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CHAPTER 15 2010 Minn. Laws ch. 216, § 32 Cities have temporary authority to spend. TIF funds to stimulate construction amending Minn. Stit. § 469. 176, adding subd. 4m. u.sing economic development districts for any type of prqj'ect, if three conditions are met: • The municipality fund.s prqj ects that will create new.) obs in the state, inclu.d.ing construction Jobs, and. the prQ' ect otherwise would. not have begun before July 1, 2011, without assistance. • Construction of the prqject begins no later than July 1, 2011. • The request for certification is made by June 30, 2011. This temporary authority to spend. the tax increment expires Dec. 31, 2011. Minn. Stat. § 469.175, subd. 5. The city u.sing TIF must report annually to the county board., the county au.d.itor, the school board., and. the state au.d.itor as to the status of the TIF district or districts and. publish the report. The state au.d.itor has established. a u i f orm system of accountI ng and. financial reporting for TIF d.I 'strI cts. The city must annually submit to the state au.d.itor a financial report in compliance with these standard.s. Minn. Stat. § 469. 17 7 1, subds. 1, The state au.d.itor may au.d.it TIF districts. If the state auditor notifies a TIF 2b. authority of an alle, ed. violation, a copy of the notice is also forwarded. to the county attorney. If no corrective action is brought within one year, the 'f I I county attorney must noti y the state auditor, who then not'fies the attorney general. If the attorney general find.s a substantial violation, the attorney general will petition the state tax court to suspend. the authority's power to u.se TIF for a period. of up to five years. Minn. Stat. § 469.177, subd. 8. The TIF agreement with the developer is a complex document. Assistance Lake Superior Paer Indus. i,�. State, 624 N.W.2d 254 (Minn. from a financial advisor and. the city attorney is necessary in order to 2001). Bivokfield Tr. ade Centei-, anticipate the many potential problems. An agreement can establish a b7c. i,�. County oj'Ranisey, 609 minimum market value for tax incre ment assessment purposes, as well as N.W.2d 868 (Minn. 199�8). provide that the developer pay a certain level of taxes regardless of any classification rate changes or levy decreases The agreement should. be entered. into before the assembly and. acquisition of the land. on which the completed. improvements are to be located.. See Minn. Stat. § § 4 9.177, The 2001 tax reform legislation, which reduced. class rates and. provided. for subds. 11, 11; 46 9 . 17 7 1, subd. I 469. 1791; 469. 1 793; 469�. 1 79�9�; the state takeover of the general education levy, resulted. in several changes and 469. 1814. to various statutes to accommodate the changes. These changes considerably reduce the continued. viability of TIF in the future. Minn. Stat. § 469.174. The law imposes a 180-day statute of limitations on actions to challenge the creation or modification of a TIF district. The law is complex inclu.d.ing a "but-for" finding before a city approves a TIF plan and. the creation of a TIF district. Cities must follow statutory require ments as to administrative expenses, plan modifications, reporting require ments, u.se of increment in pre-1979 districts, excess increments, pool, and. decertification, among other things. Minn. Stat. § 469.175. Before a district can be created., the law requires a detailed. estimate of the impact of a proposed. district on city-provided. services, such as police and. fire protection, public infrastructure, and. borrowing costs attributable to the district I in ad.d.ition to other complex estimations must be prepared.. 15:16 LEAGUE OF MINNESOTA CITIES This chapter last revised 12/2010