Agenda Packets - 1997/04/28 - Laserfiche WebLink

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HF Omnibus Tax Bill l NFORMATL1 !atcsign • 0 ILT Effective date: TIF'districts decertified after June 1, 1997 ° 11 Economic development districts. Allows use of increments from economic eomtc development districts for two types of retail projects. Present law restricts the use odevelopment districts to(1),manufacturing, (2) warehousing,(3) research and development. (4)telemarketing.(5) limited tourism facilities, and(6)correcting special bedrock soils conditions. Thus, retail or other commercial facilities,except those that part of a qualifying tourism facility,would not be eligible. The bill permits two types of retail or commercial facilities: Qualified border retail facilities that meet the following requirements: • is located in a small city within one mile of the state border • is outside the seven county Twin Cities metropolitan area • contains at least 25.000 square feet of retail space will otherwise locate in another state or country. Small cities commercial facilities permits assistance to a commercial facility of up to 15,000 square feet. These facilities must be"separately owned-" The definition of small • cities applies based on the criteria in the year the request for certification is made. Effective date: TIF districts decertified after June 1, 1997 12 Use for general government. Clarifies the meaning of"conducting the general business of the unit of government." Under present law,increments may not be used to construct a building used primarily and regularly for conducting the business of a unit of government. The bill clarifies that this includes any service or goods the governmental unit usually provides. Thus, it would include a public library, fire or police station.prison,school building.and so forth,even though those buildings do riot house administrative functions or are not places where the governmental unit holds business meetings. • Present law permits increments to be used for municipal parking ramps.parks,and social and recreational facilities as an exception to the prohibition on use for general government facilities. This authority has allowed cities to use TIF to build, for example,hockey rinks, community centers,and parks. The bill restricts this authority to instances where the improvements are part of a private development or redevelopment. To qualify,substantial taxable,private improvements must result from building the publiclyowned facility. The bill also adds wastewater treatment and water utility facilities to the types of public improvements that can qualify, if they are necessary to a substantial private development. Effective date: Spending of tax increments authorized or approved after June 1, 1997 in all districts,including pre-1979 districts S Research Department Minnesota House of Representatives 600 State Office Su S'd S3IIIJ NW JO 319d31 WdT2:20 L6, TZ Lldd