Laserfiche WebLink
Development Authorities (EDAs), Housing <br />and Redevelopment Authorities (HRAs) and <br />port authority levies for economic <br />development activities are capped. These <br />limits can hinder the planning of future <br />development. <br />Response: The Legislature should repeal <br />levy limits or increase the levying <br />authority for EDA, HRA, and port <br />authority activities in Minn. Stat. ch. 469. <br />LE-26. Tax Increment Financing <br />(TIF) <br />Issue: TIF is the most important tool <br />available to fund community development <br />and redevelopment efforts. Over time, the <br />TIF law has become increasingly complex <br />as the Legislature seeks to provide cities <br />with the resources to grow the state's <br />economy while maintaining limits on the use <br />of property taxes. Cities need greater <br />flexibility to use TIF for community and <br />economic development that support a city's <br />residents and businesses. Further <br />restrictions of TIF would render the tool less <br />effective and will hinder local efforts to <br />support job creation, housing, <br />redevelopment and remediation. <br />One component of the redevelopment TIF <br />law (Minn. Stat. 469.174, subd. 10) requires <br />that more than 50 percent of the buildings in <br />a proposed redevelopment district be <br />deemed "structurally substandard to a <br />degree requiring substantial renovation or <br />clearance" before a district can be <br />established. This makes small districts with <br />two properties particularly difficult to <br />establish. <br />Response: The Legislature should not <br />enact future TIF law restrictions, rather <br />the Legislature should: <br />a) Amend Minn. Stat. § 469.1763, subd. <br />4, to clarify that tax increment pooling <br />limitations are calculated on a <br />cumulative basis. <br />b) Modify Minn. Stat. 469.174, subd. 10, <br />to allow a redevelopment district to be <br />established where only 50 percent of <br />the buildings are required to be <br />structurally substandard to a degree <br />requiring substantial renovation or <br />clearance. <br />c) Clarify that expenditures for the <br />necessary maintenance of properties <br />within TIF districts are an allowable <br />use of tax increment under Minn. Stat. <br />§ 469.176, subd. 4; <br />d) Allow term extensions for <br />redevelopment districts which are <br />taking longer to develop; <br />e) Amend Minn. Stat. § 469.1763, subd. <br />3, to eliminate the "Five-year Rule" <br />for districts that are taking longer to <br />develop; <br />f) Amend Minn. Stat. § 469.174, subd. <br />25, to provide time limits on the <br />"deemed increment" created by land <br />sales, leases and loans, and allow <br />authorities greater flexibility in the <br />use of lease revenues to fund ongoing <br />operations; <br />Expand the use of TIF to assist in the <br />development of technological <br />infrastructure and products, <br />biotechnology, research, multi -modal <br />transportation and transit -oriented <br />development, restoration of <br />designated historic structures, non - <br />retail commercial projects, and non - <br />wetland areas where unstable/non- <br />buildable soils exist; <br />h) Increase the ability of TIF to facilitate <br />redevelopment and housing activities; <br />i) Modify the housing district income <br />qualification level requirements to <br />allow the levels to vary according to <br />individual communities; <br />g) <br />League of Minnesota Cities <br />2018 City Policies Page 68 <br />