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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS M.S. 469.176, subd. 6. The parcel will be re -instated if development activity occurs, but at its current value (not the value at the time of certification of the district). The knock -down rules can be satisfied by demolition, rehabilitation, or renovation (public or privately financed) of improvements on the parcel or by improvement of a public street adjacent to the parcel. Installing utilities (e.g., sewer and water service) does not qualify. Fiscal disparity captured value contribution - a municipality in the seven county metropolitan area or seven -county iron range area may elect to have a tax increment district contribute a portion of its captured value to the fiscal disparity pool. This election is part of the increment district plan. There is no election for economic districts with a certification request date after June 30, 1997. They must contribute. [1997 laws, chapter 231, art. 10, sect. 11] M.S. 469.177, subd. 3(a)] The contribution is equal to the current year fiscal disparity contribution ratio of the municipality in which the increment district is located multiplied by the culTent year commercial and industrial value increase over the original commercial and industrial value in the increment district. If a municipality does not elect to have a tax increment district contribute captured value to the fiscal disparity pool, the fiscal disparity contribution comes from the taxable value of the taxing districts. The fiscal disparity pool receives a contribution based on the commercial -industrial growth in the increment district. The municipality's election only affects whether the contribution decreases the increment district's captured value or decreases the taxing districts' taxable value. There is a one time option for the municipality to change from not contributing (clause a) to contributing (clause b). There is no option to change from contributing to not contributing. M.S. 473f.08, subd. 8a The growth period for determining the fiscal disparity contribution is always the tax increment districts original year to the current year even if the contribution election is made years later. The election change year is not the base year. revenues derived from a TIF district after the fifthyear to be spent to decertify the district. After J the five-year rule requires 80 percent (75 percent for redevelopment districts)of tax increment fifth year, money may only be spent to (1) pay bonds or contracts that financed improvements, if bonds were issued before the end of the five-year period or (2) reimburse the developer for costs it paid to make improvements in the district during the first five years. M.S. 499.1763, subd. 3. When sufficient money has been set aside, the district is decertified. General obligation tax increment bonds are TIF bonds to which the municipality (usually a city) pledges its general obligation. M.S. 469.178, subd. 2. If the tax increment or other pledged revenues are insufficient to meet the debt service obligations, the city must levy a property tax to make up the difference. Although these bonds are general obligation city bonds, they are not subject to the election or referendum requirements, if more than 20 percent of the cost will be paid with tax increments. M.S.§ 469.178, subd. 2; 475.58, subd. 1(3). General obligation authority bonds are TIF bonds that are backed by the full faith and credit of the development authority (e.g., the HRA or EDA), but not the city. M.S. 469.178, subd. 3. If the increment or other revenues prove insufficient, the HRA must use any available authority revenues. However, TAX INCREMENT FINANCING REVISION DATE: NOVEMBER, 2010 13.01 - 35