1.1                          A bill for an act 
  1.2             relating to taxation; providing for the establishment 
  1.3             of tax increment financing districts in the city of 
  1.4             Lakefield; providing that the districts are exempt 
  1.5             from the state aid offset; defining regional tax 
  1.6             capacity. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [CITY OF LAKEFIELD; TAX INCREMENT FINANCING 
  1.9   DISTRICTS.] 
  1.10     Subdivision 1.  [REDEVELOPMENT DISTRICT.] (a) The governing 
  1.11  body of the city of Lakefield may establish a tax increment 
  1.12  financing district that is a redevelopment district as defined 
  1.13  in Minnesota Statutes, section 469.174, subdivision 10, for the 
  1.14  purpose of developing the property previously used as the 
  1.15  municipal hospital.  The district is subject to Minnesota 
  1.16  Statutes, sections 469.174 to 469.179, except that the 
  1.17  provisions of Minnesota Statutes, section 273.1399, do not apply.
  1.18     (b) Notwithstanding Minnesota Statutes, section 469.177, 
  1.19  subdivision 1, paragraph (d), for the district established under 
  1.20  this subdivision, the original tax capacity of the previously 
  1.21  tax exempt property comprising the municipal hospital equals the 
  1.22  value of the land only, as determined by the assessor at the 
  1.23  time of the transfer. 
  1.24     Subd. 2.  [HOUSING DISTRICT.] The governing body of the 
  1.25  city of Lakefield may also establish a tax increment financing 
  1.26  district that is a housing district as defined in Minnesota 
  2.1   Statutes, section 469.174, subdivision 11.  The district is 
  2.2   subject to Minnesota Statutes, sections 469.174 to 469.179, 
  2.3   except that the provisions of Minnesota Statutes, section 
  2.4   273.1399, do not apply. 
  2.5      Sec. 2.  [EFFECTIVE DATE.] 
  2.6      Section 1 is effective upon compliance by the governing 
  2.7   body of the city of Lakefield with Minnesota Statutes, section 
  2.8   645.021, subdivision 3.