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SF109 (Legislative Session 94 (2025-2026))

City of Maplewood tax increment financing special rules authorization

Related bill: HF157

AI Generated Summary

The legislative bill SF No 109 is focused on special tax rules for the city of Maplewood, Minnesota. Specifically, it aims to modify existing legislation to allow the city or its economic development authority to establish tax increment financing (TIF) districts under more flexible conditions.

Key provisions in the bill include:

  1. Location Specificity: It pertains particularly to a defined project area known as the 3M Renovation and Retention Project Area.

  2. Rule Adjustments: Certain typical requirements for redevelopment tax increment districts do not apply to this area. For example, the standard eligibility requirements are relaxed, and rules that normally limit spending and the distribution timeline of tax increments are modified:

    • The standard rule requiring 90% of tax increments to be spent specifically on certain expenditures is waived.
    • The rule that typically governs spending outside the district does not apply, and the usual timeframe for such expenditures is extended from five to ten years.
    • Additionally, it specifies that expenditures for this area can only occur within a certain geographical boundary.

  3. Pause in Increment Usage: If, within a year, no work like demolition, rehabilitation, or renovation starts on a project within the district, no further tax increments can be collected for that area until such activities commence.

  4. Expiry Date for Establishing TIF plans: The bill also sets a deadline (December 31, 2018) by which the city must approve any tax increment financing plans and establish such districts.

This legislation is designed to provide specific economic development tools tailored to facilitate and support redevelopment efforts within a key zone in Maplewood, potentially involving the 3M Company.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 15, 2025SenateFloorActionIntroduction and first reading
January 15, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        "Exempts the parcel from eligibility requirements for inclusion in a redevelopment tax increment district."
      ],
      "summary": "This bill modifies eligibility requirements for redevelopment tax increment districts in Maplewood by exempting a specific parcel from subdivision 10 of section 469.174.",
      "modified": []
    },
    "citation": "469.174, subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Eliminates the requirement that limits the use of tax increments to 90% of certain expenses."
      ],
      "summary": "This bill provides a special rule for the parcel in Maplewood, exempting it from the 90 percent rule under section 469.176, subdivision 4j.",
      "modified": []
    },
    "citation": "469.176, subdivision 4j"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Eliminates restrictions on expenditures outside the tax increment district."
      ],
      "summary": "The rule regarding expenditures outside a district under section 469.1763, subdivision 2, does not apply to the specified parcel.",
      "modified": []
    },
    "citation": "469.1763, subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Extends the period for making expenditures within the project area from five to ten years."
      ],
      "removed": [],
      "summary": "This bill extends the five-year rule under section 469.1763, subdivision 3, to ten years for the specified project area.",
      "modified": []
    },
    "citation": "469.1763, subdivision 3"
  }
]

Sponsors