HF2839

Purpose of the Bill

This bill is designed to provide special tax increment financing (TIF) rules for the city of Minneapolis, specifically targeting parts of the downtown area that require redevelopment.

Main Provisions

• Creation of TIF Districts: The Housing and Redevelopment Authority of Minneapolis is allowed to establish up to three redevelopment TIF districts within the defined downtown area.

• Special Rules for Tax Increment Financing:

  • The districts can bypass certain state requirements if at least 50% of the buildings need major renovation or clearance due to issues like poor street layouts, overcrowding, or significant building vacancy.
  • Buildings cleared may be used for open spaces or public parks.
  • Specific exemptions are made from Minnesota statutes limiting how the tax increment can be used, particularly those that would otherwise restrict expenditure for infrastructure or bonds related to urban development.

• Certification and Expiry:

  • The value of the land for tax purposes is to be set by the county auditor when these districts are established.
  • The authority to request the certification of these districts ends on June 30, 2030, unless at least one district is certified by that date, and all authority expires by June 30, 2034.

Significant Changes to Existing Law

• This bill allows Minneapolis to establish noncontiguous TIF districts, which is a departure from the usual requirement that districts be contiguous.
• It provides exemptions from several Minnesota statutes that govern TIF, offering the city more flexibility in using TIF for urban redevelopment projects.

Relevant Terms

• Tax Increment Financing (TIF)
• Redevelopment
• Downtown Minneapolis
• Building renovation and clearance
• Tax increment usage, bonds, and exemptions
• Certification expiration