06-08-2022 Council Packet - Laserfiche WebLink

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City of Little Canada, Minnesota Baker Tilly Municipal Advisors, LLC Page 1 Draft Spending Plan for Tax Increment Financing (Redevelopment) District No. 3-2, Tax Increment Financing (Housing) District No. 3-3, and Tax Increment Financing (Renewal & Renovation) District No. 5-1 Introduction The State Legislature amended the TIF law (the “Law”) in 2021 to provide flexibility to cities to utilize unobligated tax increment revenues in their districts to promote construction and job creation in their communities. Increments expended under the Law do not count against the pooling limitations of the districts, which for two of the City’s identified districts, is 25% of the TIF collected over the life of the districts. The law allows authorities (Cities, HRAs, EDAs) to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities if it will create or retain jobs in this state, including construction jobs. In addition, they can make an equity or similar investment in a corporation, partnership, or limited liability company that they determine it is necessary to make construction of private development happen. The City has until December 31, 2022 to transfer the funds to another designated City fund, and the dollars must be expended by December 31, 2025. Any unused TIF dollars must be returned to the applicable TIF district after this date. The City of Little Canada established Tax Increment Financing (Redevelopment) District No. 3- 2, Tax Increment Financing (Housing) District No. 3-3, and Tax Increment Financing (Renewal & Renovation) District No. 5-1 to achieve certain redevelopment and development (including construction of housing) objectives of the City (the “TIF Districts”). The TIF Districts are administered by the City of Little Canada and have been identified as TIF Districts that contains unobligated tax increment revenues. The following text represents the Spending Plan for the Districts. Section A Purpose The Districts are administered by the City of Little Canada, Minnesota (the “City”). The City proposes to adopt a Spending Plan for the TIF Districts in accordance with Minnesota Statutes, Section 469.176 Subd. 4n. The purpose of the Spending Plan is to assist in the private development or redevelopment of sites or lands or areas within the City in conformity with the City’s Comprehensive Plan or other City plans or objectives using unobligated tax increment revenues from the TIF Districts. The unobligated tax increments are to be utilized for one of the following purposes: 1) to provide improvements, loans, interest rate subsidies, or assistance in any form to the private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities if the following conditions exist: a. it will create or retain jobs in the state, including construction jobs; b. construction commences before December 31, 2025 and c. the construction would not have commenced before that date without the assistance.