HF 5194

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 11:52am

A bill for an act
relating to taxation; providing special authority and provisions related to property
taxes, tax increment financing, and sales and use taxes for certain projects in the
city of Brooklyn Park; providing special tax increment financing authority;
providing special property tax abatement authority; authorizing establishment of
a value capture district; providing a refundable sales and use tax exemption for
construction materials; appropriating money.

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

Section 1. CITY OF BROOKLYN PARK; TIF AUTHORITY; VILLAGE CREEK
AREA.

Subdivision 1.

Establishment of districts.

Upon the termination of Tax Increment
Financing District No. 20 within the city of Brooklyn Park, under the special rules established
in subdivision 2, the economic development authority of the city of Brooklyn Park or city
of Brooklyn Park may establish one or more redevelopment tax increment financing districts
located wholly within the area of the city of Brooklyn Park. The districts may be comprised
of the following parcels identified by their current parcel identification numbers:

2011921430101	2011921440088	2011921430092	2011921430099	2111921330104
2111921340003	2111921340005	2111921340006	2111921340019	2111921340021
2111921330066	2111921330068	2111921340017	2111921340018	2811921130004
2811921130005	2811921140007	2811921210003	2811921220002	2811921220007
2811921240004	2811921240009	2811921240010	2811921240107	2811921310001
2811921340010	2911921120032	2811921130014	2811921130015	2811921130024
2811921140012	2811921210014	2811921210020	2811921210023	2811921210103
2811921220001	2811921220003	2811921220005	2811921240007	2811921340006
2911921120001	2911921120004	2011921440089	2111921330067	2111921340002
2111921340004	2111921340027	2111921340113	2811921120001	2811921130001
2811921130017	2811921130023	2811921210001	2811921210016	2811921210033
2811921210060	2811921210101	2811921240006	2811921240017	2911921110004
2911921120005	2011921430093	2011921430100	2011921430102	2011921430103
2111921330102	2111921330103	2111921340001	2111921340007	2111921340020
2111921340022	2811921120002	2811921120104	2811921130002	2811921130020
2811921130021	2811921210022	2811921210034	2811921210099	2811921210102
2811921220006	2811921240003	2811921240012	2811921340005	2811921340009
2911921110118	2911921120006	2911921120043	3311921210001

together with adjacent and internal roads and rights-of-way, and the following roadways
within the city of Brooklyn Park: Zane Avenue North (from and including the intersection
at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard
(from and including the intersection at the border of Brooklyn Center to and including the
intersection at Kentucky Avenue North), Brookdale Drive North (from and including the
intersection at Zane Avenue North to and including the intersection at Welcome Avenue
North), Village Creek Parkway North, 77th Avenue North (from and including the
intersection at Village Creek Parkway North to and including the intersection at Brookdale
Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at
Zane Avenue North to and including the intersection at Brooklyn Boulevard).

Subd. 2.

Special rules.

If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:

(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;

(2) expenditures incurred in connection with the development of the property described
in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and

(3) in addition to any expenditure authorized to be financed with increments under
Minnesota Statutes, section 469.176, subdivision 4, increments from such districts may be
spent within the areas described in subdivision 1 on any of the following expenditures:

(i) acquiring and improving public streets and public spaces, including public art and
landscaping; and

(ii) commercial and residential building rehabilitation and facade improvements; and

(4) the requirements, limitations, or restrictions in the following statutes do not apply:
Minnesota Statutes, section 469.174, subdivision 25, clause (2); section 469.176, subdivisions
4l and 5; and section 469.1763, subdivisions 2, 3 and 4.

Subd. 3.

Expiration.

The authority to request certification of any district under this
section expires on December 31, 2044.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 2. CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.

Subdivision 1.

Establishment of districts.

Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish one or more redevelopment districts located wholly within
the area of the city of Brooklyn Park. The districts may be comprised of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:

0811921410009	0811921140050	0811921140051	0911921120005	0911921210007
0911921230008	0911921230049	0911921240006	0911921240009	0911921310004
0911921320018	0911921330009	0911921430006	0911921430014	0911921430015
0911921430019	0911921430020	0911921430028	0911921430030	0911921430033
0911921430037	0911921430038	0911921430040	0911921430048	0911921430054
0911921430055	0911921430059	0911921430069	0911921430071	0911921430072
0911921430076	0911921430080	0911921430081	0911921430082	0911921430083
0911921430086	0911921430087	0911921430088	0911921430094	0911921430095
0911921430099	0911921430104	0911921430114	0911921210005	0911921210095
0911921220070	0911921220071	0911921230009	0911921230010	0911921230011
0911921230012	0911921230013	0911921240005	0911921240008	0911921310007
0911921310009	0911921320023	0911921330008	0911921330011	0911921340008
0911921340014	0911921340017	0911921430018	0911921430024	0911921430025
0911921430029	0911921430034	0911921430035	0911921430039	0911921430044
0911921430045	0911921430049	0911921430058	0911921430060	0911921430061
0911921430062	0911921430063	0911921430067	0911921430068	0911921430090
0911921430093	0911921430097	0911921430098	0911921430102	0911921430103
0911921430112	0911921430113	0911921430120	0811921440008	0911921210006
0911921210096	0911921210100	0911921210101	0911921220008	0911921220017
0911921230014	0911921230015	0911921240004	0911921240007	0911921310010
0911921310011	0911921310012	0911921330010	0911921330012	0911921340009
0911921430013	0911921430017	0911921430021	0911921430022	0911921430026
0911921430031	0911921430032	0911921430036	0911921430041	0911921430042
0911921430046	0911921430053	0911921430057	0911921430064	0911921430065
0911921430073	0911921430077	0911921430078	0911921430100	0911921430105
0911921430107	0911921430108	0911921430110	0911921430115	0911921430117
0911921430118	0911921210097	0911921210099	0911921220014	0911921220015
0911921220068	0911921230005	0911921320016	0911921320021	0911921320024
0911921330006	0911921340015	0911921340016	0911921430009	0911921430010
0911921430011	0911921430012	0911921430016	0911921430023	0911921430027
0911921430043	0911921430047	0911921430050	0911921430051	0911921430052
0911921430056	0911921430066	0911921430070	0911921430074	0911921430075
0911921430079	0911921430084	0911921430085	0911921430089	0911921430091
0911921430092	0911921430096	0911921430101	0911921430106	0911921430109
0911921430111	0911921430116	0911921430119	0611921440003	Unplatted 0611921

Subd. 2.

Special rules.

If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:

(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;

(2) expenditures incurred in connection with the development of the property described
in subdivision 1, are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and

(3) in addition to any expenditure authorized to be financed with increments under
Minnesota Statutes, section 469.176, subdivision 4, increments from such districts may be
spent within the areas described in subdivision 1 on any of the following expenditures:

(i) building or property improvements that enhance environmental sustainability;

(ii) commercial and residential building rehabilitation and facade improvements;

(iii) increased costs of building materials resulting from higher quality building materials
approved by the city or the authority; and

(iv) purchase of right-of-way, easements, and the construction of new infrastructure,
including roadways, trails, sidewalks, storm sewer infrastructure and management, sanitary
sewer infrastructure, water main infrastructure, installation of a new water tower, street and
pedestrian lighting, private utility burial, public plazas, bike facilities, landscaping and
irrigation, and public art; and

(4) the requirements, limitations, or restrictions in the following statutes do not apply:
Minnesota Statutes, section 469.174, subdivision 25, clause (2); section 469.176, subdivisions
4l and 5; and section 469.1763, subdivisions 2, 3 and 4.

Subd. 3.

Expiration.

The authority to request certification of any district under this
section expires on December 31, 2044.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 3. CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.

Subdivision 1.

Establishment.

Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Park or the city of Brooklyn Park
may establish one or more redevelopment districts located wholly within the area of the
city of Brooklyn Park. The districts may be comprised of the following parcels identified
by their current parcel identification numbers together with adjacent and internal roads and
rights-of-way:

0711921110007	0711921140001	0711921140002	0711921140007	0711921240002
0711921240004	0711921110005	0711921120009	0711921220003	0711921230001
0711921230002	0811921230004	0711921110004	0711921110006	0711921110008
0711921120005	0711921130005	0711921140005	0711921140006	0711921210003
0711921110003	0711921120006	0811921230002	0811921220002

Subd. 2.

Special rules.

If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:

(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;

(2) expenditures incurred in connection with the development of the property described
in subdivision 1, are deemed to meet the requirements of Minnesota Statutes, section 469.176,
subdivision 4j; and

(3) in addition to any expenditure authorized to be financed with increments under
Minnesota Statutes, section 469.176, subdivision 4, increments from such districts may be
spent within the areas described in subdivision 1 on any of the following expenditures:

(i) building or property improvements that enhance environmental sustainability;

(ii) commercial and residential building rehabilitation and facade improvements;

(iii) increased costs of building materials resulting from higher quality building materials
approved by the city or the authority; and

(iv) purchase of right-of-way, easements, and the construction of new infrastructure,
including roadways, trails, sidewalks, storm sewer infrastructure and management, sanitary
sewer infrastructure, water main infrastructure, installation of a new water tower, street and
pedestrian lighting, private utility burial, public plazas, bike facilities, landscaping and
irrigation, and public art; and

(4) the requirements, limitations, or restrictions in the following statutes do not apply:
Minnesota Statutes, section 469.174, subdivisions 25, clause (2); section 469.176,
subdivisions 4l and 5; and section 469.1763, subdivisions 2, 3 and 4.

Subd. 3.

Expiration.

The authority to request certification of any district under this
section expires on December 31, 2044.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 4. CITY OF BROOKLYN PARK; TIF AUTHORITY; DISTRICT NOS. 18
AND 20.

Notwithstanding Minnesota Statutes, sections 469.174 to 469.1794, increment from Tax
Increment Financing Districts Nos. 18 and 20 may be collected for 25 years after the date
of receipt by the economic development authority of the city of Brooklyn Park of the first
increment there from and any increment received by the economic development authority
of the city of Brooklyn Park from Tax Increment Financing Districts Nos. 18 and 20 is not
required to be returned to Hennepin County for redistribution and may be transferred to the
account held by the economic development authority of the city of Brooklyn Park or the
city of Brooklyn Park for Tax Increment Financing District No. 3 and spent in accordance
with the requirements for expenditures of increment received from Tax Increment Financing
District No. 3 and the budget for expenditures under the tax increment financing plan is
deemed increased by the amount so transferred without any further action by the city or the
authority.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 5. CITY OF BROOKLYN PARK; TIF AUTHORITY; DISTRICT NO. 3.

Any increment received as a transfer from Tax Increment Financing District Nos. 18
and 20 that is spent in accordance with the tax increment financing plan is deemed to meet
the requirements of Minnesota Statutes, section 469.1763, subdivision 2.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 6. CITY OF BROOKLYN PARK; VALUE CAPTURE DISTRICT
AUTHORIZATION.

Subdivision 1.

Definitions.

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

(b) "City" means the city of Brooklyn Park.

(c) "County" means Hennepin County.

(d) "District" means the areas certified by the city under subdivision 2 for collection of
value capture taxes.

(e) "Project area" means the parcels all or a portion of which are within one-half mile
on each side of the METRO Blue Line Light Rail to be built in the city, as further described
in the resolution adopted under subdivision 2 and as determined in the city's sole discretion.

(f) "TIF law" means Minnesota Statutes, sections 469.174 to 469.1794, inclusive, as
amended.

Subd. 2.

Authority to establish and modify district.

(a) The city council may, by
resolution, establish a value capture district consisting of some or all of the taxable parcels
all or a portion of which are within a one-quarter mile radius of any station on the METRO
Blue Line Light Rail to be built in the city, as further described in the resolution.

(b) The city may establish the district and the project area only after holding a public
hearing on its proposed creation after publishing notice of the hearing and the proposal at
least once, not less than ten days or more than 30 days before the date of the hearing.

(c) The city may at any time, by resolution, remove parcels from the district. If the city
removes parcels from the district, the city shall notify the county auditor under subdivision
3, paragraph (a), for recalculation of the district's original net tax capacity for future years.

Subd. 3.

Calculation of value capture district; administrative provisions.

(a) If the
city establishes a value capture district under subdivision 2, the city shall request that the
county auditor certify the original net tax capacity of the district in accordance with
Minnesota Statutes, section 469.177, subdivision 1, for calculation of the district's tax
revenues.

(b) For purposes of calculating the tax revenues of the district, the county auditor shall
treat the district as if it were a tax increment financing district under the provisions of
Minnesota Statutes, section 469.177, subdivision 1, and shall calculate the tax revenues of
the district for each year of its duration under subdivision 5 as equaling the amount of tax
increment that would be computed by applying the provisions of Minnesota Statutes, section
469.177, subdivisions 1, 1b, and 3, to determine captured tax capacity and multiplying by
the current tax rate, excluding the state general tax rate, disregarding any reference to the
original local tax rate, and assuming the city may retain the full captured net tax capacity
under Minnesota Statutes, section 469.177, subdivision 2. The city shall provide the county
auditor with the necessary information to calculate the tax revenues, including the city's
option for calculating revenues derived from the areawide tax rate under Minnesota Statutes,
chapter 473F.

(c) The county auditor shall pay the tax revenues of the district to the city at the same
times provided for settlement of taxes and payment of tax increments. The city must use
the tax revenues as provided under subdivision 4.

Subd. 4.

Permitted uses of district tax revenue.

(a) In addition to paying the
administrative costs of the district, the city may spend tax revenues within the project area
on any expenditure authorized to be financed with increment under the TIF law and on any
of the following expenditures:

(1) acquiring and improving public streets and public spaces, including sidewalks, trails,
lighting, pedestrian and bike features, plantings, stormwater management, public and private
utility burial, public plazas, and public art;

(2) acquiring property, site preparation, and providing public financing for transit-oriented
development and antidisplacement programs, projects, or strategies;

(3) improving, creating, or supporting arts and cultural facilities;

(4) commercial and residential building rehabilitation and facade improvements;

(5) assistance in any form to support antidisplacement programs, projects, or strategies;
and

(6) planning, design, community engagement, maintenance, and professional service
costs related to the above.

(b) The city may issue general obligation or revenue bonds or other obligations under
Minnesota Statutes, chapter 475, without an election, to finance all or a portion of the costs
authorized by subdivision 4, paragraph (a), hereof, including any costs of issuance of said
bonds, to be paid from or secured by any funds available to the city, including without
limitation the tax revenues and the full faith and credit and taxing powers of the city. The
bonds are not included in computing any debt limitation applicable to the city and any levy
of taxes under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds
is not subject to any levy limitation. The city may also issue bonds or other obligations to
refund those bonds or obligations. Payment of principal and interest on the bonds or other
obligations issued under this paragraph is a permitted use of the tax revenues.

Subd. 5.

Duration of the district.

The duration of the district established under this
section is limited to the lesser of (1) 25 years of tax revenues, or (2) the time that the city
council determines is necessary to collect tax revenues sufficient to pay for the costs
authorized under subdivision 4, including without limitation an amount sufficient to pay or
defease any bonds or other obligations issued under subdivision 4, paragraph (b), including
interest thereon and the costs related to issuance thereof.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 7. CITY OF BROOKLYN PARK; SPECIAL PROPERTY TAX ABATEMENT
SPECIAL RULES.

(a) If the city elects to use property tax abatements under Minnesota Statutes, sections
469.1812 to 469.1815, to finance costs of public infrastructure projects, including all
financing costs, the special rules under this subdivision apply. Taxes abated for public
infrastructure projects must be used only for obligations or other infrastructure projects
approved by the authority.

(b) The limitations under Minnesota Statutes, section 469.1813, subdivision 6, do not
apply to the city.

(c) The limitations under Minnesota Statutes, section 469.1813, subdivision 8, do not
apply and property taxes abated by the city to finance costs of public infrastructure projects
are not included for purposes of applying Minnesota Statutes, section 469.1813, subdivision
8, to the use of tax abatement for other purposes of the city or the county.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021.

Sec. 8. CITY OF BROOKLYN PARK; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.

Subdivision 1.

Exemption; refund.

(a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in the city of Brooklyn Park are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after February 28, 2023, and before April 1, 2030:

(1) improvements to the Brooklyn Park Senior Center;

(2) renovation and expansion of the Zanewood Recreation Center;

(3) improvements to the community activity center;

(4) construction of a PFAS treatment facility;

(5) construction of a water softening facility;

(6) replacement of roofs and HVAC systems in city hall and public works buildings;

(7) construction and rehabilitation of trails, underpass projects, and wayfinding projects;

(8) projects within the BioTech Innovation District as identified in the city's development
plan;

(9) construction and rehabilitation of the Central Fire Station, including related facilities;

(10) construction and rehabilitation of the North Fire Station, including related facilities;

(11) construction and rehabilitation of the West Fire Station, including related facilities;
and

(12) construction and rehabilitation of the East Fire Station, including related facilities.

(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2024.

Subd. 2.

Appropriation.

The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.

EFFECTIVE DATE.

This section is effective retroactively for sales and purchases
made after February 28, 2023, and before April 1, 2030.