SF2820

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