HF 1290

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public administration; dealing with the 
  1.3             impact of expansion of the Minneapolis-St. Paul 
  1.4             International Airport; authorizing the establishment 
  1.5             of airport impact zones and tax increment financing 
  1.6             districts in the cities of Bloomington, Minneapolis, 
  1.7             and Richfield; creating an airport impact fund in the 
  1.8             state treasury; authorizing certain related activities 
  1.9             by the Metropolitan Council. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [FINDINGS.] The legislature finds that 
  1.12  providing areawide and local financial assistance for the 
  1.13  redevelopment of property in the cities of Bloomington, 
  1.14  Minneapolis, and Richfield adjacent to the Minneapolis-St. Paul 
  1.15  International Airport in order to mitigate the impacts of 
  1.16  airport expansion is a public purpose of state, metropolitan, 
  1.17  and local government in Minnesota. 
  1.18     Sec. 2.  [BLOOMINGTON, MINNEAPOLIS, AND RICHFIELD; AIRPORT 
  1.19  IMPACT ZONES.] 
  1.20     Subdivision 1.  [RESIGNATION; CRITERIA.] (a) Each of the 
  1.21  cities of Bloomington, Minneapolis, and Richfield may designate 
  1.22  one or more airport impact zones within their respective 
  1.23  boundaries.  An airport impact zone is a discrete geographic 
  1.24  area that meets criteria for such a zone established by the 
  1.25  metropolitan council.  The criteria established by the 
  1.26  metropolitan council for airport on impact zone must: 
  1.27     (1) be based upon airport impacts found by the council 
  2.1   after study to be present in the airport tax increment financing 
  2.2   district established in the city of Richfield pursuant to 
  2.3   section 5; and 
  2.4      (2) be such that any area within any of the cities with 
  2.5   airport impacts substantially similar to those described in 
  2.6   clause (1) would qualify for designation as an airport impact 
  2.7   zone. 
  2.8      (b) A city or authority wishing to establish an airport 
  2.9   impact zone must prepare and submit to the metropolitan council 
  2.10  for approval a plan identifying the geographic boundaries of the 
  2.11  proposed zone and the airport mitigation measures to be 
  2.12  undertaken in the zone. 
  2.13     Subd. 2.  [AIRPORT IMPACT TAX INCREMENT DISTRICT.] A city 
  2.14  named in subdivision 1 may establish an airport impact tax 
  2.15  increment district and project subject to section 5 within an 
  2.16  approved airport zone. 
  2.17     (1) the boundaries of the district; 
  2.18     (2) the tax increment financing plan for the district; and 
  2.19     (3) the number of authorized phases of the district 
  2.20  must first be approved by the metropolitan council. 
  2.21     Subd. 3.  [RICHFIELD; SPECIAL RULE.] The city of Richfield 
  2.22  need not designate an airport impact zone for the airport impact 
  2.23  district established under section 5.  
  2.24     Subd. 4.  [OBLIGATIONS; AIRPORT IMPACT DISTRICTS; 
  2.25  BLOOMINGTON, MINNEAPOLIS, AND RICHFIELD.] Each of the cities of 
  2.26  Bloomington, Minneapolis, and Richfield may issue and sell 
  2.27  general obligations under Minnesota Statutes, section 469.178, 
  2.28  and chapter 475 to finance the costs of approved airport 
  2.29  mitigation measures in an approved airport impact tax increment 
  2.30  district and may pledge to the payment of principal of, interest 
  2.31  on, and redemption premium, if any, revenues received by the 
  2.32  airport impact fund established under section 3. 
  2.33     (1) the obligations must mature no later than 35 years from 
  2.34  the date of issue of the original obligations; 
  2.35     (2) each city may issue no more than $30,000,000 aggregate 
  2.36  net principal amount of obligations, after deducting costs of 
  3.1   issuance, discount and capitalized interest, secured by revenues 
  3.2   in the airport impact fund; and 
  3.3      (3) any pledge of revenues from the airport impact fund to 
  3.4   obligations issued by any city under this act is a parity lien 
  3.5   with the pledge of the revenues to obligations issued by any 
  3.6   other city under this act.  
  3.7      Sec. 3.  [AIRPORT IMPACT FUND.] 
  3.8      Subdivision 1.  [FUND CREATED; SOURCES.] The airport impact 
  3.9   fund is established in the state treasury.  Into the airport 
  3.10  impact fund there are to be deposited each year beginning in the 
  3.11  fiscal year ending in 2000 and ending in the fiscal year ending 
  3.12  in 2035, all revenues derived from sales taxes imposed and 
  3.13  collected pursuant to Minnesota Statutes, chapter 297A, upon 
  3.14  sales and uses occurring on property owned by the metropolitan 
  3.15  airports commission at the Minneapolis-St. Paul International 
  3.16  Airport.  The commissioner of revenue must return the receipts 
  3.17  collected to the metropolitan airports commission in the manner 
  3.18  provided for disposition of such receipts in other cases under 
  3.19  Minnesota Statutes, section 297A.44. 
  3.20     Subd. 2.  [USES OF FUND.] (a) Money in the airport impact 
  3.21  fund may be spent only for the following purposes: 
  3.22     (1) to pay principal of, interest on, and redemption 
  3.23  premium, if any, on obligations issued by the city of 
  3.24  Bloomington, the city of Minneapolis, the city of Richfield, or 
  3.25  any of those cities, under section 2; 
  3.26     (2) to pay principal of, interest on, and redemption 
  3.27  premium, if any, on obligations issued by the city of Richfield 
  3.28  under section 6; 
  3.29     (3) to pay the costs of approved airport mitigation 
  3.30  measures conducted by the city of Bloomington, the city of 
  3.31  Minneapolis, the city of Richfield, or any of them. 
  3.32     (b) For purposes of this section, "approved airport 
  3.33  mitigation measures" means those steps taken by a city to 
  3.34  mitigate the impacts of airport expansion that are included in a 
  3.35  metropolitan council plan for airport impact mitigation:  the 
  3.36  term does not include those airport mitigation measures 
  4.1   conducted in an airport impact tax increment financing district 
  4.2   created in the city of Richfield under section 5. 
  4.3      Subd. 3.  [PAYMENTS FROM FUND.] (a) The chief 
  4.4   administrative officer of a city issuing obligations or 
  4.5   conducting approved airport mitigation measures pursuant to this 
  4.6   act must, before June 1 in each year beginning in the year 2000, 
  4.7   certify to the commissioner of revenue: 
  4.8      (1) the aggregate amount of obligations issued by the city 
  4.9   under this act secured in whole or in part with revenues from 
  4.10  the airport impact fund; 
  4.11     (2) the amount of principal of and interest on the 
  4.12  obligations described in clause (1) payable in the next calendar 
  4.13  year; 
  4.14     (3) the amount of net tax increment received by the city or 
  4.15  the authority in the current calendar year, where the term "net 
  4.16  tax increment" means the tax increment attributable to the 
  4.17  district in which the activities financed by the obligations 
  4.18  described in clause (1) are located, less the amount of 
  4.19  principal and interest payable in the next calendar year on 
  4.20  obligations issued by the city under this act and secured in 
  4.21  whole or in part by tax increments from that district but not 
  4.22  secured by revenues from the airport impact fund; 
  4.23     (4) the amount by which the required payments of principal 
  4.24  and interest on the obligations described in clause (1) exceeds 
  4.25  the net tax increment received; and 
  4.26     (5) the amount of expenditures made by the city or the 
  4.27  authority for approved airport mitigation measures in the last 
  4.28  calendar year. 
  4.29     (b) The commissioner must then issue a warrant to the city 
  4.30  in the amounts certified payable to the financial officer of the 
  4.31  city under paragraph (a), clauses (4) and (5), subject to 
  4.32  subdivision 4.  The amounts received by the city representing 
  4.33  principal and interest on obligations must be deposited in the 
  4.34  debt service fund from which the obligations are payable.  The 
  4.35  amount representing the costs of approved airport mitigation 
  4.36  measures may be spent by the city or authority only in accord 
  5.1   with the approved airport mitigation plan. 
  5.2      Subd. 4.  [PRIORITY OF PAYMENTS.] Payments from the airport 
  5.3   impact fund under subdivision 3 are to be made: 
  5.4      (1) first, prorated based upon the aggregate principal of 
  5.5   obligations outstanding to the cities of Bloomington, 
  5.6   Minneapolis, and Richfield for the payment of principal of, 
  5.7   interest on, and redemption premium, if any, on obligations 
  5.8   issued under sections 2 and 6; and 
  5.9      (2) second, prorated based upon the aggregate amount of 
  5.10  mitigation certifications in each fiscal year to the cities of 
  5.11  Bloomington, Minneapolis, and Richfield for the costs of 
  5.12  approved airport mitigation measures. 
  5.13     Subd. 5.  [TERMINATION OF FUND.] (a) The airport impact 
  5.14  fund ends on the latest of: 
  5.15     (1) the date on which all obligations issued by either the 
  5.16  city of Bloomington, the city of Minneapolis, or the city of 
  5.17  Richfield, under section 2 are paid or defeased; 
  5.18     (2) the date on which all obligations of the city of 
  5.19  Richfield issued under section 6 are paid or defeased; or 
  5.20     (3) the date on which all money payable from the airport 
  5.21  impact fund for approved airport mitigation measures are paid. 
  5.22     (b) When the airport impact fund is ended, the balance must 
  5.23  be deposited in the general fund. 
  5.24     Subd. 6.  [TERMINATION; INACTION.] If by January 1, 2006, 
  5.25     (1) no obligations are issued by the cities of Bloomington, 
  5.26  Minneapolis, or Richfield; or 
  5.27     (2) no approved airport mitigation measures undertaken by 
  5.28  any of those cities under this act, 
  5.29  the airport impact fund is ended and the balance in the fund 
  5.30  must be deposited in the general fund. 
  5.31     Subd. 7.  [INTEREST EARNINGS ON AIRPORT IMPACT FUND.] The 
  5.32  investment earnings of money in the airport impact fund must be 
  5.33  deposited as received in the general fund of the state. 
  5.34     Sec. 4.  [METROPOLITAN COUNCIL PLEDGE.] The governing body 
  5.35  of the metropolitan council may by resolution pledge the full 
  5.36  faith and credit and taxing power of the metropolitan council to 
  6.1   pay principal of and interest on general obligations issued by 
  6.2   the city of Bloomington, the city of Minneapolis, or the city of 
  6.3   Richfield or their respective authorities under Minnesota 
  6.4   Statutes, section 469.178, and this act secured in whole or in 
  6.5   part by tax increment from the district.  The pledge must be 
  6.6   made in accordance with chapter 475, but no election is required 
  6.7   and net debt limits do not apply.  Taxes levied by the 
  6.8   metropolitan council by reason of the pledge: 
  6.9      (1) do not affect the amount or rate of taxes that may be 
  6.10  levied by council for other purposes; 
  6.11     (2) must be spread against all taxable property in the 
  6.12  metropolitan areas; and 
  6.13     (3) are not subject to limit as to rate or amount. 
  6.14     Sec. 5.  [AUTHORIZATION; CITY OF RICHFIELD.] 
  6.15     Subdivision 1.  [AIRPORT IMPACT TAX INCREMENT FINANCING 
  6.16  DISTRICT.] The city of Richfield may establish an airport impact 
  6.17  tax increment financing district consisting of the real property 
  6.18  described as follows: 
  6.19     Commencing at the intersection of the north city limits 
  6.20     with the w'ly ROW line of T.H. 77, thence south along the 
  6.21     w'ly ROW line of T.H. 77 to the n'ly ROW line of Interstate 
  6.22     Highway 494, thence west along the n'ly ROW line of 
  6.23     Interstate Highway 494 to the center line of Bloomington 
  6.24     Avenue, thence north on the center line of Bloomington 
  6.25     Avenue to the n'ly ROW line of E. 77th St., thence east 
  6.26     along the n'ly ROW line of E. 77th St. to a point 133.2' 
  6.27     east of the e'ly ROW line of Bloomington Avenue, thence 
  6.28     north on a line parallel with and 133.2' east of the e'ly 
  6.29     ROW line of Bloomington Avenue to the north city limits, 
  6.30     thence east along the north city limits to the point of 
  6.31     beginning. 
  6.32     The city or its housing and redevelopment authority may be 
  6.33  the "authority" under Minnesota Statutes, sections 469.174 to 
  6.34  469.179. 
  6.35     Subd. 2.  [SPECIAL RULES.] (a) A district established under 
  6.36  subdivision 1 is considered a redevelopment district and project 
  7.1   and is subject to Minnesota Statutes, sections 469.174 to 
  7.2   469.179, except as otherwise provided in this subdivision. 
  7.3      (1) For the purposes of Minnesota Statutes, section 
  7.4   469.1763, subdivision 2, the "in-district percentage" is 100 
  7.5   percent, except to the extent otherwise provided in clause (4).  
  7.6   Minnesota Statutes, section 469.1763, subdivision 3, does not 
  7.7   apply to the district. 
  7.8      (2) The tax increment financing plan for the district may 
  7.9   identify up to six phases, each consisting of a contiguous or 
  7.10  noncontiguous geographic area within the district.  Tax 
  7.11  increment must not be paid to the authority from any phase after 
  7.12  25 years from date of receipt by the authority of the first tax 
  7.13  increment from that phase. 
  7.14     (3) Minnesota Statutes, sections 469.176, subdivision 4j, 
  7.15  and 469.177, subdivision 1a, do not apply to the district. 
  7.16     (4) Minnesota Statutes, section 273.1399 does not apply to 
  7.17  the district if either: 
  7.18     (i) the authority elects the exemption under Minnesota 
  7.19  Statutes, section 273.1399, subdivision 6, paragraph (d); or 
  7.20     (ii) at least 15 percent of the revenue generated from tax 
  7.21  increment from the district in any year is deposited in the 
  7.22  housing replacement account of the authority and spent according 
  7.23  to the tax increment financing plan. 
  7.24     (b) The authority must identify in the tax increment 
  7.25  financing plan the housing replacement activities to be assisted 
  7.26  by the housing replacement account. 
  7.27     (c) Housing replacement activities may include 
  7.28  rehabilitation, acquisition, demolition, relocation assistance, 
  7.29  and financing of new or existing single-family or multifamily 
  7.30  housing that replaces housing units eliminated by redevelopment 
  7.31  within the district. 
  7.32     (d) Housing replacement activities listed in the plan need 
  7.33  not be located with the district or project area. 
  7.34     (e) For the purposes of chapters 124 and 124A, the total 
  7.35  pupil units attributable to students whose principal residence 
  7.36  is within the tax increment financing district in any fiscal 
  8.1   year is the greater of: 
  8.2      (1) the actual number of those pupil units in that fiscal 
  8.3   year; or 
  8.4      (2) the actual number of those pupil units in the fiscal 
  8.5   year ending in 1999. 
  8.6      Sec. 6.  [CITY OF RICHFIELD; BONDS; SECURITY.] 
  8.7      Subdivision 1.  [GENERAL OBLIGATION BONDS.] The city of 
  8.8   Richfield may issue and sell its general obligations under 
  8.9   Minnesota Statutes, section 469.178, and chapter 475 to finance 
  8.10  the costs of land and structure acquisition, demolition, 
  8.11  relocation and site clearance, and improvement within the 
  8.12  airport impact tax increment district established under section 
  8.13  5. 
  8.14     Subd. 2.  [AIRPORT IMPACT FUND REVENUES.] The city of 
  8.15  Richfield may pledge to the payment of obligations issued under 
  8.16  this section the revenues to be received and funds in the 
  8.17  airport impact fund, subject to the limits set forth in section 
  8.18  2.  
  8.19     Sec. 7.  [OBLIGATION DEFINED.] 
  8.20     In this act, "obligation" has the meaning given it in 
  8.21  Minnesota Statutes, section 475.51, subdivision 3.  The term 
  8.22  includes obligations issued to refund prior obligations issued 
  8.23  under this act. 
  8.24     Sec. 8.  [EFFECTIVE DATE.] 
  8.25     This act is effective as to any of the cities of 
  8.26  Bloomington, Minneapolis, and Richfield upon approval by the 
  8.27  governing body of the respective city and compliance by its 
  8.28  chief clerical officer with Minnesota Statutes, section 645.021, 
  8.29  subdivision 3; and with regard to section 2, subdivision 2, and 
  8.30  section 5, upon similar compliance with Minnesota Statutes, 
  8.31  section 469.1782, subdivision 2.