authority must submit to the County Auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. Minn, Stat, § 469.176, subd. 6. For purposes of this subdivision, qualified improvements of a street are limited to: 1) construction or opening of a new street, 2) relocation of a street, and 3) substantial reconstruction or rebuilding of an existing street. This provision applies to each parcel individually rather than the TIF district as a whole. Demolition, rehabilitation, renovation, or other site preparation, including qualifying street improvements, must be made on each parcel in accordance with the TIF plan within four years after certification of the TIF district, The TIF authority must submit evidence of each parcel's qualifying activity to the County Auditor, Because the qualifying activity must be authorized by the TIF plan, the county auditor should review the TIF plan and the qualifying activity documentation to see if the two are consistent and should require information from the authority that is sufficient to make this evaluation. If no demolition, rehabilitation, renovation or other site preparation has taken place on a parcel, or if the activity that did occur was not authorized by the TIF plan, the original net tax capacity of the parcel must be excluded from the TIF district. If subsequent qualifying activity takes place, the most recent net tax capacity of the parcel is added back to the original net tax capacity of the TIF district, TAX INCREMENT FINANCING 13.01 -23 REVISION DATE: NOVEMBER, 2010