SF 1467

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing the 
  1.3             city of Minneapolis to establish a housing transition 
  1.4             district and providing the conditions thereof. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [DEFINITIONS.] 
  1.7      Subdivision 1.  [AUTHORITY.] "Authority" or "authorities" 
  1.8   means the Minneapolis public housing authority and the 
  1.9   Minneapolis community development agency if and to the extent 
  1.10  that the governing body has delegated to either the powers and 
  1.11  duties hereunder pursuant to section 2, subdivision 4, paragraph 
  1.12  (b). 
  1.13     Subd. 2.  [CAPTURED NET TAX CAPACITY.] "Captured net tax 
  1.14  capacity" means the amount by which the current net tax capacity 
  1.15  of the housing transition district exceeds the original net tax 
  1.16  capacity, including the value of property normally taxable as 
  1.17  personal property by reason of its location on or over property 
  1.18  owned by a tax exempt entity. 
  1.19     Subd. 3.  [CITY.] "City" means the city of Minneapolis, 
  1.20  Minnesota. 
  1.21     Subd. 4.  [CONSENT DECREE.] "Consent decree" means the 
  1.22  order of the United States District Court issued in connection 
  1.23  with Hollman et. al. vs. Cisneros et. al., United States 
  1.24  District Court, Civil Case 4-92-712, as may be amended from time 
  1.25  to time. 
  2.1      Subd. 5.  [COUNTY AUDITOR.] "County auditor" means the 
  2.2   county auditor of Hennepin county, Minnesota. 
  2.3      Subd. 6.  [GOVERNING BODY.] "Governing body" means the city 
  2.4   council of the city. 
  2.5      Subd. 7.  [HOUSING TRANSITION DISTRICT; DISTRICT.] "Housing 
  2.6   transition district" or "district" means a geographic area 
  2.7   within the city designated by the governing body containing or 
  2.8   which contained public housing structures scheduled for 
  2.9   demolition or demolished in accordance with the terms of the 
  2.10  consent decree. 
  2.11     Subd. 8.  [NONTAXABLE PARCEL.] "Nontaxable parcel" means a 
  2.12  parcel to be included within the housing transition district 
  2.13  which at the time of certification is not subject to property 
  2.14  taxation by reason of public ownership. 
  2.15     Subd. 9.  [ORIGINAL NET TAX CAPACITY.] (a) With respect to 
  2.16  nontaxable parcels within the district, "original net tax 
  2.17  capacity" means zero. 
  2.18     (b) With respect to taxable parcels within the district, 
  2.19  "original net tax capacity" means the net tax capacity of such 
  2.20  parcels as certified by the commissioner of revenue for the 
  2.21  appropriate assessment year.  When taxable parcels have been 
  2.22  assigned an original net tax capacity by the county auditor 
  2.23  pursuant to this paragraph, and structures upon the parcel are 
  2.24  thereafter demolished, the original net tax capacity of such 
  2.25  parcel must be reduced to the net tax capacity of the land only 
  2.26  as certified by the commissioner of revenue for the appropriate 
  2.27  assessment year.  For purposes of this subdivision, the 
  2.28  appropriate assessment year is the previous assessment year, 
  2.29  provided that a request by the authority for certification has 
  2.30  been made to the county auditor by June 30.  If the request for 
  2.31  certification is filed after June 30, the appropriate assessment 
  2.32  year is the current assessment year. 
  2.33     Subd. 10.  [PARCEL.] "Parcel" means a tract or plat of land 
  2.34  established prior to the certification of the district as a 
  2.35  single unit for purposes of assessment. 
  2.36     Subd. 11.  [PREEXISTING DISTRICT.] "Preexisting district" 
  3.1   means any tax increment district within which is located a 
  3.2   parcel proposed to be included within the housing transition 
  3.3   district. 
  3.4      Subd. 12.  [TAXABLE PARCEL.] "Taxable parcel" means a 
  3.5   parcel to be included within the housing transition district 
  3.6   which is subject to property taxation at the time of 
  3.7   certification. 
  3.8      Sec. 2.  [ESTABLISHMENT OF HOUSING TRANSITION DISTRICT.] 
  3.9      Subdivision 1.  [CREATION.] The governing body may 
  3.10  establish a housing transition district within the city.  The 
  3.11  parcels included within the district need not be contiguous but 
  3.12  must all be designated and included at the time the district is 
  3.13  initially established.  Parcels must not be added to the 
  3.14  district after its initial certification. 
  3.15     Subd. 2.  [TAX INCREMENT.] (a) Upon request of the 
  3.16  authority, the county auditor shall certify the original net tax 
  3.17  capacity of the district and shall certify in each year 
  3.18  thereafter the amount by which the original net tax capacity 
  3.19  increases as a result of the conditions described in Minnesota 
  3.20  Statutes, section 469.177, subdivision 4, or decreases as a 
  3.21  result of the conditions described in Minnesota Statutes, 
  3.22  section 469.177, subdivision 1, paragraph (g), or section 1, 
  3.23  subdivision 9, paragraph (b).  No other changes shall be made in 
  3.24  original net tax capacity once certified by the county auditor. 
  3.25     (b) The provisions of Minnesota Statutes, section 469.177, 
  3.26  subdivisions 1a and 3 to 10, apply to the computation of tax 
  3.27  increment for the housing transition district created under 
  3.28  sections 1 to 3. 
  3.29     (c) If an authority request for certification includes 
  3.30  nontaxable parcels then within a preexisting district, the 
  3.31  county auditor shall remove such parcels from the preexisting 
  3.32  district.  If an authority request for certification includes 
  3.33  taxable parcels then within a preexisting district, the county 
  3.34  auditor shall allocate all taxes derived from the captured net 
  3.35  tax capacity attributable thereto to the preexisting district 
  3.36  and shall not make the original net tax capacity adjustments 
  4.1   described in section 1, subdivision 9, paragraph (b). 
  4.2      Subd. 3.  [HOUSING TRANSITION DISTRICT PLAN.] To establish 
  4.3   a housing transition district, the governing body shall adopt a 
  4.4   housing transition district plan which constitutes a tax 
  4.5   increment financing plan, as used in those provisions of 
  4.6   Minnesota Statutes, sections 469.174 to 469.1781, made 
  4.7   applicable by section 4, and contains the following: 
  4.8      (1) a general description of the plans for development of 
  4.9   the district; 
  4.10     (2) a description of the parcels to be included in the 
  4.11  district, including such information regarding each as shall 
  4.12  establish that the district meets the conditions described in 
  4.13  section 1, subdivision 7; 
  4.14     (3) the most recent net tax capacity of each parcel 
  4.15  included in the district; 
  4.16     (4) a budget containing estimated tax increment collections 
  4.17  and expenditures as authorized or permitted by sections 1 to 3; 
  4.18     (5) estimates of the sources of revenue, public and 
  4.19  private, other than tax increment to pay estimated or budgeted 
  4.20  costs; 
  4.21     (6) statements of the alternate estimated impacts of the 
  4.22  housing transition district on the net tax capacities of all 
  4.23  taxing jurisdictions in which the housing transition district is 
  4.24  located in whole or in part.  For purposes of one statement, the 
  4.25  statement shall assume that the estimated captured net tax 
  4.26  capacity would be available to the taxing jurisdictions without 
  4.27  creation of the housing transition district, and for purposes of 
  4.28  the second statement, it shall be assumed that none of the 
  4.29  estimated captured net tax capacity would be available to the 
  4.30  taxing jurisdictions without creation of the housing transition 
  4.31  district. 
  4.32     Subd. 4.  [PROCEDURE.] (a) The provisions of Minnesota 
  4.33  Statutes, section 469.175, subdivisions 3, 5, 6, and 6a, apply 
  4.34  to the establishment and operation of the housing transition 
  4.35  district created under sections 1 to 3, except the 
  4.36  determinations required by Minnesota Statutes, section 469.175, 
  5.1   subdivision 3, clauses (1) and (2), are not required. 
  5.2      (b) Upon approval of the housing transition district plan, 
  5.3   the governing body shall delegate to one or both of the 
  5.4   authorities such powers and duties regarding the implementation 
  5.5   and administration of the housing transition district as it 
  5.6   shall determine appropriate. 
  5.7      Sec. 3.  [LIMITATIONS.] 
  5.8      Subdivision 1.  [DURATION.] Tax increment generated by the 
  5.9   district shall cease to be paid to the authority after the 
  5.10  expiration of 20 years from the receipt by the authority of the 
  5.11  first tax increment from the district. 
  5.12     Subd. 2.  [USE.] (a) All tax increment received by the 
  5.13  authority from the district shall be used in accordance with the 
  5.14  housing transition district plan. 
  5.15     (b) Tax increment may be used to pay the costs of: 
  5.16     (1) acquiring title to or an ownership interest in any 
  5.17  property within the district; 
  5.18     (2) relocating owners of or tenants in any property within 
  5.19  the district; 
  5.20     (3) demolishing all or a part of any structures or other 
  5.21  improvements within the district; 
  5.22     (4) site preparation, soil correction, and infrastructure 
  5.23  improvements within the district; 
  5.24     (5) rehabilitating or constructing any housing structures 
  5.25  or other improvements within the district; 
  5.26     (6) constructing public improvements associated with 
  5.27  development within the district; 
  5.28     (7) making loans or grants to public or private entities in 
  5.29  order to facilitate development within the district; and 
  5.30     (8) administering the creation and operation of the 
  5.31  district or the implementation of the consent decree, including 
  5.32  reimbursement for costs previously incurred or advanced and not 
  5.33  reimbursed. 
  5.34     (c) The authority may pay the costs authorized by this 
  5.35  subdivision, directly, through the issuance and sale of 
  5.36  obligations pursuant to Minnesota Statutes, section 469.178, by 
  6.1   means of loans or grants to the current or future owners of 
  6.2   property within the district, or through the exercise of any 
  6.3   authority contained in Minnesota Statutes, sections 469.001 to 
  6.4   469.047. 
  6.5      Sec. 4.  [APPLICABILITY OF OTHER LAWS.] 
  6.6      Minnesota Statutes, section 273.1399, does not apply to the 
  6.7   housing transition district or tax increment generated pursuant 
  6.8   to sections 1 to 3.  Minnesota Statutes, sections 469.174 to 
  6.9   469.179, shall apply to the housing transition district or tax 
  6.10  increment generated pursuant to sections 1 to 3 only to the 
  6.11  extent specified in sections 1 to 3.  The housing transition 
  6.12  district shall not have a longer duration than permitted by 
  6.13  general law for purposes of Minnesota Statutes, section 469.1782.
  6.14     Sec. 5.  [EFFECTIVE DATE.] 
  6.15     Sections 1 to 4 are effective on the day following final 
  6.16  enactment and upon compliance by the governing body with 
  6.17  Minnesota Statutes, section 645.021, subdivision 3.