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Legislation has been introduced to:

1. Combine eligibility for Renewal and Renovation TIF Districts and Redevelopment TIF Districts into a single authority (making it a little easier to establish Redevelopment TIF Districts); and
2. Reduce the duration of the resulting Redevelopment TIF Districts from 25 years to 20 years from the initial receipt of increment (but also extending renewal and renovation-type TIF Districts by 5 years).

This legislation would apply to Redevelopment TIF Districts established after June 30 of this year.

As you are probably aware, many Redevelopment TIF Districts are decertified early. But for those that need the full 25 years after first receipt of increments, this could impact the ability to generate sufficient revenues.

A link to the bill can be found here. 

A link to the hearing schedule can be found here. The bill is currently scheduled for a hearing at 9:00 a.m. on Tuesday, February 18, 2025 in Room G-15 of the State Capitol.

If you would like to express your opinion on this legislation, we encourage you to submit a letter. Letters are due to the Committee Administrator no later than noon on Monday, February 17, 2025 (which is a holiday). Also, you may wish to contact your Senators directly and express your position. Here is a link to the Senate Tax Committee.

If you would like to testify, instructions to participate can be found here: Taxes - 2/18/2025

If possible, please notify the League of Minnesota Cities if you submit a letter or plan to testify by contacting:

Pierre Willette | Senior Intergovernmental Relations Representative
Phone: (651) 281-1207 | Mobile: (612) 578-7684
pwillette@lmc.org

If you have questions about any of the foregoing, please contact any of the attorneys listed below in Kutak Rock’s Public Finance Practice Group.