SF 3745

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the city of Minneapolis; authorizing the city to establish a homeless
assistance tax increment district; providing the terms for creation and operation
of the district.

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

Section 1. new text begin CITY OF MINNEAPOLIS; HOMELESS ASSISTANCE TAX
INCREMENT DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "City" means the city of Minneapolis.
new text end

new text begin (b) "Homeless assistance tax increment district" means a contiguous area of the
city that:
new text end

new text begin (1) is no larger than six acres;
new text end

new text begin (2) is located within the boundaries of a city municipal development district; and
new text end

new text begin (3) contains at least two shelters for homeless persons that have been owned or
operated by nonprofit corporations that (i) are qualified charitable organizations under
section 501(c)(3) of the United States Internal Revenue Code, (ii) have operated such
homeless facilities within the district for at least five years, and (iii) have been recipients
of emergency services grants under Minnesota Statutes, section 256E.36.
new text end

new text begin Subd. 2. new text end

new text begin Establishment of tax increment district. new text end

new text begin The city may create one
homeless assistance tax increment district. To establish the homeless assistance tax
increment district, the city shall adopt a homeless assistance tax increment plan and
otherwise comply with the requirements of Minnesota Statutes, section 469.175, except
that the determinations required in Minnesota Statutes, section 469.175, subdivision 3,
paragraph (b), clauses (1) and (2), items (i) and (ii), are not required.
new text end

new text begin Subd. 3. new text end

new text begin Application of tax increment law. new text end

new text begin Minnesota Statutes, sections 469.174
to 469.179, shall apply to the administration of the district, except:
new text end

new text begin (1) as this section provides otherwise; and
new text end

new text begin (2) with respect to the portion of the increment to be expended for homeless shelter
and services pursuant to subdivision 5, paragraph (b):
new text end

new text begin (i) the use for which tax increment that may be expended is as provided by
subdivision 5; and
new text end

new text begin (ii) Minnesota Statutes, sections 469.1761 and 469.1763, do not apply.
new text end

new text begin Subd. 4. new text end

new text begin Duration limitation. new text end

new text begin No tax increment generated by the district shall
be paid to the city after the expiration of 25 years from the receipt by the city of the
first increment from that district.
new text end

new text begin Subd. 5. new text end

new text begin Limitations on use of increment. new text end

new text begin (a) All increment received by the city
from the district shall be used in accordance with the homeless assistance tax increment
district plan.
new text end

new text begin (b) No less than 40 percent of the increment, after deduction of allowable
administrative expenses under Minnesota Statutes, section 469.176, subdivision 3, shall
be used to provide emergency shelter and services for homeless persons within and
outside the district.
new text end

new text begin (c) The remainder of the tax increment derived from the district shall be used for
purposes allowed under Minnesota Statutes, section 469.176, subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Applicability of other laws. new text end

new text begin References in Minnesota Statutes to tax
increment financing districts created and tax increment generated under Minnesota
Statutes, sections 469.174 to 469.179, include the homeless assistance district and tax
increment subject to this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of
Minneapolis with Minnesota Statutes, section 645.021.
new text end