HF 4977

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/15/2024 10:31pm

A bill for an act
relating to taxation; modifying authority related to the Hennepin County local sales
and use tax; amending Minnesota Statutes 2022, sections 473.756, by adding a
subdivision; 473.757, subdivisions 1, 2, 3, 4, 7, 8, 9, 11, by adding subdivisions;
473.759, subdivision 3.

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

Section 1.

Minnesota Statutes 2022, section 473.756, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Authority deemed qualifying government for long-term equity
investment. new text end

new text begin The authority is deemed a qualifying government for purposes of section
118A.09, subdivision 1. Whenever the authority's investments are managed by the county,
the authority's additional long-term equity investment limitations as provided in section
118A.09, subdivision 3, are calculated based on the county's most recent audited statement
of net position instead of the authority's most recent audited statement of net position.
new text end

Sec. 2.

Minnesota Statutes 2022, section 473.757, subdivision 1, is amended to read:

Subdivision 1.

Ballpark grants.

The county may authorize, by resolution, and make
one or more grants to the authority for ballpark development and construction, public
infrastructure, new text begin capital improvements of the ballpark or public infrastructure within the
development area, new text end reserves for capital improvements, and other purposes related to the
ballpark on the terms and conditions agreed to by the county and the authority.

Sec. 3.

Minnesota Statutes 2022, section 473.757, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Hennepin County health care facilities. new text end

new text begin (a) To the extent funds are available
from collections of the tax authorized by subdivision 10 after payment each year of debt
service on the bonds authorized and issued under subdivision 9 and payments for the purposes
described in subdivision 1, the county may also authorize, by resolution, appropriations to
fund:
new text end

new text begin (1) the development, construction, improvement, and equipping of county-owned or
operated health care facilities;
new text end

new text begin (2) public infrastructure determined by the county to facilitate the development and use
of facilities described in clause (1);
new text end

new text begin (3) reserves for capital improvements; and
new text end

new text begin (4) other purposes related to health care facilities.
new text end

new text begin (b) Funds may be authorized pursuant to this subdivision through the county's capital
improvement budget.
new text end

Sec. 4.

Minnesota Statutes 2022, section 473.757, subdivision 2, is amended to read:

Subd. 2.

Youth sports; library.

To the extent funds are available from collections of
the tax authorized by subdivision 10 after payment each year of debt service on the bonds
authorized and issued under subdivision 9 and payments for the purposes described in
deleted text begin subdivision deleted text end new text begin subdivisions new text end 1 new text begin and 1a new text end , the county may also authorize, by resolution, deleted text begin and expend
or make deleted text end grants to the authority and to other governmental units and nonprofit organizations
in an aggregate amount of up to $4,000,000 annually, increased by up to 1.5 percent annually
to fund equally: (1) youth activities and youth and amateur sports within Hennepin County;
and (2) the cost of extending the hours of operation of Hennepin County libraries deleted text begin and
Minneapolis public libraries deleted text end . new text begin Funds authorized pursuant to this paragraph may be expended
consistent with the terms of each grant.
new text end

The money provided under this subdivision is intended to supplement and not supplant
county expenditures for these purposes as of May 27, 2006.

Hennepin County must provide reports to the chairs of the committees and budget
divisions in the senate and the house of representatives that have jurisdiction over education
policy and funding, describing the uses of the money provided under this subdivision. The
first report must be made by January 15, 2009, and subsequent reports must be made on
January 15 of each subsequent odd-numbered year.

Sec. 5.

Minnesota Statutes 2022, section 473.757, subdivision 3, is amended to read:

Subd. 3.

new text begin Initial new text end expenditure limitations.

The amount that the county may grant or
expend for ballpark costs shall not exceed $260,000,000. deleted text begin The amount of any grant for capital
improvement reserves shall not exceed $1,000,000 annually, subject to the agreement under
section 473.759, subdivision 3, and to annual increases according to an inflation index
acceptable to the county. deleted text end The amount of grants or expenditures for land, site improvements,
and public infrastructure shall not exceed $90,000,000, excluding capital improvement
reserves, bond reserves, capitalized interest, and financing costs. The authority to spend
money for land, site improvements, and public infrastructure is limited to payment of
amounts incurred or for construction contracts entered into during the period ending five
years after the date of the issuance of the initial series of bonds under Laws 2006, chapter
257. Such grant agreements are valid and enforceable notwithstanding that they involve
payments in future years and they do not constitute a debt of the county within the meaning
of any constitutional or statutory limitation or for which a referendum is required.

Sec. 6.

Minnesota Statutes 2022, section 473.757, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Capital improvement grants. new text end

new text begin Notwithstanding the limitations in subdivision
3, the county may make grants to the authority for capital improvement expenditures. The
amount of any grant to the authority for capital improvement expenditures must not exceed
$9,000,000 annually. The grants are subject to agreement under section 473.759, subdivision
3, and to annual increases according to an inflation index acceptable to the county. Grant
agreements are valid and enforceable notwithstanding the fact that they involve payments
in future years. The grants do not constitute a debt of the county within the meaning of any
constitutional or statutory limitation or for which a referendum is required.
new text end

Sec. 7.

Minnesota Statutes 2022, section 473.757, subdivision 4, is amended to read:

Subd. 4.

Property acquisition and disposition.

new text begin (a) new text end The county may acquire by purchase,
eminent domain, or gift, land, air rights, and other property interests within the development
area for the ballpark site and public infrastructure and convey it to the authority with or
without consideration, prepare a site for development as a ballpark, and acquire and construct
any related public infrastructure. The purchase of property and development of public
infrastructure financed with revenues under this section is limited to infrastructure within
the development area or within 1,000 feet of the border of the development area. The public
infrastructure may include the construction and operation of parking facilities within the
development area notwithstanding any law imposing limits on county parking facilities in
the city of Minneapolis. The county may acquire and construct property, facilities, and
improvements within the stated geographical limits for the purpose of drainage and
environmental remediation for property within the development area, walkways and a
pedestrian bridge to link the ballpark to Third Avenue distributor ramps, street and road
improvements and access easements for the purpose of providing access to the ballpark,
streetscapes, connections to transit facilities and bicycle trails, and any utility modifications
which are incidental to any utility modifications within the development area.

new text begin (b) The county or any of its subsidiaries may acquire by purchase, eminent domain, or
gift, land, air rights, and other property interests within the county for health care facilities
and related infrastructure.
new text end

new text begin (c) new text end To the extent property parcels or interests acquired are more extensive than the public
infrastructure requirements, the county may sell or otherwise dispose of the excess. The
proceeds from sales of excess property must be deposited in the debt service reserve fund.

Sec. 8.

Minnesota Statutes 2022, section 473.757, subdivision 7, is amended to read:

Subd. 7.

Local government expenditures.

The county may make expenditures or grants
for other costs incidental and necessary to further the purposes of Laws 2006, chapter 257, new text begin
and this act new text end and may by agreement, reimburse in whole or in part, any entity that has granted,
loaned, or advanced funds to the county to further the purposes of Laws 2006, chapter 257 new text begin ,
and this act new text end . The county shall reimburse a local governmental entity within its jurisdiction
or make a grant to such a governmental unit for site acquisition, preparation of the site for
ballpark development, and public infrastructure. Amounts expended by a local governmental
unit with the proceeds of a grant or under an agreement that provides for reimbursement by
the county shall not be deemed an expenditure or other use of local governmental resources
by the governmental unit within the meaning of any law or charter limitation. Exercise by
the county of its powers under this section shall not affect the amounts that the county is
otherwise eligible to spend, borrow, tax, or receive under any law.

Sec. 9.

Minnesota Statutes 2022, section 473.757, subdivision 8, is amended to read:

Subd. 8.

County authority.

It is the intent of the legislature that, except as expressly
limited herein, the county has the authority to acquire and develop a site for the ballpark
and public infrastructure, to enter into contracts with the authority and other governmental
or nongovernmental entities, to appropriate funds, new text begin to fund capital reserves and make capital
improvements, new text end and to make employees, consultants, and other revenues available for those
purposes.

Sec. 10.

Minnesota Statutes 2022, section 473.757, subdivision 9, is amended to read:

Subd. 9.

County revenue bonds.

new text begin (a) new text end The county may, by resolution, authorize, sell, and
issue revenue bonds to provide funds to make a grant or grants to the authority and to finance
all or a portion of the costs of site acquisition, site improvements, and other activities
necessary to prepare a site for development of a ballpark, to construct, improve, and maintain
the ballpark and to establish and fund any capital improvement reserves, and to acquire and
construct any related parking facilities and other public infrastructure and for other costs
incidental and necessary to further the purposes of Laws 2006, chapter 257. The county
may also, by resolution, issue bonds to refund the bonds issued pursuant to this section. The
bonds must be limited obligations, payable solely from or secured by taxes levied under
subdivision 10, and any other revenues to become available under Laws 2006, chapter 257.
The bonds may be issued in one or more series and sold without an election. The bonds
shall be sold in the manner provided by section 475.60. The bonds shall be secured, bear
the interest rate or rates or a variable rate, have the rank or priority, be executed in the
manner, be payable in the manner, mature, and be subject to the defaults, redemptions,
repurchases, tender options, or other terms, as the county may determine. The county may
enter into and perform all contracts deemed necessary or desirable by it to issue and secure
the bonds, including an indenture of trust with a trustee within or without the state. The debt
represented by the bonds shall not be included in computing any debt limitation applicable
to the county. Subject to this subdivision, the bonds must be issued and sold in the manner
provided in chapter 475. The bonds shall recite that they are issued under Laws 2006, chapter
257, and the recital shall be conclusive as to the validity of the bonds and the imposition
and pledge of the taxes levied for their payment. In anticipation of the issuance of the bonds
authorized under this subdivision and the collection of taxes levied under subdivision 10,
the county may provide funds for the purposes authorized by Laws 2006, chapter 257,
through temporary interfund loans from other available funds of the county which shall be
repaid with interest.

new text begin (b) The county may, by resolution, authorize, sell, and issue revenue bonds to provide
funds to finance all or a portion of the costs of county-owned or operated health care facilities,
including but not limited to site acquisition, site improvements, and other activities necessary
to prepare a site for development of health care facilities, and construct, maintain, and
improve health care facilities and to establish and fund any capital improvement reserves,
and to acquire and construct any related parking facilities and related infrastructure and for
other costs incidental and necessary to further the purposes of this act. The county may also,
by resolution, issue bonds to refund the bonds issued pursuant to this section. The bonds
may be limited obligations, payable solely from or secured by taxes levied under subdivision
10, and any other revenues to become available under this act, and the county may also
pledge its full faith, credit, and taxing power as additional security for the bonds. The bonds
may be issued in one or more series and sold without an election. The bonds shall be sold
in the manner provided by section 475.60. The bonds shall be secured, bear the interest rate
or rates or a variable rate, have the rank or priority, be executed in the manner, be payable
in the manner, mature, and be subject to the defaults, redemptions, repurchases, tender
options, or other terms, as the county may determine. The county may enter into and perform
all contracts deemed necessary or desirable by it to issue and secure the bonds, including
an indenture of trust with a trustee within or without the state. The debt represented by the
bonds shall not be included in computing any debt limitation applicable to the county.
Subject to this subdivision, the bonds must be issued and sold in the manner provided in
chapter 475. The bonds shall recite that they are issued under this act, and the recital shall
be conclusive as to the validity of the bonds and the imposition and pledge of the taxes
levied for their payment. In anticipation of the issuance of the bonds authorized under this
subdivision and the collection of taxes levied under subdivision 10, the county may provide
funds for the purposes authorized by this act, through temporary interfund loans from other
available funds of the county which shall be repaid with interest.
new text end

Sec. 11.

Minnesota Statutes 2022, section 473.757, subdivision 11, is amended to read:

Subd. 11.

Uses of tax.

(a) Revenues received from the tax imposed under subdivision
10 may be used:

(1) to pay costs of collection;

(2) to pay or reimburse or secure the payment of any principal of, premium, or interest
on bonds issued in accordance with Laws 2006, chapter 257, section 12 new text begin , and this act new text end ;

(3) to pay costs and make expenditures and grants described in deleted text begin this section deleted text end new text begin subdivisions
1 and 1a new text end , including financing costs related to them;

(4) to maintain reserves for the foregoing purposes deemed reasonable and appropriate
by the county;

(5) to pay for operating costs of the ballpark authority other than the cost of operating
or maintaining the ballpark; and

(6) to make expenditures and grants for youth activities and amateur sports and extension
of library hours as described in subdivision 2;

and for no other purpose.

(b) Revenues from the tax designated for use under paragraph (a), clause (5), must be
deposited in the operating fund of the ballpark authority.

(c) After completion of the ballpark and public infrastructure, the tax revenues not
required for current payments of the expenditures described in paragraph (a), clauses (1) to
(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for
payment of future obligations under grants or other commitments for future expenditures
which are permitted by this section. Upon the redemption or defeasance of the bonds and
the establishment of reserves adequate to meet such future obligations, the taxes shall
terminate and shall not be reimposed. For purposes of this subdivision, "reserves adequate
to meet such future obligations" means a reserve that does not exceed the net present value
of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to
fund the reserve for capital improvements required under section 473.759, subdivision 3,
for new text begin the later of (i) new text end the 30-year period beginning on the date of the original issuance of deleted text begin the
bonds deleted text end new text begin the latest-issued series of bonds issued pursuant to subdivision 9 new text end , less those obligations
that the county has already paid new text begin , or (ii) the period extending through the final term of the
agreement in section 473.759, subdivision 4, as the agreement may be modified or extended
from time to time new text end .

Sec. 12.

Minnesota Statutes 2022, section 473.759, subdivision 3, is amended to read:

Subd. 3.

Reserve for capital improvements.

The authority shall require that a reserve
fund for capital improvements to the ballpark be established and funded with annual payments
of deleted text begin $2,000,000 deleted text end new text begin $13,500,000 new text end , with the team's share of those payments to be approximately
deleted text begin $1,000,000 deleted text end new text begin $4,500,000 new text end , as determined by agreement of the team and county. The annual
payments shall increase according to an inflation index determined by the deleted text begin authority, provided
that any portion of the team's contribution that has already been reduced to present value
shall not increase according to an inflation index deleted text end new text begin county new text end . The authority may accept
contributions from the county or other source for the portion of the funding not required to
be provided by the team.

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective the day following final enactment.
new text end