Agenda - Council - 10/22/2019 - Laserfiche WebLink

Home

may have better control over the nature of the development; the City may be able to fund administrative and/or community development costs with revenue from the TIF district and; in some cases, the qualifying of new development is enhanced by the TIF financing. An EDA may act as an Authority for the purposes of creating and administering tax increment financing districts and plans. These powers must be exercised within a Redevelopment Project, when acting under HRA powers, or within a Municipal Development District when exercising City powers. In general, an EDA must receive approval from the City Council prior to adoption of a Tax Increment Financing plan, and comply in all respects with the requirements of Minnesota Statutes 469.174 - 469.179. There are several types of TIF districts allowed by statute. The following is a brief description of each. Redevelopment District: • Generally a blighted area containing substandard buildings. • Requires documentation to evaluate occupied land area and analysis of substandard buildings. • Maximum duration of TIF district is 25 years from receipt of the first increment. Renewal and Renovation District: • Blight and obsolescence tests must be met. • Maximum duration of TIF district is 15 years from receipt of the first tax increment. Housing District • Provides housing opportunities for persons and families of low and moderate income. • Maximum duration of T1F district is 25 years from receipt of the first tax increment. Soils Condition District: • Provides for the removal or remediation of hazardous substances or contaminants is specified in a development action response plan. • Such costs must exceed (a) the fair market value of the land before completion of the preparation or (b) $2 per square foot of the area of each parcel. • Maximum duration of the TIF district is 20 years from receipt of the first tax increment. Economic Development District: • May be used only for manufacturing, production, processing, warehousing, storage, distribution (excluding retail sales), research and development, telemarketing, certain tourism and border City retail facilities and uses are directly related to or in support of such qualifying activities. Prohibits establishment if more than 15 percent of the square footage of such facilities are used for other purposes. 21