HF 112

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; providing a bidding
exception for certain federally subsidized transit
facilities; amending Minnesota Statutes 2004, section
469.015, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 469.015,
subdivision 4, is amended to read:

Subd. 4.

Exceptions.

(a) An authority need not require
competitive bidding in the following circumstances:

(1) in the case of a contract for the acquisition of a
low-rent housing project:

(i) for which financial assistance is provided by the
federal government;

(ii) which does not require any direct loan or grant of
money from the municipality as a condition of the federal
financial assistance; and

(iii) for which the contract provides for the construction
of the project upon land that is either owned by the authority
for redevelopment purposes or not owned by the authority at the
time of the contract but the contract provides for the
conveyance or lease to the authority of the project or
improvements upon completion of construction;

(2) with respect to a structured parking facility:

(i) constructed in conjunction with, and directly above or
below, a development; and

(ii) financed with the proceeds of tax increment or parking
ramp general obligation or revenue bonds; deleted text begin and
deleted text end

(3) new text begin until August 1, 2009, with respect to a facility built
for the purpose of facilitating the operation of public transit
or encouraging its use:
new text end

new text begin (i) constructed in conjunction with, and directly above or
below, a development; and
new text end

new text begin (ii) financed with the proceeds of tax increment or parking
ramp general obligation or revenue bonds or with at least 60
percent of the construction cost being financed with funding
provided by the federal government; and
new text end

new text begin (4) new text end in the case of any building in which at least 75
percent of the usable square footage constitutes a housing
development project if:

(i) the project is financed with the proceeds of bonds
issued under section 469.034 or from nongovernmental sources;

(ii) the project is either located on land that is owned or
is being acquired by the authority only for development
purposes, or is not owned by the authority at the time the
contract is entered into but the contract provides for
conveyance or lease to the authority of the project or
improvements upon completion of construction; and

(iii) the authority finds and determines that elimination
of the public bidding requirements is necessary in order for the
housing development project to be economical and feasible.

(b) An authority need not require a performance bond for
the following projects:

(1) a contract described in paragraph (a), clause (1);

(2) a construction change order for a housing project in
which 30 percent of the construction has been completed;

(3) a construction contract for a single-family housing
project in which the authority acts as the general construction
contractor; or

(4) a services or materials contract for a housing project.

For purposes of this paragraph, "services or materials
contract" does not include construction contracts.