Bill Text: MN HF606 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Compact development district authority reenacted and modified.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2013-02-14 - Introduction and first reading, referred to Taxes [HF606 Detail]
Download: Minnesota-2013-HF606-Introduced.html
1.2relating to tax increment financing; reenacting and modifying compact
1.3development district authority;amending Minnesota Statutes 2012, sections
1.4469.174, subdivisions 10c, 14, by adding a subdivision; 469.176, subdivisions 1i,
1.54g; repealing Minnesota Statutes 2012, section 469.175, subdivision 2b.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 469.174, subdivision 10c, is amended to
1.8read:
1.9 Subd. 10c. Compact development district. "Compact development district" means
1.10a type of tax increment financing district consisting of a project, or portions of a project,
1.11within which the authority finds by resolution that either of the following conditions are
1.12satisfied:
1.13(1)(i) parcels consisting of 70 percent of the area of the district are occupied by
1.14buildings or similar structures that are classified as class 3a property under section273.13 ,
1.15subdivision 24 or class 4a under section 273.13, subdivision 25; and
1.16(2) (ii) the planned redevelopment or development of the district, when completed,
1.17will increase the total square footage of buildings, classified as class 3a under section
1.18273.13
, subdivision 24, occupying the district by three times or more relative to the square
1.19footage of similar buildings occupying the district when the resolution was approved; or
1.20(2)(i) the nearest boundary of each parcel of the district lies within one-half mile
1.21of a qualifying transit line; and
1.22(ii) establishment of the district is in the public interest because it will aid in
1.23financing improvements or services that will increase the effectiveness of the transit and
1.24encourage compact development of property in the district.
2.1EFFECTIVE DATE.This section is effective June 30, 2013.
2.2 Sec. 2. Minnesota Statutes 2012, section 469.174, subdivision 14, is amended to read:
2.3 Subd. 14. Administrative expenses. "Administrative expenses" means all
2.4expenditures of an authority other than:
2.5(1) amounts paid for the purchase of land;
2.6(2) amounts paid to contractors or others providing materials and services, including
2.7architectural and engineering services, directly connected with the physical development
2.8of the real property in the project;
2.9(3) relocation benefits paid to or services provided for persons residing or businesses
2.10located in the project;
2.11(4) amounts paid for services, as authorized by section 469.176, subdivision 1i,
2.12clause (5), for a compact development district;
2.13(4) (5) amounts used to pay principal or interest on, fund a reserve for, or sell at a
2.14discount bonds issued pursuant to section469.178 ; or
2.15(5) (6) amounts used to pay other financial obligations to the extent those obligations
2.16were used to finance costs described in clauses (1) to (3).
2.17For districts for which the requests for certifications were made before August 1,
2.181979, or after June 30, 1982, "administrative expenses" includes amounts paid for services
2.19provided by bond counsel, fiscal consultants, and planning or economic development
2.20consultants.
2.21EFFECTIVE DATE.This section is effective June 30, 2013.
2.22 Sec. 3. Minnesota Statutes 2012, section 469.174, is amended by adding a subdivision
2.23to read:
2.24 Subd. 30. Qualifying transit line. "Qualifying transit line" means a light rail transit
2.25line, commuter rail line, or bus rapid transit line, identified by and operated or to be operated
2.26by the council, as defined in section 473.121, or by the commissioner of transportation.
2.27EFFECTIVE DATE.This section is effective June 30, 2013.
2.28 Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 1i, is amended to read:
2.29 Subd. 1i. Compact development districts. Tax increments derived from a compact
2.30development district may be used only to pay:
2.31(1) administrative expenses up to the amount permitted under subdivision 3;
3.1(2) the cost of acquiring land located in the district or abutting the boundary of
3.2the district;
3.3(3) demolition and removal of buildings or other improvements and other site
3.4preparation costs for lands located in the district or abutting the boundary of the district; and
3.5(4) installation of public infrastructure or public improvements serving the district,
3.6including:
3.7(i) acquiring, constructing, or improving transit stations;
3.8(ii) acquiring and improving green space related to the transit improvements;
3.9(iii) streetscape improvements, such as improvements to streets and sidewalks
3.10or other public rights-of-way for the purpose of enhancing the movement, safety,
3.11convenience, or enjoyment of users of a qualifying transit line and other pedestrians,
3.12including decorative lighting and surfaces, plantings, display and exhibit space,
3.13adornments, seating, and shelters; but excluding
3.14(iv) the costs of streets, roads, highways, parking, or other public improvements
3.15primarily designed to serve private passenger motor vehicles.;
3.16(5) operating paratransit or circulator systems that serve passengers of or feed
3.17passengers to a qualifying transit line;
3.18(6) making transit improvement loans as authorized by section 469.351, subdivision
3.194;
3.20(7) implementing transit area improvement plans that meet the requirements of
3.21section 469.351, subdivision 3; and
3.22(8) financing the cost of programs to mitigate the economic and environmental
3.23effects resulting from construction and operation of the qualifying transit line.
3.24EFFECTIVE DATE.This section is effective June 30, 2013.
3.25 Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
3.26 Subd. 4g. General government use prohibited. (a) Tax increments may not be
3.27used to circumvent existing levy limit law.
3.28(b) No tax increment from any district may be used for the acquisition, construction,
3.29renovation, operation, or maintenance of a building to be used primarily and regularly
3.30for conducting the business of a municipality, county, school district, or any other local
3.31unit of government or the state or federal government. This provision does not prohibit
3.32the use of revenues derived from tax increments for the construction or renovation of
3.33a parking structure.
3.34(c)(1) Tax increments may not be used to pay for the cost of public improvements,
3.35equipment, or other items, if:
4.1(i) the improvements, equipment, or other items are located outside of the area of the
4.2tax increment financing district from which the increments were collected; and
4.3(ii) the improvements, equipment, or items that (A) primarily serve a decorative or
4.4aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than
4.5100 percent as a result of the selection of materials, design, or type as compared with more
4.6commonly used materials, designs, or types for similar improvements, equipment, or items.
4.7(2) The provisions of this paragraph do not apply to expenditures related to the
4.8rehabilitation of historic structures that are:
4.9(i) individually listed on the National Register of Historic Places;or
4.10(ii) a contributing element to a historic district listed on the National Register of
4.11Historic Places; or
4.12(iii) as authorized for a compact development district under subdivision 1i, clause
4.13(4), item (iii).
4.14EFFECTIVE DATE.This section is effective June 30, 2013.
4.15 Sec. 6. REPEALER.
4.16Minnesota Statutes 2012, section 469.175, subdivision 2b, is repealed.
4.17EFFECTIVE DATE.This section is effective June 30, 2013, and reinstates
4.18the statutory authority to establish and maintain compact development tax increment
4.19financing districts.
1.3development district authority;amending Minnesota Statutes 2012, sections
1.4469.174, subdivisions 10c, 14, by adding a subdivision; 469.176, subdivisions 1i,
1.54g; repealing Minnesota Statutes 2012, section 469.175, subdivision 2b.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 469.174, subdivision 10c, is amended to
1.8read:
1.9 Subd. 10c. Compact development district. "Compact development district" means
1.10a type of tax increment financing district consisting of a project, or portions of a project,
1.11within which the authority finds by resolution that either of the following conditions are
1.12satisfied:
1.13(1)(i) parcels consisting of 70 percent of the area of the district are occupied by
1.14buildings or similar structures that are classified as class 3a property under section
1.15subdivision 24 or class 4a under section 273.13, subdivision 25; and
1.16
1.17will increase the total square footage of buildings, classified as class 3a under section
1.19footage of similar buildings occupying the district when the resolution was approved; or
1.20(2)(i) the nearest boundary of each parcel of the district lies within one-half mile
1.21of a qualifying transit line; and
1.22(ii) establishment of the district is in the public interest because it will aid in
1.23financing improvements or services that will increase the effectiveness of the transit and
1.24encourage compact development of property in the district.
2.1EFFECTIVE DATE.This section is effective June 30, 2013.
2.2 Sec. 2. Minnesota Statutes 2012, section 469.174, subdivision 14, is amended to read:
2.3 Subd. 14. Administrative expenses. "Administrative expenses" means all
2.4expenditures of an authority other than:
2.5(1) amounts paid for the purchase of land;
2.6(2) amounts paid to contractors or others providing materials and services, including
2.7architectural and engineering services, directly connected with the physical development
2.8of the real property in the project;
2.9(3) relocation benefits paid to or services provided for persons residing or businesses
2.10located in the project;
2.11(4) amounts paid for services, as authorized by section 469.176, subdivision 1i,
2.12clause (5), for a compact development district;
2.13
2.14discount bonds issued pursuant to section
2.15
2.16were used to finance costs described in clauses (1) to (3).
2.17For districts for which the requests for certifications were made before August 1,
2.181979, or after June 30, 1982, "administrative expenses" includes amounts paid for services
2.19provided by bond counsel, fiscal consultants, and planning or economic development
2.20consultants.
2.21EFFECTIVE DATE.This section is effective June 30, 2013.
2.22 Sec. 3. Minnesota Statutes 2012, section 469.174, is amended by adding a subdivision
2.23to read:
2.24 Subd. 30. Qualifying transit line. "Qualifying transit line" means a light rail transit
2.25line, commuter rail line, or bus rapid transit line, identified by and operated or to be operated
2.26by the council, as defined in section 473.121, or by the commissioner of transportation.
2.27EFFECTIVE DATE.This section is effective June 30, 2013.
2.28 Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 1i, is amended to read:
2.29 Subd. 1i. Compact development districts. Tax increments derived from a compact
2.30development district may be used only to pay:
2.31(1) administrative expenses up to the amount permitted under subdivision 3;
3.1(2) the cost of acquiring land located in the district or abutting the boundary of
3.2the district;
3.3(3) demolition and removal of buildings or other improvements and other site
3.4preparation costs for lands located in the district or abutting the boundary of the district; and
3.5(4) installation of public infrastructure or public improvements serving the district,
3.6including:
3.7(i) acquiring, constructing, or improving transit stations;
3.8(ii) acquiring and improving green space related to the transit improvements;
3.9(iii) streetscape improvements, such as improvements to streets and sidewalks
3.10or other public rights-of-way for the purpose of enhancing the movement, safety,
3.11convenience, or enjoyment of users of a qualifying transit line and other pedestrians,
3.12including decorative lighting and surfaces, plantings, display and exhibit space,
3.13adornments, seating, and shelters; but excluding
3.14(iv) the costs of streets, roads, highways, parking, or other public improvements
3.15primarily designed to serve private passenger motor vehicles
3.16(5) operating paratransit or circulator systems that serve passengers of or feed
3.17passengers to a qualifying transit line;
3.18(6) making transit improvement loans as authorized by section 469.351, subdivision
3.194;
3.20(7) implementing transit area improvement plans that meet the requirements of
3.21section 469.351, subdivision 3; and
3.22(8) financing the cost of programs to mitigate the economic and environmental
3.23effects resulting from construction and operation of the qualifying transit line.
3.24EFFECTIVE DATE.This section is effective June 30, 2013.
3.25 Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
3.26 Subd. 4g. General government use prohibited. (a) Tax increments may not be
3.27used to circumvent existing levy limit law.
3.28(b) No tax increment from any district may be used for the acquisition, construction,
3.29renovation, operation, or maintenance of a building to be used primarily and regularly
3.30for conducting the business of a municipality, county, school district, or any other local
3.31unit of government or the state or federal government. This provision does not prohibit
3.32the use of revenues derived from tax increments for the construction or renovation of
3.33a parking structure.
3.34(c)(1) Tax increments may not be used to pay for the cost of public improvements,
3.35equipment, or other items, if:
4.1(i) the improvements, equipment, or other items are located outside of the area of the
4.2tax increment financing district from which the increments were collected; and
4.3(ii) the improvements, equipment, or items that (A) primarily serve a decorative or
4.4aesthetic purpose, or (B) serve a functional purpose, but their cost is increased by more than
4.5100 percent as a result of the selection of materials, design, or type as compared with more
4.6commonly used materials, designs, or types for similar improvements, equipment, or items.
4.7(2) The provisions of this paragraph do not apply to expenditures related to the
4.8rehabilitation of historic structures that are:
4.9(i) individually listed on the National Register of Historic Places;
4.10(ii) a contributing element to a historic district listed on the National Register of
4.11Historic Places; or
4.12(iii) as authorized for a compact development district under subdivision 1i, clause
4.13(4), item (iii).
4.14EFFECTIVE DATE.This section is effective June 30, 2013.
4.15 Sec. 6. REPEALER.
4.16Minnesota Statutes 2012, section 469.175, subdivision 2b, is repealed.
4.17EFFECTIVE DATE.This section is effective June 30, 2013, and reinstates
4.18the statutory authority to establish and maintain compact development tax increment
4.19financing districts.
