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HF 2251

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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3.5

A bill for an act
relating to tax increment financing; providing a reimbursement mechanism for
the city of Bloomington related to siting of the north-south airport runway.

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

Section 1. new text beginREIMBURSEMENT; CITY OF BLOOMINGTON.
new text end

new text begin (a) The port authority of the city of Bloomington may apply to the Metropolitan
Airports Commission, as provided in this section, for compensation for its reduced tax
increment revenues resulting from a delay in construction of an expansion of the Mall
of America development as a result of the decision to expand the Minneapolis-St. Paul
International Airport.
new text end

new text begin (b) For purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "Airport" means the Minneapolis-St. Paul International Airport.
new text end

new text begin (2) "Commission" means the Metropolitan Airports Commission.
new text end

new text begin (3) "Office" means the Office of Administrative Hearings.
new text end

new text begin (4) "Port authority" means the port authority of the city of Bloomington.
new text end

new text begin (c) The commission shall pay compensation to the port authority, if absent actions
taken by the state and the commission to expand the airport by constructing the north-south
runway, construction of the expansion of the Mall of America would have occurred within
the period starting January 1, 1993, and ending 12 months after final completion of the
land exchange authorized by Laws 1996, chapter 464, article 1, section 8. The amount of
compensation must be determined as provided in paragraph (f).
new text end

new text begin (d) If the commission denies the port authority's application for compensation, the
port authority may initiate a contested case proceeding under Minnesota Statutes, section
14.57, to compel payment by the commission. The office shall determine whether the port
authority is entitled to compensation for a delay in construction of an expansion and
the amount of compensation. In making this determination, the office shall consider
any relevant factors and evidence presented by the parties including, but not limited to,
the following:
new text end

new text begin (1) market conditions for the development;
new text end

new text begin (2) the readiness and willingness of the owners or others to develop the property,
as evidenced by their development plans;
new text end

new text begin (3) the availability and cost of financing to the owners or other potential developers;
new text end

new text begin (4) the feasibility of the developers proceeding with their plans;
new text end

new text begin (5) actions of the state and the commission that prevented their development plans;
and
new text end

new text begin (6) when the state or commission made public the decision to expand the airport
and when the developer received credible or reliable information regarding the planned
airport expansion.
new text end

new text begin (e) For purposes of the proceedings under this section, the burden of proof is on the
port authority and the standard of proof is by the preponderance of the evidence. The port
authority and the commission must share equally the cost of the proceedings.
new text end

new text begin (f) The measure of compensation to the port authority must be determined based
on the property tax value of the delayed development that would have been captured
and generated tax increments for the port authority for each year through the taxes
payable year beginning on the first day of the second January after completion of the land
exchange authorized by Laws 1996, chapter 464, article 1, section 8. The compensation
equals the tax increment that would have been generated by the development for each year
of the delay. The compensation must be reduced by the value of the property provided
by the commission to the developer, less the value of any property transferred by the
landowner or developer to the commission under the land exchange authorized by Laws
1996, chapter 464, article 1, section 8. If the office determines that actions by the state and
the commission were not both necessary and sufficient causes for the delay in construction
of the development, the commission is not liable to pay any compensation.
new text end

new text begin (g) If compensation is awarded to the port authority under this section, it is payable
in equal installments over a term of years equal to the number of years of the delay agreed
to by the commission or found by the office. The payments must be deposited in the port
authority's tax increment fund or funds for the tax increment financing districts containing
the Mall of America and the former met center property and must be used in the same
manner as tax increments for those districts. If the commission does not have available
funds permitted to be used to pay compensation as required by this act, the commission
may levy an amount sufficient to pay the compensation under Minnesota Statutes, section
473.667, subdivision 9.
new text end

new text begin (h) The authority to make application for compensation under this section expires
December 31, 2009.
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