HF160 (Legislative Session 94 (2025-2026))
Tax increment financing; special rules authorized for the city of Maple Grove.
Related bill: SF65
AI Generated Summary
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.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section refers to the definition of roads within the Minnesota Statutes, used to classify costs directly related to infrastructure developments in a tax increment financing district.",
"modified": []
},
"citation": "160.01"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section outlines the improvements permitted within tax increment financing projects, listing specific improvements related to the development in Maple Grove.",
"modified": []
},
"citation": "429.021"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section pertains to the improvements and management of public improvements and districts under the law.",
"modified": []
},
"citation": "430.01"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This statute defines substandard buildings for the purpose of determining eligibility and conditions within tax increment financing districts.",
"modified": []
},
"citation": "469.174"
},
{
"analysis": {
"added": [
"Extension of the five-year rule to 13 years.",
"Provision allowing 40% revenue use outside the district but within the project area."
],
"removed": [],
"summary": "This section addresses the rules regarding the duration and limitations of tax increment districts, with amendments extending certain periods.",
"modified": []
},
"citation": "469.1763"
},
{
"analysis": {
"added": [
"Provision deeming infrastructure costs as satisfying statutory requirements."
],
"removed": [],
"summary": "This statute regulates the requirements and restrictions on spending increments within and outside tax districts, with specific allowances for infrastructure costs in the Maple Grove project.",
"modified": []
},
"citation": "469.176"
}
]