Certain increment usage to covert vacant or underused commercial or industrial buildings to residential purposes authorization and certain increment calculations and findings required for a district converting vacant or underused property modification

Minnesota Senate File 2824 allows cities like Minneapolis and St. Paul to use tax increment financing (using future tax revenue growth) to convert vacant or underused commercial/industrial properties into residential housing. It modifies eligibility rules for tax increment districts by adding commercial/industrial properties meeting specific vacancy criteria as qualifying redevelopment areas. The bill requires local governments to verify property conditions (e.g., unused status) and adjust tax calculations when converting such properties. This directly affects municipal redevelopment agencies, property owners with eligible underused buildings, and developers seeking to repurpose commercial sites for housing. The policy change streamlines the process for repurposing underutilized urban land without altering building codes or requiring new construction.