Agenda - Council - 02/08/2021 - Laserfiche WebLink

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limits can hinder the planning of future development. Response: The Legislature should increase or repeal levy limits or increase the levying authority for EDA, HRA, and port authority activities in Minn. Stat. ch. 469. LE-28. Tax Increment Financing (TIF) Issue: TIF is the most important tool available to fund community development and redevelopment efforts. Over time, the TIF law has become increasingly complex as the Legislature seeks to provide cities with the resources to grow the state's economy while maintaining limits on the use of property taxes. Cities need greater flexibility to use TIF for community and economic development that support a city's residents and businesses. Further restrictions of TIF would render the tool less effective and will hinder local efforts to support job creation, housing, redevelopment and remediation. The need for flexibility has been accentuated due to the pandemic economic downturn which has dramatically slowed existing projects that must continue to comply with statutory timelines. Many projects will have difficulty meeting time -line requirements such as the five-year rule without special legislation authorization. Further restrictions of TIF would render the tool less effective and will hinder local efforts to support job creation, housing, redevelopment and remediation. Response: The Legislature should not enact future TIF law restrictions, rather the Legislature should: 90 a) Amend Minn. Stat. § 469.1763, subd. 4, to clarify that tax increment pooling limitations are calculated on a cumulative basis. b) Modify Minn. Stat. 469.174, subd. 10, to allow a redevelopment district to be established where only 50 percent of the buildings are required to be structurally substandard to a degree requiring substantial renovation or clearance. c) Clarify that expenditures for the necessary maintenance of properties within TIF districts are an allowable use of tax increment under Minn. Stat. § 469.176, subd. 4; d) Allow term extensions for redevelopment districts which are taking longer to develop; e) Amend Minn. Stat. § 469.1763, subd. 3, to eliminate the "Five-year Rule" for districts that are taking longer to develop; f) Amend Minn. Stat. § 469.174, subd. 25, to provide time limits on the "deemed increment" created by land sales, leases and loans, and allow authorities greater flexibility in the use of lease revenues to fund ongoing operations; Expand the use of TIF to assist in the development of technological infrastructure and products, biotechnology, research, multi -modal transportation and transit -oriented development, restoration of designated historic structures, non - retail commercial projects, and non - wetland areas where unstable/non- buildable soils exist; h) Increase the ability of TIF to facilitate redevelopment and housing activities; i) Modify the housing district income qualification level requirements to allow the levels to vary according to individual communities; g)