Bill Text: MN HF2583 | 2011-2012 | 87th Legislature | Introduced
Bill Title: City of Maple Grove; soil deficiency tax increment financing district subject to special rules creation authorized.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2012-03-14 - Division action, to pass and return to Taxes [HF2583 Detail]
Download: Minnesota-2011-HF2583-Introduced.html
1.2relating to taxation; authorizing the city of Maple Grove to create a soil
1.3deficiency tax increment financing district subject to special rules.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
1.6DISTRICT.
1.7 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.8have the meanings given to them.
1.9(b) "City" means the city of Maple Grove.
1.10(c) "Project area" means the area in the city commencing at a point 130 feet East and
1.11120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township
1.12119, Range 22, Hennepin County, said point being on the easterly right-of-way line of
1.13Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane
1.14a distance of 900 feet; thence easterly to the east line of Section 23, 1,030 feet North
1.15from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East
1.16a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence
1.17northerly to a point on the northerly right-of-way line of 81st Avenue North, 650 feet
1.18westerly measured at right angles, from the east line of the Northwest Quarter of Section
1.1924; thence North 13 degrees West a distance of 795 feet; thence West to the west line of
1.20the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees
1.21West to the south line of the Northwest Quarter of the Northwest Quarter of Section 24;
1.22thence West along said south line to the east right-of-way line of Zachary Lane; thence
1.23North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
1.24Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of
2.1said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition;
2.2thence South along the east line of said Outlot A and its southerly extension to the south
2.3right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the
2.4south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the
2.5Northeast Quarter of Section 24; thence South along said east line to the north line of the
2.6South Half of the Northeast Quarter of Section 24; thence East along said north line to
2.7the westerly right-of-way line of Jefferson Highway North; thence southerly along the
2.8westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence
2.9continuing South along the west right-of-way line of Pilgrim Lane North to the westerly
2.10extension of the north line of Outlot A, Park North Fourth Addition; thence easterly
2.11along the north line of Outlot A, Park North Fourth Addition to the northeast corner
2.12of said Outlot A; thence southerly along the east line of said Outlot A to the southeast
2.13corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park
2.14North Fourth Addition to the westerly right-of-way line of State Highway 169; thence
2.15southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way
2.16line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its
2.17intersection with the southerly extension of the easterly right-of-way line of Zachary Lane
2.18North; thence northerly along the easterly right-of-way line of Zachary Lane North and
2.19its northerly extension to the north right-of-way line of CSAH 130; thence westerly,
2.20southerly, northerly, southwesterly, and northwesterly to the point of beginning and there
2.21terminating, provided that the project area includes the rights-of-way for all present and
2.22future highway interchanges abutting the area described in this paragraph.
2.23(d) "Soil deficiency district" means a type of tax increment financing district
2.24consisting of a portion of the project area in which the city finds by resolution that the
2.25following conditions exist:
2.26(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
2.27the district require substantial filling, grading, or other physical preparation for use; and
2.28(2) the estimated cost of the physical preparation under clause (1), but excluding
2.29costs directly related to roads as defined in Minnesota Statutes, section 160.01, and
2.30local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1,
2.31clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land
2.32before completion of the preparation.
2.33 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
2.34financing plan for a district, the rules under this section apply to a redevelopment
2.35district, renewal and renovation district, soil condition district, or soil deficiency district
2.36established by the city or a development authority of the city in the project area.
3.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special
3.2rules under this subdivision, the city must find by resolution that parcels consisting
3.3of at least 80 percent of the acreage of the project area, excluding street and railroad
3.4rights-of-way, are characterized by one or more of the following conditions:
3.5(1) peat or other soils with geotechnical deficiencies that impair development of
3.6commercial buildings or infrastructure;
3.7(2) soils or terrain that requires substantial filling in order to permit the development
3.8of commercial buildings or infrastructure;
3.9(3) landfills, dumps, or similar deposits of municipal or private waste;
3.10(4) quarries or similar resource extraction sites;
3.11(5) floodway; and
3.12(6) substandard buildings, within the meaning of Minnesota Statutes, section
3.13469.174, subdivision 10.
3.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
3.15the relevant condition if at least 70 percent of the area of the parcel contains the relevant
3.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
3.17substandard buildings if substandard buildings occupy at least 30 percent of the area
3.18of the parcel.
3.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision
3.203, is extended to ten years for any district, and Minnesota Statutes, section 469.1763,
3.21subdivision 4, does not apply to any district.
3.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
3.23469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue
3.24derived from tax increments paid by properties in any district, measured over the life of
3.25the district, may be expended on activities outside the district but within the project area.
3.26(f) For a soil deficiency district:
3.27(1) increments may be collected through 20 years after the receipt by the authority of
3.28the first increment from the district; and
3.29(2) except as otherwise provided in this subdivision, increments may be used only to:
3.30(i) acquire parcels on which the improvements described in item (ii) will occur;
3.31(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
3.32additional cost of installing public improvements directly caused by the deficiencies; and
3.33(iii) pay for the administrative expenses of the authority allocable to the district.
3.34(g) Increments spent for any infrastructure costs, whether inside a district or outside
3.35a district but within the project area, are deemed to satisfy the requirements of paragraph
3.36(f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j.
4.1(h) The authority to approve tax increment financing plans to establish tax increment
4.2financing districts under this section expires December 31, 2022.
4.3EFFECTIVE DATE.This section is effective upon compliance with Minnesota
4.4Statutes, section 645.021, subdivision 3.
1.3deficiency tax increment financing district subject to special rules.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
1.6DISTRICT.
1.7 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
1.8have the meanings given to them.
1.9(b) "City" means the city of Maple Grove.
1.10(c) "Project area" means the area in the city commencing at a point 130 feet East and
1.11120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township
1.12119, Range 22, Hennepin County, said point being on the easterly right-of-way line of
1.13Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane
1.14a distance of 900 feet; thence easterly to the east line of Section 23, 1,030 feet North
1.15from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East
1.16a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence
1.17northerly to a point on the northerly right-of-way line of 81st Avenue North, 650 feet
1.18westerly measured at right angles, from the east line of the Northwest Quarter of Section
1.1924; thence North 13 degrees West a distance of 795 feet; thence West to the west line of
1.20the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees
1.21West to the south line of the Northwest Quarter of the Northwest Quarter of Section 24;
1.22thence West along said south line to the east right-of-way line of Zachary Lane; thence
1.23North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
1.24Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of
2.1said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition;
2.2thence South along the east line of said Outlot A and its southerly extension to the south
2.3right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the
2.4south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the
2.5Northeast Quarter of Section 24; thence South along said east line to the north line of the
2.6South Half of the Northeast Quarter of Section 24; thence East along said north line to
2.7the westerly right-of-way line of Jefferson Highway North; thence southerly along the
2.8westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence
2.9continuing South along the west right-of-way line of Pilgrim Lane North to the westerly
2.10extension of the north line of Outlot A, Park North Fourth Addition; thence easterly
2.11along the north line of Outlot A, Park North Fourth Addition to the northeast corner
2.12of said Outlot A; thence southerly along the east line of said Outlot A to the southeast
2.13corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park
2.14North Fourth Addition to the westerly right-of-way line of State Highway 169; thence
2.15southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way
2.16line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its
2.17intersection with the southerly extension of the easterly right-of-way line of Zachary Lane
2.18North; thence northerly along the easterly right-of-way line of Zachary Lane North and
2.19its northerly extension to the north right-of-way line of CSAH 130; thence westerly,
2.20southerly, northerly, southwesterly, and northwesterly to the point of beginning and there
2.21terminating, provided that the project area includes the rights-of-way for all present and
2.22future highway interchanges abutting the area described in this paragraph.
2.23(d) "Soil deficiency district" means a type of tax increment financing district
2.24consisting of a portion of the project area in which the city finds by resolution that the
2.25following conditions exist:
2.26(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
2.27the district require substantial filling, grading, or other physical preparation for use; and
2.28(2) the estimated cost of the physical preparation under clause (1), but excluding
2.29costs directly related to roads as defined in Minnesota Statutes, section 160.01, and
2.30local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1,
2.31clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land
2.32before completion of the preparation.
2.33 Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
2.34financing plan for a district, the rules under this section apply to a redevelopment
2.35district, renewal and renovation district, soil condition district, or soil deficiency district
2.36established by the city or a development authority of the city in the project area.
3.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special
3.2rules under this subdivision, the city must find by resolution that parcels consisting
3.3of at least 80 percent of the acreage of the project area, excluding street and railroad
3.4rights-of-way, are characterized by one or more of the following conditions:
3.5(1) peat or other soils with geotechnical deficiencies that impair development of
3.6commercial buildings or infrastructure;
3.7(2) soils or terrain that requires substantial filling in order to permit the development
3.8of commercial buildings or infrastructure;
3.9(3) landfills, dumps, or similar deposits of municipal or private waste;
3.10(4) quarries or similar resource extraction sites;
3.11(5) floodway; and
3.12(6) substandard buildings, within the meaning of Minnesota Statutes, section
3.13469.174, subdivision 10.
3.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
3.15the relevant condition if at least 70 percent of the area of the parcel contains the relevant
3.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
3.17substandard buildings if substandard buildings occupy at least 30 percent of the area
3.18of the parcel.
3.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision
3.203, is extended to ten years for any district, and Minnesota Statutes, section 469.1763,
3.21subdivision 4, does not apply to any district.
3.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
3.23469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue
3.24derived from tax increments paid by properties in any district, measured over the life of
3.25the district, may be expended on activities outside the district but within the project area.
3.26(f) For a soil deficiency district:
3.27(1) increments may be collected through 20 years after the receipt by the authority of
3.28the first increment from the district; and
3.29(2) except as otherwise provided in this subdivision, increments may be used only to:
3.30(i) acquire parcels on which the improvements described in item (ii) will occur;
3.31(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
3.32additional cost of installing public improvements directly caused by the deficiencies; and
3.33(iii) pay for the administrative expenses of the authority allocable to the district.
3.34(g) Increments spent for any infrastructure costs, whether inside a district or outside
3.35a district but within the project area, are deemed to satisfy the requirements of paragraph
3.36(f) and Minnesota Statutes, section 469.176, subdivisions 4b and 4j.
4.1(h) The authority to approve tax increment financing plans to establish tax increment
4.2financing districts under this section expires December 31, 2022.
4.3EFFECTIVE DATE.This section is effective upon compliance with Minnesota
4.4Statutes, section 645.021, subdivision 3.
