1.1                          A bill for an act 
  1.2             relating to the Minneapolis community development 
  1.3             agency; authorizing the establishment of a phased 
  1.4             redevelopment tax increment financing district for the 
  1.5             Sears project; extending the term of the district; 
  1.6             defining as a qualifying activity the removal of 
  1.7             hazardous substances; reducing the original local net 
  1.8             tax capacity of the district to zero. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [REDEVELOPMENT DISTRICT FOR SEARS PROJECT.] 
  1.11     Subdivision 1.  [AUTHORIZATION.] Upon approval of the 
  1.12  governing body of the Minneapolis community development agency 
  1.13  by resolution, the authority may establish for the Sears project 
  1.14  a redevelopment tax increment financing district with phased 
  1.15  redevelopment.  The district shall be subject to Minnesota 
  1.16  Statutes, sections 469.174 to 469.179, as amended, except as 
  1.17  provided in this section.  
  1.18     Subd. 2.  [ORIGINAL NET TAX CAPACITY.] Notwithstanding 
  1.19  Minnesota Statutes, section 469.174, subdivision 7, the original 
  1.20  net tax capacity of the district, as of the date the authority 
  1.21  certifies to the county auditor that the authority has entered 
  1.22  into a redevelopment or other agreement for rehabilitation of 
  1.23  the site or remediation of hazardous substances, shall be zero.  
  1.24     Subd. 3.  [DURATION OF DISTRICT.] Notwithstanding the 
  1.25  provisions of Minnesota Statutes, section 469.176, subdivision 
  1.26  1b, no tax increment shall be paid to the authority after 18 
  1.27  years from the date of receipt by the authority of the first 
  2.1   increment generated from the final phase of redevelopment.  
  2.2   "Final phase of redevelopment" means that phase of redevelopment 
  2.3   activity which completes the rehabilitation of the Sears site.  
  2.4      Subd. 4.  [REMOVAL OF HAZARDOUS SUBSTANCES.] For purposes 
  2.5   of the three-year activity rule under Minnesota Statutes, 
  2.6   section 469.176, subdivision 1a, and the four-year action 
  2.7   requirement under Minnesota Statutes, section 469.176, 
  2.8   subdivision 6, the removal of hazardous substances from the site 
  2.9   shall constitute a qualifying activity.  
  2.10     Subd. 5.  [FIVE-YEAR RULE.] Minnesota Statutes, section 
  2.11  469.1763, subdivision 3, does not apply.  
  2.12     Sec. 2.  [EFFECTIVE DATE.] 
  2.13     Section 1 is effective upon compliance by the governing 
  2.14  body of the authority with Minnesota Statutes, section 645.021, 
  2.15  subdivision 2.