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2021-10-27 WS & Council Meeting Packet
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2021-10-27 WS & Council Meeting Packet
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Housing & Economic Development <br />costburden falls with each of the options compared to the distribution of the benefits <br />of theredevelopment project; <br />SupportTIFforneighborhood recoveryeffortsinthewakeoftheforeclosurecrisis; <br />Consider creating an inter-disciplinary TIF team to review local exception TIF <br />proposals,usingestablishedcriteria,andmakerecommendations tothelegislatureon <br />theirpassage; <br />Encourage the State Auditor to continue to work toward a more efficient and <br />streamlined reporting process. There are an increasing number of noncompliance <br />noticesthat have overturned longstanding practices or limited statutorily defined <br />terms. TheLegislature has not granted TIF rulemaking authority to the State Auditor and <br />the audit powersgrantedby statutearenot anappropriate vehicleformakingadministrative <br />orlegislativechangesto TIF statutes. If the State Auditor is to exercise rulemaking authority, <br />the administrative powerto do so must be granted explicitly by the Legislature. The audit <br />enforcement process does notcreate a level playing field for cities to challenge the AuditorÓs <br />interpretation of statutes. TheLegislature should provide a process through which to resolve <br />disputes over TIF policy that isfairtoallparties; <br />Clarifytheuse ofTIFwhenasale occursafterthe closingofadistrict; <br />Revisethesubstandardbuildingtesttosimplify,resolveambiguitiesandreduce <br />continuedthreatoflitigation;and <br />Amend TIF statutes to address, through extending districts or other mechanisms, <br />shortfallsrelatedtodecliningmarketvalues. <br />Metro Cities supports statutory modifications to TIF statutes to provide temporary <br />flexibility for municipalities in the use of unobligated TIF increment as cities address <br />localrevenue challenges resulting from the COVID-19 pandemic. Metro Cities opposes <br />changestoTIFlawsthatwouldmandatetheforgivenessofloansbyaTIFauthoritytoa <br />business. <br />3-MEminentDomain <br />Significant statutory restrictions on the use of eminent domain have resulted in higher public <br />costs for traditional public use projects like streets, parks, and sewers, and have all but restricted <br />theuse ofeminentdomainforredevelopmenttocasesofextreme blightorcontamination. <br />The proper operation and long-term economic vitality of our cities is dependent on the ability of <br />a city, its citizens,and its businesses to continually reinvest and reinvent. Reinvestment and <br />reinvention strategies can occasionally conflict with the priorities of individual residents or <br />business owners. Eminent domain is a critical tool in the reinvestment and reinvention process <br />and withoutitourcitiesmay deteriorate tounprecedented levelsbefore the public reacts. <br />2022 Legislative Policies <br />37 <br /> <br />
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