01-08-2025 Workshop Packet - Laserfiche WebLink

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•Amend MN Statutes to clarify that tax increment pooling limitations are calculated on a cumulative basis; •Increase the ability to pool increments from other districts to support projects; •Expand authority for all cities to transfer unobligated pooled increment from a housing or redevelopment TIF district to support a local housing trust fund for any eligible expenditure under Minn. Stat. § 462C.16; •Modify the housing district income qualification level requirements to allow the levels to vary according to individual communities and/or to support deeply affordable units; •Continue to monitor the impacts of tax reform on TIF districts and if warranted provide cities with additional authority to pay for possible TIF shortfalls; •Allow for the creation of transit zones and transit-related TIF districts in order to shape development and related improvements around transit stations but not require the use of TIF districts to fund the construction or maintenance of the public transit line itself unless a local community chooses to do so; •Allow TIF eligibility expansion to innovative technological products, recognizing that not only physical items create economic value; •Support changes to TIF law that will facilitate the development of “regional projects”; •Shift TIF redevelopment policy away from a focus on “blight” and “substandard” to “functionally obsolete” or a focus on long range planning for a particular community, reduction in greenhouse gases or other criteria more relevant to current needs; •Encourage DEED to do an extensive cost-benefit analysis related to redevelopment, including an analysis of the various funding mechanisms, and an analysis of where the cost burden falls with each of the options compared to the distribution of the benefits of the redevelopment project; •Consider creating an inter-disciplinary TIF team to review local exception TIF proposals, using established criteria, and make recommendations to the legislature on their passage; •Encourage the State Auditor to continue to work toward a more efficient and streamlined reporting process. There are an increasing number of noncompliance notices that have overturned longstanding practices or limited statutorily defined terms. 54