HF 3655

as introduced - 91st Legislature (2019 - 2020) Posted on 02/20/2020 01:17pm

A bill for an act
relating to economic development; creating a regional exchange district in the city
of Sartell; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 469.

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

Section 1.

new text begin [469.55] SARTELL REGIONAL EXCHANGE DISTRICT.
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 terms defined in this
subdivision have the meanings given.
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new text begin (b) "Appropriation support payments" means payments from the state to the city pursuant
to subdivision 4.
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new text begin (c) "Business entity" means a medical or professional office or compatible commercial
business located within the district.
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new text begin (d) "City" means the city of Sartell.
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new text begin (e) "Commissioner" means the commissioner of employment and economic development.
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new text begin (f) "District" means the regional exchange district established under subdivision 2.
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new text begin (g) "Expenditures" means expenditures made by business entities on construction projects,
including but not limited to:
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new text begin (1) planning, predesign, and design, including architectural, engineering, project
management, and similar services;
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new text begin (2) legal, regulatory, and other compliance costs of the project;
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new text begin (3) land acquisition, demolition of existing improvements, and other site preparation
costs;
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new text begin (4) construction costs, including all materials and supplies of the project; and
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new text begin (5) equipment, furnishings, and fixtures.
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new text begin Expenditures excludes supplies and other items with a useful life of less than a year that
are not used or consumed in constructing improvements to real property or are otherwise
chargeable to capital costs.
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new text begin (h) "Qualified expenditures" means expenditures in the district beginning May 1, 2020,
and certified under subdivision 4, paragraph (a), and excludes any expenditures for which
reimbursement is or will be sought under subdivision 4, paragraph (b).
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new text begin (i) "Roadway improvement project" means a project serving the district to construct,
extend, or otherwise improve a road to support the business entities. A public infrastructure
project is not a business subsidy under section 116J.993.
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new text begin Subd. 2. new text end

new text begin Regional exchange district. new text end

new text begin (a) There is established in the city a regional
exchange district. The regional exchange district is bounded by, in the city of Sartell: Heritage
Drive, from Pine Cone Road South to Riverside Avenue South; Riverside Avenue South
from Heritage Drive to Trunk Highway 15; Trunk Highway 15 from Riverside Avenue
South to County Road 120; County Road 120 from Trunk Highway 15 to Pine Cone Road
South; and Pine Cone Road South from County Road 120 to Heritage Drive.
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new text begin (b) The public purposes of the district are to facilitate:
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new text begin (1) repurposing vacant or underutilized private land, or unutilized property interests such
as air rights, for development or redevelopment and to incent significant private investment;
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new text begin (2) redeveloping vacant or underutilized private land to increase its tax-generating and
job-creating potential or to provide housing or meet community needs; and
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new text begin (3) development by the anchoring institutions in the community, such as health care
organizations and institutions of higher education, to create opportunities to improve the
economy of the city and greater Minnesota regions and attract and retain workforce.
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new text begin Subd. 3. new text end

new text begin Regional exchange district roadway improvement projects. new text end

new text begin (a) All roadway
improvement projects are eligible for the state appropriation support payments allowed
under subdivision 4, upon approval by the Sartell City Council. Costs may be reimbursed
for projects that begin construction prior to 2035, but in no case may the aggregate state
payments for projects exceed $18,000,000.
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new text begin Subd. 4. new text end

new text begin Appropriation support payments. new text end

new text begin (a) By February 1 of each year, the city
must certify to the commissioner the total amount of business entities' qualifying
expenditures, if any. The certification must be made in the form that the commissioner
prescribes and include any documentation and supporting information regarding the qualified
expenditures that the commissioner requires. By June 1 of the year in which a certification
was submitted, the commissioner must confirm or revise the amount of the qualified
expenditures.
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new text begin (b) The commissioner must make an appropriation support payment to the city for each
$25,000,000 in qualified expenditures made by business entities. The amount of the payment
is $4,500,000. The commissioner must not make more than four appropriation support
payments to the city. The city must contribute $250,000 in revenue for each appropriation
support payment to be used for roadway improvement projects financed by the appropriation
support payment.
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new text begin (c) The city must use the appropriation support payments it receives under this subdivision
for roadway improvement projects, including the cost to finance such projects. Improvements
include predesign, design, engineering, acquisition of right-of-way, replacement or repair
of utilities, street reconstruction, addition or reconstruction of sidewalks, street lighting,
and other improvements or upgrades related to street work. The city must maintain
appropriate records to document the use of the funds under this subdivision.
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new text begin (d) The commissioner must make an appropriation support payment allowed under this
subdivision by September 1 of the year in which a certification made under paragraph (a)
establishes that the business entities' qualifying expenditures at least meet the $25,000,000
threshold established for payments in paragraph (b).
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new text begin (e) No aid may be paid under this section after fiscal year 2035.
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new text begin (f) An amount sufficient to pay the appropriation support payments authorized under
this section to the city is appropriated to the commissioner from the general fund.
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new text begin EFFECTIVE DATE. new text end

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