Bill
SF 4986
The bill expands Hennepin County’s financing tools, creating a 1% sales tax to fund the ballpark, public infrastructure, health care facilities, and capital improvements, with gran
SF4986 Summary — 94th Legislature (Minnesota, 2025-2026)
Overview
- Bill: SF4986
- Session: 2025-2026
- Jurisdiction: Minnesota (Hennepin County)
- Purpose: Modify the authority and uses of the Hennepin County local sales tax for development related to a ballpark, and expand grants and financing for county health care facilities and related improvements. The bill also makes targeted changes to governance and invoicing related to the ballpark development authority.
Key Provisions and Changes
1) Qualifying government designation for the investment framework (Sec. 1)
- The Hennepin County ballpark authority is designated a qualifying government for purposes of a specific Minnesota tax policy (section 118A.09).
- When the authority’s investments are managed by the county, the authority’s long-term equity investment limits are calculated based on the county’s most recent audited position, not the authority’s.
2) Ballpark grants framework (Sec. 2, Sec. 4, Sec. 7-8)
- Ballpark Grants (Sec. 2): The county may grant funds to the ballpark authority for ballpark development, construction, public infrastructure, capital improvements within the development area, reserves for capital improvements, and related purposes, subject to limitations (as further defined in Sec. 3).
- Expenditure limits for ballpark costs (Sec. 4): The prior cap structure is adjusted. The section sets a broad framework for ballpark-related spending and grants, including land, site improvements, and public infrastructure with a financial ceiling of $90,000,000 for those items (excluding capital reserves, bond reserves, capitalized interest, and financing costs). Grants can cover agreements that span future years and do not constitute county debt.
- Local government expenditures and reimbursements (Secs. 7-8): The county may reimburse local governmental units or provide grants for site acquisition, site prep for ballpark development, and public infrastructure. The county’s authority to acquire and develop ballpark sites, and to enter contracts with the authority and others, is reaffirmed.
3) Hennepin County health care facilities grants (Sec. 3, Sec. 11, Sec. 12)
- New Subdivision 2a (Sec. 3): Establishes a framework to distribute money from the local sales tax (after debt service is paid) to support county-owned or county-operated health care facilities and related infrastructure, with emphasis on:
- Up to $24,000,000 annually (adjusted for annual percentage increases) to a qualifying private nonprofit hospital in Hennepin County designated as a Level I trauma center and providing statewide EMS ground/air transport. Funds are for uncompensated care and are governed by a detailed formula and conditions.
- Conditions include specific metrics for uncompensated care (excluding certain payments, accounting for Medicare/DSH considerations, and residency alignment), avoidance of payments if ownership transfers to for-profit entities, and a framework for distributing the remainder to county health care facilities and related health services.
- Allocation for county-owned or county-operated health care facilities, including construction, operation, capital improvements, uncompensated care, operating costs, and other health-related programs (including low-barrier housing and other health-related social needs).
4) Capital improvement grants (Sec. 5)
- New Subdivision 3a: Allows the county to grant up to $7,000,000 annually to fund capital improvements for the ballpark authority. These grants are subject to an interagency agreement (473.759, Subd. 3) and inflation adjustments, and are not considered county debt or subject to referendum requirements.
5) Property acquisition/disposition and health care facility land rights (Sec. 6)
- (a) Ballpark development: The county may acquire property within the development area for the ballpark site and public infrastructure, including limited rights within 1,000 feet of the development area border. This includes parking facilities, drainage, environmental remediation, and related infrastructure.
- (b) Health care facilities: The county or its subsidiaries may acquire land rights and property interests within the county for health care facilities and related infrastructure.
- (c) Excess property: The county may dispose of property not required for public infrastructure, with proceeds deposited into the debt service reserve fund.
6) Local government expenditures; broader authority (Secs. 7-8)
- Expands the scope for expenditures, grants, and reimbursements to support the ballpark and health care initiatives, reinforcing flexibility for public/private partnerships and intergovernmental financing.
7) Sales tax authority and uses (Sec. 10-11)
- Sales tax rate: The county may impose a 1.0% sales and use tax (up from 0.15%) for purposes listed in the act.
- Uses of tax ( Sec. 11): Revenues may be used for:
- Collection costs
- Debt service payments on bonds issued for ballpark and related improvements
- Maintenance of reserves for these purposes
- Operating costs of the ballpark authority (excluding ballpark maintenance)
- Youth activities, amateur sports, and extended library hours (existing language retained)
- Health care facilities expenditures as described in Sec. 3a
- Capital improvement expenditures authorized under Sec. 3a and related purposes
- Other authorized purposes, including financing costs
- Revenue allocation specifics: After ballpark completion, excess tax revenues should be used to redeem/defease bonds and establish reserves for future obligations; taxes terminate when reserves are sufficient to cover future obligations.
8) Reserve for capital improvements (Sec. 12)
- Establishes a capital improvements reserve funded by annual payments, with rebalanced contributions that split between the county and team contributions (team portion scaled to present value). The authority may accept additional contributions.
9) Effective date
- All sections (Sections 1-12) become effective the day after final enactment.
Who Is Affected
- Hennepin County and its residents.
- Ballpark Authority and the private nonprofit ballpark-related entities designated within the program.
- A designated Level I trauma hospital in Hennepin County (as part of the health care subsidies).
- Other local governmental units affected by grants/reimbursements and site development within the ballpark development area.
- County-owned or county-operated health care facilities that may receive funding for improvements, operating costs, and other health-related activities.
Timeline and Procedural Notes
- The bill authorizes the county to issue revenue bonds (Sec. 9) without an election, with terms for repayment from taxes and other revenues.
- Grant agreements and capital improvement grants may span multiple years and are not restricted by immediate debt limits, subject to intergovernmental agreements and inflation adjustments.
- Tax revenues would begin after the act’s effective date, with phased spending tied to debt service and capital improvement schedules.
Potential Impact
- Increased funding flexibility for the Hennepin County ballpark project and related public infrastructure, alongside expanded support for county health care facilities and uncompensated care.
- Significant policy changes to financing mechanisms, including a 1.0% local sales tax and new grant formulas, with potential impacts on county budgeting, hospital funding, and ballpark financing.
- The framework emphasizes public-private collaboration, health-related services, and infrastructure improvements in the development area, with explicit governance and reserve requirements.
Compiled from official sources — confirm details with the bill’s official record.
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