HF 1035

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:28 p.m.

1.1A bill for an act 1.2relating to greenhouse gas emissions reduction; making findings; providing 1.3for city growth areas; imposing certain density limits in unincorporated areas; 1.4prohibiting new incorporations; modifying tax increment financing standards; 1.5prohibiting the use of minimum acreage standards for new school siting; 1.6amending Minnesota Statutes 2008, sections 123B.70, subdivision 1; 462.352, by 1.7adding a subdivision; 462.357, subdivision 1, by adding subdivisions; 462.358, 1.8subdivision 1a; 469.174, by adding a subdivision; 469.176, subdivision 1b, by 1.9adding a subdivision; proposing coding for new law in Minnesota Statutes, 1.10chapter 414; repealing Minnesota Statutes 2008, sections 394.232; 414.02. 1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.12    Section 1. new text begin LEGISLATIVE FINDINGS. new text end 1.13 new text begin The legislature finds that land use reform is a key strategy in the effort to reduce new text end 1.14 new text begin the state's emission of greenhouse gases. Land use reform will reduce the distance and new text end 1.15 new text begin frequency of automobile trips and will encourage walking, bicycling, and the use of transit new text end 1.16 new text begin to get to school and work. new text end 1.17 new text begin The legislature also finds that preservation of agricultural lands, forest, prairie, new text end 1.18 new text begin and open space contributes to a healthy and economically vibrant Minnesota. To new text end 1.19 new text begin preserve agricultural lands, forest, prairie, and open space, and to decrease vehicle miles new text end 1.20 new text begin traveled, economic development policies should give priority to the redevelopment and new text end 1.21 new text begin rehabilitation of existing residential, commercial, industrial, recreational, and institutional new text end 1.22 new text begin structures over the construction of new buildings on undeveloped land. Preservation of new text end 1.23 new text begin Minnesota's agricultural lands, forest, prairie, and open space, as well as the protection and new text end 1.24 new text begin enhancement of our cultural heritage, requires careful planning at all levels of government. new text end 1.25    Sec. 2. Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read: 2.1    Subdivision 1. Commissioner approval. In determining whether to give a school 2.2facility a positive, negative, or unfavorable review and comment, the commissioner must 2.3evaluate the proposals for facilities using the information provided under section 123B.71, 2.4subdivision 9 . new text begin The commissioner may evaluate the proposals using the most recent new text end 2.5 new text begin "Guide for Planning School Construction in Minnesota" prepared by the Department new text end 2.6 new text begin of Education, but must not issue a negative or unfavorable review and comment under new text end 2.7 new text begin this section for a school facility based on the acreage of the proposed school site. The new text end 2.8 new text begin commissioner must evaluate the energy and environmental impact of any new school new text end 2.9 new text begin facility. If a school is proposed for a new site, the commissioner must examine the energy new text end 2.10 new text begin costs associated with that facility, including the change in pupil transportation costs, and new text end 2.11 new text begin the costs of establishing new infrastructure, including roads, sidewalks, and utility lines. new text end 2.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for review and comments issued new text end 2.13 new text begin after July 1, 2009. new text end 2.14    Sec. 3. new text begin [414.023] INCORPORATIONS PROHIBITED AFTER JUNE 1, 2009. new text end 2.15 new text begin The chief administrative law judge must not order any municipal incorporations new text end 2.16 new text begin after June 1, 2009. new text end 2.17    Sec. 4. Minnesota Statutes 2008, section 462.352, is amended by adding a subdivision 2.18to read: 2.19     new text begin Subd. 1a. new text end new text begin City. new text end new text begin "City" means a statutory or home rule charter city. new text end 2.20    Sec. 5. Minnesota Statutes 2008, section 462.357, subdivision 1, is amended to read: 2.21    Subdivision 1. Authority for zoning. For the purpose of promoting the public 2.22health, safety, morals, and general welfare, a municipality may by ordinance regulate 2.23on the earth's surface, in the air space above the surface, and in subsurface areas, the 2.24location, height, width, bulk, type of foundation, number of stories, size of buildings 2.25and other structures, the percentage of lot which may be occupied, the size of yards and 2.26other open spaces, the density and distribution of population, the uses of buildings and 2.27structures for trade, industry, residence, recreation, public activities, or other purposes, 2.28and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil 2.29conservation, water supply conservation, conservation of shorelands, as defined in 2.30sections 103F.201 to 103F.221, access to direct sunlight for solar energy systems as 2.31defined in section 216C.06, flood control or other purposes, and may establish standards 2.32and procedures regulating such uses. To accomplish these purposes, official controls may 2.33include provision for purchase of development rights by the governing body in the form of 3.1conservation easements under chapter 84C in areas where the governing body considers 3.2preservation desirable and the transfer of development rights from those areas to areas the 3.3governing body considers more appropriate for development. No regulation may prohibit 3.4earth sheltered construction as defined in section 216C.06, subdivision 14, relocated 3.5residential buildings, or manufactured homes built in conformance with sections 327.31 3.6to 327.35 that comply with all other zoning ordinances promulgated pursuant to this 3.7section. The regulations may divide the surface, above surface, and subsurface areas of the 3.8municipality into districts or zones of suitable numbers, shape, and area. The regulations 3.9shall be uniform for each class or kind of buildings, structures, or land and for each class 3.10or kind of use throughout such district, but the regulations in one district may differ from 3.11those in other districts. The ordinance embodying these regulations shall be known 3.12as the zoning ordinance and shall consist of text and maps. A city may by ordinance 3.13extend the application of its zoning regulations to unincorporated territory located within 3.14two miles of its limits in any direction, but not in a county or town which has adopted 3.15zoning regulations; provided that where two or more noncontiguous municipalities have 3.16boundaries less than four miles apart, each is authorized to control the zoning of land on 3.17its side of a line equidistant between the two noncontiguous municipalities unless a town 3.18or county in the affected area has adopted zoning regulations. Any city may thereafter 3.19enforce such regulations in the area to the same extent as if such property were situated 3.20within its corporate limits, until the county or town board adopts a comprehensive zoning 3.21regulation which includes the area. 3.22    Sec. 6. Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision 3.23to read: 3.24     new text begin Subd. 1i. new text end new text begin Limited residential densities in unincorporated areas. new text end new text begin (a) This new text end 3.25 new text begin subdivision does not apply to unincorporated areas within a city's designated growth new text end 3.26 new text begin boundary, areas that are subdivided and for which there is a recorded plat as of February new text end 3.27 new text begin 1, 2009, areas governed by shoreland regulations and zoning, or parcels classified as new text end 3.28 new text begin noncommercial seasonal residential recreational property for property tax purposes. new text end 3.29 new text begin (b) Unincorporated areas with no more than one residential unit per 40 acres as new text end 3.30 new text begin of August 1, 2009, must not be developed with residential densities greater than one new text end 3.31 new text begin unit per 40 acres. If the unincorporated area has a residential density greater than one new text end 3.32 new text begin residential unit per 40 acres as of August 1, 2009, the density must not be increased. A new text end 3.33 new text begin county may enact a new or enforce an existing cluster development ordinance provided new text end 3.34 new text begin that the ordinance: new text end 4.1 new text begin (1) limits the maximum number of dwelling units to no more than 150 percent of the new text end 4.2 new text begin number otherwise permitted in the zoning district; new text end 4.3 new text begin (2) limits lot sizes to no larger than two acres; and new text end 4.4 new text begin (3) includes cluster development site standards designed to avoid development on, new text end 4.5 new text begin fragmentation of, or interference with prime farmland soils, tillable farmland, large tracks new text end 4.6 new text begin of land in agricultural use, woodlands, and other significant stands of vegetation. new text end 4.7    Sec. 7. Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision 4.8to read: 4.9     new text begin Subd. 10. new text end new text begin City growth areas. new text end new text begin (a) A city may create a growth area by ordinance new text end 4.10 new text begin when the city council determines that: new text end 4.11 new text begin (1) population growth demands more housing than can be developed in the space new text end 4.12 new text begin available within the city, or growth in commercial or industrial use requires more space new text end 4.13 new text begin than available within the city; new text end 4.14 new text begin (2) planning of city services is necessary to facilitate the growth; and new text end 4.15 new text begin (3) the city has the capacity and willingness to extend city services such as sewer new text end 4.16 new text begin and water throughout the growth area. new text end 4.17 new text begin A city must not include in the growth area any area to which it is not willing or able to new text end 4.18 new text begin extend sewer or water services. An area is appropriate to be included in a city's growth new text end 4.19 new text begin area to the extent that future development within the growth area will maximize existing new text end 4.20 new text begin transportation, water, sewer, and other municipal infrastructure, while avoiding to the new text end 4.21 new text begin extent practicable the development of class A agricultural land. Upon making the findings new text end 4.22 new text begin in this paragraph and after the county review and public hearings in paragraph (b), the new text end 4.23 new text begin city may designate the growth area and update its comprehensive plan to include the new text end 4.24 new text begin growth area. new text end 4.25 new text begin (b) Before designating the growth area, the city must hold a hearing to present to the new text end 4.26 new text begin public its proposed findings for a designated growth area. Notice of the hearing must be new text end 4.27 new text begin published in the city and in the proposed designated growth area. Members of the public new text end 4.28 new text begin must be given a reasonable opportunity to present their comments. The city also must new text end 4.29 new text begin provide the proposed findings and designated growth area to the county planning authority new text end 4.30 new text begin of each county affected. Each county has 45 days to review and comment on the proposal. new text end 4.31 new text begin The city may but is not required to make changes to its proposed designated growth new text end 4.32 new text begin area based on comments from the public and each affected county. After receiving and new text end 4.33 new text begin considering the comments and before adopting the growth area ordinance, the city must new text end 4.34 new text begin provide notice and hold a second public hearing to present its findings and designated new text end 4.35 new text begin growth area, and any changes made to them based on comments received by the city. new text end 5.1 new text begin (c) A city's growth area may extend into the unincorporated area beyond the city new text end 5.2 new text begin limits in any direction. If more than one city claims the same unincorporated area for its new text end 5.3 new text begin growth area, an administrative law judge will determine which city is best positioned to new text end 5.4 new text begin serve the area weighing factors that include existing development and population growth new text end 5.5 new text begin patterns; existing transportation infrastructure; impact on vehicle miles traveled from area new text end 5.6 new text begin to regional amenities, schools, jobs, and governmental services; and the overall costs new text end 5.7 new text begin of extending services to the area. new text end 5.8 new text begin (d) If the city's growth area includes land zoned by the county or town for new text end 5.9 new text begin agricultural use at the time the growth area ordinance is adopted, that land continues to new text end 5.10 new text begin be subject only to the county's or town's official controls for agricultural use. When the new text end 5.11 new text begin county, city, or town receives a request to change the zoning classification of that land to a new text end 5.12 new text begin nonagricultural use, it becomes subject to the city's land use controls. new text end 5.13 new text begin (e) Except as provided in paragraph (d), a city has the exclusive right to plan, adopt, new text end 5.14 new text begin and enforce official controls in its growth area as though the area were within the city. new text end 5.15 new text begin Planning and development in the growth area must be at densities that are consistent new text end 5.16 new text begin with the rest of the city. new text end 5.17 new text begin (f) Growth areas must be reviewed by the city council at least every ten years. new text end 5.18 new text begin (g) As development occurs in the growth area and sewer and water service is new text end 5.19 new text begin extended to the development, that part of the growth area may be annexed to the city new text end 5.20 new text begin by ordinance following the procedures in chapter 414. Annexation by ordinance under new text end 5.21 new text begin this paragraph is not subject to the conditions for annexation by ordinance in section new text end 5.22 new text begin 414.033, subdivision 2. new text end 5.23 new text begin (h) A city that has established a growth area must file its growth area ordinance and new text end 5.24 new text begin maps with the Office of Administrative Hearings municipal boundary adjustments. new text end 5.25    Sec. 8. Minnesota Statutes 2008, section 462.358, subdivision 1a, is amended to read: 5.26    Subd. 1a. Authority. To protect and promote the public health, safety, and general 5.27welfare, to provide for the orderly, economic, and safe development of land, to preserve 5.28agricultural lands, to promote the availability of housing affordable to persons and families 5.29of all income levels, and to facilitate adequate provision for transportation, water, sewage, 5.30storm drainage, schools, parks, playgrounds, and other public services and facilities, a 5.31municipality may by ordinance adopt subdivision regulations establishing standards, 5.32requirements, and procedures for the review and approval or disapproval of subdivisions. 5.33The regulations may contain varied provisions respecting, and be made applicable only 5.34to, certain classes or kinds of subdivisions. The regulations shall be uniform for each 5.35class or kind of subdivision. 6.1A municipality may by resolution extend the application of its subdivision 6.2regulations to unincorporated territory located within two miles of its limits in any 6.3direction but not in a town which has adopted subdivision regulations; provided that where 6.4two or more noncontiguous municipalities have boundaries less than four miles apart, 6.5each is authorized to control the subdivision of land equal distance from its boundaries 6.6within this area. 6.7    Sec. 9. Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision 6.8to read: 6.9     new text begin Subd. 10c. new text end new text begin Compact development district. new text end new text begin "Compact development district" means new text end 6.10 new text begin a type of tax increment financing district consisting of a project, or portions of a project, new text end 6.11 new text begin within which the authority finds by resolution that the following conditions are satisfied: new text end 6.12 new text begin (1) parcels consisting of 70 percent of the area of the district are occupied by new text end 6.13 new text begin buildings or other structures that are classified as class 3a property under section 273.13, new text end 6.14 new text begin subdivision 24; and new text end 6.15 new text begin (2) the planned redevelopment or development of the district, when completed, will new text end 6.16 new text begin increase the total square footage of buildings, classified as class 3a under section 273.13, new text end 6.17 new text begin subdivision 24, occupying the district by three times or more relative to the square footage new text end 6.18 new text begin of similar buildings occupying the district when the resolution was approved. new text end 6.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 6.20 new text begin certification is made after June 30, 2009. new text end 6.21    Sec. 10. Minnesota Statutes 2008, section 469.176, subdivision 1b, is amended to read: 6.22    Subd. 1b. Duration limits; terms. (a) No tax increment shall in any event be 6.23paid to the authority 6.24(1) after 15 years after receipt by the authority of the first increment for a renewal 6.25and renovation district, 6.26(2) after 20 years after receipt by the authority of the first increment for a soils 6.27condition district, 6.28(3) after eight years after receipt by the authority of the first increment for an 6.29economic development district, 6.30(4) for a housing district new text begin , a compact development district, new text end or a redevelopment 6.31district, after 25 years from the date of receipt by the authority of the first increment. 6.32(b) For purposes of determining a duration limit under this subdivision or subdivision 6.331e that is based on the receipt of an increment, any increments from taxes payable in 6.34the year in which the district terminates shall be paid to the authority. This paragraph 7.1does not affect a duration limit calculated from the date of approval of the tax increment 7.2financing plan or based on the recovery of costs or to a duration limit under subdivision 7.31c. This paragraph does not supersede the restrictions on payment of delinquent taxes in 7.4subdivision 1f. 7.5(c) An action by the authority to waive or decline to accept an increment has no 7.6effect for purposes of computing a duration limit based on the receipt of increment under 7.7this subdivision or any other provision of law. The authority is deemed to have received an 7.8increment for any year in which it waived or declined to accept an increment, regardless 7.9of whether the increment was paid to the authority. 7.10(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 7.11reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 7.12(b), does not constitute receipt of increment by the overlying district for the purpose of 7.13calculating the duration limit under this section. 7.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 7.15 new text begin certification is made after June 30, 2009. new text end 7.16    Sec. 11. Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision 7.17to read: 7.18     new text begin Subd. 1i. new text end new text begin Compact development districts. new text end new text begin Tax increments derived from a compact new text end 7.19 new text begin development district may only be used to pay: new text end 7.20 new text begin (1) administrative expenses up to the amount permitted under subdivision 3; new text end 7.21 new text begin (2) the cost of acquiring land located in the district or abutting the boundary of new text end 7.22 new text begin the district; new text end 7.23 new text begin (3) demolition and removal of buildings or other improvements and other site new text end 7.24 new text begin preparation costs for lands located in the district or abutting the boundary of the district; new text end 7.25 new text begin and new text end 7.26 new text begin (4) installation of public infrastructure or public improvements serving the district, new text end 7.27 new text begin but excluding the costs of streets, roads, highways, parking, or other public improvements new text end 7.28 new text begin primarily designed to serve private passenger motor vehicles. new text end 7.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for districts for which the request for new text end 7.30 new text begin certification is made after June 30, 2009. new text end 7.31    Sec. 12. new text begin REPEALER. new text end 7.32 new text begin Minnesota Statutes 2008, sections 394.232; and 414.02, new text end new text begin are repealed. new text end