04-21-1997 WS - Laserfiche WebLink

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FROM BRIGGS MORGAN SP (THU)04. 17. '97 12:32 NO. 16 PAGE 3 BRIGGS Axi, MORGAN Because the tax increment law has been amended so many times since it was first • adapted in 1979, there are many different rules and limitations which apply, depending largely on the time in which the tax increment district was created and the type of district. That is primarily why the City's three main tax increment districts,which were created in the 1980's, are at least under current law able to "pool" tax increments for legitimate development and redevelopment purposes elsewhere in the City,even though those activities are occurring outside of the boundaries of the particular tax increment districts where the increment is corning from. This year is another active year at the Legislature for proposals to change the tax increment law. There continues to be a great deal of concern at the Legislature, at least among some of its members, about tax increment "abuses" and "accountability". The Minnesota House seems particularly sensitive to these issues, and we expect its Tax Bill to propose a number of changes to the law, including restrictions on using tax increment for public buildings; the requirement that new tax increment districts in the metro area, other than redevelopment districts, pay fiscal disparities out of the district itself, thereby reducing the amount of available tax increment; and extensive additional processing required for changes to tax increment plans or entering into agreements, including public hearings and detailed findings. It remains to be seen what changes may occur. If you have any questions, please don't hesitate to call me at 223-6420. 110 JO/eh 349683.1