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File #: 2023-499   
Type: Administrative Item Status: Passed
In control: Board of Commissioners
On agenda: 11/21/2023 Final action: 11/21/2023
Title: Extension of a Tax Increment Financing District for the Minnesota Event District in the City of Saint Paul
Sponsors: Property Tax, Records & Election Services
Attachments: 1. MN Event TIF Agreement.pdf, 2. Resolution

                                                                                                         

Sponsor: Property Tax, Records & Election Services

 

Title

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Extension of a Tax Increment Financing District for the Minnesota Event District in the City of Saint Paul

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Recommendation

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1.                     Approve the Minnesota Laws 2023, Chapter 64, Article 8, Section 4 which amends the authorized expenditures of the tax increments during the extended term and authorizes the Housing Redevelopment Authority of the city of Saint Paul to extend the duration of the Downtown and Seventh Place Tax Increment Financing District by 10 years to December 31, 2033.

2.                     Approve the Amended Agreement with the city of Saint Paul and the Housing and Redevelopment Authority of the city of Saint Paul for a period upon execution through December 31, 2033.

3.                     Authorize the Board Chair and Chief Clerk to execute the Amended Agreement.

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Background and Rationale

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Pursuant to Laws of Minnesota 2008, Chapter 366, Article 5, Section 36 (the “2008 Special Law”) the city of Saint Paul, Minnesota (the “City”) and the Housing and Redevelopment Authority of the city of Saint Paul, Minnesota (the “HRA”) established a redevelopment tax increment financing district (the “TIF District”) comprised of the same properties included in the former Downtown and Seventh Place Tax Increment District (County #82). The TIF District was created after meeting certain conditions specified in the 2008 Special Law, including but not limited to the condition that the City and the HRA enter into that certain Tax Increment Agreement with Ramsey County (the “Original Agreement”), pursuant to which the parties agreed that Ramsey County would be paid annually out of increments from the TIF District amounts equal to the tax that would have been payable to Ramsey County had the TIF District not been created. The TIF District was scheduled to terminate on December 31, 2023. 

 

Minnesota Laws 2023, Chapter 64, Article 8, Section 4 (the “2023 Special Law”) amends the authorized expenditures of the tax increments during the extended term and authorizes the HRA to extend the duration of the TIF District by 10 years to December 31, 2033, subject to certain terms and conditions.  The 2023 Special Law is effective upon approval by a majority vote of the city of Saint Paul City Council, a majority vote of the Ramsey County Board of Commissioners, and a majority vote of the School Board of Independent School District No. 625, and the filing of a certificate with the Minnesota Secretary of State, all in accordance with Minnesota Statutes, Sections 469.1782 and 645.021, subdivisions 2 and 3.

 

In order to continue annual payments to Ramsey County for the extended duration of the TIF District, the city of Saint Paul, Saint Paul HRA and Ramsey County must amend and restate the Original Agreement to extend the term of the agreement to December 31, 2033 as further set forth in that certain Amended and Restated Tax Increment Agreement (the “Amended Agreement”), a form of which is presented to the Ramsey County Board.

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County Goals (Check those advanced by Action)

       Well-being             Prosperity                 Opportunity                 Accountability

 

Racial Equity Impact

TIF districts can spur economic development and investment in certain areas, potentially leading to job creation and improved amenities.

 

Community Participation Level and Impact

TIF districts are often created to stimulate economic development.  This can enhance the overall quality of life for residents and businesses in the community.

  Inform              Consult                                 Involve                      Collaborate        Empower                     

 

Fiscal Impact

The amendment will continue annual payments to Ramsey County until 2033. The proposed 2024-2025 Ramsey County budget includes an annual payment of $3,000,000 from the city of Saint Paul.

 

 

Last Previous Action

On July 22, 2008, the Ramsey County Board of Commissioners approved a tax increment agreement with the city of Saint Paul and the Housing and Redevelopment Authority of the city of Saint Paul to receive tax increment from the new downtown TIF district (Resolution B2008-238).

 

Attachments

1. MN Event TIF Agreement