Senate Taxes Committee lays over four local TIF special‑legislation requests for omnibus tax bill

The Minnesota Senate Taxes Committee on Feb. 6 laid over four local bills that would permit special tax increment financing (TIF) rules or extended timelines for redevelopment in Plymouth, Maple Grove, Brooklyn Center and Eden Prairie.

The committee took no final votes on the measures; each bill was “laid over for consideration in the omnibus Senate tax bill,” the chair said after the local presentations.

Plymouth (Senate File 63): Sponsor Senator Westlund presented a bill authorizing the city to create up to two redevelopment districts in Plymouth City Center under special rules. The bill would exempt the districts from several standard statutory requirements and extend a 5‑year reporting/construction rule to 10 years for those districts. Plymouth City Manager Dave Callister told the committee the district would support pedestrian safety, walkability, transit planning and housing near the Plymouth Ice Center and other attractions. “Using TIF within Plymouth City Center is a very important issue for our community and our city's future,” Callister said, adding the city has already invested in a $12 million paving project and regional stormwater infrastructure.

Maple Grove (Senate File 55): Senator Limmer presented a change to Maple Grove’s soils/gravelspecial‑law TIF that would extend the 5‑year rule by five years (to a 13‑year measure in the bill text) and increase the maximum increment collection period from 20 to 25 years. Maple Grove city administrator Heidi Nelson told senators the gravel mining area has already produced roughly 1.75 million square feet of industrial space and nearly 4,000 jobs since the district’s inception; she said about 60 acres remain to be developed and the city needs more time to complete that reclamation and industrial conversion.

Brooklyn Center (Senate File 85): Senator Paul introduced legislation to allow Brooklyn Center to create up to two redevelopment districts in an 80‑acre “opportunity site.” The bill would exempt the site from standard blight findings, relax the 90%‑spending requirement for blight correction and expire Dec. 31, 2031. Mayor April Graves and City Manager Reggie Edwards said the site could yield significant housing and commercial redevelopment. Edwards told the committee the full project could include approximately 4,000 housing units, up to 130,000 square feet of retail and roughly 400,000 square feet of employment space, with an estimated market value of about $340 million and a projected increase in tax base of about 12%.

Eden Prairie (Senate File 115): Senator Swazinski presented a bill to allow Eden Prairie to establish up to two redevelopment districts at Eden Prairie Center and adjacent rights of way, exempting the mall site from certain blight findings and the 90% spending rule. Dave Lindahl, the city’s economic development manager, said the Eden Prairie Center is about 1.4 million square feet (the third‑largest mall in Minnesota) and supports roughly 2,400 jobs; Lindahl said the mall’s inline vacancy and declining value have led the city to pursue a redevelopment that would demolish about 300,000 square feet of underperforming space and replace it with mixed uses (housing, hotel, office and limited commercial). Lindahl said redevelopment may include a mix with 25% of apartments designated as affordable.

Procedure and next steps: For each bill the chair said the language is substantially the same as the version considered in the 2024 tax bill and that the measures will be considered in the 2025 omnibus Senate tax bill. The chair warned that some local bills could be pulled or rescheduled if the Department of Revenue lacks information required to complete a revenue estimate; when that occurs, the bill will be heard later after the necessary revenue estimate information is provided.

Ending: Committee members thanked the city representatives for their presentations and the bills were laid over for omnibus consideration.