Agenda - Council Work Session - 01/25/2022

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High Priority: Legislation to Extend Project Deadline (5 Year Rule) for Tax Increment Financing (TIF) District 14 (The COR) A bill was introduced in the 2020 Legislative Session and was not heard due to (COVID-related) time constraints. The proposed legislation extends the deadline to approve projects funded by the TIF District. Typically, regardless of the duration of the district itself, projects must be approved within the first 5 years of the District. This includes incentives for qualifying private development activity as well as public improvements. Of key importance to this district is improvements to Bunker Lake Boulevard. Under a Joint Powers Agreement, the City is responsible for some improvements to Bunker Lake Boulevard (Anoka County took on initial improvements to Ramsey Boulevard and Sunfish Lake Boulevard). The second priority is making the NW quadrant of The COR 'shovel ready'. A significant amount of fill is necessary to make this land developable. Other, smaller improvements could also be funded by this account/district. Outcome Relative bills passed in the 2021 session: • Five-year rule for redevelopment districts. Section 3 amends Minn. Stat. § 469.1763, subd. 3 to extends the five-year rule by three years for a total of eight years for redevelopment districts that were certified after Dec. 31, 2017, and before June 30, 2020. The five-year rule basically requires development activity for a TIF district to be finished within a five-year period that begins with certification of the district's original tax capacity. Effective for districts for which the request for certification was made after Dec. 31, 2017. • Six -year rule. Section 4 amends Minn. Stat. § 469.1763, subd 4 to make a corresponding change to the six -year rule for those districts whose five-year rule was extended under section 3. Under the six -year rule, tax increment may only be spent in the sixth and subsequent years of a district to pay bonds issued during the first five years of the district, to pay contracts that financed improvements, to reimburse the developer for costs it paid to make improvements in the district during the first five years to decertify the district. Effective July 2, 2021. High Priority: Sales Tax Exemption for Public Works Campus A bill was introduced in the 2020 Legislative Session and was not heard due to (COVID-related) time constraints. The purchase of materials for the nearly $17.3 million Public Works Campus are not exempt from the state sales tax without this legislation. The bill would exempt purchases made for the project, including those made in calendar year 2020 and 2021. This bill has been re -introduced in the 2021 session. Outcome • Bills were introduced in the House and the Senate and hearing held. 2020 City of Ramsey Legislative Platform Page 3 of 9