HF 1064

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

A bill for an act
relating to Minneapolis-St. Paul International
Airport; providing for the impact of expansion of the
Minneapolis-St. Paul International Airport;
authorizing airport mitigation planning and the
establishment of airport impact zones in the cities of
Bloomington, Burnsville, Eagan, Mendota Heights,
Minneapolis, Richfield, and St. Paul; creating an
airport impact mitigation fund in the state treasury;
authorizing certain related activities by the
Department of Employment and Economic Development;
authorizing a metropolitan area credit enhancement
program including a contingent metropolitan area
property tax levy; appropriating money.

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

Section 1. new text begin FINDINGS.
new text end

new text begin The legislature finds that:
new text end

new text begin (1) the legislature has directed the Metropolitan Airports
Commission to develop a plan to mitigate aircraft noise
associated with the operation of the Minneapolis-St. Paul
International Airport;
new text end

new text begin (2) the Metropolitan Airports Commission has developed a
noise mitigation plan in conjunction with communities adjacent
to the airport and is in the process of updating its FAR Part
150 noise mitigation program for submission to and approval by
the Federal Aviation Administration;
new text end

new text begin (3) the legislature also established the governor's Airport
Community Stabilization Funding Task Force that recommended
further mitigation funding to address federal, state, and local
participation in mitigation of noise and other impacts
associated with expansion of the Minneapolis-St. Paul
International Airport at its present location;
new text end

new text begin (4) the task force concluded that:
new text end

new text begin (i) the Metropolitan Airports Commission has committed
significant resources toward mitigating the negative impacts
associated with airport expansion, but the FAR Part 150 noise
mitigation program is insufficient to address all impacts;
new text end

new text begin (ii) the Metropolitan Airports Commission is neither
capable of, nor should it be required to, finance mitigation of
all airport impacts;
new text end

new text begin (iii) the decision to keep and expand the airport at its
current location was a state decision, and as such, the state
should be a financial partner in mitigation projects resulting
from the expansion of the airport; and
new text end

new text begin (iv) no single funding source is adequate for the range and
scope of proposed mitigation activities;
new text end

new text begin (5) the decision to keep and expand the airport at its
current location was intended to benefit the state and the
metropolitan region, but the undue, adverse impact of the
decision is borne by the immediately surrounding communities;
and
new text end

new text begin (6) appropriate measures to mitigate adverse impacts
include, but are not limited to, insulation, redevelopment and
housing replacement activities, and property value assurance;
and expenditures for all such measures are for a public purpose.
new text end

Sec. 2. new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For the purposes of this
act, the terms defined in this section have the meanings given
them.
new text end

new text begin Subd. 2. new text end

new text begin Airport impact zone. new text end

new text begin "Airport impact zone"
means a contiguous or noncontiguous geographic area designated
by a city and approved by the commissioner as part of a
mitigation plan under section 3.
new text end

new text begin Subd. 3. new text end

new text begin Airport sales. new text end

new text begin "Airport sales" means sales that
are taxable under Minnesota Statutes, chapter 297A, and occur on
property owned by the Metropolitan Airports Commission at the
Minneapolis-St. Paul International Airport including, without
limit, parking, vehicle rental, food and beverage, vending,
merchandise, and pay telephones. Airport sales do not include
sales of goods or taxable services purchased by the metropolitan
airports commission or by persons or entities conducting a
private trade or business on property owned by the Metropolitan
Airports Commission at the Minneapolis-St. Paul International
Airport.
new text end

new text begin Subd. 4. new text end

new text begin City. new text end

new text begin "City" means the cities of Bloomington,
Burnsville, Eagan, Mendota Heights, Minneapolis, Richfield, and
St. Paul, or any of them.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of employment and economic development.
new text end

new text begin Subd. 6. new text end

new text begin Council. new text end

new text begin "Council" means the Metropolitan
Council.
new text end

new text begin Subd. 7. new text end

new text begin Department. new text end

new text begin "Department" means the Department
of Employment and Economic Development.
new text end

new text begin Subd. 8. new text end

new text begin Governing body. new text end

new text begin "Governing body" means the city
council of a city.
new text end

new text begin Subd. 9. new text end

new text begin Housing replacement activities. new text end

new text begin "Housing
replacement activities" means rehabilitation, acquisition,
relocation assistance, relocation of existing dwelling units,
and construction of new dwelling units, for the purpose of
replacing dwelling units eliminated by airport mitigation
activities.
new text end

new text begin Subd. 10. new text end

new text begin Impact report. new text end

new text begin "Impact report" means a written
report identifying airport impacts adopted by a city under
section 3.
new text end

new text begin Subd. 11. new text end

new text begin Mitigation fund. new text end

new text begin "Mitigation fund" means the
airport impact mitigation fund established under section 4.
new text end

new text begin Subd. 12. new text end

new text begin Mitigation plan. new text end

new text begin "Mitigation plan" means a
plan for airport impact mitigation developed by a city and
approved by the commissioner under section 3.
new text end

new text begin Subd. 13. new text end

new text begin Obligation. new text end

new text begin "Obligation" has the meaning given
it in Minnesota Statutes, section 475.51, subdivision 3. The
term includes obligations issued to refund prior obligations
issued under this act.
new text end

new text begin Subd. 14. new text end

new text begin School district. new text end

new text begin "School district" means a
school district whose jurisdiction includes all or any portion
of a city.
new text end

Sec. 3. new text begin AIRPORT IMPACT MITIGATION PLANNING.
new text end

new text begin Subdivision 1. new text end

new text begin Impact report. new text end

new text begin A city may study and
identify airport impacts and the scope of those impacts on the
city. At the conclusion of an impact study, a city must adopt a
report of the impacts on the city. In studying airport impacts
and preparing a report, a city must take into account airport
noise impacts and additional environmental, transportation, and
economic impacts associated with expansion of the
Minneapolis-St. Paul International Airport. A city must also
consider and incorporate the overhead noise guidelines
established by the Federal Aviation Administration and
recommendations of the Low Frequency Noise Policy Committee
concerning noise impacts.
new text end

new text begin Subd. 2. new text end

new text begin Mitigation plan. new text end

new text begin (a) After adopting an airport
impact report, a city must develop an airport mitigation plan
for an airport impact zone in the city. In developing the
mitigation plan, a city must seek to determine the most
effective measures for mitigating the impacts identified in the
impact report. A city may consider any measures for mitigating
airport impacts including, but not limited to, noise insulation
of residential and commercial buildings, land use conversion,
development of housing to replace units lost through mitigation
activities, and property value assurance programs. The
mitigation plan must include:
new text end

new text begin (1) designated boundaries of the airport impact zone;
new text end

new text begin (2) a description of recommended impact mitigation
measures;
new text end

new text begin (3) whether the plan provides for conversion of residential
land use or a description of proposed housing replacement
activities;
new text end

new text begin (4) estimates of costs of the recommended mitigation
measures and possible financing sources;
new text end

new text begin (5) an analysis of the feasibility of property tax
abatement under Minnesota Statutes, sections 469.1813 to
469.1815, as a financing source; and
new text end

new text begin (6) the estimated amount of obligations, if any, to be
issued under this act, including a description of the proposed
security for the obligations and whether the city requests
credit enhancement by the council as provided in section 5,
subdivision 2.
new text end

new text begin (b) Before initial approval of a mitigation plan, a city
must conduct a public hearing after publishing at least ten days
before the hearing a notice in a newspaper of general
circulation in the city. The hearing notice must state that the
mitigation plan and the mitigation report are available for
review in the administrative offices of the city. After initial
approval of the mitigation plan by the governing body, the city
must submit the mitigation plan and the mitigation report to the
commissioner for approval and must also submit copies to the
council and the Metropolitan Airports Commission for review and
comment. Not more than 60 days after receipt of the city's
submission, the commissioner must approve, disapprove, or
otherwise comment on the mitigation plan. Failure by the
commissioner to approve or comment within 60 days is considered
approval of the mitigation plan. An action described in a
mitigation plan must not be financed by the mitigation fund or
an airport impact district until the mitigation plan has been
approved by the commissioner and then approved by the governing
body.
new text end

new text begin (c) Before approving any mitigation plan, the commissioner
must establish criteria for evaluating proposed airport impact
zones, airport impact districts, and mitigation measures. The
commissioner must consult with the cities, the council, and the
Metropolitan Airports Commission in developing the criteria.
The commissioner must approve final criteria by December 31,
2005. Any mitigation plan approved under this act must be
consistent with the criteria established under this paragraph.
new text end

new text begin (d) If the mitigation plan, or any amendment under
paragraph (e), clause (3), includes credit enhancement by the
council as provided in section 5, subdivision 2, the mitigation
plan must also be approved by the council before issuance of
bonds secured under section 5, subdivision 2.
new text end

new text begin (e) A mitigation plan may be changed after the notice,
hearing, and approvals required of the original mitigation
plan. A change is permitted only to:
new text end

new text begin (1) increase the total estimated cost of mitigation
activities;
new text end

new text begin (2) increase the total estimated amount of obligations to
be issued;
new text end

new text begin (3) secure any obligations by the pledge described in
section 5, subdivision 2, if the pledge was not included in the
original plan;
new text end

new text begin (4) expand the boundaries of an airport impact zone;
new text end

new text begin (5) create or expand the boundaries of an airport impact
district; or
new text end

new text begin (6) add mitigation activities beyond the scope of
activities described in the original plan.
new text end

new text begin (f) Expenditures to implement a mitigation plan are not
considered a business subsidy under Minnesota Statutes, sections
116J.993 to 116J.995.
new text end

Sec. 4. new text begin AIRPORT IMPACT MITIGATION FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Fund created; sources. new text end

new text begin The airport impact
mitigation fund is established in the state treasury. The
mitigation fund is administered by the commissioner for the
purposes described in this section.
new text end

new text begin Subd. 2. new text end

new text begin Incremental airport sales tax. new text end

new text begin Notwithstanding
anything to the contrary in Minnesota Statutes, section 297A.94,
to the extent revenues in any fiscal year derived from sales
taxes imposed under Minnesota Statutes, chapter 297A, on airport
sales exceed the level of revenue for the fiscal year ending in
2006, the excess revenues up to $3,000,000 are appropriated
annually to the mitigation fund beginning in the fiscal year
ending in 2007 and ending in the fiscal year ending in 2025.
new text end

new text begin Subd. 3. new text end

new text begin Use of revenues. new text end

new text begin Amounts in the mitigation fund
may be spent only for the following purposes:
new text end

new text begin (1) to pay principal of, interest on, and redemption
premium, if any, on obligations issued by a city under this act;
new text end

new text begin (2) to pay or reimburse a city for costs incurred to
implement a mitigation plan, including, without limit, costs of
preparing the impact report and mitigation plan;
new text end

new text begin (3) to pay a school district to mitigate decreases in
student population created by mitigation activities of a city
under the city's mitigation plan; and
new text end

new text begin (4) by the department to pay the costs of administering the
mitigation fund and related activities of the department under
this act.
new text end

new text begin Subd. 4. new text end

new text begin Payment provisions. new text end

new text begin (a) Before disbursing any
amounts from the mitigation fund, the commissioner must
establish criteria for selecting activities identified in
subdivision 3 to be financed from the fund. The commissioner
must consult with the cities, the school districts, the council,
and the metropolitan airports commission in developing the
criteria. The commissioner must approve final criteria by
December 31, 2006. The criteria must identify priorities for
funding, taking into account:
new text end

new text begin (1) the severity of airport impacts among the cities and
school districts;
new text end

new text begin (2) the type of mitigation measures required in order to
address the impacts;
new text end

new text begin (3) the cost of impact mitigation activities identified in
the mitigation plans;
new text end

new text begin (4) the amount of obligations to be issued under this act
as identified in the mitigation plans; and
new text end

new text begin (5) the amount of other revenues available to pay the costs
identified in subdivision 3.
new text end

new text begin (b) The commissioner may establish procedures for
administration of the mitigation fund as necessary, including
without limitation a process for applications, disbursement, and
reporting of expenditures.
new text end

new text begin Subd. 5. new text end

new text begin Termination of mitigation fund. new text end

new text begin The mitigation
fund ends on the earlier of:
new text end

new text begin (1) the date by which all cities and school districts have
notified the commissioner that all costs payable from the
mitigation fund under this act have been paid; or
new text end

new text begin (2) the end of the fiscal year ending in 2030.
new text end

new text begin The balance of amounts in the mitigation fund on its termination
are credited to the state general fund.
new text end

Sec. 5. new text begin BONDS; SECURITY.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin (a) A city may issue obligations
secured by:
new text end

new text begin (1) abatements;
new text end

new text begin (2) amounts disbursed from the airport mitigation fund;
new text end

new text begin (3) any other revenues available to the city under law; or
new text end

new text begin (4) any combination of revenue described in clauses (1) to
(3).
new text end

new text begin (b) The proceeds of obligations must be used to pay or
reimburse any costs to implement a mitigation plan, including,
without limit, costs of preparing the impact report and the
mitigation plan. The governing body may provide by resolution
that the obligations are additionally secured by the full faith
and credit of the city. Notwithstanding any other law or
charter provision, voter approval is not required and net debt
limits do not apply to obligations issued under this section.
new text end

new text begin Subd. 2. new text end

new text begin Metropolitan area credit enhancement
program. new text end

new text begin (a) The council may establish an airport impact
mitigation bond credit enhancement program as provided in this
section. The council may pledge its full faith and credit and
taxing powers to obligations issued under this act if:
new text end

new text begin (1) the city so requests and the commissioner and the
council approves that pledge as part of the city's mitigation
plan; and
new text end

new text begin (2) the council finds that revenues pledged for payment of
the obligations will produce, as estimated at the time of the
pledge, at least 125 percent of the principal and interest due
on the obligations.
new text end

new text begin (b) The pledge must be made by resolution of the council.
Voter approval of obligations secured by the pledge described in
this subdivision is not required and net debt limits do not
apply.
new text end

new text begin (c) Before pledging its full faith and credit, the council
must establish criteria for approving requests for credit
enhancement under this section. The council must establish
criteria in consultation with the cities, the commissioner, and
the Metropolitan Airports Commission. The criteria must set
forth priorities for credit enhancement that are consistent with
the priorities established by the commissioner for disbursement
from the mitigation fund under section 4 and may contain limits
on the total amount of obligations that may be credit enhanced
under this subdivision.
new text end

new text begin (d) If there is a deficiency in revenues pledged to
obligations that are credit enhanced under this subdivision, the
council must levy a tax against all taxable property in the
metropolitan area and advance the proceeds of the levy to the
city for deposit in the debt service fund for the obligations.
The city must reimburse the council for the advance to the
extent the deficient revenues are later collected.
new text end

new text begin (e) Taxes levied by the council because of credit
enhancement under this subdivision do not affect the amount or
rate of taxes that may be levied by the council for other
purposes and are not subject to limit as to rate or amount.
new text end

new text begin (f) The council and each city that participates in the
credit enhancement program may enter into agreements they
determine to be necessary to implement the credit enhancement
program. The agreements may extend over any period,
notwithstanding any law to the contrary.
new text end

Sec. 6. new text begin APPLICATION; EFFECTIVE DATE.
new text end

new text begin This act does not require local approval because Minnesota
Statutes, section 645.023, subdivision 1, paragraph (a), applies.
Section 5 applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington. This act is effective
June 1, 2005.
new text end