HF 1175

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 03/12/2015 03:44pm

A bill for an act
relating to economic development; modifying loans and grants for brownfields
remediation; appropriating money; amending Minnesota Statutes 2014, sections
116J.551, subdivision 1; 116J.552, subdivision 1; 116J.554, subdivision
1; 116J.556; 116J.557, subdivisions 1, 2; 116J.558; 116J.571; 116J.5763,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1.

Minnesota Statutes 2014, section 116J.551, subdivision 1, is amended to read:

Subdivision 1.

Grant account.

A contaminated site cleanup and development
grant account is created in the special revenue fund, general fund, petroleum tank fund,
and remediation fund. Money in any account may be used, as appropriated by law, to
make grants as provided in deleted text begin section deleted text end new text begin sections new text end 116J.554 new text begin and 116J.560, new text end and to pay for the
commissioner's costs in reviewing applications and making grants. Notwithstanding
section 16A.28, money appropriated to the accounts for this program from any source
is available until spent.

Sec. 2.

Minnesota Statutes 2014, section 116J.552, subdivision 1, is amended to read:

Subdivision 1.

Scope of application.

For purposes of sections 116J.551 to 116J.557 new text begin
and 116J.560 new text end , the following terms have the meanings given.

Sec. 3.

Minnesota Statutes 2014, section 116J.554, subdivision 1, is amended to read:

Subdivision 1.

Authority.

(a) The commissioner may make a grant to an applicant
development authority to pay for up to 75 percent of the project costs for a qualifying site.

(b) The commissioner may also make a grant to an applicant development authority
to pay up to 75 percent or $50,000, whichever is less, toward the cost of performing
contaminant investigations and the development of a response action plan for a qualifying
site.

(c) The commissioner may also make a grant to an applicant to fill a site that would
represent more than 50 percent of the remaining land in a city suitable for industrial
development if it were properly filled.

(d) The determination of whether to make a grant for a qualifying site is within the
sole discretion of the commissioner, subject to the process provided by this section, and
available unencumbered money in the appropriation. The commissioner's decisions and
application of the priorities under deleted text begin section deleted text end new text begin sections new text end 116J.555 new text begin and 116J.560 new text end are not subject
to judicial review, except for abuse of discretion.

(e) The total amount of money provided in grants under paragraph (b) may not
exceed $500,000 per fiscal year.

(f) In making grants under paragraph (b), the commissioner shall give priority to
applicants that have not received a grant under paragraph (a) or section 473.252 during
the year ending on the date of application.

Sec. 4.

Minnesota Statutes 2014, section 116J.556, is amended to read:

116J.556 LOCAL MATCH REQUIREMENT.

In order to qualify for a grant under sections 116J.551 to 116J.557 new text begin and 116J.560 new text end , the
municipality must pay for at least one-quarter of the project costs as a local match. The
municipality shall pay an amount of the project costs equal to at least 12 percent of the
cleanup costs from the municipality's general fund, a property tax levy for that purpose, or
other unrestricted money available to the municipality (excluding tax increments). These
unrestricted moneys may be spent for project costs, other than cleanup costs, and qualify
for the local match payment equal to 12 percent of cleanup costs. The rest of the local
match may be paid with tax increments, regional, state, or federal money available for the
redevelopment of brownfields or any other money available to the municipality.

Sec. 5.

Minnesota Statutes 2014, section 116J.557, subdivision 1, is amended to read:

Subdivision 1.

Cause of action.

The attorney general or a development authority
or municipality that incurs cleanup costs to implement an approved response action plan
pursuant to sections 116J.551 to 116J.557 deleted text begin , deleted text end new text begin and 116J.560 new text end may bring an action under section
115B.04 or other law to recover the reasonable and necessary cleanup costs incurred by
the development authority or municipality. The attorney general, development authority,
or municipality may recover all cleanup costs incurred whether paid from the proceeds of
a grant under sections 116J.551 to 116J.557 new text begin and 116J.560 new text end or funds of the development
authority or municipality. Recoverable costs include administrative and legal costs related
to the development and implementation of the response action plan but do not include any
cost associated with development or redevelopment of property. A development authority
or municipality must have the consent of the attorney general to bring or settle an action
under this subdivision to recover cleanup costs paid from the proceeds of a grant.

Sec. 6.

Minnesota Statutes 2014, section 116J.557, subdivision 2, is amended to read:

Subd. 2.

Procedures.

The commissioner shall notify the attorney general when a
grant is awarded under sections 116J.551 to 116J.557 new text begin and 116J.560 new text end . Upon request of
the attorney general the development authority shall prepare and submit a certification
of the cleanup costs and shall cooperate in any cost recovery action brought by the
attorney general under subdivision 1. Certification by the development authority of the
cleanup costs incurred to develop and implement the approved response action plan is
prima facie evidence that the costs are reasonable and necessary in any action brought
under this section.

Sec. 7.

Minnesota Statutes 2014, section 116J.558, is amended to read:

116J.558 EFFECT OF ISSUANCE OF GRANTS.

The issuance of a contamination cleanup grant under sections 116J.551 to 116J.557 new text begin
and 116J.560 new text end has no effect on the responsibility or the liability of the state, under chapter
115B or any other law, in relation to the contamination at a site or sites for which the
grant is issued. The issuance of a grant neither implies any state responsibility for the
contamination nor imposes any obligation on the state to participate in the cleanup of the
contamination or in the cleanup costs beyond the amount of the grant.

Sec. 8.

new text begin [116J.560] BROWNFIELDS REVITALIZATION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Grant awards. new text end

new text begin Notwithstanding section 116J.554, subdivision
2, clause (2), the commissioner may award grants to development authorities for the
cost of implementing an approved response action plan as defined in section 116J.552,
subdivision 8, without regard to whether development is expected or planned for the site
at the time the grant application is made.
new text end

new text begin Subd. 2. new text end

new text begin Priorities. new text end

new text begin In considering applications and awarding grants under
subdivision 1, the commissioner shall utilize the priorities under section 116J.555,
subdivision 1, paragraph (b), clauses (1), (3), (5), and (6).
new text end

Sec. 9.

Minnesota Statutes 2014, section 116J.571, is amended to read:

116J.571 CREATION OF ACCOUNTS.

Two redevelopment accounts are created, one in the general fund and one in the
bond proceeds fund. Money for the program: (1) may be used to make grants as provided
in deleted text begin section deleted text end new text begin sections 116J.560 and new text end 116J.575 and loans as provided in section 116J.5761; (2)
may be used to pay for the commissioner's costs in reviewing applications and making
grants and loans; and (3) is available until spent. The repayment of principal and interest
on loans and investment income earned on money in the account is deposited in the special
revenue fund and may be used for making grants and loans and for administrative costs
and are appropriated for such purposes.

Sec. 10.

Minnesota Statutes 2014, section 116J.5763, subdivision 1, is amended to read:

Subdivision 1.

Priorities.

(a) If applications for loans exceed the available
appropriations, loans shall be made for projects that, in the commissioner's judgment,
provide the highest return in public benefits for the public costs incurred. "Public benefits"
include health, safety and other environmental benefits, blight reduction including
the property's potential for improved economic vitality, functionality and aesthetics,
community stabilization, crime reduction, reduced maintenance costs, and the potential
for future development. In making this judgment, the commissioner shall consider the
following:

(1) the extent to which the existing property conditions threaten public safety;

(2) the length of vacancy of the property;

(3) the development potential of the property;

(4) the proximity of the property to existing sufficient public infrastructure; and

(5) the applicant's financial condition and ability to repay the loan.

(b) The factors in paragraph (a) are not listed in a rank order or 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
that affect the net return of public benefits.

new text begin (c) Priority must be given to applications for projects that have received a grant
under section 116J.560.
new text end

Sec. 11. new text begin BROWNFIELDS REVITALIZATION GRANTS; APPROPRIATION.
new text end

new text begin $6,000,000 in fiscal year 2016 and $6,000,000 in fiscal year 2017 are appropriated
from the general fund to the commissioner of employment and economic development
for grants under Minnesota Statutes, section 116J.560, for brownfields revitalization. Of
this amount, $3,000,000 each year is reserved for projects in greater Minnesota. Any
funds reserved for projects in greater Minnesota that are not awarded by September 1 of
each year are available for projects within the metropolitan area as defined in Minnesota
Statutes, section 473.121, subdivision 2. For the purposes of this section, "greater
Minnesota" means the area of the state that excludes the metropolitan area as defined in
Minnesota Statutes, section 473.121, subdivision 2. Funds appropriated under this section
may be expended in either year of the biennium and are available until June 30, 2019.
new text end