<a id="pl.1.3"></a><var>1.3</var>neighborhood revitalization program; creating a revolving fund; regulating tax <br/>
<a id="pl.1.4"></a><var>1.4</var>increment financing expenditures; appropriating money; amending Minnesota <br/>
<a id="pl.1.5"></a><var>1.5</var>Statutes 2008, sections 469.201, subdivisions 2, 4, 6, 7, 10, 11, 12; 469.202; <br/>
<a id="pl.1.6"></a><var>1.6</var>469.203, subdivisions 1, 2, 4; 469.204, subdivision 1, by adding a subdivision; <br/>
<a id="pl.1.7"></a><var>1.7</var>469.205; 469.207, subdivision 2; Laws 2008, chapter 366, article 5, section 37; <br/>
<a id="pl.1.8"></a><var>1.8</var>repealing Minnesota Statutes 2008, sections 469.203, subdivision 3; 469.204, <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivisions 2, 3.<br/>
<a id="pl.1.10"></a><var>1.10</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.11"></a><var>1.11</var>    Section 1. Minnesota Statutes 2008, section 469.201, subdivision 2, is amended to read:<br/>
<a id="pl.1.12"></a><var>1.12</var>    Subd. 2. <b>City.</b> "City" means a city of the first class as defined in section 
<statute_ref>410.01</statute_ref> and <br/>
<a id="pl.1.13"></a><var>1.13</var>a city of the second class that is designated as an economically depressed area by the <br/>
<a id="pl.1.14"></a><var>1.14</var>United States Department of Commerce any statutory or home rule charter city, town, or <br/>
<a id="pl.1.15"></a><var>1.15</var>township. For each city, a port authority, housing and redevelopment authority, or other <br/>
<a id="pl.1.16"></a><var>1.16</var>agency or instrumentality, the jurisdiction of which is the territory of the city, is included <br/>
<a id="pl.1.17"></a><var>1.17</var>within the meaning of city.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.18"></a><var>1.18</var>    Sec. 2. Minnesota Statutes 2008, section 469.201, subdivision 4, is amended to read:<br/>
<a id="pl.1.19"></a><var>1.19</var>    Subd. 4. <b>City matching money.</b> (a) "City matching money" means the money of a <br/>
<a id="pl.1.20"></a><var>1.20</var>city specified in a targeted revitalization program. The sources of city matching money <br/>
<a id="pl.1.21"></a><var>1.21</var>may include:<br/>
<a id="pl.1.22"></a><var>1.22</var>(1) money from the general fund or a special fund of a city used to implement a <br/>
<a id="pl.1.23"></a><var>1.23</var>targeted revitalization program;<br/>
<a id="pl.2.1"></a><var>2.1</var>(2) money paid or repaid to a city from the proceeds of a grant that a city has <br/>
<a id="pl.2.2"></a><var>2.2</var>received from the federal government, a profit or nonprofit corporation, or another entity <br/>
<a id="pl.2.3"></a><var>2.3</var>or individual, that is to be used to implement a targeted revitalization program;<br/>
<a id="pl.2.4"></a><var>2.4</var>(3) tax increments received by a city under sections 
         <statute_ref>469.174</statute_ref> to 
         <statute_ref>469.179</statute_ref> or other law, <br/>
<a id="pl.2.5"></a><var>2.5</var>if eligible, to be spent in the targeted neighborhood community;<br/>
<a id="pl.2.6"></a><var>2.6</var>(4) the greater of the fair market value or the cost to the city of acquiring land, <br/>
<a id="pl.2.7"></a><var>2.7</var>buildings, equipment, or other real or personal property that a city contributes, grants, <br/>
<a id="pl.2.8"></a><var>2.8</var>leases, or loans to a profit or nonprofit corporation or other entity or individual, in <br/>
<a id="pl.2.9"></a><var>2.9</var>connection with the implementation of a targeted revitalization program;<br/>
<a id="pl.2.10"></a><var>2.10</var>(5) city money to be used to acquire, install, reinstall, repair, or improve the <br/>
<a id="pl.2.11"></a><var>2.11</var>infrastructure facilities of a targeted neighborhood community;<br/>
<a id="pl.2.12"></a><var>2.12</var>(6) money contributed by a city to pay issuance costs, fund bond reserves, or to <br/>
<a id="pl.2.13"></a><var>2.13</var>otherwise provide financial support for revenue bonds or obligations issued by a city for a <br/>
<a id="pl.2.14"></a><var>2.14</var>project or program related to the implementation of a targeted revitalization program;<br/>
<a id="pl.2.15"></a><var>2.15</var>(7) money derived from fees received by a city in connection with its community <br/>
<a id="pl.2.16"></a><var>2.16</var>development activities that are to be used in implementing a targeted revitalization <br/>
<a id="pl.2.17"></a><var>2.17</var>program;<br/>
<a id="pl.2.18"></a><var>2.18</var>(8) money derived from the apportionment to the city under section 
         <statute_ref>162.14</statute_ref> or by <br/>
<a id="pl.2.19"></a><var>2.19</var>special law, and expended in a targeted neighborhood community for an activity related to <br/>
<a id="pl.2.20"></a><var>2.20</var>the targeted revitalization program;<br/>
<a id="pl.2.21"></a><var>2.21</var>(9) administrative expenses of the city that are incurred in connection with the <br/>
<a id="pl.2.22"></a><var>2.22</var>planning, implementation, or reporting requirements of sections 
         <statute_ref>469.201</statute_ref> to 
         <statute_ref>469.207</statute_ref>.<br/>
<a id="pl.2.23"></a><var>2.23</var>(b) City matching money does not include:<br/>
<a id="pl.2.24"></a><var>2.24</var>(1) city money used to provide a service or to exercise a function that is ordinarily <br/>
<a id="pl.2.25"></a><var>2.25</var>provided throughout the city, unless an increased level of the service or function is <br/>
<a id="pl.2.26"></a><var>2.26</var>to be provided in a targeted neighborhood community in accordance with a targeted <br/>
<a id="pl.2.27"></a><var>2.27</var>revitalization program;<br/>
<a id="pl.2.28"></a><var>2.28</var>(2) the proceeds of bonds issued by the city under chapter 462C or 469 and payable <br/>
<a id="pl.2.29"></a><var>2.29</var>solely from repayments made by one or more nongovernmental persons in consideration <br/>
<a id="pl.2.30"></a><var>2.30</var>for the financing provided by the bonds; or<br/>
<a id="pl.2.31"></a><var>2.31</var>(3) money given by the state to fund any part of the targeted revitalization program.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.32"></a><var>2.32</var>    Sec. 3. Minnesota Statutes 2008, section 469.201, subdivision 6, is amended to read:<br/>
<a id="pl.2.33"></a><var>2.33</var>    Subd. 6. <b>Housing activities.</b> "Housing activities" include any work or undertaking <br/>
<a id="pl.2.34"></a><var>2.34</var>to provide housing and related services and amenities primarily for persons and families of <br/>
<a id="pl.2.35"></a><var>2.35</var>low or moderate income. This work or undertaking may include, the planning of buildings <br/>
<a id="pl.3.1"></a><var>3.1</var>and improvements; the acquisition of real property, which may be needed immediately <br/>
<a id="pl.3.2"></a><var>3.2</var>to address vacancies, foreclosures, and preservation of housing now  or in the future for <br/>
<a id="pl.3.3"></a><var>3.3</var>housing purposes and the; demolition of any existing improvements; activities to address <br/>
<a id="pl.3.4"></a><var>3.4</var>lead abatement, energy efficiencies, or other activities related to the health of a building; <br/>
<a id="pl.3.5"></a><var>3.5</var>and the construction, reconstruction, alteration, and repair of new and existing buildings. <br/>
<a id="pl.3.6"></a><var>3.6</var>Housing activities also include the provision of a housing rehabilitation and energy <br/>
<a id="pl.3.7"></a><var>3.7</var>improvement loan and grant program with respect to any residential property located <br/>
<a id="pl.3.8"></a><var>3.8</var>within the targeted neighborhood community, the cost of relocation relating to acquiring <br/>
<a id="pl.3.9"></a><var>3.9</var>property for housing activities, and programs authorized by chapter 462C.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.10"></a><var>3.10</var>    Sec. 4. Minnesota Statutes 2008, section 469.201, subdivision 7, is amended to read:<br/>
<a id="pl.3.11"></a><var>3.11</var>    Subd. 7. <b>Lost unit.</b> "Lost unit" means a rental housing unit that has been vacant <br/>
<a id="pl.3.12"></a><var>3.12</var>for more than six months or has been condemned for code violations,  that is lost as a <br/>
<a id="pl.3.13"></a><var>3.13</var>result of revitalization activities because it is demolished, converted to an owner-occupied <br/>
<a id="pl.3.14"></a><var>3.14</var>unit that is not a cooperative, or converted to a nonresidential use, or because the gross <br/>
<a id="pl.3.15"></a><var>3.15</var>rent to be charged exceeds 125 percent of the gross rent charged for the unit six months <br/>
<a id="pl.3.16"></a><var>3.16</var>before the start of rehabilitation.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.17"></a><var>3.17</var>    Sec. 5. Minnesota Statutes 2008, section 469.201, subdivision 10, is amended to read:<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 10. <b>Targeted </b><b>neighborhood</b><b> </b><b>community</b><b>.</b> "Targeted neighborhood <br/>
<a id="pl.3.19"></a><var>3.19</var>community" means an area including one or more census tracts, as determined and <br/>
<a id="pl.3.20"></a><var>3.20</var>measured by the Bureau of Census of the United States Department of Commerce, that <br/>
<a id="pl.3.21"></a><var>3.21</var>a city council determines in a resolution adopted under section 
         <statute_ref>469.202, subdivision 1</statute_ref>, <br/>
<a id="pl.3.22"></a><var>3.22</var>meets the criteria of section 
         <statute_ref>469.202, subdivision 2</statute_ref>, and any additional area designated <br/>
<a id="pl.3.23"></a><var>3.23</var>under section 
         <statute_ref>469.202, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.3.24"></a><var>3.24</var>    Sec. 6. Minnesota Statutes 2008, section 469.201, subdivision 11, is amended to read:<br/>
<a id="pl.3.25"></a><var>3.25</var>    Subd. 11. <b>Targeted </b><b>neighborhood</b><b> community</b><b> money.</b> "Targeted neighborhood <br/>
<a id="pl.3.26"></a><var>3.26</var>community money" means the money designated in the targeted  revitalization program to <br/>
<a id="pl.3.27"></a><var>3.27</var>be used to implement the targeted  revitalization program.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.3.28"></a><var>3.28</var>    Sec. 7. Minnesota Statutes 2008, section 469.201, subdivision 12, is amended to read:<br/>
<a id="pl.3.29"></a><var>3.29</var>    Subd. 12. <b>Targeted </b><b>neighborhood</b><b> community</b><b> revitalization and financing </b><br/>
<a id="pl.3.30"></a><var>3.30</var><b>program.</b> "Targeted neighborhood community revitalization and financing program," <br/>
<a id="pl.3.31"></a><var>3.31</var>"revitalization program," or "program" means the targeted neighborhood community <br/>
<a id="pl.3.32"></a><var>3.32</var>revitalization and financing program adopted in accordance with section 
         <statute_ref>469.203</statute_ref>.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.4.1"></a><var>4.1</var>    Sec. 8. Minnesota Statutes 2008, section 469.202, is amended to read:<br/>
<a id="pl.4.2"></a><var>4.2</var><b>469.202 DESIGNATION OF TARGETED </b><b>NEIGHBORHOODS</b><b> </b><br/>
<a id="pl.4.3"></a><var>4.3</var><b>COMMUNITIES</b><b>.</b><br/>
<a id="pl.4.4"></a><var>4.4</var>    Subdivision 1. <b>City authority.</b> A city may by resolution designate a targeted <br/>
<a id="pl.4.5"></a><var>4.5</var>neighborhoods community within its borders after adopting detailed findings that the <br/>
<a id="pl.4.6"></a><var>4.6</var>designated neighborhoods communities meet the eligibility requirements in subdivision 2 <br/>
<a id="pl.4.7"></a><var>4.7</var>or 3.<br/>
<a id="pl.4.8"></a><var>4.8</var>    Subd. 2. <b>Eligibility requirements for targeted </b><b>neighborhoods</b><b> communities</b><b>.</b> An <br/>
<a id="pl.4.9"></a><var>4.9</var>area within a city is eligible for designation as a targeted neighborhood community if the <br/>
<a id="pl.4.10"></a><var>4.10</var>area meets two three of the following three four criteria:<br/>
<a id="pl.4.11"></a><var>4.11</var>(a) The area had an unemployment rate that was twice the unemployment rate for <br/>
<a id="pl.4.12"></a><var>4.12</var>the Minneapolis and Saint Paul standard metropolitan statistical area as determined by <br/>
<a id="pl.4.13"></a><var>4.13</var>the most recent federal decennial census.<br/>
<a id="pl.4.14"></a><var>4.14</var>(b) The median household income in the area was no more than half 80 percent of <br/>
<a id="pl.4.15"></a><var>4.15</var> the median household income for the Minneapolis and Saint Paul standard metropolitan <br/>
<a id="pl.4.16"></a><var>4.16</var>statistical area as determined by the most recent federal decennial census.<br/>
<a id="pl.4.17"></a><var>4.17</var>(c) The area is characterized by residential dwelling units in need of substantial <br/>
<a id="pl.4.18"></a><var>4.18</var>rehabilitation. An area qualifies under this paragraph if 25 percent or more of the <br/>
<a id="pl.4.19"></a><var>4.19</var>residential dwelling units are in substandard condition as determined by the city, or if 70 <br/>
<a id="pl.4.20"></a><var>4.20</var>percent or more of the residential dwelling units in the area were built before 1940 1960 as <br/>
<a id="pl.4.21"></a><var>4.21</var>determined by the most recent federal decennial census.<br/>
<a id="pl.4.22"></a><var>4.22</var>(d) The area is characterized by having a disproportionate number of vacant <br/>
<a id="pl.4.23"></a><var>4.23</var>residential buildings and mortgage foreclosures. An area qualifies under this paragraph <br/>
<a id="pl.4.24"></a><var>4.24</var>if it has either:<br/>
<a id="pl.4.25"></a><var>4.25</var>(1) a foreclosure rate of at least 1.5 percent in 2008; or<br/>
<a id="pl.4.26"></a><var>4.26</var>(2) a foreclosure rate in 2008 in the city or in a zip code area of the city that is at <br/>
<a id="pl.4.27"></a><var>4.27</var>least 50 percent higher than the average foreclosure rate in the metropolitan area, as <br/>
<a id="pl.4.28"></a><var>4.28</var>defined in section 473.121, subdivision 2. For purposes of this paragraph, "foreclosure <br/>
<a id="pl.4.29"></a><var>4.29</var>rate" means the number of foreclosures, as indicated by sheriff sales records, divided by <br/>
<a id="pl.4.30"></a><var>4.30</var>the number of households in the city in 2007.<br/>
<a id="pl.4.31"></a><var>4.31</var>    Subd. 3. <b>Additional area eligible for inclusion in targeted </b><b>neighborhood</b><b> </b><br/>
<a id="pl.4.32"></a><var>4.32</var><b>community</b><b>.</b> (a) A city may add to the area designated as a targeted neighborhood <br/>
<a id="pl.4.33"></a><var>4.33</var>community under subdivision 2 additional area extending up to four contiguous city <br/>
<a id="pl.4.34"></a><var>4.34</var>blocks in all directions from the designated targeted neighborhood community. For the <br/>
<a id="pl.4.35"></a><var>4.35</var>purpose of this subdivision, "city block" has the meaning determined by the city; or<br/>
<a id="pl.5.1"></a><var>5.1</var>(b) The city may enlarge the targeted neighborhood community to include portions <br/>
<a id="pl.5.2"></a><var>5.2</var>of a census tract that is contiguous to a targeted neighborhood community, provided that <br/>
<a id="pl.5.3"></a><var>5.3</var>the city council first determines the additional area satisfies two three of the three four <br/>
<a id="pl.5.4"></a><var>5.4</var>criteria in subdivision 2.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.5.5"></a><var>5.5</var>    Sec. 9. Minnesota Statutes 2008, section 469.203, subdivision 1, is amended to read:<br/>
<a id="pl.5.6"></a><var>5.6</var>    Subdivision 1. <b>Requirements.</b> For each targeted neighborhood community for <br/>
<a id="pl.5.7"></a><var>5.7</var>which a city requests state financial assistance under section 
         <statute_ref>469.204</statute_ref>, the city must <br/>
<a id="pl.5.8"></a><var>5.8</var>prepare a comprehensive revitalization and financing program that includes the following:<br/>
<a id="pl.5.9"></a><var>5.9</var>(1) the revitalization objectives of the city for the targeted neighborhood community;<br/>
<a id="pl.5.10"></a><var>5.10</var>(2) the specific activities or means by which the city intends to pursue and implement <br/>
<a id="pl.5.11"></a><var>5.11</var>the revitalization objectives;<br/>
<a id="pl.5.12"></a><var>5.12</var>(3) the extent to which the activities identified in clause (2) will benefit low- <br/>
<a id="pl.5.13"></a><var>5.13</var>and moderate-income families, will alleviate the blighted condition of the targeted <br/>
<a id="pl.5.14"></a><var>5.14</var>neighborhood community, or will otherwise assist in the revitalization of the targeted <br/>
<a id="pl.5.15"></a><var>5.15</var>neighborhood community;<br/>
<a id="pl.5.16"></a><var>5.16</var>(4) a statement of the intended outcomes to be achieved by implementation of the <br/>
<a id="pl.5.17"></a><var>5.17</var>targeted revitalization program, how the outcomes will be measured both qualitatively and <br/>
<a id="pl.5.18"></a><var>5.18</var>quantitatively, and the estimated time over which they will occur; and<br/>
<a id="pl.5.19"></a><var>5.19</var>(5) a financing program and budget that identifies the financial resources necessary <br/>
<a id="pl.5.20"></a><var>5.20</var>to implement the targeted revitalization program, including:<br/>
<a id="pl.5.21"></a><var>5.21</var>(i) the estimated total cost to implement the targeted revitalization program;<br/>
<a id="pl.5.22"></a><var>5.22</var>(ii) the estimated cost to implement each activity in the revitalization program <br/>
<a id="pl.5.23"></a><var>5.23</var>identified in clause (2);<br/>
<a id="pl.5.24"></a><var>5.24</var>(iii) the estimated amount of financial resources that will be available from all <br/>
<a id="pl.5.25"></a><var>5.25</var>sources other than from the appropriation available under section 
         <statute_ref>469.204</statute_ref> to implement <br/>
<a id="pl.5.26"></a><var>5.26</var>the revitalization program, including the amount of private investment expected to result <br/>
<a id="pl.5.27"></a><var>5.27</var>from the use of public money in the targeted neighborhood community;<br/>
<a id="pl.5.28"></a><var>5.28</var>(iv) the estimated amount of the appropriation available under section 
         <statute_ref>469.204</statute_ref> that <br/>
<a id="pl.5.29"></a><var>5.29</var>will be necessary to implement the targeted revitalization program;<br/>
<a id="pl.5.30"></a><var>5.30</var>(v) a description of the activities identified in the targeted revitalization program for <br/>
<a id="pl.5.31"></a><var>5.31</var>which the state appropriation will be committed or spent; and<br/>
<a id="pl.5.32"></a><var>5.32</var>(vi) a statement of how the city intends to meet the requirement for a financial <br/>
<a id="pl.5.33"></a><var>5.33</var>contribution from city matching money in accordance with section 
         <statute_ref>469.204, subdivision 3</statute_ref>.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.5.34"></a><var>5.34</var>    Sec. 10. Minnesota Statutes 2008, section 469.203, subdivision 2, is amended to read:<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 2. <b>Targeted </b><b>neighborhood</b><b> community</b><b> participation in preparing </b><br/>
<a id="pl.6.2"></a><var>6.2</var><b>revitalization program.</b> A city requesting state financial assistance under section <br/>
<statute_ref><a id="pl.6.3"></a><var>6.3</var>469.204
         </statute_ref> shall adopt follow a process to involve the residents of targeted neighborhoods <br/>
<a id="pl.6.4"></a><var>6.4</var>communities in the development, drafting, and implementation of the targeted <br/>
<a id="pl.6.5"></a><var>6.5</var>revitalization program. The process shall include the use of a citizen participation <br/>
<a id="pl.6.6"></a><var>6.6</var>process established by the city. A description of the process must be included in the <br/>
<a id="pl.6.7"></a><var>6.7</var>program. The process to involve residents of the targeted neighborhood community <br/>
<a id="pl.6.8"></a><var>6.8</var>must include at least one public hearing. The city of Minneapolis shall establish the <br/>
<a id="pl.6.9"></a><var>6.9</var>community-based process as outlined in subdivision 3. The city of St. Paul shall use <br/>
<a id="pl.6.10"></a><var>6.10</var>the same community-based process the city used in planning, developing, drafting, and <br/>
<a id="pl.6.11"></a><var>6.11</var>implementing the revitalization program required under Laws 1987, chapter 386, article 6, <br/>
<a id="pl.6.12"></a><var>6.12</var>section 6. The city of Duluth shall use the same citizen participation process the city used <br/>
<a id="pl.6.13"></a><var>6.13</var>in planning, developing, and implementing the federal funded community development <br/>
<a id="pl.6.14"></a><var>6.14</var>program meeting in the targeted community.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.6.15"></a><var>6.15</var>    Sec. 11. Minnesota Statutes 2008, section 469.203, subdivision 4, is amended to read:<br/>
<a id="pl.6.16"></a><var>6.16</var>    Subd. 4. <b>City approval of program.</b> (a) Before or after adoption of a revitalization <br/>
<a id="pl.6.17"></a><var>6.17</var>program under paragraph (b), the city must submit a preliminary program to the <br/>
<a id="pl.6.18"></a><var>6.18</var>commissioner and the Minnesota Housing Finance Agency for their comments. The city <br/>
<a id="pl.6.19"></a><var>6.19</var>may not adopt the revitalization program until comments have been received from the <br/>
<a id="pl.6.20"></a><var>6.20</var>state agencies or 30 days have elapsed without response after the program was sent to <br/>
<a id="pl.6.21"></a><var>6.21</var>them. Comments received by the city from the state agencies within the 30-day period 30 <br/>
<a id="pl.6.22"></a><var>6.22</var>days after submission of the preliminary program must be responded to in writing by the <br/>
<a id="pl.6.23"></a><var>6.23</var>city before adoption of the program by the city.<br/>
<a id="pl.6.24"></a><var>6.24</var>(b) The city may adopt a targeted revitalization program only after holding a public <br/>
<a id="pl.6.25"></a><var>6.25</var>hearing after the program has been prepared. Notice of the hearing must be provided in a <br/>
<a id="pl.6.26"></a><var>6.26</var>newspaper of general circulation in the city and in the most widely circulated community <br/>
<a id="pl.6.27"></a><var>6.27</var>newspaper in the targeted neighborhoods not less than ten days nor more than 30 days <br/>
<a id="pl.6.28"></a><var>6.28</var>before the date of the hearing subject to any local public notification requirements <br/>
<a id="pl.6.29"></a><var>6.29</var>and consistent with citizen participation process established for identifying targeted <br/>
<a id="pl.6.30"></a><var>6.30</var>communities.<br/>
<a id="pl.6.31"></a><var>6.31</var>(c) A certification by the city that a targeted revitalization program has been <br/>
<a id="pl.6.32"></a><var>6.32</var>approved by the city council for the targeted neighborhood community must be provided <br/>
<a id="pl.6.33"></a><var>6.33</var>to the commissioner together with a copy of the program. A copy of the program must <br/>
<a id="pl.6.34"></a><var>6.34</var>also be provided to the Minnesota Housing Finance Agency and the commissioner of <br/>
<a id="pl.6.35"></a><var>6.35</var>employment and economic development.<br/>
<a id="pl.7.1"></a><var>7.1</var>(d) A targeted revitalization program for the city may be modified at any time by <br/>
<a id="pl.7.2"></a><var>7.2</var>the city council after a public hearing, notice of which is published in a newspaper of <br/>
<a id="pl.7.3"></a><var>7.3</var>general circulation in the city and in the targeted neighborhood at least ten days nor <br/>
<a id="pl.7.4"></a><var>7.4</var>more than 30 days before the date of the hearing. If the city council determines that the <br/>
<a id="pl.7.5"></a><var>7.5</var>proposed modification is a significant modification to the program originally certified <br/>
<a id="pl.7.6"></a><var>7.6</var>under paragraph (c), the city council shall implement the targeted revitalization program <br/>
<a id="pl.7.7"></a><var>7.7</var>approval and certification process of this subdivision for the proposed modification.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.7.8"></a><var>7.8</var>    Sec. 12. Minnesota Statutes 2008, section 469.204, subdivision 1, is amended to read:<br/>
<a id="pl.7.9"></a><var>7.9</var>    Subdivision 1. <b>Payment of state money.</b> Upon receipt from a city of a certification <br/>
<a id="pl.7.10"></a><var>7.10</var>that a revitalization program has been adopted or modified, the commissioner shall, within <br/>
<a id="pl.7.11"></a><var>7.11</var>30 days, pay to the city the amount of state money identified as necessary to implement <br/>
<a id="pl.7.12"></a><var>7.12</var>the revitalization program or program modification. State money may be paid to the <br/>
<a id="pl.7.13"></a><var>7.13</var>city only to the extent that the appropriation limit for the city specified in subdivision 2 <br/>
<a id="pl.7.14"></a><var>7.14</var>is not exceeded. Once the state money has been paid to the city, it becomes targeted <br/>
<a id="pl.7.15"></a><var>7.15</var>neighborhood community money for use by the city in accordance with an adopted <br/>
<a id="pl.7.16"></a><var>7.16</var>revitalization program and subject only to the restrictions on its use in sections 
         <statute_ref>469.201</statute_ref> to <br/>
<statute_ref><a id="pl.7.17"></a><var>7.17</var>469.207
         </statute_ref>.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.7.18"></a><var>7.18</var>    Sec. 13. Minnesota Statutes 2008, section 469.204, is amended by adding a subdivision <br/>
<a id="pl.7.19"></a><var>7.19</var>to read:<br/>
<a id="pl.7.20"></a><var>7.20</var>    Subd. 4. <b>Revolving fund.</b> A targeted community revitalization revolving fund <br/>
<a id="pl.7.21"></a><var>7.21</var>is established in the state treasury. The fund consists of all money appropriated to the <br/>
<a id="pl.7.22"></a><var>7.22</var>commissioner for the purposes of sections 469.201 to 469.207 and all proceeds received <br/>
<a id="pl.7.23"></a><var>7.23</var>by the commissioner as the result of housing activities related to a targeted community <br/>
<a id="pl.7.24"></a><var>7.24</var>revitalization program.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.7.25"></a><var>7.25</var>    Sec. 14. Minnesota Statutes 2008, section 469.205, is amended to read:<br/>
<a id="pl.7.26"></a><var>7.26</var><b>469.205 CITY POWERS; USES OF TARGETED </b><b>NEIGHBORHOOD</b><b> </b><br/>
<a id="pl.7.27"></a><var>7.27</var><b>COMMUNITY</b><b> MONEY.</b><br/>
<a id="pl.7.28"></a><var>7.28</var>    Subdivision 1. <b>Consolidation of existing powers in targeted </b><b>neighborhoods</b><b> </b><br/>
<a id="pl.7.29"></a><var>7.29</var><b>communities</b><b>.</b> A city may exercise any of its corporate powers within a targeted <br/>
<a id="pl.7.30"></a><var>7.30</var>neighborhood community. Those powers shall include, but not be limited to, all of <br/>
<a id="pl.7.31"></a><var>7.31</var>the powers enumerated and granted to any city by chapters 462C, 469, and 474A. For <br/>
<a id="pl.7.32"></a><var>7.32</var>the purposes of sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>, a targeted neighborhood community is <br/>
<a id="pl.7.33"></a><var>7.33</var>considered an industrial development district. A city may exercise the powers of sections <br/>
<statute_ref><a id="pl.8.1"></a><var>8.1</var>469.048
         </statute_ref> to 
         <statute_ref>469.068</statute_ref> in conjunction with, and in addition to, exercising the powers granted <br/>
<a id="pl.8.2"></a><var>8.2</var>by sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref> and chapter 462C, in order to promote and assist housing <br/>
<a id="pl.8.3"></a><var>8.3</var>construction and rehabilitation within a targeted neighborhood community. For the <br/>
<a id="pl.8.4"></a><var>8.4</var>purposes of section 
         <statute_ref>462C.02, subdivision 9</statute_ref>, a targeted neighborhood community is <br/>
<a id="pl.8.5"></a><var>8.5</var>considered a "targeted area."<br/>
<a id="pl.8.6"></a><var>8.6</var>    Subd. 2. <b>Grants and loans.</b> In addition to the authority granted by other law, a city <br/>
<a id="pl.8.7"></a><var>8.7</var>may make grants, loans, and other forms of public assistance to individuals, for-profit and <br/>
<a id="pl.8.8"></a><var>8.8</var>nonprofit corporations, and other organizations to implement a targeted revitalization <br/>
<a id="pl.8.9"></a><var>8.9</var>program. The public assistance must contain the terms the city considers proper to <br/>
<a id="pl.8.10"></a><var>8.10</var>implement a targeted revitalization program.<br/>
<a id="pl.8.11"></a><var>8.11</var>    Subd. 3. <b>Eligible uses of targeted </b><b>neighborhood</b><b> community</b><b> money.</b> The city may <br/>
<a id="pl.8.12"></a><var>8.12</var>spend targeted neighborhood community money for any purpose authorized by subdivision <br/>
<a id="pl.8.13"></a><var>8.13</var>1 or 2, except that an amount equal to at least 50 percent of the state payment under section <br/>
<statute_ref><a id="pl.8.14"></a><var>8.14</var>469.204
         </statute_ref> made to the city must be used for housing activities. Use of target neighborhood <br/>
<a id="pl.8.15"></a><var>8.15</var>targeted community money must be authorized in a targeted revitalization program.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.8.16"></a><var>8.16</var>    Sec. 15. Minnesota Statutes 2008, section 469.207, subdivision 2, is amended to read:<br/>
<a id="pl.8.17"></a><var>8.17</var>    Subd. 2. <b>Annual report.</b> A city that begins to implement a revitalization program <br/>
<a id="pl.8.18"></a><var>8.18</var>in a calendar year must, by March 1 of the succeeding calendar year, provide a detailed <br/>
<a id="pl.8.19"></a><var>8.19</var>report on the revitalization program or programs being implemented in the city. The report <br/>
<a id="pl.8.20"></a><var>8.20</var>must describe the status of the program implementation and analyze whether the intended <br/>
<a id="pl.8.21"></a><var>8.21</var>outcomes identified in section 
         <statute_ref>469.203, subdivision 1</statute_ref>, clause (4), are being achieved. The <br/>
<a id="pl.8.22"></a><var>8.22</var>report must include at least the following:<br/>
<a id="pl.8.23"></a><var>8.23</var>(1) the number of housing units, including lost units, removed, created, lost, <br/>
<a id="pl.8.24"></a><var>8.24</var>replaced, relocated, and assisted as a result of the program. The level of rent of the units <br/>
<a id="pl.8.25"></a><var>8.25</var>and the income of the households affected must be included in the report;<br/>
<a id="pl.8.26"></a><var>8.26</var>(2) the number and type of commercial establishments removed, created, and <br/>
<a id="pl.8.27"></a><var>8.27</var>assisted as a result of a revitalization program. The report must include information <br/>
<a id="pl.8.28"></a><var>8.28</var>regarding the number of new jobs created by category, whether the jobs are full time or <br/>
<a id="pl.8.29"></a><var>8.29</var>part time, and the salary or wage levels of both new and expanded jobs in the affected <br/>
<a id="pl.8.30"></a><var>8.30</var>commercial establishments;<br/>
<a id="pl.8.31"></a><var>8.31</var>(3) a description of a statement of the cost of the public improvement projects that <br/>
<a id="pl.8.32"></a><var>8.32</var>are part of the program and the number of jobs created for each $20,000 of money spent <br/>
<a id="pl.8.33"></a><var>8.33</var>on commercial projects and applicable public improvement projects;<br/>
<a id="pl.8.34"></a><var>8.34</var>(4) the increase in the tax capacity for the city as a result of the assistance to <br/>
<a id="pl.8.35"></a><var>8.35</var>commercial and housing assistance; and<br/>
<a id="pl.9.1"></a><var>9.1</var>(5) the amount of private investment that is a result of the use of public money <br/>
<a id="pl.9.2"></a><var>9.2</var>in a targeted neighborhood community.<br/>
<a id="pl.9.3"></a><var>9.3</var>The report must be submitted to the commissioner, the Minnesota housing finance <br/>
<a id="pl.9.4"></a><var>9.4</var>agency, and the legislative audit commission, and must be available to the public.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.9.5"></a><var>9.5</var>    Sec. 16. Laws 2008, chapter 366, article 5, section 37, is amended to read:<br/>
<a id="pl.9.6"></a><var>9.6</var>    Sec. 37. <b>CITY OF MINNEAPOLIS; TAX INCREMENT FINANCING </b><br/>
<a id="pl.9.7"></a><var>9.7</var><b>DISTRICT.</b><br/>
<a id="pl.9.8"></a><var>9.8</var>    Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other law, <br/>
<a id="pl.9.9"></a><var>9.9</var>the city of Minneapolis may establish a redevelopment tax increment financing district <br/>
<a id="pl.9.10"></a><var>9.10</var>comprised of the properties included in the existing tax increment districts in the city <br/>
<a id="pl.9.11"></a><var>9.11</var>that are exempt under Minnesota Statutes, section 
         <statute_ref>469.179, subdivision 1</statute_ref>, and were not <br/>
<a id="pl.9.12"></a><var>9.12</var>decertified before July 1, 2008. The district created under this section may be certified <br/>
<a id="pl.9.13"></a><var>9.13</var>after January 1, 2010, and terminates no later than December 31, 2020. The city may <br/>
<a id="pl.9.14"></a><var>9.14</var>create the district under this section only if it enters into an agreement with Hennepin <br/>
<a id="pl.9.15"></a><var>9.15</var>County to pay the county annually out of the increment from this district an amount equal <br/>
<a id="pl.9.16"></a><var>9.16</var>to the tax that would have been payable to the county on the captured tax capacity of the <br/>
<a id="pl.9.17"></a><var>9.17</var>district had the district not been created.<br/>
<a id="pl.9.18"></a><var>9.18</var>    Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br/>
<a id="pl.9.19"></a><var>9.19</var>under Minnesota Statutes, section 
         <statute_ref>469.174, subdivision 10</statute_ref>, do not apply to parcels located <br/>
<a id="pl.9.20"></a><var>9.20</var>within the district. Minnesota Statutes, section 
         <statute_ref>469.176, subdivisions 4j</statute_ref> and 4l, do not <br/>
<a id="pl.9.21"></a><var>9.21</var>apply to the district. The original tax capacity of the district is $2,731,854.<br/>
<a id="pl.9.22"></a><var>9.22</var>    Subd. 3. <b>Authorized expenditures.</b> (a) Tax increment from the district may <br/>
<a id="pl.9.23"></a><var>9.23</var>be expended only:<br/>
<a id="pl.9.24"></a><var>9.24</var>(1) to pay principal and interest on bond obligations issued by the city of Minneapolis <br/>
<a id="pl.9.25"></a><var>9.25</var>or the Minneapolis Community Development Agency for Target Center, including <br/>
<a id="pl.9.26"></a><var>9.26</var>payment of principal and interest on any bonds issued to repay bonds or loans; and <br/>
<a id="pl.9.27"></a><var>9.27</var>(2) for neighborhood revitalization purposes, as provided under the city's program <br/>
<a id="pl.9.28"></a><var>9.28</var>established under Minnesota Statutes, section 469.1831. All such expenditures are <br/>
<a id="pl.9.29"></a><var>9.29</var>deemed to be activities within the district under Minnesota Statutes, section 
<statute_ref>469.1763, <br/>
<a id="pl.9.30"></a><var>9.30</var>subdivisions 2
</statute_ref>, 3, and 4.<br/>
<a id="pl.9.31"></a><var>9.31</var>(b) At least one-half of the expenditures must be for the purposes described in <br/>
<a id="pl.9.32"></a><var>9.32</var>paragraph (a), clause (2). Any expenditures made as provided under paragraph (a) are <br/>
<a id="pl.9.33"></a><var>9.33</var>deemed to satisfy the requirements of Minnesota Statutes, sections 469.174 to 469.1799.<br/>
<a id="pl.9.34"></a><var>9.34</var>    Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br/>
<a id="pl.9.35"></a><var>9.35</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br/>
<a id="pl.10.1"></a><var>10.1</var>purposes of determining local government aid, education aid, and county program aid. <br/>
<a id="pl.10.2"></a><var>10.2</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br/>
<a id="pl.10.3"></a><var>10.3</var>tax capacity for the district at the time the assessment abstracts are filed.<br/>
<a id="pl.10.4"></a><var>10.4</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br/>
<a id="pl.10.5"></a><var>10.5</var>body of the city of Minneapolis with the provisions of Minnesota Statutes, section <br/>
<a id="pl.10.6"></a><var>10.6</var>645.021, subdivision 3.<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.10.7"></a><var>10.7</var>    Sec. 17. <b>APPROPRIATION.</b><br/>
<a id="pl.10.8"></a><var>10.8</var>$30,000,000 is appropriated in fiscal year 2010 from the general fund to the <br/>
<a id="pl.10.9"></a><var>10.9</var>Department of Employment and Economic Development to carry out activities under the <br/>
<a id="pl.10.10"></a><var>10.10</var>targeted  community revitalization and financing program. This appropriation is available <br/>
<a id="pl.10.11"></a><var>10.11</var>until spent.<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.10.12"></a><var>10.12</var>    Sec. 18. <b> REPEALER.</b><br/>
<a id="pl.10.13"></a><var>10.13</var>Minnesota Statutes 2008, sections 469.203, subdivision 3; and 469.204, subdivisions <br/>
<a id="pl.10.14"></a><var>10.14</var>2 and 3, are repealed.<br/>