The property tax exemption for Minnesota United’s soccer stadium has begun its journey through the state legislature. The Taxes Committee will have its first hearing on the 2017 house version of an omnibus tax bill on Wednesday, Feb. 22. The stadium property tax exemption has been included in that measure.
Tax legislation must originate in the Minnesota House. Bill HF893, which includes the stadium language, was introduced on Feb. 6, but not made public until recently. The hearing on Wednesday will be the first hurdle for the 2017 version of the bill.
The stadium tax exemption language is identical to last year’s version, which had bipartisan support. However, last year’s stadium bill was a stand-alone measure and, after several committee hearings, was added to an omnibus tax bill that was held over from the 2015 session.
The legislation allows the city of St. Paul to lease the land the stadium will sit on from Metro Transit. That property has been tax-free for more than 50 years. That exemption was originally granted because the property was used for public transportation purposes. The Federal Transit Administration has approved the new use of the property as long as the rest of the 15 acres of land that Midway Center sits on becomes a transit oriented development. But the City of St. Paul wanted to make sure the property is also free of state taxes, much like CHS Field in Lowertown.
The 2016 bill passed in the final hours of the legislative session in May, but a technical error caused the governor to pocket veto the measure.
Today’s omnibus tax bill hearing can be viewed on the Minnesota House live webcast and mobile stream. It begins at 10:15 a.m.
Minnesota United has said it would like to start site cleanup on the Midway “bus barn” site in April. The City of St. Paul and the team would like to see the tax relief approved before starting any construction on the site. Team owner Bill McGuire has previously stated that property tax relief was critical to complete his stadium plan on the nine-acre parcel.
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