Minneslate Logo

SF2860 (Legislative Session 94 (2025-2026))

St. Cloud special tax increment financing authority provision

Related bill: HF3029

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to grant the city of St. Cloud, Minnesota, special tax increment financing (TIF) authority. This financial tool is intended to help the city redevelop certain designated areas.

Main Provisions

  • Establishment of Redevelopment Districts: The city of St. Cloud, through its economic development authority, can establish up to two redevelopment districts. These districts are specified areas adjacent to the Division Street corridor as well as within or around the Central Business District in St. Cloud. The bill lists specific parcels by their tax identification numbers in Stearns and Benton counties.

  • Special Rules for TIF Districts: These new TIF districts are subject to special rules that supersede typical requirements:

    1. Districts automatically satisfy certain legal requirements defined in Minnesota Statutes section 469.174.
    2. They are exempt from the application of Minnesota Statutes section 469.176, subdivision 4j.
    3. The funds generated by these districts can be used for developing public infrastructure (e.g., parking, streets, utilities) adjacent to the districts. These expenditures are regarded as on-site activities, aligning with Minnesota Statutes section 469.1763.

  • Expiration of Authority: The power to establish and approve such a tax increment financing plan will expire on December 31, 2031.

Significant Changes

  • This bill creates an exemption from certain statutory requirements that typically apply to tax increment financing, thereby allowing St. Cloud increased flexibility in how it can use TIF to spur development in the specified areas.

Relevant Terms

  • Tax increment financing (TIF)
  • Redevelopment districts
  • Economic development authority
  • Public infrastructure
  • Central Business District
  • Stearns County
  • Benton County

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minnesota Statutes section 469.174, subdivision 10, for the establishment of tax increment financing districts.",
      "modified": [
        "The districts are deemed to meet all the requirements under this statute."
      ]
    },
    "citation": "469.174, subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill specifies that a particular provision of section 469.176, subdivision 4j, does not apply to the tax increment financing district established by the city of St. Cloud.",
      "modified": [
        "Exemption from a requirement under this subdivision that generally applies to other districts."
      ]
    },
    "citation": "469.176, subdivision 4j"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Expenditures for public infrastructure related to the financing districts are deemed to be expended under the criteria of Minnesota Statutes section 469.1763.",
      "modified": [
        "Allows expenditure of increments on public infrastructure to be considered as activities within the district."
      ]
    },
    "citation": "469.1763"
  }
]

Sponsors