SF 1884

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/24/2017 09:40am

A bill for an act
relating to economic development; providing a sales tax exemption for the sales
tax paid during construction of an eligible wholesale electronic component
distribution center; providing a forgivable loan for constructing an eligible
wholesale electronic component distribution center; providing a grant from the
business development public infrastructure program for the city of Thief River
Falls; appropriating money.

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

Section 1. EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.

(a) Notwithstanding the seven-year certification period under Minnesota Statutes, section
116J.8738, subdivision 3, the certification period for an eligible wholesale electronic
component distribution center investing a minimum of $200,000,000 and constructing a
facility at least 700,000 square feet in size is effective for the ten-year period beginning on
the first day of the calendar month immediately following the date that the commissioner
informs the business of the award of the benefit.

(b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes, section
116J.8738, subdivision 4, the sales tax exemption for an eligible electronic component
distribution center investing a minimum of $200,000,000 and constructing a facility at least
700,000 square feet in size may be authorized up to $5,000,000 annually and up to
$30,000,000 during the total period of the agreement.

Sec. 2. BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE PROGRAM
GRANT.

$1,600,000 in fiscal year 2018 is appropriated from the general fund to the commissioner
of employment and economic development for the business development public infrastructure
program under Minnesota Statutes, section 116J.431, to provide a grant to the city of Thief
River Falls to support utility extensions, roads, and other public improvements related to
the construction of a wholesale electronic component distribution center at least 700,000
square feet in size and investing a minimum of $200,000,000. Notwithstanding Minnesota
Statutes, section 116J.431, a local match is not required. This is a onetime appropriation
and funds are available from July 1, 2017, to June 30, 2021.

Sec. 3. MINNESOTA INVESTMENT FUND FORGIVABLE LOAN.

$4,000,000 in fiscal year 2018 is appropriated from the general fund to the commissioner
of employment and economic development for the Minnesota investment fund under
Minnesota Statutes, section 116J.8731, for a loan to construct and equip a wholesale
electronic component distribution center investing a minimum of $200,000,000 and
constructing a facility at least 700,000 square feet in size. Loan funds may be used for
purchases of materials, supplies, and equipment for the construction of the facility and are
available from July 1, 2017, to June 30, 2021. The commissioner of employment and
economic development shall forgive the loan after verification that the project has satisfied
performance goals and contractual obligations as required under Minnesota Statutes, section
116J.8731.