1.1                          A bill for an act 
  1.2             relating to metropolitan government; providing for 
  1.3             local zoning conformity in certain cases; modifying a 
  1.4             certain levy limitation for the metropolitan council; 
  1.5             allowing for distribution of funds from the tax base 
  1.6             revitalization account to development authorities; 
  1.7             providing for distribution of funds from the livable 
  1.8             communities demonstration account; authorizing the 
  1.9             metropolitan council to issue bonds and to transfer 
  1.10            proceeds of certain bonds; requiring a transfer 
  1.11            between certain accounts of the council; providing for 
  1.12            metropolitan transportation investments; providing for 
  1.13            a joint powers board for certain public housing 
  1.14            purposes; providing for metropolitan airport matters; 
  1.15            providing for airport noise impact relief; amending 
  1.16            Minnesota Statutes 1994, sections 471.59, by adding a 
  1.17            subdivision; 473.155, by adding a subdivision; 
  1.18            473.167, subdivision 2a; 473.388, by adding a 
  1.19            subdivision; 473.608, subdivisions 2, 6, 16, and by 
  1.20            adding subdivisions; 473.614, by adding a subdivision; 
  1.21            473.621, by adding a subdivision; and 473.661, 
  1.22            subdivision 4; Minnesota Statutes 1995 Supplement, 
  1.23            sections 473.167, subdivisions 2 and 3; 473.252; 
  1.24            473.391; and 473.704, subdivision 18; Laws 1989, 
  1.25            chapter 279, section 7, subdivision 6; Laws 1995, 
  1.26            chapter 255, article 3, section 2, subdivisions 1 and 
  1.27            4; and Laws 1995, chapter 265, article 1, section 4; 
  1.28            proposing coding for new law in Minnesota Statutes, 
  1.29            chapter 473; repealing Minnesota Statutes 1994, 
  1.30            sections 473.1551, subdivision 2; 473.167, subdivision 
  1.31            5; 473.636; and 473.637; Minnesota Statutes 1995 
  1.32            Supplement, section 473.167, subdivision 3a. 
  1.33  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.34                             ARTICLE 1
  1.35                 METROPOLITAN COUNCIL AUTHORIZATION
  1.36     Section 1.  Minnesota Statutes 1994, section 471.59, is 
  1.37  amended by adding a subdivision to read: 
  1.38     Subd. 13.  [JOINT POWERS BOARD FOR HOUSING.] (a) For 
  1.39  purposes of implementing a federal court order or decree, two or 
  2.1   more housing and redevelopment authorities, or public entities 
  2.2   exercising the public housing powers of housing and 
  2.3   redevelopment authorities, may by adoption of a joint powers 
  2.4   agreement that complies with the provisions of subdivisions 1 to 
  2.5   5, establish a joint board for the purpose of acquiring an 
  2.6   interest in, rehabilitating, constructing, owning, or managing 
  2.7   low-rent public housing located in the metropolitan area, as 
  2.8   defined in section 473.121, subdivision 2, and financed, in 
  2.9   whole or in part, with federal financial assistance under 
  2.10  Section 5 of the United States Housing Act of 1937.  The joint 
  2.11  board established pursuant to this subdivision shall: 
  2.12     (1) be composed of members designated by the governing 
  2.13  bodies of the governmental units which established such joint 
  2.14  board, and possess such representative and voting power provided 
  2.15  by the joint powers agreement; 
  2.16     (2) constitute a public body, corporate, and politic; and 
  2.17     (3) notwithstanding the provisions of subdivision 1, 
  2.18  requiring commonality of powers between parties to a joint 
  2.19  powers agreement, and solely for the purpose of acquiring an 
  2.20  interest in, rehabilitating, constructing, owning, or managing 
  2.21  federally financed low-rent public housing, shall possess all of 
  2.22  the powers and duties contained in sections 469.001 to 469.047 
  2.23  and, if at least one participant is an economic development 
  2.24  authority, sections 469.090 to 469.1081, except (i) as may be 
  2.25  otherwise limited by the terms of the joint powers agreement; 
  2.26  and (ii) a joint board shall not have the power to tax pursuant 
  2.27  to section 469.033, subdivision 6, or 469.107, nor shall it 
  2.28  exercise the power of eminent domain.  Every joint powers 
  2.29  agreement establishing a joint board shall specifically provide 
  2.30  which and under what circumstances the powers granted herein may 
  2.31  be exercised by that joint board. 
  2.32     (b) If a housing and redevelopment authority exists in a 
  2.33  city which intends to participate in the creation of a joint 
  2.34  board pursuant to paragraph (a), such housing and redevelopment 
  2.35  authority shall be the governmental unit which enters into the 
  2.36  joint powers agreement unless it determines not to do so, in 
  3.1   which event the governmental entity which enters into the joint 
  3.2   powers agreement may be any public entity of that city which 
  3.3   exercises the low-rent public housing powers of a housing and 
  3.4   redevelopment authority.  
  3.5      (c) A joint board shall not make any contract with the 
  3.6   federal government for low-rent public housing, unless the 
  3.7   governing body or bodies creating the participating authority in 
  3.8   whose jurisdiction the housing is located has, by resolution, 
  3.9   approved the provision of that low-rent public housing. 
  3.10     (d) This subdivision does not apply to any housing and 
  3.11  redevelopment authority, or public entity exercising the powers 
  3.12  of a housing and redevelopment authority, within the 
  3.13  jurisdiction of a county housing and redevelopment authority 
  3.14  which is actively carrying out a public housing program under 
  3.15  Section 5 of the United States Housing Act of 1937.  For 
  3.16  purposes of this paragraph, a county housing and redevelopment 
  3.17  authority is considered to be actively carrying out a public 
  3.18  housing program under Section 5 of the United States Housing Act 
  3.19  of 1937, if it (1) owns 200 or more public housing units 
  3.20  constructed under Section 5 of the United States Housing Act of 
  3.21  1937, and (2) has applied for public housing development funds 
  3.22  under Section 5 of the United States Housing Act of 1937, during 
  3.23  the three years immediately preceding January 1, 1996. 
  3.24     (e) For purposes of sections 469.001 to 469.047, "city" 
  3.25  means the city in which the housing units with respect to which 
  3.26  the joint board was created are located and "governing body" or 
  3.27  "governing body creating the authority" means the council of 
  3.28  such city. 
  3.29     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  3.30  473.167, subdivision 2, is amended to read: 
  3.31     Subd. 2.  [LOANS FOR ACQUISITION.] (a) The council may make 
  3.32  loans to counties, towns, and statutory and home rule charter 
  3.33  cities within the metropolitan area for the purchase of property 
  3.34  within the right-of-way of a state trunk highway shown on an 
  3.35  official map adopted pursuant to section 394.361 or 462.359 or 
  3.36  for the purchase of property within the proposed right-of-way of 
  4.1   a principal or intermediate arterial highway designated by the 
  4.2   council as a part of the metropolitan highway system plan and 
  4.3   approved by the council pursuant to subdivision 1.  The loans 
  4.4   shall be made by the council, from the fund established pursuant 
  4.5   to this subdivision, for purchases approved by the council.  The 
  4.6   loans shall bear no interest. 
  4.7      (b) The council shall make loans only: 
  4.8      (1) to accelerate the acquisition of primarily undeveloped 
  4.9   property when there is a reasonable probability that the 
  4.10  property will increase in value before highway construction, and 
  4.11  to update an expired environmental impact statement on a project 
  4.12  for which the right-of-way is being purchased; 
  4.13     (2) to avert the imminent conversion or the granting of 
  4.14  approvals which would allow the conversion of property to uses 
  4.15  which would jeopardize its availability for highway 
  4.16  construction; or 
  4.17     (3) to advance planning and environmental activities on 
  4.18  highest priority major metropolitan river crossing projects, 
  4.19  under the transportation development guide chapter/policy plan; 
  4.20  or 
  4.21     (4) to take advantage of open market opportunities when 
  4.22  developed properties become available for sale, provided all 
  4.23  parties involved are agreeable to the sale and funds are 
  4.24  available.  
  4.25     (c) The council shall not make loans for the purchase of 
  4.26  property at a price which exceeds the fair market value of the 
  4.27  property or which includes the costs of relocating or moving 
  4.28  persons or property.  The eminent domain process may be used to 
  4.29  settle differences of opinion as to fair market value, provided 
  4.30  all parties agree to the process. 
  4.31     (d) A private property owner may elect to receive the 
  4.32  purchase price either in a lump sum or in not more than four 
  4.33  annual installments without interest on the deferred 
  4.34  installments.  If the purchase agreement provides for 
  4.35  installment payments, the council shall make the loan in 
  4.36  installments corresponding to those in the purchase agreement.  
  5.1   The recipient of an acquisition loan shall convey the property 
  5.2   for the construction of the highway at the same price which the 
  5.3   recipient paid for the property.  The price may include the 
  5.4   costs of preparing environmental documents that were required 
  5.5   for the acquisition and that were paid for with money that the 
  5.6   recipient received from the loan fund.  Upon notification by the 
  5.7   council that the plan to construct the highway has been 
  5.8   abandoned or the anticipated location of the highway changed, 
  5.9   the recipient shall sell the property at market value in 
  5.10  accordance with the procedures required for the disposition of 
  5.11  the property.  All rents and other money received because of the 
  5.12  recipient's ownership of the property and all proceeds from the 
  5.13  conveyance or sale of the property shall be paid to the 
  5.14  council.  If a recipient is not permitted to include in the 
  5.15  conveyance price the cost of preparing environmental documents 
  5.16  that were required for the acquisition, then the recipient is 
  5.17  not required to repay the council an amount equal to 40 percent 
  5.18  of the money received from the loan fund and spent in preparing 
  5.19  the environmental documents.  
  5.20     (e) The proceeds of the tax authorized by subdivision 3 and 
  5.21  distributed to the right-of-way acquisition loan fund pursuant 
  5.22  to subdivision 3a, paragraph (a), all money paid to the council 
  5.23  by recipients of loans, and all interest on the proceeds and 
  5.24  payments shall be maintained as a separate fund.  For 
  5.25  administration of the loan program, the council may expend from 
  5.26  the fund each year an amount no greater than three percent of 
  5.27  the amount of the proceeds distributed to the right-of-way 
  5.28  acquisition loan fund pursuant to subdivision 3a, paragraph (a), 
  5.29  for that year. 
  5.30     Sec. 3.  Minnesota Statutes 1994, section 473.167, 
  5.31  subdivision 2a, is amended to read: 
  5.32     Subd. 2a.  [HARDSHIP ACQUISITION AND RELOCATION.] (a) The 
  5.33  council may make hardship loans to acquiring authorities within 
  5.34  the metropolitan area to purchase homestead property located in 
  5.35  a proposed state trunk highway right-of-way or project, and to 
  5.36  provide relocation assistance.  Acquiring authorities are 
  6.1   authorized to accept the loans and to acquire the property. 
  6.2   Except as provided in this subdivision, the loans shall be made 
  6.3   as provided in subdivision 2.  Loans shall be in the amount of 
  6.4   the appraised fair market value of the homestead property plus 
  6.5   relocation costs and less salvage value.  Before construction of 
  6.6   the highway begins, the acquiring authority shall convey the 
  6.7   property to the commissioner of transportation at the same price 
  6.8   it paid, plus relocation costs and less its salvage value. 
  6.9   Acquisition and assistance under this subdivision must conform 
  6.10  to sections 117.50 to 117.56.  
  6.11     (b) The council may make hardship loans only when: 
  6.12     (1) the owner of affected homestead property requests 
  6.13  acquisition and relocation assistance from an acquiring 
  6.14  authority; 
  6.15     (2) federal or state financial participation is not 
  6.16  available; 
  6.17     (3) the owner is unable to sell the homestead property at 
  6.18  its appraised market value because the property is located in a 
  6.19  proposed state trunk highway right-of-way or project as 
  6.20  indicated on an official map or plat adopted under section 
  6.21  160.085, 394.361, or 462.359; 
  6.22     (4) the appraisal of council agrees to and approves the 
  6.23  fair market value of the homestead property has been approved by 
  6.24  the council.  The council's, which approval shall not be 
  6.25  unreasonably withheld; and 
  6.26     (5) the owner of the homestead property is burdened by 
  6.27  circumstances that constitute a hardship, such as catastrophic 
  6.28  medical expenses; a transfer of the homestead owner by the 
  6.29  owner's employer to a distant site of employment; or inability 
  6.30  of the owner to maintain the property due to physical or mental 
  6.31  disability or the permanent departure of children from the 
  6.32  homestead.  
  6.33     (c) For purposes of this subdivision, the following terms 
  6.34  have the meanings given them. 
  6.35     (1) "Acquiring authority" means counties, towns, and 
  6.36  statutory and home rule charter cities in the metropolitan area. 
  7.1      (2) "Homestead property" means a single-family dwelling 
  7.2   occupied by the owner, and the surrounding land, not exceeding a 
  7.3   total of ten acres. 
  7.4      (3) "Salvage value" means the probable sale price of the 
  7.5   dwelling and other property that is severable from the land if 
  7.6   offered for sale on the condition that it be removed from the 
  7.7   land at the buyer's expense, allowing a reasonable time to find 
  7.8   a buyer with knowledge of the possible uses of the property, 
  7.9   including separate use of serviceable components and scrap when 
  7.10  there is no other reasonable prospect of sale. 
  7.11     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  7.12  473.167, subdivision 3, is amended to read: 
  7.13     Subd. 3.  [TAX.] The council may levy a tax on all taxable 
  7.14  property in the metropolitan area, as defined in section 
  7.15  473.121, to provide funds for loans made pursuant to 
  7.16  subdivisions 2 and 2a and for the tax base revitalization 
  7.17  account in the metropolitan livable communities fund, 
  7.18  established under section 473.251.  This tax for the 
  7.19  right-of-way acquisition loan fund and the tax base 
  7.20  revitalization account shall be certified by the council, 
  7.21  levied, and collected in the manner provided by section 473.13.  
  7.22  The tax shall be in addition to that authorized by section 
  7.23  473.249 and any other law and shall not affect the amount or 
  7.24  rate of taxes which may be levied by the council or any 
  7.25  metropolitan agency or local governmental unit.  The amount of 
  7.26  the levy shall be as determined and certified by the council., 
  7.27  provided that the property tax levied by the metropolitan 
  7.28  council for the right-of-way acquisition loan fund and the tax 
  7.29  base revitalization account shall not exceed the following 
  7.30  amount for the years specified: 
  7.31     (a) for taxes payable in 1988, the product of 5/100 of one 
  7.32  mill multiplied by the total assessed valuation of all taxable 
  7.33  property located within the metropolitan area as adjusted by the 
  7.34  provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
  7.35  subdivision 7a; and 275.49; 
  7.36     (b) for taxes payable in 1989, except as provided in 
  8.1   section 473.249, subdivision 3, the product of (1) the 
  8.2   metropolitan council's property tax levy limitation for the 
  8.3   right-of-way acquisition loan fund for the taxes payable year 
  8.4   1988 determined under clause (a) multiplied by (2) an index for 
  8.5   market valuation changes equal to the assessment year 1988 total 
  8.6   market valuation of all taxable property located within the 
  8.7   metropolitan area divided by the assessment year 1987 total 
  8.8   market valuation of all taxable property located within the 
  8.9   metropolitan area; 
  8.10     (c) for taxes payable in 1990, an amount not to exceed 
  8.11  $2,700,000; and 
  8.12     (d) for taxes payable in 1991 and subsequent years, the 
  8.13  product of (1) the metropolitan council's property tax levy 
  8.14  limitation for the right-of-way acquisition loan fund under this 
  8.15  subdivision for the taxes payable in 1988 determined under 
  8.16  clause (a) 1997 multiplied by (2) an index for market valuation 
  8.17  changes equal to the total market valuation of all taxable 
  8.18  property located within the metropolitan area for the current 
  8.19  taxes payable year divided by the total market valuation of all 
  8.20  taxable property located within the metropolitan area for taxes 
  8.21  payable in 1988 1997. 
  8.22     For the purpose of determining the metropolitan council's 
  8.23  property tax levy limitation for the right-of-way acquisition 
  8.24  loan fund and tax base revitalization account in the 
  8.25  metropolitan livable communities fund, under section 473.251, 
  8.26  for the taxes payable year 1988 and subsequent years under this 
  8.27  subdivision, "total market valuation" means the total market 
  8.28  valuation of all taxable property within the metropolitan area 
  8.29  without valuation adjustments for fiscal disparities (chapter 
  8.30  473F), tax increment financing (sections 469.174 to 469.179), 
  8.31  and high voltage transmission lines (section 273.425). 
  8.32     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
  8.33  473.252, is amended to read: 
  8.34     473.252 [TAX BASE REVITALIZATION ACCOUNT.] 
  8.35     Subdivision 1.  [DEFINITION.] For the purposes of this 
  8.36  section, "municipality" means a statutory or home rule charter 
  9.1   city or town participating in the local housing incentives 
  9.2   program under section 473.254, or a county in the metropolitan 
  9.3   area.  
  9.4      Subd. 1a.  [DEVELOPMENT AUTHORITY.] "Development authority" 
  9.5   means a statutory or home rule charter city, housing and 
  9.6   redevelopment authority, economic development authority, and a 
  9.7   port authority. 
  9.8      Subd. 2.  [SOURCES OF FUNDS.] The council shall credit to 
  9.9   the tax base revitalization account within the fund the amount, 
  9.10  if any, provided for under section 473.167, subdivision 3a, 
  9.11  paragraph (b) 4, and the amount, if any, distributed to the 
  9.12  council under section 473F.08, subdivision 3b. 
  9.13     Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
  9.14  the funds in the account to make grants to municipalities or 
  9.15  development authorities for the cleanup of polluted land in the 
  9.16  metropolitan area.  A grant to a metropolitan county or a 
  9.17  development authority must be used for a project in a 
  9.18  participating municipality.  The council shall prescribe and 
  9.19  provide the grant application form to municipalities.  The 
  9.20  council must consider the probability of funding from other 
  9.21  sources when making grants under this section. 
  9.22     (b)(1) The legislature expects that applications for grants 
  9.23  will exceed the available funds and the council will be able to 
  9.24  provide grants to only some of the applicant municipalities.  If 
  9.25  applications for grants for qualified sites exceed the available 
  9.26  funds, the council shall make grants that provide the highest 
  9.27  return in public benefits for the public costs incurred, that 
  9.28  encourage commercial and industrial development that will lead 
  9.29  to the preservation or growth of living-wage jobs and that 
  9.30  enhance the tax base of the recipient municipality. 
  9.31     (2) In making grants, the council shall establish regular 
  9.32  application deadlines in which grants will be awarded from the 
  9.33  available money in the account.  If the council provides for 
  9.34  application cycles of less than six-month intervals, the council 
  9.35  must reserve at least 40 percent of the receipts of the account 
  9.36  for a year for application deadlines that occur in the second 
 10.1   half of the year.  If the applications for grants exceed the 
 10.2   available funds for an application cycle, no more than one-half 
 10.3   of the funds may be granted to projects in a statutory or home 
 10.4   rule charter city and no more than three-quarters of the funds 
 10.5   may be granted to projects located in cities of the first class. 
 10.6      (c) A municipality may use the grant to provide a portion 
 10.7   of the local match requirement for project costs that qualify 
 10.8   for a grant under sections 116J.551 to 116J.557. 
 10.9      Subd. 4.  [TAX.] The council may levy a tax on all taxable 
 10.10  property in the metropolitan area, as defined in section 
 10.11  473.121, to provide funds for the tax base revitalization 
 10.12  account in the metropolitan livable communities fund.  This tax 
 10.13  for the tax base revitalization account shall be certified by 
 10.14  the council, levied, and collected in the manner provided by 
 10.15  section 473.13.  The tax shall be in addition to that authorized 
 10.16  by section 473.249 and any other law and shall not affect the 
 10.17  amount or rate of taxes which may be levied by the council or 
 10.18  any metropolitan agency or local governmental unit. 
 10.19     The amount of the levy shall be as determined and certified 
 10.20  by the council, provided that the tax levied by the metropolitan 
 10.21  council for the tax base revitalization account shall not exceed 
 10.22  the product of (1) the metropolitan council's levy for the tax 
 10.23  base revitalization account under section 473.167, subdivision 
 10.24  3, for taxes payable in 1997 multiplied by (2) an index for 
 10.25  market valuation changes equal to the total market valuation of 
 10.26  all taxable property located within the metropolitan area for 
 10.27  the current taxes payable year divided by the total market 
 10.28  valuation of all taxable property located within the 
 10.29  metropolitan area for taxes payable in 1997. 
 10.30     For the purpose of determining the metropolitan council's 
 10.31  property tax levy limitation for the tax base revitalization 
 10.32  account, "total market valuation" means the total market 
 10.33  valuation of all taxable property within the metropolitan area 
 10.34  without valuation adjustments for fiscal disparities (chapter 
 10.35  473F), tax increment financing (sections 469.174 to 469.179), 
 10.36  and high voltage transmission lines (section 273.425). 
 11.1      Subd. 5.  [STATE REVIEW.] The commissioner of revenue shall 
 11.2   certify the council's levy limitation under this section to the 
 11.3   council by August 1 of the levy year.  The council must certify 
 11.4   its proposed property tax levy to the commissioner of revenue by 
 11.5   September 1 of the levy year.  The commissioner of revenue shall 
 11.6   annually determine whether the property tax for the tax base 
 11.7   revitalization account certified by the metropolitan council for 
 11.8   levy following the adoption of its proposed budget is within the 
 11.9   levy limitation imposed by this section.  The determination must 
 11.10  be completed prior to September 10 of each year.  If current 
 11.11  information regarding market valuation in any county is not 
 11.12  transmitted to the commissioner in a timely manner, the 
 11.13  commissioner may estimate the current market valuation within 
 11.14  that county for purposes of making the calculation. 
 11.15     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 11.16  473.704, subdivision 18, is amended to read: 
 11.17     Subd. 18.  The commission may establish a research program 
 11.18  to evaluate the effects of control programs on other fauna.  The 
 11.19  purpose of the program is to identify the types and magnitude of 
 11.20  the adverse effects of the control program on fish and wildlife 
 11.21  and associated food chain invertebrates.  The commission may 
 11.22  conduct research through contracts with qualified outside 
 11.23  researchers.  The commission may finance the research program 
 11.24  each year at a level up to 2.5 percent of its annual budget, 
 11.25  until December 31, 1995. 
 11.26     Sec. 7.  [ISSUANCE OF BONDS OR NOTES FOR ACQUISITION OF 
 11.27  PROPERTY.] 
 11.28     Subdivision 1.  [BONDS; LOANS.] The council may borrow 
 11.29  money or by resolution authorize the issuance of general 
 11.30  obligation bonds or notes for the acquisition of qualifying real 
 11.31  property located within Hennepin county which the council 
 11.32  determines is necessary for the proposed north-south runway 
 11.33  expansion of the Minneapolis-St. Paul International Airport.  
 11.34  For purposes of this subdivision, "qualifying real property" 
 11.35  means all or part of (1) the met center property as identified 
 11.36  in Minnesota Statutes, section 473.551, subdivision 12; or (2) 
 12.1   property located in the tax increment financing district 
 12.2   designated as tax increment financing district No. 1-G with 
 12.3   boundaries consisting of a 31.9 acre parcel known as the Kelly 
 12.4   property.  
 12.5      Subd. 2.  [PROCEDURE.] The bonds or notes shall be sold, 
 12.6   issued, and secured in the manner provided in Minnesota 
 12.7   Statutes, chapter 475, and the council shall have the same 
 12.8   powers and duties as a municipality issuing bonds under that 
 12.9   chapter, except that no election shall be required and the net 
 12.10  debt limitations in Minnesota Statutes, chapter 475, shall not 
 12.11  apply to such bonds or notes.  The obligations are not a debt of 
 12.12  the state or any other municipality or political subdivision 
 12.13  within the meaning of any debt limitation or requirement 
 12.14  pertaining to those entities.  The bonds or notes may be sold at 
 12.15  any price and at a public or private sale as determined by the 
 12.16  council.  The obligations may be secured by taxes levied without 
 12.17  limitation of rate or amount upon all taxable property in the 
 12.18  metropolitan area.  
 12.19     Subd. 3.  [COST SHARING; DISPOSITION OF PROPERTY.] The 
 12.20  council may enter into agreements with the metropolitan airports 
 12.21  commission, any municipality in the metropolitan area, and any 
 12.22  corporation, public or private, to share the costs of acquiring 
 12.23  any real property which the council determines is necessary for 
 12.24  any proposed expansion of the Minneapolis-St. Paul International 
 12.25  Airport.  If the council acquires real property pursuant to 
 12.26  subdivision 2 and Minnesota Statutes, section 473.129, 
 12.27  subdivision 7, which it subsequently determines is not needed 
 12.28  for the expansion of the airport, the real property shall be 
 12.29  sold in accordance with the council's procedures and the 
 12.30  proceeds from the sale of the real property shall be used for 
 12.31  debt service or retirement of any bonds or notes issued pursuant 
 12.32  to subdivision 2.  
 12.33     Sec. 8.  [BLOOMINGTON; TAX INCREMENT.] 
 12.34     Subdivision 1.  [PUBLIC PURPOSE.] In 1985, the port 
 12.35  authority of the city of Bloomington established a redevelopment 
 12.36  tax increment financing district designated as tax increment 
 13.1   financing district No. 1-G with boundaries consisting of a 31.9 
 13.2   acre parcel known as the Kelly property located at the northeast 
 13.3   quadrant of 24th Avenue and East Old Shakopee Road in the city 
 13.4   of Bloomington with the intention of financing certain 
 13.5   redevelopment costs, including selected public improvements 
 13.6   within the airport south industrial development district.  The 
 13.7   Kelly property was conveyed to the Mall of America Company by 
 13.8   the port authority of the city of Bloomington, pursuant to the 
 13.9   restated contract dated May 31, 1988, by and between the city of 
 13.10  Bloomington, port authority of the city of Bloomington, and Mall 
 13.11  of America Company, subject to the condition that the Mall of 
 13.12  America Company commence construction of a subsequent phase of 
 13.13  the Mall of America project on the site no later than 2002.  If 
 13.14  the Mall of America Company fails to commence construction of a 
 13.15  subsequent phase of development on the Kelly property by 2002, 
 13.16  ownership of the property reverts to the port authority of the 
 13.17  city of Bloomington.  The Minneapolis-St. Paul International 
 13.18  Airport long-term comprehensive plan proposes construction of a 
 13.19  north-south runway to guaranty future operation of the airport 
 13.20  in a safe, efficient manner.  Public acquisition of the Kelly 
 13.21  property by the metropolitan airports commission will be 
 13.22  required to facilitate construction of the north-south runway.  
 13.23     Subd. 2.  [AUTHORIZATION.] The port authority of the city 
 13.24  of Bloomington may amend the redevelopment tax increment 
 13.25  financing district consisting of the Kelly property so that it 
 13.26  shall, instead, consist of the met center property as identified 
 13.27  in Minnesota Statutes, section 473.551, subdivision 12, upon 
 13.28  satisfaction of the following conditions precedent:  
 13.29     (1) sale of the met center property from the metropolitan 
 13.30  council or a metropolitan agency to the Mall of America Company 
 13.31  or an entity comprising at least one partner of the Mall of 
 13.32  America Company or an affiliate of such partner; 
 13.33     (2) approval by the city of Bloomington, port authority of 
 13.34  the city of Bloomington, and Mall of America Company of 
 13.35  amendments to the restated contract dated May 31, 1988, which 
 13.36  transfer development rights and contract obligations from the 
 14.1   Kelly property to the met center property; 
 14.2      (3) approval by the Minnesota environmental quality board 
 14.3   of an environmental impact statement for the met center property 
 14.4   and approval by the Minnesota pollution control agency of an 
 14.5   indirect source permit for the met center property; 
 14.6      (4) approval by the city of Bloomington and port authority 
 14.7   of the city of Bloomington of a final development plan for the 
 14.8   met center property; 
 14.9      (5) an agreement by the owner-developer of the met center 
 14.10  property, in a form satisfactory to the city of Bloomington and 
 14.11  port authority of the city of Bloomington, to dedicate to the 
 14.12  city of Bloomington land for rights-of-way and other public 
 14.13  improvements required for a subsequent phase of the Mall of 
 14.14  America project on the met center property; 
 14.15     (6) the metropolitan airports commission and the Mall of 
 14.16  America Company have either: 
 14.17     (i) entered into a purchase agreement for the sale of the 
 14.18  Kelly property; or 
 14.19     (ii) agreed, in writing, to pay compensation based on the 
 14.20  existing development rights for the use of the Kelly property in 
 14.21  an amount not to exceed the total cost of acquiring the met 
 14.22  center property; and 
 14.23     (7) an agreement by the Mall of America Company not to sue 
 14.24  or claim any damages against either the city of Bloomington or 
 14.25  port authority of the city of Bloomington arising out of 
 14.26  rezoning of the Kelly property pursuant to Minnesota Statutes, 
 14.27  sections 360.061 to 360.074, or an amendment to the 
 14.28  comprehensive plan of the city of Bloomington relating to the 
 14.29  Kelly property.  
 14.30  The requirements of Minnesota Statutes, section 469.175, 
 14.31  subdivision 4, do not apply to modification of the plan to 
 14.32  provide for the substitution of legal descriptions authorized 
 14.33  hereby.  The original net tax capacity of the district shall be 
 14.34  recertified in accordance with Minnesota Statutes, section 
 14.35  469.177, subdivision 1, upon amendment of the geographic 
 14.36  boundaries of the district.  The district shall continue in 
 15.1   existence from its original date of creation and the amendment 
 15.2   of the geographic boundaries of the district and recertification 
 15.3   of original net tax capacity of the district shall not cause the 
 15.4   application to the district of any provisions of law which would 
 15.5   not otherwise be applicable to the district. 
 15.6      Subd. 3.  [SPECIAL RULES.] (a) Tax increment may not be 
 15.7   captured by the port authority from the tax increment financing 
 15.8   district on the met center property after December 31 of the 
 15.9   year in which tax increments, assessments, and other revenues 
 15.10  from the district and the accumulated increments from the 
 15.11  district consisting of the Kelly property exceed the permitted 
 15.12  expenditures under paragraph (d).  The provisions of this 
 15.13  paragraph apply beginning with the first calendar year after the 
 15.14  conditions precedent in subdivision 2 are satisfied and 
 15.15  construction has begun on improvements on the met center site. 
 15.16  No increments may, in any event, be collected from the tax 
 15.17  increment financing district on the met center site after 
 15.18  December 31, 2018. 
 15.19     (b) The provisions of Minnesota Statutes, section 273.1399, 
 15.20  do not apply to the tax increment financing district on the met 
 15.21  center property. 
 15.22     (c) The governing body of the city of Bloomington must 
 15.23  elect the method of computation of tax increment specified in 
 15.24  Minnesota Statutes, section 469.177, subdivision 3, paragraph 
 15.25  (b), in the tax increment financing district on the met center 
 15.26  property. 
 15.27     (d) Tax increments, assessments, and other revenues derived 
 15.28  from the tax increment district on the met center property and 
 15.29  any accumulated tax increments from the tax increment financing 
 15.30  district on the Kelly property may be used to finance only the 
 15.31  following: 
 15.32     (1) amounts that the city or port authority must pay to 
 15.33  reimburse or otherwise pay the developer for public improvements 
 15.34  because of counted value resulting from investment in property 
 15.35  at the met center site under section 9.2(05) of the restated 
 15.36  contract for purchase and private redevelopment of land, by and 
 16.1   among the city of Bloomington, the port authority of the city of 
 16.2   Bloomington, and the Mall of America Company, dated May 31, 
 16.3   1988; 
 16.4      (2) interest and other financing costs the city or port 
 16.5   authority pays or incurs on, but that are not included in, the 
 16.6   amounts under clause (1); 
 16.7      (3) interest and principal on qualified bonds to the extent 
 16.8   that other available revenues and increments from other sources 
 16.9   that are pledged to pay the bonds are insufficient.  In 
 16.10  determining whether other available revenues or increments are 
 16.11  insufficient, spending of these revenues for only the following 
 16.12  items reduce available revenues (all other revenues are deemed 
 16.13  to be available): 
 16.14     (A) payment of debt service on bonds and obligations issued 
 16.15  and sold before March 31, 1996; 
 16.16     (B) payments under binding written contracts in effect on 
 16.17  March 31, 1996, to which the increments or other revenues are 
 16.18  pledged; and 
 16.19     (C) reasonable administrative expenses, subject to the 
 16.20  limits under Minnesota Statutes, section 469.176, subdivision 3; 
 16.21  and 
 16.22     (4) reasonable administrative expenses as provided under 
 16.23  Minnesota Statutes, sections 469.174 to 469.178.  The amounts 
 16.24  permitted under clauses (1) and (2) must be used to determine 
 16.25  the limit or administrative expenses under Minnesota Statutes, 
 16.26  section 469.176, subdivision 3. 
 16.27     For the purposes of paragraph (d), "qualified bonds" means: 
 16.28     (i) bonds or other obligations issued and sold before March 
 16.29  31, 1996, to which increments from the tax increment financing 
 16.30  district consisting of the Kelly property are pledged; and 
 16.31     (ii) bonds or other obligations that refund bonds described 
 16.32  in (i), if the refunding bonds do not increase the present value 
 16.33  of the debt service payments secured by the increments and are 
 16.34  secured by a pledge of the same increments and other revenues as 
 16.35  secured by the bonds to be refunded. 
 16.36     For purposes of determining the qualifying ratio percent 
 17.1   for counted value under the formula in section 9.2(05) of the 
 17.2   restated contract under clause (1), investment in property at 
 17.3   the met center site is deemed to be after or in addition to all 
 17.4   the investment at other sites covered by the restated contract.  
 17.5      Subd. 4.  [ACQUISITION OF PROPERTY.] Notwithstanding any 
 17.6   law to the contrary, the metropolitan airports commission is 
 17.7   authorized to acquire or purchase the Kelly property consistent 
 17.8   with the public purpose set forth in this law.  This may be 
 17.9   accomplished by an exchange of land, purchase of development 
 17.10  rights, acquisition of easements, or other method to be 
 17.11  negotiated with the landowner or by outright purchase or 
 17.12  exercise of eminent domain, if necessary. 
 17.13     Subd. 5.  [LIMITATION ON USE OF TAX INCREMENT.] If the port 
 17.14  authority of the city of Bloomington amends the redevelopment 
 17.15  tax increment financing district from the Kelly property to the 
 17.16  met center property, the owner of the met center property shall 
 17.17  be bound by the limitations on public reimbursement for 
 17.18  qualified public improvements as set forth in section 9.2(05) of 
 17.19  the restated contract dated May 31, 1988, by and between the 
 17.20  city of Bloomington, port authority of the city of Bloomington, 
 17.21  and Mall of America Company. 
 17.22     Sec. 9.  [TRANSFER.] 
 17.23     Subdivision 1.  Notwithstanding Minnesota Statutes, section 
 17.24  473.167, the council may transfer a portion of the proceeds in 
 17.25  the right-of-way acquisition loan fund to the planning 
 17.26  assistance grant and loan program provided in Minnesota 
 17.27  Statutes, section 473.867.  To provide additional funds for the 
 17.28  planning assistance grant and loan program authorized in 
 17.29  Minnesota Statutes, section 473.867, the metropolitan council 
 17.30  may transfer up to $1,000,000 of the proceeds of solid waste 
 17.31  bonds issued by the council under Minnesota Statutes, section 
 17.32  473.831, before its repeal.  By 2008, the council shall repay 
 17.33  any amount transferred from the right-of-way acquisition loan 
 17.34  fund using the proceeds of the tax authorized in Minnesota 
 17.35  Statutes, section 473.249.  
 17.36     Subd. 2.  In 1997, the council must use $200,000 of any 
 18.1   amount transferred in subdivision 1 to make grants of not more 
 18.2   than $20,000 each to municipalities for technical assistance to 
 18.3   prepare a growth management strategy as part of the 
 18.4   municipality's comprehensive plan.  A growth management strategy 
 18.5   may include principles such as:  preservation of undeveloped 
 18.6   open spaces for agricultural production, recreational use, and 
 18.7   scenic enjoyment; creation of cohesive neighborhoods to 
 18.8   establish local identity and community interaction; physical 
 18.9   integration of natural open spaces, neighborhoods, and other 
 18.10  districts in a manner that creates the highest and best value of 
 18.11  all land in the community; and the establishment of a phasing 
 18.12  plan to guide reasonable, incremental development of the 
 18.13  community.  Municipalities may apply for the grants in 
 18.14  partnership with other municipalities or with a county.  For the 
 18.15  purposes of this subdivision "municipality" means any city or 
 18.16  town in the metropolitan area as defined in Minnesota Statutes, 
 18.17  section 473.121. 
 18.18     Sec. 10.  [ACQUISITION OF THE MET CENTER PROPERTY.] 
 18.19     Notwithstanding anything to the contrary in sections 7 to 
 18.20  14, the authority granted to acquire real property shall not 
 18.21  authorize acquisition of the met center property, as defined in 
 18.22  Minnesota Statutes, section 473.551, subdivision 12, by eminent 
 18.23  domain. 
 18.24     Sec. 11.  [ST. LOUIS PARK TIF; STATE AID OFFSET.] 
 18.25     Subdivision 1.  [COMPUTATION OF AID OFFSET.] If the City of 
 18.26  St. Louis Park elects to extend the duration of the Excelsior 
 18.27  Boulevard Redevelopment Project under Laws 1995, chapter 264, 
 18.28  article 5, section 36, and if the city receives a grant under 
 18.29  section 473.253 for use within the project, the state aid 
 18.30  reduction required by Minnesota Statutes, section 469.1782, 
 18.31  subdivision 1, must be computed as provided in this section.  
 18.32  The reduction in state tax increment financing aid under 
 18.33  Minnesota Statutes, section 273.1399 must be computed using 70 
 18.34  percent of the captured tax capacity of the district for the 
 18.35  years in which the extension applies. 
 18.36     Subd. 2.  [EFFECTIVE DATE.] This section is effective the 
 19.1   day following final enactment without local approval. 
 19.2      Sec. 12.  [REPEALER.] 
 19.3      (a) Minnesota Statutes 1994, section 473.167, subdivision 
 19.4   5, is repealed. 
 19.5      (b) Minnesota Statutes 1995 Supplement, section 473.167, 
 19.6   subdivision 3a, is repealed. 
 19.7      Sec. 13.  [APPLICATION.] 
 19.8      Sections 2 to 7, 9, and 12 apply in the counties of Anoka, 
 19.9   Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
 19.10     Sec. 14.  [EFFECTIVE DATE.] 
 19.11     Sections 4 and 5, subdivisions 2, 4, and 5, are effective 
 19.12  for taxes levied in 1997, payable in 1998 and subsequent years.  
 19.13  Section 12, paragraph (b), is effective January 1, 1998. 
 19.14     Section 8 is effective upon compliance by the governing 
 19.15  body of the port authority of the city of Bloomington and the 
 19.16  governing body of the city of Bloomington with Minnesota 
 19.17  Statutes, section 645.021, subdivision 2. 
 19.18     The remainder of this article is effective the day 
 19.19  following final enactment. 
 19.20                             ARTICLE 2
 19.21             METROPOLITAN TRANSPORTATION INVESTMENT ACT
 19.22     Section 1.  [473.1465] [TRANSPORTATION POLICY.] 
 19.23     Subdivision 1.  [DEFINITION.] For the purposes of this 
 19.24  section and section 473.1466 "commuting area" means the 
 19.25  metropolitan area and counties outside the metropolitan area in 
 19.26  which five percent or more of the residents commute to 
 19.27  employment in the metropolitan area. 
 19.28     Subd. 2.  [REVISED TRANSPORTATION POLICY PLAN.] The 
 19.29  metropolitan council shall adopt, after appropriate public 
 19.30  comment, a revised transportation policy plan that: 
 19.31     (1) is consistent with state law and council policy; 
 19.32     (2) identifies and summarizes issues concerning commuting 
 19.33  into and out of the seven-county area from the commuting area; 
 19.34     (3) integrates and maximizes the efficiencies and 
 19.35  effectiveness of all modes of transportation in the region; and 
 19.36     (4) reflects and does not exceed current available 
 20.1   resources. 
 20.2      The council shall adopt the revised transportation policy 
 20.3   plan by December 31, 1996. 
 20.4      Subd. 3.  [PROJECT EVALUATION.] As part of developing the 
 20.5   revised transportation policy plan, the council shall evaluate 
 20.6   all proposed and pending transportation projects that are 
 20.7   subject to council review and report to the legislature the 
 20.8   results of council's evaluation. 
 20.9      Sec. 2.  [473.1466] [PERFORMANCE AUDIT.] 
 20.10     In 1997 and every four years thereafter, the council shall 
 20.11  provide for an independent entity selected through a request for 
 20.12  proposal process conducted nationwide to do a performance audit 
 20.13  of the commuting area's transportation system as a whole.  The 
 20.14  performance audit must evaluate the commuting area's ability to 
 20.15  meet the region's needs for effective and efficient 
 20.16  transportation of goods and people, evaluate future trends and 
 20.17  their impacts on the region's transportation system, and make 
 20.18  recommendations for improving the system.  The performance audit 
 20.19  must recommend performance-funding measures.  In 1997 and every 
 20.20  two years thereafter, the council must evaluate the performance 
 20.21  of the metropolitan transit system's operation in relationship 
 20.22  to the regional transit performance standards developed by the 
 20.23  council. 
 20.24     Sec. 3.  [473.3875] [TRANSIT FOR LIVABLE COMMUNITIES.] 
 20.25     The council shall establish a transit for livable 
 20.26  communities demonstration program fund.  The council shall adopt 
 20.27  guidelines for selecting and evaluating demonstration projects 
 20.28  for funding.  The selection guidelines must include provisions 
 20.29  evaluating projects: 
 20.30     (1) interrelating development or redevelopment and transit; 
 20.31     (2) interrelating affordable housing and employment growth 
 20.32  areas; 
 20.33     (3) helping intensify land use that leads to more compact 
 20.34  development or redevelopment; 
 20.35     (4) coordinating school transportation and public transit 
 20.36  service; 
 21.1      (5) implementing recommendations of the transit redesign 
 21.2   plan; or 
 21.3      (6) otherwise promoting the goals of the metropolitan 
 21.4   livable communities act. 
 21.5      Sec. 4.  Minnesota Statutes 1994, section 473.388, is 
 21.6   amended by adding a subdivision to read: 
 21.7      Subd. 7.  [SERVICE INCENTIVE.] A replacement transit 
 21.8   service shall receive an additional two percent of available 
 21.9   local transit funds, as defined in subdivision 4, if the service 
 21.10  increased its ridership for trips that originate outside of the 
 21.11  replacement transit service's member communities and serve the 
 21.12  employment centers in those communities by at least five percent 
 21.13  from the previous year, provided the service operates within 
 21.14  regional performance standards.  A replacement transit service 
 21.15  that is receiving the maximum amount of available local transit 
 21.16  funds may receive up to two percent over the maximum amount set 
 21.17  in subdivision 4 if it increases its ridership as provided in 
 21.18  this subdivision.  The additional funding received under this 
 21.19  subdivision may be reserved by the replacement transit service 
 21.20  for future use. 
 21.21     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 21.22  473.391, is amended to read: 
 21.23     473.391 [ROUTE PLANNING AND SCHEDULING.] 
 21.24     Subdivision 1.  [CONTRACTS.] The council may contract with 
 21.25  other operators or local governments for route planning and 
 21.26  scheduling services in any configuration of new or 
 21.27  reconfiguration of existing transit services and routes, 
 21.28  including route planning and scheduling necessary for the test 
 21.29  marketing program, the service bidding program, and the 
 21.30  interstate highway described generally as legislative routes 
 21.31  Nos. 10 and 107 between I-494 and the Hawthorne interchange in 
 21.32  the city of Minneapolis, commonly known as I-394.  
 21.33     Subd. 2.  [ROUTE ELIMINATION; SERVICE REDUCTION.] The 
 21.34  council shall, before making a determination to eliminate or 
 21.35  reduce service on existing transit routes, consider: 
 21.36     (1) the level of subsidy per passenger on each route; 
 22.1      (2) the availability and proximity of alternative transit 
 22.2   routes; and 
 22.3      (3) the percentage of transit dependent riders, including 
 22.4   youth, elderly, low-income, and disabled riders currently using 
 22.5   each route. 
 22.6      Sec. 6.  Laws 1995, chapter 265, article 1, section 4, is 
 22.7   amended to read: 
 22.8      Sec. 4.  [EFFECTIVE DATE.] 
 22.9      Sections 1 to 3 are effective upon metropolitan council 
 22.10  approval of plans presented by the commissioner to: 
 22.11     (1) construct one additional lane on each roadway of I-394 
 22.12  at or near its interchange with Penn Avenue; 
 22.13     (2) preserve the existence of an additional lane eastbound 
 22.14  between Penn Avenue and the Dunwoody Boulevard exit; 
 22.15     (3) erect noise barriers adjacent to the westbound roadway 
 22.16  of the highway continuously between Wirth Parkway and Penn 
 22.17  Avenue the east end of bridge No. 27770, and on the eastbound 
 22.18  roadway of the highway continuously between Madeira Avenue and 
 22.19  Wirth Parkway, and extend the existing noise barriers easterly 
 22.20  of France Avenue, all with the consent of all affected owners of 
 22.21  commercial property; 
 22.22     (4) adopt a goal of achieving an average occupancy rate on 
 22.23  the highway of 1.6 persons per vehicle by 2000, and implement a 
 22.24  five-year program in cooperation with the council intended to 
 22.25  achieve that goal by, among other means, significantly 
 22.26  increasing the use of high-occupancy lanes on the highway and 
 22.27  the use of other roadways; 
 22.28     (5) develop and implement, jointly with the commissioner of 
 22.29  public safety, a plan and program for (i) enforcement of speed 
 22.30  limits and other traffic laws and high-occupancy lane 
 22.31  restrictions and the minimizing of late merging of traffic onto 
 22.32  the eastbound highway, and (ii) demonstration of increased 
 22.33  information and education through changeable message signs and 
 22.34  the use of electronic detection to identify and warn traffic law 
 22.35  violators; and 
 22.36     (6) ensure that the highway has a bituminous surface and 
 23.1   HOV lanes are ground or milled between June Avenue in Golden 
 23.2   Valley and the highway's intersection with marked interstate 
 23.3   highway No. 94 in Minneapolis the west end of the bridge 
 23.4   approach to bridge No. 27770 or has a bituminous surface on the 
 23.5   mixed use lanes within the same limits. 
 23.6      Sec. 7.  [BEST PRACTICES REPORT.] 
 23.7      The legislative audit commission is requested to direct the 
 23.8   legislative auditor to prepare and submit to the legislature by 
 23.9   December 1, 1996, a best practices report on cooperative and 
 23.10  integrated transit services that are effective and efficient.  
 23.11  To the extent available, the report must include information on 
 23.12  best practices for regular route public transit service, transit 
 23.13  that links jobs and housing, integrating private transit 
 23.14  services with public transit services, and integrating school 
 23.15  transportation with public transit services. 
 23.16     Sec. 8.  [METROPOLITAN TRANSIT REDESIGN.] 
 23.17     Subdivision 1.  [1997 PLAN.] The metropolitan council shall 
 23.18  present to the 1997 legislature a status report on the 
 23.19  implementation plan for improved transit service for the 
 23.20  region.  The plan must be developed with the assistance of an 
 23.21  advisory committee established by the council.  At a minimum, 
 23.22  the plan must: 
 23.23     (1) utilize community-based transit services; 
 23.24     (2) encourage local initiatives for improved transit 
 23.25  service; 
 23.26     (3) encourage coordination of various public transit 
 23.27  services and private, for-profit, and nonprofit transit services 
 23.28  that do not receive transit subsidies from the council; 
 23.29     (4) establish performance measures that further transit 
 23.30  goals for the region that are consistent with and promote the 
 23.31  policies of the Regional Blueprint and the metropolitan livable 
 23.32  communities act; and 
 23.33     (5) include an operating and capital budget projection for 
 23.34  the biennium ending June 30, 1999. 
 23.35     Subd. 2.  [ADVISORY COMMITTEE.] The council shall utilize 
 23.36  an advisory committee to assist the council in preparing the 
 24.1   plan required under subdivision 1.  Members of the committee 
 24.2   must represent local community interests.  Members of the 
 24.3   advisory committee shall serve without compensation but may be 
 24.4   reimbursed by the council for reasonable expenses. 
 24.5      Sec. 9.  [STUDY; PAYING FOR NEW GROWTH.] 
 24.6      The metropolitan council shall identify means of insuring 
 24.7   that new development pays the costs associated with the new 
 24.8   development, including, but not limited to, the costs of 
 24.9   infrastructure to accommodate the new development and the 
 24.10  present value of services provided by public entities.  The 
 24.11  council shall report its findings to the legislature by February 
 24.12  1, 1997. 
 24.13     Sec. 10.  [PERFORMANCE MEASURES TO BE MET.] 
 24.14     Subdivision 1.  [METROPOLITAN COUNCIL.] If the metropolitan 
 24.15  council is appropriated money from the general fund for public 
 24.16  transit operations for fiscal year 1997, 1.5 percent shall be 
 24.17  made available to the council after June 1, 1997, only if the 
 24.18  commissioner of finance determines that metropolitan council 
 24.19  transit operations passengers per revenue hour productivity has 
 24.20  increased in a one-year period between the effective date of 
 24.21  this section and June 1, 1997.  Another 1.5 percent shall be 
 24.22  made available to the council after June 1, 1997, only if the 
 24.23  commissioner of finance determines that metropolitan council 
 24.24  transit operations subsidy per passenger has decreased in a 
 24.25  one-year period between the effective date of this section and 
 24.26  June 1, 1997. 
 24.27     Subd. 2.  [DEPARTMENT OF TRANSPORTATION.] If the 
 24.28  commissioner of transportation is appropriated money from the 
 24.29  trunk highway fund in 1996 for state road construction, five 
 24.30  percent shall be made available to the commissioner after June 
 24.31  1, 1997, only if the commissioner of finance determines that the 
 24.32  department of transportation's administrative costs have 
 24.33  decreased as a percentage of construction costs in a one-year 
 24.34  period between the effective date of this section and June 1, 
 24.35  1997. 
 24.36     Sec. 11.  [PERFORMANCE AUDIT; DEADLINE.] 
 25.1      The metropolitan council's first performance audit report, 
 25.2   required under section 2, must be submitted to the legislature 
 25.3   by December 15, 1997. 
 25.4      Sec. 12.  [APPLICATION.] 
 25.5      Sections 1 to 6, 8, 9, 10, subdivision 1, and 11 apply to 
 25.6   the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
 25.7   and Washington. 
 25.8      Sec. 13.  [EFFECTIVE DATE.] 
 25.9      This article is effective the day following final enactment.
 25.10                             ARTICLE 3
 25.11                  METROPOLITAN AIRPORT PROVISIONS
 25.12     Section 1.  Minnesota Statutes 1994, section 473.155, is 
 25.13  amended by adding a subdivision to read: 
 25.14     Subd. 5.  [ZONING OF REAL PROPERTY.] The council shall not 
 25.15  require a local government unit to continue a current use or to 
 25.16  adopt a comprehensive plan designation or any change in zoning, 
 25.17  zoning variance, or conditional use in order to ensure or 
 25.18  preserve the availability of land for a new major airport. 
 25.19     Sec. 2.  Minnesota Statutes 1994, section 473.608, 
 25.20  subdivision 2, is amended to read: 
 25.21     Subd. 2.  It may acquire by lease, purchase, gift, devise, 
 25.22  or condemnation proceedings all necessary right, title, and 
 25.23  interest in and to lands and personal property required for 
 25.24  airports and all other real or personal property required for 
 25.25  the purposes contemplated by sections 473.601 to 473.679, within 
 25.26  the metropolitan area, pay therefor out of funds obtained as 
 25.27  hereinafter provided, and hold and dispose of the same, subject 
 25.28  to the limitations and conditions herein prescribed except that 
 25.29  the corporation may not acquire by any means lands or personal 
 25.30  property for a major new airport.  Title to any such property 
 25.31  acquired by condemnation or purchase shall be in fee simple, 
 25.32  absolute, unqualified in any way, but any such real or personal 
 25.33  property or interest therein otherwise acquired may be so 
 25.34  acquired or accepted subject to any condition which may be 
 25.35  imposed thereon by the grantor or donor and agreed to by the 
 25.36  corporation, not inconsistent with the proper use of the 
 26.1   property by the corporation for the purposes herein provided.  
 26.2   Any properties, real or personal, acquired, owned, leased, 
 26.3   controlled, used, and occupied by the corporation for any of the 
 26.4   purposes of sections 473.601 to 473.679, are declared to be 
 26.5   acquired, owned, leased, controlled, used, and occupied for 
 26.6   public, governmental, and municipal purposes, and shall be 
 26.7   exempt from taxation by the state or any of its political 
 26.8   subdivisions.  Nothing contained in sections 473.601 to 473.679, 
 26.9   shall be construed as exempting properties, real or personal, 
 26.10  leased from the metropolitan airports commission to a tenant or 
 26.11  lessee who is a private person, association, or corporation from 
 26.12  assessments or taxes. 
 26.13     Sec. 3.  Minnesota Statutes 1994, section 473.608, 
 26.14  subdivision 6, is amended to read: 
 26.15     Subd. 6.  It may construct and equip new airports, with all 
 26.16  powers of acquisition set out in subdivision 2, pay therefor out 
 26.17  of the funds obtained as hereinafter provided, and hold, 
 26.18  maintain, operate, regulate, police, and dispose of them or any 
 26.19  of them as hereinafter provided.  It may not construct, equip, 
 26.20  or acquire land for a major new airport to replace the existing 
 26.21  Minneapolis-St. Paul International airport, but it may conduct 
 26.22  activities necessary to do long-range planning to make 
 26.23  recommendations to the legislature on the need for new airport 
 26.24  facilities. 
 26.25     Sec. 4.  Minnesota Statutes 1994, section 473.608, 
 26.26  subdivision 16, is amended to read: 
 26.27     Subd. 16.  It may generally carry on the business of 
 26.28  acquiring, establishing, developing, extending, maintaining, 
 26.29  operating, and managing airports, with all powers incident 
 26.30  thereto except it is expressly prohibited from exercising these 
 26.31  powers for the purpose of future construction of a major new 
 26.32  airport. 
 26.33     Sec. 5.  Minnesota Statutes 1994, section 473.608, is 
 26.34  amended by adding a subdivision to read: 
 26.35     Subd. 23.  [PROHIBITION OF USE OF CERTAIN AIRCRAFT.] After 
 26.36  complying with the publication and public comment requirements 
 27.1   of United States Code, title 49, section 47524(b) and other 
 27.2   applicable federal requirements, the corporation shall prohibit 
 27.3   operation at Minneapolis-St. Paul International airport of 
 27.4   aircraft not complying with stage 3 noise levels after December 
 27.5   31, 1999. 
 27.6      Sec. 6.  Minnesota Statutes 1994, section 473.608, is 
 27.7   amended by adding a subdivision to read: 
 27.8      Subd. 24.  [IMPLEMENTATION OF LONG-TERM PLAN.] The 
 27.9   corporation shall implement the Minneapolis-St. Paul 
 27.10  International airport year 2010 long-term comprehensive plan. 
 27.11     Sec. 7.  Minnesota Statutes 1994, section 473.608, is 
 27.12  amended by adding a subdivision to read: 
 27.13     Subd. 25.  [FINAL ENVIRONMENTAL IMPACT STATEMENT.] The 
 27.14  corporation shall not be required to provide environmental or 
 27.15  technical analysis of the new airport alternative in the dual 
 27.16  track planning process final environmental impact statement. 
 27.17     Sec. 8.  Minnesota Statutes 1994, section 473.608, is 
 27.18  amended by adding a subdivision to read: 
 27.19     Subd. 26.  [USE OF RELIEVER AIRPORTS.] The corporation 
 27.20  shall develop and implement a plan to divert the maximum 
 27.21  feasible number of general aviation operations from 
 27.22  Minneapolis-St. Paul International airport to those airports 
 27.23  designated by the federal aviation administration as reliever 
 27.24  airports for Minneapolis-St. Paul International airport. 
 27.25     Sec. 9.  Minnesota Statutes 1994, section 473.608, is 
 27.26  amended by adding a subdivision to read: 
 27.27     Subd. 27.  [PROHIBITION CONCERNING REPLACEMENT PASSENGER 
 27.28  TERMINAL.] The corporation is prohibited from constructing a 
 27.29  replacement passenger terminal on the west side of 
 27.30  Minneapolis-St. Paul International airport without legislative 
 27.31  approval. 
 27.32     Sec. 10.  Minnesota Statutes 1994, section 473.608, is 
 27.33  amended by adding a subdivision to read: 
 27.34     Subd. 28.  [CONSTRUCTION OF A THIRD PARALLEL RUNWAY.] (a) 
 27.35  The corporation must enter into a contract with each affected 
 27.36  city that provides the corporation may not construct a third 
 28.1   parallel runway at the Minneapolis-St. Paul international 
 28.2   airport without the affected city's approval.  The corporation 
 28.3   must enter into the contracts by January 1, 1997. 
 28.4      (b) If a contract with a city as required by this 
 28.5   subdivision is not executed by January 1, 1997, as a result of 
 28.6   the corporation failing to act in good faith, the amount the 
 28.7   corporation must spend for noise mitigation in the affected city 
 28.8   is increased by 100 percent of the amount spent in the most 
 28.9   recent year in which an expenditure was made for noise 
 28.10  mitigation in the affected city. 
 28.11     (c) A contract entered into by a city and the corporation 
 28.12  under this subdivision creates and the contract must provide 
 28.13  third party beneficiary rights on behalf of the affected 
 28.14  property owners in the affected cities.  These third party 
 28.15  beneficiary rights apply only if a state law changes, 
 28.16  supersedes, or invalidates the contract or authorizes or enables 
 28.17  the corporation to construct a third parallel runway 
 28.18  notwithstanding the contract. 
 28.19     (d) An "affected city" is any city that would experience an 
 28.20  increase in the area located within the 60 Ldn noise contour as 
 28.21  a result of operations using the third parallel runway. 
 28.22     Sec. 11.  Minnesota Statutes 1994, section 473.614, is 
 28.23  amended by adding a subdivision to read: 
 28.24     Subd. 2a.  [ENVIRONMENTAL IMPACT REPORT.] Notwithstanding 
 28.25  the provisions of subdivision 2, the commission shall prepare a 
 28.26  report documenting the environmental effects of projects 
 28.27  included in the MSP 2010 long-term comprehensive plan.  
 28.28  Environmental effects of and costs associated with, noise 
 28.29  impacts, noise mitigation measures, and land use compatibility 
 28.30  measures must be evaluated according to alternative assumptions 
 28.31  of 600,000, 650,000, 700,000, and 750,000 aircraft operations at 
 28.32  Minneapolis-St. Paul International airport. 
 28.33     Sec. 12.  Minnesota Statutes 1994, section 473.621, is 
 28.34  amended by adding a subdivision to read: 
 28.35     Subd. 1b.  [ANNUAL REPORT TO LEGISLATURE.] The corporation 
 28.36  shall report to the legislature by February 15 of each year 
 29.1   concerning operations at Minneapolis-St. Paul International 
 29.2   airport.  The report must include the number of aircraft 
 29.3   operations and passenger enplanements at the airport in the 
 29.4   preceding year, current airport capacity in terms of operations 
 29.5   and passenger enplanements, average length of delay statistics, 
 29.6   and technological developments affecting aviation and their 
 29.7   effect on operations and capacity at the airport.  The report 
 29.8   must include information in all the foregoing categories as it 
 29.9   relates to operations at Wayne county metropolitan airport in 
 29.10  Detroit.  The report must compare the number of passenger 
 29.11  enplanements and the number of aircraft operations with the 1993 
 29.12  metropolitan airport commission baseline forecasts of total 
 29.13  passengers and total aircraft operations. 
 29.14     Sec. 13.  Minnesota Statutes 1994, section 473.661, 
 29.15  subdivision 4, is amended to read: 
 29.16     Subd. 4.  [NOISE MITIGATION.] (a) According to the schedule 
 29.17  in paragraph (b), commission funds must be dedicated (1) to 
 29.18  supplement the implementation of corrective land use management 
 29.19  measures approved by the Federal Aviation Administration as part 
 29.20  of the commission's Federal Aviation Regulations, part 150 noise 
 29.21  compatibility program, and (2) for soundproofing and 
 29.22  accompanying air conditioning of residences, schools, and other 
 29.23  public buildings when there is a demonstrated need because of 
 29.24  aircraft noise, regardless of the location of the building to be 
 29.25  soundproofed, or any combination of the three. 
 29.26     (b) The noise mitigation program described in paragraph (a) 
 29.27  shall be funded by the commission from whatever source of funds 
 29.28  according to the following schedule: 
 29.29     In 1993, an amount equal to 20 percent of the passenger 
 29.30  facilities charges revenue amount budgeted by the commission for 
 29.31  1993; 
 29.32     In 1994, an amount equal to 20 percent of the passenger 
 29.33  facilities charges revenue amount budgeted by the commission for 
 29.34  1994; 
 29.35     In 1995, an amount equal to 35 percent of the passenger 
 29.36  facilities charges revenue amount budgeted by the commission for 
 30.1   1995; and 
 30.2      In 1996, an amount equal to 40 percent of the passenger 
 30.3   facilities charges revenue amount budgeted by the commission for 
 30.4   1996. 
 30.5      (c) From 1996 to 2002, the commission shall spend no less 
 30.6   than $185,000,000 from any source of funds for insulation and 
 30.7   accompanying air conditioning of residences, schools, and other 
 30.8   publicly owned buildings where there is a demonstrated need 
 30.9   because of aircraft noise; and property acquisition, limited to 
 30.10  residences, schools, and other publicly owned buildings, within 
 30.11  the noise impacted area.  In addition, the corporation shall 
 30.12  insulate and air condition four schools in Minneapolis and two 
 30.13  schools in Richfield that are located in the 1996 60 Ldn contour.
 30.14     (d) Before the commission constructs a new runway at 
 30.15  Minneapolis-St. Paul International airport, the commission shall 
 30.16  determine the probable levels of noise that will result in 
 30.17  various parts of the metropolitan area from the operation of 
 30.18  aircraft on the new runway and shall develop a program to 
 30.19  mitigate noise in those parts of the metropolitan area that are 
 30.20  located outside the 1996 65 Ldn contour but will be located 
 30.21  within the 65 Ldn contour as established after the new runway is 
 30.22  in operation.  Based upon this determination, the commission 
 30.23  shall reserve in its annual budget, until noise mitigation 
 30.24  measures are completed, an amount of money necessary to 
 30.25  implement this noise mitigation program in the newly impacted 
 30.26  areas. 
 30.27     (e) The commission's capital improvement projects, program, 
 30.28  and plan must reflect the requirements of this section.  As part 
 30.29  of the commission's report to the legislature under section 
 30.30  473.621, subdivision 1a, the commission must provide a 
 30.31  description and the status of each noise mitigation project 
 30.32  implemented under this section. 
 30.33     (d) (f) Within 60 180 days of submitting the commission's 
 30.34  and the metropolitan council's report and recommendations on 
 30.35  major airport planning to the legislature as required by section 
 30.36  473.618, the commission, with the assistance of its sound 
 31.1   abatement advisory committee, shall make a recommendation to the 
 31.2   legislature state advisory council on metropolitan airport 
 31.3   planning regarding proposed mitigation activities and 
 31.4   appropriate funding levels for noise mitigation activities at 
 31.5   Minneapolis-St. Paul International Airport and in the 
 31.6   neighboring communities.  The recommendation shall examine 
 31.7   mitigation measures to the 60 Ldn level.  The state advisory 
 31.8   council on metropolitan airport planning shall review the 
 31.9   recommendation and comment to the legislature within 60 days 
 31.10  after the recommendation is submitted to the council. 
 31.11     Sec. 14.  Laws 1989, chapter 279, section 7, subdivision 6, 
 31.12  is amended to read: 
 31.13     Subd. 6.  [TERMINATION.] The advisory council ceases to 
 31.14  exist when the actions required by section 3, subdivision 3, and 
 31.15  section 4 this article of this chapter of Laws 1996, sections 13 
 31.16  and 15, are completed. 
 31.17     Sec. 15.  [ANALYSIS OF AVIATION SERVICES AND COMMERCIAL 
 31.18  DEVELOPMENT.] 
 31.19     The metropolitan airports commission shall contract with 
 31.20  the University of Minnesota to prepare an aviation service and 
 31.21  facilities analysis.  The commission shall utilize funds from 
 31.22  any available source to pay the University of Minnesota an 
 31.23  agreed amount not to exceed $50,000 for the performance of the 
 31.24  analysis.  The analysis shall include: 
 31.25     (1) a description of various types and levels of aviation 
 31.26  service and an examination of the relationship between aviation 
 31.27  service levels and the level of commercial and industrial 
 31.28  activity in the state; and 
 31.29     (2) an examination of the relationship between available 
 31.30  levels of aviation service and the relocation of commercial and 
 31.31  industrial enterprises to the state. 
 31.32     The commission shall report the results of the analysis to 
 31.33  the state advisory council on metropolitan airport planning no 
 31.34  later than February 10, 1997.  The council shall review the 
 31.35  report and analysis and comment to the legislature within 60 
 31.36  days after the results of the analysis are reported to the 
 32.1   council. 
 32.2      Sec. 16.  [REPEALER.] 
 32.3      Minnesota Statutes 1994, sections 473.1551, subdivision 2; 
 32.4   473.636; and 473.637, are repealed. 
 32.5      Sec. 17.  [EFFECTIVE DATE.] 
 32.6      This article is effective the day following final enactment 
 32.7   and applies to the counties of Anoka, Carver, Dakota, Hennepin, 
 32.8   Ramsey, Scott, and Washington. 
 32.9                              ARTICLE 4
 32.10                    AIRPORT NOISE IMPACT RELIEF 
 32.11     Section 1.  Laws 1995, chapter 255, article 3, section 2, 
 32.12  subdivision 1, is amended to read: 
 32.13     Subdivision 1.  [URBAN REVITALIZATION AND STABILIZATION 
 32.14  ZONES.] (a) By September 1, 1995, the metropolitan council shall 
 32.15  designate one or more urban revitalization and stabilization 
 32.16  zones in the metropolitan area, as defined in section 473.121, 
 32.17  subdivision 2.  The designated zones must contain no more than 
 32.18  1,000 single family homes in total.  In designating urban 
 32.19  revitalization and stabilization zones, the council shall choose 
 32.20  areas that are in transition toward blight and poverty.  The 
 32.21  council shall use indicators that evidence increasing 
 32.22  neighborhood distress such as declining residential property 
 32.23  values, declining resident incomes, declining rates of 
 32.24  owner-occupancy, and other indicators of blight and poverty in 
 32.25  determining which areas are to be urban revitalization and 
 32.26  stabilization zones. 
 32.27     (b) An urban revitalization and stabilization zone is 
 32.28  created in the geographic area composed entirely of parcels that 
 32.29  are in whole or in part located within the 1996 65Ldn contour 
 32.30  surrounding the Minneapolis-St. Paul International Airport, or 
 32.31  within one mile of the boundaries of the 1996 65Ldn contour.  
 32.32  For residents of the zone created under this paragraph, 
 32.33  eligibility for the program as provided in subdivision 2 is 
 32.34  limited to persons buying and occupying a residence in the zone 
 32.35  after June 1, 1996. 
 32.36     Sec. 2.  Laws 1995, chapter 255, article 3, section 2, 
 33.1   subdivision 4, is amended to read: 
 33.2      Subd. 4.  [EXPIRATION.] Initial applications for the urban 
 33.3   homesteading program in the zones designated under subdivision 
 33.4   1, paragraph (a), shall not be accepted after July 1, 1997. 
 33.5      Sec. 3.  [AIRPORT NOISE IMPACT AREAS; HOUSING REPLACEMENT 
 33.6   DISTRICTS; DEFINITIONS.] 
 33.7      Subdivision 1.  [AIRPORT NOISE IMPACT AREA.] "Airport noise 
 33.8   impact area" means a geographic area composed entirely of 
 33.9   parcels that are in whole or in part located within the 1996 
 33.10  60Ldn contour surrounding the Minneapolis-St. Paul International 
 33.11  Airport, or within one mile of the boundaries of the 1996 60Ldn 
 33.12  contour. 
 33.13     Subd. 2.  [AUTHORITY.] For each city that contains an 
 33.14  airport noise impact area, "authority" is the authority as 
 33.15  defined in Minnesota Statutes, section 469.174, subdivision 2, 
 33.16  that is designated by the governing body of the city to be the 
 33.17  authority for purposes of sections 3 to 6. 
 33.18     Subd. 3.  [CAPTURED NET TAX CAPACITY.] "Captured net tax 
 33.19  capacity" means the amount by which the current net tax capacity 
 33.20  in a housing replacement district exceeds the original net tax 
 33.21  capacity, including the value of property normally taxable as 
 33.22  personal property by reason of its location on or over property 
 33.23  owned by a tax-exempt entity.  
 33.24     Subd. 4.  [ORIGINAL NET TAX CAPACITY.] "Original net tax 
 33.25  capacity" means the net tax capacity of all taxable real 
 33.26  property within a housing replacement district as certified by 
 33.27  the commissioner of revenue for the previous assessment year 
 33.28  less the net tax capacity attributable to existing improvements, 
 33.29  provided that the request by the authority for certification of 
 33.30  a new housing replacement district has been made to the county 
 33.31  auditor by June 30.  The original net tax capacity of housing 
 33.32  replacement districts for which requests are filed after June 30 
 33.33  has an original net tax capacity based on the current assessment 
 33.34  year.  In any case, the original net tax capacity must be 
 33.35  determined together with subsequent adjustments as set forth in 
 33.36  Minnesota Statutes, section 469.177, subdivision 1, paragraph 
 34.1   (c).  In determining the original net tax capacity, the net tax 
 34.2   capacity of real property exempt from taxation at the time of 
 34.3   the request shall be zero, except for real property which is tax 
 34.4   exempt by reason of public ownership by the requesting authority 
 34.5   and which has been publicly owned for less than one year prior 
 34.6   to the date of the request for certification, in which event the 
 34.7   net tax capacity of the property shall be the net tax capacity 
 34.8   as most recently determined by the commissioner of revenue. 
 34.9      Subd. 5.  [PARCEL.] "Parcel" means a tract or plat of land 
 34.10  established prior to the certification of the housing 
 34.11  replacement district as a single unit for purposes of assessment.
 34.12     Sec. 4.  [ESTABLISHMENT OF HOUSING REPLACEMENT DISTRICTS.] 
 34.13     Subdivision 1.  [CREATION OF PROJECTS.] (a) An authority 
 34.14  may create a housing replacement project under sections 3 to 6, 
 34.15  as provided in this section. 
 34.16     (b) Parcels included in a district must be located in an 
 34.17  airport noise impact area, and must be either (1) vacant sites, 
 34.18  (2) parcels containing vacant houses, or (3) parcels containing 
 34.19  buildings that are structurally substandard, as defined in 
 34.20  Minnesota Statutes, section 469.174, subdivision 10.  
 34.21     (c) The city in which the authority is located must pay at 
 34.22  least 25 percent of the project costs from its general fund, a 
 34.23  property tax levy, or other unrestricted money, not including 
 34.24  tax increments. 
 34.25     (d) The housing replacement district plan must have as its 
 34.26  sole object the acquisition of parcels for the purpose of 
 34.27  preparing the site to be sold for market rate housing or for 
 34.28  commercial purposes consistent with the cities' plan for that 
 34.29  area.  As used in this section, "market rate housing" means 
 34.30  housing that has a market value that does not exceed 150 percent 
 34.31  of the average market value of single-family housing in that 
 34.32  municipality. 
 34.33     (e) An authority may not create a housing replacement 
 34.34  project under this section, if the city has approved a special 
 34.35  law providing the city with housing replacement district 
 34.36  authority and if the authority has requested certification of a 
 35.1   parcel to be included in the district. 
 35.2      Subd. 2.  [HOUSING REPLACEMENT DISTRICT PLAN.] To establish 
 35.3   a housing replacement district under sections 3 to 6, an 
 35.4   authority shall adopt a housing replacement district plan which 
 35.5   contains: 
 35.6      (1) a statement of the objectives and a description of the 
 35.7   housing replacement projects proposed by the authority for the 
 35.8   housing replacement district; 
 35.9      (2) a statement of the housing replacement district plan, 
 35.10  demonstrating the coordination of that plan with the city's 
 35.11  comprehensive plan; 
 35.12     (3) estimates of the following: 
 35.13     (i) cost of the program, including administrative expenses; 
 35.14     (ii) sources of revenue to finance or otherwise pay public 
 35.15  costs; 
 35.16     (iii) the most recent net tax capacity of taxable real 
 35.17  property within the housing replacement district; and 
 35.18     (iv) the estimated captured net tax capacity of the housing 
 35.19  replacement district at completion; 
 35.20     (4) statements of the authority's alternate estimates of 
 35.21  the impact of the housing replacement district on the net tax 
 35.22  capacities of all taxing jurisdictions in which the housing 
 35.23  replacement district is located in whole or in part.  For 
 35.24  purposes of one statement, the authority shall assume that the 
 35.25  estimated captured net tax capacity would be available to the 
 35.26  taxing jurisdictions without creation of the housing replacement 
 35.27  district, and for purposes of the second statement, the 
 35.28  authority shall assume that none of the estimated captured net 
 35.29  tax capacity would be available to the taxing jurisdictions 
 35.30  without creation of the housing replacement district; and 
 35.31     (5) identification of all parcels to be included in the 
 35.32  district. 
 35.33     Subd. 3.  [PROCEDURE.] The provisions of Minnesota 
 35.34  Statutes, section 469.175, subdivisions 3, 4, 5, and 6, apply to 
 35.35  the establishment and operation of the housing replacement 
 35.36  districts created under sections 3 to 6, except as follows: 
 36.1      (1) creation of a district within a municipality is subject 
 36.2   to the approval of the metropolitan council in addition to other 
 36.3   approvals required by law; and 
 36.4      (2) the determination specified in Minnesota Statutes, 
 36.5   section 469.175, subdivision 3, clause (1), is not required. 
 36.6      Sec. 5.  [LIMITATIONS.] 
 36.7      Subdivision 1.  [DURATION LIMITS.] No tax increment may be 
 36.8   paid to the authority on each parcel in a housing replacement 
 36.9   district after 15 years from date of receipt by the county of 
 36.10  the first tax increment from that parcel. 
 36.11     Subd. 2.  [LIMITATION ON USE OF TAX INCREMENTS.] All 
 36.12  revenues derived from tax increments must be used in accordance 
 36.13  with the housing replacement district plan.  The revenues must 
 36.14  be used solely to pay the costs of site acquisition, relocation, 
 36.15  demolition of existing structures, site preparation, and 
 36.16  pollution abatement on parcels identified in the housing 
 36.17  replacement district plan, as well as public improvements and 
 36.18  administrative costs directly related to those parcels. 
 36.19     Sec. 6.  [APPLICATION OF OTHER LAWS.] 
 36.20     Subdivision 1.  [COMPUTATION OF TAX INCREMENT.] The 
 36.21  provisions of Minnesota Statutes, section 469.177, subdivisions 
 36.22  1a, and 5 to 10, apply to the computation of tax increment for 
 36.23  the housing replacement districts created under sections 3 to 6. 
 36.24     Subd. 2.  [OTHER PROVISIONS.] References in Minnesota 
 36.25  Statutes to tax increment financing districts created and tax 
 36.26  increments generated under Minnesota Statutes, sections 469.174 
 36.27  to 469.179, other than references in Minnesota Statutes, section 
 36.28  273.1399, include housing replacement districts and tax 
 36.29  increments subject to sections 3 to 6, provided that Minnesota 
 36.30  Statutes, sections 469.174 to 469.179, apply only to the extent 
 36.31  specified in sections 1 to 4. 
 36.32     Subd. 3.  [MINNEAPOLIS SPECIAL LAW.] Laws 1980, chapter 
 36.33  595, section 2, subdivision 2, does not apply to a district 
 36.34  created under sections 3 to 6. 
 36.35     Sec. 7.  [EFFECTIVE DATE.] 
 36.36     Sections 1 and 2 are effective for taxable years beginning 
 37.1   after December 31, 1997.  Sections 3 to 6 are effective July 1, 
 37.2   1997.