HF 2237

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing a sales tax exemption for construction materials
and equipment used to construct improvements in a tax increment financing
district in the city of Bloomington; extending the duration of a tax increment
financing district in the city of Bloomington and modifying its boundaries;
providing for the issuance of certain state obligations; appropriating money;
amending Minnesota Statutes 2006, section 297A.71, by adding a subdivision;
Laws 1996, chapter 464, article 1, section 8, subdivision 3.

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

Section 1.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:

new text begin Subd. 40. new text end

new text begin Retail facility and related improvement expansion. new text end

new text begin Building materials
and supplies used or consumed in, and equipment incorporated into, the construction or
improvement of a retail facility and related improvements within Tax Increment District
No. 1-G in the city of Bloomington are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales after June 30, 2007, and
before July 1, 2011.
new text end

Sec. 2.

Laws 1996, chapter 464, article 1, section 8, subdivision 3, is amended to read:

Subd. 3.

Special rules.

(a) Tax increment may not be captured by the port authority
from the tax increment financing district on the met center property after December 31 of
the year in which tax increments, assessments, and other revenues from the district and
the accumulated increments from the district consisting of the Kelly property exceed
the permitted expenditures under paragraph (d). The provisions of this paragraph apply
beginning with the first calendar year after the conditions precedent in subdivision 2
are satisfied and construction has begun on improvements on the met center site. No
increments may, in any event, be collected from the tax increment financing district on the
met center site after December 31, deleted text begin 2018 deleted text end new text begin 2025 new text end .

(b) The provisions of Minnesota Statutes, section 273.1399, do not apply to the tax
increment financing district on the met center property.

(c) The governing body of the city of Bloomington must elect the method of
computation of tax increment specified in Minnesota Statutes, section 469.177, subdivision
3, paragraph (b), in the tax increment financing district on the met center property.

(d) Tax increments, assessments, and other revenues derived from the tax increment
district on the met center property and any accumulated tax increments from the tax
increment financing district on the Kelly property may be used to finance only the
following:

(1) amounts that the city or port authority must pay to reimburse or otherwise
pay the developer for public improvements because of counted value resulting from
investment in property at the met center site under section 9.2(05) of the restated contract
for purchase and private redevelopment of land, by and among the city of Bloomington,
the port authority of the city of Bloomington, and the Mall of America Company, dated
May 31, 1988;

(2) interest and other financing costs the city or port authority pays or incurs on, but
that are not included in, the amounts under clause (1);

(3) interest and principal on qualified bonds to the extent that other available
revenues and increments from other sources that are pledged to pay the bonds are
insufficient. In determining whether other available revenues or increments are
insufficient, spending of these revenues for only the following items reduce available
revenues (all other revenues are deemed to be available):

(A) payment of debt service on bonds and obligations issued and sold before March
31, 1996;

(B) payments under binding written contracts in effect on March 31, 1996, to which
the increments or other revenues are pledged; and

(C) reasonable administrative expenses, subject to the limits under Minnesota
Statutes, section 469.176, subdivision 3; and

(4) reasonable administrative expenses as provided under Minnesota Statutes,
sections 469.174 to 469.178. The amounts permitted under clauses (1) and (2) must be
used to determine the limit or administrative expenses under Minnesota Statutes, section
469.176, subdivision 3.

For the purposes of paragraph (d), "qualified bonds" means:

(i) bonds or other obligations issued and sold before March 31, 1996, to which
increments from the tax increment financing district consisting of the Kelly property are
pledged; and

(ii) bonds or other obligations that refund bonds described in (i), if the refunding
bonds do not increase the present value of the debt service payments secured by the
increments and are secured by a pledge of the same increments and other revenues as
secured by the bonds to be refunded.

For purposes of determining the qualifying ratio percent for counted value under
the formula in section 9.2(05) of the restated contract under clause (1), investment in
property at the met center site is deemed to be after or in addition to all the investment at
other sites covered by the restated contract.

Sec. 3. new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING
DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Addition of parcels to Tax Increment District No. 1-G.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.175, subdivision 4,
or any other law to the contrary, the governing bodies of the Port Authority of the city
of Bloomington and the city of Bloomington may elect to eliminate certain real property
from Tax Increment District No. 1-C within Industrial Development District No. 1 Airport
South in the city of Bloomington, Minnesota, and expand the boundaries of Tax Increment
District No. 1-G to include real property, which is described as follows:
new text end

new text begin (1) PARCEL A: Outlot A, MALL OF AMERICA 5TH ADDITION, according to
the recorded plat thereof, Hennepin County, Minnesota;
new text end

new text begin (2) PARCEL B: Lots 1 and 2, Block 1, MALL OF AMERICA 6TH ADDITION,
according to the record plat thereof, Hennepin County, Minnesota;
new text end

new text begin (3) PARCEL C: That part of Lindau Lane lying westerly of 24th Avenue South and
lying easterly of State Highway No. 77;
new text end

new text begin (4) PARCEL D: Those parts of Lots 1, 2, and 3, Block 1, MALL OF AMERICA
3RD ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota,
which lie northerly of a line described as commencing at the most westerly northwest
corner of said Lot 1; thence on an assumed bearing of South 4 degrees 10 minutes 55
seconds West, along the west line of said Lot 1, a distance of 58.60 feet to the point of
beginning of the line to be described; thence South 89 degrees 59 minutes 29 seconds East
a distance of 205.48 feet; thence South 62 degrees 16 minutes 23 seconds East a distance
of 169.47 feet; thence North 445 degrees 01 minute 28 seconds East a distance of 249.76
feet; thence South 89 degrees 59 minutes 39 seconds East a distance of 88.47 feet; thence
South 45 degrees 09 minutes 10 seconds East a distance of 225.13 feet; thence South 89
degrees 59 minutes 52 seconds East a distance of 303.62 feet; thence South 0 degrees 00
minutes 08 seconds West a distance of 10.00 feet; thence North 89 degrees 57 minutes
47 seconds East a distance of 55.90 feet; thence North 0 degrees 06 minutes 52 seconds
West a distance of 10.01 feet; thence North 89 degrees 59 minutes 04 seconds East a
distance of 332.04 feet; thence North 44 degrees 57 minutes 59 seconds East a distance of
251.28 feet; thence South 45 degrees 05 minutes 41 seconds East a distance of 267.55
feet; thence North 73 degrees 11 minutes 28 seconds East a distance of 145.63 feet; thence
South 89 degrees 59 minutes 38 seconds East a distance of 217.21 feet to the east line of
said Lot 1 and said line there terminating;
new text end

new text begin (5) PARCEL E: That part of Lot 1, Block 1, MALL OF AMERICA 3RD
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota,
described as commencing at the most southerly southwest corner of said Lot 1; thence
on an assumed bearing of South 88 degrees 03 minutes 50 seconds East, along the south
line of said Lot 1, a distance of 847.28 feet to the point of beginning of the parcel to be
described; thence North 0 degrees 01 minutes 05 seconds West a distance of 307.69 feet;
thence North 89 degrees 59 minutes 32 seconds East a distance of 163.77 feet; thence
North 0 degrees 00 minutes 36 seconds East a distance of 10.17 feet; thence South 89
degrees 59 minutes 24 seconds East a distance 55.93 feet; thence South 0 degrees 02
minutes 42 seconds West a distance of 10.21 feet; thence South 89 degrees 59 minutes 24
seconds East a distance of 242.25 feet; thence South 0 degrees 00 minutes 36 seconds
West a distance of 54.87 feet; thence South 62 degrees 14 minutes 23 seconds East a
distance of 22.55 feet; thence South 45 degrees 05 minutes 26 seconds East a distance
of 263.33 feet; thence South 0 degrees 12 minutes 39 seconds East a distance of 62.13
feet to said south line of Lot 1; thence westerly along said south line of Lot 1, a distance
of 668.64 feet to the point of beginning;
new text end

new text begin (6) PARCEL F: That part of Lot 1, Block 1, MALL OF AMERICA 3RD
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota,
described as beginning at the most westerly southwest corner of said Lot 1; thence on an
assumed bearing of North 4 degrees 10 minutes 55 seconds East, along the west line of
said Lot 1, a distance of 490.00 feet; thence South 89 degrees 59 minutes 26 seconds East
a distance of 69.49 feet; thence South 0 degrees 00 minutes 34 seconds West a distance of
488.70 feet; thence North 89 degrees 59 minutes 26 seconds West a distance of 105.14
feet to the point of beginning;
new text end

new text begin (7) PARCEL G: That part of Lot 1, Block 1, MALL OF AMERICA 3RD
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota,
described as commencing at the most westerly southwest corner of said Lot 1; thence on
an assumed bearing of North 4 degrees 10 minutes 55 seconds East, along the west line
of said Lot 1, a distance of 873.70 feet; thence South 89 degrees 58 minutes 59 seconds
East a distance of 273.87 feet to the point of beginning of the parcel to be described;
thence continuing South 89 degrees 58 minutes 59 seconds East a distance of 130.00 feet;
thence South 0 degrees 01 minute 01 second West a distance of 216.53 feet; thence South
85 degrees 23 minutes 04 seconds East a distance of 1.70 feet; thence South 0 degrees
01 minute 01 second West a distance of 87.63 feet; thence South 83 degrees 20 minutes
10 seconds West a distance of 1.68 feet; thence South 0 degrees 01 minute 49 seconds
East a distance of 216.46 feet; thence North 89 degrees 58 minutes 59 seconds West a
distance of 130.21 feet; thence North 0 degrees 01 minute 01 second East a distance of
520.95 feet to the point of beginning, which lies above an elevation of 894.2 feet, Mean
Sea Level Datum NGVD 1929 adjustment;
new text end

new text begin (8) PARCEL H: That part of Lot 1, Block 1, MALL OF AMERICA 3RD
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota,
described as commencing at the most westerly southwest corner of said Lot 1; thence on
an assumed bearing of North 4 degrees 10 minutes 55 seconds East, along the west line of
said Lot 1, a distance of 873.70 feet; thence South 89 degrees 58 minutes 59 seconds East a
distance of 403.87 feet; thence North 89 degrees 56 minutes 58 seconds East a distance of
61.26 feet to the point of beginning of the parcel to be described; thence South 89 degrees
56 minutes 58 seconds West a distance of 61.26 feet; thence South 0 degrees 01 minute 01
second West a distance of 216.53 feet; thence South 85 degrees 23 minutes 04 seconds
East a distance of 1.70 feet; thence South 0 degrees 01 minute 01 second West a distance
of 87.63 feet; thence South 83 degrees 20 minutes 10 seconds West a distance of 1.68 feet;
thence South 0 degrees 01 minute 49 seconds East a distance of 216.46 feet; thence North
89 degrees 56 minutes 58 seconds East a distance of 61.15 feet to a line bearing South 0
degrees 00 minutes 24 seconds West from the point of beginning; thence North 0 degrees
00 minutes 24 seconds East a distance of 520.95 feet to the point of beginning;
new text end

new text begin (9) PARCEL I: That part of Lot 1, Block 1, MALL OF AMERICA 3RD ADDITION,
according to the recorded plat thereof, Hennepin County, Minnesota, described as
commencing at the most westerly southwest corner of said Lot 1; thence on an assumed
bearing of North 4 degrees 10 minutes 55 seconds East, along the west line of said Lot 1, a
distance of 873.70 feet; thence South 89 degrees 58 minutes 59 seconds East a distance
of 403.87 feet; thence North 89 degrees 56 minutes 58 seconds East a distance of 61.26
feet; thence South 0 degrees 00 minutes 24 seconds West a distance of 5.54 feet to the
point of beginning of the parcel to be described; thence continuing South 0 degrees 00
minutes 24 seconds West a distance of 300.00 feet; thence South 89 degrees 59 minutes 36
seconds East a distance of 123.79 feet; thence North 0 degrees 00 minutes 24 seconds East
a distance of 299.98 feet; thence North 89 degrees 58 minutes 55 seconds West a distance
of 123.79 feet to the point of beginning, which lies above an elevation of 877.6 feet, Mean
Sea Level Datum NGVD 1929 adjustment;
new text end

new text begin (10) PARCEL J: That part of Lot 4, Block 1, MALL OF AMERICA 3RD
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota, which
lies above an elevation of 878.0 feet, Mean Sea Level Datum NGVD 1929 adjustment; and
new text end

new text begin (11) PARCEL K: That part of Lot 1, Block 1, MALL OF AMERICA 3RD
ADDITION, according to the recorded plat thereof, Hennepin County, Minnesota,
described as beginning at the most southerly southeast corner of said Lot 1; thence on an
assumed bearing of North 86 degrees 49 minutes 30 seconds West, along the south line of
said Lot 1, a distance of 117.87 feet; thence North 0 degrees 01 minute 27 seconds East a
distance of 293.98 feet; thence North 89 degrees 59 minutes 41 seconds East a distance of
213.38 feet to the east line of said Lot 1; thence southerly and westerly along said east and
south lines of Lot 1, a distance of 357.03 feet to the point of beginning.
new text end

new text begin Subd. 2. new text end

new text begin Original tax capacity of Tax Increment District No. 1-G. new text end

new text begin Upon inclusion
of the real property described above in the Tax Increment District No. 1-G, the Hennepin
County auditor must increase the original tax capacity of Tax Increment No. 1-G by $........
new text end

new text begin Subd. 3. new text end

new text begin Use of increments. new text end

new text begin All tax increments from Tax Increment District No.
1-G must be used for infrastructure costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance with Minnesota
Statutes, section 645.021, subdivision 3.
new text end

Sec. 4. new text begin MALL OF AMERICA PHASE II PARKING FACILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $181,000,000 is appropriated from the bond
proceeds fund to the commissioner of employment and economic development for a grant
to the city of Bloomington to predesign, design, construct, furnish, and equip a parking
facility for the Mall of America Phase II.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of finance shall sell and issue bonds of the state
in an amount up to $181,000,000 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