HF 2343

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; modifying the 
  1.3             Minnesota development account; appropriating money for 
  1.4             development, biotechnology, and science projects; 
  1.5             authorizing state bonds; amending Minnesota Statutes 
  1.6             2002, sections 116J.571; 116J.572, subdivisions 2, 4; 
  1.7             116J.573, subdivisions 1, 2, 4, 5; 116J.574, 
  1.8             subdivision 2; 116J.575, subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 116J.571, is 
  1.11  amended to read: 
  1.12     116J.571 [CREATION OF ACCOUNTS.] 
  1.13     Two greater Minnesota redevelopment development accounts 
  1.14  are created, one in the general fund and one in the bond 
  1.15  proceeds fund.  Money in the accounts may be used to make grants 
  1.16  as provided in section 116J.575.  Money in the bond proceeds 
  1.17  fund may only be used for eligible costs for publicly owned 
  1.18  property.  Money in the general fund may be used to pay for the 
  1.19  commissioner's costs in reviewing the applications. 
  1.20     Sec. 2.  Minnesota Statutes 2002, section 116J.572, 
  1.21  subdivision 2, is amended to read: 
  1.22     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
  1.23  includes a statutory or home rule charter city, county, housing 
  1.24  and redevelopment authority, economic development authority, or 
  1.25  port authority located outside the seven-county metropolitan 
  1.26  area, as defined in section 473.121, subdivision 2. 
  1.27     Sec. 3.  Minnesota Statutes 2002, section 116J.572, 
  2.1   subdivision 4, is amended to read: 
  2.2      Subd. 4.  [REDEVELOPMENT DEVELOPMENT.] "Redevelopment 
  2.3   Development" means recycling obsolete, abandoned, or 
  2.4   underutilized properties for new industrial, commercial, or 
  2.5   residential uses. 
  2.6      Sec. 4.  Minnesota Statutes 2002, section 116J.573, 
  2.7   subdivision 1, is amended to read: 
  2.8      Subdivision 1.  [ACCOUNTS.] Criteria for use of the 
  2.9   accounts created in section 116J.571 must be consistent with and 
  2.10  promote the purposes of sections 116J.571 to 116J.575.  They 
  2.11  include, but are not limited to: 
  2.12     (1) creating and preserving living wage jobs in greater 
  2.13  Minnesota; 
  2.14     (2) creating incentives for communities to include a full 
  2.15  range of housing opportunities; 
  2.16     (3) creating incentives for all communities to implement 
  2.17  compact, efficient, and mixed-use development; and 
  2.18     (4) creating incentives to assist communities in 
  2.19  maintaining a unique sense of place by preserving local, 
  2.20  cultural assets. 
  2.21     Sec. 5.  Minnesota Statutes 2002, section 116J.573, 
  2.22  subdivision 2, is amended to read: 
  2.23     Subd. 2.  [PROJECTS.] To be eligible for funding by the 
  2.24  greater Minnesota redevelopment development account, a project 
  2.25  must: 
  2.26     (1) interrelate redevelopment development with other public 
  2.27  investments in transportation, housing, schools, energy, 
  2.28  utilities information infrastructure, and other public services; 
  2.29     (2) interrelate affordable housing and employment growth 
  2.30  areas; 
  2.31     (3) intensify land use that leads to more compact 
  2.32  redevelopment development; 
  2.33     (4) involve redevelopment development that mixes incomes of 
  2.34  residents in housing, including introducing or reintroducing 
  2.35  higher value housing in lower income areas to achieve a mix of 
  2.36  housing opportunities; 
  3.1      (5) involve participation from citizens and the business 
  3.2   community in the planning and development of the proposed 
  3.3   redevelopment development plan; 
  3.4      (6) encourage public infrastructure investments which 
  3.5   attract private sector redevelopment development investment in 
  3.6   commercial, industrial, and residential properties adjacent to 
  3.7   public improvements, and provide project area residents with 
  3.8   expanded opportunities for private sector employment; or 
  3.9      (7) be sustainable at the local level and reduce the 
  3.10  probability of future requests for state development, 
  3.11  maintenance, or replacement assistance. 
  3.12     Sec. 6.  Minnesota Statutes 2002, section 116J.573, 
  3.13  subdivision 4, is amended to read: 
  3.14     Subd. 4.  [PARTNERSHIPS.] The commissioner shall give 
  3.15  priority to proposals using innovative financial partnerships 
  3.16  between government, private for-profit, and nonprofit sectors as 
  3.17  well as to proposals that meet current tax increment financing 
  3.18  requirements for a redevelopment district and contribute tax 
  3.19  increment financing towards the project. 
  3.20     Sec. 7.  Minnesota Statutes 2002, section 116J.573, 
  3.21  subdivision 5, is amended to read: 
  3.22     Subd. 5.  [ANNUAL REPORT.] The commissioner shall prepare 
  3.23  and submit to the legislature an annual report on the greater 
  3.24  Minnesota redevelopment development account.  The report must 
  3.25  include information on the amount of money in the account, the 
  3.26  amount distributed, to whom the grants were distributed and for 
  3.27  what purposes, and an evaluation of the effectiveness of the 
  3.28  projects funded in meeting the policies and goals of the program.
  3.29     Sec. 8.  Minnesota Statutes 2002, section 116J.574, 
  3.30  subdivision 2, is amended to read: 
  3.31     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
  3.32  prescribe and provide the application form.  The application 
  3.33  must include at least the following information: 
  3.34     (1) identification of the site; 
  3.35     (2) a detailed budget, including necessary supporting 
  3.36  evidence, of the total costs for the site including the total 
  4.1   eligible redevelopment development costs; 
  4.2      (3) a complete redevelopment development plan, including 
  4.3   any specific commitments from third parties to construct 
  4.4   improvements on the site; 
  4.5      (4) a complete financing plan, including the manner in 
  4.6   which the development authority uses innovative financial 
  4.7   partnerships between government, private for-profit, and 
  4.8   nonprofit sectors; and 
  4.9      (5) any additional information or material that the 
  4.10  commissioner prescribes. 
  4.11     Sec. 9.  Minnesota Statutes 2002, section 116J.575, 
  4.12  subdivision 1, is amended to read: 
  4.13     Subdivision 1.  [COMMISSIONER DISCRETION.] The commissioner 
  4.14  may make a grant for up to 50 percent of the eligible costs of a 
  4.15  project.  The determination of whether to make a grant for a 
  4.16  site is within the discretion of the commissioner, subject to 
  4.17  this section and sections 116J.571 to 116J.574 and available 
  4.18  unencumbered money in the greater Minnesota redevelopment 
  4.19  development account.  The commissioner's decisions and 
  4.20  application of the priorities under this section are not subject 
  4.21  to judicial review, except for abuse of discretion. 
  4.22     Sec. 10.  [APPROPRIATION.] 
  4.23     (a) $10,000,000 is appropriated from the bond proceeds fund 
  4.24  to the commissioner of employment and economic development for 
  4.25  transfer to the Minnesota development account under Minnesota 
  4.26  Statutes, section 116J.571.  The amount must be divided equally 
  4.27  between redevelopment of previously developed land and new 
  4.28  development. 
  4.29     (b) $15,000,000 is appropriated from the bond proceeds fund 
  4.30  to the commissioner of employment and economic development for 
  4.31  transfer to the Minnesota development account under Minnesota 
  4.32  Statutes, section 116J.571, for eligible projects within the 
  4.33  biotechnology and health science zone designated under Minnesota 
  4.34  Statutes, section 469.334. 
  4.35     Sec. 11.  [BOND SALE.] 
  4.36     To provide the money appropriated in section 10 from the 
  5.1   bond proceeds fund, the commissioner of finance shall sell and 
  5.2   issue bonds of the state in an amount up to $25,000,000 in the 
  5.3   manner, upon the terms, and with the effect prescribed in 
  5.4   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  5.5   Minnesota Constitution, article XI, sections 4 to 7.  
  5.6      Sec. 12.  [EFFECTIVE DATE.] 
  5.7      This act is effective the day following final enactment.