CR 95-139 Approval Of Law District 1-1
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. July 25, 1995 0 P 1\ \ " Council Report 95-139
APPROVAL OF SPECIAL LAW REGARDING EXTENSION OF COLLECTION OF
TAX INCREMENTS FROM TAX INCREMENT DISTRICT 1-1
Proposed Action.
Staff recommends adoption of the following motion: Move to approve Resolution 95-66.
approving special legislation as per Minnesota State Statute Chapter 469. Article 5. Sections 35 &
38 (collection of Tax Increments-- TIF District 1-1).
Adoption of this motion will bring the City into compliance with the provision which requires the
governing body of the local governmental unit to approve special legislation.
Overview.
Within the 1995 legislative session, the City requested the state to allow a special provision which
would effectively extend the amount of time within which the City could collect tax increments
from Tax Increment District 1-1.
e The City is unable to generate tax increments beyond the year 2001 for use for anything other
than to pay outstanding bonded indebtedness. The special legislation which was approved during
the 1995 session would allow the City to collect tax increments until the year 2009 to finance
eligible development activities, other than to pay outstanding bonded indebtedness.
Minnesota State Statute 469, Article 5, Sections 35 & 38, requires that the governing body
approve by resolution any special laws which were passed by the Legislature prior to taking
advantage of the special legislation. If the municipality fails to approve the special legislation
before the first day of the next regular session of the Legislature, the special legislation is deemed
to be disapproved.
SUDDortill1! Documents.
o Law requiring approval of the special legislation.
o Special legislation affecting TIP District 1-1.
o Resolution 95-66.
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e (Paul T. Steinman
Community Development Specialist
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CITY OF HOPKINS
. Hennepin County, Minnesota
RESOLUTION NO. 95-66
RESOLUTION APPROVING SPECIAL LAW AS RECORDED IN
MINNESOTA STATE STATUTE CHAPTER 469, ARTICLE 5, SECTIONS 35 & 38.
WHEREAS, the Hopkins City Council unanimously supported achieving special
legislation affecting Tax Increment Finance District 1-1 in Hopkins; and
WHEREAS, tax increments would no longer have been able to be used for any
purpose other than to retire bonds after the year 2001 in Tax Increment Finance District
1-1: and
WHEREAS, the Hopkins City Council desires to continue to utilize tax increments
beyond the year 2001 until the year 2009 to assist commercial property owners by
providing financial incentives and other necessary improvements which are allowed
as indicated in the Tax Increment Financing plan for this district: and
WHEREAS, the state Legislature has agreed to allow for such extension of
. collection of tax increments between the years 2001 and 2009: and
WHEREAS, the Hopkins City Council is now required under Minnesota State
Statute Chapter 469, Article 5, Sections 35 & 38, to approve, by resolution, the special
legislation which allows for this extension.
NOW THEREFORE, BE IT RESOLVED by the Hopkins City Council that it approves
the special legislation as recorded in Minnesota State Statute Chapter 469, Article 5,
Sections 35 & 38.
Adopted this 1 st day of Auqust ,1995.
Charles D. Redepenning, Mayor
ATTEST:
. James A. Genellie, City Clerk
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, I
OS/22/95 (REVISOR ] JMR/DK CCRBP1864 .
. 1 (b) The re$pen,ibi:it1~fot~finane~~i-ana-eo=~=i8ftee
2 a=di~in~-e! state auditor ~ay exami~e and audit PQli~ieal
3 subdivisions' use of tax increment financing remai"~-.~th-the
4 sta~e-aadi~cr. Without previous notice, the state auditor ma~
5 examine ot audit accounts and records on a random basis as the
6. auditor deems to be in the public interest. If the state
7 auditor ~lrias evidence that an authority or municipality has
8 violated a provision of the law for Which a remeay is provided
9 under this section. the state auditor shall forward the relevant
10 information to the eommrssionet-of-r~.enae~--ihe-eo~~s$ioner-oE
11 te.cn~e-mar-a~d%~-sn-au~ho~i~rLs-ase-of-~ax-ineremeft~
12 Eiftsftc%ftg county attorney. Tne eo~nty attorney may brinq an
13 action to enforce the provisions of sections 46~v174 to 469.179
14 or related provisions of this chapter, for matters referred by
15 the state auditor or on behalf of the county.
16 Ie) If lhe state auditor finds an authority is not in
. 17 eompliance with sections 469.174 to 469.179 or related
18 proviSions of law, the auditor shall notify the 90verninq body
19 of the municipality that approved the tax increment financing
20 district of its findings. The qoverninq body of the
21 municipality must respond in writing to the state auditor within
22 60 days after receiving the notification. Its written respons~
23 must state whether the mynieipalitv acc@pts. in whole or part.
24 the auditor's findings. If the municipality does not accept the
2S finaingst the statement must indicate the basis for its
26 disaqr@ement. The state auditor shall annually summarize the
27 responses it receives under ~his se~tion and send the su~ary
28 and copies of the responses to the ehairs of the committees of
29 the l@qislatur@ with jurisdiction over tax increment finan~inq.
)0 Sec. 3~. (469.1782] [SPECIAL LAW PROVISIONS.]
31 Subd1visio" 1. (ELEC~ION.l If a special law allows an
32 extension of the duration ii_it of an existing tax 1nerem@~t
. 33 financinq district under section 469.1'6 or allows establishment
34 of a new district with a lonqer duration limit than permitted by
3S qeneral law. the =unici~ality must elect, by resolution, that
36. the district is subject to either:
Artiele 5 Section 3S lGO
OS/22/95 [il.EVISOa l JMR/OlC CCRRF1864
. . 1 III the adjustment to adjust~d net tax capa~ity for the
2 school distriet under section 1; or
:3 (2) the reduction in state ta~ increment fin.neinq aid
.. under section 213.1399, subdiqision 8.
S ~hls election is irre~ocable and must oe made before the
6 extension is submitted by the municipality to the school
7 dis~rict'~or approval under subdivision 2. !f the municipality
B fails to make an election before submittinq the ~~tt@r to the
9 school district. the municipality is deemed to ha~e elected
10 clause Il}.
11 subd. 2. [LOCAL APPROVAL OF SPECIAL tAHS.] (a) If a
12 speeial la~ allows an extension of the duration limit of an
13 existinq tax increment finanein9 distriet under seetion 469.176
14 or allows establishment of a new d1st~ict with a lonqer duration
.
15 limit than that permitted by qeneral law, the "affect~d local
16 governme~t units." for purposes of section 645.02l and artiele
. 17 XU, sectiol. 2. of the Minnesota Constitution. include the city ~
18 Ot town, the sehool district. and th~ county in which ~he tax
19 increment district is located. The to~n board may act to
r 20 approve the special lav.
21 (b) The ehief clerical officer of the municipalitx must. as
22 SOon after the affected local units have approved the special
23 law allo~ing an extension, fil@ with the secretary of state a
24 certificate stating the essential facts necessary to valid
25 approval. including a co~y of each of the resolutions of
26 approval by the city or ~own. the sehool district. and the
27 county. The attorney general shall prescribe the form of the
28 c.rt1ficat@ and the secretary of state shall furnish copies. If
29 the municipalit~ fails to file a certificate of approval before
30 the first day of the n~xt regul~r session of the legiSlature,
31 the extension of the duration is deem~d to be disap~rove~
32 un1@ss the special law allows a lonqer ~eriod for approval. If
I
I 33 the law contains other provisions~besides an extension of the
. I
! 34 dura~ioD and the mUnici~ality otherwi$e complies' with seetion
35 645.021. the reGt of the law tak~s effect.
36, Sec. 36. (TAX tNCREMENT FINANCING DISTRICT EXTENSION.)
Article S Section 36 161
OS/22/95. [REVISOR 1 JMR/OK CCRRP1S64
. 1 subdivision 1. [AutaORIZATION.] Notwithstanding Minnesota .
2 statutes, section 469.176. subdivision le. the St. Loui5 Park
3 economic development au~hority may collect and expend tax
4 increments trom the Excelsior Boulevard Redevelopment Project
5 and Oak park Village tax increment financinq districts (Hennepin
G county project numbers 1300 and 1301. respectively) located
7 within t1re'eity of St. Lo~is Park. after April 1. 2001. for
B eli9ible activities within the r@develoDment area. The
9 authority under this section expires Au~ust 1. 2009.
10 Subd. 2. [LOCAL APPROVAL.} This section is effective u~on
11 oompliance with Kinnesota statutes, s@ctions 469.1782,
12 subdivision 2. and 645.021. subdivision 3.
13 Sec. 37. [CITY OF BASTINGS~ DISTRICT EXTENSION.]
14 Subdivision 1. [AOTBORIZATION.] Notwithstandinq the
p~ovi5ion$ of Minnesota Statutes, section 469.176. subdivision I
15
16 le, the housin9 and redevelopment authority may collect and
. 17 e~ena tax inc~ements from the downto"n redevelopment tax
18 increment financing district. located within the city of
19 Bastings, after A~ril 1, 20011 for eligible activities within
20 the district. the authority under this section expires December
21 31. 2006.
22 $ubd. 2. [~FFEeTIVE DATE.] This section is effective upon
23 compliance with Minnesota Statutes, sections 469.1782.
24 subdivision 2. and G4S.021. su~ivision 3.
25 Sec. 38. [CITY OF HOPKINS: TAX INCReMENT DISTRICT.)
* 26 Subdivision 1. [DURATION.) Notwithstanding the provision$
27 of Minnesota Stat~t~s, section 4G9.176. subdivision Ie. tax
28 increment oollected by the housing and redevelopment authority
29 in and fo~ ~he city of Hopkins from tax in~rement finanei~
30 distriot no. 1-1 may b@ expended by the authority or the city of
31 Hopkins to ~y o~ defease (1) bonds or obligations issued within
32 two years after the effective date of this section. or (2) bonds
. 33 issued to refund the prineipal of the outstandinq bonds and pay
34 associated issuance costs, provided the average ~turity of the
35 refundinq bonds does not exceed the bonds refunded. ~ax
3~ increment from district no. 1-1 will not be paid to the
Article 5 Section 38 162
" OS/22/95 [REVISOR. J JMR/DK CCRln"1864
. 1 authority aft@r Auqust 1, 2009.
2 Subd. 2. [EFFECTIVE DATE.] This'section is eff~ctive upon
3 compliance with Minnesota Statu~es, sections 469.1782,
4 subdivision 2. and 645.021. subdivision 3.
Sec. 3g. !SWIFT COONTY RURAL DEVELOPMENT FINANCE
6 AU'1'B:ORI'l'Y. J
7 SQbdiVislon 1- [ESTABLISHMENT.] The Swift county board
8 may, by adoptinq a written enabling resolution. establish a
9 county rural development tinanc@ authority that. subject to
10 subdivision 2. has the following powers: powers of an economic
11 development authority under Minnesota Statutes, sections 469.090
12 to 469.107; and powers of a rural development financing
13 authority under sections 469.142 to 469.151.
14 SuM. 2. {ECONOMIC DEVELOPXENT AUTBOR!TY POWERS.] If the
,
I 15 county rural development finance authority exercises the powers
16 of an @conomic 4e~elopment authority, the county may e~ercise
. 17 all of the powers relating to an economic d@v@lo~ment authoritt"
18 granted. to a ci~y under Minnesota Statutes, sections 469.090 to
19 469.108. except for the authority to issue general obligation I
20 bonds under Minnesota Statutes. section 469.102. The l@vy
21 imposed by the county board under Minnesota Statutes, section
22 469.107. may be levied in addition to levies otherwise
23 authorized by law. The county rural development finance
24 authority may create and define the boundaries of economic
25 develop~ent districts at any place Or places within the county.
26 Hinnesota statutes, section 469.174. sub~ivision 10, ana the
27 contiguity requirement specified under Minnesota Statutes.
28 seetion 46'.101, subdivisiQn 1, do not apply to limit the areas
29 t~~t ~ay be des19nated a$ county economic develo~ment districts.
30 SuM. 3. [LrMI~ OF POWERS.] (a) The enabl1nq re$olution
31 may impose the following limits on the actions of the authority:
32 (1) that the 4uthority may not exercise any of the powers
. 33 eontained in subdivision 1 unless thos~ powers are s~@cificall~
34 authorized in the enabling resolution~ Dnd
35 (2) any other limitation or control established by the
36 county board by the enabling resolution.
.l\rt:icle S Sec:ticn 39 163
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