Agenda - Council Work Session - 06/01/2010

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469.176,2009 Minnesota Statutes Page 1 of 10 2009 Minnesota Statutes 469.176 LIMITATIONS. Subdivision 1. Duration of tax increment financing districts. (a) Subject to the limitations contained in subdivisions 1 a to 1 f, any tax increment financing district as to which bonds are outstanding, payment for which the tax increment and other revenues have been pledged, shall remain in existence at least as long as the bonds continue to be outstanding. The municipality may, at the time of approval of the initial tax increment financing plan, provide for one or both of the following: (1) a shorter maximum duration limit than specified in subdivisions 1a to If; (2) an election as provided under section 469.175, subdivision 1, paragraph (b). The specified limit applies in place of the otherwise applicable limit, unless the authority modifies the plan following the procedures under section 469.175, subdivision 4, paragraph (b). (b) The tax increment pledged to the payment of the. bonds and interest thereon may be discharged and the tax increment financing district may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or date of redemption and interest thereon to the maturity or redemption date. (c) For bonds issued pursuant to section 469.178, subdivisions 2 and 3, the full faith and credit and any taxing powers of the municipality or authority are pledged to the payment of the bonds until the principal of and interest on the bonds has been paid in full. Subd. 1 a. [Repealed, 2005 c 152 art 2 s 31] Subd. lb. Duration limits; terms. (a) No tax increment shall in any event be paid to the authority (1) after 15 years after receipt by the authority of the first increment for a renewal and renovation district, (2) after 20 years after receipt by the authority of the first increment for a soils condition district, (3) after eight years after receipt by the authority of the first increment for an economic development district, (4) for a housing district or a redevelopment district, after 25 years lrom the date of receipt by the authority of the first increment. (b) For purposes of determining a duration limit under this subdivision or subdivision Ie that is based on the receipt of an increment, any increments from taxes payable in the year in which the district terminates shall be paid to the authority. This paragraph does not affect a duration limit calculated from the date of approval of the tax increment financing plan or based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in subdivision 1 f. (c) An action by the authority to waive or decline to accept an increment has no effect for purposes of computing a duration limit based on the receipt of increment under this subdivision or any other provision of law. The authority is deemed to have received an increment for any year in which it waived https://www.revisor.mn.gov/statutes/?id=469.176&year=2009 5/27/2010