07-21-1994 - Laserfiche WebLink

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• Term, Restrictions: May collect increment for 25 years after the date of receipt of the first increment, subject to the same exception as for redevelopment districts. To maintain qualification as a housing district, residents' income must be limited: for owner-occupied housing, 95% of the units must be initially purchased by persons with income that is less than or equal to the income requirements for qualified mortgage revenue bonds under federal law; for rental projects, must satisfy the income requirements for qualified residential rental projects under Section 142(d) of the Internal Revenue Code, or 50% of the units must be occupied by individuals with income 80% or less of the area median income. The rental requirements apply for the life of the district. If the income requirements are violated, the district duration is reduced to that of an economic development district. Note: additional restrictions apply for a "qualified housing district" that is exempt from state aid penalties. See Section IV. 5. Economic Development District, Section 469.174, subd. 12 Qualifications: The district does not meet the qualifications for any other type of district, and the municipality must find that the district will (1) discourage business from moving to another state or municipality; (2) increase employment in the state; or (3) preserve and enhance the tax base of the state. Term, Restrictions: May collect increment for nine years after the date of receipt of the first increment, or eleven years after the date of plan approval, whichever date is first. 1993 Change: for districts filed for certification before June 1, 1993, these periods were eight years and ten years, respectively. • Increment may not be used to assist developments if more than 15% of the buildings and facilities (on a square footage basis) are used for a purpose other than: (1) manufacturing; (2) warehousing, storage and distribution of tangible personal property (excluding retail sales); (3) research and development related to the aforementioned activities; (4) telemarketing if that activity is the exclusive use of the property; or (5) "tourism facilities;" or space necessary for and related to the above. Exception: Cities with population 5,000 or less may finance up to 5,000 square feet of commercial or retail facilities. The 5,000 square feet is cumulative for the city as a whole. 1993 Change: The term "tourism facility"was substantially restricted for districts created after May 31, 1993. Now, such a facility means property that: (1) is in a county where the median income is no more than 85% of the state median income; (2) in a county in which tourism-related earnings make up at least 15% of the total earnings in the county (excluding first class cities); (3) is located outside the Twin Cities metropolitan area; (4) • is located in a city with a maximum population of 20,000; and (5) is a meeting facility, amusement park, recreation facility, cultural facility, marina, park, hotel, motel, lodging SSB64549 ., .:RM-2 �_