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HF 2583

as introduced - 87th Legislature (2011 - 2012) Posted on 02/29/2012 01:37pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/29/2012

Current Version - as introduced

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A bill for an act
relating to taxation; authorizing the city of Maple Grove to create a soil
deficiency tax increment financing district subject to special rules.

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

Section 1. new text begin CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given to them.
new text end

new text begin (b) "City" means the city of Maple Grove.
new text end

new text begin (c) "Project area" means the area in the city commencing at a point 130 feet East and
120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township
119, Range 22, Hennepin County, said point being on the easterly right-of-way line of
Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane
a distance of 900 feet; thence easterly to the east line of Section 23, 1,030 feet North
from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East
a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence
northerly to a point on the northerly right-of-way line of 81st Avenue North, 650 feet
westerly measured at right angles, from the east line of the Northwest Quarter of Section
24; thence North 13 degrees West a distance of 795 feet; thence West to the west line of
the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees
West to the south line of the Northwest Quarter of the Northwest Quarter of Section 24;
thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of
said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition;
thence South along the east line of said Outlot A and its southerly extension to the south
right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the
south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the
Northeast Quarter of Section 24; thence South along said east line to the north line of the
South Half of the Northeast Quarter of Section 24; thence East along said north line to
the westerly right-of-way line of Jefferson Highway North; thence southerly along the
westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence
continuing South along the west right-of-way line of Pilgrim Lane North to the westerly
extension of the north line of Outlot A, Park North Fourth Addition; thence easterly
along the north line of Outlot A, Park North Fourth Addition to the northeast corner
of said Outlot A; thence southerly along the east line of said Outlot A to the southeast
corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park
North Fourth Addition to the westerly right-of-way line of State Highway 169; thence
southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way
line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its
intersection with the southerly extension of the easterly right-of-way line of Zachary Lane
North; thence northerly along the easterly right-of-way line of Zachary Lane North and
its northerly extension to the north right-of-way line of CSAH 130; thence westerly,
southerly, northerly, southwesterly, and northwesterly to the point of beginning and there
terminating, provided that the project area includes the rights-of-way for all present and
future highway interchanges abutting the area described in this paragraph.
new text end

new text begin (d) "Soil deficiency district" means a type of tax increment financing district
consisting of a portion of the project area in which the city finds by resolution that the
following conditions exist:
new text end

new text begin (1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
new text end

new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding
costs directly related to roads as defined in Minnesota Statutes, section 160.01, and
local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1,
clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land
before completion of the preparation.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin (a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment
district, renewal and renovation district, soil condition district, or soil deficiency district
established by the city or a development authority of the city in the project area.
new text end

new text begin (b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting
of at least 80 percent of the acreage of the project area, excluding street and railroad
rights-of-way, are characterized by one or more of the following conditions:
new text end

new text begin (1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;
new text end

new text begin (2) soils or terrain that requires substantial filling in order to permit the development
of commercial buildings or infrastructure;
new text end

new text begin (3) landfills, dumps, or similar deposits of municipal or private waste;
new text end

new text begin (4) quarries or similar resource extraction sites;
new text end

new text begin (5) floodway; and
new text end

new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section
469.174, subdivision 10.
new text end

new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
the relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area
of the parcel.
new text end

new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision
3, is extended to ten years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.
new text end

new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue
derived from tax increments paid by properties in any district, measured over the life of
the district, may be expended on activities outside the district but within the project area.
new text end

new text begin (f) For a soil deficiency district:
new text end

new text begin (1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and
new text end

new text begin (2) except as otherwise provided in this subdivision, increments may be used only to:
new text end

new text begin (i) acquire parcels on which the improvements described in item (ii) will occur;
new text end

new text begin (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
additional cost of installing public improvements directly caused by the deficiencies; and
new text end

new text begin (iii) pay for the administrative expenses of the authority allocable to the district.
new text end

new text begin (g) Increments spent for any infrastructure costs, whether inside a district or outside
a district but within the project area, are deemed to satisfy the requirements of paragraph
(f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j.
new text end

new text begin (h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires December 31, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance with Minnesota
Statutes, section 645.021, subdivision 3.
new text end