Bill Text: MN SF420 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Tax increment financing (TIF) spending increments to stimulate construction deadline extension
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-24 - Referred to Taxes [SF420 Detail]
Download: Minnesota-2011-SF420-Introduced.html
1.2relating to economic development; extending deadlines for spending tax
1.3increments under certain conditions;amending Minnesota Statutes 2010, section 469.176, subdivisions 4c, 4m.1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to
1.7read:
1.8 Subd. 4c. Economic development districts. (a) Revenue derived from tax
1.9increment from an economic development district may not be used to provide
1.10improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
1.11to developments consisting of buildings and ancillary facilities, if more than 15 percent
1.12of the buildings and facilities (determined on the basis of square footage) are used for a
1.13purpose other than:
1.14(1) the manufacturing or production of tangible personal property, including
1.15processing resulting in the change in condition of the property;
1.16(2) warehousing, storage, and distribution of tangible personal property, excluding
1.17retail sales;
1.18(3) research and development related to the activities listed in clause (1) or (2);
1.19(4) telemarketing if that activity is the exclusive use of the property;
1.20(5) tourism facilities;
1.21(6) qualified border retail facilities; or
1.22(7) space necessary for and related to the activities listed in clauses (1) to (6).
1.23(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
1.24increment from an economic development district may be used to provide improvements,
2.1loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
2.2square feet of any separately owned commercial facility located within the municipal
2.3jurisdiction of a small city, if the revenues derived from increments are spent only to
2.4assist the facility directly or for administrative expenses, the assistance is necessary to
2.5develop the facility, and all of the increments, except those for administrative expenses,
2.6are spent only for activities within the district.
2.7(c) A city is a small city for purposes of this subdivision if the city was a small city
2.8in the year in which the request for certification was made and applies for the rest of
2.9the duration of the district, regardless of whether the city qualifies or ceases to qualify
2.10as a small city.
2.11(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
2.12of section469.174, subdivision 12 , tax increments from an economic development district
2.13may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
2.14assistance in any form to developments consisting of buildings and ancillary facilities, if
2.15all the following conditions are met:
2.16(1) the municipality finds that the project will create or retain jobs in this state,
2.17including construction jobs, and that construction of the project would not have
2.18commenced before July 1,2011 2013, without the authority providing assistance under
2.19the provisions of this paragraph;
2.20(2) construction of the project begins no later than July 1,2011 2013; and
2.21(3) the request for certification of the district is made no later than June 30,2011
2.222013.
2.23EFFECTIVE DATE.This section is effective the day following final enactment.
2.24 Sec. 2. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:
2.25 Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
2.26the restrictions in any other subdivision of this section or any other law to the contrary,
2.27except the requirement to pay bonds to which the increments are pledged and the
2.28provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
2.29more of the following purposes:
2.30(1) to provide improvements, loans, interest rate subsidies, or assistance in any
2.31form to private development consisting of the construction or substantial rehabilitation
2.32of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
2.33including construction jobs, and that the construction commences before July 1,2011
2.342013, and would not have commenced before that date without the assistance; or
3.1(2) to make an equity or similar investment in a corporation, partnership, or limited
3.2liability company that the authority determines is necessary to make construction of a
3.3development that meets the requirements of clause (1) financially feasible.
3.4(b) The authority may undertake actions under the authority of this subdivision only
3.5after approval by the municipality of a written spending plan that specifically authorizes
3.6the authority to take the actions. The municipality shall approve the spending plan only
3.7after a public hearing after published notice in a newspaper of general circulation in
3.8the municipality at least once, not less than ten days nor more than 30 days prior to the
3.9date of the hearing.
3.10(c) The authority to spend tax increments under this subdivision expires December
3.1131,2011 2013.
3.12EFFECTIVE DATE.This section is effective the day following final enactment.
1.3increments under certain conditions;amending Minnesota Statutes 2010, section 469.176, subdivisions 4c, 4m.1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to
1.7read:
1.8 Subd. 4c. Economic development districts. (a) Revenue derived from tax
1.9increment from an economic development district may not be used to provide
1.10improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
1.11to developments consisting of buildings and ancillary facilities, if more than 15 percent
1.12of the buildings and facilities (determined on the basis of square footage) are used for a
1.13purpose other than:
1.14(1) the manufacturing or production of tangible personal property, including
1.15processing resulting in the change in condition of the property;
1.16(2) warehousing, storage, and distribution of tangible personal property, excluding
1.17retail sales;
1.18(3) research and development related to the activities listed in clause (1) or (2);
1.19(4) telemarketing if that activity is the exclusive use of the property;
1.20(5) tourism facilities;
1.21(6) qualified border retail facilities; or
1.22(7) space necessary for and related to the activities listed in clauses (1) to (6).
1.23(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
1.24increment from an economic development district may be used to provide improvements,
2.1loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
2.2square feet of any separately owned commercial facility located within the municipal
2.3jurisdiction of a small city, if the revenues derived from increments are spent only to
2.4assist the facility directly or for administrative expenses, the assistance is necessary to
2.5develop the facility, and all of the increments, except those for administrative expenses,
2.6are spent only for activities within the district.
2.7(c) A city is a small city for purposes of this subdivision if the city was a small city
2.8in the year in which the request for certification was made and applies for the rest of
2.9the duration of the district, regardless of whether the city qualifies or ceases to qualify
2.10as a small city.
2.11(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
2.12of section
2.13may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
2.14assistance in any form to developments consisting of buildings and ancillary facilities, if
2.15all the following conditions are met:
2.16(1) the municipality finds that the project will create or retain jobs in this state,
2.17including construction jobs, and that construction of the project would not have
2.18commenced before July 1,
2.19the provisions of this paragraph;
2.20(2) construction of the project begins no later than July 1,
2.21(3) the request for certification of the district is made no later than June 30,
2.222013.
2.23EFFECTIVE DATE.This section is effective the day following final enactment.
2.24 Sec. 2. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:
2.25 Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
2.26the restrictions in any other subdivision of this section or any other law to the contrary,
2.27except the requirement to pay bonds to which the increments are pledged and the
2.28provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
2.29more of the following purposes:
2.30(1) to provide improvements, loans, interest rate subsidies, or assistance in any
2.31form to private development consisting of the construction or substantial rehabilitation
2.32of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
2.33including construction jobs, and that the construction commences before July 1,
2.342013, and would not have commenced before that date without the assistance; or
3.1(2) to make an equity or similar investment in a corporation, partnership, or limited
3.2liability company that the authority determines is necessary to make construction of a
3.3development that meets the requirements of clause (1) financially feasible.
3.4(b) The authority may undertake actions under the authority of this subdivision only
3.5after approval by the municipality of a written spending plan that specifically authorizes
3.6the authority to take the actions. The municipality shall approve the spending plan only
3.7after a public hearing after published notice in a newspaper of general circulation in
3.8the municipality at least once, not less than ten days nor more than 30 days prior to the
3.9date of the hearing.
3.10(c) The authority to spend tax increments under this subdivision expires December
3.1131,
3.12EFFECTIVE DATE.This section is effective the day following final enactment.
