• Senate Tax Committee - The Committee heard S.F. 7 (Rest), a bill that would change the Tax Increment Financing (TIF) authority available to cities. Senator Rest explained that she doesn’t want projects to come to the Tax Committee for adjustments to the definition of “blight” that are not consistent with the 21st century. Communities have rarely used renovation districts in favor of certifying redevelopment districts, so Senator Rest is collapsing them into one. Redevelopment districts are consistently being decertified early, which tells her that the project is paid off and puts the property back into the general tax base. Senator Rest wants to ensure that the increment is used for the project that the TIF district was certified for, with the goal to get it back in the tax base. She gives the redevelopment TIF district a softer definition and reduces the duration from 25 to 20 years. She noted that cities and developers have reached out and they are happier with the softer definition but are unhappy about shortening the duration. In her opinion, if a district needs a longer duration, she wants them to come to the Tax Committee for a special exception. She’s very concerned about increments that continue when they could be decertified early. Stacie Kvilvang with Ehlers testified with concerns about the bill and the League of Minnesota Cities, Metro Cities, Coalition of Greater Minnesota Cities, and Economic Development Association of Minnesota submitted letters expressing their concerns. Senator Weber did express some concern about the economic pressures and reducing the duration from 25 to 20 years. Senator Rest expressed a willingness to look at the duration again. The companion bill hasn’t yet been scheduled for a hearing in the House.   

Wednesday, February 19

• House Housing Finance and Policy Committee – The committtee heard H.F. 1067 (Dotseth), which would grant exceptions to income limits of the Minnesota Housing Tax Credit contribution account grant and loan program for certain workforce housing. Testifiers in support of the bill included the League of Minnesota Cities, the Minnesota Housing Partnership, D.W. Jones, and DigiKey. Thank you to the GMNP members that testified!

Thursday, February 20

• Senate Housing and Homelessness Prevention – The committee heard the some initial informational testimony from the following:
  • Dante Tomassoni, Cirrus Aircraft - spoke about the challenging housing market in the Duluth area and how that has impacted Cirrus' ability to attract and retain their workforce.
  • Nate Keller, St. Joseph - shared the housing challenges St. Joseph is facing related to infrastructure and the demand for all types of housing that is preventing individuals and families from moving to or remaining in St. Joseph.
  • Ted Brokaw, International Falls - spoke about the housing needs in International Falls including infrastructure and workforce housing. He shared the work that the city has been doing to support additional housing development in the community, and the need for the state to also continue supports through key programs.
  • Cap O'Rourke, Minnesota Association of Small Cities - spoke generally about housing needs in Greater Minnesota, as well as support for key programs and frustration that some new programs have yet to roll out.
  • Senator Lucero shared information about an article in Business Insider that projects a future apartment crunch because apartment construction has slowed. Senator Draheim also expressed his support for the housing infrastructure program and reminded his colleagues of the infrastructure costs associated with housing development, which are currently close to $100k per project.
• The following bills were heard:
  • S.F. 906 (Port), appropriations for the Greater Minnesota Housing Infrastructure program. Senator Putnam presented the bill. Senator Port shared her commitment to Greater Minnesota and recognition that housing is an important component for Greater Minnesota communities to grow and economically thrive. She shared her opinion that the state needs to invest over the long term. The bill was laid over.
  • S.F. 1339 (Hauschild), bonding funds for the Greater Minnesota Housing Infrastructure program. Senator Hauschild walked through the bill and answered questions about how the program works. The bill was laid over.
  • S.F. 1227 (Draheim), Greater Minnesota Senior Housing Infrastructure Grant Program establishment and appropriation. Senator Draheim also offered an amendment to the program to include disability access. The bill was laid over.
  • S.F. 1512 (Putnam), workforce housing development appropriation. Senator Putnam presented his bill and highlighted the housing and child care challenges facing Greater Minnesota. He expressed his goal that the committee provide supports for Greater Minnesota. The bill was laid over.

• H.F. 1133 (Elkins), exempts certain housing proposals from interim ordinances. Not scheduled for a hearing.
• H.F. 1136 (Elkins), building permitting must be accomplished within 60 days. Not scheduled for a hearing.
• H.F. 949 (Davids)/S.F. 23 (Rest), clarifies the TIF increment that must be returned to the district including increments not spent, loaned, or invested and includes proceeds, principal, interest, or investment earnings. Not scheduled for a hearing.

 

• H.F. 1141 (Howard)/S.F. 203 (Port), HIB bonds authorized for $400M. Heard in Senate Housing, laid over.
• H.F. 334 (Johnson)/S.F. 584 (Jasinski), BDPI bill $20M from GO bonds. Heard in Senate Capital Investment, laid over.
• H.F. 948 (Davids)/S.F. 7 (Rest), Adjustments to TIF for redevelopment districts. Heard in Senate Taxes and laid over. Not scheduled for a hearing in the House.
• H.F. 1143 (Howard)/S.F. 906 (Port), Greater MN Housing Infrastructure Program $5M for FY2026. Heard in Senate Housing 2/10, laid over.
• H.F. 112 (Coulter), Modifying prevailing wage requirements to include TIF under Chapter 469. Not scheduled for hearings.
• S.F. 1521 (Pha), Small Business Assistance Partnerships funding $6.245. 
• S.F. 1512 (Putnam), $20M for Workforce Housing Development program. Hearing 2/20 in Senate Housing, laid over.

 

The House and Senate agreed to the following Legislative breaks (expect these to remain unchanged): 

• Eid Break - March 29 – March 31 with Committee activities resuming on April 1, 2025.  

• Easter/Passover break – April 11 at 12pm – April 21 at 12pm 

Expect bill deadlines to be announced soon, but there is no agreement yet.