<a id="pl.1.3"></a><var>1.3</var>for city growth areas; imposing certain density limits in unincorporated areas; <br/>
<a id="pl.1.4"></a><var>1.4</var>prohibiting new incorporations; modifying tax increment financing standards; <br/>
<a id="pl.1.5"></a><var>1.5</var>prohibiting the use of minimum acreage standards for new school siting;<br/>
<a id="pl.1.6"></a><var>1.6</var>amending Minnesota Statutes 2008, sections 123B.70, subdivision 1; 462.352, by <br/>
<a id="pl.1.7"></a><var>1.7</var>adding a subdivision; 462.357, subdivision 1, by adding subdivisions; 462.358, <br/>
<a id="pl.1.8"></a><var>1.8</var>subdivision 1a; 469.174, by adding a subdivision; 469.176, subdivision 1b, by <br/>
<a id="pl.1.9"></a><var>1.9</var>adding a subdivision; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.1.10"></a><var>1.10</var>chapter 414; repealing Minnesota Statutes 2008, sections 394.232; 414.02.<br/>
<a id="pl.1.11"></a><var>1.11</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.12"></a><var>1.12</var>    Section 1. <b>LEGISLATIVE FINDINGS.</b><br/>
<a id="pl.1.13"></a><var>1.13</var>The legislature finds that land use reform is a key strategy in the effort to reduce <br/>
<a id="pl.1.14"></a><var>1.14</var>the state's emission of greenhouse gases. Land use reform will reduce the distance and <br/>
<a id="pl.1.15"></a><var>1.15</var>frequency of automobile trips and will encourage walking, bicycling, and the use of transit <br/>
<a id="pl.1.16"></a><var>1.16</var>to get to school and work.<br/>
<a id="pl.1.17"></a><var>1.17</var>The legislature also finds that preservation of agricultural lands, forest, prairie, <br/>
<a id="pl.1.18"></a><var>1.18</var>and open space contributes to a healthy and economically vibrant Minnesota. To <br/>
<a id="pl.1.19"></a><var>1.19</var>preserve agricultural lands, forest, prairie, and open space, and to decrease vehicle miles <br/>
<a id="pl.1.20"></a><var>1.20</var>traveled, economic development policies should give priority to the redevelopment and <br/>
<a id="pl.1.21"></a><var>1.21</var>rehabilitation of existing residential, commercial, industrial, recreational, and institutional <br/>
<a id="pl.1.22"></a><var>1.22</var>structures over the construction of new buildings on undeveloped land. Preservation of <br/>
<a id="pl.1.23"></a><var>1.23</var>Minnesota's agricultural lands, forest, prairie, and open space, as well as the protection and <br/>
<a id="pl.1.24"></a><var>1.24</var>enhancement of our cultural heritage, requires careful planning at all levels of government.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.25"></a><var>1.25</var>    Sec. 2. Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read:<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subdivision 1. <b>Commissioner approval.</b> In determining whether to give a school <br/>
<a id="pl.2.2"></a><var>2.2</var>facility a positive, negative, or unfavorable review and comment, the commissioner must <br/>
<a id="pl.2.3"></a><var>2.3</var>evaluate the proposals for facilities using the information provided under section 
         <statute_ref>123B.71, <br/>
<a id="pl.2.4"></a><var>2.4</var>subdivision 9
         </statute_ref>. The commissioner may evaluate the proposals using the most recent <br/>
<a id="pl.2.5"></a><var>2.5</var>"Guide for Planning School Construction in Minnesota" prepared by the Department <br/>
<a id="pl.2.6"></a><var>2.6</var>of Education, but must not issue a negative or unfavorable review and comment under <br/>
<a id="pl.2.7"></a><var>2.7</var>this section for a school facility based on the acreage of the proposed school site. The <br/>
<a id="pl.2.8"></a><var>2.8</var>commissioner must evaluate the energy and environmental impact of any new school <br/>
<a id="pl.2.9"></a><var>2.9</var>facility. If a school is proposed for a new site, the commissioner must examine the energy <br/>
<a id="pl.2.10"></a><var>2.10</var>costs associated with that facility, including the change in pupil transportation costs, and <br/>
<a id="pl.2.11"></a><var>2.11</var>the costs of establishing new infrastructure, including roads, sidewalks, and utility lines. <br/>
<a id="pl.2.12"></a><var>2.12</var><b>EFFECTIVE DATE.</b>This section is effective for review and comments issued <br/>
<a id="pl.2.13"></a><var>2.13</var>after July 1, 2009.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.14"></a><var>2.14</var>    Sec. 3. <b>[414.023] INCORPORATIONS PROHIBITED AFTER JUNE 1, 2009.</b><br/>
<a id="pl.2.15"></a><var>2.15</var>The chief administrative law judge must not order any municipal incorporations <br/>
<a id="pl.2.16"></a><var>2.16</var>after June 1, 2009.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.2.17"></a><var>2.17</var>    Sec. 4. Minnesota Statutes 2008, section 462.352, is amended by adding a subdivision <br/>
<a id="pl.2.18"></a><var>2.18</var>to read:<br/>
<a id="pl.2.19"></a><var>2.19</var>    Subd. 1a. <b>City.</b> "City" means a statutory or home rule charter city.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.2.20"></a><var>2.20</var>    Sec. 5. Minnesota Statutes 2008, section 462.357, subdivision 1, is amended to read:<br/>
<a id="pl.2.21"></a><var>2.21</var>    Subdivision 1. <b>Authority for zoning.</b> For the purpose of promoting the public <br/>
<a id="pl.2.22"></a><var>2.22</var>health, safety, morals, and general welfare, a municipality may by ordinance regulate <br/>
<a id="pl.2.23"></a><var>2.23</var>on the earth's surface, in the air space above the surface, and in subsurface areas, the <br/>
<a id="pl.2.24"></a><var>2.24</var>location, height, width, bulk, type of foundation, number of stories, size of buildings <br/>
<a id="pl.2.25"></a><var>2.25</var>and other structures, the percentage of lot which may be occupied, the size of yards and <br/>
<a id="pl.2.26"></a><var>2.26</var>other open spaces, the density and distribution of population, the uses of buildings and <br/>
<a id="pl.2.27"></a><var>2.27</var>structures for trade, industry, residence, recreation, public activities, or other purposes, <br/>
<a id="pl.2.28"></a><var>2.28</var>and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil <br/>
<a id="pl.2.29"></a><var>2.29</var>conservation, water supply conservation, conservation of shorelands, as defined in <br/>
<a id="pl.2.30"></a><var>2.30</var>sections 
         <statute_ref>103F.201</statute_ref> to 
         <statute_ref>103F.221</statute_ref>, access to direct sunlight for solar energy systems as <br/>
<a id="pl.2.31"></a><var>2.31</var>defined in section 
         <statute_ref>216C.06</statute_ref>, flood control or other purposes, and may establish standards <br/>
<a id="pl.2.32"></a><var>2.32</var>and procedures regulating such uses. To accomplish these purposes, official controls may <br/>
<a id="pl.2.33"></a><var>2.33</var>include provision for purchase of development rights by the governing body in the form of <br/>
<a id="pl.3.1"></a><var>3.1</var>conservation easements under chapter 84C in areas where the governing body considers <br/>
<a id="pl.3.2"></a><var>3.2</var>preservation desirable and the transfer of development rights from those areas to areas the <br/>
<a id="pl.3.3"></a><var>3.3</var>governing body considers more appropriate for development. No regulation may prohibit <br/>
<a id="pl.3.4"></a><var>3.4</var>earth sheltered construction as defined in section 
         <statute_ref>216C.06, subdivision 14</statute_ref>, relocated <br/>
<a id="pl.3.5"></a><var>3.5</var>residential buildings, or manufactured homes built in conformance with sections 
         <statute_ref>327.31</statute_ref> <br/>
<a id="pl.3.6"></a><var>3.6</var>to 
         <statute_ref>327.35</statute_ref> that comply with all other zoning ordinances promulgated pursuant to this <br/>
<a id="pl.3.7"></a><var>3.7</var>section. The regulations may divide the surface, above surface, and subsurface areas of the <br/>
<a id="pl.3.8"></a><var>3.8</var>municipality into districts or zones of suitable numbers, shape, and area. The regulations <br/>
<a id="pl.3.9"></a><var>3.9</var>shall be uniform for each class or kind of buildings, structures, or land and for each class <br/>
<a id="pl.3.10"></a><var>3.10</var>or kind of use throughout such district, but the regulations in one district may differ from <br/>
<a id="pl.3.11"></a><var>3.11</var>those in other districts. The ordinance embodying these regulations shall be known <br/>
<a id="pl.3.12"></a><var>3.12</var>as the zoning ordinance and shall consist of text and maps. A city may by ordinance <br/>
<a id="pl.3.13"></a><var>3.13</var>extend the application of its zoning regulations to unincorporated territory located within <br/>
<a id="pl.3.14"></a><var>3.14</var>two miles of its limits in any direction, but not in a county or town which has adopted <br/>
<a id="pl.3.15"></a><var>3.15</var>zoning regulations; provided that where two or more noncontiguous municipalities have <br/>
<a id="pl.3.16"></a><var>3.16</var>boundaries less than four miles apart, each is authorized to control the zoning of land on <br/>
<a id="pl.3.17"></a><var>3.17</var>its side of a line equidistant between the two noncontiguous municipalities unless a town <br/>
<a id="pl.3.18"></a><var>3.18</var>or county in the affected area has adopted zoning regulations. Any city may thereafter <br/>
<a id="pl.3.19"></a><var>3.19</var>enforce such regulations in the area to the same extent as if such property were situated <br/>
<a id="pl.3.20"></a><var>3.20</var>within its corporate limits, until the county or town board adopts a comprehensive zoning <br/>
<a id="pl.3.21"></a><var>3.21</var>regulation which includes the area. <br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.3.22"></a><var>3.22</var>    Sec. 6. Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision <br/>
<a id="pl.3.23"></a><var>3.23</var>to read:<br/>
<a id="pl.3.24"></a><var>3.24</var>    Subd. 1i. <b>Limited residential densities in unincorporated areas.</b> (a) This <br/>
<a id="pl.3.25"></a><var>3.25</var>subdivision does not apply to unincorporated areas within a city's designated growth <br/>
<a id="pl.3.26"></a><var>3.26</var>boundary, areas that are subdivided and for which there is a recorded plat as of February <br/>
<a id="pl.3.27"></a><var>3.27</var>1, 2009, areas governed by shoreland regulations and zoning, or parcels classified as <br/>
<a id="pl.3.28"></a><var>3.28</var>noncommercial seasonal residential recreational property for property tax purposes.<br/>
<a id="pl.3.29"></a><var>3.29</var>(b) Unincorporated areas with no more than one residential unit per 40 acres as <br/>
<a id="pl.3.30"></a><var>3.30</var>of August 1, 2009, must not be developed with residential densities greater than one <br/>
<a id="pl.3.31"></a><var>3.31</var>unit per 40 acres. If the unincorporated area has a residential density greater than one <br/>
<a id="pl.3.32"></a><var>3.32</var>residential unit per 40 acres as of August 1, 2009, the density must not be increased. A <br/>
<a id="pl.3.33"></a><var>3.33</var>county may enact a new or enforce an existing cluster development ordinance provided <br/>
<a id="pl.3.34"></a><var>3.34</var>that the ordinance:<br/>
<a id="pl.4.1"></a><var>4.1</var>(1) limits the maximum number of dwelling units to no more than 150 percent of the <br/>
<a id="pl.4.2"></a><var>4.2</var>number otherwise permitted in the zoning district;<br/>
<a id="pl.4.3"></a><var>4.3</var>(2) limits lot sizes to no larger than two acres; and<br/>
<a id="pl.4.4"></a><var>4.4</var>(3) includes cluster development site standards designed to avoid development on, <br/>
<a id="pl.4.5"></a><var>4.5</var>fragmentation of, or interference with prime farmland soils, tillable farmland, large tracks <br/>
<a id="pl.4.6"></a><var>4.6</var>of land in agricultural use, woodlands, and other significant stands of vegetation.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.4.7"></a><var>4.7</var>    Sec. 7. Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision <br/>
<a id="pl.4.8"></a><var>4.8</var>to read:<br/>
<a id="pl.4.9"></a><var>4.9</var>    Subd. 10. <b>City growth areas.</b> (a) A city may create a growth area by ordinance <br/>
<a id="pl.4.10"></a><var>4.10</var>when the city council determines that:<br/>
<a id="pl.4.11"></a><var>4.11</var>(1) population growth demands more housing than can be developed in the space <br/>
<a id="pl.4.12"></a><var>4.12</var>available within the city, or growth in commercial or industrial use requires more space <br/>
<a id="pl.4.13"></a><var>4.13</var>than available within the city;<br/>
<a id="pl.4.14"></a><var>4.14</var>(2) planning of city services is necessary to facilitate the growth; and<br/>
<a id="pl.4.15"></a><var>4.15</var>(3) the city has the capacity and willingness to extend city services such as sewer <br/>
<a id="pl.4.16"></a><var>4.16</var>and water throughout the growth area.<br/>
<a id="pl.4.17"></a><var>4.17</var>A city must not include in the growth area any area to which it is not willing or able to <br/>
<a id="pl.4.18"></a><var>4.18</var>extend sewer or water services. An area is appropriate to be included in a city's growth <br/>
<a id="pl.4.19"></a><var>4.19</var>area to the extent that future development within the growth area will maximize existing <br/>
<a id="pl.4.20"></a><var>4.20</var>transportation, water, sewer, and other municipal infrastructure, while avoiding to the <br/>
<a id="pl.4.21"></a><var>4.21</var>extent practicable the development of class A agricultural land. Upon making the findings <br/>
<a id="pl.4.22"></a><var>4.22</var>in this paragraph and after the county review and public hearings in paragraph (b), the <br/>
<a id="pl.4.23"></a><var>4.23</var>city may designate the growth area and update its comprehensive plan to include the <br/>
<a id="pl.4.24"></a><var>4.24</var>growth area.<br/>
<a id="pl.4.25"></a><var>4.25</var>(b) Before designating the growth area, the city must hold a hearing to present to the <br/>
<a id="pl.4.26"></a><var>4.26</var>public its proposed findings for a designated growth area. Notice of the hearing must be <br/>
<a id="pl.4.27"></a><var>4.27</var>published in the city and in the proposed designated growth area. Members of the public <br/>
<a id="pl.4.28"></a><var>4.28</var>must be given a reasonable opportunity to present their comments. The city also must <br/>
<a id="pl.4.29"></a><var>4.29</var>provide the proposed findings and designated growth area to the county planning authority <br/>
<a id="pl.4.30"></a><var>4.30</var>of each county affected. Each county has 45 days to review and comment on the proposal. <br/>
<a id="pl.4.31"></a><var>4.31</var>The city may but is not required to make changes to its proposed designated growth <br/>
<a id="pl.4.32"></a><var>4.32</var>area based on comments from the public and each affected county. After receiving and <br/>
<a id="pl.4.33"></a><var>4.33</var>considering the comments and before adopting the growth area ordinance, the city must <br/>
<a id="pl.4.34"></a><var>4.34</var>provide notice and hold a second public hearing to present its findings and designated <br/>
<a id="pl.4.35"></a><var>4.35</var>growth area, and any changes made to them based on comments received by the city.<br/>
<a id="pl.5.1"></a><var>5.1</var>(c) A city's growth area may extend into the unincorporated area beyond the city <br/>
<a id="pl.5.2"></a><var>5.2</var>limits in any direction. If more than one city claims the same unincorporated area for its <br/>
<a id="pl.5.3"></a><var>5.3</var>growth area, an administrative law judge will determine which city is best positioned to <br/>
<a id="pl.5.4"></a><var>5.4</var>serve the area weighing factors that include existing development and population growth <br/>
<a id="pl.5.5"></a><var>5.5</var>patterns; existing transportation infrastructure; impact on vehicle miles traveled from area <br/>
<a id="pl.5.6"></a><var>5.6</var>to regional amenities, schools, jobs, and governmental services; and the overall costs <br/>
<a id="pl.5.7"></a><var>5.7</var>of extending services to the area.<br/>
<a id="pl.5.8"></a><var>5.8</var>(d) If the city's growth area includes land zoned by the county or town for <br/>
<a id="pl.5.9"></a><var>5.9</var>agricultural use at the time the growth area ordinance is adopted, that land continues to <br/>
<a id="pl.5.10"></a><var>5.10</var>be subject only to the county's or town's official controls for agricultural use. When the <br/>
<a id="pl.5.11"></a><var>5.11</var>county, city, or town receives a request to change the zoning classification of that land to a <br/>
<a id="pl.5.12"></a><var>5.12</var>nonagricultural use, it becomes subject to the city's land use controls.<br/>
<a id="pl.5.13"></a><var>5.13</var>(e) Except as provided in paragraph (d), a city has the exclusive right to plan, adopt, <br/>
<a id="pl.5.14"></a><var>5.14</var>and enforce official controls in its growth area as though the area were within the city. <br/>
<a id="pl.5.15"></a><var>5.15</var>Planning and development in the growth area must be at densities that are consistent <br/>
<a id="pl.5.16"></a><var>5.16</var>with the rest of the city.<br/>
<a id="pl.5.17"></a><var>5.17</var>(f) Growth areas must be reviewed by the city council at least every ten years.<br/>
<a id="pl.5.18"></a><var>5.18</var>(g) As development occurs in the growth area and sewer and water service is <br/>
<a id="pl.5.19"></a><var>5.19</var>extended to the development, that part of the growth area may be annexed to the city <br/>
<a id="pl.5.20"></a><var>5.20</var>by ordinance following the procedures in chapter 414. Annexation by ordinance under <br/>
<a id="pl.5.21"></a><var>5.21</var>this paragraph is not subject to the conditions for annexation by ordinance in section <br/>
<a id="pl.5.22"></a><var>5.22</var>414.033, subdivision 2.<br/>
<a id="pl.5.23"></a><var>5.23</var>(h) A city that has established a growth area must file its growth area ordinance and <br/>
<a id="pl.5.24"></a><var>5.24</var>maps with the Office of Administrative Hearings municipal boundary adjustments.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.5.25"></a><var>5.25</var>    Sec. 8. Minnesota Statutes 2008, section 462.358, subdivision 1a, is amended to read:<br/>
<a id="pl.5.26"></a><var>5.26</var>    Subd. 1a. <b>Authority.</b> To protect and promote the public health, safety, and general <br/>
<a id="pl.5.27"></a><var>5.27</var>welfare, to provide for the orderly, economic, and safe development of land, to preserve <br/>
<a id="pl.5.28"></a><var>5.28</var>agricultural lands, to promote the availability of housing affordable to persons and families <br/>
<a id="pl.5.29"></a><var>5.29</var>of all income levels, and to facilitate adequate provision for transportation, water, sewage, <br/>
<a id="pl.5.30"></a><var>5.30</var>storm drainage, schools, parks, playgrounds, and other public services and facilities, a <br/>
<a id="pl.5.31"></a><var>5.31</var>municipality may by ordinance adopt subdivision regulations establishing standards, <br/>
<a id="pl.5.32"></a><var>5.32</var>requirements, and procedures for the review and approval or disapproval of subdivisions. <br/>
<a id="pl.5.33"></a><var>5.33</var>The regulations may contain varied provisions respecting, and be made applicable only <br/>
<a id="pl.5.34"></a><var>5.34</var>to, certain classes or kinds of subdivisions. The regulations shall be uniform for each <br/>
<a id="pl.5.35"></a><var>5.35</var>class or kind of subdivision.<br/>
<a id="pl.6.1"></a><var>6.1</var>A municipality may by resolution extend the application of its subdivision <br/>
<a id="pl.6.2"></a><var>6.2</var>regulations to unincorporated territory located within two miles of its limits in any <br/>
<a id="pl.6.3"></a><var>6.3</var>direction but not in a town which has adopted subdivision regulations; provided that where <br/>
<a id="pl.6.4"></a><var>6.4</var>two or more noncontiguous municipalities have boundaries less than four miles apart, <br/>
<a id="pl.6.5"></a><var>6.5</var>each is authorized to control the subdivision of land equal distance from its boundaries <br/>
<a id="pl.6.6"></a><var>6.6</var>within this area.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.6.7"></a><var>6.7</var>    Sec. 9. Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision <br/>
<a id="pl.6.8"></a><var>6.8</var>to read:<br/>
<a id="pl.6.9"></a><var>6.9</var>    Subd. 10c. <b>Compact development district.</b> "Compact development district" means <br/>
<a id="pl.6.10"></a><var>6.10</var>a type of tax increment financing district consisting of a project, or portions of a project, <br/>
<a id="pl.6.11"></a><var>6.11</var>within which the authority finds by resolution that the following conditions are satisfied:<br/>
<a id="pl.6.12"></a><var>6.12</var>(1) parcels consisting of 70 percent of the area of the district are occupied by <br/>
<a id="pl.6.13"></a><var>6.13</var>buildings or other structures that are classified as class 3a property under section 273.13, <br/>
<a id="pl.6.14"></a><var>6.14</var>subdivision 24; and<br/>
<a id="pl.6.15"></a><var>6.15</var>(2) the planned redevelopment or development of the district, when completed, will <br/>
<a id="pl.6.16"></a><var>6.16</var>increase the total square footage of buildings, classified as class 3a under section 273.13, <br/>
<a id="pl.6.17"></a><var>6.17</var>subdivision 24, occupying the district by three times or more relative to the square footage <br/>
<a id="pl.6.18"></a><var>6.18</var>of similar buildings occupying the district when the resolution was approved.<br/>
<a id="pl.6.19"></a><var>6.19</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.6.20"></a><var>6.20</var>certification is made after June 30, 2009.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.6.21"></a><var>6.21</var>    Sec. 10. Minnesota Statutes 2008, section 469.176, subdivision 1b, is amended to read:<br/>
<a id="pl.6.22"></a><var>6.22</var>    Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br/>
<a id="pl.6.23"></a><var>6.23</var>paid to the authority<br/>
<a id="pl.6.24"></a><var>6.24</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br/>
<a id="pl.6.25"></a><var>6.25</var>and renovation district,<br/>
<a id="pl.6.26"></a><var>6.26</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br/>
<a id="pl.6.27"></a><var>6.27</var>condition district,<br/>
<a id="pl.6.28"></a><var>6.28</var>(3) after eight years after receipt by the authority of the first increment for an <br/>
<a id="pl.6.29"></a><var>6.29</var>economic development district,<br/>
<a id="pl.6.30"></a><var>6.30</var>(4) for a housing district, a compact development district, or a redevelopment <br/>
<a id="pl.6.31"></a><var>6.31</var>district, after 25 years from the date of receipt by the authority of the first increment.<br/>
<a id="pl.6.32"></a><var>6.32</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br/>
<a id="pl.6.33"></a><var>6.33</var>1e that is based on the receipt of an increment, any increments from taxes payable in <br/>
<a id="pl.6.34"></a><var>6.34</var>the year in which the district terminates shall be paid to the authority. This paragraph <br/>
<a id="pl.7.1"></a><var>7.1</var>does not affect a duration limit calculated from the date of approval of the tax increment <br/>
<a id="pl.7.2"></a><var>7.2</var>financing plan or based on the recovery of costs or to a duration limit under subdivision <br/>
<a id="pl.7.3"></a><var>7.3</var>1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in <br/>
<a id="pl.7.4"></a><var>7.4</var>subdivision 1f.<br/>
<a id="pl.7.5"></a><var>7.5</var>(c) An action by the authority to waive or decline to accept an increment has no <br/>
<a id="pl.7.6"></a><var>7.6</var>effect for purposes of computing a duration limit based on the receipt of increment under <br/>
<a id="pl.7.7"></a><var>7.7</var>this subdivision or any other provision of law. The authority is deemed to have received an <br/>
<a id="pl.7.8"></a><var>7.8</var>increment for any year in which it waived or declined to accept an increment, regardless <br/>
<a id="pl.7.9"></a><var>7.9</var>of whether the increment was paid to the authority.<br/>
<a id="pl.7.10"></a><var>7.10</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br/>
<a id="pl.7.11"></a><var>7.11</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br/>
<a id="pl.7.12"></a><var>7.12</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br/>
<a id="pl.7.13"></a><var>7.13</var>calculating the duration limit under this section.  <br/>
<a id="pl.7.14"></a><var>7.14</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.7.15"></a><var>7.15</var>certification is made after June 30, 2009.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.7.16"></a><var>7.16</var>    Sec. 11. Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision <br/>
<a id="pl.7.17"></a><var>7.17</var>to read:<br/>
<a id="pl.7.18"></a><var>7.18</var>    Subd. 1i. <b>Compact development districts.</b> Tax increments derived from a compact <br/>
<a id="pl.7.19"></a><var>7.19</var>development district may only be used to pay:<br/>
<a id="pl.7.20"></a><var>7.20</var>(1) administrative expenses up to the amount permitted under subdivision 3;<br/>
<a id="pl.7.21"></a><var>7.21</var>(2) the cost of acquiring land located in the district or abutting the boundary of <br/>
<a id="pl.7.22"></a><var>7.22</var>the district;<br/>
<a id="pl.7.23"></a><var>7.23</var>(3) demolition and removal of buildings or other improvements and other site <br/>
<a id="pl.7.24"></a><var>7.24</var>preparation costs for lands located in the district or abutting the boundary of the district; <br/>
<a id="pl.7.25"></a><var>7.25</var>and<br/>
<a id="pl.7.26"></a><var>7.26</var>(4) installation of public infrastructure or public improvements serving the district, <br/>
<a id="pl.7.27"></a><var>7.27</var>but excluding the costs of streets, roads, highways, parking, or other public improvements <br/>
<a id="pl.7.28"></a><var>7.28</var>primarily designed to serve private passenger motor vehicles.<br/>
<a id="pl.7.29"></a><var>7.29</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br/>
<a id="pl.7.30"></a><var>7.30</var>certification is made after June 30, 2009.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.7.31"></a><var>7.31</var>    Sec. 12. <b> REPEALER.</b><br/>
<a id="pl.7.32"></a><var>7.32</var>Minnesota Statutes 2008, sections 394.232; and 414.02, are repealed.<br/>