HF 3158

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to economic development; creating the greater 
  1.3             Minnesota redevelopment program; proposing coding for 
  1.4             new law in Minnesota Statutes, chapter 116J; repealing 
  1.5             Minnesota Statutes 2000, sections 116J.561; 116J.562; 
  1.6             116J.563; 116J.564; 116J.565; 116J.566; 116J.567. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [116J.571] [CREATION OF ACCOUNTS.] 
  1.9      Two greater Minnesota redevelopment accounts are created, 
  1.10  one in the general fund and one in the bond proceeds fund.  
  1.11  Money in the accounts may be used to make grants as provided in 
  1.12  section 116J.575.  Money in the bond proceeds fund may only be 
  1.13  used for eligible costs for publicly owned property.  Money in 
  1.14  the general fund may be used to pay for the commissioner's costs 
  1.15  in reviewing the applications. 
  1.16     Sec. 2.  [116J.572] [DEFINITIONS.] 
  1.17     Subdivision 1.  [SCOPE OF APPLICATION.] For purposes of 
  1.18  sections 116J.571 to 116J.576, the terms in this section have 
  1.19  the meanings given. 
  1.20     Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
  1.21  includes a statutory or home rule charter city, county, housing 
  1.22  and redevelopment authority, economic development authority, or 
  1.23  port authority located outside the seven-county metropolitan 
  1.24  area, as defined in section 473.121, subdivision 2. 
  1.25     Subd. 3.  [ELIGIBLE COSTS OR COSTS.] "Eligible costs" or 
  1.26  "costs" means the costs of land acquisition, stabilizing 
  2.1   unstable soils, demolition, infrastructure improvements, ponding 
  2.2   or other environmental infrastructure; building construction, 
  2.3   design and engineering; and adaptive reuse of buildings.  
  2.4   Eligible costs do not include project administration and legal 
  2.5   fees. 
  2.6      Subd. 4.  [REDEVELOPMENT.] "Redevelopment" means recycling 
  2.7   obsolete, abandoned, or underutilized properties for new 
  2.8   industrial, commercial, and/or residential uses. 
  2.9      Sec. 3.  [116J.573] [CRITERIA FOR ACCOUNTS AND PROJECTS.] 
  2.10     Subdivision 1.  [ACCOUNTS.] Criteria for use of the 
  2.11  accounts created in section 116J.571 must be consistent with and 
  2.12  promote the purposes of sections 116J.571 to 116J.576.  They 
  2.13  include, but are not limited to: 
  2.14     (1) creation and preservation of living wage jobs in 
  2.15  greater Minnesota; 
  2.16     (2) creating incentives for communities to include a full 
  2.17  range of housing opportunities; 
  2.18     (3) creating incentives for all communities to implement 
  2.19  compact, efficient, and mixed-use development; and 
  2.20     (4) creating incentives to assist communities in 
  2.21  maintaining a unique sense of place by preserving local, 
  2.22  cultural assets. 
  2.23     Subd. 2.  [PROJECTS.] To be eligible for funding by the 
  2.24  greater Minnesota redevelopment account, a project must: 
  2.25     (1) interrelate redevelopment with other public investments 
  2.26  in transportation, housing, schools, energy, utilities 
  2.27  information infrastructure, and other public services; 
  2.28     (2) interrelate affordable housing and employment growth 
  2.29  areas; 
  2.30     (3) intensify land use that leads to more compact 
  2.31  redevelopment; 
  2.32     (4) involve redevelopment that mixes incomes of residents 
  2.33  in housing, including introducing or reintroducing higher value 
  2.34  housing in lower income areas to achieve a mix of housing 
  2.35  opportunities; 
  2.36     (5) involve participation from citizens and the business 
  3.1   community in the planning and development of the proposed 
  3.2   redevelopment plan; 
  3.3      (6) encourage public infrastructure investments which 
  3.4   attract private sector redevelopment investment in commercial, 
  3.5   industrial, and residential properties adjacent to public 
  3.6   improvements, and provide project area residents with expanded 
  3.7   opportunities for private sector employment; or 
  3.8      (7) be sustainable at the local level and reduce the 
  3.9   probability of future requests for state development, 
  3.10  maintenance, or replacement assistance. 
  3.11     Subd. 3.  [OTHER FACTORS.] The factors listed in 
  3.12  subdivisions 1 and 2 are not ranked in order of priority.  
  3.13  Rather, the commissioner may weigh each factor depending upon 
  3.14  the facts and circumstances as the commissioner considers 
  3.15  appropriate.  The commissioner may consider other factors 
  3.16  including, but not limited to, blight reduction, community 
  3.17  stabilization, and property tax base maintenance or improvement. 
  3.18     Subd. 4.  [PARTNERSHIPS.] The commissioner shall give 
  3.19  priority to proposals using innovative financial partnerships 
  3.20  between government, private for-profit, and nonprofit sectors as 
  3.21  well as to proposals that meet current tax increment financing 
  3.22  requirements for a redevelopment district and contribute tax 
  3.23  increment financing towards the project. 
  3.24     Subd. 5.  [ANNUAL REPORT.] The commissioner shall prepare 
  3.25  and submit to the legislature an annual report on the greater 
  3.26  Minnesota redevelopment account.  The report must include 
  3.27  information on the amount of money in the account, the amount 
  3.28  distributed, to whom the funds were distributed and for what 
  3.29  purposes, and an evaluation of the effectiveness of the projects 
  3.30  funded in meeting the policies and goals of the program. 
  3.31     Sec. 4.  [116J.574] [GRANT APPLICATIONS.] 
  3.32     Subdivision 1.  [APPLICATION REQUIRED.] To obtain a grant, 
  3.33  a development authority shall apply to the commissioner. 
  3.34     Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
  3.35  prescribe and provide the application form.  The application 
  3.36  must include at least the following information: 
  4.1      (1) identification of the site; 
  4.2      (2) a detailed budget, including necessary supporting 
  4.3   evidence, of the total costs for the site including the total 
  4.4   eligible redevelopment costs; 
  4.5      (3) a complete redevelopment plan, including any specific 
  4.6   commitments from third parties to construct improvements on the 
  4.7   site; 
  4.8      (4) a complete financing plan, including the manner in 
  4.9   which the development authority uses innovative financial 
  4.10  partnerships between government, private for-profit, and 
  4.11  nonprofit sectors; and 
  4.12     (5) any additional information or material that the 
  4.13  commissioner prescribes. 
  4.14     Sec. 5.  [116J.575] [GRANTS.] 
  4.15     Subdivision 1.  [COMMISSIONER DISCRETION.] The 
  4.16  determination of whether to make a grant for a site is within 
  4.17  the discretion of the commissioner, subject to sections 116J.571 
  4.18  to 116J.576 and available unencumbered money in the greater 
  4.19  Minnesota redevelopment account.  The commissioner's decisions 
  4.20  and application of the priorities under this section are not 
  4.21  subject to judicial review, except for abuse of discretion. 
  4.22     Subd. 2.  [APPLICATION CYCLES.] In making grants, the 
  4.23  commissioner shall establish semiannual application deadlines in 
  4.24  which grants will be authorized from all or part of the 
  4.25  available money in the account. 
  4.26     Sec. 6.  [116J.576] [GREATER MINNESOTA REDEVELOPMENT 
  4.27  ADVISORY BOARD.] 
  4.28     Subdivision 1.  [CREATION; MEMBERSHIP.] The greater 
  4.29  Minnesota redevelopment advisory board shall consist of 12 
  4.30  members from greater Minnesota appointed by the commissioner of 
  4.31  the department of trade and economic development.  Board members 
  4.32  must represent a variety of stakeholders such as greater 
  4.33  Minnesota community officials, redevelopment experts, design 
  4.34  experts, other public sector funders, and community 
  4.35  representatives.  All members must be experienced in 
  4.36  redevelopment. 
  5.1      Subd. 2.  [MEMBERSHIP TERMS.] The membership terms, 
  5.2   compensation, removal, and filling of vacancies of public 
  5.3   members of the board are as provided in section 15.0575. 
  5.4      Subd. 3.  [CHAIR; OTHER OFFICES.] The chair of the board 
  5.5   shall be elected by the members.  The board may elect other 
  5.6   officers as necessary from its members. 
  5.7      Subd. 4.  [STAFF.] The commissioner of trade and economic 
  5.8   development shall provide staff, consultation support, 
  5.9   materials, and administrative services necessary for the board's 
  5.10  activities.  The services shall include personnel, budget, 
  5.11  payroll, and contract administration. 
  5.12     Subd. 5.  [DUTIES.] The principal duties of the greater 
  5.13  Minnesota redevelopment advisory board are to review and 
  5.14  recommend approval of financing for eligible projects to the 
  5.15  commissioner of trade and economic development. 
  5.16     Sec. 7.  [REPEALER.] 
  5.17     Minnesota Statutes 2000, sections 116J.561; 116J.562; 
  5.18  116J.563; 116J.564; 116J.565; 116J.566; and 116J.567, are 
  5.19  repealed.