HF3029

Purpose of the Bill

The bill aims to grant the city of St. Cloud, Minnesota, special authority to establish up to two tax increment financing (TIF) districts. These districts are designed to foster economic development within specific areas by utilizing collected tax increments for redevelopment projects.

Main Provisions

• Establishment of TIF Districts: The city of St. Cloud or its economic development authority can create up to two redevelopment districts located near the Division Street corridor or within the Central Business District or Fringe Central District. This is specifically limited to certain parcels listed by tax identification numbers in Stearns County and Benton County.

• Special Rules Applied: The districts are automatically considered compliant with certain TIF requirements according to Minnesota statutes. Specific statutory provisions (Minnesota Statutes, section 469.176, subdivision 4j) do not apply, which might otherwise limit the use of increments.

Significant Changes

• Use of Tax Increments: Tax increments generated within these districts can be spent on public infrastructure projects, such as parking, streets, and utilities necessary for the adjacent development. These expenditures are considered as expenses within the district boundaries even if used for projects directly adjacent to the TIF areas.

• Expiration Date: The authority to create a TIF plan under this legislation will expire on December 31, 2031, giving the city a specific timeframe to take advantage of these special provisions.

Relevant Terms

tax increment financing, TIF districts, economic development, redevelopment districts, public infrastructure, Central Business District, Division Street corridor, tax identification numbers, expiration date.