Purpose of the Bill

The purpose of the bill is to authorize special tax increment financing (TIF) for the city of St. Cloud, Minnesota. This financial tool is intended to support the redevelopment of certain designated areas in St. Cloud by funding infrastructure improvements that encourage economic development.

Main Provisions

• Establishment of Redevelopment Districts: The economic development authority or the city of St. Cloud can create up to two redevelopment districts. These districts must be located adjacent to Division Street or within the Central Business District or Fringe Central District, covering specified parcels in Stearns and Benton Counties.

• Special Rules for TIF Districts:

  • The established districts will automatically meet existing legal requirements for TIF districts.
  • Certain Minnesota Statutes sections will not apply, allowing more flexibility in how the districts operate.
  • Generated tax increments can be used for reconstructing, expanding, or constructing new public infrastructure such as parking, streets, and utilities. These expenditures are regarded as within the districts' activities as per legal requirements.

• Expiration Date: The authority to establish these TIF districts will expire on December 31, 2031.

Significant Changes to Existing Law

The bill provides exceptions to certain requirements usually applicable under Minnesota TIF statutes. It allows the funds generated in the TIF districts to be used more flexibly and aligns their use with infrastructure development, which is a deviation from strict statutory compliance typically required.

Relevant Terms

tax increment financing, St. Cloud, redevelopment districts, public infrastructure, economic development authority, Central Business District, Division Street, Stearns County, Benton County, Minnesota Statutes, infrastructure improvements.