SF2463

Purpose of the Bill

The purpose of this bill is to provide specific tax increment financing (TIF) rules for the city of Marshall, Minnesota. It allows the city to have flexibility in how it uses certain TIF increments collected from specific districts within the city.

Main Provisions

• Extension of Use Period: The bill authorizes the city of Marshall to use TIF funds from districts No. 11, No. 17, and No. 21 until December 31, 2027. This includes spending, loaning, or investing these funds.
• Spending Plan Requirement: The city must create and adopt a written spending plan that outlines how these funds will be used, as per Minnesota’s existing statutes on TIF.
• Return of Unused Funds: Any TIF funds that are not used by the end date must be returned to the respective district. This includes any related earnings, such as interest or loan repayments, that are in possession of the city or received later.

Significant Changes to Existing Law

• The bill modifies the existing rules under Minnesota Statutes section 469.176 subdivision 4n to allow the city of Marshall additional time and flexibility in handling specific TIF increments beyond the standard limitations.

Relevant Terms

tax increment financing, TIF districts, transferred increment, city of Marshall, spending plan, unused funds, statutory flexibility.