2007 Minnesota Statutes

469.1764 PRE-1982 DISTRICTS; POOLING RULES.
    Subdivision 1. Scope; application. (a) This section applies to a tax increment financing
district or area added to a district, if the request for certification of the district or the area added to
the district was made after July 31, 1979, and before July 1, 1982.
(b) This section, section 469.1763, subdivision 6, and any special law applying to the district
are the exclusive authority to spend tax increments on activities located outside of the geographic
area of a tax increment financing district that is subject to this section.
(c) This section does not apply to increments from a district that is subject to the provisions
of this section, if:
(1) the district was decertified before the enactment of this section and all increments spent
on activities located outside of the geographic area of the district were repaid and distributed as
excess increments under section 469.176, subdivision 2; or
(2) the use of increments on activities located outside of the geographic area of the district
consists solely of payment of debt service on bonds under section 469.129, subdivision 2, and
any bonds issued to refund bonds issued under that subdivision.
    Subd. 2. State auditor notification. By August 1, 1999, the state auditor shall notify in
writing each authority for which the auditor has records that the authority has a district subject
to this section.
    Subd. 3. Ratification of past spending. The following expenditures of increments on
activities located outside of the geographic area of a district subject to this section are permitted:
(1) expenditures made before the earlier of (i) notification by the state auditor or (ii)
December 31, 1999; and
(2) expenditures to pay preexisting outside district obligations.
    Subd. 4. Decertification required. (a) The provisions of this subdivision apply to any tax
increment financing district subject to this section, if increments from the district were used on
activities located outside of the geographic area of the district.
(b) After December 31, 1999, any tax increments received by the authority from a district
subject to this subdivision may be expended only to pay:
(1) preexisting in-district obligations;
(2) preexisting outside district obligations; and
(3) administrative expenses.
After all preexisting obligations have been paid or defeased, the district must be decertified
and any remaining increments distributed as excess increments under section 469.176, subdivision
2 .
    Subd. 5. Definitions. (a) "Notification by the state auditor" means the receipt by the authority
or the municipality of the final written notification from the state auditor that its expenditures of
increments from the district on activities located outside of the geographic area of the district
were not in compliance with state law.
(b) "Preexisting outside district obligations" means:
(1) bonds secured by increments from a district subject to this section and used to finance
activities outside the geographic area of the district, if the bonds were issued and the pledge of
increment was made before the earlier of (i) notification by the state auditor, or (ii) April 1, 1999;
(2) bonds issued to refund bonds qualifying under clause (1), if the refunding bonds do not
increase the total amount of tax increments required to pay the refunded bonds; and
(3) binding written agreements secured by the increments from the district subject to this
section and used to finance activities outside the geographic area of the district, if the agreement
was entered before the earlier of (i) notification by the state auditor or (ii) May 1, 1999.
(c) "Preexisting in-district obligations" means:
(1) bonds secured by increments from a district subject to this section and not used to finance
activities outside of the geographic area of the district, if the bonds were issued and the pledge of
increments was made before April 1, 1999;
(2) bonds issued to refund bonds qualifying under clause (1), if the refunding bonds do not
increase the total amount of tax increments required to pay the refunded bonds; and
(3) binding written agreements secured by increments from a district subject to this section
and not used to finance activities outside of the geographic area of the district, if the agreements
were entered into and the pledge of increments was made before June 30, 1999.
History: 1999 c 243 art 10 s 4