HF 2946

as introduced - 86th Legislature (2009 - 2010) Posted on 02/15/2010 09:38am

A bill for an act
relating to economic development; expanding a grant program for public
infrastructure for bioscience businesses to include clean energy businesses;
amending Minnesota Statutes 2008, section 116J.435, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 116J.435, as amended by Laws 2009,
chapter 35, sections 1, 2; and Laws 2009, chapter 78, article 2, section 12, is amended to
read:

116J.435 BIOSCIENCE new text begin AND CLEAN ENERGY new text end BUSINESS DEVELOPMENT
PUBLIC INFRASTRUCTURE GRANT PROGRAM.

Subdivision 1.

Creation of account.

A bioscience new text begin and clean energy new text end business
development public infrastructure account is created in the bond proceeds fund. Money
in the account may only be used for capital costs of public infrastructure for eligible
bioscience new text begin and clean energy new text end business development projects.

Subd. 2.

Definitions.

For purposes of this section:

(1) "local governmental unit" means a county, city, town, special district, public
higher education institution, or other political subdivision or public corporation;

(2) "governing body" means the council, board of commissioners, board of trustees,
board of regents, or other body charged with governing a local governmental unit;

(3) "public infrastructure" means publicly owned physical infrastructure in this state,
including, but not limited to, wastewater collection and treatment systems, drinking water
systems, storm sewers, utility extensions, telecommunications infrastructure, streets,
roads, bridges, parking ramps, facilities that support basic science and clinical research,
and research infrastructure; deleted text begin and deleted text end

(4) "eligible project" means new text begin : new text end

new text begin (i) new text end a bioscience business development capital improvement project in this state,
including: manufacturing; technology; warehousing and distribution; research and
development; bioscience business incubator; agricultural bioprocessing; or industrial,
office, or research park development that would be used by a bioscience-based business new text begin , or
new text end

new text begin (ii) a clean energy business development capital improvement project in this state;
new text end

new text begin (5) "clean energy business" means a business that furthers the development of
Minnesota's green economy; and
new text end

new text begin (6) "green economy" has the meaning given in section 116J.437 new text end .

Subd. 3.

Grant program established.

(a) The commissioner shall make
competitive grants to local governmental units to acquire and prepare land on which
public infrastructure required to support an eligible project will be located, including
demolition of structures and remediation of any hazardous conditions on the land, or to
predesign, design, acquire, construct, furnish, and equip public infrastructure required to
support an eligible project. The local governmental unit receiving a grant must provide for
the remainder of the public infrastructure costs from other sources. The commissioner
may waive the requirements related to an eligible project under subdivision 2 if a project
would be eligible under this section but for the fact that its location requires infrastructure
improvements to residential development.

(b) The amount of a grant may not exceed the lesser of the cost of the public
infrastructure or 50 percent of the sum of the cost of the public infrastructure plus the cost
of the completed eligible project.

(c) The purpose of the program is to keep or enhance jobs in the area, increase the
tax base, or to expand or create new economic development through the growth of new
bioscience businesses and organizations.

Subd. 4.

Application.

(a) The commissioner must develop forms and procedures
for soliciting and reviewing applications for grants under this section. At a minimum, a
local governmental unit must include the following information in its application:

(1) a resolution of its governing body certifying that the money required to be
supplied by the local governmental unit to complete the public infrastructure is available
and committed;

(2) a detailed estimate, along with necessary supporting evidence, of the total
development costs for the public infrastructure and eligible project;

(3) an assessment of the potential or likely use of the site for bioscience new text begin or clean
energy new text end activities after completion of the public infrastructure and eligible project;

(4) a timeline indicating the major milestones of the public infrastructure and eligible
project and their anticipated completion dates;

(5) a commitment from the governing body to repay the grant if the milestones are
not realized by the completion date identified in clause (4); and

(6) any additional information or material the commissioner prescribes.

(b) The determination of whether to make a grant under subdivision 3 is within the
discretion of the commissioner, subject to this section. The commissioner's decisions and
application of the priorities are not subject to judicial review, except for abuse of discretion.

Subd. 5.

Priorities.

(a) If applications for grants exceed the available appropriations,
grants must be made for public infrastructure that, in the commissioner's judgment,
provides the highest return in public benefits for the public costs incurred. "Public benefits"
include job creation, environmental benefits to the state and region, efficient use of public
transportation, efficient use of existing infrastructure, provision of affordable housing,
multiuse development that constitutes community rebuilding rather than single-use
development, crime reduction, blight reduction, community stabilization, and property tax
base maintenance or improvement. In making this judgment, the commissioner shall give
priority to eligible projects with one or more of the following characteristics:

(1) the potential of the local governmental unit to attract viable bioscience new text begin or clean
energy new text end businesses;

(2) proximity to public transit if located in a metropolitan county, as defined in
section 473.121, subdivision 4;

(3) multijurisdictional eligible projects that take into account the need for affordable
housing, transportation, and environmental impact;

(4) the eligible project is not relocating substantially the same operation from another
location in the state, unless the commissioner determines the eligible project cannot be
reasonably accommodated within the local governmental unit in which the business is
currently located, or the business would otherwise relocate to another state or country; and

(5) the number of jobs that will be created.

(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
commissioner may weigh each factor, depending upon the facts and circumstances, as
the commissioner considers appropriate.

Subd. 6.

Cancellation of grant.

If a grant is awarded to a local governmental unit
and funds are not encumbered for the grant within four years after the award date, the
grant must be canceled.

Subd. 7.

Repayment of grant.

If an eligible project supported by public
infrastructure funded with a grant awarded under this section is not occupied by a
bioscience new text begin or clean energy new text end business in accordance with the grant application under
subdivision 4 within five years after the date of the last grant payment, the grant recipient
must repay the amount of the grant received. The commissioner must deposit all money
received under this subdivision into the state treasury and credit it to the debt service
account in the state bond fund.