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SF2820 (Legislative Session 94 (2025-2026))

City of St. Paul tax increment financing special rules authorization provision

Related bill: HF2585

AI Generated Summary

Purpose of the Bill

The bill is designed to allow the city of St. Paul to utilize tax increment financing (TIF) specifically for redevelopment in its downtown area. This is intended to support urban renewal and address issues such as building vacancies and inadequate street layouts.

Main Provisions

  • Establishment of TIF Districts: The St. Paul Housing and Redevelopment Authority can create up to three redevelopment TIF districts in downtown St. Paul, defined as City Planning District Number 17.

  • Special Rules for Redevelopment:

    • A district may be established if at least 50% of the buildings require significant renovation or removal due to issues like vacancy, inappropriate use, or outdated structures.
    • TIF funds in these districts can be used for clearing buildings to develop open spaces or public parks.
    • Some typical restrictions and limitations of TIF use, such as those concerning bond expenditures and payment terms, do not apply within these designated areas.

  • Certification and Expiration:

    • The city's authority to establish these districts and request certification expires on June 30, 2030, unless certification has been requested for at least one district by that date. The overall authority expires on June 30, 2034.

Significant Changes to Existing Law

The bill includes exceptions to existing Minnesota statutes that usually govern TIF. It allows for the creation of non-contiguous parcels within a district and waives some expenditure and bond-related restrictions that typically apply. This flexibility is granted specifically for the redevelopment efforts in downtown St. Paul.

Relevant Terms

  • Tax Increment Financing (TIF)
  • Redevelopment District
  • St. Paul
  • Downtown
  • Urban Renewal
  • Public Park Development
  • Building Renovation
  • Certification Expiration

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "New clauses on redevelopment standards."
      ],
      "removed": [],
      "summary": "This section deals with requirements for tax increment financing districts.",
      "modified": []
    },
    "citation": "469.174",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Removes restrictions on using increments for public parks."
      ],
      "summary": "This section addresses restrictions on tax increment financing use.",
      "modified": []
    },
    "citation": "469.176",
    "subdivision": "subdivision 4l"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Eliminates specific expenditure restrictions for certain bonds."
      ],
      "summary": "These subdivisions cover limitations on tax increment use.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivisions 2 and 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Waives some limitations on project approvals."
      ],
      "summary": "This section details the requirements for tax increment district plans.",
      "modified": []
    },
    "citation": "469.175",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Exempts certain pooling restrictions for this project."
      ],
      "summary": "This subdivision imposes restrictions on the pooling of tax increments.",
      "modified": []
    },
    "citation": "469.176",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [
        "Waives expenditure limits on certain allowable purposes."
      ],
      "summary": "Subdivision 4 addresses the use of tax increments.",
      "modified": []
    },
    "citation": "469.1763",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This subdivision relates to the certification of tax capacities.",
      "modified": [
        "Sets land value certification for new tax increment districts."
      ]
    },
    "citation": "469.177",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "These sections collectively govern tax increment financing.",
      "modified": [
        "Framework for applicability to new districts created under this bill."
      ]
    },
    "citation": "469.174 to 469.1794",
    "subdivision": ""
  }
]

Sponsors