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ATTACHMENT A EXPLANATION OF SPECIAL LEGISLATION FOR TWIN LAI�S REDEVELOPMENT AREA Special legislation covers only the 280 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 Twin Lakes The City may create one or more tax increment financing districts ("TIF District") within the Twin Lakes Redevelopment Area provided that the TI�' District qualifies as either a redevelopment or soils condition TIF District. 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 be�n extended to a Nine Year Rule. Within nine (9) years from the date of certification of a 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 Increment") is pledged for debt service; or c. the City must contract with a third party for services to be provided for which payment will 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. �. The City has no pooling limitations (Minnesota Statutes, Section 469.1763, Subd. 2)) on the tax increment generated from TIF Districts located within the Twin Lakes Redevelopment Area. The City has twenty (20) years in which it can utilize unlimited pooling among the TIF Districts within the Twin Lakes Redevelopment Area. The City has no local tax rate limitation (Minnesota Statutes, Section 469.177, Subd. la)) when calculating the amount of tax increment to be generated. Currently the local tax rate is certifiedwhen a TIF District is created, effectivelyfreezing that rate far the term of the TIF District. Under the Special Legislation, the local tax rate would "float"; each year's tax increment calculationwould utilize that year's current local t� rate. �. The City can create TIF Districts within the Twin Lakes Redevelopment Area through December 31,2014. All provisions of the Tax Increment Financing Act apply to the TIF Districts with the exception of the Special Legislationprovisions. �s- 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 does not require County approval for the creation of each TIF District.