1.1                          A bill for an act 
  1.2             relating to taxation; authorizing creation of housing 
  1.3             replacement tax increment financing projects in the 
  1.4             cities of Mounds View and New Brighton; amending Laws 
  1.5             1995, chapter 264, article 5, section 44, subdivision 
  1.6             4, as amended; Laws 1995, chapter 264, article 5, 
  1.7             section 45, subdivision 1, as amended. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Laws 1995, chapter 264, article 5, section 44, 
  1.10  subdivision 4, as amended by Laws 1996, chapter 471, article 7, 
  1.11  section 21, and Laws 1997, chapter 231, article 10, section 12, 
  1.12  is amended to read: 
  1.13     Subd. 4.  [AUTHORITY.] For housing replacement projects in 
  1.14  the city of Crystal, "authority" means the Crystal economic 
  1.15  development authority.  For housing replacement projects in the 
  1.16  city of Fridley, "authority" means the housing and redevelopment 
  1.17  authority in and for the city of Fridley or a successor in 
  1.18  interest.  For housing replacement projects in the city of 
  1.19  Minneapolis, "authority" means the Minneapolis community 
  1.20  development agency.  For housing replacement projects in the 
  1.21  city of St. Paul, "authority" means the St. Paul housing and 
  1.22  redevelopment authority.  For housing replacement projects in 
  1.23  the city of Duluth, "authority" means the Duluth economic 
  1.24  development authority.  For housing replacement projects in the 
  1.25  city of Richfield, "authority" is the authority as defined in 
  1.26  Minnesota Statutes, section 469.174, subdivision 2, that is 
  2.1   designated by the governing body of the city of Richfield.  For 
  2.2   housing replacement projects in the city of Columbia Heights, 
  2.3   "authority" is the authority as defined in Minnesota Statutes, 
  2.4   section 469.174, subdivision 2, that is designated by the 
  2.5   governing body of the city of Columbia Heights.  For housing 
  2.6   replacement projects in the city of Mounds View, "authority" is 
  2.7   the authority as defined in Minnesota Statutes, section 469.174, 
  2.8   subdivision 2, that is designated by the governing body of the 
  2.9   city of Mounds View.  For housing replacement projects in the 
  2.10  city of New Brighton, "authority" is the authority as defined in 
  2.11  Minnesota Statutes, section 469.174, subdivision 2, that is 
  2.12  designated by the governing body of the city of New Brighton. 
  2.13     <b>[EFFECTIVE DATE.]</b> This section is effective for the city of 
  2.14  Mounds View upon approval by the governing body of the city of 
  2.15  Mounds View and compliance with Minnesota Statutes, section 
  2.16  645.021, subdivision 3.  This section is effective for the city 
  2.17  of New Brighton upon approval by the governing body of the city 
  2.18  of New Brighton and compliance with Minnesota Statutes, section 
  2.19  645.021, subdivision 3. 
  2.20     Sec. 2.  Laws 1995, chapter 264, article 5, section 45, 
  2.21  subdivision 1, as amended by Laws 1996, chapter 471, article 7, 
  2.22  section 22, and Laws 1997, chapter 231, article 10, section 13, 
  2.23  is amended to read: 
  2.24     Subdivision 1.  [CREATION OF PROJECTS.] (a) An authority 
  2.25  may create a housing replacement project under sections 44 to 
  2.26  47, as provided in this section. 
  2.27     (b) For the cities of Crystal, Fridley, Richfield, ~~and~~ 
  2.28  Columbia Heights, Mounds View, and New Brighton, the authority 
  2.29  may designate up to 50 parcels in the city to be included in a 
  2.30  housing replacement district.  No more than ten parcels may be 
  2.31  included in year one of the district, with up to ten additional 
  2.32  parcels added to the district in each of the following nine 
  2.33  years.  For the cities of Minneapolis, St. Paul, and Duluth, 
  2.34  each authority may designate up to 100 parcels in the city to be 
  2.35  included in a housing replacement district over the life of the 
  2.36  district.  The only parcels that may be included in a district 
  3.1   are (1) vacant sites, (2) parcels containing vacant houses, or 
  3.2   (3) parcels containing houses that are structurally substandard, 
  3.3   as defined in Minnesota Statutes, section 469.174, subdivision 
  3.4   10.  
  3.5      (c) The city in which the authority is located must pay at 
  3.6   least 25 percent of the housing replacement project costs from 
  3.7   its general fund, a property tax levy, or other unrestricted 
  3.8   money, not including tax increments. 
  3.9      (d) The housing replacement district plan must have as its 
  3.10  sole object the acquisition of parcels for the purpose of 
  3.11  preparing the site to be sold for market rate housing.  As used 
  3.12  in this section, "market rate housing" means housing that has a 
  3.13  market value that does not exceed 150 percent of the average 
  3.14  market value of single-family housing in that municipality. 
  3.15     <b>[EFFECTIVE DATE.]</b> This section is effective for the city of 
  3.16  Mounds View upon approval by the governing body of the city of 
  3.17  Mounds View and compliance with Minnesota Statutes, section 
  3.18  645.021, subdivision 3.  This section is effective for the city 
  3.19  of New Brighton upon approval by the governing body of the city 
  3.20  of New Brighton and compliance with Minnesota Statutes, section 
  3.21  645.021, subdivision 3.