[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6349176,"mediaKeyId","2239207-f66352ca430f82f2a9b4a689e8e0893e","parentId",2239207,"title","Senate Taxes Committee lays over four local TIF special‑legislation requests for omnibus tax bill","audioSeconds",2318,"startMs",2384000,"endMs",4702000,"viewUrl","/Search/View?dp=1&key=2239207-f66352ca430f82f2a9b4a689e8e0893e&start=2384&end=4702","thumbnailUrl","https://assets.pipeline.soar.com/2239207-f66352ca430f82f2a9b4a689e8e0893e/thumbnail_2384000.jpg","articleUrl","/articles/6349176/Minnesota/Senate-Taxes-Committee-lays-over-four-local-TIF-speciallegislation-requests-for-omnibus-tax-bill","mediaUrl","https://secure.pipeline.soar.com/6349176-c1d015ba76fcf75995b71e9601a7f78c/orig.mp4?Expires=1770965422&Signature=JdO3ZeAftagkCnFzwCkQdsuLpvYQ7I6gyNfTS-wHIWRxmWUlY-hYuyCjedtdnbgG3WIQ6nmksmkCHnuNEshGwgS7wBzcYrc9kKJuki5UnESKFEYqyywuw1DoHrf4KGin-~H3Y9A-mxOab21P9DMejRbX~KEX0Ti34vM7hPsmsMN20d34vO4QBWbrxSebRgWqXS9eESmJuGPDC5omfCSe59gwxGREmsPKUS3y-f6PrHVH0h0~hlnW-Ty6sRDhf2gHu3SjgniJ7MoAKs~8TpoFxmjYdcUOd5Y-f6lJ--REhLpxwOJy0nKXoYcgXpK2RHNQWv5XWoxYgZ6dvFZdUdXXnw__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Senate","date","2025-02-05T21:57:00Z","article","The Minnesota Senate Taxes Committee on Feb. 6 laid over four local bills that would permit special tax increment financing (TIF) rules or extended timelines for redevelopment in Plymouth, Maple Grove, Brooklyn Center and Eden Prairie.

The committee took no final votes on the measures; each bill was “laid over for consideration in the omnibus Senate tax bill,” the chair said after the local presentations.

Plymouth (Senate File 63): Sponsor Senator Westlund presented a bill authorizing the city to create up to two redevelopment districts in Plymouth City Center under special rules. The bill would exempt the districts from several standard statutory requirements and extend a 5‑year reporting/construction rule to 10 years for those districts. Plymouth City Manager Dave Callister told the committee the district would support pedestrian safety, walkability, transit planning and housing near the Plymouth Ice Center and other attractions. “Using TIF within Plymouth City Center is a very important issue for our community and our city's future,” Callister said, adding the city has already invested in a $12 million paving project and regional stormwater infrastructure.

Maple Grove (Senate File 55): Senator Limmer presented a change to Maple Grove’s soils/gravelspecial‑law TIF that would extend the 5‑year rule by five years (to a 13‑year measure in the bill text) and increase the maximum increment collection period from 20 to 25 years. Maple Grove city administrator Heidi Nelson told senators the gravel mining area has already produced roughly 1.75 million square feet of industrial space and nearly 4,000 jobs since the district’s inception; she said about 60 acres remain to be developed and the city needs more time to complete that reclamation and industrial conversion.

Brooklyn Center (Senate File 85): Senator Paul introduced legislation to allow Brooklyn Center to create up to two redevelopment districts in an 80‑acre “opportunity site.” The bill would exempt the site from standard blight findings, relax the 90%‑spending requirement for blight correction and expire Dec. 31, 2031. Mayor April Graves and City Manager Reggie Edwards said the site could yield significant housing and commercial redevelopment. Edwards told the committee the full project could include approximately 4,000 housing units, up to 130,000 square feet of retail and roughly 400,000 square feet of employment space, with an estimated market value of about $340 million and a projected increase in tax base of about 12%.

Eden Prairie (Senate File 115): Senator Swazinski presented a bill to allow Eden Prairie to establish up to two redevelopment districts at Eden Prairie Center and adjacent rights of way, exempting the mall site from certain blight findings and the 90% spending rule. Dave Lindahl, the city’s economic development manager, said the Eden Prairie Center is about 1.4 million square feet (the third‑largest mall in Minnesota) and supports roughly 2,400 jobs; Lindahl said the mall’s inline vacancy and declining value have led the city to pursue a redevelopment that would demolish about 300,000 square feet of underperforming space and replace it with mixed uses (housing, hotel, office and limited commercial). Lindahl said redevelopment may include a mix with 25% of apartments designated as affordable.

Procedure and next steps: For each bill the chair said the language is substantially the same as the version considered in the 2024 tax bill and that the measures will be considered in the 2025 omnibus Senate tax bill. The chair warned that some local bills could be pulled or rescheduled if the Department of Revenue lacks information required to complete a revenue estimate; when that occurs, the bill will be heard later after the necessary revenue estimate information is provided.

Ending: Committee members thanked the city representatives for their presentations and the bills were laid over for omnibus consideration.

","mediaType","Video","parentTitle","Committee on Taxes - 02/06/25","oneSentenceSummary","On Feb. 6 the committee laid over local bills from Plymouth, Maple Grove, Brooklyn Center and Eden Prairie that would allow special rules or extended timelines for tax increment financing districts; each bill was laid over for inclusion in the omnibus Senate tax bill.","taxTitle","Taxes, Senate, Committees, Legislative, Minnesota","taxId",15814,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6349180,"State auditor: housing TIFs rising in Greater Minnesota; many districts decertify early",1519,106000,1625000,"/Search/View?dp=1&key=2239207-f66352ca430f82f2a9b4a689e8e0893e&start=106&end=1625","https://assets.pipeline.soar.com/2239207-f66352ca430f82f2a9b4a689e8e0893e/thumbnail_106000.jpg","/articles/6349180/Minnesota/State-auditor-housing-TIFs-rising-in-Greater-Minnesota-many-districts-decertify-early","https://secure.pipeline.soar.com/6349180-ca730f94c9cf3e767c5f4419746f9d6a/orig.mp4?Expires=1770965422&Signature=Ddh8u0GQsuPQJo6BIPr~5OmZj5fOINj5b6yNAvYOSdDtb3coJj-ThgcK3b8eufIvwLlc3TUBMs2EmSgZ8ogMW-LJal0KVN7iYQnwg3vGSTYSr5G~zRnbQFu0awI2a8tJkPAWmH5VyGJtmMcLBrqQ7sF4iC6PbxvPo7~ln0ilEKtq9jIPZQg6u5nG6bkZhbO8I6Nhw6A87qmCcwtynXnz0RY5OCU~DU27-fbfBnUmlZpLjZrynw0ha9~1736g5bRuwA99F2KAwpTfAM38VMY6yZ6U23xrNUkPc43G2tDa8GSaernSzyXbfSX5vNSLzuamnbhhrkRHdQ9tWVEjD8O~wg__&Key-Pair-Id=KUT5TJCACFTXG","The Minnesota Senate Taxes Committee heard the Office of the State Auditor’s annual tax increment financing (TIF) report on Feb. 6, 2025. Jason Nord, division director at the Office of the State Auditor, presented the office’s 2023 data (reported to the auditor in 2024) and described recent patterns in district types, revenues and decertifications.

Nord told the committee the report shows housing districts overtook redevelopment districts in Greater Minnesota by count, though most TIF dollars remain concentrated in the Twin Cities metro. “My name is Jason Nord. I’m the Division Director at the Office of the State Auditor,” Nord said when he opened his presentation. He added the office had added new charts this year “to kind of drill into” early decertification trends.

The nut graf: the auditor’s report highlights two related trends that shape local tax revenues and redevelopment policymaking — a shift in the kinds of TIF districts cities create, and a rising share of districts that end before their statutory maximums, which returns captured tax base to counties, cities and schools sooner than previously expected.

Most important facts: Nord summarized statewide counts and dollar flows. The auditor’s presentation said roughly 382 TIF authorities exist in Minnesota, and the office received reports from 378 authorities covering 1,678 districts (four authorities did not report for six districts). By count, 61% of districts are located outside the metro area; by dollars, roughly 78% of increment was generated in the metro area, reflecting higher property values and larger projects there. The presentation reported about $2.38 billion of tax increment created in 2023 and roughly $7.4 million of increment returned to counties, cities and school districts in 2023 when districts had more increment than they were authorized to spend or when jurisdictions voluntarily returned funds.

Nord walked committee members through financing types and risk shifts. Pay-as-you-go notes are now the most common financing vehicle for TIF obligations; general obligation bonds, which place risk on taxpayers if projects underperform, have declined in use. The report lists about $1.8 billion of outstanding TIF-related debt statewide and shows an increasing reliance on pay-as-you-go arrangements that place more risk on developers and note holders than on local taxpayers.

On decertifications, Nord emphasized a marked shift: a large share of districts are ending earlier than their statutory maximums. The report finds that more than three-quarters of housing and redevelopment districts decertified before their maximum allowed life, on average nearly a decade early; many economic development districts (which have shorter maximum terms) also end several years early. Nord told members the 5-year and 6-year rules (statutory guidance about when a district should be decertified once it has sufficient increment to meet necessary costs) and recent practice both appear to be driving earlier decertifications.

Committee members asked about comparisons with other states, the rigor of the statutory “but-for” test (the local finding that a project would not occur without TIF), and how common shortfalls in increment are handled. Nord said cross-state comparisons were not part of the report and that Minnesota’s pooling provisions (which allow up to 25% of increment to be shared) are not universally available in other states. On the but-for test he said the determination is made locally — typically by the city council or authority — and that statute generally makes the local finding conclusive after a short challenge window.

Why it matters: the shift to earlier decertification changes when property value increases return to other taxing jurisdictions (counties, cities, schools), affects the size and type of projects that can be financed with TIF, and influences legislative proposals about TIF duration, blight standards and reporting.

Chair remarks and follow-up: Chair Rest told members she will bring general-law legislation to address the renewal/renovation and redevelopment distinctions and to adjust duration and but‑for standards so fewer special‑laws are needed. Committee members indicated they would use the auditor’s charts to inform upcoming legislation. The report’s author offered to supply follow-up lists and city-level details at the chair’s request.

Ending: Committee members praised the auditor’s office for the report and signaled it will inform debates this session over possible statutory changes to TIF rules and oversight.

","The Office of the State Auditor told the Senate Taxes Committee that housing districts have become the most common TIF district type in Greater Minnesota and that a growing share of TIF districts end earlier than their statutory duration, returning tax base sooner than planned.","actionData","errors"]

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Senate Taxes Committee lays over four local TIF special‑legislation requests for omnibus tax bill

State auditor: housing TIFs rising in Greater Minnesota; many districts decertify early