HF 1879

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Columbia Heights; authorizing creation of a tax increment
financing district.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin COLUMBIA HEIGHTS; TAX INCREMENT FINANCING DISTRICT.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Housing revitalization district" means a single tax
increment financing district established by the city of Columbia Heights and the Columbia
Heights Economic Development Authority consisting of all the property included in the
boundaries of tax increment financing district A3/C7.
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new text begin (b) "Home rehabilitation program" means a program to provide grants or loans to
finance costs of rehabilitation of single family and duplex dwellings located anywhere
in the city that are:
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new text begin (1) classified as homestead under Minnesota Statutes, chapter 273; and
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new text begin (2) occupied by persons or families whose income is less than or equal to the income
requirements for qualified mortgage revenue bond projects under section 143(f) of the
Internal Revenue Code.
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new text begin (c) "Home replacement program" means a program to pay eligible replacement
costs associated with removal of substandard housing located anywhere in the city and
the development of replacement housing.
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new text begin (d) "Eligible replacement costs" means acquisition of substandard housing through
voluntary purchase from willing sellers, relocation expenses, demolition, and site
improvements related to construction of replacement housing.
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new text begin (e) "Replacement housing" means residential developments containing fewer than
five units.
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new text begin (f) "Substandard housing" means residential property containing fewer than
five units, whether or not classified as homestead, that is characterized by inadequate
maintenance, dilapidation, physical damage, unsanitary conditions, or abandonment.
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new text begin (g) "Downtown dump remediation" means removal or remediation, as those terms
are defined in Minnesota Statutes, section 469.174, subdivision 18, of the property within
the housing revitalization district described as follows: the South 180 feet of the North
330 feet of Block 4, Walton's Rearrangement of Lots 33 and 34, Block 6, Reservoir Hills,
except the East 165 feet thereof, according to the recorded plat thereof, and situate in
Anoka County, Minnesota; and Block 4, Walton's Rearrangement of Lots 33 and 34, Block
6, Reservoir Hills, excepting therefrom however, the two following described tracts: Tract
1, the North 330 feet thereof; Tract 2, commencing at the southwest corner of Block 4,
Walton's Rearrangement of Lots 33 and 34, Block 6, Reservoir Hills; thence northerly
along the west line of said Block 4, 100 feet; thence easterly parallel with the south line of
said Block 4, 183 feet; thence southerly parallel with the west line of said Block 4, 100
feet to a point within said south boundary line; thence westerly along the south line of
said Block 4, 183 feet to the point of beginning, according to the plat thereof on file or
of record in the office of the County Recorder, Anoka County, Minnesota; and that part
of Block numbered 4, of Walton's Rearrangement of Lots 33 and 34, Block 6, Reservoir
Hills, described as follows: commencing at the southwest corner of Block 4, Walton's
Rearrangement of Lots 33 and 34, Block 6, Reservoir Hills; thence northerly along the
west line of said Block 4, 100 feet; thence easterly parallel with the south line of said
Block 4, 183 feet; thence southerly parallel with the west line of said Block 4, 100 feet to a
point within said south boundary line; thence westerly along the south line of said Block
4, 183 feet to the point of beginning, Anoka County, Minnesota.
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new text begin Subd. 2. new text end

new text begin Establishment of housing revitalization district. new text end

new text begin The city and authority
may establish the housing revitalization district notwithstanding the inclusion of that
property in tax increment financing district A3/C7 at the time of approval of the tax
increment financing plan. To establish the housing revitalization district, the city and
authority shall adopt a tax increment financing plan and otherwise comply with the
requirements of Minnesota Statutes, section 469.175, except that the determinations set
forth in Minnesota Statutes, section 469.175, subdivision 3, paragraph (b), clauses (1)
and (2), item (ii), are not required.
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new text begin Subd. 3. new text end

new text begin Special rules. new text end

new text begin (a) The housing revitalization district is subject to the
provisions of Minnesota Statutes, sections 469.174 to 469.1799, except as otherwise
provided in this act.
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new text begin (b) The original net tax capacity of the housing revitalization district is the same
as the original net tax capacity of the A3/C7 district as of the date of approval of the tax
increment financing plan for the housing revitalization district, subject thereafter to all
adjustments pursuant to Minnesota Statutes, section 469.177, subdivisions 1 and 7, but not
subject to the adjustments under Minnesota Statutes, section 469.177, subdivision 4.
new text end

new text begin (c) For the purposes of Minnesota Statutes, section 469.177, subdivision 1a, the
original local tax rate is the rate in effect for taxes payable in 2010.
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new text begin (d) The city may elect the method of computation under Minnesota Statutes, section
469.177, subdivision 3, paragraph (a) or (b), and all other provisions of Minnesota
Statutes, section 469.177, subdivision 3, apply, except that the first calculation and
payment of tax increment from the housing revitalization district shall be based on the
net capacity assessed in 2009 for taxes payable in 2010.
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new text begin (e) Increments from the housing revitalization district may be expended only to pay
or reimburse the costs of a home rehabilitation program, a home replacement program,
and downtown dump remediation, whether such costs are incurred before or after the
establishment of the district.
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new text begin (f) Minnesota Statutes, section 469.1763, does not apply to the housing revitalization
district.
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new text begin (g) No tax increment from the housing revitalization district shall be paid to the city
or authority after 25 years from the date of receipt by the authority of the first increment in
accordance with paragraph (d).
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new text begin (h) Minnesota Statutes, section 469.176, subdivision 6, does not apply to the housing
revitalization district.
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new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The authority to approve a tax increment financing plan to
establish the housing revitalization district under this act expires on December 31, 2008.
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new text begin Subd. 5. new text end

new text begin Applicability of other laws. new text end

new text begin (a) References in Minnesota Statutes to
tax increment financing districts created and tax increment generated under Minnesota
Statutes, sections 469.174 to 469.1799, include the housing revitalization district subject
to this act.
new text end

new text begin (b) For the purposes of Minnesota Statutes, section 469.1782, this act does not
extend the duration of an existing district or allow establishment of a new district with a
longer duration limit than that permitted by general law.
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Sec. 2. new text begin EFFECTIVE DATE.
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new text begin This act is effective upon compliance by the city of Columbia Heights with
Minnesota Statutes, section 645.021.
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