SF2824 (Legislative Session 94 (2025-2026))
Certain increment usage to covert vacant or underused commercial or industrial buildings to residential purposes authorization and certain increment calculations and findings required for a district converting vacant or underused property modification
Related bill: HF2574
AI Generated Summary
Purpose of the Bill
This bill aims to modify tax increment financing (TIF) rules in Minnesota to facilitate the conversion of vacant or underused commercial or industrial properties into residential living spaces. This legislative change is designed to revitalize underutilized areas, particularly in Minneapolis and St. Paul, by promoting residential development.
Main Provisions
- Tax Increment Financing Use: Allows the use of tax increments generated from redevelopment districts to convert specific types of underused properties into residential use.
- Eligibility Criteria: Defines a "redevelopment district" as an area where at least 70% is occupied by structures, and over 50% of principal buildings are substantially below standard, requiring significant renovation or clearance.
- Property Conditions: Identifies properties as eligible for redevelopment if they are vacant, unused, underused, inappropriately used, or infrequently used—typically old rail yards or facilities—and stipulates necessary conditions for these properties to be considered for residential redevelopment.
- Certification Process: Details the process for certifying parcels within a redevelopment district, including required documentation and verification of structural inadequacies.
Significant Changes to Existing Law
- The bill revises definitions and criteria under Minnesota Statutes related to TIF to accommodate residential conversions of non-residential properties.
- It introduces additional conditions and processes for identifying and certifying properties eligible for TIF-supported redevelopment.
- Adjusts how increments and tax capacities are calculated and certified when parcels are included in redevelopment districts.
Relevant Terms
- Tax increment financing (TIF)
- Redevelopment district
- Structural substandard
- Residential conversion
- Vacant properties
- Underused properties
- Minneapolis
- St. Paul
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": [
"Expanded definitions for tank facilities within tax increment financing district adjustments."
],
"removed": [],
"summary": "The bill references section 115C.02, subdivision 15, defining tank facilities in the context of tax increment financing districts.",
"modified": []
},
"citation": "115C.02",
"subdivision": "subdivision 15"
},
{
"analysis": {
"added": [
"Criteria for property use transformation in redevelopment districts."
],
"removed": [],
"summary": "Amendments to section 469.174, subdivision 10, refining criteria for redevelopment districts.",
"modified": [
"Updated definitions and conditions for properties qualifying as redevelopment districts."
]
},
"citation": "469.174",
"subdivision": "subdivision 10"
},
{
"analysis": {
"added": [
"New mandates for documentation retention when interior inspections are not conducted."
],
"removed": [],
"summary": "Modifications to section 469.175, subdivision 3, regarding documentation requirements for the condition of properties in redevelopment districts.",
"modified": []
},
"citation": "469.175",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Adjustments to clauses within section 469.177, subdivision 1, about the calculation of tax increments for redevelopment districts.",
"modified": [
"Adjustment provisions for original tax capacity notifications to county auditors."
]
},
"citation": "469.177",
"subdivision": "subdivision 1"
}
]