10-03-2022 Council Work Session Packet

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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP Definition of Economic Development District MN Statutes 469.174, Subd. 12. Economic development district means a type of tax increment financing district which consists of any project, or portions of a project, which the authority finds to be in the public interest because: 1. it will discourage commerce, industry, or manufacturing from moving their operations to another state or municipality; 2. it will result in increased employment in the state; 3. it will result in preservation and enhancement of the tax base of the state; or 4. it satisfies the requirements of a workforce housing project under section 469.176, subdivision 4c, paragraph (d). MN Statutes 469.176, Subd. 4c. 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: 1. the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property; 2. warehousing, storage, and distribution of tangible personal property, excluding retail sales; 3. research and development related to the activities listed in clause (1) or (2); 4. telemarketing if that activity is the exclusive use of the property; 5. tourism facilities; 6. space necessary for and related to the activities listed in clauses (1) to (5); or 7. a workforce housing project that satisfies the requirements listed below. A project qualifies as a workforce housing project under this subdivision if: (1) increments from the district are used exclusively to assist in the acquisition of property; construction of improvements; and provision of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing costs for rental housing developments in the municipality; (2) the governing body of the municipality made the findings for the project required by section 469.175, subdivision 3, paragraph (f); and (3) the governing bodies of the county and the school district, following receipt, review, and discussion of the materials required by section 469.175, subdivision 2, for the tax increment financing district, have each approved the tax increment financing plan, by resolution. The maximum term of an economic development district is eight years after receipt of first increment for a total collection term of 9 years.