HF 1547

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; tax increment financing; 
  1.3             imposing restrictions; defining terms; requiring 
  1.4             fiscal disparities contributions to be paid by the 
  1.5             district; modifying the computation of original net 
  1.6             tax capacity; clarifying provisions; amending 
  1.7             Minnesota Statutes 1996, sections 469.174, subdivision 
  1.8             10, and by adding a subdivision; 469.175, subdivisions 
  1.9             3, 5, and by adding subdivisions; 469.176, 
  1.10            subdivisions 1a, 2, 4g, and 4j; and 469.177, 
  1.11            subdivisions 3 and 4. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 469.174, 
  1.14  subdivision 10, is amended to read: 
  1.15     Subd. 10.  [REDEVELOPMENT DISTRICT.] (a) "Redevelopment 
  1.16  district" means a type of tax increment financing district 
  1.17  consisting of a project, or portions of a project, within which 
  1.18  the authority finds by resolution that one of the following 
  1.19  conditions, reasonably distributed throughout the district, 
  1.20  exists: 
  1.21     (1) parcels consisting of 70 percent of the area of the 
  1.22  district are occupied by buildings, streets, utilities, or other 
  1.23  improvements and more than 50 percent of the buildings, not 
  1.24  including outbuildings, are structurally substandard to a degree 
  1.25  requiring substantial renovation or clearance; or 
  1.26     (2) the property consists of vacant, unused, underused, 
  1.27  inappropriately used, or infrequently used railyards, rail 
  1.28  storage facilities, or excessive or vacated railroad 
  2.1   rights-of-way. 
  2.2      (b) For purposes of this subdivision, "structurally 
  2.3   substandard" shall mean containing defects in structural 
  2.4   elements or a combination of deficiencies in essential utilities 
  2.5   and facilities, light and ventilation, fire protection including 
  2.6   adequate egress, layout and condition of interior partitions, or 
  2.7   similar factors, which defects or deficiencies are of sufficient 
  2.8   total significance to justify substantial renovation or 
  2.9   clearance.  
  2.10     A building is not structurally substandard if it is in 
  2.11  compliance with the building code applicable to new buildings or 
  2.12  could be modified to satisfy the building code at a cost of less 
  2.13  than 15 percent of the cost of constructing a new structure of 
  2.14  the same square footage and type on the site.  The municipality 
  2.15  may find that a building is not disqualified as structurally 
  2.16  substandard under the preceding sentence on the basis of 
  2.17  reasonably available evidence, such as the size, type, and age 
  2.18  of the building, the average cost of plumbing, electrical, or 
  2.19  structural repairs, or other similar reliable evidence.  If the 
  2.20  evidence supports a reasonable conclusion that the building is 
  2.21  not disqualified as structurally substandard, The municipality 
  2.22  may not make such a determination without an interior inspection 
  2.23  or of the property, but need not have an independent, expert 
  2.24  appraisal prepared of the cost of repair and rehabilitation of 
  2.25  the building. 
  2.26     A parcel is deemed to be occupied by a structurally 
  2.27  substandard building for purposes of the finding under paragraph 
  2.28  (a) if all of the following conditions are met: 
  2.29     (1) the parcel was occupied by a substandard building 
  2.30  within three years of the filing of the request for 
  2.31  certification of the parcel as part of the district with the 
  2.32  county auditor; 
  2.33     (2) the substandard building was demolished or removed by 
  2.34  the authority or the demolition or removal was financed by the 
  2.35  authority or was done by a developer under a development 
  2.36  agreement with the authority; 
  3.1      (3) the authority found by resolution before the demolition 
  3.2   or removal that the parcel was occupied by a structurally 
  3.3   substandard building and that after demolition and clearance the 
  3.4   authority intended to include the parcel within a district; and 
  3.5      (4) upon filing the request for certification of the tax 
  3.6   capacity of the parcel as part of a district, the authority 
  3.7   notifies the county auditor that the original tax capacity of 
  3.8   the parcel must be adjusted as provided by section 469.177, 
  3.9   subdivision 1, paragraph (h). 
  3.10     (c) For purposes of this subdivision, a parcel is not 
  3.11  occupied by buildings, streets, utilities, or other improvements 
  3.12  unless 15 percent of the area of the parcel contains 
  3.13  improvements. 
  3.14     (d) For districts consisting of two or more noncontiguous 
  3.15  areas, each area must qualify as a redevelopment district under 
  3.16  paragraph (a) to be included in the district, and the entire 
  3.17  area of the district must satisfy paragraph (a). 
  3.18     Sec. 2.  Minnesota Statutes 1996, section 469.174, is 
  3.19  amended by adding a subdivision to read: 
  3.20     Subd. 25.  [INCREMENT.] "Increment," "tax increment," or 
  3.21  "revenues derived from tax increment" for a district includes: 
  3.22     (1) taxes paid by the captured net tax capacity, but 
  3.23  excluding any excess taxes, as computed under section 469.177; 
  3.24     (2) the proceeds from the sale of property, tangible or 
  3.25  intangible, purchased by the authority with tax increments; 
  3.26     (3) repayments of loans or other advances made by the 
  3.27  authority with tax increments; and 
  3.28     (4) investment earnings on or other income from tax 
  3.29  increments. 
  3.30     Sec. 3.  Minnesota Statutes 1996, section 469.175, 
  3.31  subdivision 3, is amended to read: 
  3.32     Subd. 3.  [MUNICIPALITY APPROVAL.] A county auditor shall 
  3.33  not certify the original net tax capacity of a tax increment 
  3.34  financing district until the tax increment financing plan 
  3.35  proposed for that district has been approved by the municipality 
  3.36  in which the district is located.  If an authority that proposes 
  4.1   to establish a tax increment financing district and the 
  4.2   municipality are not the same, the authority shall apply to the 
  4.3   municipality in which the district is proposed to be located and 
  4.4   shall obtain the approval of its tax increment financing plan by 
  4.5   the municipality before the authority may use tax increment 
  4.6   financing.  The municipality shall approve the tax increment 
  4.7   financing plan only after a public hearing thereon after 
  4.8   published notice in a newspaper of general circulation in the 
  4.9   municipality at least once not less than ten days nor more than 
  4.10  30 days prior to the date of the hearing.  The published notice 
  4.11  must include a map of the area of the district from which 
  4.12  increments may be collected and, if the project area includes 
  4.13  additional area, a map of the project area in which the 
  4.14  increments may be expended.  The hearing may be held before or 
  4.15  after the approval or creation of the project or it may be held 
  4.16  in conjunction with a hearing to approve the project.  Before or 
  4.17  at the time of approval of the tax increment financing plan, the 
  4.18  municipality shall make the following findings, and shall set 
  4.19  forth in writing the reasons and supporting facts for each 
  4.20  determination: 
  4.21     (1) that the proposed tax increment financing district is a 
  4.22  redevelopment district, a renewal or renovation district, a 
  4.23  mined underground space development district, a housing 
  4.24  district, a soils condition district, or an economic development 
  4.25  district; if the proposed district is a redevelopment district 
  4.26  or a renewal or renovation district, the reasons and supporting 
  4.27  facts for the determination that the district meets the criteria 
  4.28  of section 469.174, subdivision 10, paragraph (a), clauses (1) 
  4.29  and (2), or subdivision 10a, must be documented in writing and 
  4.30  retained and made available to the public by the authority until 
  4.31  the district has been terminated. 
  4.32     (2) that the proposed development or redevelopment, in the 
  4.33  opinion of the municipality, would not reasonably be expected to 
  4.34  occur solely through private investment within the reasonably 
  4.35  foreseeable future and that the increased market value of the 
  4.36  site that could reasonably be expected to occur without the use 
  5.1   of tax increment financing would be less than the increase in 
  5.2   the market value estimated to result from the proposed 
  5.3   development after subtracting the present value of the projected 
  5.4   tax increments for the maximum duration of the district 
  5.5   permitted by the plan.  The requirements of this clause do not 
  5.6   apply if the district is a qualified housing district, as 
  5.7   defined in section 273.1399, subdivision 1. 
  5.8      (3) that the tax increment financing plan conforms to the 
  5.9   general plan for the development or redevelopment of the 
  5.10  municipality as a whole. 
  5.11     (4) that the tax increment financing plan will afford 
  5.12  maximum opportunity, consistent with the sound needs of the 
  5.13  municipality as a whole, for the development or redevelopment of 
  5.14  the project by private enterprise. 
  5.15     (5) that the municipality elects the method of tax 
  5.16  increment computation set forth in section 469.177, subdivision 
  5.17  3, clause (b), if applicable. 
  5.18     When the municipality and the authority are not the same, 
  5.19  the municipality shall approve or disapprove the tax increment 
  5.20  financing plan within 60 days of submission by the authority, or 
  5.21  the plan shall be deemed approved.  When the municipality and 
  5.22  the authority are not the same, the municipality may not amend 
  5.23  or modify a tax increment financing plan except as proposed by 
  5.24  the authority pursuant to subdivision 4.  Once approved, the 
  5.25  determination of the authority to undertake the project through 
  5.26  the use of tax increment financing and the resolution of the 
  5.27  governing body shall be conclusive of the findings therein and 
  5.28  of the public need for the financing. 
  5.29     Sec. 4.  Minnesota Statutes 1996, section 469.175, is 
  5.30  amended by adding a subdivision to read: 
  5.31     Subd. 3a.  [BUT-FOR TEST; MODIFICATIONS.] (a) The 
  5.32  provisions of this subdivision apply, if after municipal 
  5.33  approval was obtained under subdivision 3, clause (2), the 
  5.34  authority: 
  5.35     (1) amends the tax increment financing plan, adopts or 
  5.36  amends a development or redevelopment plan under the authority's 
  6.1   law, enters into or amends a development or similar agreement, 
  6.2   or adopts a resolution or approves an amended budget to permit 
  6.3   additional increments to be spent; and 
  6.4      (2) the actions taken that satisfy clause (1) are estimated 
  6.5   to permit spending of revenues derived from increments of 
  6.6   $50,000 or more. 
  6.7      (b) No action that satisfies the requirements of paragraph 
  6.8   (a) is effective, unless the municipality after public notice 
  6.9   and hearing finds that, in its opinion: 
  6.10     (1) the proposed development or redevelopment to be 
  6.11  financed would not reasonably be expected to occur solely 
  6.12  through private investment within the reasonably foreseeable 
  6.13  future; and 
  6.14     (2) the increased taxable market value of the site that 
  6.15  could reasonably be expected to occur without the spending of 
  6.16  tax increments would be less than the increase in the taxable 
  6.17  market value estimated to result from the proposed development 
  6.18  after subtracting the present value of the projected tax 
  6.19  increments authorized to be spent on the development or 
  6.20  redevelopment. 
  6.21     (c) The requirements of this subdivision do not apply to 
  6.22  expenditures to assist a development that meets the requirements 
  6.23  for a qualified housing district, as defined in section 
  6.24  273.1399, subdivision 1. 
  6.25     Sec. 5.  Minnesota Statutes 1996, section 469.175, 
  6.26  subdivision 5, is amended to read: 
  6.27     Subd. 5.  [ANNUAL DISCLOSURE.] (a) For all tax increment 
  6.28  financing districts, whether created prior or subsequent to 
  6.29  August 1, 1979, on or before July 1 of each year, the authority 
  6.30  shall submit to the county board, the county auditor, the school 
  6.31  board, state auditor and, if the authority is other than the 
  6.32  municipality, the governing body of the municipality, a report 
  6.33  of the status of the district.  The report shall include the 
  6.34  following information:  the amount and the source of revenue in 
  6.35  the account, the amount and purpose of expenditures from the 
  6.36  account, the amount of any pledge of revenues, including 
  7.1   principal and interest on any outstanding bonded indebtedness, 
  7.2   the original net tax capacity of the district and any 
  7.3   subdistrict, the captured net tax capacity retained by the 
  7.4   authority, the captured net tax capacity shared with other 
  7.5   taxing districts, the tax increment received, and any additional 
  7.6   information necessary to demonstrate compliance with any 
  7.7   applicable tax increment financing plan. 
  7.8      (b) An annual statement showing the tax increment received 
  7.9   and expended in that year, the original net tax capacity, 
  7.10  captured net tax capacity, amount of outstanding bonded 
  7.11  indebtedness, the amount of the district's and any subdistrict's 
  7.12  increments paid to other governmental bodies, the amount paid 
  7.13  for administrative costs, the sum of increments paid, directly 
  7.14  or indirectly, for activities and improvements located outside 
  7.15  of the district, and any additional information the authority 
  7.16  deems necessary shall be published in a newspaper of general 
  7.17  circulation in the municipality.  If the fiscal disparities 
  7.18  contribution under chapter 276A or 473F for the district is 
  7.19  computed under Minnesota Statutes 1996, section 469.177, 
  7.20  subdivision 3, paragraph (a), the annual statement must disclose 
  7.21  that fact and indicate the amount of increased property tax 
  7.22  imposed on other properties in the municipality as a result of 
  7.23  the fiscal disparities contribution.  The commissioner of 
  7.24  revenue shall prescribe the form of this statement and the 
  7.25  method for calculating the increased property taxes.  The 
  7.26  authority must publish the annual statement for a year no later 
  7.27  than July 1 of the next year.  The authority must provide a copy 
  7.28  of the annual statement to the state auditor by the time it 
  7.29  submits it for publication.  
  7.30     Sec. 6.  Minnesota Statutes 1996, section 469.175, is 
  7.31  amended by adding a subdivision to read: 
  7.32     Subd. 9.  [DEVELOPER FINANCING; RESTRICTIONS.] (a) The 
  7.33  provisions of this subdivision apply if the authority enters 
  7.34  into an agreement or other arrangement with a developer that 
  7.35  provides for the developer to be paid with increments for costs 
  7.36  the developer incurs or pays for a project under the tax 
  8.1   increment financing plan. 
  8.2      (b) A "developer" means a nongovernmental entity that has 
  8.3   an ownership interest in or a contract to improve, operate, or 
  8.4   manage property in the project area. 
  8.5      (c) The agreement with the developer: 
  8.6      (1) must be in writing; 
  8.7      (2) must require that the developer submit written 
  8.8   documentation that it has paid costs for which increments may be 
  8.9   spent under sections 469.174 to 469.178 and under the plan for 
  8.10  the district before reimbursement may be paid; and 
  8.11     (3) may provide for interest on payments at a reasonable 
  8.12  rate, not to exceed the authority's cost of borrowing under 
  8.13  similar terms. 
  8.14     Sec. 7.  Minnesota Statutes 1996, section 469.176, 
  8.15  subdivision 1a, is amended to read: 
  8.16     Subd. 1a.  [DURATION LIMIT; THREE-YEAR ACTIVITY RULE.] No 
  8.17  tax increment shall be paid to an authority for a tax increment 
  8.18  financing district after three years from the date of 
  8.19  certification of the original net tax capacity of the taxable 
  8.20  real property in the district by the county auditor, unless 
  8.21  within the three-year period (1) bonds have been issued in aid 
  8.22  of the project containing the district pursuant to section 
  8.23  469.178, or any other law, except revenue bonds issued pursuant 
  8.24  to sections 469.152 to 469.165 to finance activity as provided 
  8.25  in clause (2) or (3) or both, or (2) the authority has acquired 
  8.26  property within the district, or (3) the authority has 
  8.27  constructed or caused to be constructed public improvements 
  8.28  within the district. 
  8.29     Sec. 8.  Minnesota Statutes 1996, section 469.176, 
  8.30  subdivision 2, is amended to read: 
  8.31     Subd. 2.  [EXCESS TAX INCREMENTS.] (a) In any year in which 
  8.32  the tax increment exceeds the amount necessary to pay the costs 
  8.33  authorized by the tax increment financing plan, including the 
  8.34  amount necessary to cancel any tax levy as provided in section 
  8.35  475.61, subdivision 3, the authority shall use the excess amount 
  8.36  to do any of the following:  (1) prepay any outstanding bonds, 
  9.1   (2) discharge the pledge of tax increment therefor, (3) pay into 
  9.2   an escrow account dedicated to the payment of such bond, or (4) 
  9.3   return the excess amount to the county auditor who shall 
  9.4   distribute the excess amount to the municipality, county, and 
  9.5   school district in which the tax increment financing district is 
  9.6   located in direct proportion to their respective local tax 
  9.7   rates.  The county auditor must report to the commissioner of 
  9.8   children, families, and learning the amount of any excess tax 
  9.9   increment distributed to a school district within 30 days of the 
  9.10  distribution. 
  9.11     (b) Any revenues derived from tax increments from a 
  9.12  district that are unspent or unencumbered upon decertification 
  9.13  must be returned to the county auditor as provided in paragraph 
  9.14  (a), clause (4).  "Decertification of a district" means the last 
  9.15  day of the earlier of (1) the last calendar year in which the 
  9.16  district is permitted to collect increment under this section, 
  9.17  or (2) the calendar year in which the authority elects to stop 
  9.18  collecting increments.  This paragraph does not apply to the 
  9.19  portion of the increments permitted to be spent outside the 
  9.20  district under section 469.1763, subdivision 2, if the district 
  9.21  is subject to that subdivision. 
  9.22     Sec. 9.  Minnesota Statutes 1996, section 469.176, 
  9.23  subdivision 4g, is amended to read: 
  9.24     Subd. 4g.  [GENERAL GOVERNMENT USE PROHIBITED.] (a) These 
  9.25  revenues shall not be used to circumvent existing levy limit law.
  9.26     (b) No revenues derived from tax increment from any 
  9.27  district, whether certified before or after August 1, 1979, 
  9.28  shall be used for the acquisition, construction, renovation, 
  9.29  operation, or maintenance of a building to be used primarily and 
  9.30  regularly for conducting the business of a municipality, county, 
  9.31  school district, or any other local unit of government or the 
  9.32  state or federal government.  "Conducting the business of the 
  9.33  unit of government" includes, but is not limited to, the 
  9.34  production or sale of goods or the provision of any service the 
  9.35  unit of government provides in its normal course of operations.  
  9.36  This provision shall not prohibit the use of revenues derived 
 10.1   from tax increments for the construction or renovation of a 
 10.2   parking structure, a commons area used as a public park, or a 
 10.3   facility used for social, recreational, or conference 
 10.4   purposes and not primarily for conducting the business of the 
 10.5   municipality, but only if the construction or renovation is 
 10.6   necessary to obtain a binding commitment by a third party to 
 10.7   construct private taxable improvements as part of the 
 10.8   development or redevelopment.  The market value of the taxable 
 10.9   improvements must be substantial in relation to the cost of the 
 10.10  construction or renovation of the public improvements.  
 10.11     (b) (c) If any publicly owned facility used for social, 
 10.12  recreational, or conference purposes and financed in whole or in 
 10.13  part from revenues derived from a district is operated or 
 10.14  managed by an entity other than the authority, the operating and 
 10.15  management policies of the facility must be approved by the 
 10.16  governing body of the authority. 
 10.17     Sec. 10.  Minnesota Statutes 1996, section 469.176, 
 10.18  subdivision 4j, is amended to read: 
 10.19     Subd. 4j.  [REDEVELOPMENT DISTRICTS.] (a) At least 90 
 10.20  percent of the revenues derived from tax increments from a 
 10.21  redevelopment district or renewal and renovation district must 
 10.22  be used to finance the cost of correcting conditions that allow 
 10.23  designation of redevelopment and renewal and renovation 
 10.24  districts under section 469.174. 
 10.25     These costs include (b) "Correcting conditions that allow 
 10.26  designation" of these districts means: 
 10.27     (1) acquiring properties containing structurally 
 10.28  substandard buildings or improvements,; 
 10.29     (2) acquiring adjacent parcels necessary to provide a site 
 10.30  of sufficient size to permit development, of the parcels 
 10.31  containing substandard structures; 
 10.32     (3) demolition of structures, including any required 
 10.33  relocation costs; 
 10.34     (4) clearing of the land, and; 
 10.35     (5) installation of utilities, roads, sidewalks, and 
 10.36  parking facilities for the site; and 
 11.1      (6) costs similar in character to those listed in clauses 
 11.2   (1) to (5), but all costs must relate directly to financing 
 11.3   redevelopment of the parcels containing substandard structures. 
 11.4      (c) The allocated administrative expenses of the authority 
 11.5   may be included in the qualifying costs. 
 11.6      Sec. 11.  Minnesota Statutes 1996, section 469.177, 
 11.7   subdivision 3, is amended to read: 
 11.8      Subd. 3.  [TAX INCREMENT, RELATIONSHIP TO CHAPTERS 276A AND 
 11.9   473F.] (a) Unless the governing body elects pursuant to clause 
 11.10  (b) the following method of computation shall apply: 
 11.11     (1) The original net tax capacity and the current net tax 
 11.12  capacity shall be determined before the application of the 
 11.13  fiscal disparity provisions of chapter 276A or 473F.  Where the 
 11.14  original net tax capacity is equal to or greater than the 
 11.15  current net tax capacity, there is no captured net tax capacity 
 11.16  and no tax increment determination.  Where the original net tax 
 11.17  capacity is less than the current net tax capacity, the 
 11.18  difference between the original net tax capacity and the current 
 11.19  net tax capacity is the captured net tax capacity.  This amount 
 11.20  less any portion thereof which the authority has designated, in 
 11.21  its tax increment financing plan, to share with the local taxing 
 11.22  districts is the retained captured net tax capacity of the 
 11.23  authority.  
 11.24     (2) The county auditor shall exclude the retained captured 
 11.25  net tax capacity of the authority from the net tax capacity of 
 11.26  the local taxing districts in determining local taxing district 
 11.27  tax rates.  The local tax rates so determined are to be extended 
 11.28  against the retained captured net tax capacity of the authority 
 11.29  as well as the net tax capacity of the local taxing districts.  
 11.30  The tax generated by the extension of the lesser of (A) the 
 11.31  local taxing district tax rates or (B) the original local tax 
 11.32  rate to the retained captured net tax capacity of the authority 
 11.33  is the tax increment of the authority.  
 11.34     (b) The governing body may, by resolution approving the tax 
 11.35  increment financing plan pursuant to section 469.175, 
 11.36  subdivision 3, elect The following method of computation applies 
 12.1   to determine the amount of tax increment: 
 12.2      (1) The original net tax capacity shall be determined 
 12.3   before the application of the fiscal disparity provisions of 
 12.4   chapter 276A or 473F.  The current net tax capacity shall 
 12.5   exclude any fiscal disparity commercial-industrial net tax 
 12.6   capacity increase between the original year and the current year 
 12.7   multiplied by the fiscal disparity ratio determined pursuant to 
 12.8   section 276A.06, subdivision 7, or 473F.08, subdivision 6.  
 12.9   Where the original net tax capacity is equal to or greater than 
 12.10  the current net tax capacity, there is no captured net tax 
 12.11  capacity and no tax increment determination.  Where the original 
 12.12  net tax capacity is less than the current net tax capacity, the 
 12.13  difference between the original net tax capacity and the current 
 12.14  net tax capacity is the captured net tax capacity.  This amount 
 12.15  less any portion thereof which the authority has designated, in 
 12.16  its tax increment financing plan, to share with the local taxing 
 12.17  districts is the retained captured net tax capacity of the 
 12.18  authority.  
 12.19     (2) The county auditor shall exclude the retained captured 
 12.20  net tax capacity of the authority from the net tax capacity of 
 12.21  the local taxing districts in determining local taxing district 
 12.22  tax rates.  The local tax rates so determined are to be extended 
 12.23  against the retained captured net tax capacity of the authority 
 12.24  as well as the net tax capacity of the local taxing districts.  
 12.25  The tax generated by the extension of the lesser of (A) the 
 12.26  local taxing district tax rates or (B) the original local tax 
 12.27  rate to the retained captured net tax capacity of the authority 
 12.28  is the tax increment of the authority.  
 12.29     (3) An election by the governing body pursuant to paragraph 
 12.30  (b) shall be submitted to the county auditor by the authority at 
 12.31  the time of the request for certification pursuant to 
 12.32  subdivision 1. 
 12.33     (c) The method of computation of tax increment applied to a 
 12.34  district pursuant to paragraph (a) or (b) shall remain the same 
 12.35  for the duration of the district, except that the governing body 
 12.36  may elect to change its election from the method of computation 
 13.1   in paragraph (a) to the method in paragraph (b). 
 13.2      Sec. 12.  Minnesota Statutes 1996, section 469.177, 
 13.3   subdivision 4, is amended to read: 
 13.4      Subd. 4.  [PRIOR PLANNED IMPROVEMENTS.] The authority 
 13.5   shall, after diligent search, accompany its request for 
 13.6   certification to the county auditor pursuant to subdivision 1, 
 13.7   or its notice of district enlargement pursuant to section 
 13.8   469.175, subdivision 4, with a listing of all properties that: 
 13.9      (1) are within the tax increment financing district or area 
 13.10  of enlargement for which building permits have been issued; and 
 13.11     (2) during the 18 months immediately preceding approval of 
 13.12  the tax increment financing plan by the municipality pursuant to 
 13.13  section 469.175, subdivision 3, either 
 13.14     (i) a building permit has been issued for the improvement, 
 13.15  or 
 13.16     (ii) a request for a special use permit, a rezoning, or 
 13.17  other land use authorization that is necessary to permit 
 13.18  construction of the improvement has been approved by the 
 13.19  appropriate governmental unit.  The county auditor shall 
 13.20  increase the original net tax capacity of the district by the 
 13.21  net tax capacity of each improvement for which a building permit 
 13.22  was issued or land use authorization was approved. 
 13.23     Sec. 13.  [EFFECTIVE DATE.] 
 13.24     Sections 1, 3, 5, 7, 11, and 12 are effective for districts 
 13.25  for which the requests for certification are made after June 1, 
 13.26  1997. 
 13.27     Section 2 is effective for districts for which the request 
 13.28  for certification was made after July 31, 1979, and is intended 
 13.29  to confirm the intent of the original law. 
 13.30     Sections 4 and 9 are effective for spending of tax 
 13.31  increments authorized or approved after June 1, 1997. 
 13.32     Section 6 is effective for agreements entered into after 
 13.33  June 1, 1997. 
 13.34     Section 8 is effective for tax increment financing 
 13.35  districts that are decertified after June 1, 1997. 
 13.36     Section 10 is effective for tax increment financing 
 14.1   districts for which the request for certification was made after 
 14.2   April 30, 1990, and is intended to confirm the intent of the 
 14.3   original law.