HF160

The legislative bill pertains to amending tax increment financing (TIF) rules specifically for a defined project area within the city of Maple Grove, Minnesota. The amendment outlines that certain areas within the city may qualify as a "soil deficiency district," which indicates they have unique soil or terrain issues requiring significant preparation before development can proceed.

The bill describes in detail the boundaries of the project area and explains that this area can include current and future highway interchanges, plus additional necessary properties. Within these boundaries, if over 80% of the land suffers from conditions like unusual terrain or soil deficiencies leading to high preparation costs exceeding the land's market value before improvements, it can be designated as a soil deficiency district.

For such districts, this bill allows for more extended TIF revenue collection of up to 25 years and permits these funds to be used for three main purposes: 1. Acquisition of parcels where improvements are needed. 2. Correction of soil and terrain issues and associated public improvements. 3. Administrative expenses related to the district.

The bill also provides guidelines on how increment funds can be used outside of the specific TIF district but within the project area, with no more than 40% of TIF revenues being allowed for such external use over the lifetime of the district.

The legislation points out that increments spent on infrastructure, whether within the TIF district or the broader project area, must comply with state legal requirements. The authority for the city to create such TIF plans and districting as outlined will expire on June 30, 2020, emphasizing the time-limited nature of this entitlement.