SF 2803

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/21/2025 10:27 a.m.

A bill for an act
relating to taxation; tax increment financing; authorizing special rules for the city
of Minneapolis.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CITY OF MINNEAPOLIS; TAX INCREMENT FINANCING
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Under the special rules in subdivision 2, the housing and
redevelopment authority of the city of Minneapolis may establish not more than three
redevelopment tax increment financing districts, consisting of parcels, wholly within the
"downtown" defined as downtown taxing district under Laws 1986, chapter 400, section
44, as amended by Laws 1995, chapter 264, article 2, section 39, and Laws 2009, chapter
88, article 4, section 13, together with adjacent roads and rights-of-way.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin (a) If the authority establishes any tax increment district under
this section, the following special rules apply:
new text end

new text begin (1) provided the authority finds by resolution that at least 50 percent of the buildings in
the district require substantial renovation or clearance to remove existing conditions such
as inadequate street layout; incompatible uses or land use relationships; overcrowding of
buildings on the land; buildings with significant vacancy rates; underused or inappropriately
used buildings; obsolete buildings not suitable for commercial use; or other identified hazards
to the health, safety, and general well-being of the community, the districts are deemed to
meet all the requirements of Minnesota Statutes, section 469.174, subdivision 10;
new text end

new text begin (2) parcels in the district may be noncontiguous;
new text end

new text begin (3) notwithstanding Minnesota Statutes, section 469.176, subdivision 4l, tax increment
from a district may be used to clear buildings described in clause (1) for open space or a
commons area used as a public park;
new text end

new text begin (4) the requirements, limitations, or restrictions under Minnesota Statutes, section
469.1763, subdivisions 2 and 3, do not apply to any expenditure for, or payment of bonds
issued to finance, activities within the area described in subdivision 1;
new text end

new text begin (5) the requirements, limitations, or restrictions under Minnesota Statutes, sections
469.175, subdivision 3, paragraph (b), clause (2), item (ii); 469.176, subdivision 6; and
469.1763, subdivision 4, do not apply; and
new text end

new text begin (6) the auditor shall certify the value of the land as the original tax capacity for any
parcel in the district under Minnesota Statutes, section 469.177, subdivision 1.
new text end

new text begin (b) Except as otherwise provided in paragraph (a), the provisions of Minnesota Statutes,
sections 469.174 to 469.1794, apply to districts established under this section.
new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin The authority to request certification of districts under this section
expires June 30, 2030, unless the city has requested certification of at least one district by
that date. The authority to request certification of any district under this section expires June
30, 2034.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Minneapolis and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end