HF 1035

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:43am

A bill for an act
relating to greenhouse gas emissions reduction; making findings; requiring
land use planning and limiting certain types of development; prohibiting new
incorporations; modifying tax increment financing standards; prohibiting the
use of minimum acreage standards for new school siting; authorizing the sale
of state bonds; appropriating money; amending Minnesota Statutes 2008,
sections 116J.575, subdivision 1a; 123B.70, subdivision 1; 394.23; 462.352, by
adding a subdivision; 462.353, subdivision 2, by adding a subdivision; 462.357,
subdivision 1, by adding subdivisions; 462.358, subdivision 1a; 469.174,
by adding a subdivision; 469.176, subdivision 1b, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 414; repealing
Minnesota Statutes 2008, sections 394.232; 414.02; 462.3585.

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

Section 1. new text begin LEGISLATIVE FINDINGS.
new text end

new text begin The legislature finds that land use reform is a key strategy in the effort to reduce
the state's emission of greenhouse gases. Land use reform will reduce the distance and
frequency of automobile trips and will encourage walking, bicycling, and the use of transit
to get to school and work.
new text end

new text begin The legislature also finds that preservation of agricultural lands, forest, prairie,
and open space contributes to a healthy and economically vibrant Minnesota. To
preserve agricultural lands, forest, prairie, and open space, and to decrease vehicle miles
traveled, economic development policies should give priority to the redevelopment and
rehabilitation of existing residential, commercial, industrial, recreational, and institutional
structures over the construction of new buildings on undeveloped land. Preservation of
Minnesota's agricultural lands, forest, prairie, and open space, as well as the protection and
enhancement of our cultural heritage, requires careful planning at all levels of government.
new text end

Sec. 2.

Minnesota Statutes 2008, section 116J.575, subdivision 1a, is amended to read:

Subd. 1a.

Priorities.

(a) If applications for grants exceed the available
appropriations, grants shall be made for sites that, in the commissioner's judgment,
provide the highest return in public benefits for the public costs incurred. "Public benefits"
include job creation, bioscience development, environmental benefits to the state and
region, efficient use of public transportation, new text begin reduction of vehicle miles traveled, new text end efficient
use of existing infrastructure, provision of affordable housing, multiuse development
that constitutes community rebuilding rather than single-use development, crime
reduction, blight reduction, community stabilization, and property tax base maintenance
or improvement. In making this judgment, the commissioner shall give priority to
redevelopment projects with one or more of the following characteristics:

(1) the need for redevelopment in conjunction with contamination remediation needs;

(2) the redevelopment project meets current tax increment financing requirements
for a redevelopment district and tax increments will contribute to the project;

(3) the redevelopment potential within the municipality;

(4) proximity to public transit if located in the metropolitan area;

(5) redevelopment costs related to expansion of a bioscience business in Minnesota;

(6) multijurisdictional projects that take into account the need for affordable housing,
transportation, and environmental impact;

new text begin (7) the redevelopment project is an alternative to building on undeveloped land; new text end or

deleted text begin (7) deleted text end new text begin (8) new text end the project advances or promotes the green economy as defined in section
116J.437.

(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
commissioner may weigh each factor, depending upon the facts and circumstances, as
the commissioner considers appropriate. The commissioner may consider other factors
that affect the net return of public benefits for completion of the redevelopment plan. The
commissioner, notwithstanding the listing of priorities and the goal of maximizing the
return of public benefits, shall make grants that distribute available money to sites both
within and outside of the metropolitan area. Unless sufficient applications are not received
for qualifying sites outside of the metropolitan area, at least 50 percent of the money
provided as grants must be made for sites located outside of the metropolitan area.

Sec. 3.

Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read:

Subdivision 1.

Commissioner approval.

In determining whether to give a school
facility a positive, negative, or unfavorable review and comment, the commissioner must
evaluate the proposals for facilities using the information provided under section 123B.71,
subdivision 9. new text begin The commissioner may evaluate the proposals using the most recent
"Guide for Planning School Construction in Minnesota" prepared by the Department
of Education, but must not issue a negative or unfavorable review and comment under
this section for a school facility based on the acreage of the proposed school site. The
commissioner must evaluate the energy and environmental impact of any new school
facility. If a school is proposed for a new site, the commissioner must examine the energy
costs associated with that facility, including the change in pupil transportation costs, and
the costs of establishing new infrastructure, including roads, sidewalks, and utility lines. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for review and comments issued
after July 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 394.23, is amended to read:

394.23 COMPREHENSIVE PLAN.

new text begin Subdivision 1. new text end

new text begin General authority. new text end

The board has the power and authority to
prepare and adopt by ordinance, a comprehensive plan. A comprehensive plan or plans
when adopted by ordinance must be the basis for official controls adopted under the
provisions of sections 394.21 to 394.37.

new text begin Subd. 2. new text end

new text begin Natural heritage data; protecting open space, environment. new text end

The
commissioner of natural resources must provide the natural heritage data from the county
biological survey, if available, to each county for use in the comprehensive plan. When
adopting or updating the comprehensive plan, the board must, if the data is available to
the county, consider natural heritage data resulting from the county biological survey.
In a county that is not a greater than 80 percent area, as defined in section 103G.005,
subdivision 10b, the board must consider adopting goals and objectives that will protect
open space and the environment.

new text begin Subd. 3. new text end

new text begin Comprehensive plan required. new text end

new text begin (a) Each county outside the metropolitan
area, as defined in section 473.121, with a population of 5,000 or more must adopt a
comprehensive plan that, at a minimum, includes provisions to achieve the following goals:
new text end

new text begin (1) minimize the fragmentation and development of agricultural, forest, wildlife, and
open space lands;
new text end

new text begin (2) concentrate new residential development in cities, in the cities' established
growth area, if any, or on buildable lands adjacent to cities that could be subject to
annexation and the extension of municipal services; and
new text end

new text begin (3) reduce vehicle miles traveled by encouraging development of new business,
industry, housing, recreation, and government facilities in a way that supports more
compact communities, transit, and other nonmotorized forms of travel.
new text end

new text begin (b) A county's population must be determined by the state demographer's most
recent population estimate or the most recent federal decennial census, whichever is
more recent. A county that meets the population threshold on January 1, 2009, must
adopt a comprehensive plan by January 1, 2011. A county that meets the population
threshold after January 1, 2009, must adopt a comprehensive plan within two years after
the population estimate or census establishing the county's population at or above 5,000.
The county must review and update its comprehensive plan at least every ten years.
new text end

new text begin (c) If a county has an adopted comprehensive plan at the time it becomes subject to
this subdivision, it must review and amend its plan as necessary to include provisions to
achieve the goals.
new text end

new text begin (d) Notwithstanding paragraph (a), a county is not subject to the requirements of
this subdivision if at least 60 percent of the land by area within the county is owned by
the state or federal government.
new text end

Sec. 5.

new text begin [414.023] INCORPORATIONS PROHIBITED AFTER JUNE 1, 2009.
new text end

new text begin The chief administrative law judge must not order any municipal incorporations
after June 1, 2009.
new text end

Sec. 6.

Minnesota Statutes 2008, section 462.352, is amended by adding a subdivision
to read:

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

Sec. 7.

Minnesota Statutes 2008, section 462.353, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Comprehensive plan required. new text end

new text begin Each city outside of the metropolitan
area, as defined in section 473.121, with a population of 2,500 or more that has had
an increase in population of ten percent or more over the last five years must adopt a
comprehensive plan. A city's population and growth rate must be determined by the state
demographer's most recent population estimate for the city or the most recent federal
decennial census, whichever is more recent. A city that meets the population and growth
rate threshold on January 1, 2009, must adopt a comprehensive plan by January 1, 2011. A
city that meets the population and growth rate threshold after January 1, 2009, must adopt
a comprehensive plan within two years after the population and growth rate estimate or
census establishing the city's threshold population and growth rate. The city must review
and update its comprehensive plan at least every ten years.
new text end

Sec. 8.

Minnesota Statutes 2008, section 462.353, subdivision 2, is amended to read:

Subd. 2.

Studies and reports.

In exercising its powers under deleted text begin subdivision 1 deleted text end new text begin this
section new text end , a municipality may collect and analyze data, prepare maps, charts, tables, and
other illustrations and displays, and conduct necessary studies. A municipality may
publicize its purposes, suggestions, and findings on planning matters, may distribute
reports thereon, and may advise the public on the planning matters within the scope of its
duties and objectives. The commissioner of natural resources must provide the natural
heritage data from the county biological survey, if available, to each municipality for
use in the comprehensive plan.

Sec. 9.

Minnesota Statutes 2008, section 462.357, subdivision 1, is amended to read:

Subdivision 1.

Authority for zoning.

For the purpose of promoting the public
health, safety, morals, and general welfare, a municipality may by ordinance regulate
on the earth's surface, in the air space above the surface, and in subsurface areas, the
location, height, width, bulk, type of foundation, number of stories, size of buildings
and other structures, the percentage of lot which may be occupied, the size of yards and
other open spaces, the density and distribution of population, the uses of buildings and
structures for trade, industry, residence, recreation, public activities, or other purposes,
and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil
conservation, water supply conservation, conservation of shorelands, as defined in
sections 103F.201 to 103F.221, access to direct sunlight for solar energy systems as
defined in section 216C.06, flood control or other purposes, and may establish standards
and procedures regulating such uses. To accomplish these purposes, official controls may
include provision for purchase of development rights by the governing body in the form of
conservation easements under chapter 84C in areas where the governing body considers
preservation desirable and the transfer of development rights from those areas to areas the
governing body considers more appropriate for development. No regulation may prohibit
earth sheltered construction as defined in section 216C.06, subdivision 14, relocated
residential buildings, or manufactured homes built in conformance with sections 327.31
to 327.35 that comply with all other zoning ordinances promulgated pursuant to this
section. The regulations may divide the surface, above surface, and subsurface areas of the
municipality into districts or zones of suitable numbers, shape, and area. The regulations
shall be uniform for each class or kind of buildings, structures, or land and for each class
or kind of use throughout such district, but the regulations in one district may differ from
those in other districts. The ordinance embodying these regulations shall be known
as the zoning ordinance and shall consist of text and maps. deleted text begin A city may by ordinance
extend the application of its zoning regulations to unincorporated territory located within
two miles of its limits in any direction, but not in a county or town which has adopted
zoning regulations; provided that where two or more noncontiguous municipalities have
boundaries less than four miles apart, each is authorized to control the zoning of land on
its side of a line equidistant between the two noncontiguous municipalities unless a town
or county in the affected area has adopted zoning regulations. Any city may thereafter
enforce such regulations in the area to the same extent as if such property were situated
within its corporate limits, until the county or town board adopts a comprehensive zoning
regulation which includes the area. deleted text end

Sec. 10.

Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision
to read:

new text begin Subd. 1i. new text end

new text begin Limited residential densities in unincorporated areas. new text end

new text begin Except
for unincorporated areas within a city's designated growth boundary, areas that are
subdivided and for which there is a recorded plat as of February 1, 2009, areas governed
by shoreland regulations and zoning, or parcels classified as noncommercial seasonal
residential recreational property for property tax purposes, the residential density of an
unincorporated area must not exceed the limits in this subdivision. Unincorporated
areas with no more than one residential unit per 40 acres as of August 1, 2009, must
not be developed with residential densities greater than one unit per 40 acres. If the
unincorporated area has a residential density greater than one residential unit per 40 acres
as of August 1, 2009, the density must not be increased.
new text end

Sec. 11.

Minnesota Statutes 2008, section 462.357, is amended by adding a subdivision
to read:

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
when the city council determines that (1) population growth demands more housing
than can be developed in the space available within the city, or growth in commercial
or industrial use requires more space than available within the city, (2) planning of
city services is necessary to facilitate the growth, and (3) the city has the capacity and
willingness to extend city services such as sewer and water throughout the growth area.
A city must not include in the growth area any area to which it is not willing or able to
extend sewer or water services. An area is appropriate to be included in a city's growth
area to the extent that future development within the growth area will maximize existing
transportation, water, sewer, and other municipal infrastructure, while avoiding to the
extent practicable the development of class A agricultural land. Upon making the findings
in this paragraph and after the county review and public hearings in paragraph (b), the
city may designate the growth area and update its comprehensive plan to include the
growth area.
new text end

new text begin (b) Before designating the growth area, the city must hold a hearing to present to the
public its proposed findings for a designated growth area. Notice of the hearing must be
published in the city and in the proposed designated growth area. Members of the public
must be given a reasonable opportunity to present their comments. The city also must
provide the proposed findings and designated growth area to the county planning authority
of each county affected. Each county has 45 days to review and comment on the proposal.
The city may but is not required to make changes to its proposed designated growth
area based on comments from the public and each affected county. After receiving and
considering the comments and before adopting the growth area ordinance, the city must
provide notice and hold a second public hearing to present its findings and designated
growth area, and any changes made to them based on comments received by the city.
new text end

new text begin (c) A city's growth area may extend into the unincorporated area beyond the city
limits in any direction. If more than one city claims the same unincorporated area for its
growth area, an administrative law judge will determine which city is best positioned to
serve the area weighing factors that include existing development and population growth
patterns; existing transportation infrastructure; impact on vehicle miles traveled from area
to regional amenities, schools, jobs, and governmental services; and the overall costs
of extending services to the area.
new text end

new text begin (d) A city has the exclusive right to plan, adopt, and enforce official controls in its
growth area as though the area were within the city. Planning and development in the
growth area must be at densities that are consistent with the rest of the city.
new text end

new text begin (e) Growth areas must be reviewed by the city council at least every ten years.
new text end

new text begin (f) As development occurs in the growth area and sewer and water service is
extended to the development, that part of the growth area may be annexed to the city by
ordinance, following the procedures in chapter 414.
new text end

Sec. 12.

Minnesota Statutes 2008, section 462.358, subdivision 1a, is amended to read:

Subd. 1a.

Authority.

To protect and promote the public health, safety, and general
welfare, to provide for the orderly, economic, and safe development of land, to preserve
agricultural lands, to promote the availability of housing affordable to persons and families
of all income levels, and to facilitate adequate provision for transportation, water, sewage,
storm drainage, schools, parks, playgrounds, and other public services and facilities, a
municipality may by ordinance adopt subdivision regulations establishing standards,
requirements, and procedures for the review and approval or disapproval of subdivisions.
The regulations may contain varied provisions respecting, and be made applicable only
to, certain classes or kinds of subdivisions. The regulations shall be uniform for each
class or kind of subdivision.

deleted text begin A municipality may by resolution extend the application of its subdivision
regulations to unincorporated territory located within two miles of its limits in any
direction but not in a town which has adopted subdivision regulations; provided that where
two or more noncontiguous municipalities have boundaries less than four miles apart,
each is authorized to control the subdivision of land equal distance from its boundaries
within this area.
deleted text end

Sec. 13.

Minnesota Statutes 2008, section 469.174, is amended by adding a subdivision
to read:

new text begin Subd. 10c. new text end

new text begin Compact development district. new text end

new text begin "Compact development district" means
a type of tax increment financing district consisting of a project, or portions of a project,
within which the authority finds by resolution that the following conditions are satisfied:
new text end

new text begin (1) parcels consisting of 70 percent of the area of the district are occupied by
buildings or other structures that are classified as class 3a property under section 273.13,
subdivision 24; and
new text end

new text begin (2) the planned redevelopment or development of the district, when completed, will
increase the total square footage of buildings, classified as class 3a under section 273.13,
subdivision 24, occupying the district by three times or more relative to the square footage
of similar buildings occupying the district when the resolution was approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
new text end

Sec. 14.

Minnesota Statutes 2008, section 469.176, subdivision 1b, is amended to read:

Subd. 1b.

Duration limits; terms.

(a) No tax increment shall in any event be
paid to the authority

(1) after 15 years after receipt by the authority of the first increment for a renewal
and renovation district,

(2) after 20 years after receipt by the authority of the first increment for a soils
condition district,

(3) after eight years after receipt by the authority of the first increment for an
economic development district,

(4) for a housing district new text begin , a compact development district, new text end or a redevelopment
district, after 25 years from the date of receipt by the authority of the first increment.

(b) For purposes of determining a duration limit under this subdivision or subdivision
1e that is based on the receipt of an increment, any increments from taxes payable in
the year in which the district terminates shall be paid to the authority. This paragraph
does not affect a duration limit calculated from the date of approval of the tax increment
financing plan or based on the recovery of costs or to a duration limit under subdivision
1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in
subdivision 1f.

(c) An action by the authority to waive or decline to accept an increment has no
effect for purposes of computing a duration limit based on the receipt of increment under
this subdivision or any other provision of law. The authority is deemed to have received an
increment for any year in which it waived or declined to accept an increment, regardless
of whether the increment was paid to the authority.

(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
reduction in original net tax capacity under section 469.174, subdivision 7, paragraph
(b), does not constitute receipt of increment by the overlying district for the purpose of
calculating the duration limit under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
new text end

Sec. 15.

Minnesota Statutes 2008, section 469.176, is amended by adding a subdivision
to read:

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
development district may only be used to pay:
new text end

new text begin (1) administrative expenses up to the amount permitted under subdivision 3;
new text end

new text begin (2) the cost of acquiring land located in the district or abutting the boundary of
the district;
new text end

new text begin (3) demolition and removal of buildings or other improvements and other site
preparation costs for lands located in the district or abutting the boundary of the district;
and
new text end

new text begin (4) installation of public infrastructure or public improvements serving the district,
but excluding the costs of streets, roads, highways, parking, or other public improvements
primarily designed to serve private passenger motor vehicles.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2009.
new text end

Sec. 16. new text begin REDEVELOPMENT GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $20,000,000 is appropriated from the bond
proceeds fund to the commissioner of employment and economic development for the
redevelopment grant program under Minnesota Statutes, section 116J.575.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in subdivision 1 from
the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $20,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 394.232; 414.02; and 462.3585 new text end new text begin are repealed.
new text end