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Tax Increment Financing in Minnesota <br /> E. Economic Development District <br /> • Does not meet the criteria far any of the other types of <br /> TIF districts. <br /> • May be used only for manufacturing, production, <br /> processing, warehousing, storage, distribution <br /> (excluding retail sales), research and development, <br /> telemarketing and tourism (outside the metropolitan <br /> area). <br /> • Prohibits establishment if more than 15% of the square <br /> footage of such facilities are used for other purposes. <br /> The allowable percentage of nonqualifying square <br /> footage can be increased when such uses are directly <br /> related to or in support of the qualifying activity. <br /> • Must demonstrate retention of local business, increased <br /> employment and enhancement of the state tax base, <br /> etc. <br /> • Maximum duration of TiF district is 11 years from the <br /> date of City approval of the TIF plan or 9 years from <br /> receipt of the first tax increment, whichever is less. <br /> • The 1991 Legislature added a new type of district for <br /> purposes of adjusting the LGA/HACA impact in certain <br /> economic development districts. A "qualifying <br /> manufacturing district' is an economic development TIF <br /> district which is certified after June 30, 1991, contains <br /> certain qualifying activities and is located in a city with a <br /> population under 10,000. <br /> Examples of Eligible Project Expenditures <br /> • Land acquisition <br /> • Soil corrections <br /> • Site preparation <br /> . • Relocation/demolition <br /> • Public improvements for street, sewer, water and parking <br /> • Planning & engineering studies in support of eligible activities <br /> SPRINGSTED „ ,. <br />