HF 2894

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; imposing certain 
  1.3             conditions for the use of economic recovery grants; 
  1.4             amending Minnesota Statutes 1994, section 116J.873, as 
  1.5             amended. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 116J.873, as 
  1.8   amended by Laws 1995, chapter 224, sections 55 and 56, is 
  1.9   amended to read: 
  1.10     116J.873 [ECONOMIC RECOVERY MINNESOTA INVESTMENT FUND 
  1.11  GRANTS.] 
  1.12     Subdivision 1.  [ADMINISTRATION.] Economic recovery 
  1.13  Minnesota investment fund grants shall be made available to 
  1.14  local communities and recognized Indian tribal governments in 
  1.15  accordance with the rules adopted for economic development 
  1.16  grants in the small cities community development block grant 
  1.17  programs, except that all units of general purpose local 
  1.18  government are eligible applicants for economic recovery 
  1.19  Minnesota investment fund grants.  The commissioner of trade and 
  1.20  economic development shall administer the economic 
  1.21  recovery Minnesota investment fund grant program as a part of 
  1.22  the small cities development program.  A city, county, or town 
  1.23  may grant money received under this section to a regional 
  1.24  development commission to provide the local match required for 
  1.25  capitalization of a regional revolving loan fund. 
  2.1      Subd. 2.  [ECONOMIC RECOVERY MINNESOTA INVESTMENT FUND 
  2.2   GRANT DEFINED.] "Economic recovery Minnesota investment fund 
  2.3   grant" means an agreement between the state and an eligible 
  2.4   recipient through which the state provides money to carry out 
  2.5   specified programs, services, or activities designed to create 
  2.6   new employment, maintain existing employment, increase the local 
  2.7   tax base, or otherwise increase economic activity in a community.
  2.8      Subd. 3.  [GRANT EVALUATION.] The commissioner shall 
  2.9   accept, review, and evaluate applications for grants to local 
  2.10  units of government made in accordance with rules adopted for 
  2.11  economic development grants in the small cities development 
  2.12  program.  Projects must be evaluated based on the existence of 
  2.13  the following conditions: 
  2.14     (1) whether assistance is necessary to provide equity to 
  2.15  business owners who do not have the capacity to invest in a 
  2.16  project; 
  2.17     (2) whether there is an inability to secure sufficient 
  2.18  financing from other public or private sources at market 
  2.19  interest rates or on favorable market terms; 
  2.20     (3) whether assistance is necessary to attract out-of-state 
  2.21  businesses or to retain existing business within the state; and 
  2.22     (4) whether there are excessive public infrastructure or 
  2.23  improvement costs beyond the means of the affected community and 
  2.24  private participants in the project. 
  2.25     A grant or loan cannot may be made based solely on a 
  2.26  finding that the condition in clause (3) exists, but the grant 
  2.27  or loan may be used only for workforce training through the job 
  2.28  skills partnership program.  For any other use of a grant or 
  2.29  loan, a finding must be made that a condition in clause (1), 
  2.30  (2), or (4) also exists. 
  2.31     Applications recommended for funding shall be submitted to 
  2.32  the commissioner. 
  2.33     Subd. 4.  [GRANT LIMITS.] An economic recovery A Minnesota 
  2.34  investment fund grant may not be approved for an amount over in 
  2.35  excess of $500,000.  If the amount of the a requested grant is 
  2.36  reduced to less than $500,000, the reasons for the 
  3.1   reduction shall must be given to the applicant.  The portion of 
  3.2   an economic recovery a Minnesota investment fund grant that 
  3.3   exceeds $100,000 must be repaid to the state when it is repaid 
  3.4   to the local community or recognized Indian tribal government by 
  3.5   the person or entity to which it was loaned by the local 
  3.6   community or Indian tribal government.  Money repaid to the 
  3.7   state must be credited to the general fund.  A grant may not be 
  3.8   loaned to a person or entity for the operation or expansion of a 
  3.9   store which is used solely or principally for retail sales.  
  3.10  Persons or entities receiving loans must pay their employees at 
  3.11  a rate equal to at least 175 percent of the minimum wage set by 
  3.12  section 177.24, subdivision 1. 
  3.13     Subd. 5.  [SPORTS FACILITY.] An economic recovery A 
  3.14  Minnesota investment fund grant or loan cannot be used for a 
  3.15  project related to a sports facility.  For the purpose of this 
  3.16  subdivision, "sports facility" means a building that has a 
  3.17  professional sports team as a principal tenant.