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HF2585 (Legislative Session 94 (2025-2026))

St. Paul; special tax increment financing rules authorized.

Related bill: SF2820

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to provide special rules for tax increment financing (TIF) specifically for the city of St. Paul. This type of financing is intended to help revitalize areas in need of development or improvement, particularly in the downtown area as defined by the City's Planning District Number 17, near the Capitol River Council.

Main Provisions

  • Establishment of TIF Districts: The city of St. Paul's housing and redevelopment authority is permitted to establish up to three redevelopment tax increment financing districts in the defined downtown area.

  • Special Rules:

    • At least 50% of the buildings in these districts must be identified as needing substantial renovation or removal due to issues like inadequate street layouts or overcrowding.
    • Tax increment from these districts can be used to demolish buildings and convert these areas into open spaces or public parks.
    • Certain restrictions and limitations present in the general Minnesota TIF statutes are waived for these districts, allowing greater flexibility in using TIF funds.

  • Noncontiguous Parcels: Parcels within these districts are allowed to be noncontiguous, which is an exception to the standard rules.

  • Expiration: The authority to request certification for these TIF districts expires on June 30, 2030, unless at least one district has been certified by then. All authority to request this certification will completely expire by June 30, 2034.

Significant Changes to Existing Law

This bill introduces exemptions to existing Minnesota TIF laws specifically for redevelopment efforts in St. Paul's downtown area. Normally, there are restrictions on how TIF funds can be used and regulations on district layouts. This bill provides greater flexibility, such as allowing for open space conversions and the waiver of several statutory requirements.

Relevant Terms

redevelopment tax increment financing, St. Paul, noncontiguous parcels, public park, substantial renovation, downtown area, waiver of restrictions, certification expiration.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill pertains to tax increment financing and affects how redevelopment districts are assessed for compliance under section 469.174.",
      "modified": [
        "The definition adjustments related to redevelopment tax increment districts in specific parts of St. Paul."
      ]
    },
    "citation": "469.174"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill affects certain operational aspects of tax increment financing districts under section 469.176.",
      "modified": [
        "Overrides specific limitations on noncontiguous parcels and use of increments for public spaces."
      ]
    },
    "citation": "469.176"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifies financial rules related to expenditures and bond payments within tax increment financing under section 469.1763.",
      "modified": [
        "Excludes specified sections from applying to certain financial transactions in the affected districts."
      ]
    },
    "citation": "469.1763"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Adjustments to procedures for district certification under section 469.175.",
      "modified": [
        "Excludes particular procedural requirements concerning the certification of tax increments in St. Paul."
      ]
    },
    "citation": "469.175"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Retains general tax capacity valuation rules but includes specific modifications for parcels in the new districts under section 469.177.",
      "modified": [
        "Requires that land values be certified based on new measures for certain parcels."
      ]
    },
    "citation": "469.177"
  }
]

Sponsors