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of the State. Tax increment revenues may be collected from an economic dE~velopment district for up to eight years from receipt of the first tax increment. Tax increment revenues may only be used to assist developments where at least 85 percent of the square footage of buildings and facilities are used for (1) manufacturing, (2) warehousing, storage, and distribution of tangible personal property (excluding retail sales), (3) research and development related to the above activities, (4) telemarketing, if that is the exclusive use of the property, and/or (5) space necessary for or related to the above activities. Hazardous substance subdistricts. A hazardous substance subdistrict is an area within a TIF district that consists of parcels containing pollution or contamination. Before an area is designated as a subdistrict, the authority must have entered into an agreement with, and have a development response action plan approved by the Minnesota Pollution Con1trol Agency. This plan must provide for cleanup of the hazardous substances. Revenues from a subdistrict may be used to finance (1) removal of pollution, pollution testing, and/or demolition required by the development response action plan, (2) purchase of environmental insurance, and/or (3) related administrative and legal costs. A hazardous substance subdistrict may last longer than the overlying district. Tax increment revenues may be collected from the subdistrict (1) for 25 years from receipt of the first tax increment from the subdistrict, or (2) the period necessary to recover the costs of the removal or remedial actions, as provided in the development response action plan, whichever is less. Districts created before August 1, 1979 (pre-1979 districts). Before 1979, Minnesota statutes randomly provided public development authorities with tax increment powers. These authorities had vague and often conflicting procedures for the use of TIF. In 1979 the state legislature removed the financing mechanism of TIF from the underlying development statutes and inserted it into a separate act, the Tax Increment Financing Act, currently codified at Minnesota Statutes, Sections 469.174 - 469.1799. The Tax Increment Financing Act took effect on August 1, 1979. Districts created prior to the Tax Increment Financing Act are referred 19