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ATTACHMENT E EXPLANATION OF SPECIAL LEGISLATION FOR TWIN LAKES REDEVELOPMENT AREA Special legislation covers only the 170 -acres in the Twin Lakes Redevelopment Area. Included below is a brief synopsis of the proposed legislation needed to assist in the successful redevelopment of Turin Lakes The City may create one or more tax increment financing districts ( "`TIF District ") within the Twin Lakes Redevelopment Area provided that the TIF District qualifies as either a redevelopment or sails condition TIF District. 2. The City must indicate at the time a TIF District is created that ' it is being created under the rules contained in the Special Legislation. 3. The Five Year Rule (Minnesota Statutes, Section 469.1763, subd. (3)) has been extended to a Nine Year Rule. within nine (9) years from the date of certification of TIF District: a, the City must pay for all qualifying expenses; or b. the City must issue bonds for which tax increment generated after the nine year limit ( "Future Tax I.ncrement11) is pledged for debt service; or C. the City must contract with a tbird party for services to be provided for which payment wiII be made from Future Tax Increment; or d. an independent party must incur expenses for which it will be reimbursed by the City with Future Tax Increment. 4. The City has no pooling limitations Qdinnesota Statutes, Section 469.1 763, Subd. )) on the tax increment generated from TIC" Districts located within the Twin Lakes Redevelopment Area. The City has twenty (20) gears in which it can utilize unlimited pooling among the TIF Districts within the Twin Lakes Redevelopment Area. 5. The City has no local tax rate limitation (Minnesota Statutes, Section 469.177, Subd. I a)) when calculating the amount of tax increment to be generated. Currently the local tax rate is certified when a TIF District is created, effectively freezing that rate for the term of the TIF District. Under the Special Legislation, the local tax rate would "float "; each year's tax increment calculation would utilize that year's current local tax rate. 6. The City can create TIF Districts within the Twin Lakes Redevelopment Area through December 3 1, 201 4. 7. All provisions of the Tax Increment Financing Act apply to the TIF ]districts with the exception of the Special Legislation provisions. The Special Legislation is effective upon approval by the City and Ramsey County (the "County'), and the City must comply with Minnesota Statutes, Section 645.021, Subd. 3 ("Local Approval Requirements) which requires it to file a Certificate of Approval and a Resolution of Approval with the Secretary of State. The Special Legislation sloes not require County approval for the creation of each TIF District.