06-26-1995 Council Packet - Laserfiche WebLink

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• The municip ality or authority may request contributions firom the other local government entities that will benefit from the district’s aenvities. The contributions count toward the local share. • If the state contributes to the project costs through a direct grant or similar incentive, the required local contribution is reduced by 50% of the amount of the grant or incentive. • The authority must annually submit a report regarding its local share to the commissioner of revenue. The amount of the local match is based on the type of die district. The authority or municipality must: • Elect at the time of district approval to use the option, • In each year make a qualifying contribution equal to: (1) About 10% of the increment for an economic development, housing or renewal and renovation district (2) About 7 1/2% of the increment for a mined underground space district redevelopment district hazardous substance subdistrict or soils district • The maximum contribution for all districts in the municipality is 2% of the city’s net tax capacity. The local option is effective for new districts and those certified after June 30,1994. The city must choose for districts certified prior to July 1,1995, if it will use the option or pay the penalty. The choice must be made by Dec. 31,1995. Soils Condition District The soils district has been amended to limit the district to the presence of hazardous substance, pollution or contarmnants that require removal or remedial action. Tax increment from the district may be used only to: (1) Acquire parcels; (2) Pay for the cost of removal or remedial action; (3) Pay for administrative costs, including the action response preparation costs. Hazardous Substance Subdistrict A hazardous substance subdistrict is defined in the definition section by a cross-reference to the references in 469.175 subdivision 7. An extended subdistrict is defined to be a hazardous substance subdistrict, but only after the overlying TDF district has been terminated. 1995 Policy Narrative