SF2803

SF2803 (Legislative Session 94 (2025-2026))

City of Minneapolis tax increment financing special rules authorization provision

Related bill: HF2839

AI Generated Summary

Purpose of the Bill

This bill allows the city of Minneapolis to use special rules for creating redevelopment tax increment financing districts within the downtown area. The goal is to facilitate urban redevelopment and revitalization by addressing areas in need of significant renovation.

Main Provisions

District Establishment: Minneapolis' housing and redevelopment authority can create up to three new redevelopment tax increment financing districts located entirely within the downtown area.
Special Rules:
1. At least 50% of the buildings in a district must require substantial renovation or clearance due to issues like obsolete buildings, overcrowding, or health and safety hazards.
2. The districts may consist of noncontiguous parcels.
3. Tax increments can be used to clear buildings and create public parks or open spaces.
4. Certain statutory limitations and restrictions typically otherwise applicable to tax increment districts do not apply to these districts.
Certification and Expiration: The city must request certification of at least one district by June 30, 2030, or the authority will expire. The final opportunity for certification of any district under this section ends on June 30, 2034.

Significant Changes to Existing Law

This bill grants exceptions to certain Minnesota Statutes sections related to tax increment financing, allowing more flexibility for Minneapolis compared to the standard regulations.

Relevant Terms

tax increment financing, redevelopment, Minneapolis, urban revitalization, downtown, noncontiguous parcels, public park, statutory limitations

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 19, 2025	Senate	Floor	Action	Introduction and first reading
March 19, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Special rule provisions for establishing tax increment financing districts in Minneapolis."
      ],
      "removed": [],
      "summary": "The bill references this section to define redevelopment tax increment financing district requirements.",
      "modified": []
    },
    "citation": "469.174",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Certain restrictions on tax increment usage for Minneapolis, allowing for broader use."
      ],
      "summary": "This section typically deals with tax increment financing and its application, mentioned in contrast to new rules.",
      "modified": []
    },
    "citation": "469.176",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Limitations on expenditures for redevelopment in specified Minneapolis areas."
      ],
      "summary": "References expenditure limitations for tax increment financing.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Additional restrictions for TIF expenditures in Minneapolis are waived."
      ],
      "summary": "Addresses further restrictions on the use of tax increment financing fees.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Specific limitations of expenditure are circumvented by the new rules."
      ],
      "summary": "Touchpoint for necessary approvals and limitations within tax increment financing projects.",
      "modified": []
    },
    "citation": "469.175",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Specific statutory limitations on bond activities are not applied in the Minneapolis districts."
      ],
      "summary": "This provision typically details additional use restrictions for tax increments.",
      "modified": []
    },
    "citation": "469.176",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Certain district expenditure restrictions do not apply under special rules."
      ],
      "summary": "References overall expenditure limitations.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Concerns the accountant's role in certifying tax capacities within districts.",
      "modified": [
        "Auditor certification requirements are adapted for new district provisions."
      ]
    },
    "citation": "469.177",
    "subdivision": "subdivision 1"
  }
]