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; requiring a 
  1.10            transfer between certain accounts of the council; 
  1.11            amending Minnesota Statutes 1994, sections 462.357, 
  1.12            subdivision 2; 473.167, subdivisions 2a and 4; 
  1.13            Minnesota Statutes 1995 Supplement, sections 469.1782, 
  1.14            subdivision 1; 473.167, subdivisions 2 and 3; 473.252; 
  1.15            and 473.704, subdivision 18; Laws 1989, chapter 279, 
  1.16            section 7, subdivision 6; repealing Minnesota Statutes 
  1.17            1994, section 473.167, subdivision 5; Minnesota 
  1.18            Statutes 1995 Supplement, section 473.167, subdivision 
  1.19            3a. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 1994, section 462.357, 
  1.22  subdivision 2, is amended to read: 
  1.23     Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
  1.24  adoption of a land use plan for the municipality, the planning 
  1.25  agency, for the purpose of carrying out the policies and goals 
  1.26  of the land use plan, may prepare a proposed zoning ordinance 
  1.27  and submit it to the governing body with its recommendations for 
  1.28  adoption.  Subject to the requirements of subdivisions 3, 4 and 
  1.29  5, the governing body may adopt and amend a zoning ordinance by 
  1.30  a two-thirds vote of all its members.  Except for local 
  1.31  governments in the metropolitan area as provided in section 
  1.32  473.858, subdivision 1, if the comprehensive municipal plan is 
  2.1   in conflict with the zoning ordinance, the zoning ordinance 
  2.2   supersedes the plan. 
  2.3      Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.4   469.1782, subdivision 1, is amended to read: 
  2.5      Subdivision 1.  [ELECTION.] (a) If a special law allows an 
  2.6   extension of the duration limit of an existing tax increment 
  2.7   financing district under section 469.176 or allows establishment 
  2.8   of a new district with a longer duration limit than permitted by 
  2.9   general law, the municipality must elect, by resolution, that 
  2.10  the district is subject to either: 
  2.11     (1) the adjustment to adjusted net tax capacity for the 
  2.12  school district under section 124.2131, subdivision 3a; or 
  2.13     (2) the reduction in state tax increment financing aid 
  2.14  under section 273.1399, subdivision 8.  
  2.15  This election is irrevocable, except for districts for which the 
  2.16  municipality receives a loan or grant under section 473.252 or 
  2.17  473.253 for use within the district, and must be made before the 
  2.18  extension is submitted by the municipality to the school 
  2.19  district for approval under subdivision 2.  If the municipality 
  2.20  fails to make an election before submitting the matter to the 
  2.21  school district, the municipality is deemed to have elected 
  2.22  clause (2).  
  2.23     (b) If the municipality receives a loan or grant under 
  2.24  section 473.252 or 473.253 for use within a district subject to 
  2.25  the provisions of this section, the municipality may amend the 
  2.26  election resolution to subject the district to the provisions of 
  2.27  section 273.1399, subdivision 6, paragraph (d).  The official 
  2.28  action to modify the resolution must be held within 45 days of 
  2.29  the award of the loan or grant.  The municipality must notify 
  2.30  the school district and county in which the district is located 
  2.31  in writing at least ten days prior to the meeting to adopt the 
  2.32  modified resolution.  
  2.33     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  2.34  473.167, subdivision 2, is amended to read: 
  2.35     Subd. 2.  [LOANS FOR ACQUISITION.] (a) The council may make 
  2.36  loans to counties, towns, and statutory and home rule charter 
  3.1   cities within the metropolitan area for the purchase of property 
  3.2   within the right-of-way of a state trunk highway shown on an 
  3.3   official map adopted pursuant to section 394.361 or 462.359 or 
  3.4   for the purchase of property within the proposed right-of-way of 
  3.5   a principal or intermediate arterial highway designated by the 
  3.6   council as a part of the metropolitan highway system plan and 
  3.7   approved by the council pursuant to subdivision 1.  The loans 
  3.8   shall be made by the council, from the fund established pursuant 
  3.9   to this subdivision, for purchases approved by the council.  The 
  3.10  loans shall bear no interest. 
  3.11     (b) The council shall make loans only: 
  3.12     (1) to accelerate the acquisition of primarily undeveloped 
  3.13  property when there is a reasonable probability that the 
  3.14  property will increase in value before highway construction, and 
  3.15  to update an expired environmental impact statement on a project 
  3.16  for which the right-of-way is being purchased; 
  3.17     (2) to avert the imminent conversion or the granting of 
  3.18  approvals which would allow the conversion of property to uses 
  3.19  which would jeopardize its availability for highway 
  3.20  construction; or 
  3.21     (3) to advance planning and environmental activities on 
  3.22  highest priority major metropolitan river crossing projects, 
  3.23  under the transportation development guide chapter/policy plan; 
  3.24  or 
  3.25     (4) to take advantage of open market opportunities when 
  3.26  properties become available for sale, provided all parties 
  3.27  involved are agreeable to the sale and funds are available.  
  3.28     (c) The council shall not make loans for the purchase of 
  3.29  property at a price which exceeds the fair market value of the 
  3.30  property or which includes the costs of relocating or moving 
  3.31  persons or property.  The eminent domain process may be used to 
  3.32  settle differences of opinion as to fair market value, provided 
  3.33  all parties agree to the process. 
  3.34     (d) A private property owner may elect to receive the 
  3.35  purchase price either in a lump sum or in not more than four 
  3.36  annual installments without interest on the deferred 
  4.1   installments.  If the purchase agreement provides for 
  4.2   installment payments, the council shall make the loan in 
  4.3   installments corresponding to those in the purchase agreement.  
  4.4   The recipient of an acquisition loan shall convey the property 
  4.5   for the construction of the highway at the same price which the 
  4.6   recipient paid for the property.  The price may include the 
  4.7   costs of preparing environmental documents that were required 
  4.8   for the acquisition and that were paid for with money that the 
  4.9   recipient received from the loan fund.  Upon notification by the 
  4.10  council that the plan to construct the highway has been 
  4.11  abandoned or the anticipated location of the highway changed, 
  4.12  the recipient shall sell the property at market value in 
  4.13  accordance with the procedures required for the disposition of 
  4.14  the property.  All rents and other money received because of the 
  4.15  recipient's ownership of the property and all proceeds from the 
  4.16  conveyance or sale of the property shall be paid to the 
  4.17  council.  If a recipient is not permitted to include in the 
  4.18  conveyance price the cost of preparing environmental documents 
  4.19  that were required for the acquisition, then the recipient is 
  4.20  not required to repay the council an amount equal to 40 percent 
  4.21  of the money received from the loan fund and spent in preparing 
  4.22  the environmental documents.  
  4.23     (e) The proceeds of the tax authorized by subdivision 3 and 
  4.24  distributed to the right-of-way acquisition loan fund pursuant 
  4.25  to subdivision 3a, paragraph (a), all money paid to the council 
  4.26  by recipients of loans, and all interest on the proceeds and 
  4.27  payments shall be maintained as a separate fund.  For 
  4.28  administration of the loan program, the council may expend from 
  4.29  the fund each year an amount no greater than three percent of 
  4.30  the amount of the proceeds distributed to the right-of-way 
  4.31  acquisition loan fund pursuant to subdivision 3a, paragraph (a), 
  4.32  for that year. 
  4.33     Sec. 4.  Minnesota Statutes 1994, section 473.167, 
  4.34  subdivision 2a, is amended to read: 
  4.35     Subd. 2a.  [HARDSHIP ACQUISITION AND RELOCATION.] (a) The 
  4.36  council may make hardship loans to acquiring authorities within 
  5.1   the metropolitan area to purchase homestead property located in 
  5.2   a proposed state trunk highway right-of-way or project, and to 
  5.3   provide relocation assistance.  Acquiring authorities are 
  5.4   authorized to accept the loans and to acquire the property. 
  5.5   Except as provided in this subdivision, the loans shall be made 
  5.6   as provided in subdivision 2.  Loans shall be in the amount of 
  5.7   the appraised fair market value of the homestead property plus 
  5.8   relocation costs and less salvage value.  Before construction of 
  5.9   the highway begins, the acquiring authority shall convey the 
  5.10  property to the commissioner of transportation at the same price 
  5.11  it paid, plus relocation costs and less its salvage value. 
  5.12  Acquisition and assistance under this subdivision must conform 
  5.13  to sections 117.50 to 117.56.  
  5.14     (b) The council may make hardship loans only when: 
  5.15     (1) the owner of affected homestead property requests 
  5.16  acquisition and relocation assistance from an acquiring 
  5.17  authority; 
  5.18     (2) federal or state financial participation is not 
  5.19  available; 
  5.20     (3) the owner is unable to sell the homestead property at 
  5.21  its appraised market value because the property is located in a 
  5.22  proposed state trunk highway right-of-way or project as 
  5.23  indicated on an official map or plat adopted under section 
  5.24  160.085, 394.361, or 462.359; 
  5.25     (4) the appraisal of council agrees to and approves the 
  5.26  fair market value of the homestead property has been approved by 
  5.27  the council.  The council's, which approval shall not be 
  5.28  unreasonably withheld; and 
  5.29     (5) the owner of the homestead property is burdened by 
  5.30  circumstances that constitute a hardship, such as catastrophic 
  5.31  medical expenses; a transfer of the homestead owner by the 
  5.32  owner's employer to a distant site of employment; or inability 
  5.33  of the owner to maintain the property due to physical or mental 
  5.34  disability or the permanent departure of children from the 
  5.35  homestead.  
  5.36     (c) For purposes of this subdivision, the following terms 
  6.1   have the meanings given them. 
  6.2      (1) "Acquiring authority" means counties, towns, and 
  6.3   statutory and home rule charter cities in the metropolitan area. 
  6.4      (2) "Homestead property" means a single-family dwelling 
  6.5   occupied by the owner, and the surrounding land, not exceeding a 
  6.6   total of ten acres. 
  6.7      (3) "Salvage value" means the probable sale price of the 
  6.8   dwelling and other property that is severable from the land if 
  6.9   offered for sale on the condition that it be removed from the 
  6.10  land at the buyer's expense, allowing a reasonable time to find 
  6.11  a buyer with knowledge of the possible uses of the property, 
  6.12  including separate use of serviceable components and scrap when 
  6.13  there is no other reasonable prospect of sale. 
  6.14     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
  6.15  473.167, subdivision 3, is amended to read: 
  6.16     Subd. 3.  [TAX.] The council may levy a tax on all taxable 
  6.17  property in the metropolitan area, as defined in section 
  6.18  473.121, to provide funds for loans made pursuant to 
  6.19  subdivisions 2 and 2a and for the tax base revitalization 
  6.20  account in the metropolitan livable communities fund, 
  6.21  established under section 473.251.  This tax for the 
  6.22  right-of-way acquisition loan fund and the tax base 
  6.23  revitalization account shall be certified by the council, 
  6.24  levied, and collected in the manner provided by section 473.13.  
  6.25  The tax shall be in addition to that authorized by section 
  6.26  473.249 and any other law and shall not affect the amount or 
  6.27  rate of taxes which may be levied by the council or any 
  6.28  metropolitan agency or local governmental unit.  The amount of 
  6.29  the levy shall be as determined and certified by the council., 
  6.30  provided that the property tax levied by the metropolitan 
  6.31  council for the right-of-way acquisition loan fund and the tax 
  6.32  base revitalization account shall not exceed the following 
  6.33  amount for the years specified: 
  6.34     (a) for taxes payable in 1988, the product of 5/100 of one 
  6.35  mill multiplied by the total assessed valuation of all taxable 
  6.36  property located within the metropolitan area as adjusted by the 
  7.1   provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
  7.2   subdivision 7a; and 275.49; 
  7.3      (b) for taxes payable in 1989, except as provided in 
  7.4   section 473.249, subdivision 3, the product of (1) the 
  7.5   metropolitan council's property tax levy limitation for the 
  7.6   right-of-way acquisition loan fund for the taxes payable year 
  7.7   1988 determined under clause (a) multiplied by (2) an index for 
  7.8   market valuation changes equal to the assessment year 1988 total 
  7.9   market valuation of all taxable property located within the 
  7.10  metropolitan area divided by the assessment year 1987 total 
  7.11  market valuation of all taxable property located within the 
  7.12  metropolitan area; 
  7.13     (c) for taxes payable in 1990, an amount not to exceed 
  7.14  $2,700,000; and 
  7.15     (d) for taxes payable in 1991 and subsequent years, the 
  7.16  product of (1) the metropolitan council's property tax levy 
  7.17  limitation for the right-of-way acquisition loan fund under this 
  7.18  subdivision for the taxes payable in 1988 determined under 
  7.19  clause (a) 1996 multiplied by (2) an index for market valuation 
  7.20  changes equal to the total market valuation of all taxable 
  7.21  property located within the metropolitan area for the current 
  7.22  taxes payable year divided by the total market valuation of all 
  7.23  taxable property located within the metropolitan area for taxes 
  7.24  payable in 1988 1995. 
  7.25     For the purpose of determining the metropolitan council's 
  7.26  property tax levy limitation for the right-of-way acquisition 
  7.27  loan fund and tax base revitalization account in the 
  7.28  metropolitan livable communities fund, under section 473.251, 
  7.29  for the taxes payable year 1988 and subsequent years under this 
  7.30  subdivision, "total market valuation" means the total market 
  7.31  valuation of all taxable property within the metropolitan area 
  7.32  without valuation adjustments for fiscal disparities (chapter 
  7.33  473F), tax increment financing (sections 469.174 to 469.179), 
  7.34  and high voltage transmission lines (section 273.425). 
  7.35     Sec. 6.  Minnesota Statutes 1994, section 473.167, 
  7.36  subdivision 4, is amended to read: 
  8.1      Subd. 4.  [STATE REVIEW.] The commissioner of revenue shall 
  8.2   certify the council's levy limitation under this section to the 
  8.3   council by August 1 of the levy year.  The council must certify 
  8.4   its proposed property tax levy to the commissioner of revenue by 
  8.5   September 1 of the levy year.  The commissioner of revenue shall 
  8.6   annually determine whether the property tax for the right-of-way 
  8.7   acquisition loan fund tax base revitalization account certified 
  8.8   by the metropolitan council for levy following the adoption of 
  8.9   its proposed budget is within the levy limitation imposed by 
  8.10  this section.  The determination must be completed prior to 
  8.11  September 10 of each year.  If current information regarding 
  8.12  market valuation in any county is not transmitted to the 
  8.13  commissioner in a timely manner, the commissioner may estimate 
  8.14  the current market valuation within that county for purposes of 
  8.15  making the calculation. 
  8.16     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
  8.17  473.252, is amended to read: 
  8.18     473.252 [TAX BASE REVITALIZATION ACCOUNT.] 
  8.19     Subdivision 1.  [DEFINITION.] For the purposes of this 
  8.20  section, "municipality" means a statutory or home rule charter 
  8.21  city or town participating in the local housing incentives 
  8.22  program under section 473.254, or a county in the metropolitan 
  8.23  area.  
  8.24     Subd. 1a.  [DEVELOPMENT AUTHORITY.] "Development authority" 
  8.25  means a statutory or home rule charter city, housing and 
  8.26  redevelopment authority, economic development authority, and a 
  8.27  port authority. 
  8.28     Subd. 2.  [SOURCES OF FUNDS.] The council shall credit to 
  8.29  the tax base revitalization account within the fund the amount, 
  8.30  if any, provided for under section 473.167, subdivision 3a, 
  8.31  paragraph (b) 3, and the amount, if any, distributed to the 
  8.32  council under section 473F.08, subdivision 3b. 
  8.33     Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
  8.34  the funds in the account to make grants to municipalities or 
  8.35  development authorities for the cleanup of polluted land in the 
  8.36  metropolitan area.  A grant to a metropolitan county or a 
  9.1   development authority must be used for a project in a 
  9.2   participating municipality.  The council shall prescribe and 
  9.3   provide the grant application form to municipalities.  The 
  9.4   council must consider the probability of funding from other 
  9.5   sources when making grants under this section. 
  9.6      (b)(1) The legislature expects that applications for grants 
  9.7   will exceed the available funds and the council will be able to 
  9.8   provide grants to only some of the applicant municipalities.  If 
  9.9   applications for grants for qualified sites exceed the available 
  9.10  funds, the council shall make grants that provide the highest 
  9.11  return in public benefits for the public costs incurred, that 
  9.12  encourage commercial and industrial development that will lead 
  9.13  to the preservation or growth of living-wage jobs and that 
  9.14  enhance the tax base of the recipient municipality. 
  9.15     (2) In making grants, the council shall establish regular 
  9.16  application deadlines in which grants will be awarded from the 
  9.17  available money in the account.  If the council provides for 
  9.18  application cycles of less than six-month intervals, the council 
  9.19  must reserve at least 40 percent of the receipts of the account 
  9.20  for a year for application deadlines that occur in the second 
  9.21  half of the year.  If the applications for grants exceed the 
  9.22  available funds for an application cycle, no more than one-half 
  9.23  of the funds may be granted to projects in a statutory or home 
  9.24  rule charter city and no more than three-quarters of the funds 
  9.25  may be granted to projects located in cities of the first class. 
  9.26     (c) A municipality may use the grant to provide a portion 
  9.27  of the local match requirement for project costs that qualify 
  9.28  for a grant under sections 116J.551 to 116J.557. 
  9.29     Subd. 4.  [TAX.] The council may levy a tax on all taxable 
  9.30  property in the metropolitan area, as defined in section 
  9.31  473.121, to provide funds for the tax base revitalization 
  9.32  account in the metropolitan livable communities fund.  This tax 
  9.33  for the tax base revitalization account shall be certified by 
  9.34  the council, levied, and collected in the manner provided by 
  9.35  section 473.13.  The tax shall be in addition to that authorized 
  9.36  by section 473.249 and any other law and shall not affect the 
 10.1   amount or rate of taxes which may be levied by the council or 
 10.2   any metropolitan agency or local governmental unit. 
 10.3      The amount of the levy shall be as determined and certified 
 10.4   by the council, provided that the tax levied by the metropolitan 
 10.5   council for the tax base revitalization account shall not exceed 
 10.6   the product of (1) the metropolitan council's levy for the tax 
 10.7   base revitalization account under section 473.167, subdivision 
 10.8   3, for taxes payable in 1996 multiplied by (2) an index for 
 10.9   market valuation changes equal to the total market valuation of 
 10.10  all taxable property located within the metropolitan area for 
 10.11  the current taxes payable year divided by the total market 
 10.12  valuation of all taxable property located within the 
 10.13  metropolitan area for taxes payable in 1996. 
 10.14     For the purpose of determining the metropolitan council's 
 10.15  property tax levy limitation for the tax base revitalization 
 10.16  account, "total market valuation" means the total market 
 10.17  valuation of all taxable property within the metropolitan area 
 10.18  without valuation adjustments for fiscal disparities (chapter 
 10.19  473F), tax increment financing (sections 469.174 to 469.179), 
 10.20  and high voltage transmission lines (section 273.425). 
 10.21     Subd. 5.  [STATE REVIEW.] The commissioner of revenue shall 
 10.22  certify the council's levy limitation under this section to the 
 10.23  council by August 1 of the levy year.  The council must certify 
 10.24  its proposed property tax levy to the commissioner of revenue by 
 10.25  September 1 of the levy year.  The commissioner of revenue shall 
 10.26  annually determine whether the property tax for the tax base 
 10.27  revitalization account certified by the metropolitan council for 
 10.28  levy following the adoption of its proposed budget is within the 
 10.29  levy limitation imposed by this section.  The determination must 
 10.30  be completed prior to September 10 of each year.  If current 
 10.31  information regarding market valuation in any county is not 
 10.32  transmitted to the commissioner in a timely manner, the 
 10.33  commissioner may estimate the current market valuation within 
 10.34  that county for purposes of making the calculation. 
 10.35     Sec. 8.  Minnesota Statutes 1995 Supplement, section 
 10.36  473.704, subdivision 18, is amended to read: 
 11.1      Subd. 18.  The commission may establish a research program 
 11.2   to evaluate the effects of control programs on other fauna.  The 
 11.3   purpose of the program is to identify the types and magnitude of 
 11.4   the adverse effects of the control program on fish and wildlife 
 11.5   and associated food chain invertebrates.  The commission may 
 11.6   conduct research through contracts with qualified outside 
 11.7   researchers.  The commission may finance the research program 
 11.8   each year at a level up to 2.5 percent of its annual budget, 
 11.9   until December 31, 1995. 
 11.10     Sec. 9.  Laws 1989, chapter 279, section 7, subdivision 6, 
 11.11  is amended to read: 
 11.12     Subd. 6.  [TERMINATION.] The advisory council ceases to 
 11.13  exist when the actions required by section 3, subdivision 3, and 
 11.14  section 4 subdivision 2 are completed. 
 11.15     Sec. 10.  [ISSUANCE OF BONDS OR NOTES FOR ACQUISITION OF 
 11.16  PROPERTY.] 
 11.17     Subdivision 1.  [BONDS; LOANS.] The council may borrow 
 11.18  money or by resolution authorize the issuance of general 
 11.19  obligation bonds or notes for the acquisition of any real 
 11.20  property which the council determines is necessary for any 
 11.21  proposed expansion of the Minneapolis-St. Paul International 
 11.22  Airport. 
 11.23     Subd. 2.  [PROCEDURE.] The bonds or notes shall be sold, 
 11.24  issued, and secured in the manner provided in Minnesota 
 11.25  Statutes, chapter 475, and the council shall have the same 
 11.26  powers and duties as a municipality issuing bonds under that 
 11.27  law, except that no election shall be required and the net debt 
 11.28  limitations in Minnesota Statutes, chapter 475, shall not apply 
 11.29  to such bonds or notes.  The obligations are not a debt of the 
 11.30  state or any other municipality or political subdivision within 
 11.31  the meaning of any debt limitation or requirement pertaining to 
 11.32  those entities.  The bonds or notes may be sold at any price and 
 11.33  at a public or private sale as determined by the council.  
 11.34     Subd. 3.  [COST SHARING; DISPOSITION OF PROPERTY.] The 
 11.35  council may enter into agreements with the metropolitan airports 
 11.36  commission, any municipality in the metropolitan area, and any 
 12.1   corporation, public or private, to share the costs of acquiring 
 12.2   any real property which the council determines is necessary for 
 12.3   any proposed expansion of the Minneapolis-St. Paul International 
 12.4   Airport.  If the council acquires real property pursuant to 
 12.5   subdivision 2 and Minnesota Statutes, section 473.129, 
 12.6   subdivision 7, which it subsequently determines is not needed 
 12.7   for the expansion of the airport, the real property shall be 
 12.8   sold in accordance with the council's procedures and the 
 12.9   proceeds from the sale of the real property shall be used for 
 12.10  debt service or retirement of any bonds or notes issued pursuant 
 12.11  to subdivision 2.  
 12.12     Sec. 11.  [BLOOMINGTON; TAX INCREMENT.] 
 12.13     Subdivision 1.  [PUBLIC PURPOSE.] In 1985, the port 
 12.14  authority of the city of Bloomington established a redevelopment 
 12.15  tax increment financing district designated as tax increment 
 12.16  financing district No. 1-G with boundaries consisting of a 31.9 
 12.17  acre parcel known as the Kelly property located at the northeast 
 12.18  quadrant of 24th Avenue and East Old Shakopee Road in the city 
 12.19  of Bloomington with the intention of financing certain 
 12.20  redevelopment costs, including selected public improvements 
 12.21  within the airport south industrial development district.  The 
 12.22  Kelly property was conveyed to the Mall of America Company by 
 12.23  the port authority of the city of Bloomington, pursuant to the 
 12.24  restated contract dated May 31, 1988, by and between the city of 
 12.25  Bloomington, port authority of the city of Bloomington, and Mall 
 12.26  of America Company, subject to the condition that the Mall of 
 12.27  America Company commence construction of a subsequent phase of 
 12.28  the Mall of America project on the site no later than 2002.  If 
 12.29  the Mall of America Company fails to commence construction of a 
 12.30  subsequent phase of development on the Kelly property by 2002, 
 12.31  ownership of the property reverts to the port authority of the 
 12.32  city of Bloomington.  The Minneapolis-St. Paul International 
 12.33  Airport long-term comprehensive plan proposes construction of a 
 12.34  north-south runway to guaranty future operation of the airport 
 12.35  in a safe, efficient manner.  Public acquisition of the Kelly 
 12.36  property by the metropolitan airports commission will be 
 13.1   required to facilitate construction of the north-south runway.  
 13.2      Subd. 2.  [AUTHORIZATION.] The port authority of the city 
 13.3   of Bloomington may amend the redevelopment tax increment 
 13.4   financing district consisting of the Kelly property so that it 
 13.5   shall, instead, consist of the met center property as identified 
 13.6   in Minnesota Statutes, section 473.551, subdivision 12, upon 
 13.7   satisfaction of the following conditions precedent:  
 13.8      (1) sale of the met center property from a metropolitan 
 13.9   agency to the Mall of America Company or an entity comprising at 
 13.10  least one partner of the Mall of America Company or an affiliate 
 13.11  of such partner; 
 13.12     (2) approval by the city of Bloomington, port authority of 
 13.13  the city of Bloomington, and Mall of America Company of 
 13.14  amendments to the restated contract dated May 31, 1988, which 
 13.15  transfer development rights and contract obligations from the 
 13.16  Kelly property to the met center property; 
 13.17     (3) approval by the Minnesota environmental quality board 
 13.18  of an environmental impact statement for the met center property 
 13.19  and approval by the Minnesota pollution control agency of an 
 13.20  indirect source permit for the met center property; 
 13.21     (4) approval by the city of Bloomington and port authority 
 13.22  of the city of Bloomington of a final development plan for the 
 13.23  met center property; 
 13.24     (5) an agreement by the owner-developer of the met center 
 13.25  property, in a form satisfactory to the city of Bloomington and 
 13.26  port authority of the city of Bloomington, to dedicate to the 
 13.27  city of Bloomington land for rights-of-way and other public 
 13.28  improvements required for a subsequent phase of the Mall of 
 13.29  America project on the met center property; 
 13.30     (6) the metropolitan airports commission and the Mall of 
 13.31  America Company have either: 
 13.32     (i) entered into a purchase agreement for the sale of the 
 13.33  Kelly property; or 
 13.34     (ii) agreed, in writing, on development restrictions for 
 13.35  use of the Kelly property which: 
 13.36     (A) limit the cost of acquisition or purchase of 
 14.1   development restrictions by the metropolitan airports commission 
 14.2   to the per acre cost of the met center property minus the value 
 14.3   of any development rights which the Mall of America Company 
 14.4   retains on the property; and 
 14.5      (B) permit the metropolitan airports commission to delay 
 14.6   acquisition or purchase of development rights on the Kelly 
 14.7   property until it has obtained all necessary state and federal 
 14.8   environmental approvals for the proposed north-south runway and 
 14.9   has authorized construction of the runway; and 
 14.10     (7) an agreement by the Mall of America Company not to sue 
 14.11  or claim any damages against either the city of Bloomington or 
 14.12  port authority of the city of Bloomington arising out of 
 14.13  rezoning of the Kelly property pursuant to Minnesota Statutes, 
 14.14  sections 360.061 to 360.074, or an amendment to the 
 14.15  comprehensive plan of the city of Bloomington relating to the 
 14.16  Kelly property.  
 14.17  The requirements of Minnesota Statutes, section 469.175, 
 14.18  subdivision 4, do not apply to modification of the plan to 
 14.19  provide for the substitution of legal descriptions authorized 
 14.20  hereby.  The original net tax capacity of the district shall be 
 14.21  recertified in accordance with Minnesota Statutes, section 
 14.22  469.177, subdivision 1, upon amendment of the geographic 
 14.23  boundaries of the district.  The district shall continue in 
 14.24  existence from its original date of creation and the amendment 
 14.25  of the geographic boundaries of the district and recertification 
 14.26  of original net tax capacity of the district shall not cause the 
 14.27  application to the district of any provisions of law which would 
 14.28  not otherwise be applicable to the district. 
 14.29     Subd. 3.  [SPECIAL RULES.] (a) Tax increment may not be 
 14.30  captured by the port authority from the tax increment financing 
 14.31  district on the met center property after December 31, 2018, 
 14.32  which is the date of termination of the tax increment financing 
 14.33  district for the Kelly property. 
 14.34     (b) The provisions of Minnesota Statutes, section 273.1399, 
 14.35  do not apply to the tax increment financing district on the met 
 14.36  center property. 
 15.1      (c) The governing body of the city of Bloomington must 
 15.2   elect the method of computation of tax increment specified in 
 15.3   Minnesota Statutes, section 469.177, subdivision 3, paragraph 
 15.4   (b), in the tax increment financing district on the met center 
 15.5   property. 
 15.6      (d) Tax increments, assessments, and other revenues derived 
 15.7   from the tax increment district on the met center property and 
 15.8   any accumulated tax increments from the tax increment financing 
 15.9   district on the Kelly property may be used to finance any 
 15.10  expenditure in the airport south industrial development district 
 15.11  authorized by Minnesota Statutes, section 469.176, subdivision 
 15.12  4, and identified in the tax increment plan for the tax 
 15.13  increment financing district and the development plan for the 
 15.14  airport south industrial development district. 
 15.15     Subd. 4.  [ACQUISITION OF PROPERTY.] Notwithstanding any 
 15.16  law to the contrary, the metropolitan airports commission is 
 15.17  authorized to acquire or purchase the Kelly property consistent 
 15.18  with the public purpose set forth in this law.  This may be 
 15.19  accomplished by an exchange of land, purchase of development 
 15.20  rights, acquisition of easements, or other method to be 
 15.21  negotiated with the landowner or by outright purchase or 
 15.22  exercise of eminent domain, if necessary. 
 15.23     Subd. 5.  [LIMITATION ON USE OF TAX INCREMENT.] If the port 
 15.24  authority of the city of Bloomington amends the redevelopment 
 15.25  tax increment financing district from the Kelly property to the 
 15.26  met center property, the owner of the met center property shall 
 15.27  be bound by the limitations on public reimbursement for 
 15.28  qualified public improvements as set forth in section 9.2(05) of 
 15.29  the restated contract dated May 31, 1988, by and between the 
 15.30  city of Bloomington, port authority of the city of Bloomington, 
 15.31  and Mall of America Company. 
 15.32     Sec. 12.  [TRANSFER.] 
 15.33     Subdivision 1.  Notwithstanding Minnesota Statutes, section 
 15.34  473.167, the council may transfer a portion of the proceeds in 
 15.35  the right-of-way acquisition loan fund to the planning 
 15.36  assistance grant and loan program provided in Minnesota 
 16.1   Statutes, section 473.867.  By 2008, the council shall repay any 
 16.2   amount transferred from the right-of-way acquisition loan fund 
 16.3   using the proceeds of the tax authorized in Minnesota Statutes, 
 16.4   section 473.249.  
 16.5      Subd. 2.  In 1997, the council must use $200,000 of any 
 16.6   amount transferred in subdivision 1 to make grants of not more 
 16.7   than $20,000 each to municipalities for technical assistance to 
 16.8   prepare a growth management strategy as part of the 
 16.9   municipality's comprehensive plan.  A growth management strategy 
 16.10  may include principles such as:  preservation of undeveloped 
 16.11  open spaces for agricultural production, recreational use, and 
 16.12  scenic enjoyment; creation of cohesive neighborhoods to 
 16.13  establish local identity and community interaction; physical 
 16.14  integration of natural open spaces, neighborhoods, and other 
 16.15  districts in a manner that creates the highest and best value of 
 16.16  all land in the community; and the establishment of a phasing 
 16.17  plan to guide reasonable, incremental development of the 
 16.18  community.  Municipalities may apply for the grants in 
 16.19  partnership with other municipalities or with a county.  For the 
 16.20  purposes of this subdivision "municipality" means any city or 
 16.21  town in the metropolitan area as defined in Minnesota Statutes, 
 16.22  section 473.121. 
 16.23     Sec. 13.  [ACQUISITION OF THE MET CENTER PROPERTY.] 
 16.24     Notwithstanding anything to the contrary in sections 10 to 
 16.25  14, the authority granted to the metropolitan council to acquire 
 16.26  real property does not authorize acquisition of the met center 
 16.27  property as defined in Minnesota Statutes, section 473.551, 
 16.28  subdivision 12, by eminent domain. 
 16.29     Sec. 14.  [REPEALER.] 
 16.30     Minnesota Statutes 1994, section 473.167, subdivision 5, is 
 16.31  repealed.  Minnesota Statutes 1995 Supplement, section 473.167, 
 16.32  subdivision 3a, is repealed. 
 16.33     Sec. 15.  [APPLICATION.] 
 16.34     Sections 2 to 7, 10, and 12 apply in the counties of Anoka, 
 16.35  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
 16.36     Sec. 16.  [EFFECTIVE DATE.] 
 17.1      Sections 1 to 10 and 12 to 14 are effective the day 
 17.2   following final enactment. 
 17.3      Section 11 is effective upon compliance by the governing 
 17.4   body of the port authority of the city of Bloomington and the 
 17.5   governing body of the city of Bloomington with Minnesota 
 17.6   Statutes, section 645.021, subdivision 2.