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Committee lays over Bloomington Port Authority request to extend tax exemption for former hotel site
Summary
Senate File 15-87, seeking a six-year extension of a property tax exemption for an 11-acre redevelopment site in northeast Bloomington, was laid over for inclusion in the omnibus tax bill after testimony from Bloomington Port Authority staff about market conditions and site history.
Senate File 15-87, a request from the City of Bloomington and its Port Authority to extend an economic development property tax exemption for an 11-acre former hotel site, was laid over for consideration in the omnibus tax bill following testimony from Port Authority staff on Wednesday.
Senator Wicklund presented the bill and said the Port Authority seeks a six-year extension to total 15 years of exemption starting January 1, 2025, to allow additional time to market a large redevelopment parcel south of the Minneapolis–Saint Paul airport. "This 11-acre property... is highly visible and situated just south of MSP Airport," said Holly Macek, identified as Bloomington Port Authority administrator. The site was held for several years during the state's pursuit of a World's Fair Expo bid; after that effort ended in 2023, interest slowed amid rising interest rates.
Macek told the committee the property remains publicly owned and was purchased in 2016 to prevent low-density development and hold the site for higher-value redevelopment. She said the Port Authority has received inquiries and is evaluating uses that could include high-density housing, retail, cultural uses, and semiconductor or high-tech manufacturing related to growth in the South Loop neighborhood and proximity to the Mall of America.
Committee members asked about the state revenue estimate and whether the February forecast could change cost estimates. Department of Revenue staff participating online said the revenue estimate was based on the November 2024 forecast and that past changes between November and February forecasts have been unlikely to significantly alter such estimates.
Action: Senate File 15-87 was laid over for consideration in the omnibus tax bill. Committee discussion noted the modest projected fiscal impact in the revenue estimate and that further budget forecasting could be informative as omnibus negotiations proceed.
The Port Authority said it will continue marketing the site; the extension would preserve flexibility for redevelopment decisions pending market improvement.
