Minnesota lawmakers discuss TIF extension supporting Mall of America's Mystery Cove project

The Minnesota House Taxes Committee convened on April 10, 2025, to discuss significant legislative proposals aimed at enhancing economic development and housing opportunities across the state. A key focus of the meeting was the extension of Tax Increment Financing (TIF) flexibility, which is crucial for supporting construction projects and affordable housing initiatives.

Kyle Macarios, representing the Minnesota Building and Construction Trades Council, expressed strong support for a bill that would extend TIF flexibility for an additional two years. This extension is particularly important for the next phase of the Mall of America, which is set to include a new $325 million waterpark. Macarios highlighted the project's potential to create hundreds of construction jobs and boost tourism, emphasizing the longstanding partnership between the Mall and union workers.

Greg Hunt, the economic development manager for St. Louis Park, also voiced support for the proposed legislation. He detailed how TIF has been instrumental in the city’s efforts to increase affordable housing, noting that St. Louis Park has successfully utilized TIF to construct and preserve over 800 affordable housing units. Hunt advocated for the statewide application of the TIF extension, which he believes is vital for facilitating mixed-use developments that include affordable housing options.

Holly Masick, the port authority administrator for Bloomington, reinforced the importance of extending the TIF timeline. She explained that the extension would support an entertainment venue in the South Loop District, which is essential for revitalizing the local hospitality industry post-COVID-19. Masick pointed out that the Mall of America significantly contributes to Bloomington's economy, attracting millions of visitors annually and generating substantial tax revenue.

The discussions at the meeting underscored a collective commitment among local leaders to leverage TIF as a tool for economic growth and community development. The proposed legislation aims to not only enhance job creation but also address the pressing need for affordable housing in Minnesota, aligning with broader community goals of sustainability and economic resilience. As the committee moves forward, the outcomes of these discussions could have lasting impacts on the state's economic landscape and housing availability.