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~- <br />_- '" = <br />The State of Minnesota Jobs Bill authorized a new type of tax increment district that will make it <br />easier for property to qualify for a full 26 years of increment. Over time, as the law has changed, it <br />has become increasingly difficult to qualify areas in need of redevelopment fora 26 year tax <br />increment district. But now we have a window of opportunity to create new Compact Development <br />Districts. For two years, between June 30, 2010 and June 30, 2012, local governments can <br />create a Compact Development District to assist any project that will significantly increase the <br />intensity of commercial/industrial (C/I) development on a site. <br />The spirit of the law is to convert undenatilized C/I property into new C/I development and create <br />jobs along the way. Specifically, there is a two-part test to qualify. <br />1. Prior to redevelopment, parcels consisting of 70% of the area must be occupied with a <br />commercial or industrial structure on them. To be occupied, at least 15% of a parcel must be <br />improved. <br />2. The new building(s), when completed, will be at least three times as large (measured in <br />square feet) as the original building(s). <br />There is no requirement for existing buildings to be substandard. <br />,~ . ~. _ <br />~~., , n, <br />`s~~i .{r <br />This new district is well-suited for large parcels with a few commercial buildings on them. For <br />example: <br />The site of a closed car dealership <br />• An obsolete rail yard with storage buildings <br />• A single story warehouse that will be replaced by a mixed use development <br />g $ "` ~ ' Cd ~~ V(/`r-~i"s ^~ q ~ E...€ i ~r L. £ +^~La l( ~~~'.1ipt^~^i~~.-'~ i ~j'+ tg~4~ ! (t ~ .E~ ~ ~ ~iyS?~ €~k[`° ~ '" _, j ~ ~ t ~,.. ~ ~ C°~ <br />`...1 ;'~~. w. SJ L.-lE [ t i,.s~~~4Pi?€ 4t 4/1.11 I !~~i.fl :~?~~~~3 € (f 36 ~,. .: L Lz...iL4 `..r <br />Maybe. Your district would need to satisfy the two-part test above based on existing commercial <br />buildings. For example, if your parcel is 100,000 square feet and contains a 15,000 square foot <br />building, it would qualify regardless of whether it contained other types of property. Each district <br />will depend on the facts on the ground. <br />,ire ~i~re ~~i ~ ~~i ~ r~~r ve~a~~er~~ ~~ e~ <br />The only restriction is that the overall density of C/I development is tripled. <br />EHLERS <br />LEADfRSINPUBUC nNANG€ <br /> <br />F~r~riesota p~cs#°~e 651-697-8500 3080 Centre Pointe Drive <br />Offices aiso in Wisconsin and Illinois #x 651-897-8555 Rosev~le, MN 55113-1122 <br />tcsE1 free 8(~-552-1171 <br />