Subdivision 1 outlines the project area and defines a soil deficiency district as a district that contains unusual terrain or soil deficiency over 80 percent of the acreage requiring substantial filling, grading, or other physical preparation and the estimated cost of the preparation, excluding certain road and local improvement costs, exceeds the fair market value of the land before completion of the preparation.

Subdivision 2(a) authorizes special rules which apply to a redevelopment district, renewal and renovation district, soil condition district, or soil deficiency district.

Subdivision 2(b) requires that prior to the adoption of the first tax increment plan, the city must find that parcels consisting of at least 80 percent of the acreage of the project area, excluding street and railroad right-of ways, are characterized by one or more of the following:  peat or other soils with geotechnical deficiencies that impair development of commercial buildings or infrastructure; soils or terrain that requires substantial filling; landfills; dumps or similar deposits of waste; quarries; floodway; or substandard buildings.

Subdivision 2(c) clarifies that a parcel is deemed to meet the requirements above if 70 percent of the area meets the requirement, but for substandard buildings, the requirement is 30 percent.

Subdivision 2(d) extends the five-year rule to ten years.

Subdivision 2(e) exempts the district from the general prohibition on pooling.

Subdivision 2(f) authorizes increments for a soil deficiency district to be collected for 20 years and be used only to acquire parcels on which the improvements must occur, pay for the costs of correcting the unusual terrain or soil deficiencies, the additional cost of installing public improvements directly caused by the deficiencies, and pay for administrative expenses.

Subdivision 2(g) clarifies that increment spent for any infrastructure costs are deemed to satisfy the requirements of the laws regarding expenditures for tax increments for soil condition districts and redevelopment districts.

Subdivision 2(h) expires the authority to approve a plan on December 31, 2022.

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