06-13-2002 Planning Comm. Agenda

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Subsection 3-12. Fiscal Disparities Election Pursuant to MS, Section 469.177, Subd 3, the EDA or City may elect one of two methods to calculate fiscal disparities. Ifthe calculations pursuant to M.S, Section 469.177, Subd. 3, clazrse a, (outside the District) are followed, the following method of computation shall apply: (1) The original net tax capacity and the current net tax capacity shall be determined before the application of the frscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is egual to w• greater than the current net tax capacity, there is no captm•ed net tax capacity and no tax increment determination. Where the original net tax capacity is less tTzan the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax irzcrenzent financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditorshaZZexcludetheretainedcapturednettaxcapacityoftheauthorityfr•omthe net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to he extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the Ioca1 taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax irzcremerzt of the authority. The EDA or City shat l submit to the County Auditor at the time of the request for certification which method of computation of fiscal disparities the EDA or City elected. The EDA will choose to calculate fiscal disparities by clause a. According to MS, Section 469.177, Subd 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the daeration of the district, except that the governing body may elect to change its election from the rnethod of computation in paragraph (a) to the method in paragraph (b). Subsection 3-13. Business Subsidies Pursuant to MS Sections 1167993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of]essthan $25,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (z}) Kedevelopment property polluted by contaminants as defined in section 1167.552, subdivision 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that Economic llevclopment Amhoiiry of the City of Little Cnnada Tax Lrerement Financing Plnn for'I'ax Lsremem Financing nisoicWo. 3-3 3-G