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with a minimum of 10 days published public <br />notice. When more than one political <br />subdivision abates property taxes for a <br />development project, there must be separate <br />notices and hearings for each subdivision. <br />This requirement can be particularly <br />burdensome for programs designed to <br />develop multiple properties over an <br />extended period of time. If one political <br />subdivision could be designated as the lead <br />entity for purposes of the notice and hearing <br />requirements, such projects could be made <br />more efficient without sacrificing public <br />transparency. <br />Property tax abatements should not be <br />considered a replacement for TIF. <br />Response: In light of current economic <br />conditions existing property tax <br />abatement authority should be <br />strengthened. The Legislature should: <br />a) Expand the abatement authority to <br />allow abatement revenues to be used <br />for economic development activities <br />such as workforce readiness and <br />assistance programs, and technology <br />infrastructure improvements; <br />b) Develop a state fund to facilitate state <br />participation in abatement projects; <br />c) Increase funding caps and duration <br />limits; and <br />d) Amend Minn. Stat. § 469.1813, subd. 5 <br />to create a streamlined notice and <br />hearing requirement for multi - <br />jurisdictional tax abatement projects. <br />LE-29. Workforce Housing <br />Issue: Job creation is one of the <br />fundamental goals of economic <br />development. When employers create new <br />jobs through expansion or relocation there <br />must be sufficient housing in the host <br />community for the new workers and their <br />families to live. In rural communities, a lack <br />of housing stock for new workers can <br />prevent a planned expansion or relocation, <br />hampering job growth and economic <br />development. The economics of building a <br />housing development in greater Minnesota <br />communities makes private development <br />difficult, and workers with higher paying <br />jobs do not qualify for traditional affordable <br />housing. This housing gap can bring <br />development and job growth in a community <br />to a halt. <br />In 2014 the League of Minnesota Cities <br />sponsored legislation that would have <br />created a Workforce Housing TIF District <br />that would have given a new tool to cities <br />with significant workforce housing <br />shortages. The Legislature did not pass the <br />TIF bill, but it did create a $2 million <br />workforce housing pilot program for three <br />cities in Roseau and Pennington counties. <br />This pilot program is an important step that <br />the Legislature should build upon in the <br />2014 session. <br />Response: The League of Minnesota <br />Cities supports additional tools for local <br />communities to develop workforce <br />housing. The Legislature and the State <br />should: <br />a) Create a Workforce Housing TIF <br />District that is not constrained by <br />traditional income limits to be used by <br />cities that have low vacancy rates, <br />anticipated or current job growth, or <br />a significant portion of area employees <br />who are forced to commute a <br />significant distance to work; <br />b) Expand, and modify as necessary, the <br />workforce housing pilot project to <br />allow other areas of the state that are <br />facing significant workforce housing <br />shortages to use the program; <br />c) Make permanent the Housing and Job <br />Growth Initiative created by the <br />Legislature in 2013 to aid housing in <br />League of Minnesota Cities <br />2015 City Policies Page 65 <br />