H.F. 5194 Summary

• Authorizes Brooklyn Park to establish three new Tax Increment Financing (TIF) districts (Village Creek Area, 610/Zane Area, and BioTech Area) with special rules exempting them from certain state statutory requirements and allowing increment to be used for public infrastructure, building improvements, and environmental sustainability projects through December 31, 2044.

• Allows Tax Increment Financing Districts Nos. 18 and 20 to collect increment for 25 years instead of the standard timeframe and permits increment from these districts to be transferred to District No. 3 without being returned to Hennepin County.

• Establishes a value capture district near stations on the METRO Blue Line Light Rail allowing Brooklyn Park to collect tax revenue on property value increases within a one-quarter mile radius of stations for up to 25 years to fund transit-oriented development, antidisplacement programs, and infrastructure improvements.

• Exempts property taxes abated for public infrastructure projects from state limitations and eliminates restrictions on the amount of property tax abatement the city can use.

• Provides a sales and use tax exemption for construction materials and equipment purchased between February 28, 2023, and April 1, 2030, for 12 specific city projects including fire stations, recreation centers, water treatment facilities, and trails, with the state appropriating funds for refunds.