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CONFIDENTIAL ATTORNEY/CLIENT PRIVILEGED COMMUNICATlON- NOT TO BE DISCLOSED Kurt Ulrich - Executive Director Economic Development Authority June 10, 2005 Page 2 Based upon revisions made at the request of and by the legislative bodies, the following are the details of the special legislation the State approved as part of the Public Finance Bill (Chapter 152, Article 2, Section 26): i. Creation of one (I) or more Economic Development Districts with a term(s) of 25 years ii. The TIF District(s) must be located on property that was exempt from tm<es payable in 2005 iii. Extension of the 5-year rule requirement for development to 10 years (ability to incur T1F eligible costs) iv. Limitation on spending TIF outside the district does not apply (pooling) v. Limitation of spending increment for development with more than 15 percent of the square footage for office does not apply vi. Increment may be speut on acquisition and removal of existing billboards, land and easements~ sanitary sewer, sewer and water improvements, road improvements, parking (including structured parking), administrative expenses, wetland mitigation, soils correction ~d environmental clean up vii. Increment may be expended on areas located outside of the T1F District for sanitary sewer, sewer and water improvements and improvements to Coral Sea Street, Airport Road, 82" Lane NE, County Road J, US Highway 10 and Interstate Highway 35W so long as the improvements are related to development within the development area viii. The City may elect if Fiscal Disparities will be paid inside or outside of the district ix. The EDA's authority to create a T1F district under this special legislation expires on December 31, 2015 The legislation will become effective after approval by the City, County and School District. The City will be considering approvai of the legislation at the June 27, 2005 meeting. Staff and consultants have met with both County and School representatives and they have stated that their respective boards will consider approval at their June 28, 2005 board meetings. After approval of the legislation by the respective bodies, it is understood that the City and EDA will begin the process of creating a T1F plan and holding public hearings on the creation of the District prior to closing on the property. b. Sale oHormer MNDOT Prooertv. The City received title to 40.41 acres from the State of Minnesota in 1988, which contained a right of reverter clause in favor of the State. This SJR-26396Svl MU205-30