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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS Port authorities are special purpose governmental entities authorized to exercise a variety of development powers, including TIF powers. M.S.§ 469.048 - 469.089; 469.174, subd. 2. Only a limited number of cities have port authority powers, although EDA powers are similar. Pre -1979 districts are TIF districts for which certification was requested before august 1, 1979. These districts are generally not subject to the act, except the act requires de -certification by august 1, 2009 and prohibits enlargement of the district after august 1, 1984. M.S. 469.179. Pre -1982 districts are TIF districts for which certification was requested before July 1, 1982. These districts do not qualify under the 1982 amendments to the act, including the authority to spend increments on activities outside the district area and to spend more than 5 percent of increments on administrative expenses. M.S. 469.175, subd. 1 and 4; 1982 Minn. Laws 888-92, ch. 523, art. 38 " 3, 5, and 10. Pre -1988 districts are TIF districts for which certification was requested before may 1, 1988. These districts are not subject to most of the restrictions that were enacted by the 1988 legislature. These include the calculation of increment revenues based on the certified original tax capacity rate, the restrictions on soils condition districts, the requirement to pay the county's administrative costs, and a variety of other restrictions. Pre -1990 districts are TIF districts for which certification was requested before may 1, 1990. These districts are not subject to most of the 1990 changes in the TIF law. 1990 Minn. Laws 2603, ch. 604, art. 7, § 31. The 1990 changes included (1) the percentage limitations on pooling and (2) the five-year rule. The enforcement provisions of the 1990 act apply to all TIF districts. To qualify as a pre -1990 district, the development authority had to do one of the following by June 1, 1991: (1) enter into a development agreement for a site in the district, (2) issue bonds, or (3) acquire property in the district. Preexisting district is a TIF district for which the request for certification was made before august 1, 2001. M.S. 469.1792, subd. 2. The law limits use of special deficit reduction provisions to preexisting districts. These deficit reduction provisions are intended to provide development authorities options for increasing increments in response to the effects of the 2001 property tax reform. The 2001 reform significantly reduced increments statewide and making it difficult for some districts to meet their contractual and bond obligations. Preexisting obligations are TIF bonds, contracts, pay-as-you-go contracts, and interfund loans that were approved or issued before august 1, 2001 (or refunded bonds issued before august 1, 2001). Stat. § 469.1792, subd. 2. (contracts to issue bonds must have been approved before July 1, 2001.) The special deficit reduction provisions are generally limited to paying preexisting obligations. Prior planned improvements are improvements for which building permits were issued 18 months before certification of the TIF districts. The property value of these improvements may not be captured-- -i.e., the value is added to the original tax capacity. M.S. 469.177, subd. 4. Project area is the geographic area in which tax increment revenues may be spent. These revenues must be collected from TIF districts located in the project area. Project areas are designated by the development authority under the applicable development law, such as the 1 -IRA, port authority, TAX INCREMENT FINANCING 13.01 - 38 REVISION DATE: NOVEMBER, 2010