Agenda - Council Work Session - 06/01/2010

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469.176,2009 Minnesota Statutes Page 9 of 10 Subd. 6. Action required. (a) If, after four years from the date of certification ofthe original net tax capacity of the tax increment financing district pursuant to section 469.177, no demolition, rehabilitation, or renovation of property or other site preparatioti, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation, or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 ofthe fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. (b) For districts which were certified on or after January 1,2005, and before April 20, 2009, the four-year period under paragraph (a) is increased to six years. Subd. 7. Parcels not includable in districts. (a) The authority may request inclusion in a tax increment financing district and the county auditor may certify the original tax capacity of a parcel or a part ofa parcel that qualified under the provisions of section 273.111 or 273.112 or chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification only for: (1) a district in which 85 percent or more of the planned buildings and facilities (determined on the basis of square footage) are a qualified manufacturing facility or a qualified distribution facility or a combination of both; or (2) a housing district. (b)(l) A distribution facility means buildings and other improvements to real property that are used to conduct activities in at least each of the following categories: (i) to store or warehouse tangible personal property; (ii) to take orders for shipment, mailing, or delivery; (iii) to prepare personal property for shipment, mailing, or delivery; and (iv) to ship, mail, or deliver property. (2) A manufacturing facility includes space used for manufacturing or producing tangible personal property, including processing resulting in the change in condition of the property, and space necessary for and related to the manufacturing activities. (3) To be a qualified facility, the owner or operator of a manufacturing or distribution facility must https://www.revisor.mn.gov/statutes/?id=469.176&year=2009 5/27/2010