1.1 	A bill for an act
1.2 	relating to economic development; providing a bidding
1.3 	exception for certain federally subsidized transit
1.4 	facilities; amending Minnesota Statutes 2004, section
1.5 	469.015, subdivision 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 469.015,
1.8 	subdivision 4, is amended to read:
1.9 		Subd. 4.Exceptions.  (a) An authority need not require
1.10 	competitive bidding in the following circumstances:
1.11 	(1) in the case of a contract for the acquisition of a
1.12 	low-rent housing project:
1.13 	(i) for which financial assistance is provided by the
1.14 	federal government;
1.15 	(ii) which does not require any direct loan or grant of
1.16 	money from the municipality as a condition of the federal
1.17 	financial assistance; and
1.18 	(iii) for which the contract provides for the construction
1.19 	of the project upon land that is either owned by the authority
1.20 	for redevelopment purposes or not owned by the authority at the
1.21 	time of the contract but the contract provides for the
1.22 	conveyance or lease to the authority of the project or
1.23 	improvements upon completion of construction;
1.24 	(2) with respect to a structured parking facility:
1.25 	(i) constructed in conjunction with, and directly above or
2.1 	below, a development; and
2.2 	(ii) financed with the proceeds of tax increment or parking
2.3 	ramp general obligation or revenue bonds; and 
2.4 	(3) until August 1, 2009, with respect to a facility built
2.5 	for the purpose of facilitating the operation of public transit
2.6 	or encouraging its use:
2.7 	(i) constructed in conjunction with, and directly above or
2.8 	below, a development; and 
2.9 	(ii) financed with the proceeds of tax increment or parking
2.10 	ramp general obligation or revenue bonds or with at least 60
2.11 	percent of the construction cost being financed with funding
2.12 	provided by the federal government; and 
2.13 	(4) in the case of any building in which at least 75
2.14 	percent of the usable square footage constitutes a housing
2.15 	development project if:
2.16 	(i) the project is financed with the proceeds of bonds
2.17 	issued under section 469.034 or from nongovernmental sources;
2.18 	(ii) the project is either located on land that is owned or
2.19 	is being acquired by the authority only for development
2.20 	purposes, or is not owned by the authority at the time the
2.21 	contract is entered into but the contract provides for
2.22 	conveyance or lease to the authority of the project or
2.23 	improvements upon completion of construction; and
2.24 	(iii) the authority finds and determines that elimination
2.25 	of the public bidding requirements is necessary in order for the
2.26 	housing development project to be economical and feasible.
2.27 	(b) An authority need not require a performance bond for
2.28 	the following projects:
2.29 	(1) a contract described in paragraph (a), clause (1);
2.30 	(2) a construction change order for a housing project in
2.31 	which 30 percent of the construction has been completed;
2.32 	(3) a construction contract for a single-family housing
2.33 	project in which the authority acts as the general construction
2.34 	contractor; or
2.35 	(4) a services or materials contract for a housing project.
2.36 	For purposes of this paragraph, "services or materials
3.1 	contract" does not include construction contracts.