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I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />! <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />DIS TR] CT TYPES <br /> <br />A. The~ Minn[esote Tax Increment Financing Act creates three typts of <br /> inere.ment d~str~ets: eredevelopment district," housing d~tric~" <br /> "economic development d~strie~." <br /> <br /> 1. Redevelopment d~s~iet <br /> <br /> a. 50% phys~Uy substandard requiring subst~ti~ rehebUite%ion <br /> demol~Uon, or <br /> <br />,20% physically substandard and 30% "blighting influences", or <br /> <br />~raw land, but cost to acquire plus cost to make bufldable exceeds <br />ifair market value afterwards, or <br /> <br />'air rights over public property. <br /> <br /> e. underutilized railroad right-of-way. <br /> <br /> 2. Hoqsing district - subsidized housing. <br /> <br /> 3. 'Economic development district - discourage businesses from moving, <br /> :increased employment increased tax base. . <br /> <br />B.' .The eoS~ of any improvement which could be specially assessed cannot be <br /> considered in applying the raw land test. <br />LIMITATIoNs <br /> <br />The. Tax Increment Act imposes a series of limitations: <br /> <br />1. DUrational limitation of 25 years for redevelopment and housing <br /> dis~tricts, 8 years for economic development district. <br /> <br />2. Excess tax increment must be returned or used to prepay debt <br /> <br />3. only 1096 of tax increment can be used for administrative costs. <br /> <br />5, <br /> <br />6. <br /> <br />Redevelopment contracts must be in hand before land acquisition <br />e~cept in limited eases. <br /> <br />If !nothing done in a district for 3 y. ears, district dissolves. <br /> <br />If~ nothing done on a parcel in a district for 4 years, the parcel drops <br />out of district. <br /> <br />B. These ',were adopted in response to alleged ~.buses of prior laws. <br /> <br /> <br />