HF 3309

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of Richfield; authorizing 
  1.3             establishment of tax increment financing districts 
  1.4             subject to special rules. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [DEFINITIONS.] 
  1.7      Subdivision 1.  [APPLICATION.] For purposes of sections 1 
  1.8   to 4, the terms defined in Minnesota Statutes, section 469.174, 
  1.9   apply to the districts established under section 4, subdivision 
  1.10  1, except as otherwise provided by this section. 
  1.11     Subd. 2.  [AIRPORT IMPACT ZONE.] "Airport impact zone" 
  1.12  means that portion of the project that: 
  1.13     (1) is located within the 60 DNL contour surrounding the 
  1.14  Minneapolis-St. Paul international airport; or 
  1.15     (2) is located within 1,600 feet, a distance representing 
  1.16  the 75db of low frequency noise, of a runway planned or used by 
  1.17  aircraft at the Minneapolis-St. Paul international airport; or 
  1.18     (3) consists of any parcel located wholly or partially 
  1.19  within 500 feet of the outermost boundary of the line described 
  1.20  in clause (1) or (2). 
  1.21     Subd. 3.  [CITY.] "City" means the city of Richfield. 
  1.22     Subd. 4.  [HOUSING ACTIVITIES.] "Housing activities" means, 
  1.23  but is not limited to, rehabilitation, acquisition, demolition, 
  1.24  and financing of new or existing single family or multifamily 
  1.25  housing.  Housing activities need not be located in the district 
  2.1   or project area, but must meet the requirements of the city's 
  2.2   housing plan. 
  2.3      Subd. 5.  [PROJECT.] "Project" means the geographic area of 
  2.4   the city as established in section 2. 
  2.5      Sec. 2.  [ESTABLISHMENT OF PROJECT AREA.] 
  2.6      The governing body of the city may establish a tax 
  2.7   increment financing project area in the city, bounded on the 
  2.8   east by trunk highway No. 77, on the west by Xerxes Avenue, on 
  2.9   the south by interstate highway 494, and on the north by trunk 
  2.10  highway No. 62. 
  2.11     Sec. 3.  [HOUSING DEVELOPMENT ACCOUNT.] 
  2.12     Tax increments to be expended for housing activities under 
  2.13  sections 1 to 4 must be segregated by the authority into a 
  2.14  housing development account which must be maintained as a 
  2.15  separate account on its books and records.  The account may also 
  2.16  receive funds from other public and private sources. 
  2.17     Sec. 4.  [TIF DISTRICT AUTHORITY.] 
  2.18     Subdivision 1.  [AUTHORITY TO ESTABLISH.] The city or the 
  2.19  authority may establish one or more tax increment financing 
  2.20  districts in the project area under the provisions of sections 1 
  2.21  to 4. 
  2.22     Subd. 2.  [EXCEPTIONS FROM GENERAL LAW.] (a) Any tax 
  2.23  increment financing district established under subdivision 1 
  2.24  must conform to the provisions of Minnesota Statutes, sections 
  2.25  469.174 to 469.179, except that the following provisions do not 
  2.26  apply: 
  2.27     (1) with regard to districts in the airport impact zone, 
  2.28  Minnesota Statutes, section 469.176, subdivision 1b, paragraph 
  2.29  (a), clause (5) (duration limit for redevelopment districts); 
  2.30     (2) Minnesota Statutes, section 469.1763, subdivision 2 
  2.31  (expenditures outside of the district limited); and 
  2.32     (3) Minnesota Statutes, section 273.1399 (state aid offset).
  2.33     (b)(1) The governing body of the city may elect to compute 
  2.34  the original net tax capacity for a district within the airport 
  2.35  impact zone as the tax capacity of each parcel minus the product 
  2.36  resulting from multiplying the estimated cost of acquisition, 
  3.1   demolition, and relocation, as applicable for the parcel and as 
  3.2   provided by the authority, by the class rate for the parcel.  
  3.3   The resulting amount may not be less than zero. 
  3.4      (2) The governing body of the city may not exercise the 
  3.5   authority under clause (1) unless the following has occurred 
  3.6   before certification of original net tax capacity is requested: 
  3.7      (i) the metropolitan airports commission has informed the 
  3.8   governing body of the city, in writing, that it has obtained all 
  3.9   the necessary permits and approvals to construct a north-south 
  3.10  runway; and 
  3.11     (ii) the metropolitan council has made a finding, by 
  3.12  resolution, that the project area is in need of noise 
  3.13  mitigation, including measures such as redevelopment activities. 
  3.14     (c) In lieu of the exceptions from general law under 
  3.15  paragraph (a), all districts established under subdivision 1 
  3.16  must meet the requirements of subdivisions 3 to 5. 
  3.17     Subd. 3.  [SPENDING FOR HOUSING REQUIRED.] For each tax 
  3.18  increment financing district established under subdivision 1, at 
  3.19  least 15 percent of the revenues generated from tax increment in 
  3.20  any year must be deposited in the housing development account of 
  3.21  the authority and expended for housing activities according to 
  3.22  the tax increment financing plan. 
  3.23     Subd. 4.  [EXPENDITURES OUTSIDE DISTRICT.] For each tax 
  3.24  increment financing district established under subdivision 1, 
  3.25  all revenues derived from tax increment from the district must 
  3.26  be expended either for: 
  3.27     (1) activities in the district as defined in Minnesota 
  3.28  Statutes, section 469.1763, subdivision 1, paragraph (b); or 
  3.29     (2) housing activities. 
  3.30     Subd. 5.  [DURATION LIMIT.] No tax increment may, in any 
  3.31  event, be paid to the authority for a district created under 
  3.32  subdivision 1, after 20 years from the date of the receipt by 
  3.33  the authority of the first increment from the district. 
  3.34     Sec. 5.  [EFFECTIVE DATE.] 
  3.35     Sections 1 to 4 are effective upon local approval in 
  3.36  compliance with the requirements of Minnesota Statutes, sections 
  4.1   645.021 and 469.1782, and apply to any tax increment financing 
  4.2   district approved by the authority after June 30, 1996.