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Offices in 470 U.S. Bank Plaza <br /> Kenned y 200 South Sixth Street <br />Minneapolis <br />T Minneapolis MN 55402 <br />Saint Paul (612) 337-9300 telephone <br />~~'aV en (612) 337-9310 fax <br />St. Cloud www•kennedy-graven.com <br />CHARTERED A~rma[ive Ac[ion Equal Opportunity Employer <br /> MEMORANDUM <br />FROM: Mary Dyrseth <br />Jenny Boulton <br />DATE: June 6, 2011 <br />RE: TIF Provisions in Omnibus Technical Tax Bill -CHAPTER 112 (HF 1219) <br />The Jobs Bill (Chapter 216 -House File 2695) enacted in 2010, .included several <br />provisions which liberalize the use of tax increment financing in order to stimulate job creation. <br />Provisions in the Jobs Bill relating to the creation of economic development districts for broader <br />categories of development (including housing and commercial) and provisions relating to <br />temporary pooling in accordance with a spending plan had time limits originally set to expire in <br />2011. Those deadlines have been extended by the omnibus technical tax bill (Chapter 112 - HF <br />1219) signed into law by Governor Dayton on May 31, 2011. Chapter 112 also contains a <br />provision allowing pooling of tax increments for developing housing on sites of abandoned and <br />foreclosed residences. <br />1. Jobs Bill TIF Timelines Generally. <br />For most types of development, the Jobs Bill TIF deadlines have been extended exactly <br />one year. Consequently, tax increment authorities may continue to create economic development <br />districts for most types of development if: <br />(a) the municipality finds the project will create or retain jobs in the state, <br />including construction jobs, and the construction of the project would not have commenced <br />before July 1, 2012 without the assistance to be provided; <br />(b) construction of the project begins no later than July 1, 2012; and <br />(c) the request for certification of the district is made to the county no later <br />than June 30, 2012. <br />Likewise, tax increment authorities may continue to use tax increments from an existing <br />tax increment district, whenever the district was certified and not withstanding any law to the <br />contrary, to provide assistance in any form or make an equity investment in a private entity, if: <br />(a) doing so will create or retain jobs in the state, including construction jobs; <br />and <br />387282v1 JSB KG400-1 <br />