SF3918

Purpose

This bill would give the City of Chaska a special authority to use tax increment financing (TIF) for its Chaska Tax Increment Financing District No. 23. Specifically, it would allow the Chaska Economic Development Authority to collect tax increment from that district for up to 35 years after the first increment, even though this would override the usual limit set by current state law.

Main provisions

• Notwithstanding Minnesota Statutes section 469.176 subdivision 1b, the Chaska Economic Development Authority may collect tax increment from Chaska Tax Increment Financing District No. 23.
• The collection period can be up to 35 years after the receipt of the first increment.

Significant changes to existing law

• Adds a district-specific exception that overrides the standard TIF time limit (via the Notwithstanding clause) for District No. 23 in Chaska.
• Establishes a longer, targeted financing window (up to 35 years) for this district, enabling extended use of future tax increments to support development projects there.

Practical implications

• The city can potentially fund development projects in District No. 23 for a longer period (up to 35 years) using increases in property tax revenue generated by new or improved value within the district.
• This is a targeted policy change rather than a general reform to TIF rules statewide.

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