HF 2439

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

  1.1                          A bill for an act 
  1.2             relating to economic development; authorizing and 
  1.3             providing state and local funds for redevelopment of 
  1.4             the upper harbor area in Minneapolis; authorizing tax 
  1.5             increment districts and local bonds; appropriating 
  1.6             money. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [FINDINGS.] 
  1.9      The legislature finds that providing statewide and local 
  1.10  financial assistance for the redevelopment of property in the 
  1.11  upper harbor area of Minneapolis in order to develop that area 
  1.12  for housing, recreational, and commercial property use would 
  1.13  benefit the public interest by the expansion of jobs and tax 
  1.14  base as well as improve the aesthetic qualities of the 
  1.15  Mississippi river.  The legislature further finds that the land 
  1.16  in the upper harbor area of Minneapolis is underutilized by the 
  1.17  current use of aging industries and bulk, scrap, and aggregate 
  1.18  commercial facilities reliant on barge traffic.  Based on the 
  1.19  state's experience of investing public financial resources in 
  1.20  the Minneapolis central riverfront, the legislature believes the 
  1.21  highest, most productive, and best use of the land area in the 
  1.22  upper harbor is for housing, recreation, and commercial 
  1.23  development. 
  1.24     Sec. 2.  [UPPER HARBOR DEVELOPMENT ZONE.] 
  1.25     Subdivision 1.  [DESIGNATION; CRITERIA.] (a) The city of 
  1.26  Minneapolis may designate one upper harbor redevelopment zone 
  2.1   within its boundaries.  The upper harbor development zone is a 
  2.2   discrete geographic area described as follows:  that area north 
  2.3   of the Plymouth Avenue Bridge and south of the Camden Bridge and 
  2.4   the area east of interstate highway 94 and 2nd Avenue Northeast. 
  2.5      Subd. 2.  [UPPER HARBOR REDEVELOPMENT TAX INCREMENT 
  2.6   DISTRICT.] The city of Minneapolis may establish one or more 
  2.7   upper harbor redevelopment tax increment districts and projects 
  2.8   subject to section 4 within the approved upper harbor zone. 
  2.9      (1) The boundaries of a specific district; 
  2.10     (2) the tax increment financing plan for a district; and 
  2.11     (3) the number of authorized phases of a district 
  2.12  must first be approved by the metropolitan council. 
  2.13     Subd. 3.  [OBLIGATIONS; UPPER HARBOR REDEVELOPMENT 
  2.14  DISTRICTS.] The city of Minneapolis may issue and sell general 
  2.15  obligations under Minnesota Statutes, section 469.178, and 
  2.16  chapter 475 to finance the costs of redeveloping the upper 
  2.17  harbor area and relocating businesses from an approved upper 
  2.18  harbor redevelopment tax increment district and may pledge to 
  2.19  the payment of principal of, interest on, and redemption 
  2.20  premium, if any, revenues received by the upper harbor 
  2.21  redevelopment fund established under section 3. 
  2.22     (1) the obligations must mature no later than 35 years from 
  2.23  the date of issue of the original obligations; and 
  2.24     (2) the city may issue no more than $100,000,000 aggregate 
  2.25  net principal amount of obligations, after deducting costs of 
  2.26  issuance, discount and capitalized interest, secured by revenues 
  2.27  in the upper harbor redevelopment fund. 
  2.28     Sec. 3.  [UPPER HARBOR REDEVELOPMENT FUND.] 
  2.29     Subdivision 1.  [FUND CREATED; SOURCES.] The upper harbor 
  2.30  redevelopment fund consists of funds appropriated by the state 
  2.31  under section 7 and tax increment receipts generated by a 
  2.32  district. 
  2.33     Subd. 2.  [PRIORITY OF PAYMENTS.] Payments from the upper 
  2.34  harbor redevelopment fund under subdivision 1 are to be made: 
  2.35     (1) first, to arrange for the relocation of businesses 
  2.36  which are located in the upper harbor and barge, bulk goods, 
  3.1   scrap metal, or aggregate materials in the upper harbor, such 
  3.2   relocation arrangements can include an agreement to allow up to 
  3.3   a period of ten years use by current businesses; and 
  3.4      (2) second, to redevelop the area. 
  3.5      None of the appropriations in section 7 are available until 
  3.6   the relocation agreements in clause (1) are entered into. 
  3.7      Sec. 4.  [AUTHORIZATION; CITY OF MINNEAPOLIS.] 
  3.8      Subdivision 1.  [UPPER HARBOR REDEVELOPMENT TAX INCREMENT 
  3.9   FINANCING DISTRICT.] The city of Minneapolis may establish an 
  3.10  upper harbor redevelopment tax increment financing district or 
  3.11  subdistricts consisting of the real property described as 
  3.12  follows: 
  3.13     The area north of the Plymouth Avenue Bridge and south of 
  3.14     the Camden Bridge and east of interstate highway 94 and 
  3.15     west of 2nd Avenue Northeast. 
  3.16     The city or its housing and redevelopment authority may be 
  3.17  the "authority" under Minnesota Statutes, sections 469.174 to 
  3.18  469.179. 
  3.19     Subd. 2.  [SPECIAL RULES.] (a) A district established under 
  3.20  subdivision 1 is considered a redevelopment district and project 
  3.21  and is subject to Minnesota Statutes, sections 469.174 to 
  3.22  469.179, except as otherwise provided in this subdivision. 
  3.23     (1) For the purposes of Minnesota Statutes, section 
  3.24  469.1763, subdivision 2, the "in-district percentage" is 100 
  3.25  percent, except to the extent otherwise provided in clause (4).  
  3.26  Section 469.1763, subdivision 3, does not apply to the district. 
  3.27     (2) The tax increment financing plan for the district may 
  3.28  identify up to six phases, each consisting of a contiguous or 
  3.29  noncontiguous geographic area within the district.  Tax 
  3.30  increment must not be paid to the authority from any phase after 
  3.31  25 years from date of receipt by the authority of the first tax 
  3.32  increment from that phase. 
  3.33     (3) Minnesota Statutes, sections 469.176, subdivision 4j, 
  3.34  and 469.177, subdivision 1a, do not apply to the district. 
  3.35     (4) Minnesota Statutes, section 273.1399, does not apply to 
  3.36  the district if either: 
  4.1      (i) the authority elects the exemption under Minnesota 
  4.2   Statutes, section 273.1399, subdivision 6, paragraph (d); or 
  4.3      (ii) at least 40 percent of the revenue generated from tax 
  4.4   increment from the district in any year is deposited in the 
  4.5   housing replacement account of the authority and spent according 
  4.6   to the tax increment financing plan. 
  4.7      (b) The authority must identify in the tax increment 
  4.8   financing plan the housing replacement activities to be assisted 
  4.9   by the housing replacement account. 
  4.10     (c) Housing replacement activities may include 
  4.11  rehabilitation, acquisition, demolition, relocation assistance, 
  4.12  relocation of existing single-family or multifamily housing, and 
  4.13  financing of new or existing single-family or multifamily 
  4.14  housing that replaces housing units eliminated by redevelopment 
  4.15  within the district. 
  4.16     (d) Housing replacement activities listed in the plan need 
  4.17  not be located with the district or project area. 
  4.18     Sec. 5.  [CITY OF MINNEAPOLIS; BONDS; SECURITY.] 
  4.19     Subdivision 1.  [GENERAL OBLIGATION BONDS.] The city of 
  4.20  Minneapolis may issue and sell its general obligations under 
  4.21  Minnesota Statutes, section 469.178, and chapter 475 to finance 
  4.22  the costs of land and structure acquisition, demolition, 
  4.23  relocation and site clearance, and improvement within the upper 
  4.24  harbor redevelopment tax increment district established under 
  4.25  section 4. 
  4.26     Subd. 2.  [UPPER HARBOR REDEVELOPMENT FUND REVENUES.] The 
  4.27  city of Minneapolis may pledge to the payment of obligations 
  4.28  issued under this section the revenues to be received and funds 
  4.29  in the upper harbor redevelopment fund, subject to the limits 
  4.30  set forth in section 2.  
  4.31     Sec. 6.  [OBLIGATION DEFINED.] 
  4.32     In this act, "obligation" has the meaning given it in 
  4.33  Minnesota Statutes, section 475.51, subdivision 3.  The term 
  4.34  includes obligations issued to refund prior obligations issued 
  4.35  under this act. 
  4.36     Sec. 7.  [APPROPRIATION.] 
  5.1      $10,000,000 is appropriated to the commissioner of finance 
  5.2   to be deposited in the upper harbor redevelopment fund under 
  5.3   section 3.  The commissioner shall not release these funds until 
  5.4   the relocation agreements provided in section 3, subdivision 2, 
  5.5   are entered into by the city and business entities. 
  5.6      Sec. 8.  [EFFECTIVE DATE.] 
  5.7      This act is effective upon approval by the governing body 
  5.8   of Minneapolis and compliance by its chief clerical officer with 
  5.9   Minnesota Statutes, section 645.021, subdivision 3; and with 
  5.10  regard to section 2, subdivision 2, and section 5, upon similar 
  5.11  compliance with Minnesota Statutes, section 469.1782, 
  5.12  subdivision 2.