Bill Text: MN HF706 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Tax increment financing temporary authority extended.
Sponsorship: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2013-03-06 - Author added FitzSimmons [HF706 Detail]
Download: Minnesota-2013-HF706-Introduced.html
1.2relating to tax increment financing; extending temporary authority;amending
1.3Minnesota Statutes 2012, section 469.176, subdivisions 4c, 4m.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
1.6 Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
1.7from an economic development district may not be used to provide improvements, loans,
1.8subsidies, grants, interest rate subsidies, or assistance in any form to developments
1.9consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
1.10facilities (determined on the basis of square footage) are used for a purpose other than:
1.11(1) the manufacturing or production of tangible personal property, including
1.12processing resulting in the change in condition of the property;
1.13(2) warehousing, storage, and distribution of tangible personal property, excluding
1.14retail sales;
1.15(3) research and development related to the activities listed in clause (1) or (2);
1.16(4) telemarketing if that activity is the exclusive use of the property;
1.17(5) tourism facilities; or
1.18(6)qualified border retail facilities; or
1.19(7) space necessary for and related to the activities listed in clauses (1) to (6) (5).
1.20(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
1.21increment from an economic development district may be used to provide improvements,
1.22loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
1.23square feet of any separately owned commercial facility located within the municipal
1.24jurisdiction of a small city, if the revenues derived from increments are spent only to
2.1assist the facility directly or for administrative expenses, the assistance is necessary to
2.2develop the facility, and all of the increments, except those for administrative expenses,
2.3are spent only for activities within the district.
2.4(c) A city is a small city for purposes of this subdivision if the city was a small city
2.5in the year in which the request for certification was made and applies for the rest of
2.6the duration of the district, regardless of whether the city qualifies or ceases to qualify
2.7as a small city.
2.8(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
2.9of section469.174, subdivision 12 , tax increments from an economic development district
2.10may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
2.11assistance in any form to developments consisting of buildings and ancillary facilities, if
2.12all the following conditions are met:
2.13(1) the municipality finds that the project will create or retain jobs in this state,
2.14including construction jobs, and that construction of the project would not have
2.15commenced beforeJuly 1, 2012 January 1, 2014, without the authority providing
2.16assistance under the provisions of this paragraph;
2.17(2) construction of the project begins no later thanJuly 1, 2012 January 1, 2014;
2.18(3) the request for certification of the district is made no later thanJune 30, 2012
2.19 December 31, 2013; and
2.20(4) for development of housing under this paragraph, the construction must begin
2.21before January 1, 2012.
2.22The provisions of this paragraph may not be used to assist housing that is developed
2.23to qualify under section469.1761, subdivision 2 or 3, or similar requirements of other law,
2.24if construction of the project begins later than July 1, 2011.
2.25EFFECTIVE DATE.This section is effective the day following final enactment.
2.26 Sec. 2. Minnesota Statutes 2012, section 469.176, subdivision 4m, is amended to read:
2.27 Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
2.28the restrictions in any other subdivision of this section or any other law to the contrary,
2.29except the requirement to pay bonds to which the increments are pledged and the
2.30provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
2.31more of the following purposes:
2.32(1) to provide improvements, loans, interest rate subsidies, or assistance in any
2.33form to private development consisting of the construction or substantial rehabilitation of
2.34buildings and ancillary facilities, if doing so will create or retain jobs in this state, including
3.1construction jobs, and that the construction commences beforeJuly 1, 2012 January 1,
3.22014, and would not have commenced before that date without the assistance; or
3.3(2) to make an equity or similar investment in a corporation, partnership, or limited
3.4liability company that the authority determines is necessary to make construction of a
3.5development that meets the requirements of clause (1) financially feasible.
3.6(b) The authority may undertake actions under the authority of this subdivision only
3.7after approval by the municipality of a written spending planthat specifically authorizes
3.8the authority to take the actions. The spending plan must contain a detailed description
3.9of each action to be undertaken. The municipality shall approve the spending plan only
3.10after a public hearing after published notice in a newspaper of general circulation in
3.11the municipality at least once, not less than ten days nor more than 30 days prior to the
3.12date of the hearing.
3.13(c) The authority to spend tax increments under this subdivision expiresDecember
3.1431, 2012 June 30, 2014.
3.15(d) For a development consisting of housing, the authority to spend tax increments
3.16under this subdivision expires December 31, 2011, and construction must commence
3.17before July 1, 2011, except the authority to spend tax increments on market rate housing
3.18developments under this subdivision expires July 31, 2012, and construction must
3.19commence before January 1, 2012.
3.20EFFECTIVE DATE.This section is effective the day following final enactment
3.21and applies to all tax increment financing districts, regardless of when the request for
3.22certification was made. The amendments to paragraph (b) apply to projects approved
3.23after the day following final enactment.
1.3Minnesota Statutes 2012, section 469.176, subdivisions 4c, 4m.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
1.6 Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
1.7from an economic development district may not be used to provide improvements, loans,
1.8subsidies, grants, interest rate subsidies, or assistance in any form to developments
1.9consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
1.10facilities (determined on the basis of square footage) are used for a purpose other than:
1.11(1) the manufacturing or production of tangible personal property, including
1.12processing resulting in the change in condition of the property;
1.13(2) warehousing, storage, and distribution of tangible personal property, excluding
1.14retail sales;
1.15(3) research and development related to the activities listed in clause (1) or (2);
1.16(4) telemarketing if that activity is the exclusive use of the property;
1.17(5) tourism facilities; or
1.18(6)
1.19
1.20(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
1.21increment from an economic development district may be used to provide improvements,
1.22loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
1.23square feet of any separately owned commercial facility located within the municipal
1.24jurisdiction of a small city, if the revenues derived from increments are spent only to
2.1assist the facility directly or for administrative expenses, the assistance is necessary to
2.2develop the facility, and all of the increments, except those for administrative expenses,
2.3are spent only for activities within the district.
2.4(c) A city is a small city for purposes of this subdivision if the city was a small city
2.5in the year in which the request for certification was made and applies for the rest of
2.6the duration of the district, regardless of whether the city qualifies or ceases to qualify
2.7as a small city.
2.8(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
2.9of section
2.10may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
2.11assistance in any form to developments consisting of buildings and ancillary facilities, if
2.12all the following conditions are met:
2.13(1) the municipality finds that the project will create or retain jobs in this state,
2.14including construction jobs, and that construction of the project would not have
2.15commenced before
2.16assistance under the provisions of this paragraph;
2.17(2) construction of the project begins no later than
2.18(3) the request for certification of the district is made no later than
2.19 December 31, 2013; and
2.20(4) for development of housing under this paragraph, the construction must begin
2.21before January 1, 2012.
2.22The provisions of this paragraph may not be used to assist housing that is developed
2.23to qualify under section
2.24if construction of the project begins later than July 1, 2011.
2.25EFFECTIVE DATE.This section is effective the day following final enactment.
2.26 Sec. 2. Minnesota Statutes 2012, section 469.176, subdivision 4m, is amended to read:
2.27 Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
2.28the restrictions in any other subdivision of this section or any other law to the contrary,
2.29except the requirement to pay bonds to which the increments are pledged and the
2.30provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
2.31more of the following purposes:
2.32(1) to provide improvements, loans, interest rate subsidies, or assistance in any
2.33form to private development consisting of the construction or substantial rehabilitation of
2.34buildings and ancillary facilities, if doing so will create or retain jobs in this state, including
3.1construction jobs, and that the construction commences before
3.22014, and would not have commenced before that date without the assistance; or
3.3(2) to make an equity or similar investment in a corporation, partnership, or limited
3.4liability company that the authority determines is necessary to make construction of a
3.5development that meets the requirements of clause (1) financially feasible.
3.6(b) The authority may undertake actions under the authority of this subdivision only
3.7after approval by the municipality of a written spending plan
3.8
3.9of each action to be undertaken. The municipality shall approve the spending plan only
3.10after a public hearing after published notice in a newspaper of general circulation in
3.11the municipality at least once, not less than ten days nor more than 30 days prior to the
3.12date of the hearing.
3.13(c) The authority to spend tax increments under this subdivision expires
3.14
3.15
3.16
3.17
3.18
3.19
3.20EFFECTIVE DATE.This section is effective the day following final enactment
3.21and applies to all tax increment financing districts, regardless of when the request for
3.22certification was made. The amendments to paragraph (b) apply to projects approved
3.23after the day following final enactment.
