1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing 
  1.3             authorities to establish an urban renewal area; 
  1.4             amending Minnesota Statutes 2002, sections 469.174, by 
  1.5             adding a subdivision; 469.176, by adding a subdivision.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 469.174, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 30.  [URBAN RENEWAL AREA.] "Urban renewal area" means 
  1.10  a contiguous geographic area designated within a project and 
  1.11  within which all parcels must be eligible for inclusion in a 
  1.12  redevelopment, renewal and renovation, or soils condition 
  1.13  district or are currently located within a redevelopment, 
  1.14  renewal and renovation, or soils condition district certified 
  1.15  within ten years of the date of approval of the urban renewal 
  1.16  area.  Redevelopment, renewal and renovation, or soils condition 
  1.17  districts created within the urban renewal area must be 
  1.18  established within ten years from the latter of the city or 
  1.19  county approval of the urban renewal area. 
  1.20     <b>[EFFECTIVE DATE.]</b> This section is effective for urban 
  1.21  renewal areas established on or after the date of final 
  1.22  enactment. 
  1.23     Sec. 2.  Minnesota Statutes 2002, section 469.176, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 8.  [URBAN RENEWAL AREA.] (a) An authority may create 
  2.1   an urban renewal area only upon the notice and after the 
  2.2   discussion, public hearing, and findings required for approval 
  2.3   of the original project.  In addition, the authority must obtain 
  2.4   written approval from the county in which the urban renewal area 
  2.5   is to be located.  After approval by the city and county, the 
  2.6   authority shall notify the commissioner of revenue of the 
  2.7   approved urban renewal area. 
  2.8      (b) All provisions of sections 469.174 through 469.1799 
  2.9   apply except: 
  2.10     (1) the five-year rule under section 469.1763, subdivision 
  2.11  3, is extended to ten years; 
  2.12     (2) the limitation on spending increment outside of the 
  2.13  district under section 469.1763, subdivision 2, does not apply, 
  2.14  but increments may only be expended on improvements or 
  2.15  activities within the urban renewal area; and 
  2.16     (3) the local tax rate certification required under section 
  2.17  469.177, subdivision 1a, does not apply. 
  2.18     <b>[EFFECTIVE DATE.]</b> This section is effective for urban 
  2.19  renewal areas established on or after the date of final 
  2.20  enactment.