Bill Text: MN HF2643 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Tax increment financing definitions modified.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2012-03-05 - Introduction and first reading, referred to Taxes [HF2643 Detail]
Download: Minnesota-2011-HF2643-Introduced.html
1.2relating to taxation; tax increment financing; modifying definitions;amending
1.3Minnesota Statutes 2010, section 469.174, subdivision 10.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to
1.6read:
1.7 Subd. 10. Redevelopment district. (a) "Redevelopment district" means a type of
1.8tax increment financing district consisting of a project, or portions of a project, within
1.9which the authority finds by resolution that one or more of the following conditions,
1.10reasonably distributed throughout the district, exists:
1.11 (1) parcels consisting of 70 percent of the area of the district are occupied by
1.12buildings, streets, utilities, paved or gravel parking lots, or other similar structures and
1.13more than 50 percent or more of the buildings, not including outbuildings, are structurally
1.14substandard to a degree requiring substantial renovation or clearance;
1.15 (2) the property consists of vacant, unused, underused, inappropriately used, or
1.16infrequently used rail yards, rail storage facilities, or excessive or vacated railroad
1.17rights-of-way;
1.18 (3) tank facilities, or property whose immediately previous use was for tank
1.19facilities, as defined in section115C.02, subdivision 15 , if the tank facilities:
1.20 (i) have or had a capacity of more than 1,000,000 gallons;
1.21 (ii) are located adjacent to rail facilities; and
1.22 (iii) have been removed or are unused, underused, inappropriately used, or
1.23infrequently used; or
1.24 (4) a qualifying disaster area, as defined in subdivision 10b.
2.1 (b) For purposes of this subdivision, "structurally substandard" shall mean
2.2containing defects in structural elements or a combination of deficiencies in essential
2.3utilities and facilities, light and ventilation, fire protection including adequate egress,
2.4layout and condition of interior partitions, or similar factors, which defects or deficiencies
2.5are of sufficient total significance to justify substantial renovation or clearance.
2.6 (c) A building is not structurally substandard if it is in compliance with the building
2.7code applicable to new buildings or could be modified to satisfy the building code at
2.8a cost of less than 15 percent of the cost of constructing a new structure of the same
2.9square footage and type on the site. The municipality may find that a building is not
2.10disqualified as structurally substandard under the preceding sentence on the basis of
2.11reasonably available evidence, such as the size, type, and age of the building, the average
2.12cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The
2.13municipality may not make such a determination without an interior inspection of the
2.14property, but need not have an independent, expert appraisal prepared of the cost of repair
2.15and rehabilitation of the building. An interior inspection of the property is not required,
2.16if the municipality finds that (1) the municipality or authority is unable to gain access to
2.17the property after using its best efforts to obtain permission from the party that owns or
2.18controls the property; and (2) the evidence otherwise supports a reasonable conclusion that
2.19the building is structurally substandard. Items of evidence that support such a conclusion
2.20include recent fire or police inspections, on-site property tax appraisals or housing
2.21inspections, exterior evidence of deterioration, or other similar reliable evidence. Written
2.22documentation of the findings and reasons why an interior inspection was not conducted
2.23must be made and retained under section469.175, subdivision 3 , clause (1). Failure of a
2.24building to be disqualified under the provisions of this paragraph is a necessary, but not a
2.25sufficient, condition to determining that the building is substandard.
2.26 (d) A parcel is deemed to be occupied by a structurally substandard building
2.27for purposes of the finding under paragraph (a) or by the improvements described in
2.28paragraph (e) if all of the following conditions are met:
2.29 (1) the parcel was occupied by a substandard building or met the requirements
2.30of paragraph (e), as the case may be, within three years of the filing of the request for
2.31certification of the parcel as part of the district with the county auditor;
2.32 (2) the substandard building or the improvements described in paragraph (e) were
2.33demolished or removed by the authority or the demolition or removal was financed by the
2.34authority or was done by a developer under a development agreement with the authority;
2.35 (3) the authority found by resolution before the demolition or removal that the
2.36parcel was occupied by a structurally substandard building or met the requirements of
3.1paragraph (e) and that after demolition and clearance the authority intended to include
3.2the parcel within a district; and
3.3 (4) upon filing the request for certification of the tax capacity of the parcel as part
3.4of a district, the authority notifies the county auditor that the original tax capacity of the
3.5parcel must be adjusted as provided by section469.177, subdivision 1 , paragraph (f).
3.6 (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets,
3.7utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the
3.8area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or
3.9other similar structures.
3.10 (f) For districts consisting of two or more noncontiguous areas, each area must
3.11qualify as a redevelopment district under paragraph (a) to be included in the district, and
3.12the entire area of the district must satisfy paragraph (a).
3.13EFFECTIVE DATE.This section is effective the day following final enactment.
1.3Minnesota Statutes 2010, section 469.174, subdivision 10.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to
1.6read:
1.7 Subd. 10. Redevelopment district. (a) "Redevelopment district" means a type of
1.8tax increment financing district consisting of a project, or portions of a project, within
1.9which the authority finds by resolution that one or more of the following conditions,
1.10reasonably distributed throughout the district, exists:
1.11 (1) parcels consisting of 70 percent of the area of the district are occupied by
1.12buildings, streets, utilities, paved or gravel parking lots, or other similar structures and
1.13
1.14substandard to a degree requiring substantial renovation or clearance;
1.15 (2) the property consists of vacant, unused, underused, inappropriately used, or
1.16infrequently used rail yards, rail storage facilities, or excessive or vacated railroad
1.17rights-of-way;
1.18 (3) tank facilities, or property whose immediately previous use was for tank
1.19facilities, as defined in section
1.20 (i) have or had a capacity of more than 1,000,000 gallons;
1.21 (ii) are located adjacent to rail facilities; and
1.22 (iii) have been removed or are unused, underused, inappropriately used, or
1.23infrequently used; or
1.24 (4) a qualifying disaster area, as defined in subdivision 10b.
2.1 (b) For purposes of this subdivision, "structurally substandard" shall mean
2.2containing defects in structural elements or a combination of deficiencies in essential
2.3utilities and facilities, light and ventilation, fire protection including adequate egress,
2.4layout and condition of interior partitions, or similar factors, which defects or deficiencies
2.5are of sufficient total significance to justify substantial renovation or clearance.
2.6 (c) A building is not structurally substandard if it is in compliance with the building
2.7code applicable to new buildings or could be modified to satisfy the building code at
2.8a cost of less than 15 percent of the cost of constructing a new structure of the same
2.9square footage and type on the site. The municipality may find that a building is not
2.10disqualified as structurally substandard under the preceding sentence on the basis of
2.11reasonably available evidence, such as the size, type, and age of the building, the average
2.12cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The
2.13municipality may not make such a determination without an interior inspection of the
2.14property, but need not have an independent, expert appraisal prepared of the cost of repair
2.15and rehabilitation of the building. An interior inspection of the property is not required,
2.16if the municipality finds that (1) the municipality or authority is unable to gain access to
2.17the property after using its best efforts to obtain permission from the party that owns or
2.18controls the property; and (2) the evidence otherwise supports a reasonable conclusion that
2.19the building is structurally substandard. Items of evidence that support such a conclusion
2.20include recent fire or police inspections, on-site property tax appraisals or housing
2.21inspections, exterior evidence of deterioration, or other similar reliable evidence. Written
2.22documentation of the findings and reasons why an interior inspection was not conducted
2.23must be made and retained under section
2.24building to be disqualified under the provisions of this paragraph is a necessary, but not a
2.25sufficient, condition to determining that the building is substandard.
2.26 (d) A parcel is deemed to be occupied by a structurally substandard building
2.27for purposes of the finding under paragraph (a) or by the improvements described in
2.28paragraph (e) if all of the following conditions are met:
2.29 (1) the parcel was occupied by a substandard building or met the requirements
2.30of paragraph (e), as the case may be, within three years of the filing of the request for
2.31certification of the parcel as part of the district with the county auditor;
2.32 (2) the substandard building or the improvements described in paragraph (e) were
2.33demolished or removed by the authority or the demolition or removal was financed by the
2.34authority or was done by a developer under a development agreement with the authority;
2.35 (3) the authority found by resolution before the demolition or removal that the
2.36parcel was occupied by a structurally substandard building or met the requirements of
3.1paragraph (e) and that after demolition and clearance the authority intended to include
3.2the parcel within a district; and
3.3 (4) upon filing the request for certification of the tax capacity of the parcel as part
3.4of a district, the authority notifies the county auditor that the original tax capacity of the
3.5parcel must be adjusted as provided by section
3.6 (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets,
3.7utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the
3.8area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or
3.9other similar structures.
3.10 (f) For districts consisting of two or more noncontiguous areas, each area must
3.11qualify as a redevelopment district under paragraph (a) to be included in the district, and
3.12the entire area of the district must satisfy paragraph (a).
3.13EFFECTIVE DATE.This section is effective the day following final enactment.
