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CHAPTER 13 - ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS economic development authority, or municipal development act. Qualified disaster area is an area that was subject to disaster or emergency (declared by the federal, state, or local government in the last 18 months), which caused substantial damage to at least one-half of the buildings in the area. M.S. 469.174, subd. 10b. These areas can be designated a redevelopment district with an original tax capacity equal to the value of the land. M.S. 469.177, subd. 1(g). Retained captured value is the captured value less any portion of the captured value which is shared with the taxing districts and less any captured value contributions to the fiscal disparity pool. The retained captured value is the value which determines the increment district's tax increment. It is also the value that is excluded from a taxing district's net tax capacity in determining its taxable net tax capacity. The retained captured value is determined for an increment district in total, not on a parcel by parcel basis. This is especially true where buildings may be torn down and replaced. After the buildings are torn down, but before the new ones are built, there can be a period of time where the current value of the property is less than the original. These value decreases should reduce the captured value of the entire increment district. A redevelopment TIF district is a type of TIF district used to finance the redevelopment of areas occupied by substandard buildings and other structures or railroad properties. To qualify as a redevelopment district, 70 percent of the district's area must be occupied by buildings and structures and 50 percent of these must be structurally substandard. Alternatively, the area may also qualify as vacant or underused railroad property, tank facilities, or as a qualified disaster area. M.S. 469.174, subd. 10. The duration of a redevelopment district is limited to 25 year from the receipt of the first increment. M.S. 469.176, subd. 1(e). Shared captured value - tax increment districts have the option to include in their tax increment plans a provision providing for the sharing of captured value with the local taxing districts. An increment district that does not need the entire captured value to fund its activities may elect to share a portion of its captured value with the taxing districts. This is done by having an amount less than the captured value used as the tax increment value deduction in determining the taxable value of the taxing districts in which the increment district is located. It can be expressed as either a percentage or a dollar amount. This amount may vary from year to year. A small city under the TIF law may use economic development districts for small commercial developments, such as retail and office space. (other cities may only use economic development districts for a more limited set of uses, such as manufacturing, warehousing, and research and development. To be a small city, the city's population must be 5,000 or less, it may not be located within ten miles of a city with a population of 10,000 or more. M.S. 469.174, subd. 27. This is intended to disqualify suburbs of larger cities. Qualification is determined based on the year of the certification of the T1F district. M.S. 469.176, subd. 4c(e). In 2002, about 500 cities qualified as small cities. A soils condition TIF district is a type of TIF district that is used to finance correction of hazardous waste or pollution clean-up. M.S. 469.174, subd. 19. Clean-up costs Hurst exceed $2 per square foot or the market value of the property. Increments from soils condition districts may only be expended to acquire property, clean up contamination, and pay for administrative expenses. M.S. 469.176, subd. 4b.. TAX INCREMENT FINANCING 13.01 - 39 REVISION DATE: NOVEMBER, 2010