Jenny Wolf, from the city's planning department, explained that TIFF allows the Housing and Redevelopment Authority to use tax revenue generated by new development to finance that same development—money that otherwise would go to schools and other taxing bodies. The system is designed to incentivize projects that wouldn't happen otherwise.

Under state law, TIFF districts can operate for 26 years. Of the tax revenue collected, at least 65% must go toward project costs, while up to 35% can be used for administration and affordable housing "pooling"—a fund that supports affordable housing projects even outside the district boundaries. For redevelopment districts specifically, at least 10% of that 35% must support affordable housing.

Council President Maker and Council Member Buouie asked detailed questions about how the money flows and whether school districts are harmed. Wolf clarified that schools still receive tax revenue based on the full property value, even within TIFF districts, because state funding makes up the difference. She also explained that property owners can petition their assessed values, which can affect tax collections.

A notable finding emerged during discussion: redevelopment TIFF districts generate significantly more revenue than housing TIFF districts, even though the city has fewer of them. Wolf attributed this to large projects like the Minnesota Event district downtown, which alone accounts for 20% of the city's total TIFF capture. Council President Maker questioned whether this disparity means redevelopment projects are generating more affordable housing funding without directly creating affordable units.

No votes were taken at the meeting. The council's questions suggest ongoing interest in how TIFF districts balance development incentives with affordable housing creation—a key concern as St. Paul continues managing growth across multiple development sites including Highland Bridge, the Ford site, and Fairview St. Joe's.