PL PACKET 03212006 - Laserfiche WebLink

Home Browse Search

CHAPTER 16 • 2003 Minn.Laws ch 127,art. 10. The 2003 Legislature made a number of clarifications and changes in TIF 2003 Minn.Laws 1st spec.Sess. law. The law imposes a 180-day statute of limitations on actions to ch 21,art. 10. challenge the creation or modification of a TIF district. Changes were made in the law requiring"but-for"findings before a city approves a TIF plan and the creation of a TIF district. Other changes relate to administrative expenses,plan modifications,reporting requirements,use of increment in pre-79 districts, excess increments,pool, and decertification, among other things. Walser Auto Sales.Inc.v.City of Cities should use extreme care in establishing a TIF district and should Richfield,635 N.W.2d 391 re follow all procedural requirements, otherwise a court may find the district (Minn.Ct.App.2001),affd,644 p q Y N.W.2d 425(Minn.2002). was not properly established. A TIF district was not properly established where minimal effort was made to ensure the thorough inspection of the properties, inaccurate and unprecedented methodology was used to establish the condition of the buildings, and the buildings found structurally substandard were not reasonably distributed throughout the district. Chenoweth v city of New A cause of action for inverse condemnation does not arise where a city's Brighton,655 N W.2d 281 involvement with an adjacent property owner's development consists of (Minn.Ct.App.2003). establishing a TIF district, entering into a contract with a private developer specifying the size and value of structures to be built, and providing for substantial city assistance to facilitate development. • Given the complexity of the laws governing the use of TIF, cities or HRAs should not undertake this method of financing community development projects without the advice of an attorney and professional consultants. F. Property tax abatement Minn.Stat.§§469.1812 to A city may grant an abatement of some or all of the taxes or the increase in 469.1815. taxes it imposes on a parcel of property if the city expects the benefits of the proposed abatement agreement to at least equal the costs of the proposed agreement.The city must also determine that the agreement is in the public interest because it will increase or preserve tax base,provide employment opportunities,provide or help acquire or construct public facilities, help redevelop or renew blighted areas, or help provide access to services for residents of the city. Property taxes in a TIF district cannot be abated unless the period of the abatement will not occur until after the district is decertified. A resolution must be adopted after notice and public hearing, specifying the terms of the abatement.There are statutory limits on the duration and amount of the abatement. Bonds may be issued in an amount equal to the sum of the proposed abatements to provide funds for projects. 16-18 HANDBOOK FOR MINNESOTA Crrms This chapter last revised 12/15/2004