11-13-2002 Council Agenda - Laserfiche WebLink

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1 Response: To ensure Minnesota is able to continue to effectively compete with other states, the Legislature has a responsibility to partner with cities, state agencies, and other 3 community reinvestment organizations to develop a statewide community reinvestment 4 strategy, and to identify and implement additional tools to fund community reinvestment 5 efforts. The state should partner with cities in community reinvestment activities. State 6 acknowledgment of the need for community reinvestment and economic development is 7 essential to the state's prosperity, and legislation is needed to generate resources sufficient 8 to address these critical needs at the local level. 9 10 LE -15. Tax Increment Financing (TIF) (ABH) 11 12 Issue: Until the state identifies and implements additional development tools, TIF 13 remains the most viable tool available to fund community reinvestment efforts despite the 14 significant impacts of the 2001 property tax reform package. Cities and development authorities 15 will be required to devote considerable efforts in order to understand and address the impacts of 16 the 2001 property tax reform package on existing TIF districts and potential future projects. 17 1.8 Response: So as to not further complicate this process, the Legislature should not 19 enact future TIF law restrictions during the 2003 legislative session. In order to allow TIF 20 to maintain the effectiveness that remains in the wake of the 2001 property tax reform 21 package, the Legislature should consider: 22 Authorizing any tax increment districts approved after April 1, 1990, to pool increments in the same manner as districts certified prior to April 1, 1990, for 25 affordable housing and pollution remediation. 26 ® Expanding the use of TIF to assist in the development of technological infrastructure, 27 transit- oriented development, the restoration of designated historic structures, for non - 28 retail commercial projects, and in non - wetland areas where unstable /non - buildable 29 soils exist. 30 ® Modifying various provisions in order to better facilitate redevelopment activities. 31 ® Authorizing TIF districts to share in the state property tax. 32 ® Modifying the housing district income qualification level requirements to allow the 33 levels to vary according to those specific to individual communities. 34 35 LE -16. Timeframe for TIF District Establishment Legal Challenges (ABH) 36 37 Issue: Recent Minnesota court decisions might expose TIF district establislunent 38 determinations to legal challenges for an unlimited period of time. 39 40 Response: The Legislature should enact a practical timeframe consistent with that 41 provided in the law governing special assessments limiting the period during which such 42 legal challenges may be brought. This timefrarne could include provisions requiring 43 increased public notice and hearings. 15