SF 2679

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to capital improvements; directing the 
  1.3             commissioner of trade and economic development to 
  1.4             administer a grant program for greater Minnesota 
  1.5             cities that will pay up to one-half the costs of 
  1.6             necessary public infrastructure for eligible economic 
  1.7             development projects; providing for grants from the 
  1.8             redevelopment account and the wastewater 
  1.9             infrastructure program; authorizing issuance of bonds; 
  1.10            appropriating money; proposing coding for new law in 
  1.11            Minnesota Statutes, chapter 116J.  
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [116J.431] [GREATER MINNESOTA BUSINESS 
  1.14  DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.] 
  1.15     Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
  1.16  commissioner shall make grants to cities to provide up to 50 
  1.17  percent of the capital costs of public infrastructure necessary 
  1.18  for an eligible economic development project.  The city 
  1.19  receiving a grant must provide for the remainder of the costs of 
  1.20  the project, either in cash or in-kind.  In-kind contributions 
  1.21  may include the value of site preparation other than the public 
  1.22  infrastructure needed for the project. 
  1.23     For purposes of this section, "city" means a statutory or 
  1.24  home rule charter city located outside the metropolitan area, as 
  1.25  defined in section 473.121, subdivision 2.  
  1.26     "Public infrastructure" means publicly owned physical 
  1.27  infrastructure necessary to support economic development 
  1.28  projects, including, but not limited to, sewers, water supply 
  2.1   systems, utility extensions, streets, wastewater treatment 
  2.2   systems, stormwater management systems, and facilities for 
  2.3   pretreatment of wastewater to remove phosphorus. 
  2.4      The purpose of the grants is to keep or enhance jobs in the 
  2.5   area, increase the tax base, or to expand or create new economic 
  2.6   development. 
  2.7      Subd. 2.  [ELIGIBLE PROJECTS.] An economic development 
  2.8   project for which a city may be eligible to receive a grant 
  2.9   under this section includes: 
  2.10     (1) manufacturing; 
  2.11     (2) technology; 
  2.12     (3) warehousing and distribution; 
  2.13     (4) research and development; 
  2.14     (5) agricultural operations; or 
  2.15     (6) industrial park development that would be used by any 
  2.16  other business listed in this subdivision. 
  2.17     Subd. 3.  [INELIGIBLE PROJECTS.] The following projects are 
  2.18  not eligible for a grant under this section: 
  2.19     (1) retail development; or 
  2.20     (2) office space development, except as incidental to an 
  2.21  eligible purpose. 
  2.22     Subd. 4.  [APPLICATION.] The commissioner must develop 
  2.23  forms and procedures for soliciting and reviewing applications 
  2.24  for grants under this section.  At a minimum, a city must 
  2.25  include in its application a resolution of the city council 
  2.26  certifying that the required local match is available.  The 
  2.27  commissioner must award grants for complete applications for 
  2.28  eligible projects on a first-come, first-served basis. 
  2.29     Subd. 5.  [SET ASIDES.] (a) During the first two years of 
  2.30  the program, 20 percent of the amount available, up to 
  2.31  $10,000,000, must be used only for grants to cities of the 
  2.32  fourth class. 
  2.33     (b) Ten percent of the amount available, up to $5,000,000, 
  2.34  must be used only for grants for industrial park developments. 
  2.35     Subd. 6.  [MAXIMUM GRANT AMOUNT; MATCH.] A city may receive 
  2.36  no more than $2,500,000 in two years for one or more projects.  
  3.1      Subd. 7.  [CANCELLATION OF GRANT; RETURN OF GRANT 
  3.2   MONEY.] If after five years, the commissioner determines that a 
  3.3   project has not proceeded in a timely manner and is unlikely to 
  3.4   be completed, the commissioner must cancel the grant and require 
  3.5   the grantee to return all grant money awarded for that project.  
  3.6   For industrial park development projects, if after five years 
  3.7   the industrial park is not developed and available for business 
  3.8   use, the commissioner must cancel the grant and require the 
  3.9   grantee to return all grant money for that project.  If the 
  3.10  industrial park is developed and available for use within five 
  3.11  years, but no businesses have located in the park, the grantee 
  3.12  is not required to return any grant money.  
  3.13     Subd. 8.  [APPROPRIATION.] Grant money returned to the 
  3.14  commissioner is appropriated to the commissioner to make 
  3.15  additional grants under this section. 
  3.16     Sec. 2.  [APPROPRIATIONS.] 
  3.17     Subdivision 1.  The sums set forth in this section are 
  3.18  appropriated from the bond proceeds fund to the commissioner of 
  3.19  trade and economic development for the purposes indicated.  The 
  3.20  appropriations are available until the projects are completed or 
  3.21  abandoned. 
  3.22  Subd. 2.  Greater Minnesota
  3.23  Business Development Infrastructure
  3.24  Grant Program                                        50,000,000
  3.25  For grants under new Minnesota 
  3.26  Statutes, section 116J.431. 
  3.27  Subd. 3.  Redevelopment Account                      50,000,000
  3.28  For transfer to the redevelopment 
  3.29  account created in Minnesota Statutes, 
  3.30  section 116J.561.  At least 25 percent 
  3.31  of this amount must be used for grants 
  3.32  for projects outside the metropolitan 
  3.33  area, as defined in Minnesota Statutes, 
  3.34  section 473.121, subdivision 2. 
  3.35  Subd. 4.  Wastewater Infrastructure 
  3.36  Funding Program                                      50,000,000
  3.37  To the public facilities authority for 
  3.38  grants to eligible municipalities under 
  3.39  the wastewater infrastructure program 
  3.40  established in Minnesota Statutes, 
  3.41  section 446A.072. 
  3.42     Sec. 3.  [BOND SALE.] 
  3.43     To provide the money appropriated in section 2 from the 
  4.1   bond proceeds fund, the commissioner of finance shall sell and 
  4.2   issue bonds of the state in an amount up to $150,000,000 in the 
  4.3   manner, on the terms, and with the effect prescribed by 
  4.4   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  4.5   Minnesota Constitution, article XI, sections 4 to 7. 
  4.6      Sec. 4.  [EFFECTIVE DATE.] 
  4.7      This act is effective the day following final enactment.