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MEMO TO: MAYOR AND CITY COUNCIL <br />j� FROM: CLERK-ADMINISTRATO <br />DATE: MAY 31, 1988 9 <br />SUBJECT: 1988 LEGISLATIVE ACTS SUMMARY <br />The folluwing is a summarization of actions taken by the <br />Minnesota Legislature during 1988 which are of interest to the <br />City of Mounds View excluding property taxation and local <br />government aids. A separate memorandum from Finance Director <br />Brager and myself on the property tax law and local government <br />aids will be forthcoming once the confusion surrounding those two <br />pieces of legislation is resolved and more accurate information <br />is available. <br />For purposes of ease in understanding this memorandum, I will be <br />providing a short header addressing the various subject matters <br />and then providing the detail on the legislation. Should you <br />have any questions regarding any of the legislation addressed in <br />this memorandum, I would be happy to provide you with any <br />additional material you might require. <br />Tax Increment Financing - The Omnibus Tax Act of 1988 <br />contains a number of Features that Further restrict <br />cities' use of tax increment financing. Some of the <br />restrictions will have a real impact on the use and <br />planned use of tax increment financing while others are <br />more in the nuisance category. The issues that are of <br />concern to the City of Mounds View regarding tax <br />increment financing are as follows, <br />a. Economic Development Districts - Although the City <br />has not used the economic development district <br />portion of the tax increment financing law to certify <br />its existing three districts, should we choose to use <br />this provision in the future the tax law has added <br />some restrictions. Basically, economic development <br />districts in the Metropolitan Area may not be used <br />for development where at least 25% of the square <br />footage of the buildings is used for retail food and <br />beverage service, automobile sales and service, <br />recreation or entertainment facilities, golf courses, <br />massage parlors, skating facilities, sports <br />facilities, or racetracks. <br />b. Soil C_ onditlon Districts - The tax law also places <br />restrictions on soil condition districts such as the <br />Miller property for districts certified after May of <br />this year. Since the Miller property was certified <br />prior to that time, these restrictions will not apply <br />in tha` case. Any new soil condition districts will <br />have a 12 year duration limit which probably would <br />mean an increment of 10 to 11 years depending upon <br />the speed in which the development goes on the tax <br />roles <br />