MN SF3474

Municipalities may stop tax increment financing (TIF) payments to developers, property owners, or note holders when a developer, contractor, or subcontractor is found to have violated state or municipal labor laws on an approved project

Payment stoppage authority applies regardless of any existing contract, note, or agreement to the contrary, and includes payments for project development costs and accrued interest

Labor law violation findings require a public hearing with newspaper notice published 10-30 days in advance, including the specific law violated and supporting facts such as dates, times, and locations

Affected parties may file written objections before the finding is adopted and may challenge findings in district court within 30 days, seeking equitable relief or damages

Courts must rule for the challenger if proper procedures were not followed or if the cited law was not actually violated; prevailing parties are entitled to costs and reasonable attorney fees