HF2585

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.