HF2585 (Legislative Session 94 (2025-2026))
St. Paul; special tax increment financing rules authorized.
Related bill: SF2820
AI Generated Summary
Purpose of the Bill
The bill aims to give the city of St. Paul, Minnesota, special authority for creating and managing redevelopment tax increment financing (TIF) districts specifically within its downtown area. This authority is designed to aid in urban development and address specific challenges faced by the city, such as dilapidated infrastructure and economic revitalization.
Main Provisions
Establishment of TIF Districts: The Housing and Redevelopment Authority of St. Paul is authorized to establish up to three TIF districts. These districts must be located entirely within the defined downtown area, known as City Planning District Number 17.
Special Rules for Redevelopment:
- At least 50% of the buildings in these districts must require significant renovation or demolition due to issues like inadequate street layouts, incompatible land uses, overcrowding, significant vacancy rates, or building obsolescence.
- Parcels of land within these districts can be noncontiguous.
- Tax increment financing can be used for clearing buildings to create open spaces or public parks.
Exemptions from Certain Requirements:
- Specific statutory constraints related to the expenditure for or payment of bonds are waived for these districts.
- The value of land within these districts will be certified under specific conditions to determine their original tax capacity.
Expiration of Authority:
- The city's authority to request certification of districts expires on June 30, 2030, unless at least one district has been certified by then.
- The ability to certify any further districts will ultimately expire on June 30, 2034.
Significant Changes to Existing Law
The bill allows the city of St. Paul exemptions from certain Minnesota Statutes typically required for the establishment and financial management of redevelopment districts. It waives limitations to facilitate faster development, address urban blight more directly, and allocate funds more flexibly for redevelopment purposes.
Relevant Terms
tax increment financing, TIF districts, redevelopment, St. Paul, Minnesota, downtown development, urban renewal, housing and redevelopment authority, city planning district, public park, noncontiguous parcels, legislative exemptions, tax capacity.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 19, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references rules relating to the establishment of tax increment financing districts under section 469.174.",
"modified": []
},
"citation": "469.174",
"subdivision": "subdivision 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill changes provisions relating to the use of tax increments for clearing buildings under section 469.176.",
"modified": []
},
"citation": "469.176",
"subdivision": "subdivision 4l"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill exempts certain expenditures for activities within redevelopment areas from the requirements under section 469.1763.",
"modified": []
},
"citation": "469.1763",
"subdivision": "subdivisions 2 and 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references exemptions from requirements under section 469.175.",
"modified": []
},
"citation": "469.175",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill allows exemptions from certain limitations under section 469.176.",
"modified": []
},
"citation": "469.176",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill states certain restrictions under section 469.1763 do not apply to the new tax increment districts.",
"modified": []
},
"citation": "469.1763",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill addresses the certification of original tax capacity under section 469.177.",
"modified": []
},
"citation": "469.177",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "General reference made to sections governing tax increment financing districts, except as specifically modified.",
"modified": []
},
"citation": "469.174 to 469.1794",
"subdivision": ""
}
]