HF 4961

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/14/2024 02:35pm

A bill for an act
relating to economic development; modifying the innovative business development
public infrastructure grant program; amending Minnesota Statutes 2022, section
116J.435, subdivisions 3, 4; repealing Minnesota Statutes 2022, section 116J.435,
subdivision 5.

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

Section 1.

Minnesota Statutes 2022, section 116J.435, subdivision 3, is amended to read:

Subd. 3.

Grant program established.

(a) The commissioner shall make competitive
grants to local governmental units to acquire and prepare land on which public infrastructure
required to support an eligible project will be located, including demolition of structures
and remediation of any hazardous conditions on the land, or to predesign, design, acquire,
and to construct, furnish, and equip public infrastructure required to support an eligible
project. The local governmental unit receiving a grant must provide for the remainder of
the public infrastructure costs from other sources. The commissioner may waive the
requirements related to an eligible project under subdivision 2 if a project would be eligible
under this section but for the fact that its location requires infrastructure improvements to
residential development.

(b) The amount of a grant may not exceed the lesser of the cost of the public infrastructure
or 50 percent of the sum of the cost of the public infrastructure plus the cost of the completed
eligible project.

(c) The purpose of the program is to keep or enhance jobs in the area, increase the tax
base, or to expand or create new economic development through the growth of new
innovative businesses and organizations.

Sec. 2.

Minnesota Statutes 2022, section 116J.435, subdivision 4, is amended to read:

Subd. 4.

Application.

(a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a local
governmental unit must include the following information in its application a resolution
certifying that the money required to be supplied by the local governmental unit to complete
the public infrastructure project is available and committed. The commissioner must evaluate
complete applications for eligible projects using the following criteria:

(1) a resolution of its governing body certifying that the money required to be supplied
by the local governmental unit to complete the public infrastructure is available and
committed the project is an eligible project as defined under subdivision 2;

(2) a detailed estimate, along with necessary supporting evidence, of the total development
costs for the public infrastructure and eligible project the project is expected to result in or
will attract substantial public and private capital investment and provide substantial economic
benefit to the county or city in which the project would be located;

(3) an assessment of the potential or likely use of the site for innovative business activities
after completion of the public infrastructure and eligible project the project is not relocating
substantially the same operation from another location in the state, unless the commissioner
determines the project cannot be reasonably accommodated within the county or city in
which the business is currently located, or the business would otherwise relocate to another
state; and

(4) a timeline indicating the major milestones of the public infrastructure and eligible
project and their anticipated completion dates; the project is expected to create or retain
full-time jobs.

(5) a commitment from the governing body to repay the grant if the milestones are not
realized by the completion date identified in clause (4); and

(6) any additional information or material the commissioner prescribes.

(b) The determination of whether to make a grant under subdivision 3 for a site is within
the discretion of the commissioner, subject to this section. The commissioner's decisions
and application of the priorities criteria are not subject to judicial review, except for abuse
of discretion.

Sec. 3. REPEALER.

Minnesota Statutes 2022, section 116J.435, subdivision 5, is repealed.

APPENDIX

Repealed Minnesota Statutes: 24-05423

116J.435 INNOVATIVE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.

Subd. 5.

Priorities.

(a) If applications for grants exceed the available appropriations, grants must be made for public infrastructure that, in the commissioner's judgment, provides the highest return in public benefits for the public costs incurred. "Public benefits" include job creation, environmental benefits to the state and region, efficient use of public transportation, efficient use of existing infrastructure, provision of affordable housing, multiuse development that constitutes community rebuilding rather than single-use development, crime reduction, blight reduction, community stabilization, and property tax base maintenance or improvement. In making this judgment, the commissioner shall give priority to eligible projects with one or more of the following characteristics:

(1) the potential of the local governmental unit to attract viable innovative businesses;

(2) proximity to public transit if located in a metropolitan county, as defined in section 473.121, subdivision 4;

(3) multijurisdictional eligible projects that take into account the need for affordable housing, transportation, and environmental impact;

(4) the eligible project is not relocating substantially the same operation from another location in the state, unless the commissioner determines the eligible project cannot be reasonably accommodated within the local governmental unit in which the business is currently located, or the business would otherwise relocate to another state or country; and

(5) the number of jobs that will be created.

(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the commissioner may weigh each factor, depending upon the facts and circumstances, as the commissioner considers appropriate.