SF 1325

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing pilot 
  1.3             projects for the creation of housing replacement 
  1.4             projects in the cities of Crystal and Fridley. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITIES OF CRYSTAL AND FRIDLEY; HOUSING 
  1.7   REPLACEMENT DISTRICTS; DEFINITIONS.] 
  1.8      Subdivision 1.  [CAPTURED NET TAX CAPACITY.] "Captured net 
  1.9   tax capacity" means the amount by which the current net tax 
  1.10  capacity of the improvements to real property in a housing 
  1.11  replacement district exceeds the original net tax capacity of 
  1.12  improvements to property in the district, including the value of 
  1.13  property normally taxable as personal property by reason of its 
  1.14  location on or over property owned by a tax-exempt entity.  No 
  1.15  amount of net tax capacity attributable to land is included in 
  1.16  captured net tax capacity. 
  1.17     Subd. 2.  [ORIGINAL NET TAX CAPACITY.] "Original net tax 
  1.18  capacity" means the tax capacity of all taxable real property 
  1.19  within a housing replacement district as certified by the 
  1.20  commissioner of revenue for the previous assessment year, 
  1.21  provided that the request by the authority for certification of 
  1.22  a new housing replacement district has been made to the county 
  1.23  auditor by June 30.  The original net tax capacity of housing 
  1.24  replacement districts for which requests are filed after June 30 
  1.25  has an original net tax capacity based on the current assessment 
  2.1   year.  In any case, the original net tax capacity must be 
  2.2   determined together with subsequent adjustments as set forth in 
  2.3   Minnesota Statutes, section 469.177, subdivisions 1 and 4.  In 
  2.4   determining the original net tax capacity, the net tax capacity 
  2.5   of real property exempt from taxation at the time of the request 
  2.6   shall be zero, except for real property which is tax exempt by 
  2.7   reason of public ownership by the requesting authority and which 
  2.8   has been publicly owned for less than one year prior to the date 
  2.9   of the request for certification, in which event the net tax 
  2.10  capacity of the property shall be the net tax capacity as most 
  2.11  recently determined by the commissioner of revenue. 
  2.12     Subd. 3.  [PARCEL.] "Parcel" means a tract or plat of land 
  2.13  established prior to the certification of the district as a 
  2.14  single unit for purposes of assessment. 
  2.15     Subd. 4.  [AUTHORITY.] For housing replacement projects in 
  2.16  the city of Crystal, "authority" means the Crystal economic 
  2.17  development authority.  For housing development projects in the 
  2.18  city of Fridley, "authority" means the housing and redevelopment 
  2.19  authority in and for the city of Fridley or a successor in 
  2.20  interest. 
  2.21     Sec. 2.  [ESTABLISHMENT OF HOUSING REPLACEMENT DISTRICTS.] 
  2.22     Subdivision 1.  [CREATION OF PROJECTS.] (a) An authority 
  2.23  may create a housing replacement project under sections 1 to 4, 
  2.24  as provided in this section. 
  2.25     (b) The authority may designate up to 50 parcels in the 
  2.26  city to be included in a housing replacement district over the 
  2.27  life of the district.  No more than ten parcels may be included 
  2.28  in the original district, with up to seven additional parcels 
  2.29  added to the district in each of the following nine years. 
  2.30     (c) The city in which the authority is located must pay at 
  2.31  least 25 percent of the project costs from its general fund, 
  2.32  property tax levy, or other unrestricted money, not including 
  2.33  tax increments. 
  2.34     (d) The project must have as it sole object the acquisition 
  2.35  of parcels for the purpose of preparing the site to be sold for 
  2.36  market rate housing.  As used in this section, "market rate 
  3.1   housing" means housing that has a market value that does not 
  3.2   exceed .. percent of the average market value of single-family 
  3.3   housing in that municipality. 
  3.4      Subd. 2.  [HOUSING REPLACEMENT DISTRICT PLAN.] To establish 
  3.5   a housing replacement district under sections 1 to 4, an 
  3.6   authority shall develop a housing replacement project plan which 
  3.7   shall contain: 
  3.8      (1) a statement of the objectives and a description of the 
  3.9   projects proposed by the authority for the housing replacement 
  3.10  district; 
  3.11     (2) a statement of the housing replacement project plan, 
  3.12  demonstrating the coordination of that plan with the city's 
  3.13  comprehensive plan; 
  3.14     (3) estimates of the following: 
  3.15     (i) cost of the program, including administrative expenses; 
  3.16     (ii) sources of revenue to finance or otherwise pay public 
  3.17  costs; 
  3.18     (iii) the most recent net tax capacity of taxable real 
  3.19  property within the housing replacement district; and 
  3.20     (iv) the estimated captured net tax capacity of the housing 
  3.21  replacement district at completion; 
  3.22     (4) statements of the authority's alternate estimates of 
  3.23  the impact of the housing replacement district on the net tax 
  3.24  capacities of all taxing jurisdictions in which the district is 
  3.25  located in whole or in part.  For purposes of one statement, the 
  3.26  municipality shall assume that the estimated captured net tax 
  3.27  capacity would be available to the taxing jurisdictions without 
  3.28  creation of the district, and for purposes of the second 
  3.29  statement, the county shall assume that none of the estimated 
  3.30  captured net tax capacity would be available to the taxing 
  3.31  jurisdictions without creation of the district; and 
  3.32     (5) identification of all parcels to be included in the 
  3.33  zone, to the extent known at the time the plan is prepared.  At 
  3.34  a minimum, the parcels that will be included in the district 
  3.35  during its first year must be identified in the original plan.  
  3.36  If parcels for subsequent years are not specifically identified, 
  4.1   the plan must include the criteria that will be used by the 
  4.2   authority to select parcels to be included in the later years. 
  4.3      Subd 3.  [PROCEDURE.] The provisions of Minnesota Statutes, 
  4.4   section 469.175, subdivisions 3, 4, 5, and 6 apply to the 
  4.5   establishment and operation of the districts created under 
  4.6   sections 1 to 4, except as follows: 
  4.7      (1) the determination specified in Minnesota Statutes, 
  4.8   section 469.175, subdivision 3, clause (1), is not required; and 
  4.9      (2) addition of parcels not identified in the original plan 
  4.10  is not treated as a modification of a plan requiring an approval 
  4.11  process provided that the parcels added are consistent with the 
  4.12  criteria described in subdivision 2, clause (5). 
  4.13     Sec. 3.  [LIMITATIONS.] 
  4.14     Subdivision 1.  [DURATION LIMITS.] No tax increment shall 
  4.15  be paid to the authority on each parcel in a housing replacement 
  4.16  district after 20 years from date of receipt by the county of 
  4.17  the first tax increment from that parcel. 
  4.18     Subd. 2.  [LIMITATION ON USE OF TAX INCREMENTS.] All 
  4.19  revenues derived from tax increments shall be used in accordance 
  4.20  with the tax increment financing plan.  The revenues shall be 
  4.21  used solely to pay the costs of site acquisition, demolition of 
  4.22  existing structures, site preparation, and pollution abatement 
  4.23  on parcels identified in the plan, as well as public 
  4.24  improvements and administrative costs directly related to those 
  4.25  parcels. 
  4.26     Sec. 4.  [APPLICATION OF OTHER LAWS.] 
  4.27     Subdivision 1.  [COMPUTATION OF TAX INCREMENT.] The 
  4.28  provisions of Minnesota Statutes, section 469.177, apply to the 
  4.29  computation of tax increment for the housing replacement 
  4.30  districts created under sections 1 to 4. 
  4.31     Subd. 2.  [OTHER PROVISIONS.] References in Minnesota 
  4.32  Statutes to tax increment financing districts created and tax 
  4.33  increments generated under Minnesota Statutes, sections 469.174 
  4.34  to 469.179, provided that Minnesota Statutes, sections 469.174 
  4.35  to 469.179 apply only to the extent specified in sections 1 to 
  4.36  4, shall include housing replacement districts and tax 
  5.1   increments subject to sections 1 to 4. 
  5.2      Sec. 5.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
  5.3      Sections 1 to 4 are effective, for the city of Crystal, 
  5.4   upon compliance by the Crystal city council with Minnesota 
  5.5   Statutes, section 645.021, subdivision 3, and, for the city of 
  5.6   Fridley, upon compliance by the Fridley city council with 
  5.7   Minnesota Statutes, section 645.021, subdivision 3.