HF 1712

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the city of Faribault; exempting a tax 
  1.3             increment financing district from certain 
  1.4             restrictions; appropriating money to be used for a 
  1.5             local economic development loan and grant program. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [FARIBAULT ECONOMIC DEVELOPMENT AUTHORITY; 
  1.8   EXEMPTIONS FROM TAX INCREMENT FINANCING RESTRICTIONS.] 
  1.9      Subdivision 1.  [AUTHORIZATION.] The Faribault economic 
  1.10  development authority may create an economic development tax 
  1.11  increment financing district as provided in this section. 
  1.12     Subd. 2.  [SPECIAL RULES.] (a) The district is subject to 
  1.13  Minnesota Statutes, sections 469.174 to 469.179, except as 
  1.14  provided in this subdivision. 
  1.15     (b) Minnesota Statutes, sections 273.1399 and 469.174, 
  1.16  subdivision 12, do not apply. 
  1.17     (c) Notwithstanding Minnesota Statutes, section 469.176, 
  1.18  subdivision 1b, tax increments from the district may be paid to 
  1.19  the authority for up to 25 years from the date of the receipt of 
  1.20  the first increment from the district. 
  1.21     (d) Minnesota Statutes, section 469.176, subdivisions 1a, 
  1.22  4c, and 7, do not apply. 
  1.23     (e) The adjustment to original net tax capacity under 
  1.24  Minnesota Statutes, section 469.177, subdivision 1, paragraph 
  1.25  (f), does not apply. 
  2.1      (f) The tax rate used to determine the amount of revenues 
  2.2   from tax increments is the sum of the local tax rates for the 
  2.3   taxes payable year, notwithstanding contrary provisions of 
  2.4   Minnesota Statutes, section 469.177, subdivision 1a, limiting 
  2.5   increments to the original local tax capacity rate. 
  2.6      (g) Notwithstanding Minnesota Statutes, section 469.176, 
  2.7   subdivision 4, the Faribault economic development authority may 
  2.8   agree to pay revenues derived from the tax increments from the 
  2.9   district for any costs provided in the tax increment plan for 
  2.10  the district, including assistance to companies locating or 
  2.11  expanding within the boundaries of the district for any costs 
  2.12  related to the companies' operations, including the costs of 
  2.13  acquiring, constructing, and equipping a new or expanded 
  2.14  facility and financing costs and interest expenses associated 
  2.15  with the location or expansion of the companies' operations 
  2.16  within the district, as reasonably determined by the authority. 
  2.17     Revenues derived from tax increments from the district may 
  2.18  also be used to provide improvements, loans, subsidies, grants, 
  2.19  interest rate subsidies, or assistance in any other form to 
  2.20  commercial, service, and retail development which is established 
  2.21  by a Faribault regional treatment center employee, or which 
  2.22  gives hiring preference to displaced regional treatment center 
  2.23  employees. 
  2.24     (h) The limitations on expenditures of revenue outside 
  2.25  districts under Minnesota Statutes, section 469.1763, 
  2.26  subdivisions 2, 3, and 4, do not apply to this district or to 
  2.27  tax increment district No. 3 Central. 
  2.28     Sec. 2.  [APPROPRIATION.] 
  2.29     $250,000 is appropriated to the commissioner of trade and 
  2.30  economic development to be distributed to the Faribault economic 
  2.31  development authority to be used for an economic development 
  2.32  loan and grant program.  The authority would award loans to 
  2.33  companies for expansion or relocation projects that are likely 
  2.34  to result in the creation or retention of employment 
  2.35  opportunities for area residents.  To qualify for a loan, a 
  2.36  business would be required to provide reasonable assurance that, 
  3.1   in hiring, preference would be given to Faribault regional 
  3.2   treatment center employees.  Grants would be made available to 
  3.3   Faribault regional treatment center employees for job training 
  3.4   and business management support. 
  3.5      Sec. 3.  [LOCAL APPROVAL.] 
  3.6      Section 1 is effective upon compliance by the governing 
  3.7   body of the city of Faribault with Minnesota Statutes, section 
  3.8   645.021, subdivision 3.