HF3450

Purpose

This bill gives the City of Chaska a special authority to use tax increment financing (TIF) to support economic development. Specifically, it allows the Chaska Economic Development Authority to collect tax increment from Chaska Tax Increment Financing District No. 23 for up to 35 years after the first increment is received, overriding a specific existing law.

Main Provisions

• The Chaska Economic Development Authority may collect tax increment from Chaska Tax Increment Financing District No. 23.
• The collection period can last for up to 35 years after the receipt of the first increment.
• This authority applies notwithstanding Minnesota Statutes section 469.176 subdivision 1b (i.e., it sets an exception to the usual rule).

Notable Changes to Law

• Establishes a special exception allowing a longer TIF collection period (up to 35 years) for District No. 23.
• Overrides the standard limitation found in Minnesota Statutes section 469.176 subdivision 1b for this district.

Scope and Beneficiaries

• Beneficiary: City of Chaska through the Chaska Economic Development Authority.
• Area affected: Chaska Tax Increment Financing District No. 23.

Relevant Terms - tax increment financing (TIF) - Tax Increment Financing District No. 23 - Chaska Economic Development Authority - City of Chaska - Minnesota Statutes section 469.176 subdivision 1b - notwithstanding - first increment - 35 years