2007 Minnesota Statutes

469.042 AGREEMENT ON TAX INCREMENTS, EQUIVALENTS; BOND PLEDGE.
    Subdivision 1. General. Any city or other state public body within the limits of which a
project of an authority is wholly or partially located may agree with the authority with respect to
payment by the authority of sums in lieu of taxes for any year or period of years in accordance
with the provisions of section 469.040, but for no longer than the period of tax exemption
provided for under that section. If property owned by the authority in a redevelopment project area
is leased or otherwise made available by the authority to a private individual, firm, or corporation
which previously owned the same or other property within the area, not for development in
connection with the project but for temporary use pending relocation of the former owner's
residence or business, the authority may agree to payment of sums in lieu of taxes for any year
or period of temporary use. The payments shall not exceed the amount of the annual rentals or
other payments it receives for the use. During the use the property and the authority shall be
exempt from all taxes and special assessments as provided in section 469.040, and the provisions
of section 272.01, subdivision 2 and of section 273.19 shall not apply to the property or to that
use. In connection with any redevelopment project, an authority may make further agreements
respecting taxes as provided below.
    Subd. 2. Original net tax capacity. Upon or after approval of a redevelopment project of
any housing and redevelopment authority under section 469.028, the auditor of the county in
which it is situated shall upon request of the authority certify the net tax capacity of all taxable
real property within the project area as then most recently determined, which is referred to in
this section as the "original net tax capacity." The auditor shall certify to the authority each year
thereafter the amount by which the original net tax capacity has increased or decreased, and the
proportion which any such increase bears to the total net tax capacity of the real property for
that year or the proportion which any such decrease bears to the original net tax capacity. This
subdivision and subdivision 3 shall not apply to any redevelopment project, certification of which
is requested subsequent to August 1, 1979.
    Subd. 3. Tax increments. In each subsequent year the county auditor shall include no more
than the original net tax capacity of the real property in the net tax capacity upon which the
auditor computes the local tax rates of all taxes levied by the state, the county, the city or town,
the school district and every other taxing district in which the project area is situated. The auditor
shall extend all local tax rates so determined against the entire net tax capacity of the real property
for that year. In each year for which the net tax capacity exceeds the original net tax capacity,
the county treasurer shall remit to the authority, instead of the taxing districts, that proportion of
all taxes paid that year on the real property in the project area which the excess net tax capacity
bears to the total net tax capacity. The amount so remitted each year is referred to in this section
as the "tax increment" for that year. Tax increments received with respect to any redevelopment
project shall be segregated by the authority receiving them in a special account on its official
books and records until the public redevelopment cost of the project, including interest on all
money borrowed therefor, has been fully paid, and the city or other public body in which the
project is situated has been fully reimbursed from the tax increments or revenues of the project
for any principal and interest on general obligation bonds which it has issued for the project and
has paid from taxes levied on other property within its corporate limits. The payment shall be
reported to the county auditor, who shall thereafter include the entire net tax capacity of the
project area in the net tax capacities upon which local tax rates are computed and extended
and taxes are remitted to all taxing districts.
    Subd. 4. Tax increment financing. The authority may pledge and appropriate any part
or all of the tax increments received for any redevelopment project, and any part or all of the
revenues received from lands in the project area while owned by the authority, for the payment of
the principal of and interest on bonds issued in aid of the project pursuant to sections 469.034,
469.041, or 469.152 to 469.165, by the authority or by the governing body of the municipality or
other state public body within whose corporate limits the project area is situated. Any such pledge
for the payment of bonds issued by the governing body shall be made by written agreement
executed on behalf of the authority and the governing body and filed with the county auditor. The
estimated collections of the tax increments and any other revenues so pledged may be deducted
from the taxes otherwise required to be levied before the issuance of the bonds under section
475.61, subdivision 1, or the collections thereof may be certified annually to reduce or cancel the
initial tax levies in accordance with section 475.61, subdivision 3. When such an agreement is
made and filed, the bonds may be issued by the governing body in the same manner and subject
only to the same conditions as those provided in chapter 475 for bonds financing improvement
costs reimbursable from special assessments. Bonds shall not be issued nor tax increments or
other revenues pledged pursuant to this subdivision subsequent to August 1, 1979.
History: 1987 c 291 s 42; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1Sp1989 c 1
art 2 s 11