SF2083

Purpose

This bill creates a temporary extension that allows the City of Oakdale to use transferred tax increment financing (TIF) from specific TIF districts (No. 14 and No. 16) through December 31, 2027. The goal is to enable spending, loaning, or investing that transferred increment, in a way that aligns with the city's formal spending plan.

Main Provisions

• Oakdale may elect to spend, loan, or invest transferred increment authorized under Minnesota Statutes 469.176 subdivision 4n through December 31, 2027.
• The transferred increment must have been collected from TIF District No. 14 or TIF District No. 16 in Oakdale.
• The use of the transferred increment must be detailed in the city’s written spending plan adopted under Minnesota Statutes 469.176 subdivision 4n paragraph c.
• If the transferred increment is not spent, loaned, or invested by December 31, 2027, it must be returned to the district. This includes any principal and interest from loans, earnings on investments, and other repayments or returns of transferred increment that remain in the authority’s or city’s funds or accounts on December 31, 2027 or later.

How it interacts with current law

• The bill specifies “Notwithstanding” existing Minnesota law (469.176, subdivision 4n, paragraph f), providing a temporary exception that allows extended use of the transferred increment beyond the usual limits, subject to the spending plan and eventual return if unspent.

Accountability and Oversight

• The spending plan required under 469.176(4n)(c) governs how the transferred increment may be used.
• The city must return any unspent or uninvested increment to the district by the 2027 deadline, including all associated earned amounts.

Timeframe and Deadlines

• Extended use window ends December 31, 2027.
• Any remaining or unspent transferred increment must be returned by December 31, 2027 (or later if received after that date).

Significance / Potential Impacts

• Provides Oakdale with a defined period to use TIF increments from Districts 14 and 16 for projects or financing, under a formal spending plan.
• Maintains a safeguard that requires return of any unspent funds to the district, preserving tax increment for the district’s purposes.

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Relevant Terms tax increment financing (TIF) transferred increment TIF District No. 14 TIF District No. 16 City of Oakdale spending plan December 31, 2027 loaned increment invested increment not spent return to district Minnesota Statutes 469.176(4n) Minnesota Statutes 469.174(25)