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

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MN Dept of Trade & Econ Dev 1 612 297-1168 04/02/94 03:18:25 Page 2 of 2 APR 01 '94 02:25PM YAGGY COLBY ASSOCIATES P.1 ECONOMIC DEVELOPMENT ASSOCIATION OF MINNESOTA • One Appletree Square, Suite 201 LEGISLATIVE ALERT Bloomington, MN 55425 11114 (612) 8546215 • Fax 854-2614 House Tax Committee Hearing Tuesday, April 5, 1994, 8:00 to 12:00 Room 5 of State Office Building April 1, 1994 Tax Increment Financing is an important Local Development Tool. Competition from surrounding states has further increased the need for Local Development Tools. The flood of special TIF legislation since the 1990 "reforms" confirms the existence of state policies that are presently flawed and forces communities to make choices between good projects and LGA.cuts. The House Tax Committee will consider general tax increment financing provisions relating to manufacturing job creation, redevelopment, housing and polluted lands. More special legislation will be considered as well as the possible unveiling of Representative Ann Rest's own tax increment bill--one that is rumored to impose even more restrictions on the use of Tll and might even abolish it in favor of a "tax abatement program". Economic Developers need to act now. Plan on attending this Hearing or contact your • representatives or members of the House Tax Committee. H.F. 3070 (Bauerly): Allows relief from the HACA/LGA penalties for manufacturing districts if there is County approval and if the school district agrees to forgo future aid calculated on the amount of increments to be captured. H.F. 2654 (Carruthers): Exempts redevelopment districts from the HACAJLGA penalties. H.F. 3180 (Hausman): Exempts soils correction districts from the aid penalties and makes it easier to qualify as a soils correction district; removes the provision requiring a portion of the local match to be from non-tax increment sources. H.F. 2974 (Jefferson): Extends the interest rate reduction program from twelve to fifteen years for multi-family, rental housing. House Tax Committee Members, Chair-Ann Rest, Vice Chair-Ted Winter, Abrams, Anderson, Carruthers, Dauner, Dawkins, Erhardt, Girard, Goodno, Hugoson, Jacobs, Jaros, Krinkie, Lesley, Long, Macklin, Milbert, Olson, E., Orfield, Osthoff, Ostrom, Peterson, Rukavina, Solberg, Sviggum, Van Dellen, Wagenius, Workman. Unless we speak out, the legislature will continue a trend towards reducing a communities ability to use T.I.F. • Any questions or concerns please contact EDAM Legislative Committee Co-Chairs, Tim Clawson, Yaggy Colby Associates, 507-288-6464 or Pat Connoy, MCDA, 612-673-5193.