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City of Lino Lakes, Minnesota Summary of TIF District No. 1-12 July 1, 2016 Page 4 • It will result in preservation and enhancement of the tax base Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than: • the manufacturing or production of tangible personal property, including processing resulting in the • change in condition of the property; • warehousing, storage, and distribution of tangible personal property, excluding retail sales; • research and development related to the activities listed in clause (1) or (2); • telemarketing if that activity is the exclusive use of the property; • tourism facilities; • qualified border retail facilities; or • space necessary for and related to the activities listed in clauses (1) to (6). In addition, if any of the property is currently within the property tax classification of `green acres' pursuant to MN Statutes, Section 273.111, 273.112, 273.114, or chapter 473H, the following provisions apply: • The authority may include in a tax increment financing district for taxes payable in any of the five calendar years before the filing of the request for certification only for: • a district in which 85 percent or more of the planned buildings and facilities (determined on the basis of square footage) are a qualified manufacturing facility or a qualified distribution facility or a combination of both; or • a housing district. • A distribution facility means buildings and other improvements to real property that are used to conduct activities in at least each of the following categories: o to store or warehouse tangible personal property; o to take orders for shipment, mailing, or delivery; o to prepare personal property for shipment, mailing, or delivery; and o to ship, mail, or deliver property. • A manufacturing facility includes space used for manufacturing or producing tangible personal property, including processing resulting in the change in condition of the property, and space necessary for and related to the manufacturing activities. • To be a qualified facility, the owner or operator of a manufacturing or distribution facility must agree to pay and pay 90 percent or more of the employees of the facility at a rate equal to or greater than 160 percent of the federal minimum wage for individuals over the age of 20. Thank you for the opportunity to be of assistance to the City of Lino Lakes. Please contact me at 651-223-3036 or mhuot cDspringsted.com with any questions or to discuss.