HF 2171

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

A bill for an act
relating to relating or tax increment financing; providing a plan election for first
year to receive increment; amending Minnesota Statutes 2006, sections 469.175,
subdivision 1; 469.176, subdivision 1.

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

Section 1.

Minnesota Statutes 2006, section 469.175, subdivision 1, is amended to read:

Subdivision 1.

Tax increment financing plan.

new text begin (a) new text end A tax increment financing plan
shall contain:

(1) a statement of objectives of an authority for the improvement of a project;

(2) a statement as to the development program for the project, including the property
within the project, if any, that the authority intends to acquire, identified by parcel number,
identifiable property name, block, or other appropriate means indicating the area in which
the authority intends to acquire properties;

(3) a list of any development activities that the plan proposes to take place within
the project, for which contracts have been entered into at the time of the preparation of
the plan, including the names of the parties to the contract, the activity governed by the
contract, the cost stated in the contract, and the expected date of completion of that activity;

(4) identification or description of the type of any other specific development
reasonably expected to take place within the project, and the date when the development is
likely to occur;

(5) estimates of the following:

(i) cost of the project, including administrative expenses, except that if part of the
cost of the project is paid or financed with increment from the tax increment financing
district, the tax increment financing plan for the district must contain an estimate of the
amount of the cost of the project, including administrative expenses, that will be paid or
financed with tax increments from the district;

(ii) amount of bonded indebtedness to be incurred;

(iii) sources of revenue to finance or otherwise pay public costs;

(iv) the most recent net tax capacity of taxable real property within the tax increment
financing district and within any subdistrict;

(v) the estimated captured net tax capacity of the tax increment financing district
at completion; and

(vi) the duration of the tax increment financing district's and any subdistrict's
existence;

(6) statements of the authority's alternate estimates of the impact of tax increment
financing on the net tax capacities of all taxing jurisdictions in which the tax increment
financing district is located in whole or in part. For purposes of one statement, the
authority shall assume that the estimated captured net tax capacity would be available to
the taxing jurisdictions without creation of the district, and for purposes of the second
statement, the authority shall assume that none of the estimated captured net tax capacity
would be available to the taxing jurisdictions without creation of the district or subdistrict;

(7) identification and description of studies and analyses used to make the
determination set forth in subdivision 3, clause (2); and

(8) identification of all parcels to be included in the district or any subdistrict.

new text begin (b) The authority may specify in the tax increment financing plan the first year
in which it elects to receive increment, up to four years following the year of approval
of the district.
new text end

Sec. 2.

Minnesota Statutes 2006, section 469.176, subdivision 1, is amended to read:

Subdivision 1.

Duration of tax increment financing districts.

(a) Subject to the
limitations contained in subdivisions 1a to 1f, any tax increment financing district as to
which bonds are outstanding, payment for which the tax increment and other revenues
have been pledged, shall remain in existence at least as long as the bonds continue to be
outstanding. The municipality may, at the time of approval of the initial tax increment
financing plan, provide for new text begin one or both of the following:
new text end

new text begin (1) new text end a shorter maximum duration limit than specified in subdivisions 1a to 1f deleted text begin . deleted text end new text begin ; new text end

new text begin (2) an election as provided under section 469.175, subdivision 1, paragraph (b).
new text end

The specified limit applies in place of the otherwise applicable limit, unless the authority
modifies the plan following the procedures under section 469.175, subdivision 4,
paragraph (b).

(b) The tax increment pledged to the payment of the bonds and interest thereon may
be discharged and the tax increment financing district may be terminated if sufficient funds
have been irrevocably deposited in the debt service fund or other escrow account held in
trust for all outstanding bonds to provide for the payment of the bonds at maturity or date
of redemption and interest thereon to the maturity or redemption date.

(c) For bonds issued pursuant to section 469.178, subdivisions 2 and 3, the full
faith and credit and any taxing powers of the municipality or authority are pledged to the
payment of the bonds until the principal of and interest on the bonds has been paid in full.