1.1A bill for an act1.2relating to capital improvements; authorizing spending to acquire and better 1.3public land and buildings and other improvements of a capital nature with 1.4certain conditions; establishing new programs and modifying existing programs; 1.5authorizing the sale of state bonds; canceling and modifying previous 1.6appropriations; appropriating money;amending Minnesota Statutes 2006, 1.7section 16A.695, subdivisions 2, 3, by adding subdivisions; Laws 2005, chapter 1.820, article 1, sections 7, subdivision 21; 17; 20, subdivision 3; 21, subdivision 1.92; 23, subdivisions 8, 16; Laws 2005, chapter 156, article 2, section 46; Laws 1.102006, chapter 258, sections 4, subdivision 4; 7, subdivisions 3, 7, 11, 22; 16, 1.11subdivision 4; 21, subdivisions 6, 15; 23, subdivision 3.1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.14    The sums shown in the column under "appropriations" are appropriated from the 1.15bond proceeds fund, or another named fund, to the state agencies or officials indicated, to 1.16be spent for public purposes. Appropriations of bond proceeds must be spent as authorized 1.17by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better 1.18public land and buildings and other public improvements of the capital nature, or as 1.19authorized by article XI, section 5, paragraphs (b) to (j), or article XIV. Unless otherwise 1.20specified, the appropriations in this article are available until the project is completed or 1.21abandoned subject to Minnesota Statutes, section 16A.642.

1.22SUMMARY1.23University of Minnesota$35,400,0001.24Minnesota State Colleges and Universities34,520,0001.25Education30,240,0001.26Natural Resources4,684,0001.27Pollution Control Agency2,500,0001.28Board of Water and Soil Resources8,165,0002.1Zoological Garden1,526,0002.2Administration19,740,0002.3Public Safety5,050,0002.4Transportation53,673,0002.5Metropolitan Council50,650,0002.6Human Services150,0002.7Corrections6,117,0002.8Employment and Economic Development81,650,0002.9Bond Sale Expenses167,0002.10Cancellations(5,282,000)2.11Lewis and Clark5,282,0002.12TOTAL$334,232,0002.13Bond Proceeds Fund (General Fund Debt Service)110,288,0002.14Bond Proceeds Fund (User Financed Debt Service)1,267,0002.15State Transportation Fund30,000,0002.16Trunk Highway Fund Bond Proceeds Account33,420,0002.17General Fund164,539,0002.18Bond Proceeds Cancellations(5,282,000)

2.19APPROPRIATIONS

2.20Sec. 2. UNIVERSITY OF MINNESOTA

2.21Subdivision 1.Total Appropriation$35,400,000

2.22To the Board of Regents of the University 2.23of Minnesota for the purposes specified in 2.24this section.

2.252.26Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)21,000,000

2.27To be spent in accordance with Minnesota 2.28Statutes, section 135A.046. 

2.29Subd. 3.717 Delaware14,400,000

2.30To renovate the building at 717 Delaware 2.31for use as a biomedical science research 2.32facility. This appropriation is intended to 2.33cover approximately 80 percent of the cost 2.34of the project. The remaining costs must be 2.35paid from university sources.

3.13.2Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

3.3Subdivision 1.Total Appropriation$34,520,000

3.4To the Board of Trustees of the Minnesota 3.5State Colleges and Universities for the 3.6purposes specified in this section.

3.73.8Subd. 2.Higher Education Asset Preservation And Replacement30,720,000

3.9This appropriation is for the purposes 3.10specified in Minnesota Statutes, section 3.11135A.046. Of this, $720,000 is for HVAC 3.12replacement and asbestos removal at 3.13the Brooklyn Park campus of Hennepin 3.14Technical College.

3.15Subd. 3.Bemidji State University2,000,000

3.16To acquire property adjacent to Bemidji State 3.17University.

3.183.19Subd. 4.Fond du Lac Tribal and Community College1,800,000

3.20To acquire property adjacent to the Fond du 3.21Lac Tribal and Community College.

3.22Subd. 5.Debt Service

3.23(a) The board shall pay the debt service on 3.24one-third of the principal amount of state 3.25bonds sold to finance projects authorized by 3.26this section, except for higher education asset 3.27preservation and replacement, except that, 3.28where a nonstate match is required, the debt 3.29service is due on a principal amount equal 3.30to one-third of the total project cost, less the 3.31match committed before the bonds are sold. 3.32After each sale of general obligation bonds, 3.33the commissioner of finance shall notify the 4.1board of the amounts assessed for each year 4.2for the life of the bonds.4.3(b) The commissioner shall reduce the 4.4board's assessment each year by one-third of 4.5the net income from investment of general 4.6obligation bond proceeds in proportion to the 4.7amount of principal and interest otherwise 4.8required to be paid by the board. The board 4.9shall pay its resulting net assessment to the 4.10commissioner of finance by December 1 each 4.11year. If the board fails to make a payment 4.12when due, the commissioner of finance 4.13shall reduce allotments for appropriations 4.14from the general fund otherwise available 4.15to the board and apply the amount of the 4.16reduction to cover the missed debt service 4.17payment. The commissioner of finance 4.18shall credit the payments received from the 4.19board to the bond debt service account in 4.20the state bond fund each December 1 before 4.21money is transferred from the general fund 4.22under Minnesota Statutes, section 16A.641, 4.23subdivision 10.

4.24Subd. 6.Unspent Appropriations

4.25(a) Upon substantial completion of a project 4.26authorized in this section and after written 4.27notice to the commissioner of finance, the 4.28Board of Trustees must use any money 4.29remaining in the appropriation for that 4.30project for HEAPR under Minnesota 4.31Statutes, section 135A.046. The Board 4.32of Trustees must report by February 1 of 4.33each even-numbered year to the chairs 4.34of the house and senate committees with 4.35jurisdiction over capital investments and 5.1higher education finance, and to the chairs of 5.2the house Ways and Means Committee and 5.3the senate Finance Committee, on how the 5.4remaining money has been allocated or spent.5.5(b) The unspent portion of an appropriation 5.6for a project in this section that is complete, 5.7is available for higher education asset 5.8preservation and replacement under this 5.9subdivision, at the same campus as the 5.10project for which the original appropriation 5.11was made and the debt service requirement 5.12under subdivision 5 is reduced accordingly. 5.13Minnesota Statutes, section 16A.642, applies 5.14from the date of the original appropriation to 5.15the unspent amount transferred. 

5.165.17Sec. 4. MINNESOTA DEPARTMENT OF EDUCATION

5.18Subdivision 1.Total Appropriation$30,240,000

5.19To the commissioner of education for the 5.20purposes specified in this section. The 5.21appropriations in this section are from the 5.22general fund.

5.235.24Subd. 2.Independent School District No. 11, Anoka-Hennepin240,000

5.25For a grant to Independent School District 5.26No. 11, Anoka-Hennepin, to acquire land 5.27adjacent to Riverview Elementary School 5.28and for improvements of a capital nature 5.29to develop and restore wetland and native 5.30prairie habitat on the land.

5.315.32Subd. 3.Independent School District No. 38, Red Lake30,000,000

5.33For a grant to Independent School District 5.34No. 38, Red Lake, to design, construct, 5.35furnish, and equip renovation of existing 6.1facilities and construction of new facilities. 6.2The project includes renovation of, 6.3and an addition to, the high school and 6.4middle school to provide classrooms and 6.5related facilities for technology education, 6.6vocational education, physical education, 6.7and community education, and to provide 6.8for food services and administrative offices. 6.9The heating plant and piping for the high 6.10school and middle school will be upgraded 6.11and the motor vehicle fuel and propane tanks 6.12may be relocated. The project may include 6.13renovation of the Red Lake Elementary 6.14School to add classrooms and to link it 6.15to the Early Childhood Learning Center. 6.16The project may include renovation of the 6.17Ponemah Elementary School to add a media 6.18center and Head Start center, add parking, 6.19improve the bus drop-off, and expand 6.20playground facilities. The commissioner 6.21and Independent School District No. 38, 6.22Red Lake, shall report to the legislature by 6.23January 10, 2008, on the progress of the 6.24project funded by the grant. The unexpended 6.25balance of the appropriation in Laws 2005, 6.26chapter 20, article 1, section 5, subdivision 6.272, as amended by Laws 2006, chapter 258, 6.28section 42, to design, construct, renovate, 6.29furnish, equip, and make health and safety 6.30capital improvements to school facilities may 6.31be added to this appropriation.

6.32Sec. 5. NATURAL RESOURCES

6.33Subdivision 1.Total Appropriation$4,684,000

6.34To the commissioner of natural resources for 6.35the purposes specified in this section.7.1The appropriations in this section are from 7.2the general fund.7.3The appropriations in this section are subject 7.4to the requirements of the natural resources 7.5capital improvement program set forth in 7.6Minnesota Statutes, section 86A.12, unless 7.7this section or the statutes referred to in this 7.8section provide more specific standards, 7.9criteria, or priorities for projects than 7.10Minnesota Statutes, section 86A.12.

7.11Subd. 2.Stillwater Flood Control Phase III200,000

7.12For a grant under Minnesota Statutes, 7.13section 103F.161, to the city of Stillwater to 7.14predesign, design, and begin construction 7.15of Phase III of the Stillwater flood control 7.16project, including flood control structures 7.17and pumping stations. This appropriation 7.18is not available until the commissioner has 7.19determined that at least $2,000,000 has been 7.20committed from nonstate sources.

7.21Subd. 3.Canisteo Mine1,300,000

7.22For a grant to the Western Mesabi Mine 7.23Planning Board to construct siphons, a 7.24conveyance system, and other improvements 7.25to accommodate water level and outflow 7.26control of the water level in the Canisteo 7.27mine pit in Itasca County. This appropriation 7.28does not require a local match. The 7.29commissioner of natural resources shall be 7.30responsible to maintain the improvements 7.31after completion of the project.

7.32Subd. 4.Lake Zumbro Restoration350,000

7.33For an agreement with Olmsted and 7.34Wabasha Counties to design and engineer 8.1the restoration of Lake Zumbro. This is a 8.2onetime appropriation and is available until 8.3June 30, 2009.

8.4Subd. 5.Red River Digital Elevation Model600,000

8.5To develop and implement a high-resolution 8.6digital elevation model for the Red River 8.7basin.

8.8Subd. 6.Greenleaf Lake State Recreation Area500,000

8.9To acquire from willing sellers land 8.10within the boundaries of Greenleaf Lake 8.11State Recreation Area, established under 8.12Minnesota Statutes, section 85.013, 8.13subdivision 11b.

8.14Subd. 7.Fort Snelling Upper Bluff500,000

8.15For a grant to Hennepin County to conduct 8.16emergency building stabilization at Fort 8.17Snelling Upper Bluff. This appropriation 8.18is not available until the commissioner of 8.19finance has determined that Hennepin County 8.20has entered into appropriate agreements to 8.21use sentence-to-serve labor for the project 8.22that will train sentence-to-serve laborers in 8.23the skills needed for the work.

8.248.25Subd. 8.State Trail Acquisition and Development1,234,000

8.26To acquire land for and to construct and 8.27renovate state trails under Minnesota 8.28Statutes, section 85.015.8.29$125,000 is for the Cuyuna Lakes Trail, to 8.30develop a natural surface multiuse trail in the 8.31Cuyuna Country State Recreation Area.8.32$650,000 is for the Gateway Trail, to replace 8.33an at-grade crossing of the Gateway Trail at 8.34Highway 120 with a tunnel.9.1$209,000 is for the Luce Line Trail, to 9.2acquire land for, develop, and rehabilitate the 9.3trail.9.4$250,000 is for acquisition of the Browns 9.5Creek segment of the Willard Munger Trail 9.6System, currently the right-of-way for the 9.7Minnesota Zephyr.

9.8Sec. 6. POLLUTION CONTROL AGENCY$2,500,000

9.9Closed landfill program

9.10This appropriation is from the general fund 9.11for a grant to the city of Albert Lea to 9.12construct remedial systems at the Albert 9.13Lea landfill. This includes relocating and 9.14incorporating waste from the former Albert 9.15Lea dump owned by the city of Albert 9.16Lea under Minnesota Statutes, section 9.17115B.403, which action may be taken by the 9.18Pollution Control Agency notwithstanding 9.19the provisions of Minnesota Statutes, section 9.20115B.403, paragraphs (a) and (b).9.21The appropriation in this section is added to 9.22the amounts for the city of Albert Lea landfill 9.23funding in Laws 2006, chapter 258, section 9.248, subdivision 2.

9.259.26Sec. 7. BOARD OF WATER AND SOIL RESOURCES

9.27Subdivision 1.Total Appropriation$8,165,000

9.28To the Board of Water and Soil Resources 9.29for the purposes specified in this section. The 9.30appropriations in this section are from the 9.31general fund.

9.32Subd. 2.RIM Conservation Reserve8,000,000

10.1To acquire conservation easements from 10.2landowners on marginal lands and to 10.3construct conservation measures on acquired 10.4land in order to protect soil and water quality 10.5and to support fish and wildlife habitat as 10.6provided in Minnesota Statutes, sections 10.7103F.501 to 103F.535. Of this, $1,200,000 10.8is to implement the program. The board 10.9must submit to the legislative committees 10.10with jurisdiction over environment finance 10.11and capital investment an interim report on 10.12this program by October 1, 2007, and a final 10.13report by February 1, 2008.

10.14Subd. 3.Lake Titlow Watershed Improvements165,000

10.15$150,000 is for a grant to the city of Gaylord 10.16to predesign and design holding ponds 10.17upstream from Lake Titlow. The design 10.18must include the best location for the ponds, 10.19an estimate of the cost of land acquisition 10.20or easements, construction costs of the 10.21holding ponds, and the estimated expense 10.22of maintaining the structures and who will 10.23be responsible for the expense. The city 10.24must also coordinate with state and county 10.25conservation officials to ensure correct 10.26conservation practices and improvements in 10.27the watershed district.10.28$15,000 is for a grant to the city of Gaylord to 10.29purchase open intake tile covers or cones that 10.30limit soil erosion and chemicals from entering 10.31the water ditch systems and waterways of 10.32the Lake Titlow watershed. These water 10.33control devices must be provided at low 10.34cost to landowners to promote conservation 10.35improvement and clean up groundwater. 11.1Volunteers from the city of Gaylord and local 11.2clubs and high school students must be used 11.3to install the water control devices at no cost 11.4to the landowner.11.5The criteria, limitations, and assessment 11.6requirements in Minnesota Statutes, sections 11.7103D.701, 103D.705, and 103D.901 do not 11.8apply to this subdivision.

11.911.10Sec. 8. MINNESOTA ZOOLOGICAL GARDEN$1,526,000

11.11Inflow and infiltration emergency abatement

11.12This appropriation is from the general fund to 11.13the Minnesota Zoological Garden to design 11.14and construct improvements to its water 11.15management system. The project must be 11.16designed to address inflow and infiltration 11.17problems associated with the Minnesota 11.18Zoo's water discharge flow to the city of 11.19Eagan.

11.20Sec. 9. ADMINISTRATION

11.21Subdivision 1.Total Appropriation$19,740,000

11.22To the commissioner of administration for 11.23the purposes specified in this section.

11.24Subd. 2.Capitol Renovation4,500,000

11.25(a) This appropriation is from the general 11.26fund for architectural and engineering 11.27services related to the exploration and 11.28development of an acceptable plan and the 11.29schematic design of that plan to restore and 11.30renovate the Capitol building. Services 11.31leading up to and including schematic design 11.32will include the planning, review, and further 11.33development of an approved concept plan 12.1for the restoration and renovation of the 12.2Capitol. Drawings, cost estimates, and 12.3other documents produced during this phase 12.4will address planning options and campus 12.5concerns, as well as considerations for 12.6swing space, phasing strategies, and cost 12.7implications. Based on the approval concept 12.8plan, a site survey and geotechnical testing 12.9will be performed. From this data, a capital 12.10budget request will be prepared for the 2008 12.11session of the legislature.12.12(b) The appropriation in this subdivision 12.13may not be spent on any project that affects 12.14space under the control of the senate without 12.15the approval of the chair of the Committee 12.16on Rules and Administration of the senate 12.17nor on any project that affects space under 12.18the control of the house of representatives 12.19without the approval of the speaker of the 12.20house. 

12.2112.22Subd. 3.Exterior Repair of Transportation Building12,715,000

12.23This appropriation is from the bond proceeds 12.24account in the trunk highway fund to repair 12.25and renovate the exterior of the Department 12.26of Transportation Building at 395 John 12.27Ireland Boulevard in St. Paul.12.28EFFECTIVE DATE. The appropriation in 12.29subdivision 3 is void if H.F. 946 is enacted in 12.30the 2007 legislative session.

12.31Subd. 4.Property Acquisition2,325,000

12.32This appropriation is from the general fund 12.33to acquire property at 639 Jackson Street in 12.34St. Paul adjacent to the Harold E. Stassen 12.35Building, to demolish existing structures 13.1on the property, and to develop temporary 13.2parking on the site and adjacent areas.

13.3Subd. 5.Veterans Memorial, Eden Prairie200,000

13.4This appropriation is from the general fund 13.5for a grant to the city of Eden Prairie to 13.6design and construct improvements of a 13.7capital nature for a veterans memorial in 13.8Purgatory Creek Recreation Area in the city 13.9of Eden Prairie.

13.10Sec. 10. PUBLIC SAFETY

13.11Subdivision 1.Total Appropriation$5,050,000

13.12To the commissioner of public safety for the 13.13purposes specified in this section.13.14The appropriations in this section are from 13.15the general fund.

13.1613.17Subd. 2.Anoka County Forensic Crime Laboratory2,000,000

13.18Notwithstanding any law to the contrary, 13.19this appropriation is for a grant to Anoka 13.20County to design, construct, furnish, and 13.21equip a regional forensic crime laboratory, 13.22for the use of Anoka, Sherburne, and Wright 13.23Counties, to be located in Anoka County.13.24This appropriation is not available until the 13.25commissioner has determined that at least 13.26$7,500,000 has been committed or will be 13.27committed from nonstate sources to the 13.28forensic crime laboratory and/or a public 13.29safety facility that will contain the forensic 13.30crime laboratory.

13.3113.32Subd. 3.Gonvick Public Safety Training Center50,000

13.33Notwithstanding any law to the contrary, for 13.34a grant to the city of Gonvick to predesign a 14.1regional emergency training administration 14.2center in Gonvick.14.3This appropriation is not available until the 14.4commissioner has determined that at least 14.5an equal amount has been committed from 14.6nonstate sources.

14.714.8Subd. 4.Scott County Public Safety Training Center1,500,000

14.9Notwithstanding any law to the contrary, for 14.10a grant to Scott County to design, construct, 14.11furnish, and equip a regional public safety 14.12training center in Scott County.14.13This appropriation is not available until the 14.14commissioner has determined that at least 14.15an equal amount has been committed from 14.16nonstate sources.

14.1714.18Subd. 5.Southeastern Minnesota Regional Public Safety Training Center1,500,000

14.19Notwithstanding any law to the contrary, 14.20to design, construct, furnish, and equip the 14.21Southeastern Minnesota Regional Public 14.22Safety Training Center in Rochester. The 14.23facility must include a live burn training 14.24simulator, a driving range, and a weapons 14.25training facility.14.26This appropriation is not available until the 14.27commissioner has determined that at least 14.28an equal amount has been committed from 14.29nonstate sources.

14.30Sec. 11. TRANSPORTATION

14.31Subdivision 1.Total Appropriation$53,673,000

14.32To the commissioner of transportation for the 14.33purposes specified in this section.

15.115.2Subd. 2.Local Bridge Replacement and Rehabilitation30,000,000

15.3This appropriation is from the bond proceeds 15.4account in the state transportation fund as 15.5provided in Minnesota Statutes, section 15.6174.50, to match federal money and to 15.7replace or rehabilitate local deficient bridges.15.8Political subdivisions may use grants made 15.9under this section to construct or reconstruct 15.10bridges, including:15.11(1) matching federal aid grants to construct 15.12or reconstruct key bridges;15.13(2) paying the costs of preliminary 15.14engineering and environmental studies 15.15authorized under Minnesota Statutes, section 15.16174.50, subdivision 6a;15.17(3) paying the costs to abandon an existing 15.18bridge that is deficient and in need of 15.19replacement, but where no replacement will 15.20be made; and15.21(4) paying the costs to construct a road 15.22or street to facilitate the abandonment 15.23of an existing bridge determined by 15.24the commissioner to be deficient, if the 15.25commissioner determines that construction 15.26of the road or street is more cost efficient 15.27than the replacement of the existing bridge.

15.28Subd. 3.Port Development Assistance500,000

15.29This appropriation is from the general fund 15.30for grants under Minnesota Statutes, chapter 15.31457A. Any improvements made with the 15.32proceeds of these grants must be publicly 15.33owned.

15.34Subd. 4.Mankato District Headquarters20,673,000

16.1This appropriation is from the bond proceeds 16.2account in the trunk highway fund to 16.3design, construct, furnish, and equip a 16.4new Department of Transportation district 16.5headquarters facility in Mankato.16.6EFFECTIVE DATE. The appropriation in 16.7subdivision 4 is void if H.F. 946 is enacted in 16.8the 2007 legislative session.

16.9Subd. 5.High-Speed Rail Line2,000,000

16.10This appropriation is from the general 16.11fund for the state's share of a high-speed 16.12rail line connecting Chicago, LaCrescent, 16.13Winona, Red Wing, and the Union Depot 16.14Concourse Multimodal Transit Hub, located 16.15in downtown St. Paul in the area south 16.16of Kellogg Boulevard and east of Jackson 16.17Street. No part of this appropriation 16.18may be spent to acquire or better capital 16.19improvements that are located outside the 16.20state of Minnesota, that may be used from 16.21time to time outside the state of Minnesota, 16.22or that are part of a rail corridor that is 16.23not designated by the Midwest Interstate 16.24Passenger Rail Compact.

16.25Subd. 6.Commuter Rail Extension250,000

16.26This appropriation is from the general 16.27fund for a grant to the Northstar Corridor 16.28Development Authority to fund advanced 16.29preliminary engineering, updated 16.30environmental documentation, property 16.31appraisals, and negotiations with the railroad 16.32to extend commuter rail service on the 16.33Burlington Northern Santa Fe rail line 16.34between Big Lake and Rice.

17.117.2Subd. 7.North Shore Express Intercity Rail Initiative250,000

17.3This appropriation is from the general 17.4fund for a grant to St. Louis and Lake 17.5County Regional Rail Authority for 17.6railroad acquisition and track restoration, 17.7environmental impact studies, advanced 17.8corridor planning, preliminary design and 17.9preliminary engineering, station design, 17.10analysis of railroad capacity, and easement 17.11costs for intercity and passenger rail service 17.12between the city of Duluth and the cities of 17.13Minneapolis and St. Paul.

17.14Sec. 12. METROPOLITAN COUNCIL

17.15Subdivision 1.Total Appropriation$50,650,000

17.16To the Metropolitan Council for the purposes 17.17specified in this section. The appropriations 17.18in this section are from the general fund, 17.19unless another fund is named.

17.20Subd. 2.Central Corridor Transit Way40,000,000

17.21This appropriation is from the bond proceeds 17.22fund for preliminary engineering, preliminary 17.23design, final design, and construction of 17.24the central corridor transit way between 17.25downtown Minneapolis and downtown St. 17.26Paul, terminating in downtown St. Paul at 17.27the Union Depot.17.28This appropriation may not be spent for 17.29capital improvements within a trunk highway 17.30right-of-way.17.31District heating and district cooling nonprofit 17.32corporations organized under Minnesota 17.33Statutes, chapter 317A, that are exempt 17.34organizations under section 501(c)(3) of 18.1the United States Internal Revenue Code 18.2that are public right-of-way users under 18.3Minnesota Rules, chapter 7819, are eligible 18.4to receive grants and federal money for 18.5costs of relocating facilities from public 18.6rights-of-way to prevent interference with 18.7public light rail projects unless receipt of the 18.8money would impact the project's Federal 18.9Transit Authority required cost effectiveness 18.10index.

18.11Subd. 3.South St. Paul - Span Arch Bridge600,000

18.12For a grant to the city of South St. Paul 18.13to design and construct a span arch bridge 18.14under 19th Avenue in South St. Paul for 18.15connection with the Dakota County North 18.16Urban Regional Trail.

18.17Subd. 4.Union Depot2,500,000

18.18$1,000,000 of this appropriation is from the 18.19general fund.18.20$1,500,000 of this appropriation is from the 18.21bond proceeds fund.18.22For a grant to the Ramsey County Regional 18.23Railroad Authority to acquire land and 18.24structures, to renovate structures, and for 18.25design, engineering, and environmental 18.26work to revitalize Union Depot for use as a 18.27multimodal transit center in St. Paul.

18.28Subd. 5.Rush Line Corridor Transit Way500,000

18.29For a grant to the Ramsey County Regional 18.30Railroad Authority to acquire land for, 18.31design, and construct park-and-ride or 18.32park-and-pool lots located along the Rush 18.33Line Corridor along I-35E/I-35W and 19.1Highway 61 from the Union Depot in 19.2downtown St. Paul to Hinckley.

19.3Subd. 6.Red Rock Corridor Transit Way500,000

19.4To design, construct, and furnish 19.5park-and-ride lots for the Red Rock 19.6Corridor transit way between Hastings and 19.7Minneapolis via St. Paul, and any extension 19.8between Hastings and Red Wing.

19.9Subd. 7.Southwest Corridor Transit Way500,000

19.10For a grant to the Hennepin County 19.11Regional Rail Authority to prepare a draft 19.12environmental impact statement (DEIS) 19.13and for preliminary engineering for the 19.14Southwest Corridor Transit Way, from the 19.15Hiawatha light rail in downtown Minneapolis 19.16to the vicinity of the Southwest Station 19.17transit hub in Eden Prairie.

19.18Subd. 8.Transit Master Plan250,000

19.19(a) The Metropolitan Council, in consultation 19.20with the regional railroad authorities in the 19.21metropolitan area, must complete a revision 19.22of the regional master plan for transit. The 19.23plan must identify recommended transit 19.24investments in the metropolitan area through 19.252030. The revised plan must be completed 19.26for presentation to the legislature by February 19.2720, 2008. The plan must include an analysis 19.28and comparison of transit way corridors 19.29and the potential for bus and busway, light 19.30rail transit, and commuter rail development 19.31within the corridors based on current and 19.32projected:19.33(1) population and population density;20.1(2) employment concentrations and job 20.2density;20.3(3) transit dependent segments of the 20.4population;20.5(4) ridership;20.6(5) capital and operating costs:20.7(6) land use;20.8(7) right-of-way availability; and20.9(8) adequacy of existing transportation 20.10options within the corridor.20.11The council and regional rail authorities must 20.12jointly select the corridors to be included in 20.13the analysis.20.14(b) The plan must include, but is not limited 20.15to, an analysis of the following corridors:20.16(1) the I-94 corridor, beginning at the 20.17Union Depot Concourse Multimodal 20.18Transit Hub, located in downtown St. Paul 20.19in the area south of Kellogg Boulevard 20.20and east of Jackson Street, extending 20.21eastward through Washington County 20.22to the Minnesota-Wisconsin border, and 20.23terminating in St. Croix County, Wisconsin;20.24(2) the I-494 corridor, on or near 20.25marked Interstate Highway 494, from 20.26Minneapolis-St. Paul International Airport to 20.27a transit station on the proposed Southwest 20.28Corridor transit way; and20.29(3) the I-35W/I-35 corridor, on or near 20.30marked Interstate Highway 35W/35 from 20.31downtown Minneapolis to County Road 50 20.32in Lakeville.

20.3320.34Subd. 9.Metropolitan Regional Parks Capital Improvements5,800,000

21.1Saint Paul - National Great River Park

21.2$3,800,000 is for a grant to the city of St. 21.3Paul to design, construct, furnish, and equip 21.4river park development and redevelopment 21.5infrastructure in National Great River Park 21.6along the Mississippi River in St. Paul. 

21.7Fridley - Springbrook Nature Center

21.8$2,000,000 is from the general fund 21.9for a grant to the city of Fridley to 21.10predesign, design, construct, and equip 21.11the redevelopment and expansion of 21.12the Springbrook Nature Center. This 21.13appropriation is not available until the 21.14commissioner has determined that at least 21.15an equal amount has been committed from 21.16nonstate sources.

21.17Sec. 13. HUMAN SERVICES$150,000

21.18West central secured treatment facility

21.19This appropriation is from the general fund 21.20to the commissioner of human services 21.21for a grant to Pope County to predesign 21.22a multicounty regional secured treatment 21.23facility in west central Minnesota. The 21.24commissioner shall prepare a report to the 21.25legislature assessing the need for and the 21.26viability of the facility and the benefits 21.27derived from a coordinated multicounty, 21.28regional approach to local chemical 21.29dependency needs in west central Minnesota. 21.30The report is due to the legislature by 21.31February 1, 2008.

21.32Sec. 14. CORRECTIONS

21.33Subdivision 1.Total Appropriation$6,117,000

22.1To the commissioner of administration for 22.2the purposes specified in this section. The 22.3appropriations in this section are from the 22.4general fund.

22.522.6Subd. 2.Minnesota Correctional Facility - Oak Park Heights

22.7(a) Perimeter system renovation3,875,000

22.8To renovate the perimeter system at the 22.9Oak Park Heights Correctional Facility 22.10by replacing the security fence system for 22.11the inside wall of the main prison yard 22.12and exterior fence, replacing the perimeter 22.13lighting system and the security razor 22.14ribbon, and installing cameras and lighting to 22.15correspond to the perimeter system's added 22.16security zones.

22.17(b) Ventilation system renovation2,242,000

22.18To renovate the ventilation system at the 22.19Oak Park Heights Correctional Facility by 22.20demolishing sections of existing ductwork, 22.21installing new ductwork, installing an 22.22ultraviolet lighting system, installing system 22.23air controls and electronics, and cleaning 22.24or otherwise renovating sections of existing 22.25ductwork.

22.2622.27Sec. 15. EMPLOYMENT AND ECONOMIC DEVELOPMENT

22.28Subdivision 1.Total Appropriation$81,650,000

22.29To the commissioner of employment and 22.30economic development or other named 22.31agency for the purposes specified in this 22.32section.

22.33Subd. 2.Bayport Storm Sewer150,000

23.1This appropriation is from the general fund to 23.2the Public Facilities Authority for a grant to 23.3the city of Bayport for the Middle St. Croix 23.4River Watershed Management Organization 23.5to complete construction documents and 23.6bidding for the sewer system extending from 23.7Minnesota Department of Natural Resources 23.8pond 82-310P (the prison pond) in Bayport 23.9through the Stillwater prison grounds to the 23.10St. Croix River.23.11This appropriation is in addition to the 23.12appropriations in Laws 2000, chapter 492, 23.13article 1, section 21, subdivision 8, to 23.14the commissioner of corrections and in 23.15Laws 2005, chapter 20, article 1, section 23.1623, subdivision 3, to the Public Facilities 23.17Authority, for the same project.

23.18Subd. 3.DECC Arena37,000,000

23.19This appropriation is from the general fund 23.20for a grant to the Duluth Entertainment 23.21and Convention Center Authority to 23.22design, construct, furnish, and equip capital 23.23improvements and renovations to the Duluth 23.24Entertainment and Convention Center. The 23.25capital improvements and renovations must 23.26include an approximately 217,446 square 23.27foot arena with an ice sheet of at least 200 23.28feet by 85 feet; trade show and concert space; 23.29seating capacity of at least 6,630 with suites, 23.30club seats, and concessions; state-of-the-art 23.31locker and training facilities; and accessible 23.32and expanded media space. Notwithstanding 23.33any law to the contrary, the authority may 23.34adopt a design and construction procurement 23.35process as determined by the authority, in 24.1its discretion, to be in the public interest in 24.2connection with the Duluth Entertainment 24.3and Convention Center improvements.

24.424.5Subd. 4.Itasca County - Steel Plant Infrastructure30,000,000

24.6This appropriation is from the general 24.7fund and is in addition to the appropriation 24.8in Laws 2006, chapter 258, section 21, 24.9subdivision 14.24.10For a grant to Itasca County for public 24.11infrastructure needed to support a steel plant 24.12in Itasca County. Grant money may be used 24.13by Itasca County to acquire right-of-way and 24.14mitigate loss of wetlands and runoff of storm 24.15water, to predesign, design, construct, and 24.16equip roads and rail lines, and, in cooperation 24.17with municipal public utilities, to predesign, 24.18design, construct, and equip natural gas 24.19pipelines, electric infrastructure, water 24.20supply systems, and wastewater collection 24.21and treatment systems. 

24.2224.23Subd. 5.Rochester - Mayo Civic Center Complex2,000,000

24.24This appropriation is from the general fund 24.25for a grant to the city of Rochester to design 24.26the renovation and expansion of the Mayo 24.27Civic Center Complex.

24.28Subd. 6.Wildlife Rehabilitation Center500,000

24.29This appropriation is from the general fund 24.30for a grant to the Wildlife Rehabilitation 24.31Center of Minnesota to retire loans incurred 24.32by the center for construction of its facility in 24.33the city of Roseville, and for completion of 24.34educational technology infrastructure at the 24.35center.

25.1Subd. 7.Rice Street Bridge2,000,000

25.2This appropriation is from the general 25.3fund for a grant to Ramsey County for 25.4the preliminary planning, design, and 25.5engineering of the Rice Street bridge where 25.6it crosses marked Trunk Highway 36 in 25.7Ramsey County.

25.825.9Subd. 8.St. Cloud State University - National Hockey Center10,000,000

25.10This appropriation is from the general fund 25.11to the Board of Trustees of the Minnesota 25.12State Colleges and Universities to predesign, 25.13design, construct, furnish, and equip the 25.14renovation of the National Hockey Center.

25.15Sec. 16. BOND SALE EXPENSES$167,000

25.16Subdivision 1.Bond Proceeds Fund

25.17To the commissioner of finance for bond sale 25.18expenses under Minnesota Statutes, section 25.1916A.641, subdivision 8.

25.20Subd. 2.Trunk Highway Fund

25.21Of this amount, $32,000 is from the bond 25.22proceeds account in the trunk highway fund.25.23EFFECTIVE DATE. The appropriation in 25.24subdivision 2 is void if H.F. 946 is enacted in 25.25the 2007 legislative session.

25.26Sec. 17. BOND SALE SCHEDULE

25.27The commissioner of finance shall schedule 25.28the sale of state general obligation bonds so 25.29that, during the biennium ending June 30, 25.302009, no more than $918,620,000 will need 25.31to be transferred from the general fund to the 25.32state bond fund to pay principal and interest 26.1due and to become due on outstanding 26.2state general obligation bonds. During 26.3the biennium, before each sale of state 26.4general obligation bonds, the commissioner 26.5of finance shall calculate the amount of 26.6debt service payments needed on bonds 26.7previously issued and shall estimate the 26.8amount of debt service payments that will 26.9be needed on the bonds scheduled to be 26.10sold. The commissioner shall adjust the 26.11amount of bonds scheduled to be sold so as 26.12to remain within the limit set by this section. 26.13The amount needed to make the debt service 26.14payments is appropriated from the general 26.15fund as provided in Minnesota Statutes, 26.16section 16A.641.26.17    Sec. 18. BOND SALE AUTHORIZATION.26.18    Subdivision 1.Bond proceeds fund.To provide the money appropriated in this act 26.19from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the 26.20state in an amount up to $111,555,000 in the manner, upon the terms, and with the effect 26.21prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 26.22Constitution, article XI, sections 4 to 7.26.23    Subd. 2.Transportation fund bond proceeds account.To provide the money 26.24appropriated in this article from the state transportation fund, the commissioner of finance 26.25shall sell and issue bonds of the state in an amount up to $30,000,000 in the manner, upon 26.26the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 26.2716A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of 26.28the bonds, except accrued interest and any premium received on the sale of the bonds, 26.29must be credited to a bond proceeds account in the state transportation fund.26.30    Subd. 3.Trunk highway bonds.To provide the money appropriated in this article 26.31from the bond proceeds account in the trunk highway fund, the commissioner of finance 26.32shall sell and issue trunk highway bonds in an amount up to $33,420,000 in the manner, on 26.33the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 26.34and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 26.35requested by the commissioner of transportation. The proceeds of the bonds, except 27.1accrued interest and any premium received on the sale of the bonds, must be credited to 27.2the bond proceeds account in the trunk highway fund.27.3EFFECTIVE DATE.Subdivision 3 is effective unless H.F. 946 is enacted in the 27.42007 legislative session.27.5    Sec. 19. BOND SALE AUTHORIZATION REDUCTIONS.27.6    The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 27.7subdivision 1, is reduced by $2,000,000.27.8    The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is 27.9reduced by $3,282,000.27.10    Sec. 20. Minnesota Statutes 2006, section 16A.695, subdivision 2, is amended to read:27.11    Subd. 2. Leases and management contracts. (a) A public officer or agency that 27.12is authorized by law to lease or enter into a management contract with respect to state 27.13bond financed property shall comply with this subdivision. A reference to a lease or 27.14management contract in this subdivision includes any amendments, modifications, or 27.15alterations to the referenced lease or management contract and refers to the lease wherein 27.16the public officer or agency is the lessor of the state bond financed property and the other 27.17contracting party is the lessee.27.18    (b) The lease or management contract may be entered into for the express purpose of 27.19carrying out a governmental program established or authorized by law and established by 27.20official action of the contracting public officer or agency, in accordance with orders of the 27.21commissioner intended to ensure the legality and tax-exempt status of bonds issued to 27.22finance the property, and with the approval of the commissioner. A lease or management 27.23contract, including any renewals that are solely at the option of the lessee, must be for a 27.24term substantially less than the useful life of the property, but may allow renewal beyond 27.25that term upon a determination by the lessor that the lessee has demonstrated that the use 27.26continues to carry out the governmental program. If the lessor and lessee do not renew the 27.27lease or management contract and if the lessee has contributed to the land and the capital 27.28improvements on the state bond financed property, the lessor may agree to reimburse the 27.29lessee for its investment in the land and capital improvements. The reimbursement may be 27.30paid, at the option of the lessor and lessee, at the time of nonrenewal without a requirement 27.31for a prior escrow of funds or at a later date and on additional terms agreed to by the lessor 27.32and the lessee. A lease or management contract must be terminable by the contracting 27.33public officer or agency if the other contracting party defaults under the contract or if the 27.34governmental program is terminated or changed, and must provide for program oversight 28.1by the contracting public officer or agency. The expiration or termination of a lease or 28.2management agreement does not require that the state bond proceeds be repaid or that 28.3the property be sold, so long as the property continues to be operated by, or on behalf of, 28.4the public officer or agency for the intended governmental program. Money received by 28.5the public officer or agency under the lease or management contract that is not needed 28.6to pay and not authorized to be used to pay operating costs of the property, or to pay the 28.7principal, interest, redemption premiums, and other expenses when due on debt related to 28.8the property other than state bonds, must be:28.9    (1) paid to the commissioner in the same proportion as the state bond financing is 28.10to the total public debt financing for the property, excluding debt issued by a unit of 28.11government for which it has no financial liability;28.12    (2) deposited in the state bond fund; and28.13    (3) used to pay or redeem or defease bonds issued to finance the property in 28.14accordance with the commissioner's order authorizing their issuance.28.15    The money paid to the commissioner is appropriated for this purpose.28.16    (c) With the approval of the commissioner, a lease or management contract between 28.17a city and a nonprofit corporation under section 
         471.191, subdivision 1, need not require 28.18the lessee to pay rentals sufficient to pay the principal, interest, redemption premiums, 28.19and other expenses when due with respect to state bonds issued to acquire and better 28.20the facilities. 28.21EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 28.22and applies to leases, grant agreements, or management agreements entered into on or 28.23after that date.28.24    Sec. 21. Minnesota Statutes 2006, section 16A.695, subdivision 3, is amended to read:28.25    Subd. 3. Sale of property. A public officer or agency shall not sell any state bond 28.26financed property unless the public officer or agency determines by official action that 28.27the property is no longer usable or needed by the public officer or agency to carry out 28.28the governmental program for which it was acquired or constructed, the sale is made as 28.29authorized by law, the sale is made for fair market value, and the sale is approved by the 28.30commissioner. If any state bonds issued to purchase or better the state bond financed 28.31property that is sold remain outstanding on the date of sale, the net proceeds of sale must 28.32be applied as follows:28.33    (1) if the state bond financed property was acquired and bettered solely with state 28.34bond proceeds, the net proceeds of sale must be paid to the commissioner,and deposited 28.35in the state bond fund, and used to pay or redeem or defease the outstanding state bonds in 29.1accordance with the commissioner's order authorizing their issuance, and the proceeds are 29.2appropriated for this purpose treasury; or29.3    (2) if the state bond financed property was acquired or bettered partly with state 29.4bond proceeds and partly with other money, the net proceeds of sale must be used: first, to 29.5pay to the state the amount of state bond proceeds used to acquire or better the property; 29.6second, to pay in full any outstanding public or private debt incurred to acquire or better 29.7the property; and third, to pay interested public and private entities, other than any 29.8public officer or agency or any private lender already paid in full, the amount of money 29.9contributed to the acquisition or betterment of the property; and fourth, any excess over the 29.10amount needed for those purposes must be divided in proportion to the shares contributed 29.11to the acquisition or betterment of the property and paid to the interested public and 29.12private entities, other than any private lender already paid in full, and the proceeds are 29.13appropriated for this purpose. In calculating the share contributed by each entity, the 29.14amount to be attributed to the owner of the property shall be the fair market value of the 29.15property that was bettered by state bond proceeds at the time the betterment began.29.16    When all of the net proceeds of sale have been applied as provided in this 29.17subdivision, this section no longer applies to the property.29.18EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 29.19and applies to leases, grant agreements, or management agreements entered into on or 29.20after that date.29.21    Sec. 22. Minnesota Statutes 2006, section 16A.695, is amended by adding a 29.22subdivision to read:29.23    Subd. 6.Match requirements.Recipients of grants from money appropriated 29.24from the bond proceeds fund may be required to demonstrate a commitment of money 29.25from nonstate sources. This matching money may be pledged payments that have been 29.26deposited into a segregated account or multiyear pledges that are converted into cash or 29.27cash equivalent through a loan or irrevocable letter of credit from a financial institution. 29.28The loan or irrevocable letter of credit may be secured by a lien on the state bond financed 29.29property.29.30EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 29.31and applies to leases, grant agreements, or management agreements entered into on or 29.32after that date.30.1    Sec. 23. Minnesota Statutes 2006, section 16A.695, is amended by adding a 30.2subdivision to read:30.3    Subd. 7.Ground lease for state bond financed property.A public officer or 30.4agency, as lessee, may lease real property and improvements that are to be acquired or 30.5improved with state bond proceeds. The lease must be for a term equal to or longer than 30.6125 percent of the useful life of the property. The expiration of the lease upon the end of 30.7its term does not require that the state be repaid or that the property be sold and upon the 30.8expiration the real property and improvements are no longer state bond financed property.30.9EFFECTIVE DATE.This section is effective retroactively from January 1, 2006, 30.10and applies to leases, grant agreements, or management agreements entered into on or 30.11after that date.30.12    Sec. 24. Minnesota Statutes 2006, section 16A.695, is amended by adding a 30.13subdivision to read:30.14    Subd. 8.General applicability.(a) This section establishes requirements for 30.15the receipt and use of general obligation grants and the ownership and operation of 30.16state bond-financed property. General obligation grants may only be issued and used to 30.17finance the acquisition and betterment of public lands and buildings and other public 30.18improvements of a capital nature that are used to operate a governmental program, and 30.19for predesign and design activities for specifically identified projects that involve the 30.20operation of a governmental program or activity. A general obligation grant may not be 30.21used for general operating expenses, staffing, or general master planning. A public officer 30.22or agency that is the recipient of a general obligation grant must comply with this section 30.23in its use of the general obligation grant and operation, management, lease, and sale 30.24of state bond-financed property. A public officer or agency that uses the proceeds of a 30.25general obligation grant for any unauthorized purpose or in violation of this section must 30.26immediately repay the outstanding balance of the grant to the commissioner, and a failure 30.27to comply authorizes the commissioner to recover the outstanding balance as a setoff 30.28against any state aid provided to the public officer or agency.30.29    (b) This section does not create any new authority regarding the ownership, 30.30construction, rehabilitation, use, operation, lease management, or sale of state 30.31bond-financed property, or the operation of the governmental program that will be 30.32operated on the property. Any authority that is needed to enter into a management contract 30.33or lease of property, to sell property, or to operate a governmental program or carry out 30.34any activity contained in the law that appropriates money for a general obligation grant 30.35must be provided by as contained in some other law.31.1EFFECTIVE DATE.This section is effective on and after July 1, 2007.31.2    Sec. 25. Minnesota Statutes 2006, section 16A.695, is amended by adding a 31.3subdivision to read:31.4    Subd. 9.Grant agreement.All general obligation grants must be evidenced by 31.5a grant agreement that specifies:31.6    (1) how the general obligation grant will be used;31.7    (2) the governmental program that will be operated on the state bond-financed 31.8property; and31.9    (3) that the state bond-financed property must be operated in compliance with this 31.10section, all state and federal laws, and in a manner that will not cause the interest on the 31.11state general obligation bonds to be or become subject to federal income taxation for any 31.12reason. A grant agreement must comply with this section, the Minnesota Constitution, 31.13and all commissioner's orders, and also contain other provisions the commissioner of the 31.14agency making the grant deems appropriate. The commissioner shall draft and make 31.15available forms for grant agreements that satisfy the requirements of this subdivision.31.16EFFECTIVE DATE.This section is effective on and after July 1, 2007.31.17    Sec. 26. Laws 2005, chapter 20, article 1, section 7, subdivision 21, is amended to read:

31.1831.19Subd. 21.State Park and Recreation Area Acquisition2,500,000

31.20For acquisition of land under Minnesota 31.21Statutes, section 
         86A.05, subdivisions 2 and 31.223, from willing sellers of private lands within 31.23state park and recreation area boundaries 31.24established by law.31.25$500,000 is to purchase land within the 31.26boundaries of Greenleaf Lake state park31.27recreation area in Meeker county.31.28    Sec. 27. Laws 2005, chapter 20, article 1, section 17, is amended to read:

31.29Sec. 17.PUBLIC SAFETY642,000

31.30To the commissioner of public safety for 31.31a grant to the Economic Development 31.32Authority in and for the city of Blue Earth 32.1to acquire land for and to predesign, design, 32.2construct, furnish, and equip a fire and 32.3police station. This appropriation is not 32.4available until the commissioner of finance 32.5has determined that at least an equal amount 32.6has been committed to the project from 32.7nonstate sources.32.8EFFECTIVE DATE.This section is effective the day following final enactment.32.9    Sec. 28. Laws 2005, chapter 20, article 1, section 20, subdivision 3, is amended to read:

32.1032.11Subd. 3.Systemwide Redevelopment, Reuse, or Demolition17,600,000

32.12To demolish or improve surplus, 32.13nonfunctional, or deteriorated facilities and 32.14infrastructure at Department of Human 32.15Services campuses statewide.32.16(a) Up to $8,600,000 may be used to 32.17predesign, design, construct, furnish, 32.18and equip renovation of existing space 32.19or construction of new space for skilled 32.20nursing home capacity for forensic treatment 32.21programs operated by state-operated services 32.22on the campus of St. Peter Regional 32.23Treatment Center.32.24(b) $4,000,000 may be used to prepare 32.25and develop a site, including demolition of 32.26buildings and infrastructure, to implement 32.27the redevelopment and reuse of the 32.28Ah-Gwah-Ching Regional Treatment Center 32.29campus. If the property is sold or transferred 32.30to a local unit of government, the unspent 32.31portion of this appropriation may be granted 32.32to the local unit of government that acquires 32.33the campus for the purposes stated in this 32.34subdivision. Notwithstanding Minnesota 33.1Statutes, section 16A.642, this appropriation 33.2and its corresponding bond authorization do 33.3not cancel until June 30, 2010.33.4(c) $1,000,000 may be used to renovate one 33.5or more buildings for chemical dependency 33.6treatment specializing in methamphetamine 33.7addiction, and demolish buildings, on the 33.8Willmar Regional Treatment Center campus. 33.9If the property is sold or transferred to a local 33.10unit of government, the unspent portion of 33.11this appropriation may be granted to the local 33.12unit of government that acquires the campus 33.13for the purposes stated in this subdivision.33.14(d) Up to $2,210,000 may be spent by the 33.15commissioner of finance to retire municipal 33.16bonds issued by the city of Fergus Falls and 33.17to retire interfund loans incurred by the city 33.18of Fergus Falls in connection with the waste 33.19incinerator and steam heating facility at the 33.20Fergus Falls Regional Treatment Center.33.21(e) Up to $400,000 may be used for a grant to 33.22the city of Fergus Falls to demolish the city's 33.23waste-to-energy incineration plant located 33.24on the grounds of the Fergus Falls Regional 33.25Treatment Center.33.26(f) The provisions, terms, and conditions 33.27of any grant made by the director of the 33.28Office of Environmental Assistance under 33.29Minnesota Statutes, chapter 115A, to the 33.30city of Fergus Falls for the waste incinerator 33.31steam heating facility that supports the 33.32Fergus Falls Regional Treatment Center and 33.33that may come into effect as a result of the 33.34incinerator and facility being closed, are 33.35hereby waived.34.1    Sec. 29. Laws 2005, chapter 20, article 1, section 21, subdivision 2, is amended to read:

34.2Subd. 2.Asset Preservation4,000,000

34.3For asset preservation improvements and 34.4betterments of a capital nature at veterans 34.5homes statewide to be spent in accordance 34.6with Minnesota Statutes, section 
         16A.632.34.7Up to $2,200,000 of federal money received 34.8by the Minnesota Veterans Homes Board 34.9of Directors as reimbursement for state 34.10capital expenditures at the veterans homes 34.11must be credited to the general fund and 34.12is appropriated to the commissioner of 34.13administration for asset preservationrepairs 34.14and betterments at the homes in accordance 34.15with Minnesota Statutes, section 16A.632.34.16    Sec. 30. Laws 2005, chapter 20, article 1, section 23, subdivision 8, is amended to read:

34.1734.18Subd. 8.Lewis and Clark Rural Water System, Inc.2,000,000

34.19This appropriation is from the general fund 34.20to the Public Facilities Authority for grants 34.21to the city of Luverne, city of Worthington 34.22Public Utilities, Lincoln-Pipestone rural 34.23water system, and Rock County rural water 34.24systemLewis and Clark Joint Powers 34.25Board to acquire land, predesign, design, 34.26construct, furnish, and equip one or more34.27water transmission and storage facilities to 34.28accommodate the connection with of the 34.29Lewis and Clark Rural Water System, Inc. 34.30that will serve southwestern Minnesota.34.31The grants Payment to the Lewis and Clark 34.32Rural Water System, Inc., must be awarded 34.33to projects approved by the Lewis and Clark 34.34Joint Powers Board.35.1This appropriation is available only to the 35.2extent that each $1 of state money is matched 35.3by at least $1 of local money paid to the 35.4Lewis and Clark Rural Water System, Inc.35.5for each $1 of state money to be used to 35.6reimburse costs incurred on eligible projects.35.7This appropriation is the first phase of the 35.8state share for the Lewis and Clark Rural 35.9Water System, Inc. project as defined in the 35.10federal Lewis and Clark Rural Water System 35.11Act of 2000.35.12    Sec. 31. Laws 2005, chapter 20, article 1, section 23, subdivision 16, is amended to 35.13read:

35.14Subd. 16.Minneapolis

35.15(a) Minnesota Planetarium22,000,000

35.16For a grant to the city of Minneapolis35.17Hennepin County to complete design and 35.18to construct, furnish, and equip a new 35.19Minnesota planetarium and space discovery 35.20center in conjunction with the Minneapolis 35.21downtown library.

35.22(b) Heritage Park

35.23Any unspent balance remaining on December 35.2431, 2004, in the appropriation made by 35.25Laws 2000, chapter 492, article 1, section 35.2622, subdivision 10, for a grant to the city of 35.27Minneapolis, may be used by the city for 35.28improvements to the Heritage Park project.

35.29(c) Minnesota Shubert Center1,000,000

35.30For a grant to the city of Minneapolis to 35.31predesign and design and provide for related 35.32capital costs for an associated atrium to 35.33create the Minnesota Shubert Center.36.1EFFECTIVE DATE.This section is effective on the same date as H.F. 1973/S.F. 36.21812, if enacted in the 2007 legislative session.36.3    Sec. 32. Laws 2005, chapter 156, article 2, section 46, is amended to read:36.4    Sec. 46. FORD BUILDING.36.5    The Ford Building at 117 University Avenue in St. Paul may not be demolished 36.6during the biennium ending before June 30, 2007 2008. By January 15, 2006, the 36.7commissioner of administration, in consultation with interested legislators, private sector 36.8real estate professionals, historic preservation specialists, and representatives of the city of 36.9St. Paul, neighboring property, and St. Paul neighborhood associations, must report to the 36.10legislature with recommendations regarding potential means of preserving and using the 36.11Ford Building. The report must include:36.12    (1) availability of potential lessees for the building;36.13    (2) constraints on leasing the building, including the requirement to pay off any state 36.14general obligation bonds previously used in maintaining or rehabilitating the building; and 36.15    (3) the cost of restoring and rehabilitating the building, and the feasibility of various 36.16means of paying these costs, including potential use of revenue bonds.36.17    Sec. 33. Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:

36.18Subd. 4.MacPhail Music Center5,000,000

36.19(a) For a grant to the city of Minneapolis to 36.20predesign, design, construct, furnish, and 36.21equip a new facility for the MacPhail Center 36.22for Music. The city of Minneapolis may 36.23enter into a lease or management agreement 36.24to operate the center, subject to Minnesota 36.25Statutes, section 
         16A.695. This appropriation 36.26is not available until the commissioner has 36.27determined that not less than $15,000,000 36.28has been committed to the MacPhail Center 36.29for Music from nonstate sources, and that 36.30the available money is sufficient to complete 36.31a functional facility. Money secured before 36.32the effective date of this section may count 36.33toward the required commitment of nonstate 36.34sources, provided it is used for qualified 37.1capital expenditures. Any land acquisition 37.2costs paid by MacPhail Center for Music 37.3qualify as capital expenditures.37.4(b) The city of Minneapolis may provide 37.5money to predesign, design, construct, 37.6furnish, and equip a center for music 37.7education, including classrooms and a 37.8recital hall in the city of Minneapolis, 37.9to provide a facility for education of 37.10students, music therapy programs for 37.11persons with disabilities, music teacher 37.12training opportunities, curriculum and 37.13program development, and to provide the 37.14programming in public and private schools 37.15and in partnership with other organizations 37.16throughout the state.37.17(c) The required demonstration of a 37.18commitment of funds from nonstate sources 37.19has been met by cash, prepaid qualified 37.20expenses, and private multiyear pledges that 37.21have been converted into cash through bond 37.22financing and a letter of credit secured by 37.23a mortgage lien on the state bond financed 37.24property. The $5,000,000 construction grant 37.25shall be disbursed without requirement that 37.26the mortgage lien be released.37.27(d) The commissioners of education and 37.28finance shall agree to a provision in the 37.29ground lease that permits the city of 37.30Minneapolis to purchase for fair market 37.31value, as that term is defined in Minnesota 37.32Statutes, section 16A.695, subdivision 1, 37.33paragraph (d), the interest of the operating 37.34lease lessee in the state bond financed 37.35property (based on investment in land 38.1and capital improvements) in the event of 38.2nonrenewal of the operating lease at the time 38.3of nonrenewal without requirement of a prior 38.4escrow for funds by the city of Minneapolis.38.5EFFECTIVE DATE.This section is effective retroactively from June 2, 2006.38.6    Sec. 34. Laws 2006, chapter 258, section 7, subdivision 3, is amended to read:

38.7Subd. 3.Flood Hazard Mitigation Grants 25,000,000

38.8For the state share of flood hazard 38.9mitigation grants for publicly owned capital 38.10improvements to prevent or alleviate flood 38.11damage under Minnesota  Statutes, section 38.12103F.161.38.13The commissioner shall determine project 38.14priorities as appropriate, based on need.38.15This appropriation includes money for the 38.16following projects:38.17(a) Austin38.18(b) Albert Lea38.19(c) Crookston38.20(d) Canisteo Mine38.21(e) Delano 38.22(f) East Grand Forks38.23(g) Golden Valley38.24(h) Grand Marais Creek38.25(i) Granite Falls38.26(j) Inver Grove Heights38.27(k) Manston Slough38.28(l) Oakport Township38.29(m) Riverton Township38.30(n) Roseau39.1(o) Shell Rock Watershed District39.2(o) (p) St. Vincent39.3(p) (q) Wild Rice River Watershed District39.4For any project listed in this subdivision 39.5that the commissioner determines is not 39.6ready to proceed or does not expend all the 39.7money allocated to it, the commissioner may 39.8allocate that project's money to a project on 39.9the commissioner's priority list.39.10To the extent that the cost of a project in Ada, 39.11Breckenridge, Crookston, Dawson, East 39.12Grand Forks, Granite Falls, Montevideo, 39.13Oakport Township, Roseau, St. Vincent, or 39.14Warren exceeds two percent of the median 39.15household income in the municipality 39.16multiplied by the number of households in 39.17the municipality, this appropriation is also 39.18for the local share of the project. The local 39.19share for the St. Vincent dike may not exceed 39.20$30,000.39.21    Sec. 35. Laws 2006, chapter 258, section 7, subdivision 7, is amended to read:

39.22Subd.  7.Lake Superior safe harbors3,000,000

39.23To design and construct capital  improvements 39.24to public accesses and  small craft harbors on 39.25Lake Superior in accordance with Minnesota 39.26Statutes, sections 
         86A.20 to 
         86A.24, and in 39.27cooperation with the United States Army 39.28Corps of Engineers.39.29This appropriation may be used to develop 39.30the harbor of refuge and marina at Two 39.31Harbors and is added to the appropriations 39.32in Laws 1998, chapter 404, section 7, 39.33subdivision 24; and Laws 2000, chapter 40.1492, article 1, section 7,  subdivision 21, as 40.2amended by Laws 2005, chapter 20, article 40.31, section 42. Notwithstanding those laws, 40.4the commissioner may proceed with the Two 40.5Harbors project by providing up to $625,000 40.6to complete the design specifications and 40.7environmental work currently underway and 40.8proceed with the remaining money for the 40.9project upon securing an agreement with the 40.10U.S. Army Corps of Engineers that commits 40.11federal expenditures of at least $4,000,000 40.12to the project.40.13    Sec. 36. Laws 2006, chapter 258, section 7, subdivision 11, is amended to read:

40.14Subd. 11.Water control structures1,000,000

40.15To rehabilitate or replace water control 40.16structures used to manage shallow lakes and 40.17wetlands for waterfowl habitat on wildlife 40.18management areas under Minnesota Statutes, 40.19section 
         86A.05, subdivision 8, or for the 40.20purposes of public water reserves under 40.21Minnesota Statutes, section 97A.101.40.22    Sec. 37. Laws 2006, chapter 258, section 7, subdivision 22, is amended to read:

40.23Subd. 22.Regional trails1,133,000

40.24For matching grants under Minnesota 40.25Statutes, section 
         85.019, subdivision 4b.40.26$648,000 is for the Agassiz Recreational 40.27ATV Trail. Snowmobile trail grant money 40.28received under Minnesota Statutes, section 40.2984.83, subdivision 3, and all-terrain vehicle 40.30trail grant money received under Minnesota 40.31Statutes, section 84.927, subdivision 2, may 40.32be counted as part of the county's required 50 40.33percent nonstate match.41.1$485,000 is for a grant to the Central 41.2Minnesota Regional Parks and Trails 41.3Coordination Board to design, engineer, 41.4and construct 
         6.3 miles of trail and two 41.5parking areas along the Mississippi River 41.6in Sherburne County, to be known as Xcel 41.7Energy Great River Woodland Trail.41.8    Sec. 38. Laws 2006, chapter 258, section 16, subdivision 4, is amended to read:

41.9Subd. 4.Northstar Commuter Rail60,000,000

41.10(a) To acquire land, or an interest in land, 41.11and to design, construct, furnish, and equip 41.12the Northstar commuter rail line serving 41.13Big Lake to downtown Minneapolis and 41.14to acquire land, or an interest in land, and 41.15to design, construct, furnish, and equip 41.16the extension of the Hiawatha light rail 41.17transit line from its terminus in downtown 41.18Minneapolis to a new terminus near Fifth 41.19Avenue North adjacent to the proposed 41.20downtown Minneapolis commuter rail 41.21station.41.22(b) This appropriation is added to the 41.23appropriation in Laws 2005, chapter 20, 41.24article 1, section 18, subdivision 5.41.25(c) This appropriation is not available until 41.26a full-funding grant agreement has been 41.27executed with, or a letter of no prejudice 41.28for a specific component of the project or 41.29pre-award authority has been issued by, the 41.30Federal Transit Administration.41.31(d) If the Northstar commuter rail line is 41.32extended from Big Lake to the St. Cloud 41.33area, regional rail authority members of the 41.34Northstar Corridor Development Authority 42.1who did not fund a portion of the share 42.2of capital costs from Minneapolis to Big 42.3Lake shall contribute an amount for the 42.4extension equal to the amount they would 42.5have contributed for their proportional share 42.6of the entire line from Minneapolis to the 42.7St. Cloud area.42.8(e) The commissioner of transportation may 42.9encumber money in an account in the special 42.10revenue fund, up to the amount of federal 42.11funding obligated in a multiyear full-funding 42.12grant agreement with the Federal Transit 42.13Administration, for the Northstar Commuter 42.14Rail project.42.15    Sec. 39. Laws 2006, chapter 258, section 21, subdivision 6, is amended to read:

42.16Subd. 6.Redevelopment Account9,000,000

42.17For purposes of the redevelopment account 42.18under Minnesota Statutes, section 
         116J.571.42.19$800,000 is for a grant to the city of 42.20Worthington to remediate contaminated 42.21soil and redevelop the site of the former 42.22Campbell Soup factory. This grant is exempt 42.23from the requirements of Minnesota Statutes, 42.24sections 116J.572 to 116J.575.42.25$250,000 is for a grant to the city of 42.26Winona to predesign facilities for the 42.27Shakespeare Festival as part of the riverfront 42.28redevelopment plan. This grant is exempt 42.29from the requirements of Minnesota Statutes, 42.30sections 
         116J.572 to 
         116J.575.42.31    Sec. 40. Laws 2006, chapter 258, section 21, subdivision 15, is amended to read:

42.3242.33Subd. 15.Lewis and Clark Rural Water System, Inc.3,282,000

43.1This appropriation is from the general fund 43.2to the Public Facilities Authority for  grants 43.3to the city of Luverne, city of Worthington 43.4Public Utilities, Lincoln-Pipestone rural 43.5water system, and Rock County rural water 43.6system Lewis and Clark Joint Powers 43.7Board to acquire land, predesign, design, 43.8construct, furnish, and equip one or more43.9water transmission and storage  facilities to 43.10accommodate the connection with of the 43.11Lewis and Clark Rural Water System, Inc. 43.12that will serve southwestern Minnesota.43.13The grants Payment to the Lewis and Clark 43.14Rural Water System, Inc. must be awarded 43.15to projects approved by the Lewis and Clark 43.16Joint Powers Board.43.17This appropriation is available to the extent 43.18that each $1 of state money is matched by at 43.19least $1 of local money paid to the Lewis and 43.20Clark Rural Water System, Inc. to reimburse 43.21the system for costs incurred on eligible 43.22projects.43.23    Sec. 41. Laws 2006, chapter 258, section 23, subdivision 3, is amended to read:

43.2443.25Subd. 3.Historic Fort Snelling Museum and Visitor Center1,100,000

43.26To design the restoration and renovation of 43.27the 1904 Cavalry Barracks Building for the 43.28historic Fort Snelling Museum and Visitor 43.29Center and other site improvements to 43.30revitalize historic Fort Snelling.43.31    Sec. 42. REPORT ON EAST PHILLIPS CULTURAL AND COMMUNITY 43.32CENTER.43.33    The Metropolitan Council shall report by January 1, 2008, to the legislative 43.34committees with jurisdiction over capital investment on the terms of the grant agreement 44.1and progress on design and construction of the East Phillips Cultural and Community 44.2Center by the Minneapolis Park and Recreation Board with the appropriation in Laws 44.32006, chapter 258, section 17, subdivision 8.44.4    Sec. 43. PUBLIC FACILITIES AUTHORITY FUNDING.44.5    To the greatest practical extent, projects on the Public Facilities Authority's 2007 44.6intended use plan, the listings for which were based on the Pollution Control Agency's 44.72006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 44.8qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 44.9section 21, that could not be certified by the Pollution Control Agency by the applicable 44.10deadline shall have until May 1, 2008, to obtain the required certification from the 44.11Pollution Control Agency.44.12    Sec. 44. EFFECTIVE DATE.44.13    Except as otherwise provided, this act is effective the day following final enactment.