This bill authorizes the city of St. Paul to establish up to three redevelopment tax increment financing districts within its downtown area, defined as City Planning District Number 17. The housing and redevelopment authority of St. Paul can create these districts under special rules that allow for noncontiguous parcels and provide flexibility in meeting certain statutory requirements. Specifically, if at least 50% of the buildings in a proposed district require substantial renovation or clearance due to various identified issues, the districts will be deemed compliant with existing state statutes. Additionally, tax increment from these districts can be used for public park spaces, and certain restrictions on expenditures and bond payments will not apply.

The bill also sets a deadline for the authority to request certification of these districts, which expires on June 30, 2030, unless at least one district has been certified by that date. The overall authority to request certification will end on June 30, 2034. The provisions of Minnesota Statutes sections 469.174 to 469.1794 will still apply to the districts established under this bill, except where specifically modified by the new rules. The effective date of this legislation will be the day after the city of St. Paul complies with the necessary statutory requirements.