HF1746

Purpose

• Allow the City of Oakdale to temporarily extend the use of transferred tax increment (the "transferred increment") from specific TIF districts (TIF District No. 14 or TIF District No. 16) through December 31, 2027.
• This extension is allowed despite certain existing rules, provided Oakdale follows a written spending plan adopted under Minnesota Statutes section 469.176, subdivision 4n, paragraph c.

Main Provisions

• Temporary extension eligibility
  • Oakdale may choose to spend, loan, or invest the transferred increment authorized under Minnesota Statutes section 469.176, subdivision 4n, through December 31, 2027, if the transferred increment was collected from TIF District No. 14 or No. 16 and if the use is detailed in a written spending plan adopted under 469.176, subdivision 4n, paragraph c.
• Requirement to return unused funds
  • Any transferred increment that is not spent, loaned, or invested by December 31, 2027 must be returned to the district.
  • The requirement to return includes any proceeds, principal and interest from loans of transferred increment, interest or investment earnings on transferred increment, and any other repayments or returns of transferred increment that remain in the authority’s or municipality’s funds or accounts on December 31, 2027, or that are later received.

Notable Changes / How it Alters Law

• Temporary override: The bill uses a “notwithstanding” clause to permit Oakdale to extend use of the transferred increment beyond the normal limits set in 469.176, particularly for the transferred increment from TIF Districts 14 and 16.
• Time-limited extension: The extension lasts until December 31, 2027, after which any unspent transferred increment must be returned to the district, including all related financial items (proceeds, principal, interest, investment earnings, and other repayments or returns) that are in the authority’s or municipality’s funds or accounts as of that date or received later.

Terms and Mechanisms to Note

• Transferred increment: funds moved or allocated under tax increment financing as allowed by statute.
• TIF District No. 14 and No. 16: specific tax increment financing districts in Oakdale from which the transferred increment must be drawn.
• Written spending plan: a formal plan adopted by Oakdale detailing how the transferred increment will be used, in accordance with 469.176, subdivision 4n, paragraph c.
• Notwithstanding: legal mechanism used to override the usual statutory rule for this temporary exception.
• Tax increment: the increment defined under Minnesota Statutes section 469.174, subdivision 25, including all proceeds and returns related to transferred increment.

Key Statutory References Mentioned

• Minnesota Statutes section 469.176, subdivision 4n
• Minnesota Statutes section 469.174, subdivision 25
• Paragraphs and concepts referenced include 4n, paragraph c (spending plan) and paragraph f (the existing rule being overridden)

Relevant Terms - Tax increment financing (TIF) - Transferred increment - TIF District No. 14 - TIF District No. 16 - City of Oakdale - Temporary extension - December 31, 2027 - Spending plan - Written spending plan - Notwithstanding - Proceeds - Principal and interest - Investment earnings - Loans of transferred increment - Other repayments or returns - Authority or municipality - Minnesota Statutes 469.176 - Minnesota Statutes 469.174_subdivision 25