S.F. 229 authorizes the Dakota County Community Development Agency to create a redevelopment TIF district subject to special rules.
Subdivision 1 authorizes the creation of a redevelopment district for properties that were included in a previous redevelopment district but was required to be decertified in 2012. The new district must decertify no later than December 31, 2028.
Subdivision 2 sets the original tax capacity at $93,239, exempts the district from the requirements for qualifying a redevelopment district (blight test), and further exempts the district from the following spending limitations:
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The prohibition that tax increment not be used to pay the cost of public improvements, equipment or other items that primarily serve a decorative or aesthetic purpose or serve a function purpose;
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The requirement that at least 90 percent of the revenue derives must be used to finance the cost of correcting conditions; and
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The prohibition that tax increment not be used for a commons area used as a public park or a facility used for social, recreational or conference purposes.
Subdivision 3 authorizes tax increment from the district be used to pay for any eligible activities within the redevelopment area.
Subdivision 4 requires that the captured tax capacity be included in the adjusted net tax capacity of the city, county, and school district for purposes of state aid formulas.
The bill is effective upon compliance with filing requirements by the governing body of the Dakota County Community Development Agency.
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