1.1 	A bill for an act
1.2 	relating to local government; establishing the Metropolitan Area Redevelopment 
1.3 	Corporation; providing powers and duties to the corporation; requiring a report; 
1.4 	appropriating money;proposing coding for new law as Minnesota Statutes, chapter 
1.5 	473K.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [473K.01] DEFINITIONS.
1.8 		Subdivision 1.Application. For the purposes of this chapter, the terms defined in this 
1.9 	section have the meanings given them.
1.10 		Subd. 2.Board. "Board" means the governing body of the corporation or Metropolitan 
1.11 	Area Redevelopment Corporation established in section 473K.03.
1.12 		Subd. 3.Bonds. "Bonds" means obligations as defined in section 475.51, subdivision 
1.13 	3.
1.14 		Subd. 4.City. "City" means a statutory or home rule charter city in the metropolitan 
1.15 	area. Until December 31, 2025, "city" means only the cities included in Executive Order 
1.16 	No. 20-64. Thereafter, "city" includes any city in the metropolitan area.
1.17 		Subd. 5.Metropolitan area. "Metropolitan area" means the counties of Anoka, Carver, 
1.18 	Dakota, Hennepin, Ramsey, Scott, and Washington.

1.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.1 	Sec. 2. [473K.03] METROPOLITAN AREA REDEVELOPMENT CORPORATION.
2.2 		Subdivision 1.Findings; creation; purpose. The legislature finds that the adverse 
2.3 	impacts of past and ongoing racial discrimination in the metropolitan area in all areas of 
2.4 	life, including economic and small business development, health, education, and housing, 
2.5 	requires creation of a public entity that is led by people of color and indigenous people to 
2.6 	bring specific, personal knowledge and experience to the work of addressing the adverse 
2.7 	impacts. The Metropolitan Area Redevelopment Corporation is established as a public 
2.8 	corporation and political subdivision of the state with jurisdiction in the metropolitan area. 
2.9 	The corporation shall identify and address the adverse impacts of racial discrimination in 
2.10 	the metropolitan area by facilitating access by people of color and indigenous people to 
2.11 	resources for development of health care facilities and services, small businesses, safe and 
2.12 	affordable housing, and other benefits of society that have historically been unavailable to 
2.13 	them due to systemic barriers. The corporation shall foster equitable economic development 
2.14 	to prevent gentrification and displacement of low-income residents, homes, and small 
2.15 	businesses owned by people of color and indigenous people. The corporation shall foster 
2.16 	enterprise development and wealth creation in communities adversely affected by racial 
2.17 	discrimination and poverty.
2.18 		Subd. 2.Membership; qualifications; appointment. (a) The board of the corporation 
2.19 	consists of nine members appointed by the Executive Council. Until appointments made 
2.20 	after December 31, 2025, each member appointed must live in an area of a city that was 
2.21 	affected by the civil unrest between May 26, 2020, and June 10, 2020. For appointments 
2.22 	made after December 31, 2025, a member may be from any part of the metropolitan area.
2.23 	(b) Each appointee must be a person of color or an Indigenous person. At least five 
2.24 	members must have an interest in and knowledge of the needs of the areas affected by the 
2.25 	civil unrest. At least four members must have experience with or knowledge of public health, 
2.26 	economic development, urban redevelopment, nonprofit finance, and community 
2.27 	empowerment. The appointing authority is encouraged to also consider a candidate's 
2.28 	experience as a leader in community-based organizations working on economic development.
2.29 		Subd. 3.Chair; other officers. The chair of the corporation shall be selected by and 
2.30 	from among members of the corporation to serve a one-year term. The chair may be 
2.31 	reappointed by the members.
2.32 		Subd. 4.Terms. The initial terms of five members, determined by lot, shall end the first 
2.33 	Monday in January 2024. The initial terms of four members, determined by lot, shall end 
3.1 	the first Monday in January 2022. Thereafter, each member shall serve a four-year term 
3.2 	and until the member's successor is appointed. A member may be reappointed.
3.3 		Subd. 5.Vacancies. A vacancy occurs as provided in section 351.02 or upon a member's 
3.4 	removal under subdivision 6. A vacancy must be filled by the appointing authority in 
3.5 	subdivision 2 for the balance of the term in the same manner as a regular appointment.
3.6 		Subd. 6.Removal. A member may be removed by the board for inefficiency, neglect 
3.7 	of duty, or misconduct in office. A member may be removed only after a hearing of the 
3.8 	board. A written copy of the charges must be given to the board member subject to the 
3.9 	allegations in the charges at least ten days before the hearing. The board member must be 
3.10 	given an opportunity to be heard in person or by counsel at the hearing. The board may 
3.11 	temporarily suspend a board member if written charges are submitted against the member. 
3.12 	The board must immediately reinstate the suspended board member if the board finds that 
3.13 	the charges against the member are not substantiated. If a board member is removed, a 
3.14 	record of the proceedings, together with the charges and findings, must be filed with the 
3.15 	appointing authority in subdivision 2.
3.16 		Subd. 7.Compensation. Members of the corporation shall be paid $10,000 per year, at 
3.17 	times and in the amounts provided in the bylaws. Members may also be reimbursed for 
3.18 	reasonable expenses as provided in section 15.059, subdivision 3.
3.19 		Subd. 8.Audits. The state auditor shall audit the finances of the corporation.

3.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.21 	Sec. 3. [473K.05] POWERS; DUTIES.
3.22 		Subdivision 1.General authority. The Metropolitan Area Redevelopment Corporation 
3.23 	has all powers necessary or convenient to accomplish the purposes for which it is created 
3.24 	and the duties assigned to it in law.
3.25 		Subd. 2.Bylaws. The corporation shall adopt bylaws for the regulation of its affairs and 
3.26 	rules of procedure for governing its actions, not inconsistent with law.
3.27 		Subd. 3.Meetings; data practices; records. The board must meet regularly at least 
3.28 	once a month. Meetings are subject to chapter 13D, the Minnesota Open Meeting Law. The 
3.29 	corporation is subject to chapter 13, the Minnesota Government Data Practices Act, and the 
3.30 	records retention law in section 15.17.
3.31 		Subd. 4.Executive director; staff; facilities. (a) The corporation may hire an executive 
3.32 	director. Compensation shall be determined by the board. Until the corporation has hired 
4.1 	an executive director, the commissioner of employment and economic development, or the 
4.2 	commissioner's designee, shall serve as executive director and facilitate hiring an executive 
4.3 	director.
4.4 	(b) The mayor of each city shall appoint a member of the city council or a department 
4.5 	head to serve as liaison to the corporation. The liaison shall attend all meetings to the extent 
4.6 	practicable, assist the board with assessing proposals, and help facilitate projects funded by 
4.7 	the board.
4.8 	(c) The Metropolitan Council and any state agency, upon request by the executive 
4.9 	director, shall provide staff, technical and administrative assistance, and the use of facilities 
4.10 	for meetings. The council and state agencies must provide the assistance within existing 
4.11 	resources available to the council or state agency.
4.12 		Subd. 5.Redevelopment plans. (a) The board shall develop both short-term and 
4.13 	long-term plans for the redevelopment of the cities. The board must consult with the mayors 
4.14 	and city councils, and all interested and affected parties, in the development of the plans. 
4.15 	The plans must provide for maximum grant amounts, the purposes for which grants may 
4.16 	be used, how grantees must account for use of grant funds, how results will be determined, 
4.17 	and what reports must be submitted to the corporation and the cities in which grant funds 
4.18 	are spent.
4.19 	(b) The redevelopment plans must:
4.20 	(1) be developed by the communities using a design process that includes using art and 
4.21 	culture to support and define the community;
4.22 	(2) identify the expertise needed to implement long-term community redevelopment 
4.23 	plans;
4.24 	(3) maximize resources from multiple sources and sectors;
4.25 	(4) support projects that will act as incubators for small business ownership, including 
4.26 	ownership of the land and buildings in which the businesses and institutions grow; and
4.27 	(5) use public investment as seed money to encourage public-private partnerships.
4.28 		Subd. 6.Grants. (a) In addition to any other requirements in this chapter, the board shall 
4.29 	develop criteria for awarding grants and provide for the equitable distribution of grant funds. 
4.30 	All grants must be approved by the board before distribution.
4.31 	(b) A grantee must be a nonprofit organization, organized under Internal Revenue Code, 
4.32 	section 501(c)(3). The organization must be one that is led by a person of color or an 
5.1 	indigenous person, and has a staff and board of which at least 51 percent are people of color 
5.2 	or indigenous people.
5.3 	(c) At least 40 percent of the funds available each year must be used for grants to 
5.4 	organizations with annual operating budgets of less than $500,000.
5.5 	(d) A grantee must substantially complete the project funded within two years of entering 
5.6 	into the grant agreement unless another time frame is specified in the grant agreement.
5.7 	(e) Projects that may be funded include but are not limited to projects that:
5.8 	(1) conduct community engagement processes to determine community priorities and 
5.9 	develop strategies to accomplish those priorities;
5.10 	(2) plan and implement commercial and economic development projects;
5.11 	(3) acquire property in order to obtain site control and ensure the property is maintained 
5.12 	and secured against further deterioration or incompatible development;
5.13 	(4) serve as incubators for small business ownership, ownership of the land and buildings 
5.14 	in which the businesses and institutions grow;
5.15 	(5) develop and improve a grantee's organizational infrastructure, including developing 
5.16 	database management systems, financial systems, and other administrative functions that 
5.17 	increase the organization's ability to access new funding sources;
5.18 	(6) improve a grantee's organization with training and skills development, planning, and 
5.19 	other methods of increasing staff capacity and cultural competency; and
5.20 	(7) increase the capacity of the grantee to improve other services in the community, such 
5.21 	as health care and education.
5.22 	(f) A grantee may partner with other existing organizations, public or private, that have 
5.23 	useful specialized expertise or capacity, including but not limited to faith-based groups, 
5.24 	schools, health care clinics, government agencies, or for-profit entities.
5.25 		Subd. 7.Report. By March 1 each year, the board must submit an annual report to the 
5.26 	chairs and ranking minority members of the legislative committees with jurisdiction over 
5.27 	government operations and jobs and economic development. The report must include 
5.28 	aggregate and detailed information on the grants awarded, including the locations, amounts, 
5.29 	uses, and any other information that the board determines would be of interest or use to the 
5.30 	legislature.

5.31 	EFFECTIVE DATE. This section is effective the day following final enactment.