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Tourism Facility Economic Development Districts: The term "tourism facility" was substantially restricted for districts
<br /> created after May 31, 1993. Now, such a facility means property that: (1) is located in a county where the median income
<br /> is no more than 85 percent of the state median income;(2)is located in a county in development region 2,3,4,or 5,as defined
<br /> ask in section 462.385; (3) is not located in a city with a population in excess of 20,000; (4) is acquired, constructed, or
<br /> lip rehabilitated for use as a convention and meeting facility that is privately owned, marina, hotel,motel, lodging facility,or
<br /> nonhomestead dwelling unit that in each case is intended to serve primarily individuals from outside the county.
<br /> Tourism counties include Aitkin, Becker, Beltrami, Carlton, Cass, Clay, Clearwater, Cook, Crow Wing, Douglas, Grant,
<br /> Hubbard,Itasca,Koochiching,Lake,.Lake of the Woods,Mahnomen,Morrison,Otter Tail,Pope,St.Louis, Stevens,Todd,
<br /> Traverse, Wadena, and Wilkin.
<br /> Bedrock Soils Economic Development Districts: The 1995 legislature added language that allows revenue derived from tax
<br /> increment from an economic development district to be used for site preparation and public improvements for any type of
<br /> development if bedrock soils are present in 80 percent or more of the acreage of the district,the estimated costs of physical
<br /> preparation of the site exceeds the fair market value of the land before completion of the preparation, and revenue derived
<br /> from tax increments are expended only for the additional costs of preparing the site and installing public improvements
<br /> because of unstable soils and the bedrock soils condition. The 1995 legislature also removed a previous exception that
<br /> allowed use of tax increment to finance up to 5,000 square feet of commercial or retail facilities in cities of 5,000 people or
<br /> less.
<br /> Small Cities Economic Development Districts:.The 1997 legislature added language that permits revenues derived from tax
<br /> increment from an economic development district to assist small city commercial facilities up to 15,000 square feet,within
<br /> certain guidelines. The facilities must be separately owned and the city must have a population of 5,000 or less and must be
<br /> located more than 10 miles from a city with a population of 10,000 or more.
<br /> Soils Condition Districts
<br /> •Qualifications:
<br /> 1. the presence of hazardous substances,pollution, or contaminants requires removal or remedial action for use;
<br /> 2. the estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before
<br /> completion of the preparation.
<br /> The requirements of clause (b) need not be satisfied if each parcel either satisfied the requirements of that clause, or the
<br /> estimated costs of the proposed removal or remedial action exceeds $2.00 per square foot for the area of the parcel.
<br /> Term and Restrictions. May collect increment for 12 years after the date of approval of the TIF Plan;increment may be spent
<br /> only to: acquire parcels on which removal or remediation will occur; pay the cost of removal or remedial action, and pay
<br /> allocated administrative expenses, including the cost of preparation of the development action response plan.
<br /> Soils districts could be created before June 30, 1995 based on unusual terrain and soils conditions. The 1995 amendments
<br /> essentially changed a soils condition district to a hazardous waste district.
<br /> Hazardous Substance Subdistricts
<br /> Qualifications. Consists of parcels within a TIF District of any kind that are"designated hazardous substance sites"or are
<br /> contiguous parcels that the authority expects to be developed together with the hazardous substance site.
<br /> "Designated hazardous substance sites"are parcels for which there is a state-approved"development action response plan,"
<br /> and the authority has entered into an agreement providing for removal actions or otherwise certified that it will finance such
<br /> removal.
<br /> Term and restrictions. May collect increment from the subdistrict for up to twenty-five years after the date of receipt of the
<br /> Ehlers&Associates-TIF Basics 4
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