This bill amends Minnesota Statutes to enhance tax increment financing (TIF) provisions, particularly by allowing certain tax increments to be used for converting vacant or underused commercial or industrial buildings into residential properties. It modifies the definition of a "redevelopment district" to include properties that were intended for or recently occupied for commercial or industrial purposes within Minneapolis or St. Paul. The bill also clarifies the requirements for municipalities when approving TIF plans, emphasizing the need for documentation that supports the determination of whether a district meets the necessary criteria.

Furthermore, the bill introduces new effective dates for the certification of TIF districts, stating that the changes will apply to districts for which certification requests are made after June 30, 2025. It mandates that municipalities provide written reasons and supporting facts for their findings, particularly regarding expected market value increases from proposed developments. Additionally, the bill specifies that for districts qualifying as a qualified disaster area, the auditor must certify the value of the land as the original tax capacity for parcels with buildings that have suffered substantial damage or for those with vacant or underused commercial or industrial buildings. These new provisions will also take effect for districts where certification requests are made after June 30, 2025.

Statutes affected:
Introduction: 469.174, 469.175, 469.177