Agenda Packets - 1997/04/28 - Laserfiche WebLink

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bus Tax BillPage 55 INIEnps • { L 1.3 Spending restrictions for redevelopment districts. Clarifies the provision governing • spending of increments from redevelopment and renewal and renovation districts. The law requires increments from these districts to be spent for the purposes which allowed the district to be create. The language lists a number of specific qualifying costs. One view is that this list of qualifying costs is an exclusive list. Another view is that it is simply supplements the general standard. The bill clarifies that the list is exclusive and adds a number of qualifying costs to the list. These include: ► acquisition of railroad properties repair and rehabilitation of substandard buildings to eliminate unsafe or unhealthy conditions or prevent the spread of blight removal and remediation of hazardous substances. All costs must relate to redevelopment or development of the sites that contain substandard structures,hazardous waste cleanup, or development of railroad properties. Effective date: Post-October 4, 1989 districts and confirms the original intent of the law 14 Four year knock-down rule. Changes the four year knock-down rule to a three year rule. The knock down rule provides that if development or redevelopment of a parcel in a district does not occur within four years(three years under the en t)later occurs, the p �parcel il is recertified i�ape from the district. If development or redevelopment in (I original tax capacity in at its current value. The required activity can be satisfied by private development,by public acquisition,by installation of some types of public improvements on or for the parcel. The bill clarifies that these improvements must be specified in the TIF plan before they are undertaken or one-fifth of the cost must be paid with increment from the district. Effective date: Requests for certification after June 1, 1997 15 Indexing of original tax capacity. Modifies the computation of the indexing of original tax capacity for economic development districts. Under present law, original tax capacity is indexed based on the average annual increase in market value over the five years before certification. Each year original tax capacity is increased by this percentage increases. The bill provides that new construction,installation of utilities(sewer,water, and so forth), and platting during the five year period are to be subtracted in computing the average increase in market value. Effective date: Requests for certification after June 1, 1997 • —+� Minnesota House of Representatives 600 State Office Building Research Department 9'd S3I LID NW 30 3f19ti31 Wd22:z0 Z6 T2 add