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HF 2537

as introduced - 87th Legislature (2011 - 2012) Posted on 03/05/2012 10:22am

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

Bill Text Versions

Engrossments
Introduction Posted on 02/27/2012

Current Version - as introduced

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A bill for an act
relating to tax increment financing; extending the time period for the temporary
authority to stimulate construction; amending Minnesota Statutes 2011
Supplement, section 469.176, subdivisions 4c, 4m.

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

Section 1.

Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4c,
is amended to read:


Subd. 4c.

Economic development districts.

(a) Revenue derived from tax
increment from an economic development district may not be used to provide
improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
to developments consisting of buildings and ancillary facilities, if more than 15 percent
of the buildings and facilities (determined on the basis of square footage) are used for a
purpose other than:

(1) the manufacturing or production of tangible personal property, including
processing resulting in the change in condition of the property;

(2) warehousing, storage, and distribution of tangible personal property, excluding
retail sales;

(3) research and development related to the activities listed in clause (1) or (2);

(4) telemarketing if that activity is the exclusive use of the property;

(5) tourism facilities;

(6) qualified border retail facilities; or

(7) space necessary for and related to the activities listed in clauses (1) to (6).

(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
increment from an economic development district may be used to provide improvements,
loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
square feet of any separately owned commercial facility located within the municipal
jurisdiction of a small city, if the revenues derived from increments are spent only to
assist the facility directly or for administrative expenses, the assistance is necessary to
develop the facility, and all of the increments, except those for administrative expenses,
are spent only for activities within the district.

(c) A city is a small city for purposes of this subdivision if the city was a small city
in the year in which the request for certification was made and applies for the rest of
the duration of the district, regardless of whether the city qualifies or ceases to qualify
as a small city.

(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
of section 469.174, subdivision 12, tax increments from an economic development district
may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
assistance in any form to developments consisting of buildings and ancillary facilities, if
all the following conditions are met:

(1) the municipality finds that the project will create or retain jobs in this state,
including construction jobs, and that construction of the project would not have
commenced before deleted text beginJuly 1, 2012deleted text endnew text begin January 1, 2014new text end, without the authority providing
assistance under the provisions of this paragraph;

(2) construction of the project begins no later than deleted text beginJuly 1, 2012deleted text endnew text begin January 1, 2014new text end;

(3) the request for certification of the district is made no later than deleted text beginJune 30, 2012deleted text endnew text begin
December 31, 2013
new text end; and

(4) for development of housing under this paragraph, the construction must begin
before January 1, 2012.

The provisions of this paragraph may not be used to assist housing that is developed
to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law,
if construction of the project begins later than July 1, 2011.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4m, is
amended to read:


Subd. 4m.

Temporary authority to stimulate construction.

(a) Notwithstanding
the restrictions in any other subdivision of this section or any other law to the contrary,
except the requirement to pay bonds to which the increments are pledged and the
provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
more of the following purposes:

(1) to provide improvements, loans, interest rate subsidies, or assistance in any
form to private development consisting of the construction or substantial rehabilitation of
buildings and ancillary facilities, if doing so will create or retain jobs in this state, including
construction jobs, and that the construction commences before deleted text beginJuly 1, 2012deleted text endnew text begin January 1,
2014
new text end, and would not have commenced before that date without the assistance; or

(2) to make an equity or similar investment in a corporation, partnership, or limited
liability company that the authority determines is necessary to make construction of a
development that meets the requirements of clause (1) financially feasible.

(b) The authority may undertake actions under the authority of this subdivision only
after approval by the municipality of a written spending plan that specifically authorizes
the authority to take the actions. The municipality shall approve the spending plan only
after a public hearing after published notice in a newspaper of general circulation in
the municipality at least once, not less than ten days nor more than 30 days prior to the
date of the hearing.

(c) The authority to spend tax increments under this subdivision expires deleted text beginDecember
31, 2012
deleted text endnew text begin June 30, 2014new text end.

(d) For a development consisting of housing, the authority to spend tax increments
under this subdivision expires December 31, 2011, and construction must commence
before July 1, 2011, except the authority to spend tax increments on market rate housing
developments under this subdivision expires July 31, 2012, and construction must
commence before January 1, 2012.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all tax increment financing districts, regardless of when the request for
certification was made.
new text end