7.0. EDSR 02-14-2000 - Laserfiche WebLink

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HENNEPIN COUNTY POLICY ON TAX ABATEMENTS °a • for REDEVELPMENT or DEVELOPMENT PURPOSES 4 RESOLUTION 99-2-101 Approved 02-09-99 Background. Subject to certain restrictions and limitations, the Hennepin County Board is au .'zed by Minnesota Statutes Sections 469. 1812 to 469.1815 to grant abatement of the county t • - attributable to new construction. The county board must find that the expected benefits to the co equal or exceed the amount of county taxes subject to the abatement agreement. The board must . -. find that the abatement action is in the public interest because the abatement will meet at least one of the following criteria: 1. increase or preserve tax base 2. provide employment opportunities in the county 3. provide or help acquire or construct public facilities 4. help redevelop or renew blighted areas, or 5. help provide access to services for county residents Restrictive Abatement. Although the abatement authority granted by the Legislature is very broad, the county board will approve abatements only on a restrictive basis per this policy. Accordingly, the county board will limit tax abatement to the following types of projects: 1. Brownfields remediation and environmental cleanup. For this purpose, the term "Brownfield's" is defined as abandoned, idled or under-used industrial or commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. 2. Affordable rental housing for persons and families of low income. To be considered for tax . abatement, the rental housing project must meet all of the requirements for a low-income housing credit under section 142(d) of the Internal Revenue Code, regardless of whether the project actually receives a housing credit. 3. County community works within boundaries designated by the County Board. 4. Underdeveloped Hennepin County owned properties. 5. Transit oriented development along transit corridors. 6. Properties with Historic Preservation designation. Criteria for Abatement. In considering whether or not the county board should approve tax abatement for a specific project for economic development purposes, the following will be considered: 1. The extent to which the public interest is served by providing benefits as listed above. 2. The extent to which the new employment opportunities provide benefits and livable wages for employees. 3. The extent to which the project increases county costs for road construction, traffic control, law enforcement, human services and other budgetary items. 4. The extent that other local governments support the project, including but not limited to tax abatement on the subject property. 5. The extent to which other public assistance is provided to the project. State law prohibits tax abatement under the authority if the property is located in a tax increment-financing district. The county also strongly opposes a tax increment subsidy from other sources. 6. The nature and type of the new development. 7. The extent to which the project will increase or preserve the county tax base, and why. 8. The extent to which the affected city has utilized tax increment financing for previous redevelopment and development projects. 9. The applicant must demonstrate that the project is not financially feasible "but for" the • tax abatement subsidy requested.