Lawmakers weigh legislation that would expand Minneapolis' downtown taxing area, seek golf events

At first glance, HF4361 looks something like a grab bag of almost unrelated items.

But a closer look at the bill sponsored by Rep. Esther Agbaje (DFL-Mpls) reveals four provisions designed to raise revenues in one area and disperse them in another.

The bill was laid over by the House Taxes Committee on Tuesday, as amended, for possible omnibus bill inclusion.

So here’s the essence of HF4361:

Minneapolis has a designated Downtown Taxing Area in which it currently imposes a 3% sales tax on liquor and beer and another 3% tax on food at restaurants. The bill proposes expanding that taxing area to include more of the popular restaurant and bar district known as the North Loop, which has seen a lot of development in recent years.

Meanwhile, there’s a provision in statute that earmarks a portion of those tax proceeds for infrastructure and capital improvements for the Minnesota Vikings’ home, U.S. Bank Stadium, at the east end of Downtown Minneapolis. HF4361 would strike that provision.

And speaking of sports: The bill would also appropriate $7 million from the General Fund in Fiscal Year 2027 for a grant to the City of Chaska to attract future PGA of America championship-level golf events.

That would be paid for by canceling $7 million of a 2023 Minnesota Forward Fund appropriation designed to match federal funds and transferring that amount to the General Fund.

Agbaje said that Downtown Minneapolis has changed since the taxing district was launched in 1986.

“The North Loop neighborhood now has many of the same amenities and attractions as Downtown and should be part of the current-day Downtown Entertainment District,” she said.

U.S. Bank Stadium in Minneapolis. (House Photography file photo)

Agbaje added that Minneapolis intends to uphold its obligation to pay for U.S. Bank Stadium’s operating and capital costs, which she said will amount to “over $500 million over the next 20 years. … With this change, the city will be recouping approximately $62 million until about 2046.”

Rep. John Huot (DFL-Rosemount) expressed disgruntlement with the Minnesota Sports Facilities Authority, which is responsible for overseeing the operations and long-term maintenance of the state-owned U.S. Bank Stadium.

“I’ve been on this board two out of the four terms I’ve been in the House,” he said. “They’ve met zero [times]. This is a serious thing. As legislators, we’re supposed to sit on these boards. The board is supposed to call these meetings and they don’t.

“I am sick and tired of these fake boards out there that we are apparently a part of. This is a state facility that we should be looking at. We have these big obligations to the Vikings and the Twins that we’re signed on the bottom line for.”

The board chair sent a letter to the committee objecting to the proposal.

The committee’s co-chair, Rep. Greg Davids (R-Preston), said he was pleased that “finally, we recognize the importance of the PGA Championship events.”

“It’s such a good thing for the state, and the money that will come in is going to be tremendous,” he said. “I will support that, but not with this funding mechanism. … I remember trying to raid the fund that we’re trying to raid here to build veterans’ homes. And you would have thought that I had taken somebody’s firstborn. I got beat down so bad.”

Davids is against eliminating funding for the maintenance of U.S. Bank Stadium.

“That’s a commitment the city made and the state has, and we need to keep that in there.”