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RELEVANT LINKS: <br /> Walser Auto sales,Inc.v. Cities should use extreme care in establishing a TIF district and should <br /> City of Richfield,635 <br /> N.W.2d 391(Minn.Ct.App. follow all procedural requirements; otherwise, a court may find the district <br /> 2001 ;acrd,644 N.W.2d was not properly established. In one case, a TIF district was not properly <br /> 425(Minn.2002). <br /> established where minimal effort was made to ensure the thorough <br /> inspection of the properties, inaccurate methodology was used to establish <br /> the condition of the buildings, and the buildings found structurally <br /> substandard were not reasonably distributed throughout the district. <br /> Chenoweth v.City of New In another case, a cause of action for inverse condemnation does not arise <br /> Brighton,655 N.W.2d 821 <br /> (Minn.Ct.App.2003 . where a city's involvement with an adjacent property owner's <br /> development consists of establishing a TIF district, entering into a contract <br /> with a private developer specifying the size and value of structures to be <br /> built, and providing for substantial city assistance to facilitate <br /> development. <br /> Given the complexity of the laws governing the use of TIF, cities or HRAs <br /> should not undertake this method of financing community development <br /> projects without the advice of an attorney and professional consultants. <br /> F. Property tax abatement <br /> Minn.stat.§§469.1812 to A city may use this development tool to segregate some or all of the taxes <br /> 469.1815. <br /> (or the increase in taxes) it imposes on a parcel of property if the city <br /> expects the benefits of the proposed abatement agreement at least to equal <br /> the costs of the proposed development. The term "abatement"is somewhat <br /> misleading, as in most cases the tax is not forgiven; it is paid normally, but <br /> the amount of property tax levied by the city is used to pay for the bonds. <br /> The city must determine that the agreement is in the public interest <br /> because it will increase or preserve tax base, provide employment <br /> opportunities,provide or help acquire or construct public facilities,help <br /> redevelop or renew blighted areas, or help provide access to services for <br /> residents of the city. Property taxes in a TIF district cannot be abated <br /> unless the period of the abatement will not occur until after the district is <br /> decertified. <br /> A resolution must be adopted after notice and public hearing, specifying <br /> the terms of the abatement. <br /> League of Minnesota Cities Handbook for Minnesota Cities 11/4/2014 <br /> Community Development and Redevelopment Chapter 15 1 Page 19 <br />