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financing tools that require immediate <br />development. <br />Such barriers pose significant problems for <br />cities seeking to re -use existing <br />infrastructure, maintain and improve <br />property tax base, provide jobs and housing <br />opportunities, and preserve historic <br />structures. Land recycling activities are <br />particularly costly because significant <br />remediation must occur before private -sector <br />interest can be generated. Exacerbating this <br />situation, the land recycling programs <br />administered by the Department of <br />Employment and Economic Development <br />(DEED) and the Metropolitan Council <br />programs continue to be underfunded. <br />Response: In recognition of the unique <br />needs of land recycling projects statewide, <br />the Legislature should increase funding <br />for the statewide redevelopment account. <br />The League of Minnesota Cities would <br />also support the creation of a land <br />assembly grant or loan program to assist <br />cities and economic development <br />authorities assemble small parcels for <br />redevelopment. The League supports <br />competitive programs administered by <br />DEED with both bonding and general <br />fund appropriations that distribute the <br />funds equitably between greater <br />Minnesota and the metro area. <br />The State should recognize that the <br />rehabilitation of land due to obsolescence <br />or incompatible land uses is a component <br />of redevelopment. The Legislature should <br />amend the definition of redevelopment <br />district under the TIF Act to include the <br />obsolescence and incompatible land uses <br />included in a renewal and renovation <br />district, thereby providing cities with <br />more flexible tools to address land <br />recycling and redevelopment. <br />The Legislature should also revive a <br />program similar to "This Old Shop", <br />which would allow cities greater <br />flexibility in targeting commercial <br />development and redevelopment. The <br />Legislature should consider enacting <br />authority that would provide a tax <br />deferral on improvements to commercial <br />buildings, including those located in <br />designated rehabilitation or historic <br />preservation districts. The program's age <br />limit qualifications should include <br />properties that are at least 30 years old. <br />Finally, the Legislature should continue <br />its support and increase funding levels for <br />state and regional programs to assist in <br />contamination cleanup and brownfields <br />remediation efforts. <br />LE-28. Property Tax Abatement <br />Authority <br />Issue: In an effort to increase the number of <br />development tools available, the 1997 <br />Legislature authorized local units of <br />government to grant property tax <br />abatements. Although tax increment <br />financing (TIF) continues to be the primary <br />financing mechanism for local development <br />projects, tax abatements provide cities with <br />an important, additional economic <br />development tool. Recognizing the need for <br />municipal development tools, the 2008 <br />Legislature expanded the abatement <br />authority by converting the limit on <br />abatements from ten percent of the current <br />tax levy to ten percent of net tax capacity. <br />In order to provide maximum benefits and <br />recognize local decision -making, tax <br />abatements should have less restrictive <br />funding caps, financing terms, and <br />authorized uses. <br />The tax abatement law requires that a <br />political subdivision may only approve an <br />abatement after holding a public meeting <br />League of Minnesota Cities <br />2015 City Policies Page 64 <br />