HF 768

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to capital improvements; authorizing the
issuance of state bonds; appropriating money to the
commissioner of employment and economic development
for transfer to the redevelopment account; amending
Minnesota Statutes 2004, sections 116J.571; 116J.572,
subdivision 2; 116J.573; 116J.575, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 116J.571, is
amended to read:

116J.571 CREATION OF ACCOUNTS.

Two deleted text begin greater Minnesota deleted text end redevelopment accounts are created,
one in the general fund and one in the bond proceeds fund.
Money in the accounts may be used to make grants as provided in
section 116J.575. Money in the bond proceeds fund may only be
used for eligible costs for publicly owned property. Money in
the general fund may be used to pay for the commissioner's costs
in reviewing the applications.

Sec. 2.

Minnesota Statutes 2004, section 116J.572,
subdivision 2, is amended to read:

Subd. 2.

Development authority.

"Development authority"
includes a statutory or home rule charter city, county, housing
and redevelopment authority, economic development authority, or
port authority deleted text begin located outside the seven-county metropolitan
area, as defined in section 473.121, subdivision 2 deleted text end .

Sec. 3.

Minnesota Statutes 2004, section 116J.573, is
amended to read:

116J.573 CRITERIA FOR ACCOUNTS AND PROJECTS.

Subdivision 1.

Accounts.

Criteria for use of the
accounts created in section 116J.571 must be consistent with and
promote the purposes of sections 116J.571 to 116J.575. They
include, but are not limited to:

(1) creating and preserving living wage jobs deleted text begin in greater
Minnesota deleted text end ;

(2) creating incentives for communities to include a full
range of housing opportunities;

(3) creating incentives for all communities to implement
compact, efficient, and mixed-use development; and

(4) creating incentives to assist communities in
maintaining a unique sense of place by preserving local,
cultural assets.

Subd. 2.

Projects.

To be eligible for funding by the
deleted text begin greater Minnesota deleted text end redevelopment account, a project must:

(1) interrelate redevelopment with other public investments
in transportation, housing, schools, energy, utilities
information infrastructure, and other public services;

(2) interrelate affordable housing and employment growth
areas;

(3) intensify land use that leads to more compact
redevelopment;

(4) involve redevelopment that mixes incomes of residents
in housing, including introducing or reintroducing higher value
housing in lower income areas to achieve a mix of housing
opportunities;

(5) involve participation from citizens and the business
community in the planning and development of the proposed
redevelopment plan;

(6) encourage public infrastructure investments which
attract private sector redevelopment investment in commercial,
industrial, and residential properties adjacent to public
improvements, and provide project area residents with expanded
opportunities for private sector employment; or

(7) be sustainable at the local level and reduce the
probability of future requests for state development,
maintenance, or replacement assistance.

Subd. 3.

Other factors.

The factors listed in
subdivisions 1 and 2 are not ranked in order of priority.
Rather, the commissioner may weigh each factor depending upon
the facts and circumstances as the commissioner considers
appropriate. The commissioner may consider other factors
including, but not limited to, blight reduction, community
stabilization, and property tax base maintenance or improvement.

Subd. 4.

Partnerships.

The commissioner shall give
priority to proposals using innovative financial partnerships
between government, private for-profit, and nonprofit sectors deleted text begin as
well as to proposals that meet current tax increment financing
requirements for a redevelopment district and contribute tax
increment financing towards the project deleted text end .

Subd. 5.

Annual report.

The commissioner shall prepare
and submit to the legislature an annual report on the deleted text begin greater
Minnesota deleted text end redevelopment account. The report must include
information on the amount of money in the account, the amount
distributed, to whom the grants were distributed and for what
purposes, and an evaluation of the effectiveness of the projects
funded in meeting the policies and goals of the program.

Sec. 4.

Minnesota Statutes 2004, section 116J.575,
subdivision 1, is amended to read:

Subdivision 1.

Commissioner discretion.

The commissioner
may make a grant for up to 50 percent of the eligible costs of a
project. new text begin The commissioner shall, in each grant cycle, make
grants so that 50 percent of the dollar value of grants for that
cycle are for projects located outside of the seven-county
metropolitan area as defined in section 473.121, subdivision 2,
and 50 percent are for projects located within the seven-county
metropolitan area. This allocation of grant funds does not
apply for any grant cycle in which the applications received by
the application deadline are insufficient to permit the equal
division of grants between metropolitan and nonmetropolitan
projects. new text end The determination of whether to make a grant for a
site is within the discretion of the commissioner, subject to
this section and sections 116J.571 to 116J.574 and available
unencumbered money in the deleted text begin greater Minnesota deleted text end redevelopment
account. The commissioner's decisions and application of the
priorities under this section are not subject to judicial
review, except for abuse of discretion.

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $20,000,000 is appropriated from the bond proceeds fund to
the commissioner of employment and economic development for
transfer to the redevelopment account created in Minnesota
Statutes, section 116J.571.
new text end

Sec. 6. new text begin BOND SALE.
new text end

new text begin To provide the money appropriated in this act from the bond
proceeds fund, the commissioner of finance shall sell and issue
bonds of the state in an amount up to $20,000,000 in the manner,
upon the terms, and with the effect prescribed by Minnesota
Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day following final
enactment.
new text end