Law changes could spark more transit-oriented development

“A day after Gov. Mark Dayton backed an increase to the metro region’s transit-dedicated sales tax, local officials, developers and non-profit representatives on the Corridors of Opportunity Policy Board met to talk about state law changes that could be pursued to encourage more development along area transitways.

Expanding eminent domain laws, so that land within a quarter-mile of the Southwest Light Rail Transit line or the 53 DEED-designated Transit Improvement Areas could be assembled, accelerating what could be a protracted acquisition timeline reliant on willing sellers.

Allow counties and cities to create “value capture” zones within a half-mile of station areas, where state commercial property taxes would be exempted for ten years and Tax Increment Financing (TIF) could be directed to land and infrastructure costs.

Create a long-term loan fund from pooled TIF funds that could be used to seed projects along transit corridors.

Local officials who believe existing tools (such as environmental clean-up grants from the Met Council) are too limited are hoping to make a push this year. For now, though, no legislation has been proposed and it’s uncertain what kind of reception any of the proposals would get from state lawmakers.”

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Kerr, Drew. Working on the Railroad 24 January 2013.