A common and sometimes controversial funding mechanism is growing in popularity in suburban Minnesota, even as its use in the urban core decreases.
Eric Roper and John Reinan report that communities in the suburbs of the Twin Cities are relying more and more on tax increment financing (TIF), as Minneapolis has largely abandoned the funding mechanism except top fund housing.
According to the article, TIF is "the backbone of Edina’s plan to rebuild a massive 1960s office park; of Wayzata’s new downtown housing and retail complex; of glitzy outdoor malls in St. Louis Park and Eagan; and mixed-use districts around several Northstar commuter rail stations."
In fact, the 15 costliest subsidy districts approved in the state in the last five years were all located in the suburbs or outstate Minnesota. Meanwhile, the amount of revenue generated by TIF in Minneapolis is in decline as older districts expire, according to the article.
The article includes a lot more examples of case studies from cities around the state of Minnesota.
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