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to as pre-1979 districts. Pre-1979 districts did not have duration limits when they were created, so the Tax Increment Financing Act of 1979 established a duration limit of 30 years for these, which means they will all expire no later than 2009. Districts Created after 1990 (Post-1990 Districts). In 1990, the state legislature made changes to the TIF legislation that generally limited what economic development districts can be used for. Before 1990, some cities were using this type of district to build things such as McDonald's restaurants. Since the 1990 legislation changes, economic development districts have to be used for manufacturing, warehousing, research, and/or telemarketing. Towns with populations of less than 5,000 can use these districts for more things than are listed above, however. Minneapolis only has one economic development district (SEMI phase 4) which would have been a redevelopment district, except that the buildings were demolished before the district was approved. According to a study conducted by the state's Office of the Legislative Auditor, approximately 69 of the tax increment districts created by cities and counties after 1990 (post- 1990 districts) assisted manufacturing companies with land acquisition, site preparation, and other public improvements. The Legislative Auditor estimated that about 75% of those manufacturing companies were local businesses that wanted to expand. These businesses had outgrown their existing facilities and were considering options for expanding, including relocating to other Minnesota cities or to other states. While city officials were primarily concerned with retaining existing businesses, about 25% of the manufacturing companies that received TI F assistance were new companies. Approximately 20% of the TIF districts created since April 1990 assisted office developments, ranging from large office and warehouse facilities to small professional office buildings. Another 20% of the post-1990 districts were for housing. Half of these were districts providing low- and moderate-income housing; the other half were redevelopment and soils condition districts for building market-rate housing (Legislative Auditor, 1996) 20