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LE-26. Remediation and <br />Redevelopment <br />Issue: Communities across Minnesota are <br />faced with expensive barriers to re -using <br />property. These roadblocks include <br />deteriorating, obsolete, and vacant <br />structures, and contaminated land. <br />Larger scale redevelopment projects often <br />require the purchase and assembly of <br />multiple, smaller parcels of land that are not <br />suitable for development on their own. <br />Cities and development authorities may <br />need to purchase land over a period of years <br />and hold them for later development, <br />reducing the effectiveness of traditional <br />financing tools that require immediate <br />development. <br />Such barriers pose significant problems for <br />cities seeking to re -use existing <br />infrastructure, maintain and improve <br />property tax base, provide jobs and housing <br />opportunities, and preserve historic <br />structures. Land remediation activities are <br />particularly costly because significant <br />remediation must occur before private -sector <br />interest can be generated. Exacerbating this <br />situation, the land remediation programs <br />administered by the Department of <br />Employment and Economic Development <br />(DEED) and the Metropolitan Council <br />programs continue to be underfunded. <br />Response: In recognition of the unique <br />needs of land remediation projects <br />statewide, the Legislature should increase <br />funding for the statewide redevelopment <br />account. The League of Minnesota Cities <br />would also support the creation of a land <br />assembly grant or loan program to assist <br />cities and economic development <br />authorities assemble small parcels for <br />redevelopment. The League supports <br />competitive programs administered by <br />DEED with that distribute the funds <br />89 <br />equitably between greater Minnesota and <br />the metro area. The Legislature should <br />continue its support and increase funding <br />levels for state and regional programs to <br />assist in contamination cleanup and <br />brownfields remediation efforts. <br />The State should recognize that the <br />rehabilitation of land due to obsolescence <br />or incompatible land uses is a component <br />of redevelopment. The Legislature should <br />amend the definition of redevelopment <br />district in Minn. Stat. 469.174, subd. 10, <br />to include the obsolescence and <br />incompatible land uses included in a <br />renewal and renovation district (Minn. <br />Stat. § 469.174, subd. l0a), thereby <br />providing cities with more flexible tools to <br />address land remediation and <br />redevelopment. <br />The Legislature should also revive a <br />program similar to "This Old Shop" <br />(Minn. Stat. § 273.11, subd. 19), which <br />would allow cities greater flexibility in <br />targeting commercial development and <br />redevelopment. The Legislature should <br />consider enacting authority that would <br />provide a tax deferral on improvements <br />to commercial buildings, including those <br />located in designated rehabilitation or <br />historic preservation districts. The <br />program's age limit qualifications under <br />Minn. Stat 273.11, subd. 19, should be <br />modified to include properties that are at <br />least 30 years old. <br />LE-27. Development Authority <br />Levy Limits <br />Issue: Under Minn. Stat. § 469.107, § <br />469.033, and § 469.053, Economic <br />Development Authorities (EDAs), Housing <br />and Redevelopment Authorities (HRAs) and <br />port authority levies for economic <br />development activities are capped. These <br />