1.1                          A bill for an act 
  1.2             relating to local government; establishing the lakes 
  1.3             area economic development authority. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [LEGISLATIVE PURPOSE AND POLICY.] 
  1.6      The legislature determines that in the area in and around 
  1.7   the city of Alexandria, there are economic development issues 
  1.8   that can be more effectively dealt with by a single entity on a 
  1.9   coordinated basis rather than by multiple existing government 
  1.10  units.  The legislature, therefore, declares that for a 
  1.11  coordinated approach to economic development in the area, it is 
  1.12  necessary to establish for the area an economic development 
  1.13  authority with the responsibility of exercising the powers of an 
  1.14  economic development authority in order to advance the economic 
  1.15  vitality of the area. 
  1.16     Sec. 2.  [DEFINITIONS.] 
  1.17     Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
  1.18  1 to 8, the terms defined in this section have the following 
  1.19  meanings. 
  1.20     Subd. 2.  [LAKES AREA ECONOMIC DEVELOPMENT 
  1.21  AUTHORITY.] "Lakes area economic development authority" or 
  1.22  "authority" means the lakes area economic authority established 
  1.23  as provided in section 3. 
  1.24     Subd. 3.  [PERSON.] "Person" means an individual, 
  2.1   partnership, corporation, cooperative, or other organization or 
  2.2   entity, public or private. 
  2.3      Subd. 4.  [MEMBER.] "Member" means the city of Alexandria 
  2.4   or Garfield or the township of Alexandria or La Grand, or any 
  2.5   other municipality, the geographic area of which is included 
  2.6   within the jurisdiction of the authority. 
  2.7      Subd. 5.  [MUNICIPALITY.] "Municipality" means a statutory 
  2.8   or home rule charter city or town located in Douglas county. 
  2.9      Sec. 3.  [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.] 
  2.10     Subdivision 1.  [ESTABLISHMENT.] A lakes area economic 
  2.11  development authority with jurisdiction over the geographic area 
  2.12  of its members is established as a public corporation and 
  2.13  political subdivision of the state with perpetual succession and 
  2.14  all the rights, powers, privileges, immunities, and duties that 
  2.15  may be validly granted to or imposed upon a municipal 
  2.16  corporation, as provided in sections 1 to 8. 
  2.17     Subd. 2.  [BOARD OF COMMISSIONERS.] The authority is 
  2.18  governed by a board of commissioners to be selected as follows:  
  2.19  the mayor of each member city, and the chair of the town board 
  2.20  of each member town shall appoint one commissioner, subject to 
  2.21  the approval of the respective city council or town board.  The 
  2.22  terms of the commissioner are as provided in subdivision 5. 
  2.23     Subd. 3.  [TIME LIMITS FOR SELECTION, ALTERNATIVE 
  2.24  APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of 
  2.25  commissioners must be made no later than 60 days after sections 
  2.26  1 to 8 become effective.  Subsequent appointments must be made 
  2.27  within 60 days before the expiration of a term in the same 
  2.28  manner as the predecessor was selected.  A vacancy on the board 
  2.29  must be filled within 60 days after it occurs.  If a selection 
  2.30  is not made within the prescribed time, the chief judge of the 
  2.31  seventh judicial district of the Minnesota district court on 
  2.32  application by an interested person shall appoint an eligible 
  2.33  person to the board. 
  2.34     Subd. 4.  [VACANCIES.] If a vacancy occurs in the office of 
  2.35  commissioner, the vacancy must be filled for the unexpired term 
  2.36  in a like manner as provided for selection of the commissioner 
  3.1   who vacated the office.  The office must be considered vacant 
  3.2   under the conditions specified in Minnesota Statutes, section 
  3.3   351.02. 
  3.4      Subd. 5.  [TERMS OF OFFICE.] The terms of the initial 
  3.5   appointees to the board of commissioners are for three, four, 
  3.6   five, and six years and must be established by lot among the 
  3.7   initial four commissioners.  The mayor or town board chair of 
  3.8   any new member added under section 6 shall designate the term, 
  3.9   not to exceed six years, of the first commissioner selected to 
  3.10  represent the member.  Succeeding terms of all commissioners are 
  3.11  six years, except that each commissioner serves until a 
  3.12  successor has been duly selected and qualified. 
  3.13     Subd. 6.  [REMOVAL.] A commissioner may be removed by the 
  3.14  unanimous vote of the appointing governing body, with or without 
  3.15  cause. 
  3.16     Subd. 7.  [QUALIFICATIONS.] A commissioner may, but need 
  3.17  not, be a resident of the territory of the member appointing 
  3.18  that commissioner. 
  3.19     Subd. 8.  [COMPENSATION.] A commissioner must be paid a per 
  3.20  diem compensation for attending a regular or special meeting in 
  3.21  an amount determined by the board.  A commissioner must be 
  3.22  reimbursed for all reasonable expenses incurred in the 
  3.23  performance of the commissioner's duties as determined by the 
  3.24  board. 
  3.25     Sec. 4.  [POWERS; APPLICATION OF EDA LAW.] 
  3.26     Subdivision 1.  [USE OF EDA POWERS.] Except as otherwise 
  3.27  provided in sections 1 to 8, the authority may exercise any of 
  3.28  the powers of an economic development authority (EDA) provided 
  3.29  by Minnesota Statutes, sections 469.090 to 469.1082, and for 
  3.30  this purpose the term "city" means a member.  Minnesota 
  3.31  Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and 
  3.32  469.108 to 469.1081 apply to the authority, except that the 
  3.33  authority's fiscal year is the calendar year.  
  3.34     Subd. 2.  [LAW THAT IS NOT APPLICABLE.] The provisions in: 
  3.35     (1) Minnesota Statutes, section 469.091, subdivision 1, 
  3.36  expressly relating to: 
  4.1      (i) the adoption of an enabling resolution; 
  4.2      (ii) Minnesota Statutes, section 469.092; or 
  4.3      (iii) housing and redevelopment authorities; and 
  4.4      (2) Minnesota Statutes, sections 469.093, 469.095, 469.102, 
  4.5   and 469.107; 
  4.6   do not apply to the authority. 
  4.7      Sec. 5.  [MEMBERS MUST LEVY TAXES FOR AUTHORITY.] 
  4.8      (a) A member shall, at the request of the authority, levy a 
  4.9   tax in any year for the benefit of the authority.  The tax is, 
  4.10  for each member, a pro rata portion of the total amount of tax 
  4.11  requested by the authority based on the taxable market value 
  4.12  within a member's jurisdiction, but in no event may the tax in 
  4.13  any year exceed 0.01813 percent of taxable market value.  For 
  4.14  purposes of this section, "taxable market value" has the meaning 
  4.15  as given in Minnesota Statutes, section 273.032. 
  4.16     (b) The treasurer of each member city or town shall, within 
  4.17  15 days after receiving the property tax settlements from the 
  4.18  county treasurer, pay to the treasurer of the authority the 
  4.19  amount collected for this purpose.  The money must be used by 
  4.20  the authority for the purposes provided by sections 1 to 8. 
  4.21     Sec. 6.  [ADDITION AND WITHDRAWAL OF MEMBERS.] 
  4.22     Subdivision 1.  [ADDITIONS.] A municipality upon a 
  4.23  resolution adopted by a four-fifths vote of all of its governing 
  4.24  body may petition the authority to be included within the 
  4.25  jurisdiction of the authority and, if approved by the authority, 
  4.26  the geographic area of the municipality must be included within 
  4.27  the jurisdiction of the authority and subject to the 
  4.28  jurisdiction of the authority under sections 1 to 8. 
  4.29     Subd. 2.  [WITHDRAWALS.] A municipality may withdraw from 
  4.30  the authority by resolution of its governing body.  The 
  4.31  municipality must notify the board of commissioners of the 
  4.32  authority of the withdrawal by providing a copy of the 
  4.33  resolution at least two years in advance of the proposed 
  4.34  withdrawal.  Unless the authority and the withdrawing member 
  4.35  agree otherwise by action of their governing bodies, the taxable 
  4.36  property of the withdrawing member is subject to the property 
  5.1   tax levy under section 5 for two taxes payable years following 
  5.2   the notification of the withdrawal and the withdrawing member 
  5.3   retains any rights, obligations, and liabilities obtained or 
  5.4   incurred during its participation. 
  5.5      Sec. 7.  [CONTRACTS WITH NONPROFIT CORPORATIONS.] 
  5.6      The authority may enter into contracts with one or more 
  5.7   nonprofit corporations to make, from funds of and under 
  5.8   guidelines set by the authority, loans or grants for projects 
  5.9   the authority may undertake under sections 1 to 8.  Minnesota 
  5.10  Statutes, section 465.719, does not apply so long as the 
  5.11  nonprofit corporation is not described in Minnesota Statutes, 
  5.12  section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii). 
  5.13     Sec. 8.  [RELATION TO EXISTING LAWS.] 
  5.14     Sections 1 to 8 must be given full effect notwithstanding 
  5.15  any law or charter that is inconsistent with them. 
  5.16     Sec. 9.  [LOCAL APPROVAL; EFFECTIVE DATE.] 
  5.17     Sections 1 to 8 are only effective as to all affected 
  5.18  governing bodies on the day after the last of the governing 
  5.19  bodies or town boards of the cities of Alexandria and Garfield 
  5.20  and the towns of Alexandria and La Grand in Douglas county and 
  5.21  the chief clerical officer of each of them timely complete their 
  5.22  compliance with Minnesota Statutes, section 645.021, 
  5.23  subdivisions 2 and 3.