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<br />. <br /> <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br /> <br />~. <br /> <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br /> <br />. <br /> <br />Response: To ensure Minnesota is able to continue to effectively compete with other <br />states, the Legislature has a responsibility to partner with cities, state agencies, and other <br />community reinvestment organizations to develop a statewide community reinvestment <br />strategy, and to identify and implement additional tools to fund community reinvestment <br />efforts. The state should partner with cities in community reinvestment activities. State <br />acknowledgment of the need for community reinvestment and economic development is <br />essential to the state's prosperity, and legislation is needed to generate resources sufficient <br />to address these critical needs at the local level. <br /> <br />LE-15. Tax Increment Financing (TIF) (ABH) <br /> <br />Issue: Until the state identifies and implements additional development tools, TIF <br />remains the most viable tool available to fund community reinvestment efforts despite the <br />significant impacts of the 2001 property tax reform package. Cities and development authorities <br />will be required to devote considerable efforts in order to understand and address the impacts of <br />the 2001 property tax reform package on existing TIF districts and potential future projects. <br /> <br />Response: So as to not further complicate this process, the Legislature should not <br />enact future TIF law restrictions during the 2003 legislative session. In order to allow TIF <br />to maintain the effeCtiveness that remains in the wake of the 2001 property tax reform <br />package, the Legislature should consider: <br /> <br />Authorizing any tax increment districts approved after April 1, 1990, to pool <br />increments in the same manner as districts certified prior to April 1, 1990, for <br />affordable housing and pollution remediation. <br /> <br />· Expanding the use of TIF to assist in the development of technological infrastructure, <br />transit-oriented development, the restoration of designated historic stru<;tures, for non- <br />retail commercial projects, and in non-wetland areas where unstable/non-buildable <br />soils exist. <br /> <br />· Modifying various provisions in order to better facilitate redevelopment activities. <br /> <br />· Authorizing TIF districts to share in the state property tax. <br /> <br />· Modifying the housing district income qualification level requirements to allow the <br />levels to vary according to those specific to individual communities. <br /> <br />LE-16. Timeframe for TIF District Establishment Legal Challenges (ABH) <br /> <br />Issue: Recent Minnesota court decisions might expose TIF district establishment <br />detenninations to legal challenges for an unlimited period of time. <br /> <br />Response: The Legislature should enact a practical timeframe consistent with that <br />provided in the law governing special assessments limiting the period during which such <br />legal challenges may be brought. This timeframe could include provisions requiring <br />increased public notice and hearings. <br /> <br />15 <br />