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allowing the state property tax to be <br />abated; <br />c) Increase funding caps under Minn. <br />Stat. § 469.1813, subd. 8 and duration <br />limits under Minn. Stat. § 469.1813, <br />subd. 6; and <br />d) Amend Minn. Stat. § 469.1813, subd. <br />5, to create a streamlined notice and <br />hearing requirement for multi - <br />jurisdictional tax abatement projects. <br />LE-30. Opportunity Zones <br />Issue: The Opportunity Zones program is a <br />new community development program <br />established by Congress in the Tax Cuts and <br />Jobs Act of 2017 to encourage long-term <br />investments in low-income urban and rural <br />communities nationwide. The Opportunity <br />Zones program provides a tax incentive for <br />investors to re -invest their unrealized capital <br />gains into Opportunity Funds that are <br />dedicated to investing into Opportunity <br />Zones as designated by the chief executives <br />of every state and territory in the United <br />States. The tax incentive is available for up <br />to ten years. <br />As the chief executive of the state of <br />Minnesota, Governor Mark Dayton <br />designated 128 census tracts across the state <br />as Opportunity Zones, but beyond the <br />responsibility for this designation the state <br />does not have an additional role in the <br />implementation of the Act. The United <br />States Treasury released rules on April 17, <br />2019 which provide guidance and <br />clarification for investors and fund <br />managers. It is anticipated that the Act may <br />be a useful tool in spurring development in <br />low-income communities and could help <br />with business development and jobs; there <br />are also questions about what impact the Act <br />will have on the residents that live and <br />businesses that operate, in these <br />communities today. For example, while <br />development may have positive impacts <br />92 <br />such as increasing tax base or job <br />opportunities, robust development could <br />have unintended consequences such as <br />displacement of current residents and <br />businesses. <br />Response: The League of Minnesota <br />Cities urges the federal government to <br />seek regular input from communities that <br />are designated as Opportunity Zones <br />regarding how the tool is being used, <br />whether the tool is encouraging new <br />development opportunities, and how <br />community members who live in the <br />Zones are impacted, such as through a <br />local advisory board made up of <br />residents, businesses, and other <br />stakeholders located in the designated <br />census tracts. The Federal Government <br />should seek input from local communities <br />throughout the implementation of the <br />rules and regulations and consider <br />necessary amendments and adjustments <br />as needed in response to potential <br />questions or concerns raised by the <br />communities whose residents, workers, <br />and businesses will be experiencing the <br />changes that ensue in the Zones. <br />The State of Minnesota should utilize <br />community development resources to <br />stimulate investment in Opportunity <br />Zones and adopt policies that ensure that <br />local residents, workers and businesses <br />benefit from the investments. <br />LE-31. Revisions to the OSA Audit <br />Function <br />Issue: Pursuant to Minn. Stat. § 469.1771, <br />the Office of the State Auditor (OSA) is <br />responsible for tax increment financing <br />(TIF) oversight. As part of its review of TIF <br />districts, the OSA identifies alleged <br />violations of the TIF laws and issues <br />noncompliance notices to TIF authorities. In <br />recent years, a number of cities have <br />