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<br /> <br />Variations of Tax Increment Financing <br />The Minnesota Tax Increment Financing Act of 1979 allows for the eE,tablishment of <br />several different types of tax increment districts: (1) redevelopment districts, (2) renewal and <br />renovation districts, (3) soils condition districts, (4) housing districts, (5) economic development <br />districts, and (6) hazardous substance subdistricts. <br />Redevelopment districts. The purpose of a redevelopment district is to remove or <br />redevelop blighted buildings or improve marginal land to encourage redevelopment. TIF can be <br />used to assist with the private redevelopment of areas containing substandard structures, <br />including acquiring property, reselling it to private developers, and installing public <br />improvements. Redevelopment districts are limited to blighted areas. <br />Tax increment revenue may be collected from a redevelopment district for up to 25 years <br />from receipt of the first tax increment. At least 90 percent of the tax increment collected from a <br />redevelopment district must be used to eliminate the blight conditions that justified creation of <br />the district. Qualifying expenditures include, but are not limited to, acquisition of sites containing <br />substandard buildings or pollution, demolition of structures, clearing of land, and installation of <br />utilities, roads, sidewalks and parking facilities. <br />Renewal and renovation districts. When the Tax Increment Act of 197'9 was passed, the <br />criteria for a renewal and renovation district were included as criteria for a redevelopment <br />district. In 1990 the Tax Increment Financing Act was amended to establish a new type of <br />district with its own criteria: the renewal and renovation district. <br />The purpose of a renewal and renovation district is similar to that of a redevelopment <br />district, except that the degree of redevelopment may be less, and the activity is more closely <br />related to inappropriate or obsolete land use. Tax increment revenue may bE~ collected from a <br />renewal and renovation district for up to 15 years from receipt of the first tax increment. <br /> <br />17 <br />