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City of Little Canada, MN Management Review & Analysis – Tax Increment Financing Districts 13 Summary of Four-Year “Knock-Down” Rule TIF District Four Year Rule Deadline Parcels “Knocked Down” Parcels Reinstated TIF District 3-3 January 2010 None N/A TIF District 5-1 February 2016 None N/A TIF District 6-1 May 2015 None N/A TIF District 7-1 January 2024 N/A N/A TIF District 7-2 January 2024 N/A N/A TIF District 7-3 TBD N/A N/A Five-Year Rule MN Statute 469.1763 subd. 3 states that for Post-1990 districts, tax increment is only considered to be expended on an in-district activity if certain activities occur within five years of the certification. Qualifying activities include paying revenues to a third party, issuing bonds, entering into binding contracts, or reimbursing a third party for payment of costs. Summary of Five-Year Rule Activities TIF District Five Year Rule Deadline Revenues Paid to Third Party Bonds Issued Contracts Entered Reimburse Party Housing Purposes TIF District 3-3 January 2011 Nov. 2002 TIF District 5-1 February 2017 June 2008 TIF District 6-1 May 2019 Dec. 2008 TIF District 7-1 January 2025 TIF District 7-2 January 2025 Jan. 2019 TIF District 7-3 TBD The Five-Year Rule was statutorily extended to eight years for TIF District 6-1. Each district except Districts 7-1 and 7-3 have incurred a qualifying activity before its respective deadline. For District 7-1, the agreement for 93 West entered into in July 2018 is not TIF-eligible. The City has until January, 2025 to incur a qualifying activity such as land acquisition in District 7-1. The date for District 7-3 is yet to be determined.