SF 3628

as introduced - 89th Legislature (2015 - 2016) Posted on 05/20/2016 08:36am

A bill for an act
relating to economic development; local government; creating an account in the
special revenue fund; authorizing commissioner of employment and economic
development to award grants to local governments to assemble land for economic
development; transferring money; appropriating money; 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 [116J.544] CREATION OF ACCOUNT.
new text end

new text begin A land assembly for job creation grant account is created in the special revenue
fund in the state treasury. Money in the account is appropriated to the commissioner
of employment and economic development for grants as provided in section 116J.545.
Notwithstanding section 16A.28, money deposited in the account from any source is
available until expended.
new text end

Sec. 2.

new text begin [116J.545] GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Land assembly for job creation grants. new text end

new text begin The commissioner may
make grants from the land assembly for job creation grant account to applicants for projects
to assemble qualifying sites within the applicant's jurisdiction to create contiguous parcels
for commercial and industrial economic development. A grant may not be awarded under
this section until the commissioner determines that an amount equal to at least 20 percent of
the acquisition cost of a qualifying site is committed to the project from nonstate sources.
new text end

new text begin Subd. 2. new text end

new text begin Applicant. new text end

new text begin For the purposes of sections 116J.544 to 116J.547, "applicant"
means a statutory or home rule charter city, county, housing and redevelopment authority,
economic development authority, or port authority.
new text end

new text begin Subd. 3. new text end

new text begin Grants limits. new text end

new text begin (a) The commissioner may make grants for up to 80 percent
of the cost of acquiring a qualifying site.
new text end

new text begin (b) The commissioner has sole discretion in awarding grants subject to the
requirements of sections 116J.544 to 116J.547 and the availability of funds. The
commissioner's decisions and application of the priorities under section 116J.547 are not
subject to judicial review, except for abuse of discretion.
new text end

new text begin Subd. 4. new text end

new text begin Qualifying sites. new text end

new text begin For the purposes of sections 116J.544 to 116J.547,
"qualifying site" or "site" means a parcel of real property that:
new text end

new text begin (1) is vacant or occupied by structures that are blighted, dilapidated, or functionally
obsolete;
new text end

new text begin (2) contains known or suspected contaminants in structures, soil, groundwater, or
infrastructure;
new text end

new text begin (3) is served by infrastructure that is outdated; and
new text end

new text begin (4) once improvements have been made, must:
new text end

new text begin (i) include structures or other improvements;
new text end

new text begin (ii) result in the creation of full-time, living wage jobs; and
new text end

new text begin (iii) increase the applicant's property tax base within a reasonable period of time.
new text end

new text begin Subd. 5. new text end

new text begin No eminent domain. new text end

new text begin Qualifying sites acquired in whole or in part with
grant funds provided under this section shall not be acquired through the use of eminent
domain.
new text end

new text begin Subd. 6. new text end

new text begin Grant limits. new text end

new text begin A single grant award under this section may not exceed
$500,000. An applicant may not receive more than $1,000,000 in total grants under this
section in any fiscal year.
new text end

Sec. 3.

new text begin [116J.546] GRANT APPLICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applications required. new text end

new text begin Applications for grants under section
116J.545 must be made to the commissioner on a form and in a manner prescribed by
the commissioner. The governing body of the applicant must approve the application
by resolution.
new text end

new text begin Subd. 2. new text end

new text begin Requirements. new text end

new text begin An applicant must certify in its application that it has the
required matching funds available. The application must include, but is not limited to,
the following information:
new text end

new text begin (1) identification of the qualifying site to be acquired including documentation of
how the site meets the requirements in section 116J.545, subdivision 4;
new text end

new text begin (2) appraisal of the current market value of the qualifying site, prepared by a
qualified independent appraiser licensed under chapter 82B, using accepted appraisal
methodology, or the estimated market value of the site for the latest year shown on the
most current valuation notice used under section 273.121;
new text end

new text begin (3) assessment of the development potential or likely use of the qualifying site after
acquisition and assembly of the site with other like properties for commercial or industrial
development. The assessment must include an analysis based on the applicant's knowledge,
capacity, and demonstrated experience in redevelopment of blighted and contaminated
properties. The information in the analysis must include a comparison of the site's current
value and contribution to the applicant's tax base as well as information on the number of
full-time jobs and wages associated with the site, to the site's projected postimprovement
value and contribution to the applicant's tax base, and information on the projected number
of full-time jobs and wage levels associated with the site after improvements have been
completed. The analysis of the potential for creation of full-time jobs with living wages
must also examine accessibility of the jobs by residents of the surrounding community; and
new text end

new text begin (4) any additional information or materials determined by the commissioner.
new text end

Sec. 4.

new text begin [116J.547] PRIORITIES.
new text end

new text begin If applications for grants for qualified sites exceed the available funds, the
commissioner shall make grants for sites that, in the commissioner's judgment, provide
the highest return in public benefits for the public costs incurred and that meet all the
requirements provided by law. In making this judgment, the commissioner shall consider
the following factors:
new text end

new text begin (1) the potential increase in the property tax base of the local taxing jurisdictions
within which the qualifying site is located, considered relative to the fiscal needs of the
jurisdictions;
new text end

new text begin (2) the projected number of full-time jobs with living wages and benefits, and local
hiring goals related to the qualifying site;
new text end

new text begin (3) the amount of the commitment of municipal or other local resources to acquire
the qualifying site;
new text end

new text begin (4) the extent to which the applicant demonstrates that the qualifying site will be
improved and the improvements will result in economic development benefits, including,
but not limited to, job creation and tax base expansion for the community; and
new text end

new text begin (5) the extent to which the applicant demonstrates that redevelopment of the
qualifying site will result in crime reduction or blight reduction, or make efficient use of
existing public infrastructure for commercial or industrial development.
new text end

Sec. 5. new text begin TRANSFER.
new text end

new text begin The commissioner of management and budget shall transfer $15,000,000 in fiscal
year 2018 from the general fund to the land assembly for job creation grant account under
Minnesota Statutes, section 116J.544.
new text end