SF 999

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

A bill for an act
relating to tax increment financing; authorizing the city of Burnsville to establish
districts subject to special rules; repealing Laws 1998, chapter 389, article 11,
section 18.

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

Section 1. new text begin BURNSVILLE; NORTHWEST QUADRANT TAX INCREMENT
FINANCING.
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 words and
phrases defined have the meanings given them in this subdivision.
new text end

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

new text begin (c) "Project area" means the area in the city bounded on the south, southeast, and
southwest by the southerly right-of-way line of Minnesota Trunk Highway 13; on the east
by the easterly right-of-way line of Interstate Highway I-35W; on the north and northwest
by the Minnesota River; and on the west by the westerly corporate limits of the city,
together with a single parcel to the east of said Interstate Highway I-35W described as
the North 1370 feet of the West 1075 feet of the NW Quarter of Section 34 Township 27
Range 24 in the city of Burnsville, Dakota County, except the North 50 feet thereof;
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) "Soils 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:
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new text begin (1) unusual terrain or soil deficiencies for 80 percent of the acreage in the district
require substantial filling, grading, or other physical preparation for use; and
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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, soils condition district, or a soils deficiency district
established by the city or a development authority of the city in the project area.
new text end

new text begin (b) The five-year rule under Minnesota Statutes, section 469.1763, subdivisions 3
and 4, is extended to ten years for any district.
new text end

new text begin (c) The limitations on spending tax increment outside of the district under Minnesota
Statutes, section 469.1763, subdivision 2, do not apply, but increments may only be
expended on improvements or activities within the project area.
new text end

new text begin (d) For a soil deficiency district:
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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
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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 clause (ii) will occur;
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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 (e) 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
(d) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j.
new text end

new text begin (f) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires on December 31, 2027.
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.
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Sec. 2. new text begin REPEALER.
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new text begin Laws 1998, chapter 389, article 11, section 18, new text end new text begin is repealed.
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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. The balance of tax increments derived from
tax increment financing district no. 2-1 as of the effective date of this section must be
returned to the county for distribution in accordance with Minnesota Statutes, section
469.176, subdivision 2.
new text end