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Minnesota Legislature

Office of the Revisor of Statutes

SF 2650

as introduced - 89th Legislature (2015 - 2016) Posted on 03/15/2016 09:57am

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

Current Version - as introduced

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A bill for an act
relating to taxation; tax increment financing; modifying tax increment financing
authority for the city of Burnsville; amending Laws 2008, chapter 154, article
9, section 21, subdivision 2.


Section 1.

Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to

Subd. 2.

Special rules.

(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, new text begineconomic development district, new text endsoil condition district,
or a soil deficiency district established by the city or a development authority of the city
in the project area.

(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 right of
way) are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;

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

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

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

(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to
be 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
deemed to be characterized by substandard buildings if the buildings occupy at least 30
percent of the area of the parcel.

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

(e) Notwithstanding anything to the contrary in 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.

(f) For a soil deficiency district:

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

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

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

(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

(iii) pay for the administrative expenses of the authority allocable to the district.

(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 4bnew text begin, 4c,new text end and 4j.

(h) Increments from any district may not be used to pay the costs of landfill closure or
public infrastructure located on the following parcels within the plat known as Burnsville
Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.

(i) new text beginThe four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is
extended to nine years.
new text end

new text begin (j) The city may specify in the tax increment financing plan for any district the first
year in which it elects to receive increment, which may be up to eight years following
approval of the district.
new text end

new text begin (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph
(c), the city may waive any increment received in 2016 and, if so, it shall not be used in
determining the duration limit for any district created under this section.
new text end

new text begin (l) new text endThe authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires on deleted text beginDecember 31, 2018deleted text endnew text begin March 20, 2023new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
section 645.021.
new text end