SF 844

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to capital improvements; authorizing spending to acquire and better
public land and buildings and other improvements of a capital nature with certain
conditions; authorizing the sale of state bonds; appropriating money; amending
Laws 2006, chapter 258, sections 4, subdivision 4; 7, subdivision 11.

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

Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

The sums shown in the column marked "appropriations" are appropriated to the
agencies and for the purposes specified in this act. The appropriations are from the
bond proceeds fund to the state agencies or officials indicated, to be spent for public
purposes. Appropriations of bond proceeds must be spent as authorized by the Minnesota
Constitution, article XI, section 5, paragraph (a), to acquire and better public land and
buildings and other public improvements of the capital nature, or as authorized by the
Minnesota Constitution, article XI, section 5, paragraphs (b) to (j). Unless otherwise
specified, the appropriations in this act are available until the project is completed or
abandoned subject to Minnesota Statutes, section 16A.642.

SUMMARY
Agriculture	$	10,000,000
Zoological Garden		1,526,000
Administration		14,052,000
Corrections		6,117,000
Grants to Political Subdivisions		38,132,000
Bond Sale Expenses		68,000
TOTAL	$	69,895,000
Bond Proceeds Fund (General Fund Debt Service)		59,895,000
Bond Proceeds Fund (User Financed Debt Service)		10,000,000

					APPROPRIATIONS

Sec. 2. AGRICULTURE

$

10,000,000

Rural Finance Authority Loan Participation

For purposes as set forth in the Minnesota
Constitution, article XI, section 5, clause (h).
To the rural finance authority to purchase
participation interests in or to make direct
agricultural loans to farmers under Minnesota
Statutes, chapter 41B. This appropriation
is for the beginning farmer program under
Minnesota Statutes, section 41B.039, the
loan restructuring program under Minnesota
Statutes, section 41B.04, the seller-sponsored
program under Minnesota Statutes, section
41B.042, the agricultural improvement loan
program under Minnesota Statutes, section
41B.043, and the livestock expansion loan
program under Minnesota Statutes, section
41B.045. All debt service on bond proceeds
used to finance this appropriation must be
repaid by the Rural Finance Authority under
Minnesota Statutes, section 16A.643. Loan
participations must be priced to provide full
interest and principal coverage and a reserve
for potential losses. Priority for loans must
be given first, to basic beginning farmer
loans; second, to seller-sponsored loans; and
third, to agricultural improvement loans.

Sec. 3. MINNESOTA ZOOLOGICAL GARDEN

$

1,526,000

Inflow and Infiltration Emergency Abatement

To the Minnesota Zoological Garden for
design and construction of improvements to
its water management system. The project
must be designed to address inflow and
infiltration problems associated with the
Minnesota Zoo's water discharge flow to the
city of Eagan.

Sec. 4. ADMINISTRATION

Subdivision 1. Total Appropriation

$

14,052,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2. Exterior Repair of Transportation Building

11,852,000

To repair and renovate the exterior of the
Department of Transportation Building at
395 John Ireland Boulevard in St. Paul.

Subd. 3. Property Acquisition

2,200,000

To acquire property at 639 Jackson Street in
St. Paul adjacent to the Harold E. Stassen
Building, to demolish existing structures
on the property, and to develop temporary
parking on the site and adjacent areas.

Sec. 5. CORRECTIONS

Subdivision 1. Total Appropriation

$

6,117,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2. Minnesota Correctional Facility - Oak Park Heights

(a) Perimeter System Renovation

3,875,000

To renovate the perimeter system at the
Oak Park Heights Correctional Facility
by replacing the security fence system for
the inside wall of the main prison yard
and exterior fence, replacing the perimeter
lighting system and the security razor
ribbon, and installing cameras and lighting to
correspond to the perimeter system's added
security zones.

(b) Ventilation System Renovation

2,242,000

To renovate the ventilation system at the
Oak Park Heights Correctional Facility by
demolishing sections of existing ductwork,
installing new ductwork, installing an
ultraviolet lighting system, installing system
air controls and electronics, and cleaning
or otherwise renovating sections of existing
ductwork.

Sec. 6. GRANTS TO POLITICAL SUBDIVISIONS

Subdivision 1. Total Appropriation

$

38,132,000

To the commissioner of the named agency for
the purposes specified in each subdivision.

Subd. 2. DECC Arena

37,932,000

(a) To the commissioner of employment and
economic development for a grant to the
Duluth Entertainment and Convention Center
Authority to design, construct, furnish, and
equip an approximately 215,000 square
foot arena at the Duluth Entertainment and
Convention Center at 350 Harbor Drive
in the city of Duluth. The arena must
include an ice rink; trade show and concert
space; seating with suites, club seats, and
concessions; locker and training facilities;
and accessible media space.

(b) This appropriation is not available until
the commissioner of finance determines:
(1) that at least an equal amount has been
committed from nonstate sources, including
an annual payment of at least $455,000 from
the University of Minnesota Duluth for the
term of the bonds issued by the city of Duluth
for the project and an annual payment from
the Duluth Entertainment and Convention
Center Authority of at least $461,000 for
the term of the bonds issued by the city of
Duluth for the project; and (2) the University
of Minnesota Duluth, and the city of Duluth
have entered into a lease agreement for the
university's use of the arena while the bonds
issued by the city are outstanding.

Subd. 3. Stillwater Flood Control Phase III

200,000

To the commissioner of natural resources
for a grant to the city of Stillwater to
predesign, design, and begin construction
of Phase III of the Stillwater flood control
project, including flood control structures
and pumping stations. This appropriation
is not available until the commissioner has
determined that at least $2,000,000 has been
committed from nonstate sources.

Sec. 7. BOND SALE EXPENSES

$

68,000

To the commissioner of finance for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.

Sec. 8. BOND SALE AUTHORIZATION.

To provide the money appropriated in this act from the bond proceeds fund, the
commissioner of finance shall sell and issue bonds of the state in an amount up to
$69,895,000 in the manner, upon the terms, and with the effect prescribed by Minnesota
Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI,
sections 4 to 7.

Sec. 9.

Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:

Subd. 4. MacPhail Music Center

5,000,000

(a) For a grant to the city of Minneapolis to
predesign, design, construct, furnish, and
equip a new facility for the MacPhail Center
for Music. The city of Minneapolis may
enter into a lease or management agreement
to operate the center, subject to Minnesota
Statutes, section 16A.695. This appropriation
is not available until the commissioner has
determined that not less than $15,000,000
has been committed to the MacPhail Center
for Music from nonstate sources, and that
the available money is sufficient to complete
a functional facility. Money secured before
the effective date of this section may count
toward the required commitment of nonstate
sources, provided it is used for qualified
capital expenditures. Any land acquisition
costs paid by MacPhail Center for Music
qualify as capital expenditures.

(b) The city of Minneapolis may provide
money to predesign, design, construct,
furnish, and equip a center for music
education, including classrooms and a
recital hall in the city of Minneapolis,
to provide a facility for education of
students, music therapy programs for
persons with disabilities, music teacher
training opportunities, curriculum and
program development, and to provide the
programming in public and private schools
and in partnership with other organizations
throughout the state.

(c) The required demonstration of a
commitment of funds from nonstate sources
has been met by cash, prepaid qualified
expenses, and private multiyear pledges that
have been converted into cash through bond
financing and a letter of credit secured by
a mortgage lien on the state bond financed
property. The $5,000,000 construction grant
shall be disbursed without requirement that
the mortgage lien be released.

(d) The commissioners of education and
finance shall agree to a provision in the
ground lease that permits the city of
Minneapolis to purchase for fair market
value, as that term is defined in Minnesota
Statutes, section 16A.695, subdivision 1,
paragraph (d), the interest of the operating
lease lessee in the state bond financed
property (based on investment in land
and capital improvements) in the event of
nonrenewal of the operating lease at the time
of nonrenewal without requirement of a prior
escrow for funds by the city of Minneapolis.

EFFECTIVE DATE.

This section is effective retroactively from June 2, 2006.

Sec. 10.

Laws 2006, chapter 258, section 7, subdivision 11, is amended to read:

Subd. 11. Water control structures

1,000,000

To rehabilitate or replace water control
structures used to manage shallow lakes and
wetlands for waterfowl habitat on wildlife
management areas under Minnesota Statutes,
section 86A.05, subdivision 8 or for the
purposes of public water reserves under
Minnesota Statutes, section 97A.101.

Sec. 11. EFFECTIVE DATE.

Except as otherwise provided, this act is effective the day following final enactment.