HF 5464

as introduced - 93rd Legislature (2023 - 2024) Posted on 05/09/2024 10:50am

A bill for an act
relating to economic development; establishing the Rondo Restorative Development
Authority for the operations of a land bridge in the Rondo neighborhood of St.
Paul; proposing coding for new law in Minnesota Statutes, chapter 116J.

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

Section 1. new text begin PURPOSE.
new text end

new text begin (a) The purpose of this act is to provide for the transfer of state real estate interests,
including right-of-way air rights, construction, development, financing, community
ownership, formation of and ownership of private development entities, transfer of
developments, and long-term operations of the land bridge in the Rondo neighborhood of
the city.
new text end

new text begin (b) The legislature finds and declares that the establishment of the authority and the
expenditure of public money for this purpose are necessary and serve a public purpose and
that property acquired by the authority for the construction and development of the land
bridge is acquired for a public use or public purpose under chapter 117.
new text end

new text begin (c) The legislature further finds and declares that government assistance to facilitate the
land bridge provides to the state, its citizens, and the citizens of the Rondo community
highly valued intangible benefits that help address historic racial inequities that led to the
destruction of the Rondo neighborhood by the routing of an interstate highway through the
neighborhood in 1950s, causing the loss of approximately 700 homes and 300 businesses
with inadequate compensation and leading to significant loss of generational wealth.
new text end

Sec. 2.

new text begin [116J.382] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in sections 116J.382 to 116J.384, the terms in this
section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin "Authority" means the Rondo Restorative Development Authority.
new text end

new text begin Subd. 3. new text end

new text begin City. new text end

new text begin "City" means the city of St. Paul.
new text end

new text begin Subd. 4. new text end

new text begin Land bridge. new text end

new text begin "Land bridge" means one or more projects of the authority
undertaken in accordance with this chapter within the Rondo community land bridge area.
new text end

new text begin Subd. 5. new text end

new text begin Rondo community land bridge area. new text end

new text begin "Rondo community land bridge area"
means the freeway right-of-way over marked Interstate Highway 94 in a portion of the
segment from Lexington Avenue to Rice Street in the city.
new text end

Sec. 3.

new text begin [116J.383] RONDO RESTORATIVE DEVELOPMENT AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The Rondo Restorative Development Authority is
established as a public body, corporate and politic, and political subdivision of the state.
The authority is not a joint powers entity or an agency or instrumentality of the city. The
powers conveyed to the authority apply within the Rondo community land bridge area.
new text end

new text begin (b) The authority is authorized to fund infrastructure improvements and acquire real
property outside of the Rondo community land bridge area that serve the purposes of sections
116J.382 to 116J.384.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The authority shall be managed by a 17-member board of
commissioners who may name a chair or co-chairs from among the commissioners.
new text end

new text begin (b) The commissioners shall be appointed to four-year terms, beginning January 1, 2025,
as follows:
new text end

new text begin (1) five representatives appointed by ReConnect Rondo;
new text end

new text begin (2) four representatives appointed by Rondo Roundtable;
new text end

new text begin (3) two representatives appointed by the mayor of the city of St. Paul;
new text end

new text begin (4) one representative appointed by Saint Paul Public Schools;
new text end

new text begin (5) one representative appointed by the governor;
new text end

new text begin (6) one representative appointed by the Metropolitan Council;
new text end

new text begin (7) one representative appointed by Ramsey County;
new text end

new text begin (8) one representative appointed by the senate; and
new text end

new text begin (9) one representative appointed by the house of representatives.
new text end

new text begin Each commissioner serves until a successor is appointed and takes office. Commissioners
of the authority are public officials under chapter 10A and subject to all applicable
requirements therein.
new text end

new text begin Subd. 3. new text end

new text begin Compensation. new text end

new text begin The authority may compensate its members, other than the
chair, as provided in section 15.0575, subdivision 3. The chair shall receive, unless otherwise
provided by other law, a salary in an amount fixed by the authority and shall be reimbursed
for reasonable expenses to the same extent as a member.
new text end

new text begin Subd. 4. new text end

new text begin Chair. new text end

new text begin The chair presides at all meetings of the authority, if present, and
performs all other assigned duties and functions. The authority may appoint from among
its members a vice-chair to act for the chair during the temporary absence or disability of
the chair and any other officers the authority determines are necessary or convenient.
new text end

new text begin Subd. 5. new text end

new text begin Removal. new text end

new text begin A commissioner may be removed by the respective appointing
authority only for misfeasance, malfeasance, or nonfeasance in office upon written charges
and after an opportunity to be heard in defense of the charges.
new text end

new text begin Subd. 6. new text end

new text begin Bylaws. new text end

new text begin The authority shall adopt bylaws to establish rules of procedure, the
powers and duties of its officers, and other matters relating to the governance of the authority
and the exercise of its powers.
new text end

new text begin Subd. 7. new text end

new text begin Audit. new text end

new text begin The legislative auditor shall audit the books and accounts of the authority
once each year or as often as the legislative auditor's funds and personnel permit. The
authority shall pay the total cost of the audit pursuant to section 3.9741.
new text end

new text begin Subd. 8. new text end

new text begin Executive director; employees. new text end

new text begin The authority may appoint an executive director
to serve as the chief executive officer of the authority. The executive director serves at the
pleasure of the authority and receives compensation as determined by the authority. The
executive director is responsible for the operation, management, and promotion of activities
of the authority, as prescribed by the authority. The executive director has the powers
necessary to the performance of duties required and powers granted by the authority, but
does not have authority to incur liability or make expenditures on behalf of the authority
without general or specific directions by the authority, as shown by the bylaws or minutes
of a meeting of the authority. The executive director is responsible for the hiring, supervision
of, and dismissal of all other employees of the authority. The executive director is a public
official under chapter 10A.
new text end

new text begin Subd. 9. new text end

new text begin Quorum; approvals. new text end

new text begin Any nine members shall constitute a quorum for the
conduct of business and action may be taken upon the vote of a majority of members present
at a meeting duly called and held.
new text end

Sec. 4.

new text begin [116J.384] POWERS; DUTIES OF THE AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Actions. new text end

new text begin The authority may sue and be sued. The authority is a public
body, and the Rondo community land bridge and related improvements outside the Rondo
community land bridge area are public improvements under chapter 562. The authority is
a municipality under chapter 466.
new text end

new text begin Subd. 2. new text end

new text begin Acquisition of property. new text end

new text begin The authority may acquire from any public or private
entity by lease, purchase, gift, or devise all necessary right, title, and interest in and to real
property, air rights, and personal property deemed necessary to the purposes contemplated
by this chapter. The authority may acquire, by the exercise of condemnation powers under
chapter 117, land, other real property, air rights, personal property, and other right, title,
and interest in property, except property of the state. Any lease of air space rights for the
Rondo community land bridge from the state or a political subdivision shall be for a minimum
of 99 years, with renewal options, unless a shorter period is agreed to by the authority.
new text end

new text begin Subd. 3. new text end

new text begin Disposition of property. new text end

new text begin The authority may sell, lease, or otherwise dispose
of any real or personal property acquired by the authority that is no longer required for
accomplishment of the authority's purposes. The property may be sold in accordance with
the procedures provided by section 469.065, subdivisions 1 to 5, to the extent the authority
deems it to be practical and consistent with this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Data practices; open meetings. new text end

new text begin The authority is subject to chapters 13 and
13D.
new text end

new text begin Subd. 5. new text end

new text begin Land bridge operation. new text end

new text begin The authority may develop, construct, equip, improve,
own, operate, manage, maintain, finance, and control the land bridge or may delegate such
duties through one or more agreements, including a statutory trust under subdivision 6,
paragraph (b), subject to the rights and obligations transferred to and assumed by the
authority, other user, third-party manager, or program manager, under the terms of a lease,
use agreement, or development agreement. The authority may enter into agreements with
the state or other governmental units regarding respective ownership and operation of any
portion of the land bridge.
new text end

new text begin Subd. 6. new text end

new text begin Land bridge development authority. new text end

new text begin (a) In addition to the other powers
granted in this section and other law, the authority, for purposes of fostering community
development, may spend any money made available to the agency by direct appropriation
to acquire real or personal property or interests therein by gift, purchase, or lease and may
convey by lease, sale, sublease, assignment, or other means of conveyance or commitment
any or all property interests owned or administered by the authority.
new text end

new text begin (b) In furtherance of development of the land bridge, the authority may establish and
participate in charitable foundations, nonprofit limited liability companies, statutory trusts,
and nonprofit corporations, including a corporation under section 317A.011, subdivision
6.
new text end

new text begin Subd. 7. new text end

new text begin Design, construction, and maintenance. new text end

new text begin The authority may contract for
materials, supplies, and equipment in accordance with section 471.345, except that the
authority may employ or contract with persons, firms, or corporations to perform one or
more or all of the functions of architect, engineer, construction manager, or program manager
or other government entity with respect to all or any part of the design, construction,
financing, operation, maintenance, and use of the land bridge under the traditional separate
design and build, integrated design-build, construction manager at risk, structures, or a
combination thereof. The construction of a land bridge is a "project" as that term is defined
in section 177.42, subdivision 2, and is subject to the prevailing wage law under section
177.41 to 177.43.
new text end

new text begin Subd. 8. new text end

new text begin Employees; contracts for services. new text end

new text begin The authority may employ persons and
contract for services necessary to carry out its functions, including the utilization of
employees and consultants retained by other governmental entities.
new text end

new text begin Subd. 9. new text end

new text begin Gifts, grants, and loans. new text end

new text begin The authority may accept monetary contributions,
property, services, and grants or loans of money or other property from the United States,
the state, any subdivision of the State, any agency of those entities, or any person for any
of its purposes and may enter into any agreement required in connection with the gifts,
grants, or loans. The authority shall hold, use, and dispose of the money, property, or services
according to the terms of the monetary contributions, grant, loan, or agreement.
new text end

new text begin Subd. 10. new text end

new text begin Exemption from Metropolitan Council review; Business Subsidy Act. new text end

new text begin The
acquisition and betterment of a land bridge by the authority must be conducted pursuant to
this chapter and are not subject to sections 473.165 and 473.173. Section 116J.994 does not
apply to any transactions of the authority or other governmental entity related to the land
bridge or to any tenant or other users of the land bridge.
new text end

new text begin Subd. 11. new text end

new text begin Incidental powers. new text end

new text begin In addition to the powers expressly granted in sections
116J.382 to 116J.384, the authority has all powers necessary or incidental thereto.
new text end