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SF 3498

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2022 08:21am

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; authorizing the city of Shakopee to
establish a tax increment financing district subject to special rules.

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

Section 1. new text beginCITY OF SHAKOPEE; TAX INCREMENT FINANCING DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

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

new text begin (c) "Project area" means the following parcels, identified by parcel identification number:
279160102, 279160110, 279170020, and 279160120.
new text end

new text begin (d) "Soil 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:
new text end

new text begin (1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
new text end

new text begin (2) the estimated cost of the physical preparation under clause (1), 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, other
than clauses (8) to (10), 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, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area. The city, or a
development authority acting on its behalf, may establish one or more soil deficiency districts
within the project area.
new text end

new text begin (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 70 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:
new text end

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

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

new text begin (3) landfills, dumps, or similar deposits of municipal or private waste;
new text end

new text begin (4) quarries or similar resource extraction sites;
new text end

new text begin (5) floodways; and
new text end

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

new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 60 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.
new text end

new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years for any district, and the period under Minnesota Statutes, section
469.1763, subdivision 4, is extended to 11 years.
new text end

new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, 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.
new text end

new text begin (f) For a soil deficiency district:
new text end

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
new text end

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 item (ii) will occur;
new text end

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 (g) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires December 31, 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Shakopee and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end