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HF2839 (Legislative Session 94 (2025-2026))

Minneapolis; special tax increment financing rules authorized.

Related bill: SF2803

AI Generated Summary

Purpose of the Bill

The bill aims to authorize the city of Minneapolis to create special tax increment financing (TIF) districts within its downtown area. These districts will have unique rules intended to facilitate redevelopment and address urban blight and other community hazards.

Main Provisions

  • Establishment of TIF Districts: Minneapolis is permitted to establish up to three redevelopment TIF districts within its downtown area. The location is defined according to previous legislative boundaries.

  • Special Rules for TIF: Specific conditions must be met for a district to qualify under these special rules:

    • At least 50% of the buildings in the district must require significant renovation or demolition due to conditions like crowded buildings, significant vacancy rates, or buildings unsuitable for current commercial use.

  • Flexibility and Exceptions:

    • Parcels within these districts can be noncontiguous.
    • There is flexibility in the use of tax increments, such as the ability to clear buildings for public spaces like parks.
    • Exemptions from several standard statutory requirements are granted, particularly concerning the expenditure of funds or issuance of bonds for redevelopment activities.

  • Certification: The county auditor is instructed to set the original tax capacity for any parcel in these districts, which affects how tax increments are calculated.

Significant Changes to Existing Law

This bill allows Minneapolis to bypass certain restrictions typically applied to tax increment financing activities, giving the city more leeway in redeveloping its downtown area to address specific urban challenges. Additionally, it extends the time period for establishing these districts until June 30, 2034, contingent on at least one district being established by June 30, 2030.

Relevant Terms

  • Tax Increment Financing (TIF)
  • Redevelopment
  • Downtown Minneapolis
  • Urban Blight
  • Tax Capacity
  • Public Park Usage

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "New special rules allowing noncontiguous parcels in specified districts."
      ],
      "removed": [],
      "summary": "The bill addresses the criteria for tax increment financing districts under section 469.174, subdivision 10, in Minneapolis.",
      "modified": []
    },
    "citation": "469.174",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [
        "Allows tax increment to be used for clearing buildings for public parks."
      ],
      "removed": [],
      "summary": "The bill modifies section 469.176, subdivision 4l, regarding the use of tax increment financing.",
      "modified": []
    },
    "citation": "469.176",
    "subdivision": "subdivision 4l"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Exclusion of certain expenditure restrictions for bonds related to financing activities."
      ],
      "summary": "Provisions of section 469.1763, subdivisions 2 and 3, regarding restrictions on expenditures, are waived.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivisions 2 and 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Certain limitations in reporting requirements and restrictions."
      ],
      "summary": "Modifications to rules in section 469.175, subdivision 3, affecting tax increment financing reporting.",
      "modified": []
    },
    "citation": "469.175",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Waiver of specific statutory limitations."
      ],
      "summary": "Amendments affecting application of section 469.176, subdivision 6.",
      "modified": []
    },
    "citation": "469.176",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Exemption from certain funding limitations."
      ],
      "summary": "Changes to funding limitations and exemptions as detailed in section 469.1763, subdivision 4.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        "Certification of land values as original tax capacity."
      ],
      "removed": [],
      "summary": "Section 469.177, subdivision 1, is adjusted to certify land value as the original tax capacity.",
      "modified": []
    },
    "citation": "469.177",
    "subdivision": "subdivision 1"
  }
]

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