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Minnesota Legislature

Office of the Revisor of Statutes

HF 682

as introduced - 89th Legislature (2015 - 2016) Posted on 03/25/2015 12:27pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to economic development; destination medical center; modifying the
definition of public infrastructure; clarifying the local matching contribution;
amending Minnesota Statutes 2014, sections 469.40, subdivision 11, as amended;
469.45, subdivisions 1, 2; 469.47, subdivision 4, as amended.

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

Section 1.

Minnesota Statutes 2014, section 469.40, subdivision 11, as amended by
Laws 2015, chapter 1, section 6, is amended to read:


Subd. 11.

Public infrastructure project.

(a) "Public infrastructure project" means
a project financed in part or in whole with public money in order to support the medical
business entity's development plans, as identified in the DMCC development plan. A
public infrastructure project may:

(1) acquire real property and other assets associated with the real property;

(2) demolish, repair, or rehabilitate buildings;

(3) remediate land and buildings as required to prepare the property for acquisition
or development;

(4) install, construct, or reconstruct elements of public infrastructure required to
support the overall development of the destination medical center development district
including, but not limited to, streets, roadways, utilities systems and related facilities,
utility relocations and replacements, network and communication systems, streetscape
improvements, drainage systems, sewer and water systems, subgrade structures and
associated improvements, landscaping, facade construction and restoration, wayfinding
and signage, and other components of community infrastructure;

(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
to encourage intermodal transportation and public transit;

(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
recreational facilities, facilities to promote tourism and hospitality, conferencing and
conventions, and broadcast and related multimedia infrastructure;

(7) make related site improvements including, without limitation, excavation,
earth retention, soil stabilization and correction, and site improvements to support the
destination medical center development district;

(8) prepare land for private development and to sell or lease land;

(9) provide costs of relocation benefits to occupants of acquired properties; and

(10) construct and equip all or a portion of one or more suitable structures on land
owned by the city for sale or lease to private development; provided, however, that the
portion of any structure directly financed by the city as a public infrastructure project must
not be sold or leased to a medical business entity.

(b) A public infrastructure project is not a business subsidy under section 116J.993.

(c) Public infrastructure project includes the new text beginplanning, new text endpreparationnew text begin,new text end and modification
of the development plan under section 469.43deleted text begin, anddeleted text endnew text begin. new text end The cost of that new text beginplanning, new text endpreparationnew text begin,new text end
and any modification is a capital cost of the public infrastructure project.

Sec. 2.

Minnesota Statutes 2014, section 469.45, subdivision 1, is amended to read:


Subdivision 1.

Rochester, other local taxes authorized.

(a) Notwithstanding
section 477A.016 or any other contrary provision of law, ordinance, or city charter, and in
addition to any taxes the city may impose on these transactions under another statute or
law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the
city, any of the following taxes:

(1) a tax on the gross receipts from the furnishing for consideration of lodging and
related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the
city may choose to impose a differential tax based on the number of rooms in the facility;

(2) a tax on the gross receipts of food and beverages sold primarily for consumption
on the premises by restaurants and places of refreshment that occur in the city of
Rochester; the city may elect to impose the tax in a defined district of the city; and

(3) a tax on the admission receipts to entertainment and recreational facilities, as
defined by ordinance, in the city of Rochester.

(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the
administration, collection, and enforcement of any tax imposed by the city under
paragraph (a).

(c) The proceeds of any taxes imposed under this subdivision, less refunds and
costs of collection, must be used by the city only to meet its share of obligations for
public infrastructure projects contained in the development plan and approved by the
corporation, including any associated financing costsnew text begin or to pay any other costs qualifying
as a local matching contribution under section 469.47, subdivision 4
new text end. Any tax imposed
under paragraph (a) expires at the earlier of December 31, 2049, or when the city council
determines that sufficient funds have been raised from the tax plus all other local funding
sources authorized in Laws 2013, chapter 143, article 10, to meet the city obligation for
financing public infrastructure projects contained in the development plan and approved
by the corporation, including any associated financing costs.

Sec. 3.

Minnesota Statutes 2014, section 469.45, subdivision 2, is amended to read:


Subd. 2.

General sales tax authority.

The city may elect to extend the existing
local sales and use tax under Laws 2013, chapter 143, article 10, section 13, or to impose
an additional rate of up to one quarter of one percent tax on sales and use under Laws
2013, chapter 143, article 10, section 11. The proceeds of any extended or additional taxes
imposed under this subdivision, less refunds and costs of collection, must be used by the
city only to meet its share of obligations for public infrastructure projects contained in the
development plan and approved by the corporation, including all financing costs. Revenues
collected in any year to meet the obligations must be used for payment of obligations or
expenses for public infrastructure projects approved by the corporationnew text begin or of any other
costs qualifying as a local matching contribution under section 469.47, subdivision 4
new text end.

Sec. 4.

Minnesota Statutes 2014, section 469.47, subdivision 4, as amended by Laws
2015, chapter 1, section 10, is amended to read:


Subd. 4.

General aid; local matching contribution.

In order to qualify for general
state infrastructure aid, the city must enter a written agreement with the commissioner
that requires the city to make a qualifying local matching contribution to pay for
$128,000,000 of the cost of public infrastructure projects approved by the corporation,
including financing costs, using funds other than state aid received under this section. The
deleted text begin$128,000,000deleted text end required local matching contribution is reduced by deleted text beginone-half of thedeleted text endnew text begin anynew text end
amounts the city pays deleted text beginfor operating and administrative costsdeleted text endnew text begin out of funds other than state aid
received under this section for the support, administration, or operations
new text end of the corporationnew text begin
and the economic development agency
new text end up to a maximum amount agreed to by the board
and the city. new text beginThese amounts include any costs the city incurs in providing services,
goods, or other support to the corporation or agency.
new text endThe agreement must provide for the
manner, timing, and amounts of the city contributions, including the city's commitment
for each year. Notwithstanding any law to the contrary, the agreement may provide that
the city contributions for public infrastructure project principal costs may be made over a
20-year period at a rate not greater than $1 from the city for each $2.55 from the state.
The local match contribution may be provided by the city from any source identified in
section 469.45 and any other local tax proceeds or other funds from the city and may
include providing funds to prepare the development plan, to assist developers undertaking
projects in accordance with the development plan, or by the city directly undertaking
public infrastructure projects in accordance with the development plan, provided the
projects have been approved by the corporation. City contributions that are in excess of
this ratio carry forward and are credited toward subsequent years. The commissioner and
city may agree to amend the agreement at any time in light of new information or other
appropriate factors. The city may enter into arrangements with the county to pay for or
otherwise meet the local matching contribution requirement. Any public infrastructure
project within the area that will be in the destination medical center development district
whose implementation is started or funded by the city after June 22, 2013, but before the
development plan is adopted, as provided by section 469.43, subdivision 1, will be included
for the purposes of determining the amount the city has contributed as required by this
section and the agreement with the commissioner, subject to approval by the corporation.

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following compliance by the governing body
of the city of Rochester and its chief clerical officer with Minnesota Statutes, section
645.021, subdivisions 2 and 3, and apply retroactively to the original effective dates of
the laws that are amended.
new text end