HF157

The bill H.F. No. 157 aims to modify laws related to tax increment financing specifically for the city of Maplewood in Minnesota. It introduces special rules for redevelopment tax increment financing districts within a designated project area known as the 3M Renovation and Retention Project Area.

Key points of the bill include:

1. Eligibility: The bill overrides the usual qualifications required for establishing redevelopment tax increment districts for the specified project area.

2. Exemption from existing rules: Certain rules that apply statewide are suspended for the project area, including limits on how much tax increment money can be spent outside the district and the requirement that projects commence within a certain timeframe.

3. Extension of Time: It extends the time period for certain spending requirements from five to ten years, focusing all project expenditures within a defined geographic area around the project.

4. Activity Requirements and Penalties: If no development activity such as demolition, rehabilitation, or renovation starts within a year of establishing the district's tax capacity, additional tax increments cannot be collected until such activities begin. If activities are subsequently started, they must be proven to the county auditor to include the increased values in the tax increment calculations.

5. Expiration: The authority to approve and establish tax increment financing plans under this special rule will expire on December 31, 2018.

Overall, the bill is targeted at making it easier for Maplewood to support and expedite redevelopment through favorable financing rules, specifically catering to the strategic development requirements of the 3M Project Area.