HF 728

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of Brooklyn Park; authorizing the 
  1.3             Brooklyn Park economic development authority to 
  1.4             establish an urban shopping district and providing the 
  1.5             conditions thereof. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [DEFINITIONS.] 
  1.8      Subdivision 1.  [SCOPE.] As used in sections 2 to 4, the 
  1.9   terms defined in this section have the meanings given them. 
  1.10     Subd. 2.  [AUTHORITY.] "Authority" means the Brooklyn Park 
  1.11  economic development authority. 
  1.12     Subd. 3.  [CITY.] "City" means the city of Brooklyn Park. 
  1.13     Subd. 4.  [CAPTURED NET TAX CAPACITY.] "Captured net tax 
  1.14  capacity" means the amount by which the current net tax capacity 
  1.15  of the district exceeds the original net tax capacity, including 
  1.16  the value of property normally taxable as personal property by 
  1.17  reason of its location on or over property owned by a tax exempt 
  1.18  entity. 
  1.19     Subd. 5.  [DISTRICT.] "District" means the urban shopping 
  1.20  district. 
  1.21     Subd. 6.  [DISTRICT PLAN; PLAN.] "District plan" or "plan" 
  1.22  means a plan for the redevelopment of the urban shopping 
  1.23  district. 
  1.24     Subd. 7.  [MARQUETTE BANK SITE.] "Marquette bank site" 
  1.25  means lot 1, block 2, Twin Brook Center Addition, and commencing 
  2.1   at a point in the center line of State Highway number 152 
  2.2   distant 200 feet northwesterly from the east line of the 
  2.3   northeast quarter of the northwest quarter, thence southwesterly 
  2.4   at right angles 200 feet, thence northeasterly at right angles 
  2.5   134 feet, thence northeasterly at right angles to the centerline 
  2.6   of said Highway, thence southeasterly to the point of beginning, 
  2.7   except for the roadway, section 28, township 119, range 21, 
  2.8   Hennepin County, Minnesota. 
  2.9      Subd. 8.  [ORIGINAL NET TAX CAPACITY.] "Original net tax 
  2.10  capacity" means the net tax capacity of the district for the 
  2.11  appropriate assessment year, which shall be zero.  For purposes 
  2.12  of this subdivision, the appropriate assessment year shall be 
  2.13  the previous assessment year, provided that a request by the 
  2.14  authority for certification has been made to the county auditor 
  2.15  by June 30.  If the request for certification is filed after 
  2.16  June 30, the appropriate assessment year shall be the current 
  2.17  assessment year. 
  2.18     Subd. 9.  [PROPERTY; PROPERTIES.] "Property" or "properties"
  2.19  means all or any portion of the real property located within the 
  2.20  urban shopping area. 
  2.21     Subd. 10.  [SUBSTANTIAL REHABILITATION.] A property is 
  2.22  substantially rehabilitated if the cost of bringing the 
  2.23  structures and other improvements upon the property into 
  2.24  compliance with the uniform building code applicable to new 
  2.25  buildings exceeds 15 percent of the authority's estimated cost 
  2.26  of constructing new structures and other improvements of similar 
  2.27  square footage, type, and quality. 
  2.28     Subd. 11.  [URBAN SHOPPING AREA; AREA.] "Urban shopping 
  2.29  area" or "area" means the area of the city consisting of the 
  2.30  village north shopping center site and the Marquette bank site. 
  2.31     Subd. 12.  [URBAN SHOPPING DISTRICT.] "Urban shopping 
  2.32  district" means a tax increment district consisting of the urban 
  2.33  shopping area. 
  2.34     Subd. 13.  [VILLAGE NORTH SHOPPING CENTER SITE.] "Village 
  2.35  north shopping center site" means that part of section 28, 
  2.36  township 119, range 21, Hennepin County, Minnesota described as 
  3.1   part of the northeast quarter of the northwest quarter described 
  3.2   as beginning the most northerly corner of outlot A, Twin Brook 
  3.3   Center Addition, thence on an assumed bearing of north 50 
  3.4   degrees 47 minutes 59 seconds west along the southerly line of 
  3.5   County Road number 152 distant 226.88 feet, thence south 39 
  3.6   degrees, 12 minutes, 1 second west 180 feet, thence north 50 
  3.7   degrees 47 minutes 59 seconds west 221.76 feet, thence west to a 
  3.8   point on the west line of the northeast quarter of the northwest 
  3.9   quarter distant 421.6 feet south from the northwest corner 
  3.10  thereof, thence south to the most northerly corner of outlot B, 
  3.11  Twin Brook Center Addition, thence southeasterly to the most 
  3.12  westerly corner of said outlot A, thence northeasterly to the 
  3.13  point of beginning, excluding roadway, Section 28, township 119, 
  3.14  range 21, Hennepin County, Minnesota. 
  3.15     Sec. 2.  [ESTABLISHMENT OF URBAN SHOPPING DISTRICT.] 
  3.16     Subdivision 1.  [CREATION.] The authority may establish an 
  3.17  urban shopping district within the city consisting of the urban 
  3.18  shopping area. 
  3.19     Subd. 2.  [TAX INCREMENT.] The provisions of Minnesota 
  3.20  Statutes, section 469.177, subdivisions 1, paragraph (a); 1a; 
  3.21  and 3 to 11, apply to the computation of tax increment for the 
  3.22  urban shopping district created under sections 1 to 4. 
  3.23     Subd. 3.  [URBAN SHOPPING DISTRICT PLAN.] To establish the 
  3.24  urban shopping district, the authority shall adopt a district 
  3.25  plan that contains: 
  3.26     (1) a description of the district. 
  3.27     (2) a general description of the type or types of 
  3.28  substantial rehabilitation and/or demolition that will be 
  3.29  undertaken within the district, and by whom; 
  3.30     (3) estimates of the following: 
  3.31     (i) total cost of substantial rehabilitation and/or 
  3.32  demolition for the urban shopping area, including public 
  3.33  administrative costs and relocation expenses; 
  3.34     (ii) in the case of substantial rehabilitation, the 
  3.35  authority's estimate of constructing a new structure of similar 
  3.36  square footage, type, and quality as the existing structure 
  4.1   proposed to be substantially rehabilitated. 
  4.2      (iii) sources of revenue, public and private, to pay the 
  4.3   estimated costs of substantial rehabilitation and/or demolition; 
  4.4      (iv) the most recent net tax capacity of the urban shopping 
  4.5   district; 
  4.6      (v) the estimated captured net tax capacity of the urban 
  4.7   shopping area, at completion; and 
  4.8      (vi) statements of the authority's alternate estimates of 
  4.9   the impact of the urban shopping district on the net tax 
  4.10  capacities of all taxing jurisdictions in which the district is 
  4.11  located in whole or in part.  For purposes of one statement, the 
  4.12  authority shall assume that the estimated captured net tax 
  4.13  capacity would be available to the taxing jurisdictions without 
  4.14  creation of the district, and for purposes of the second 
  4.15  statement, the authority shall assume that the estimated 
  4.16  captured net tax capacity would not be available to the taxing 
  4.17  jurisdictions without creation of the district. 
  4.18     Subd. 4.  [PROCEDURE.] The provisions of Minnesota 
  4.19  Statutes, section 469.175, subdivisions 3, 4, 5, 6, and 6a, 
  4.20  apply to the establishment and operation of the urban shopping 
  4.21  district created under sections 1 to 4, except the 
  4.22  determinations required in Minnesota Statutes, section 469.175, 
  4.23  subdivision 3, clauses (1) and (2), are not required. 
  4.24     Subd. 5.  [LOCAL CONTRIBUTION.] At least five percent of 
  4.25  the public costs of the urban shopping district must be paid 
  4.26  from the authority's general fund, a property tax levy, or other 
  4.27  unrestricted money, not including tax increment. 
  4.28     Sec. 3.  [LIMITATIONS.] 
  4.29     Subdivision 1.  [DURATION.] Tax increment generated by the 
  4.30  urban shopping district must cease to be paid to the authority 
  4.31  after the expiration of 20 years from the receipt by the county 
  4.32  of the first tax increment from the district. 
  4.33     Subd. 2.  [USE.] (a) All tax increment received by the 
  4.34  authority from the district must be used in accordance with the 
  4.35  district plan. 
  4.36     (b) Tax increment may be used to pay all or a part of the 
  5.1   costs of: 
  5.2      (1) public or private acquisition of title to or an 
  5.3   ownership interest in property; 
  5.4      (2) relocation of owners or tenants from a property; 
  5.5      (3) demolition of all or a part of a property; 
  5.6      (4) substantial rehabilitation of a property; 
  5.7      (5) public improvements associated with the substantial 
  5.8   rehabilitation and/or demolition of properties; 
  5.9      (6) public improvements associated with Minnesota 
  5.10  department of natural resources waterways within or adjacent to 
  5.11  the urban shopping area; and 
  5.12     (7) the authority in administering the creation and 
  5.13  operation of the district. 
  5.14     (c) The authority may pay all or a portion of the costs in 
  5.15  subdivision 2, paragraph (b): 
  5.16     (1) directly; 
  5.17     (2) through the issuance and sale of obligations pursuant 
  5.18  to Minnesota Statutes, section 469.178; 
  5.19     (3) by means of loans or grants to the owners of such 
  5.20  properties; or 
  5.21     (4) through the exercise of any authority contained in 
  5.22  Minnesota Statutes, sections 469.090 to 469.1081. 
  5.23     (d) Tax increment received by the authority in excess of 
  5.24  that needed to pay the costs described in the district plan must 
  5.25  be deposited into the housing account established by the 
  5.26  authority pursuant to Laws 1994, chapter 587, article 9, section 
  5.27  20. 
  5.28     Subd. 3.  [VIOLATIONS.] Minnesota Statutes, section 
  5.29  469.1771, applies to an urban shopping district. 
  5.30     Sec. 4.  [APPLICABILITY OF OTHER LAWS.] 
  5.31     References in Minnesota Statutes to tax increment financing 
  5.32  districts created and tax increment generated under Minnesota 
  5.33  Statutes, sections 469.174 to 469.179, except for references in 
  5.34  Minnesota Statutes, section 273.1399, include the urban shopping 
  5.35  district and tax increment subject to sections 1 to 4, provided 
  5.36  that Minnesota Statutes, sections 469.174 to 469.179 apply only 
  6.1   to the extent specified in sections 1 to 4.  The urban shopping 
  6.2   district shall not be considered to have a longer duration than 
  6.3   permitted by general law for purposes of Minnesota Statutes, 
  6.4   section 469.1782. 
  6.5      Sec. 5.  [EFFECTIVE DATE.] 
  6.6      Sections 1 to 4 are effective on the day following final 
  6.7   enactment and upon compliance by the governing body of Brooklyn 
  6.8   Park with Minnesota Statutes, section 645.021.