INFORMATION HRSR 05-03-2010 - Laserfiche WebLink

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Offices in ~{ ~ ~~ ~`~ ~ ~\ j 470 U.S. Bank Plaza 200 South Sixth Sgeet .J Minneapolis Minneapolis MN 55402 Saint Paul G ~~ ~~ ~ ~'~ (612) 337-9300 telephone (612) 337-9310 fax St. Cloud v'v'v'•kennedy-graven.com CHARTERED Affirmative Action Equal Opportunity Employer MEMORANDUM FROM: Mary Dyrseth Jenny Boulton DATE: Apri16, 2010 RE: Jobs Bill -House File 2695 The Jobs Bill (HF 2695), which was passed by the Minnesota legislature and signed into law by the Governor last week, includes several provisions which liberalize the use of tax increment financing in order to stimulate job creation. Three provisions in the Jobs Bill which maybe of interest to the City, but are only available for a limited time, include the following: 1. Compact Development Districts. (a) The Jobs Bill authorizes the establishment of "compact development districts" as a new type of tax increment financing district. A compact development district has a 25 year duration, and must satisfy the following requirements: (i) Parcels consisting of 70% of the area of the district must be "occupied" (at least 15% of a parcel must be covered) by buildings or similar structures that constitute commercial or industrial property; and (ii) The planned development will increase the total square footage of the commercial and industrial buildings by three times or more relative to the square footage of the buildings before the district was approved. (b) Tax increments from a compact development district may be used only to pay the following: (i) Administrative expenses within the 10% limitation; (ii) The costs of acquiring land located in or abutting the district; (iii) Demolition or removal buildings or other improvements and other site preparation costs for land in or abutting the district; and (iv) Installation of public infrastructure or public improvements serving the district, but excluding costs of streets, roads, highways, parking or other 366669v1 MMD KG400-1