SF3552

SF3552 (Legislative Session 94 (2025-2026))

City of Columbia Heights special rules authorization

Related bill: HF3447

AI Generated Summary

Purpose

This bill creates special rules for the city of Columbia Heights regarding a Tax Increment Financing (TIF) district called the Alatus TIF District. The goal is to extend how long the district can use tax increments to support redevelopment and decide whether to extend the district’s duration.

Main Provisions

The five-year period for the Alatus TIF District under Minnesota law is extended from five years to ten years.
The period for using tax increment after the five-year period ends is extended from the original limit to eleven years for the Alatus TIF District.
The city of Columbia Heights or its Economic Development Authority may elect to extend the overall duration of the Alatus TIF District by five more years.
These extensions are stated as being allowed “notwithstanding” certain existing statutory limits (specifically, sections 469.176 subdivisions 1b and 1d).

What this bill seeks to accomplish

Provide longer timeframes for the Alatus TIF District to accumulate and use tax increments to fund redevelopment projects.
Give local officials in Columbia Heights added flexibility to plan and complete redevelopment by extending the life of the district and its financing.

Significant changes to existing law

Increases the allowable five-year rule for this district from five to ten years.
Extends the usable life of the tax increments after the initial five-year period to eleven years.
Creates an option for an additional five-year extension of the district’s duration, even if other statutory limits would normally apply.
Applies specifically to the Alatus TIF District in Columbia Heights, not to TIF districts statewide.

Practical effect and who is affected

The city of Columbia Heights and its Economic Development Authority gain greater flexibility to fund redevelopment projects using TIF.
Local planners and developers may have more time to realize redevelopment goals tied to the Alatus district.

Relevant Terms Tax Increment Financing (TIF); Alatus Tax Increment Financing District; City of Columbia Heights; Economic Development Authority; five-year rule; ten-year extension; eleven-year use of increment; duration extension; notwithstanding; Minnesota Statutes section 469.1763; subdivision 3; subdivision 1b; subdivision 1d.

Bill text versions

Introduction PDF PDF file

Upcoming committee meetings

Taxes on: February 26, 2026 08:30

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 17, 2026	Senate		Action	Introduction and first reading
February 17, 2026	Senate		Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Extends the five-year period under Minnesota Statutes section 469.1763, subdivision 3, to ten years for the Alatus Tax Increment Financing District in the City of Columbia Heights.",
      "modified": [
        "Extends duration for the TIF from five to ten years."
      ]
    },
    "citation": "469.1763",
    "subdivision": "3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Extends the use of increment after expiration of the five-year period under Minnesota Statutes section 469.1763, subdivision 4, to 11 years for the Alatus TIF District.",
      "modified": [
        "Extends the increment-use horizon after expiration from five to 11 years."
      ]
    },
    "citation": "469.1763",
    "subdivision": "4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Notwithstanding Minnesota Statutes section 469.176, subdivisions 1b and 1d, the City of Columbia Heights or its economic development authority may elect to extend the duration of the Alatus Tax Increment Financing District by five years.",
      "modified": [
        "Allows a five-year extension of TIF duration."
      ]
    },
    "citation": "469.176",
    "subdivision": "1b and 1d"
  }
]