5.0.-14.0. EDSR 04-11-1994 - Laserfiche WebLink

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Senate subcommittee considers tax increment legislation j,. Sarah Hackett for redevelopment. Now that the from manufacturing within economic The Senate Taxes and Tax Laws potential uses of redevelopment TIF development TIF districts. The bill is Subcommittee on Property Tax, have been narrowed,the bill would being redrafted and should then focus Chaired by Sen.Carol Flynn(DFL- remove the local government aid/ on removal of the LGA/HACA penalty Minneapolis)heard presentations and homestead and agricultural credit aid and include language to reassure that testimony on four bills concerning (LGA/HACA)penalty to make TIF a this tool would be used to create or development. The committee used the more practical component of cities' retain jobs within the state,rather than hearing to become better educated redevelopment efforts. encourage the movement of jobs from about the proposals and to ask ques- one city to another. tions of the authors and presenters;no Housing interest rate reduction official votes were taken. The Senate Cities ability to provide affordable Development of polluted land Tax Committee is next stop for this public housing would be enhanced by Sen.Ted Mondale(DFL-St.Louis legislation and its likely the committee S.F.2174(Berglin,Metzen,Belanger, Park)discussed a bill that will improve will include these provisions in the Novak). TIF can currently be used to the ability of cities to clean up polluted omnibus tax bill. finance an"interest rate reduction property. The bill has not yet been The League has been involved program"to reduce the interest rates on assigned a Senate File number.The with the Minnesota Solutions Partner- multi-family rental housing for a proposal would eliminate the require- ship and the creation of these bills. maximum of 12 years. This tool is ment that a city provide a match of 18 Please contact your Senators and frequently used in conjunction with percent of pollution clean up costs from Representatives in support.(see Bill federal housing programs that run for its general fund,tax levy,or other non- Summaries for House authors) 15 years. The bill would match the TIF source. This requirement was state process to the federal system and passed in 1993 as part of a contamina- TIF for Redevelopment extend these TIF districts to 15 years. tion grant clean up program. The fault, S.F.2173 (Hottinger,Pogemiller, or responsibility,by the city was never (. r Doug Johnson, Pappas,Flynn)could Creating manufacturing jobs well justified,and the use of general help cities across the state address the with TIF fund dollars to pay for clean up was problems of blight and decay. Sen. Sen.Joe Bertram(DFL- cited as poor policy. The bill will also John Hottinger(DFL-Mankato) include a repeal of the LGA/HACA Paynesville)explained how S.F.2268 described how restrictions passed in (Betram,Flynn,Doug Johnson,Sams, penalty on TIF projects for pollution 1990 have prohibited the perceived Langseth)would remove the penalty clean up.0 abuses of tax increment financing(TIF) Legislative Advisory Committee begins analyzing League's policy process Tnn Busse specific solutions. He also stressed reliance on the League,and to make the With the goal of increasing again the importance of spotlighting League the chief source of unbiased, member participation and enhancing the few major problems of highest complete,and accurate information on importance to cities. Addicks outlined city issues. lobbying efforts, the League of Minnesota Cities Legislative Advisory changes that the League has already In July 1995,the committee will Committee met for the first time March implemented,including a department present their recommendations to the 4. Co-chaired by Lorraine Browne and reorganization allowing IGR staff to LMC Board of Directors. The board Susan Hoyt,the Committee will review focus on city issues at all levels of prompted the creation of the committee the LMC policy formulation and government. at their retreat last summer by naming legislative process over the next 18 Citing the lackluster adoption of the enhancement of the League's policy legislative policies at the Policy formulation and lobbying process as months. Adoption Meeting,the committee the organization's top priority. LMC Director of Intergovernmen- hopes to change the process to maxi- The committee will meet again tal Relations Duke Addicks told the mize member participation and March 23. Watch the Cities Bulletin committee that the policy adoption ownership in the policies. The commit- for updates and reports on the process should focus on the problems tee also hopes to increase legislative committee's progress.0 cities face,rather than a series of March 18, 1994 Page 5