Minneslate Logo

SF2824 (Legislative Session 94 (2025-2026))

Certain increment usage to covert vacant or underused commercial or industrial buildings to residential purposes authorization and certain increment calculations and findings required for a district converting vacant or underused property modification

Related bill: HF2574

AI Generated Summary

Purpose of the Bill

The purpose of this legislative bill is to modify rules surrounding tax increment financing in Minnesota to support the conversion of vacant or underused commercial or industrial buildings into residential properties. This is aimed at revitalizing areas within cities, particularly Minneapolis and St. Paul, by making better use of properties that are currently underutilized.

Main Provisions

  • Use of Tax Increment Financing: The bill authorizes the use of tax increment financing (TIF) to transform vacant or underused commercial and industrial sites into residential complexes.
  • Redefined Redevelopment Districts: It updates the definition of redevelopment districts to include areas where 70% of the space is occupied by buildings and more than 50% are deemed structurally substandard, necessitating significant renovation or demolition.
  • Inclusion of Special Areas: The bill includes underused railway yards and former tank facilities as eligible for redevelopment under TIF.
  • Municipal Authority: Municipal authorities are given the power to determine if a building is structurally substandard, even without an interior inspection, under certain conditions such as being unable to gain access to the property.
  • New Residential Uses: Specifically encourages redevelopment in the core cities of Minneapolis and St. Paul, making them focal points for converting non-residential properties into housing.

Significant Changes to Existing Law

  • The bill amends the current statutes to expand the criteria and districts eligible for tax increment financing, specifically by including certain types of underused properties.
  • Modifications allow municipalities greater flexibility in declaring buildings as substandard based on reliable evidence without needing comprehensive evaluations.

Relevant Terms

  • Tax increment financing (TIF)
  • Redevelopment district
  • Structurally substandard
  • Commercial/industrial to residential conversion
  • Underused properties
  • Minneapolis and St. Paul

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes new criteria for property conditions and municipal findings for redevelopment."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This bill modifies the definition and conditions of a redevelopment district under section 469.174.",
      "modified": [
        "Clarifies the criteria for determining structural substandard status."
      ]
    },
    "citation": "469.174"
  },
  {
    "analysis": {
      "added": [
        "Requires written documentation in cases where interior inspections are not conducted."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This bill updates requirements related to findings and documentation for redevelopment districts under section 469.175.",
      "modified": [
        "Details the conditions under which a building is deemed substandard without interior inspection."
      ]
    },
    "citation": "469.175"
  },
  {
    "analysis": {
      "added": [
        "Specifies conditions for adjusting original tax capacity of parcels."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This bill modifies the tax increment calculation for redevelopment districts under section 469.177.",
      "modified": [
        "Alterations to paragraph f related to tax capacity adjustments."
      ]
    },
    "citation": "469.177"
  },
  {
    "analysis": {
      "added": [
        "N/A"
      ],
      "removed": [
        "N/A"
      ],
      "summary": "References criteria related to tank facilities outlined in section 115C.02.",
      "modified": [
        "Refers to the capacity and conditions related to tank facilities."
      ]
    },
    "citation": "115C.02"
  }
]

Sponsors