Under state law, the city of St. Paul must spend a pool of $6 million in uncommitted tax increment finance dollars on real estate development by December of 2025.

In the 2021 omnibus tax bill, the state Legislature allowed the city to take excess, or unobligated, tax increment balances and pool them in a holding account. While St. Paul’s Housing and Redevelopment authority put together a plan for some $21 million of the $27.55 million in excess TIF funds, $6 million remains.

What is TIF?

When developers seek to remove blighted properties and build affordable housing or commercial real estate, they often ask Minnesota cities for a type of tax incentive dubbed tax increment financing.

TIF allows them to capture the increased property tax resulting from the new construction and use it instead for certain types of on-site improvements, such as cleaning up pollution or adding public amenities like streets, sidewalks, sewer and water connections. After as many as 26 years, the TIF district expires, and the city and other taxing jurisdictions benefit from the higher tax revenues.

St. Paul currently captures 7.9% of its tax capacity — or 7.9% of the city’s cumulative potential property taxes — and redirects it to private development.

That adds up to $41 million in tax incentives drawn from 59 TIF districts across the city. Instead of fueling city, county and school district general funds, that $41 million in potential property tax backs new real estate that officials contend might not otherwise exist without such tax incentives.

Over the years, some critics have labeled TIF an unnecessary tax give-away to developers, who have grown accustomed to asking for it. In parts of the city where redevelopment has stalled, others see it differently. “We won’t use TIF unless the development wouldn’t happen without it,” said Nicolle Goodman, director of St. Paul Planning and Economic Development, during a recent meeting of the city’s Housing and Redevelopment Authority. “It’s not increment that would have existed otherwise.”

TIF districts

Developers and city officials, including St. Paul Mayor Melvin Carter, Councilwoman Rebecca Noecker, Director of Planning and Economic Development Nicolle Goodman and Developer Pete Deanovic, break ground on the new Farwell-on-Water district June 23, 2023. (Molly Wilson / Pioneer Press)

New TIF districts are supporting affordable housing at Buhl Investors’ Farwell Yards project on Plato Boulevard, CommonBond’s Lumin project at Highland Bridge and Johnny Opara’s The Hollows project on Payne Avenue, as well as the conversion of downtown Landmark Towers from an office tower to 187 units of market-rate housing.

Farwell Yards is situated in part on a new public street whose construction is supported by TIF, Bidwell Street, and will span a new 221-unit market-rate housing development that is not in the TIF district.

In addition, Snelling Midway Redevelopment LLC is relying on a TIF district to boost a planned hotel, restaurants and office space at United Village, by Allianz Field and Snelling and University avenues, replacing a previously-established “Renewal and Renovation” TIF district there. Three new TIF districts will soon roll out at The Heights, the redevelopment of the former Hillcrest Country Club and golf course, to support housing projects from Sherman Associates, Habitat for Humanity and the JO Companies.

St. Paul doesn’t contribute upfront

Rebecca Noecker (Courtesy photo)

In St. Paul, developers pay upfront for TIF-supported site improvements and are reimbursed over time through a pay-as-you-go financial note, meaning the developer absorbs all the financial risk in case the project fails.

“The city is not upfront contributing any cash to the project,” said St. Paul City Council Member Rebecca Noecker, during an April 10 meeting of the St. Paul HRA, whose board she chairs. “What we’re sending them back is their tax dollars that they’ve paid us. … We’re really not out anything, except the additional value of the land and the additional value of the development.”

Project areas can be larger than TIF districts, allowing cities to pool TIF dollars generated by a development and spend the money in the larger area around it, or even for affordable housing far off-site.

“It can happen anywhere in our city, if it’s a qualifying affordable housing project,” said Jenny Wolfe, debt manager for the city’s Housing and Redevelopment Authority, during an April 10 presentation to the council.

An extra $6 million must be spent by 2025

Landmark Towers in downtown St. Paul. (Courtesy of CBRE Group Inc.)

TIF districts sometimes generate more cash than they need to pay off their scheduled financial obligations. That’s largely because they’re usually structured with 10% of wiggle room to cover costs such as administrative expenses, Wolfe said.

St. Paul’s $27.55 million in pooled TIF must be spent on private development — including new construction or building renovations — underway by Dec. 31, 2025. The St. Paul HRA crafted a spending plan in June 2022, bolstering eight planned projects with some $21 million of the $27.55 million.

The eight projects include the renovation of an apartment building at 652 Sherburne Ave., the first phase of Habitat for Humanity homes at The Heights, the Landmark Towers conversion, Listening House, Little Africa Plaza, the Mali Center, the United Village redevelopment and a sanitary sewer project along Water Street.

That still leaves more than $6 million uncommitted, on the table for future development, with a deadline of December 2025 by which to spend it.

The city, the St. Paul HRA and the St. Paul Port Authority are authorized to establish TIF districts. The county and school board may comment on them, but they don’t have final authority over them, even though some of the revenues being generated would have otherwise flowed to their coffers.

There are currently 47 St. Paul HRA TIF districts, including 26 affordable housing districts, and 12 Port Authority TIF districts.

10% goal

Cheniqua Johnson (Courtesy photo)

The city maintains a general goal of keeping its TIF revenues below 10% of St. Paul’s tax overall capacity. That number is currently 7.87%, a bit below the five-year average of 8.1%, Wolfe said.

“We are comfortably below that 10% goal,” she told the council. “I feel comfortable that TIF is still a tool in our tool box for us to use judiciously as we seek development in our city.”

Still, the city’s TIF capture is expected to go up over the next few years, rising to be as high as 9.23% of St. Paul’s overall tax capacity by the year 2028, according to HRA projections. If the city’s tax base grows, that number is also projected to go down with time.

Council Member Cheniqua Johnson on April 10 asked city staff for a map or listing of where the TIF districts are located, delineating them by political ward.

Under state law, TIF cannot be used to build government buildings, parks or recreational buildings.

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PHOENIX — The Timberwolves were en route to their first series sweep in franchise history Sunday in Phoenix. But the closing minutes — which ended in celebration — weren’t without a major bump in the road for the Wolves.

Or, rather, a collision.

Mike Conley was dribbling up the floor late when Suns guard Devin Booker gave him a bump and sent Conley flying toward the Wolves’ bench. Conley fell directly into Timberwolves coach Chris Finch.

Finch fell to the floor and grabbed at his leg. He eventually was helped away from the court. The team said Finch ruptured his right patellar tendon.

Minnesota Timberwolves head coach Chris Finch, right, tries to avoid Timberwolves guard Mike Conley, back left, after Conley was fouled by Phoenix Suns guard Devin Booker, left, during the second half of Game 4 of an NBA basketball first-round playoff series Sunday, April 28, 2024, in Phoenix. The Timberwolves won 122-116, taking the series 4-0. (AP Photo/Ross D. Franklin)

“I didn’t see him, honestly, at first,” Conley said. “I was just trying to push the ball up the floor and Book hip checked me out of bounds and when I saw him it was too late. I was trying to grab him. Knocked over, hit his head, and I think his foot got stuck. So it was just bad timing. … Prayers up for him, I’m sure he’ll be fine. We’ll do it for him and we’ll keep moving.”

After the game ended, players made their way into the medical room to see their coach.

“And he’s obviously in great spirits and so are the guys,” said Wolves assistant coach Micah Nori, who served as acting head coach in Finch’s absence.

“He didn’t wanna see me at first,” Conley joked. “I walked in and he started to run away. He just tried to shoo me away.”

Anthony Edwards was clearly upset by the injury — perhaps because it was a product of a Booker bump.

“I was mad as hell. I was mad. Because it’s not even something I want to talk about. I was (ticked) off,” Edwards said. “But we had to finish the game, win the game. But for sure I was mad as hell.”

And Minnesota did finish the game off with a win with Nori steering the ship. The assistant coach successfully executed end-of-game scenarios that included an inbounds play resulting in a bucket, offense-defense substitutions and key timeouts.

“At the end of the day, everything, the way Finchy does things and the way we’ve done things all season long, everybody has their roles and everybody just has each other’s backs, if you will,” Nori said. “I know it sounds cliche and corny, but it’s next man up, even with the coaching staff – Pablo (Prigioni), Kevin Hansen, (Elston Turner), all those guys were great. … It was kind of – I would never say business as usual, because Finchy does a phenomenal job, but we’re just trying to carry over what he’s been doing.”

That could be the case moving forward, as well. No treatment plans have been announced yet for Finch, but it’s logical to assume he’ll need surgery. Minnesota’s next series will start Saturday or next Monday. Will Finch be able to start that series on the front row of the bench? It feels unlikely. But he’ll certainly have a heavy hand in any schematic and rotational decisions.

PHOENIX — Suns stars Devin Booker and Kevin Durant showed up in Game 4 on Friday in Phoenix, clearly determined to not get swept.

Booker poured in 49 points on 13 for 21 shooting. Durant had 33 points, nine rebounds and five assists. The Suns’ best players brought their best effort and delivered their best fight of the series.

And yet they were still knocked out by the best player on the floor over the last week. That was Anthony Edwards, who’s been brilliant all week, and saved his best for last.

The result?

The Timberwolves beat Phoenix 122-116 on Sunday to sweep the first-round playoff series in four games.

Edwards was spectacular in every sense Sunday, not only putting the Suns to bed, but tucking them in and reading them a bedtime story. He hit dagger shots, delivered a critical block to deter a Booker layup and threw down a thunderous slam that sent social media ablaze.

Each big play served as another dagger to Phoenix’s season. The decisive blow came with 20 seconds to play, when Edwards ran the length of the floor to put Minnesota up six.

Game, series.

Edwards scored 16 points in the final frame to secure Minnesota’s victory and deliver the team’s first sweep in franchise history. Edwards finished the game with 40 points, nine boards and six assists.

Minnesota advances to the Western Conference semifinals for the second time in franchise history, where it will meet the Lakers or Nuggets. The earliest that series can start is Saturday.

Timberwolves coach Chris Finch was injured in the final two minutes of the game, as Mike Conley crashed into the coach after he was fouled. Finch was down on the floor for awhile after suffering an apparent leg injury and had to be helped off the floor.

That was about the only hiccup for Minnesota down the stretch. The Wolves have struggled with late-game execution all season, sporting one of the worst clutch-time net ratings in the NBA post-Christmas.

But the plan Sunday was clear and and decisive — allow Edwards to control the game. That’s much easier done now that Edwards has grown such a knack for reading defenses and making the proper decisions.

It’s a near lock for Minnesota that, with the ball in Edwards’ hands, the Wolves will either generate an open look for someone or Edwards will impose his will.

The latter was often effective in Game 4. Edwards scored 29 points in the second half to bring Minnesota back from a five-point halftime deficit and close the Suns out.

Minnesota struggled to shoot in the first half. Karl-Anthony Towns hit all three of his 3-point tries over the first two quarters, while the rest of the Wolves went 1 for 17.

Minnesota found its stroke in the third quarter, though. The Wolves went 6 for 9 from deep in the frame in a major show of offensive burst behind Edwards’ excellence.

Still, Phoenix stuck with Minnesota, as the Wolves weren’t as sharp defensively as they’d been in prior contests throughout the series. Booker and Durant finally looked like All-Stars and found their way to the rim more often than Minnesota would’ve liked as Rudy Gobert struggled with foul trouble.

But, in the end, they were out-dueled.

At 22 years old, Anthony Edwards has now won a playoff series, and he’s in search for more.

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North Oaks product Frankie Capan III shot a 3-under 68 in the final round Sunday to finish 24-under on the week — good for fourth in the Veritex Bank Championship in Arlington, Texas.

Tom Widing shot an 8-under 63 on Sunday to get to 31-under and win the event — his second-straight victory — by four strokes.

The finish moves Capan up from 30th to 22nd on the Korn Ferry Tour’s season-long points list. The top 30 on the list at year’s end earn PGA Tour cards.

Capan has now logged three consecutive top-10 finishes.

He led this week’s event after the first round Thursday, when he shot a 13-under 58 to set a new Texas Rangers Golf Club course record, besting the previous record of 59 set by Scottie Scheffler.

Capan was in solo second, two back of Widing entering Sunday’s final round. He carded a 3-under 32 on the front-nine Sunday before sputtering a bit on his final nine.

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North Oaks’ Frankie Capan III shoots a 13-under 58 to take Round 1 lead in Korn Ferry Tour event