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HF 2695

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to economic development; encouraging job creation; allowing tax credits
for job growth investment credit and historic structure rehabilitation; disallowing
the deduction of certain dividends; expanding the use of special assessment
for certain energy conservation improvements; expanding the permitted use of
tax increment financing for certain projects; repealing restrictions on city of
Bloomington's development of the Mall of America site; appropriating money;
amending Minnesota Statutes 2008, sections 290.06, by adding a subdivision;
290.21, subdivision 4; 429.011, by adding subdivisions; 429.021, subdivision 1;
429.031, subdivision 3; 469.174, by adding a subdivision; 469.175, by adding a
subdivision; 469.176, subdivisions 1b, 4c, by adding subdivisions; Minnesota
Statutes 2009 Supplement, section 469.153, subdivision 2; Laws 1986, chapter
391, section 1; Laws 1995, chapter 264, article 5, sections 44, subdivision 4, as
amended; 45, subdivision 1, as amended; Laws 2008, chapter 366, article 5,
sections 28, subdivision 1; 29, subdivisions 1, 2, 4; proposing coding for new law
in Minnesota Statutes, chapters 116J; 290; 469; repealing Laws 1996, chapter
464, article 1, section 8, subdivision 5.

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

Section 1.

new text begin [116J.8737] JOB GROWTH INVESTMENT TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Qualifying small business" means a business that:
new text end

new text begin (1) is engaged in, or is committed to engage in, biotechnology, technology,
manufacturing, agriculture, processing or assembling products, conducting research and
development, or developing a new product or business process;
new text end

new text begin (2) is not engaged in real estate development, insurance, banking, lobbying, political
consulting, wholesale or retail trade, leisure, hospitality, construction, or professional
services provided by attorneys, accountants, business consultants, physicians, or health
care consultants;
new text end

new text begin (3) has its headquarters in Minnesota;
new text end

new text begin (4) employs at least 51 percent of the business's employees in Minnesota;
new text end

new text begin (5) has fewer than 100 employees;
new text end

new text begin (6) has less than $2,000,000 in annual gross sales receipts for the previous year;
new text end

new text begin (7) is not a subsidiary or an affiliate of a business which employs more than 100
employees or has total gross sales receipts for the previous year of more than $2,000,000,
computed by aggregating all of the employees and gross sales receipts of the business
entities affiliated with the business;
new text end

new text begin (8) has not previously received more than $2,000,000 in private equity investments;
new text end

new text begin (9) has not previously received more than $500,000 in investments that have
qualified for and received tax credits under this section; and
new text end

new text begin (10) for a business with five or more employees, measured on a full-time equivalent
basis:
new text end

new text begin (i) provides wages and benefits to at least 75 percent of its employees in excess of
the first five employees, equal to or greater than 175 percent of the federal poverty level
for a family of four; and
new text end

new text begin (ii) provides wages and benefits to its employees in excess of the first five employees,
equal to or greater than 110 percent of the federal poverty level for a family of four.
new text end

new text begin (c) "Qualifying green job small business" means a business that satisfies all of the
requirements of paragraph (b), except clause (1), and is predominantly engaged in one
or more of the following industry sectors:
new text end

new text begin (1) green products: businesses related to the manufacture of products used by
the building, transport, consumer products, and industrial products sectors, that reduce
environmental impact and increase the efficiency of the use of resources such as energy,
water, and materials;
new text end

new text begin (2) renewable energy: businesses related to the production of energy from natural
resources such as solar, wind, hydropower, geothermal, biomass (including but not limited
to animal waste and crop waste), and biofuels (including but not limited to ethanol and
biodiesel), as well as from waste heat recovery and from the use of biomass for energy
production including cogeneration;
new text end

new text begin (3) green services: businesses that provide services that help other businesses or
consumers utilize green products and technologies, build energy infrastructure, recycle,
and manage waste; or
new text end

new text begin (4) environmental conservation: businesses related to the conservation of energy,
air, water, and land, including air emissions control, environmental monitoring and
compliance, water conservation, wastewater treatment, land management (including but
not limited to prairie), natural pesticides, aquaculture, and organic farming.
new text end

new text begin (d) "Regional investment fund" means a pooled investment fund that:
new text end

new text begin (1) invests in qualifying small businesses;
new text end

new text begin (2) invests in qualifying green job small businesses;
new text end

new text begin (3) is organized as a limited liability company or other pass-through entity; and
new text end

new text begin (4) has no fewer than five separate investors, each of whom is a qualified taxpayer, as
defined in paragraph (e), and owns no more than 20 percent of the outstanding ownership
interests in the fund.
new text end

new text begin For purposes of determining the number of investors and the ownership interests of
an investor under this clause, the ownership interests of an investor include those of the
investor's spouse, children, or siblings, and any corporation, limited liability company,
partnership, or trust in which the investor has a controlling equity interest or in which the
investor exercises management control.
new text end

new text begin (e) "Qualified taxpayer" means:
new text end

new text begin (1) an accredited investor, within the meaning of Regulation D of the Securities and
Exchange Commission, Code of Federal Regulations, title 17, section 230.501(a), whether
part of a pass-through entity or not, who:
new text end

new text begin (i) does not own, control, or hold power to vote 20 percent or more of the outstanding
securities of the qualifying small business or the qualifying green job small business in
which the eligible investment is proposed; or
new text end

new text begin (ii) does not receive more than 50 percent of the gross annual income from the
qualifying small business or the qualifying green job small business in which the eligible
investment is proposed;
new text end

new text begin (2) A member of the immediate family of a taxpayer disqualified by this subdivision
is not eligible for a credit under this section. For purposes of this subdivision, "immediate
family" means the taxpayer's spouse, parent, sibling, or child, or the spouse of any person
listed in this paragraph.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed, holding period, limitations, and carryover. new text end

new text begin (a) A
qualified taxpayer is allowed a credit against the tax imposed under chapter 290 for
investments made in a qualified regional investment fund, a qualifying small business,
or a qualifying green job small business. The credit equals 25 percent of the qualified
taxpayer's investment in the business, but not to exceed the lesser of:
new text end

new text begin (1) the liability for tax under chapter 290, including the applicable alternative
minimum tax, but excluding the minimum fee under section 290.0922; and
new text end

new text begin (2)(i) the amount of the certificate provided to the taxpayer under subdivision
4, paragraph (c); or
new text end

new text begin (ii) the amount of the certificate provided to the qualified individual investor under
subdivision 6, paragraph (d).
new text end

new text begin (b) No taxpayer may receive more than $100,000 in provisional credits under this
section in any one year.
new text end

new text begin (c) A qualified taxpayer must claim the credit in the third tax year after which the
investment in the qualified regional investment fund, the qualifying small business, or the
qualifying green job small business was made. The credit is allowed only for investments
made in:
new text end

new text begin (1) a qualified regional investment fund that remains invested for at least three
years and that are made after the fund has been certified by the commissioner under
subdivision 4;
new text end

new text begin (2) a qualifying small business that remains invested for at least three years and that
are made after the qualified individual investor has been certified by the commissioner
under subdivision 6; or
new text end

new text begin (3) a qualifying green job small business that remains invested for at least three
years and that are made after the qualified individual investor has been certified by the
commissioner under subdivision 6.
new text end

new text begin (d) The three-year investment holding period required by paragraph (c) does not
apply if:
new text end

new text begin (1) the investment by the qualified regional investment fund or the qualified
individual investor becomes worthless before the end of the three-year period; or
new text end

new text begin (2) the qualifying small business or qualifying green job small business is sold
before the end of the three-year period.
new text end

new text begin (e) If the amount of the credit under this subdivision for any taxable year exceeds
the limitations under paragraph (a), the excess is a credit carryover to each of the ten
succeeding taxable years. The entire amount of the excess unused credit for the taxable
year must be carried first to the earliest of the taxable years to which the credit may be
carried. The amount of the unused credit that may be added under this paragraph may not
exceed the taxpayer's liability for tax less the credit for the taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Qualified regional investment fund; requirements. new text end

new text begin (a) To be certified as
a qualified regional investment fund for the purposes of this section, a regional investment
fund must:
new text end

new text begin (1) have a minimum of two-thirds of the regional investment fund's members,
shareholders, or partners be residents of the region that is the focus of the fund;
new text end

new text begin (2) allocate at least 60 percent of the funds it invests to qualifying small businesses
or to qualifying green job small businesses within its region of focus; and
new text end

new text begin (3) allocate at least 50 percent of the funds it invests to qualifying green job small
businesses.
new text end

new text begin (b) The allocations in paragraph (a), clauses (2) and (3), need not be exclusive.
new text end

new text begin (c) Investments from other qualified regional investment funds into the qualifying
small businesses or qualifying green job small businesses that are the recipients of the
qualified regional investment fund's investment shall count toward the allocations in
paragraph (a), clauses (2) and (3).
new text end

new text begin (d) Investments in the fund may consist of equity investments or notes that pay
interest or other fixed amounts, or any combination of both, as the fund's governing body
determines appropriate.
new text end

new text begin Subd. 4. new text end

new text begin Certification of funds. new text end

new text begin (a) Regional investment funds may apply to the
commissioner for certification as a qualified regional investment fund. The application
must be in the form and be made under the procedures specified by the commissioner,
accompanied by an application fee of $1,250. Fees are appropriated to the commissioner
for personnel and administrative expenses related to administering the program.
new text end

new text begin (b) The commissioner may certify up to 20 regional investment funds per year.
Certifications shall be awarded in the order of the qualifying applications received, subject
to the following limitations:
new text end

new text begin (1) the commissioner may certify no more than three regional investment funds per
year that seek business investment opportunities that may qualify for and receive tax
credits under this section in more than 15 Minnesota counties; and
new text end

new text begin (2) the commissioner may certify no more than five regional investment funds
per year that seek business investment opportunities that may qualify for and receive
tax credits under this section in the metropolitan area, as defined in section 473.121,
subdivision 2.
new text end

new text begin (c) The commissioner shall provide provisional credit certificates to investors in a
qualified regional fund to credits under this section, in proportion to the investment of
the investor in the fund and upon a showing by the fund of an investment in a qualifying
small business or qualifying green job small business, of no more than $500,000 per fund
per year. The commissioner may not issue a total of more than $2,000,000 per year in
provisional credit certificates to fund investors in fiscal years 2011, 2012, and 2013.
new text end

new text begin (d) The commissioner shall provide a final credit certificate to investors in the fund
upon a showing by the fund that the holding requirements of subdivision 2, paragraph (b),
have been met and that the investors in the fund are otherwise eligible for the credit.
new text end

new text begin Subd. 5. new text end

new text begin Fund requirements. new text end

new text begin The commissioner shall enter into an agreement
with each of the qualified regional investment funds certified under subdivision 4. Each
agreement must include a provision requiring the qualified regional investment fund to
annually report on the employment figures and wages and benefits paid by the businesses
in which investments are made and a provision stating the specific manner in which
the qualified regional investment fund will comply or is complying with the allocation
requirements under subdivision 3, paragraph (a), clauses (2) and (3).
new text end

new text begin Subd. 6. new text end

new text begin Certification of individual investors. new text end

new text begin (a) Qualified taxpayers may apply
to the commissioner of employment and economic development for certification as a
qualified individual investor. The application must be in the form and be made under the
procedures specified by the commissioner, accompanied by an application fee of $250.
Fees are appropriated to the commissioner for personnel and administrative expenses
related to administering the program.
new text end

new text begin (b) The commissioner may certify up to 40 qualified individual investors per year.
Certifications are awarded in the order the qualifying applications are received; however,
the commissioner may certify no more than ten qualified individual investors per year that
seek business investment opportunities that may qualify for and receive tax credits under
this section in the metropolitan area, as defined in section 473.121, subdivision 2.
new text end

new text begin (c) The commissioner shall provide provisional credit certificates to qualified
individual investors, upon a showing by the qualified individual investor of investments of
at least $25,000 in qualifying small businesses or qualifying green job small businesses; at
least one-half of the investments made by the investor must be in qualifying green job
businesses. The commissioner may not issue more than $100,000 in provisional credit
certificates per qualified individual investor per year. The commissioner may not issue
a total of more than $1,000,000 per year in provisional credit certificates to qualified
individual investors in fiscal years 2011, 2012, and 2013.
new text end

new text begin (d) The commissioner shall provide a final credit certificate to the qualified individual
investor upon a showing by the investor that the holding requirements of subdivision 2,
paragraph (c), have been met and that the investor is otherwise eligible for the credit.
new text end

new text begin Subd. 7. new text end

new text begin Qualified individual investor requirements. new text end

new text begin The commissioner shall
enter into an agreement with each qualified individual investor certified under subdivision
6. Each agreement must include a provision requiring the qualified individual investor to
annually report on the employment figures and wages and benefits paid by the businesses
in which investments are made and a provision stating the specific manner in which the
qualified individual investor will comply or is complying with the allocation requirements
under subdivision 6, paragraph (c).
new text end

new text begin Subd. 8. new text end

new text begin Rulemaking. new text end

new text begin The commissioner's actions in establishing procedures and
requirements and in making determinations and certifications to administer this section are
not a rule for purposes of chapter 14, are not subject to the Administrative Procedure Act
contained in chapter 14, and are not subject to section 14.386.
new text end

new text begin Subd. 9. new text end

new text begin Sunset. new text end

new text begin The authority to provide provisional credit certificates under
this section expires on June 30, 2013, and this section expires effective for investments
made beginning after December 31, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
taxable years beginning after December 31, 2009, and only applies to investments made
after the qualified regional investment fund or qualified individual investor has been
certified by the commissioner of economic development.
new text end

Sec. 2.

Minnesota Statutes 2008, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 36. new text end

new text begin Job growth investment tax credit. new text end

new text begin (a) A taxpayer is allowed a
credit as determined under section 116J.8737 against the tax imposed by this chapter.
Notwithstanding the certification eligibility issued by the commissioner of the Department
of Employment and Economic Development under section 116J.8737, the commissioner
may utilize any audit and examination powers under chapter 270C or 289A to the extent
necessary to verify that the taxpayer is eligible for the credit and to assess for the amount
of any improperly claimed credit.
new text end

new text begin (b) This credit expires for investments made in taxable years beginning after
December 31, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
taxable years beginning after December 31, 2009, and only applies to investments made
after the qualified regional investment fund or qualified individual investor has been
certified by the commissioner of employment and economic development.
new text end

Sec. 3.

new text begin [290.06781] CREDIT FOR HISTORIC STRUCTURE
REHABILITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section the following terms
have the meanings given.
new text end

new text begin (b) "Certified historic structure" has the meaning given in section 47(c)(3)(A) of the
Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; certified historic structure. new text end

new text begin A taxpayer who claims a
credit under section 47(a)(2) of the Internal Revenue Code for the taxable year is allowed a
credit against the tax due under this chapter for rehabilitation of a certified historic structure
that is located in Minnesota. The credit is equal to 100 percent of the credit allowed
for rehabilitation of a certified historic structure under section 47(a)(2) of the Internal
Revenue Code, but is limited to credits generated by rehabilitation of certified historic
structures that receive Part 3 certification and are placed in service during the taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, a
limited liability company taxed as a partnership, or multiple owners of property are
passed through to the partners, members, or owners, respectively, pro rata to each partner,
member, or owner based on their share of the entity's assets.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the taxpayer is eligible to
receive under this section exceeds the liability for tax under this chapter, the commissioner
shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds authorized under
this section is appropriated to the commissioner of revenue from the general fund.
new text end

new text begin Subd. 6. new text end

new text begin Manner of claiming. new text end

new text begin The commissioner shall prescribe the manner in
which the credit may be issued or claimed. This may include allowing the credit only as
a separately processed claim for refund.
new text end

new text begin Subd. 7. new text end

new text begin Report; determination of economic impact. new text end

new text begin The Minnesota Historical
Society shall annually determine the economic impact to the state from the rehabilitation
of property for which credits are provided under this section and provide a written report
on the impact to the committees on taxes of the senate and house of representatives,
in compliance with sections 3.195 and 3.197. The Minnesota Historical Society may
collect a reasonable fee for issuing Part 3 certification of certified historic structures. Fees
collected may not exceed the cost of preparing the report required under this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December
31, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning
after December 31, 2009, for certified historic structures for which qualified costs of
rehabilitation are first paid under building contracts entered into after March 1, 2010.
new text end

Sec. 4.

Minnesota Statutes 2008, section 290.21, subdivision 4, is amended to read:


Subd. 4.

Dividends received from another corporation.

(a)(1) Eighty percent
of dividends received by a corporation during the taxable year from another corporation,
in which the recipient owns 20 percent or more of the stock, by vote and value, not
including stock described in section 1504(a)(4) of the Internal Revenue Code when the
corporate stock with respect to which dividends are paid does not constitute the stock in
trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
constitute property held by the taxpayer primarily for sale to customers in the ordinary
course of the taxpayer's trade or business, or when the trade or business of the taxpayer
does not consist principally of the holding of the stocks and the collection of the income
and gains therefrom; and

(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
an affiliated company transferred in an overall plan of reorganization and the dividend
is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
amended through December 31, 1989;

(ii) the remaining 20 percent of dividends if the dividends are received from a
corporation which is subject to tax under section 290.36 and which is a member of an
affiliated group of corporations as defined by the Internal Revenue Code and the dividend
is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
amended through December 31, 1989, or is deducted under an election under section
243(b) of the Internal Revenue Code; or

(iii) the remaining 20 percent of the dividends if the dividends are received from a
property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
member of an affiliated group of corporations as defined by the Internal Revenue Code
and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
under an election under section 243(b) of the Internal Revenue Code.

(b) Seventy percent of dividends received by a corporation during the taxable year
from another corporation in which the recipient owns less than 20 percent of the stock,
by vote or value, not including stock described in section 1504(a)(4) of the Internal
Revenue Code when the corporate stock with respect to which dividends are paid does not
constitute the stock in trade of the taxpayer, or does not constitute property held by the
taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
business, or when the trade or business of the taxpayer does not consist principally of the
holding of the stocks and the collection of income and gain therefrom.

(c) The dividend deduction provided in this subdivision shall be allowed only with
respect to dividends that are included in a corporation's Minnesota taxable net income
for the taxable year.

The dividend deduction provided in this subdivision does not apply to a dividend
from a corporation which, for the taxable year of the corporation in which the distribution
is made or for the next preceding taxable year of the corporation, is a corporation exempt
from tax under section 501 of the Internal Revenue Code.

The dividend deduction provided in this subdivision applies to the amount of
regulated investment company dividends only to the extent determined under section
854(b) of the Internal Revenue Code.

The dividend deduction provided in this subdivision shall not be allowed with
respect to any dividend for which a deduction is not allowed under the provisions of
section 246(c) of the Internal Revenue Code.

(d) If dividends received by a corporation that does not have nexus with Minnesota
under the provisions of Public Law 86-272 are included as income on the return of
an affiliated corporation permitted or required to file a combined report under section
290.17, subdivision 4, or 290.34, subdivision 2, then for purposes of this subdivision the
determination as to whether the trade or business of the corporation consists principally
of the holding of stocks and the collection of income and gains therefrom shall be made
with reference to the trade or business of the affiliated corporation having a nexus with
Minnesota.

(e) The deduction provided by this subdivision does not apply if the dividends are
paid by a FSC as defined in section 922 of the Internal Revenue Code.

(f) If one or more of the members of the unitary group whose income is included on
the combined report received a dividend, the deduction under this subdivision for each
member of the unitary business required to file a return under this chapter is the product
of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
income apportionable to this state for the taxable year under section 290.191 or 290.20.

new text begin (g) The deduction provided by this subdivision does not apply to dividends received
from a real estate investment trust, if the dividends are not considered to be dividends
under sections 243(d)(3) and 857(c) of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end

Sec. 5.

Minnesota Statutes 2008, section 429.011, is amended by adding a subdivision
to read:


new text begin Subd. 2c. new text end

new text begin Municipality; energy conservation improvements. new text end

new text begin For purposes
of construction, improvement, alteration, and reconstruction of an on-site energy
conservation system, a municipality may provide the improvements through and impose
special assessments upon the request of a port authority, economic development authority,
industrial development authority, or housing and redevelopment authority.
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. 6.

Minnesota Statutes 2008, section 429.011, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin On-site energy conservation improvements. new text end

new text begin "On-site energy
conservation improvements" mean any type of active or passive improvement, including
insulation; windows or doors; heating, cooling, or other building systems; lighting
systems; energy-related process or manufacturing changes; energy demand monitoring
and regulation equipment; and any other type of device, improvement, or equipment
installed in a building for the primary purpose of reduction in the use of energy in the
building, whether the devices, equipment, or improvements so installed are publicly
or privately owned.
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. 7.

Minnesota Statutes 2008, section 429.021, subdivision 1, is amended to read:


Subdivision 1.

Improvements authorized.

The council of a municipality shall have
power to make the following improvements:

(1) To acquire, open, and widen any street, and to improve the same by constructing,
reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
including the beautification thereof and including storm sewers or other street drainage
and connections from sewer, water, or similar mains to curb lines.

(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and
sanitary sewers and systems, including outlets, holding areas and ponds, treatment plants,
pumps, lift stations, service connections, and other appurtenances of a sewer system,
within and without the corporate limits.

(3) To construct, reconstruct, extend, and maintain steam heating mains.

(4) To install, replace, extend, and maintain street lights and street lighting systems
and special lighting systems.

(5) To acquire, improve, construct, reconstruct, extend, and maintain water works
systems, including mains, valves, hydrants, service connections, wells, pumps, reservoirs,
tanks, treatment plants, and other appurtenances of a water works system, within and
without the corporate limits.

(6) To acquire, improve and equip parks, open space areas, playgrounds, and
recreational facilities within or without the corporate limits.

(7) To plant trees on streets and provide for their trimming, care, and removal.

(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
property and to fill the same.

(9) To construct, reconstruct, extend, and maintain dikes and other flood control
works.

(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.

(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
promote a pedestrian skyway system. Such improvement may be made upon a petition
pursuant to section 429.031, subdivision 3.

(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
underground pedestrian concourses.

(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote
public malls, plazas or courtyards.

(14) To construct, reconstruct, extend, and maintain district heating systems.

(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire
protection systems in existing buildings, but only upon a petition pursuant to section
429.031, subdivision 3.

(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
sound barriers.

(17) To improve, construct, reconstruct, extend, and maintain gas and electric
distribution facilities owned by a municipal gas or electric utility.

(18) To purchase, install, and maintain signs, posts, and other markers for addressing
related to the operation of enhanced 911 telephone service.

(19) To improve, construct, extend, and maintain facilities for Internet access and
other communications purposes, if the council finds that:

(i) the facilities are necessary to make available Internet access or other
communications services that are not and will not be available through other providers or
the private market in the reasonably foreseeable future; and

(ii) the service to be provided by the facilities will not compete with service provided
by private entities.

(20) To assess affected property owners for all or a portion of the costs agreed to
with an electric utility, telecommunications carrier, or cable system operator to bury or
alter a new or existing distribution system within the public right-of-way that exceeds the
utility's design and construction standards, or those set by law, tariff, or franchise, but only
upon petition under section 429.031, subdivision 3.

new text begin (21) To construct, reconstruct, improve, alter, and maintain on-site energy
conservation improvements in existing buildings, but only upon a petition under section
429.031, subdivision 3. The activities under this clause may also be undertaken by a port
authority, economic development authority, industrial development authority, or housing
and redevelopment authority, and the municipality may act on the request of those entities
in imposing special assessments.
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. 8.

Minnesota Statutes 2008, section 429.031, subdivision 3, is amended to read:


Subd. 3.

Petition by all owners.

Whenever all owners of real property abutting
upon any street named as the location of any improvement shall petition the council
to construct the improvement and to assess the entire cost against their property, the
council may, without a public hearing, adopt a resolution determining such fact and
ordering the improvement. The validity of the resolution shall not be questioned by
any taxpayer or property owner or the municipality unless an action for that purpose
is commenced within 30 days after adoption of the resolution as provided in section
429.036. Nothing herein prevents any property owner from questioning the amount
or validity of the special assessment against the owner's property pursuant to section
429.081. In the case of a petition for the municipality to own and install a fire protection
system, a pedestrian skyway system, new text beginon-site energy conservation improvements, new text endor
on-site water contaminant improvements, the petition must contain or be accompanied
by an undertaking satisfactory to the city by the petitioner that the petitioner will grant
the municipality the necessary property interest in the building to permit the city to enter
upon the property and the building to construct, maintain, and operate the fire protection
system, pedestrian skyway system, new text beginon-site energy conservation improvements, new text endor on-site
water contaminant improvements. In the case of a petition for the installation of a
privately owned fire protection system, a privately owned pedestrian skyway system,
new text begin privately owned on-site energy conservation improvements, new text endor privately owned on-site
water contaminant improvements, the petition shall contain the plans and specifications
for the improvement, the estimated cost of the improvement and a statement indicating
whether the city or the owner will contract for the construction of the improvement. If the
owner is contracting for the construction of the improvement, the city shall not approve
the petition until it has reviewed and approved the plans, specifications, and cost estimates
contained in the petition. The construction cost financed under section 429.091 shall not
exceed the amount of the cost estimate contained in the petition. In the case of a petition
for the installation of a fire protection system, a pedestrian skyway system, new text beginon-site energy
conservation improvements,
new text endor on-site water contaminant improvements, the petitioner
may request abandonment of the improvement at any time after it has been ordered
pursuant to subdivision 1 and before contracts have been awarded for the construction of
the improvement under section 429.041, subdivision 2. If such a request is received, the
city council shall abandon the proceedings but in such case the petitioner shall reimburse
the city for any and all expenses incurred by the city in connection with the improvement.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2009 Supplement, section 469.153, subdivision 2, is
amended to read:


Subd. 2.

Project.

(a) "Project" means (1) any properties, real or personal, used
or useful in connection with a revenue producing enterprise, or any combination of
two or more such enterprises engaged or to be engaged in generating, transmitting, or
distributing electricity, assembling, fabricating, manufacturing, mixing, processing,
storing, warehousing, or distributing any products of agriculture, forestry, mining, or
manufacture, or in research and development activity in this field, or in the manufacturing,
creation, or production of intangible property, including any patent, copyright, formula,
process, design, know-how, format, or other similar item; (2) any properties, real or
personal, used or useful in the abatement or control of noise, air, or water pollution, or in
the disposal of solid wastes, in connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be engaged in any business
or industry; (3) any properties, real or personal, used or useful in connection with the
business of telephonic communications, conducted or to be conducted by a telephone
company, including toll lines, poles, cables, switching, and other electronic equipment
and administrative, data processing, garage, and research and development facilities;
(4) any properties, real or personal, used or useful in connection with a district heating
system, consisting of the use of one or more energy conversion facilities to produce hot
water or steam for distribution to homes and businesses, including cogeneration facilities,
distribution lines, service facilities, and retrofit facilities for modifying the user's heating
or water system to use the heat energy converted from the steam or hot water.

(b) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, or any combination of two or more
such enterprises engaged in any business.

(c) "Project" also includes any properties, real or personal, used or useful for the
promotion of tourism in the state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under section 471.191, and related
facilities.

(d) "Project" also includes any properties, real or personal, used or useful in
connection with a revenue producing enterprise, whether or not operated for profit,
engaged in providing health care services, including hospitals, nursing homes, and related
medical facilities.

(e) "Project" does not include any property to be sold or to be affixed to or consumed
in the production of property for sale, and does not include any housing facility to be
rented or used as a permanent residence.

(f) "Project" also means the activities of any revenue producing enterprise involving
the construction, fabrication, sale, or leasing of equipment or products to be used in
gathering, processing, generating, transmitting, or distributing solar, wind, geothermal,
biomass, agricultural or forestry energy crops, or other alternative energy sources for
use by any person or any residential, commercial, industrial, or governmental entity in
heating, cooling, or otherwise providing energy for a facility owned or operated by that
person or entity.

(g) "Project" also includes any properties, real or personal, used or useful in
connection with a county jail, county regional jail, community corrections facilities
authorized by chapter 401, or other law enforcement facilities, the plans for which are
approved by the commissioner of corrections; provided that the provisions of section
469.155, subdivisions 7 and 13, do not apply to those projects.

(h) "Project" also includes any real properties used or useful in furtherance of the
purpose and policy of section 469.141.

(i) "Project" also includes related facilities as defined by section 471A.02,
subdivision 11
.

(j) "Project" also includes an undertaking to purchase the obligations of local
governments located in whole or in part within the boundaries of the municipality that are
issued or to be issued for public purposes.

new text begin (k) "Project" also includes any properties designated as a qualified green building
and sustainable design project under section 469.1655.
new text end

Sec. 10.

new text begin [469.1655] QUALIFIED GREEN BUILDING AND SUSTAINABLE
DESIGN PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Project designation and eligibility. new text end

new text begin (a) A municipality or
redevelopment agency issuing revenue bonds under sections 469.152 to 469.165 may
designate the project for which the bonds are issued as a qualified green building and
sustainable design project as provided in this section.
new text end

new text begin (b) The issuer must ensure that each designated project substantially:
new text end

new text begin (1) reduces consumption of electricity compared to conventional construction;
new text end

new text begin (2) reduces daily carbon dioxide emissions compared to energy generated from coal;
new text end

new text begin (3) increases the use of solar photovoltaic cells in this state; or
new text end

new text begin (4) increases the use of fuel cells to generate energy.
new text end

new text begin (c) Before designating a project under this section, the issuer must document in
writing that the project will satisfy the eligibility criteria in this section.
new text end

new text begin (d) At least 75 percent of the square footage of commercial buildings that are part of
the project must be registered with a recognized green building rating system, including
Minnesota's sustainable building guidelines or the United States Green Building Council's
LEED certification, or in the case of residential buildings, Minnesota GreenStar rating,
and must be reasonably expected to receive the certification.
new text end

new text begin Subd. 2. new text end

new text begin Applications. new text end

new text begin An application for designation under this section must
include a project proposal that describes the energy-efficiency, renewable energy, and
sustainable design features of the project and demonstrates that the project satisfies the
eligibility criteria in this section. The application must include a description of:
new text end

new text begin (1) the amount of electric consumption reduced as compared to conventional
construction;
new text end

new text begin (2) the amount of carbon dioxide daily emissions reduced compared to energy
generated from coal;
new text end

new text begin (3) the amount of the gross installed capacity of the project's solar photovoltaic
capacity measured in megawatts; and
new text end

new text begin (4) the amount in megawatts of the project's energy generated by fuel cells.
new text end

new text begin Subd. 3. new text end

new text begin Use of bond financing. new text end

new text begin The project proposal must include a description of
the bond financing that will be allocated for financing of one or more of the following:
new text end

new text begin (1) the purchase, construction, integration, or other use of energy-efficiency,
renewable energy, and sustainable design features of the project; or
new text end

new text begin (2) compliance with certification standards cited under subdivision 1, paragraph (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for bonds issued after June 30, 2010.
new text end

Sec. 11.

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. 12.

Minnesota Statutes 2008, section 469.175, is amended by adding a subdivision
to read:


new text begin Subd. 2b. new text end

new text begin Compact development districts; sunset. new text end

new text begin The authority to establish or
approve the tax increment financing plan for a new compact development district expires
on June 30, 2012.
new text end

Sec. 13.

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 districtnew 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. 14.

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 be used only 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. 15.

Minnesota Statutes 2008, section 469.176, subdivision 4c, is amended to read:


Subd. 4c.

Economic development districts.

(a) Revenue derived from tax
increment from an economic development district may not be used to provide
improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
to developments consisting of buildings and ancillary facilities, if more than 15 percent
of the buildings and facilities (determined on the basis of square footage) are used for a
purpose other than:

(1) the manufacturing or production of tangible personal property, including
processing resulting in the change in condition of the property;

(2) warehousing, storage, and distribution of tangible personal property, excluding
retail sales;

(3) research and development related to the activities listed in clause (1) or (2);

(4) telemarketing if that activity is the exclusive use of the property;

(5) tourism facilities;

(6) qualified border retail facilities; or

(7) space necessary for and related to the activities listed in clauses (1) to (6).

deleted text begin (b) Notwithstanding the provisions of this subdivision, revenue derived from tax
increment from an economic development district may be used to pay for site preparation
and public improvements, if the following conditions are met:
deleted text end

deleted text begin (1) bedrock soils conditions are present in 80 percent or more of the acreage of
the district;
deleted text end

deleted text begin (2) the estimated cost of physical preparation of the site exceeds the fair market
value of the land before completion of the preparation; and
deleted text end

deleted text begin (3) revenues from tax increments are expended only for the additional costs of
preparing the site because of unstable soils and the bedrock soils condition, the additional
cost of installing public improvements because of unstable soils or the bedrock soils
condition, and reasonable administrative costs.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end Notwithstanding the provisions of this subdivision, revenues derived from tax
increment from an economic development district may be used to provide improvements,
loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
square feet of any separately owned commercial facility located within the municipal
jurisdiction of a small city, if the revenues derived from increments are spent only to
assist the facility directly or for administrative expenses, the assistance is necessary to
develop the facility, and all of the increments, except those for administrative expenses,
are spent only for activities within the district.

deleted text begin (d) For purposes of this subdivision, a qualified border retail facility is a development
consisting of a shopping center or one or more retail stores, if the authority finds that all
of the following conditions are satisfied:
deleted text end

deleted text begin (1) the district is in a small city located within one mile or less of the border of
the state;
deleted text end

deleted text begin (2) the development is not located in the seven-county metropolitan area, as defined
in section 473.121, subdivision 2;
deleted text end

deleted text begin (3) the development will contain new buildings or will substantially rehabilitate
existing buildings that together contain at least 25,000 square feet of retail space; and
deleted text end

deleted text begin (4) without the use of tax increment financing for the development, the development
or a similar competing development will instead occur in the bordering state or province.
deleted text end

deleted text begin (e)deleted text end new text begin(c) new text endA city is a small city for purposes of this subdivision if the city was a small
city in the year in which the request for certification was made and applies for the rest of
the duration of the district, regardless of whether the city qualifies or ceases to qualify
as a small city.

new text begin (d) Notwithstanding the requirements of paragraph (a) and the finding requirements
of section 469.174, subdivision 12, tax increments from an economic development district
may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
assistance in any form to developments consisting of buildings and ancillary facilities, if
all the following conditions are met:
new text end

new text begin (1) the municipality finds that the project will create or retain jobs in this state,
including construction jobs, and that construction of the project would not have
commenced before July 1, 2011, without the authority providing assistance under the
provisions of this paragraph;
new text end

new text begin (2) construction of the project begins no later than July 1, 2011; and
new text end

new text begin (3) the request for certification of the district is made no later than June 30, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any economic development district for which the request for certification
was made after June 30, 2009.
new text end

Sec. 16.

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


new text begin Subd. 4m. new text end

new text begin Temporary authority to stimulate construction. new text end

new text begin (a) Notwithstanding
the restrictions in any other subdivision of this section or any other law to the contrary,
except the requirement to pay bonds to which the increments are pledged and the
provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
more of the following purposes:
new text end

new text begin (1) to provide improvements, loans, interest rate subsidies, or assistance in any
form to private development consisting of the construction or substantial rehabilitation
of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
including construction jobs, and that the construction commences before July 1, 2011, and
would not have commenced before that date without the assistance; or
new text end

new text begin (2) to make an equity or similar investment in a corporation, partnership, or limited
liability company that the authority determines is necessary to make a construction of a
development that meets the requirements of clause (1) financially feasible.
new text end

new text begin (b) The authority may undertake actions under the authority of this subdivision only
after approval by the municipality of a written spending plan that specifically authorizes
the authority to take the actions. The municipality shall approve the spending plan only
after a public hearing after published notice in a newspaper of general circulation in
the municipality at least once, not less than ten days nor more than 30 days prior to the
date of the hearing.
new text end

new text begin (c) The authority to spend tax increments under this subdivision expires December
31, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to tax increments derived from a district, regardless of when the request for
certification was made.
new text end

Sec. 17.

Laws 1986, chapter 391, section 1, is amended to read:


Section 1.

The legislature finds that providing areawide and local financial assistance,
including the provision of security for debt financing, but not including direct subsidies to
private interests, in the development of the deleted text beginformer metropolitan stadium sitedeleted text endnew text begin Industrial
Development District 1 (Airport South) of the city of Bloomington, as amended
new text end, is a
public purpose of state, metropolitan, and local government in Minnesota and that it is a
benefit to the metropolitan area within the purpose of the metropolitan revenue distribution
program pursuant to chapter 473F.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.023.
new text end

Sec. 18.

Laws 1995, chapter 264, article 5, section 44, subdivision 4, as amended by
Laws 1996, chapter 471, article 7, section 21, and Laws 1997, chapter 231, article 10,
section 12, and Laws 2008, chapter 154, article 9, section 18, is amended to read:


Subd. 4.

Authority.

For housing replacement projects in the city of Crystal,
"authority" means the Crystal economic development authority. For housing replacement
projects in the city of Fridley, "authority" means the housing and redevelopment authority
in and for the city of Fridley or a successor in interest. For housing replacement
projects in the city of Minneapolis, "authority" means the Minneapolis community
development agency or its successors and assigns. For housing replacement projects
in the city of St. Paul, "authority" means the St. Paul housing and redevelopment
authority. For housing replacement projects in the city of Duluth, "authority" means the
Duluth economic development authority. For housing replacement projects in the city of
Richfield, "authority" is the authority as defined in Minnesota Statutes, section 469.174,
subdivision 2
, that is designated by the governing body of the city of Richfield. For
housing replacement projects in the city of Columbia Heights, "authority" is the authority
as defined in Minnesota Statutes, section 469.174, subdivision 2, that is designated by
the governing body of the city of Columbia Heights.new text begin For housing replacement projects in
the city of Brooklyn Park, "authority" is the authority as defined in Minnesota Statutes,
section 469.174, subdivision 2, that is designated by the governing body of the city of
Brooklyn Park.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the city of Brooklyn Park without local approval under Minnesota Statutes,
section 645.023, subdivision 1, clause (a).
new text end

Sec. 19.

Laws 1995, chapter 264, article 5, section 45, subdivision 1, as amended by
Laws 1996, chapter 471, article 7, section 22, and Laws 1997, chapter 231, article 10,
section 13, and Laws 2002, chapter 377, article 7, section 6, and Laws 2008, chapter 154,
article 9, section 19, is amended to read:


Subdivision 1.

Creation of projects.

(a) An authority may create a housing
replacement project under sections 44 to 47, as provided in this section.

(b) For the cities of Crystal, Fridley, Richfield, deleted text beginanddeleted text end Columbia Heightsnew text begin, and Brooklyn
Park
new text end, the authority may designate up to deleted text begin50deleted text endnew text begin 100new text end parcels in the city to be included in a
housing replacement districtnew text begin over the life of a district or districtsnew text end. deleted text beginNo more than ten
parcels may be included in year one of the district, with up to ten additional parcels added
to the district in each of the following nine years.
deleted text end For the cities of St. Paul and Duluth,
each authority may designate not more than 200 parcels in the city to be included in a
housing replacement district over the life of the district. For the city of Minneapolis, the
authority may designate not more than 400 parcels in the city to be included in housing
replacement districts over the life of the districts. The only parcels that may be included
in a district are (1) vacant sites, (2) parcels containing vacant houses, or (3) parcels
containing houses that are structurally substandard, as defined in Minnesota Statutes,
section 469.174, subdivision 10.

(c) The city in which the authority is located must pay at least 25 percent of the
housing replacement project costs from its general fund, a property tax levy, or other
unrestricted money, not including tax increments.

(d) The housing replacement district plan must have as its sole object the acquisition
of parcels for the purpose of preparing the site to be sold for market rate housing. As
used in this section, "market rate housing" means housing that has a market value that
does not exceed 150 percent of the average market value of single-family housing in that
municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the affected cities without local approval under Minnesota Statutes, section
645.023, subdivision 1, clause (a).
new text end

Sec. 20.

Laws 2008, chapter 366, article 5, section 28, subdivision 1, is amended to
read:


Subdivision 1.

Additional taxes authorized; use of proceeds.

Notwithstanding
Minnesota Statutes, section 477A.016, or any other law, ordinance, or charter provision
to the contrary, the governing body of the city of Bloomington may impose any or all of
the taxes described in this section. The proceeds of any taxes imposed under this section
or section 27, less refunds and the cost of collection, must be used to provide financing
for parking facilities or other public improvements for new text beginany phase of new text endthe Mall of America
deleted text begin phase IIdeleted text end. The Port Authority of the city of Bloomington may, but is not required to,
issue or cause the sale of bonds, a developer's note, or other obligations to finance the
improvements. If a governmental entity other than the city of Bloomington issues the
obligations used to finance the parking facilities and other public improvements, the
city may transfer the funds available under this section and section 27 for financing the
project to the entity that issued the bonds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.023.
new text end

Sec. 21.

Laws 2008, chapter 366, article 5, section 29, subdivision 1, is amended to
read:


Subdivision 1.

Issuing authority.

(a) The city of Bloomington may contract with
any of the following authorities to issue and sell revenue bonds for the purposes and
in the amounts specified in subdivision 2:

(1) the commissioner of finance, exercising the authority granted under this section
and Minnesota Statutes, sections 16A.672 to 16A.675;

(2) the Agricultural and Economic Development Board, exercising the powers
granted under this section and Minnesota Statutes, chapter 41A; or

(3) the Minnesota Public Facilities Authority, exercising the powers granted under
this section and Minnesota Statutes, chapter 446A.

(b) The authority granted in this section is in addition to the statutes in paragraph
(a) and notwithstanding any contrary provisions in them.

(c) The contract must include as a party the developer of new text beginany new text endphase deleted text beginIIdeleted text end of the Mall
of America and may include as a party any other entity deemed appropriate by the city
of Bloomington, the issuing authority, and the developer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.023.
new text end

Sec. 22.

Laws 2008, chapter 366, article 5, section 29, subdivision 2, is amended to
read:


Subd. 2.

Purposes and amounts.

(a) The revenue bonds may be issued in a single
or multiple issues and sold for the following purposes:

(1) to pay the costs to design, construct, furnish, and equip parking facilities and
deleted text begin relateddeleted text endnew text begin othernew text end public improvements for new text beginany new text endphase deleted text beginIIdeleted text end of the Mall of America;

(2) to pay the costs of issuance, debt service, and bond insurance or other credit
enhancements, and to fund reserves; and

(3) to refund bonds issued under this section.

(b) The amount of bonds that may be issued for the purposes of paragraph (a), clause
(1), may not exceed per issue the estimated cost from time to time of the parking facilities
and other public improvements, including soft costs; the amount of bonds that may be
issued for the purposes of paragraph (a), clauses (2) and (3), is not limited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.023.
new text end

Sec. 23.

Laws 2008, chapter 366, article 5, section 29, subdivision 4, is amended to
read:


Subd. 4.

Sale and issuance; proceeds.

(a) The issuing authority may sell and issue
the bonds on the terms and conditions the issuing authority determines to be in the best
interests of the state after reviewing an agreement between the city of Bloomington and
the developer of new text beginany new text endphase deleted text beginIIdeleted text end of the Mall of America setting out the terms upon which
the city of Bloomington will use the proceeds of the bond sales. The bonds may be sold
at public or private sale at a price or prices the issuing authority finds appropriate. The
issuing authority may enter any agreements or pledges the issuing authority determines
necessary or useful to sell the bonds that are not inconsistent with this section.

(b) The city may enter into a preliminary agreement with the issuing authority under
which the city agrees, if the revenue bonds are not issued, to pay or cause to be paid the
costs and expenses incurred by the issuing authority relating to the proposed issuance of
the revenue bonds.

(c) The proceeds of the bonds issued under this section must be credited to a special
Mall of America revenue bond proceeds account with the issuing authority or a trustee
and are appropriated to the issuing authority for payment to the city of Bloomington
for the purposes specified in subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.023.
new text end

Sec. 24. new text beginCITY OF ST. PAUL; AUTHORITY TO EXERCISE SPECIAL LAW
AUTHORITY.
new text end

new text begin Notwithstanding the failure of the governing body of the city of St. Paul to approve
Laws 1995, chapter 264, article 5, sections 44 to 47, as required by Laws 1995, chapter
264, article 5, section 49, the provisions of sections 44 to 47, as amended, apply to the city
of St. Paul without local approval under Minnesota Statutes, section 645.023, subdivision
1, clause (a).
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. 25. new text begin REPEALER.
new text end

new text begin Laws 1996, chapter 464, article 1, section 8, subdivision 5, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon local approval of and
compliance by the governing body of the city of Bloomington with the requirements
of Minnesota Statutes, section 645.023.
new text end