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 introduces a new condition for establishing a redevelopment district, which includes properties that were intended for or recently occupied for commercial or industrial purposes within Minneapolis or St. Paul. The bill also clarifies the definitions of "structurally substandard" buildings and outlines the necessary findings municipalities must make when approving TIF plans, including public hearings and documentation of their determinations.

Additionally, the bill specifies that for districts qualifying as a qualified disaster area, the auditor is responsible for certifying the land value as the original tax capacity for parcels with buildings that have suffered substantial damage due to a disaster. It also allows the auditor to certify the land value for parcels with vacant or underused commercial or industrial buildings. The new provisions for land value certification and TIF district certification will apply only to requests made after June 30, 2025, ensuring that the updated criteria take effect after this date. Overall, the bill aims to facilitate the conversion of underutilized properties into residential spaces while ensuring compliance with specific guidelines and public engagement processes.

Statutes affected:
Introduction: 469.174, 469.175, 469.177