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BRIGGS avn MORGAN <br /> Catherine Bennett <br /> February 9, 1996 • <br /> Page 2 <br /> sure, however, whether a project such as this, which appears to have a broad base of <br /> community uses and which also involves a re-use and redevelopment of existing facilities <br /> rather than entirely new construction, fits squarely within these concerns. I also do not think <br /> that the express concerns pose a strict impediment under the law as it is presently written. <br /> The one legal caveat comes from Minnesota Statutes, Section 469.176, Subdivision <br /> 4g, a provision of the tax increment law which prohibits the use of tax increments "for the <br /> acquisition, construction, renovation, operation, or maintenance of a building to be used <br /> primarily and regularly for conducting the business of a municipality, county, school district, <br /> or any other local unit of government or the state or federal government." That limitation, <br /> however, goes on to state that it does not prohibit the use of tax increments "for the <br /> construction or renovation of a parking structure, a commons area used as a public park, <br /> or a facility used for social, recreational, or conference purposes and not primarily for <br /> conducting the business of the municipality." <br /> Most people have interpreted the phrase, "the business of a municipality," quite <br /> rightly I think, as being centered around the core activities of the City. For example, it11111 <br /> would not be permissible to use tax increments to finance the construction or renovation of <br /> City Hall. Therefore, to the extent that a portion of the community center would be used <br /> for such core governmental activities, it might be necessary to limit the use of tax increment <br /> financing only to the allocable portion of the overall project which is not so proscribed. <br /> In summary, should the EDA Board deem it an appropriate development activity <br /> within the above mentioned development district and tax increment financing district <br /> structures, I believe that tax increments could legally be used to finance these acquisition and <br /> reconversion efforts, subject to the limit discussed above. <br /> Please let me know if I can be of any further assistance to you, the City, or the EDA <br /> in this regard. <br /> You very truly, <br /> 777, <br /> (--- <br /> /, <br /> 1;4.4.174------ 1 <br /> James P. O'Meara <br /> JO/eh <br /> 0 <br />