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December 12, 1988 Minnesota Real Estate Journal Page 17 he said. "This is a critical issue for reform in Hauer said. "No one has defined the point Philip Hope said TIF has many merits in claimed that the city got around the law. 1989" beyond which TIF is no longer beneficial. Minnesota, but "it has been abused many "There was a relatively small project that in- Tile blight test for redevelopment districts The suite Legislature is the logical body to times and certainly in my own city of volvcd tcaring down ail unused motor freight is too subjective and broad and should be define that point. Roseville" building and preparing the soil for new con- rewritten to tighten the qualification criteria, "However,if it(TIF)becomes so common For example, Hope said that the Rosevil Ic struction that would be two miles 1'ront the Spartz continued. that it's seers as a given, it loses those City Council established a tax increment proposed high-density housing project. "We believe that state law permits extreme- characteristics that have made it a useful district to help a Canadian-based investor "This does qualify under TIF provisrons;'he ly flexible city interpretations;' Spartz said. economic development tool;' she said. "In develop a$14 million high rental, high den- said,but the"high density apartment project "Currently,redevelopment districts are con- other words, the problem arises when TIF sity apartment project. was included in the TIF district. Our group sidered blighted if as few as 35 percent of the becomes the expected practice rather than the A wealthy local property owner reaped of Roseville homeowners does not feel that it parcels within the district have severely exception. . " tremendous profit from the land because of was the intent of the Legislature to permit this blighted structures. . "The blight test doesn't The Citizens League applauds the 1988 TIF;'Hope claims. "This controversial and abuse when the enabling law was enacted" always accurately and reasonably reflect the Legislature for the changes in TIF law,Hauer unnecessary project is being constructed on Hope added that there should be stronger cost to cure the blight in the district,he said. said, "but there's still a concern that TIF an open space tract of land that holds stron" monitoring,and more control of'TIF districts. For example, the Metropolitan Stadium should only be used for projects with a real environmental significance. For over 40 "We, as taxpayers, are powerless to do site in Bloomington qualified as a blight need in an area with real blight. years,the land adjoining the proposed apart- anything about our city council's actions in because of the obsolete stadium even though "The Citizens League is not opposed to ment project has been a neighborhood of abusing this law. Voting them out of office salvage receipts were almost equal to the cost public assistance,' Hauer told the senate tax single-tamily,owner-occupied homes. Thi,, may be delayed up to three years.This is cer- of demolition,Spartz said.Similarly,the ad- subcommittee, "but it is opposed to the cur- project definitely does not qualify tier tax in- tainly no help to us after the damage has been jacent 33-acre Kelley farm qualified for rent off=budget assisarnce that needs to be crement financing. . .it's not a blighted area done to our community and our environ- redevelopment because it was the site of a more direct. It's difficult tojustify the use of by any means" rnerit; dilapidated house and farm building. The TIF the way it's currently being used" Hope went on to say that TIF was intend- The tax subcommittee's second hearing. farm was purchased by Bloomington for$10.5 In addition to the groups that testified at the ed to help econon;ically distressed areas. It focusing on those in favor of tax increment million shortly after the TIF district was hearing, several individual citizens of was not intended for assistance in such a high financing in its present form, is set for Dec. created. Roseville also testified. Roseville resident rental apartment project, he said. But Hope 14. The blight test should be defined in terms of a minimum percentage of blighted area and the cost toCUre the blight,Spartz said,and it Should limit the amount of increment to the amount needed to cure the blight, and all parcels should be contiguous. • New economic development districts 11c] should be permitted only in areas of severe economic distress and limited to job-creating industrial facilities. The duration of"redevelopment districts, pre-1979 as well as post-1979,should be reduc- ed, and the window of opportunity to issue bonds on pre-1979 districts should be closed. ® "The 1988 language allows an excessive duration for redevelopment districts. Most is pleased to announce states do not allow a term to exceed 20 years, but pre-1979 districts are allowed as long as 29 the following years. . .Some of us will be buried before some of these districts expire;' Spartz said. peal estate • The 1989 Legislature should address the issue of excess increment being generated in }, some districts. "Several cities in Hennepin transactions County have districts which are or will soon produce increment in excess of their debt ser- vice requirement "Spartz said. • Adequate'I'l n can't be achieved un- tie the of fected co ,„y and the school district