MN HF263

Authorizes the City of Shakopee to establish tax increment financing (TIF) districts in four specific parcels (identified by parcel numbers 279160102, 279160110, 279170020, and 279160120) subject to special rules.

Allows the city to establish "soil deficiency districts" within the project area where unusual terrain or soil deficiencies affecting over 70 percent of acreage require substantial filling or grading, and the preparation cost exceeds the land's fair market value.

Extends the standard five-year TIF collection period to ten years and the four-year administrative period to eleven years for all districts in the project area.

Limits tax increment revenue spent outside individual districts to no more than 80 percent of total revenue collected over the district's life, and restricts soil deficiency district increments to 20-year collection periods for correcting deficiencies, acquiring affected parcels, and paying administrative expenses.

Expires the city's authority to approve new TIF plans under these provisions on December 31, 2026, with the law becoming effective upon Shakopee's compliance with required statutory procedures.