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SF2820 (Legislative Session 94 (2025-2026))

City of St. Paul tax increment financing special rules authorization provision

Related bill: HF2585

AI Generated Summary

Purpose of the Bill

The bill aims to provide special regulations for the city of St. Paul regarding tax increment financing (TIF). This financial tool is used to support and revitalize underdeveloped areas. Specifically, the bill allows for certain exceptions and modifications to the general TIF laws to aid redevelopment in downtown St. Paul.

Main Provisions

  • Establishment of TIF Districts: The Housing and Redevelopment Authority (HRA) of St. Paul is allowed to create up to three redevelopment TIF districts within the city's downtown area, defined as City Planning District Number 17.
  • Special Rules for TIF Districts:
    • The HRA must determine that at least 50% of the buildings in these districts need major renovations or demolition due to issues like poor street layout, high vacancy rates, or obsolescence.
    • Parcels within the district may be noncontiguous, allowing for flexible arrangement of spaces.
    • Tax increments can be used for demolishing buildings to create open parks or commons areas, overriding usual spending restrictions.
    • Certain standard requirements and restrictions for Minnesota's TIF laws do not apply to these districts, easing financial and regulatory constraints.
    • The county auditor is tasked with certifying the land value as the original tax capacity for parcels in the district.

Expiration of Authority

  • The authorization to request certification for these districts will expire on June 30, 2030, unless at least one district has been certified by then. However, the ability to request certification for any district under this bill completely expires on June 30, 2034.

Significant Changes to Existing Law

This bill introduces exceptions to standard Minnesota statutes related to TIF. These exceptions allow more flexibility in using tax increments and streamline the process to foster development by suspending certain statutory limitations and requirements.

Relevant Terms

  • Tax Increment Financing (TIF)
  • Redevelopment
  • St. Paul Housing and Redevelopment Authority
  • Noncontiguous parcels
  • Tax capacity certification
  • Downtown development
  • Building renovation and clearance

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Special rules allowing more flexibility in redevelopment criteria."
      ],
      "removed": [],
      "summary": "This bill pertains to tax increment financing districts, with special rules for a district in St. Paul. Section 469.174, Subdivision 10, is cited in determining conditions for redevelopment.",
      "modified": []
    },
    "citation": "469.174"
  },
  {
    "analysis": {
      "added": [
        "Allowing tax increment to clear buildings for open space, despite existing statutes."
      ],
      "removed": [],
      "summary": "Addresses the use of tax increments and flexibility in clearing buildings for open spaces.",
      "modified": []
    },
    "citation": "469.176"
  },
  {
    "analysis": {
      "added": [
        "Exemptions from certain expenditure restrictions for bonds issued in the district."
      ],
      "removed": [],
      "summary": "Provides exceptions to expenditure limitations for financing activities.",
      "modified": []
    },
    "citation": "469.1763"
  },
  {
    "analysis": {
      "added": [
        "Eliminates some record-keeping and submission requirements."
      ],
      "removed": [],
      "summary": "Addresses requirements that do not apply to St. Paul’s tax increment districts under this bill.",
      "modified": []
    },
    "citation": "469.175"
  },
  {
    "analysis": {
      "added": [
        "Certification process adapted for the district in question."
      ],
      "removed": [],
      "summary": "Refers to the certification of the original tax capacity of the land.",
      "modified": []
    },
    "citation": "469.177"
  }
]

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