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Bloomington mayor urges two‑year TIF extension for Mall of America area; auditors and counsel still clarify spending‑plan authority
Summary
The Senate Committee on Taxes heard April 29 from Bloomington officials seeking a two‑year extension of temporary tax increment financing (TIF) transfer authority to support a proposed water park and other South Loop projects near the Mall of America.
The Senate Committee on Taxes heard testimony April 29 on Senate File 2337, a bill that would briefly extend temporary tax increment financing (TIF) transfer authority for the City of Bloomington to allow additional time to spend unobligated increment tied to a regional tourism redevelopment plan adjacent to the Mall of America.
Senator Karla Weber presented an A2 author’s amendment that narrows the bill’s scope to apply to the City of Bloomington only and extends the deadline to spend transferred increment through Dec. 30, 2027 for projects that would begin construction before that date. Weber said the extension would help Bloomington complete projects identified in a 2022 amended spending plan, including a proposed water park, a sports complex or an entertainment/event facility in the South Loop neighborhood.
Tim Bussey, mayor of Bloomington, told the committee the extension is needed because rising construction costs and interest rates have made it harder to complete projects approved in 2022. He said the spending plan supports a regional tourism attraction that draws about 32 million visitors annually and that the Mall of America accounts for roughly 12% of the city’s tax base.
Kyle Macarios (representing the Minnesota Building and Construction Trades Council) said the proposed Mystery Cove Waterpark would be a $325 million construction investment and “will put many hundreds of our members to work.”
Jason Nord, TIF division director at the Office of the State Auditor, appeared to explain remaining technical questions. Nord told senators that authorities have previously amended spending plans and that current law does not categorically prohibit such amendments. He said whether additional statutory language is needed depends on the exact changes the city and port authority seek; if amendments would extend deadlines or parameters set in statute, legislative language might be required.
Senator Weber urged Bloomington and its bond counsel to identify specific statutory deficiencies, if any, so the Legislature can address them. The committee laid Senate File 2337 as amended over in committee for further work.
Votes at a glance: The committee adopted the A2 author’s amendment and laid Senate File 2337, as amended, over by voice votes; no roll call was recorded in the transcript.
Next steps: Sponsors and local officials said they would continue discussions with the Office of the State Auditor, senate counsel and bond counsel to clarify whether additional statutory language is necessary to permit spending‑plan amendments and to resolve bond counsel concerns.
