SF 758

as introduced - 91st Legislature (2019 - 2020) Posted on 01/31/2019 04:21pm

A bill for an act
relating to economic development; establishing a grant program for school property
rehabilitation; appropriating money for a grant program; authorizing the sale and
issuance of state bonds; 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.439] REHABILITATION OF OBSOLETE SCHOOL PROPERTY
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established; purpose. new text end

new text begin (a) The commissioner shall make
grants to counties, cities, or school districts to provide up to 75 percent of the capital costs
of demolishing or rehabilitating public school buildings that are no longer needed as schools.
The county, city, or school district receiving a grant must provide for the remainder of the
costs of the project, either in cash or in kind. In-kind contributions may include the value
of site preparation other than the public infrastructure needed for the project.
new text end

new text begin (b) The purpose of the grants made under this section is to keep or enhance jobs in the
area, increase the tax base, or to expand or create new economic development.
new text end

new text begin (c) In awarding grants under this section, the commissioner must adhere to the criteria
under subdivision 5.
new text end

new text begin (d) If the commissioner awards a grant for less than 50 percent of the project, the
commissioner shall provide the applicant and the chairs and ranking minority members of
the committees in the senate and house of representatives with jurisdiction over economic
development finance a written explanation of the reason less than 50 percent of the capital
costs were awarded in the grant.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "City" means a statutory or home rule charter city located outside the metropolitan
area, as defined in section 473.121, subdivision 2.
new text end

new text begin (c) "County" means a county located outside the metropolitan area, as defined in section
473.121, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Eligible projects. new text end

new text begin An economic development project for which a county, city,
or school district may be eligible to receive a grant under this section includes:
new text end

new text begin (1) manufacturing;
new text end

new text begin (2) technology;
new text end

new text begin (3) warehousing and distribution;
new text end

new text begin (4) research and development;
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new text begin (5) agricultural processing, defined as transforming, packaging, sorting, or grading
livestock or livestock products into goods that are used for intermediate or final consumption,
including goods for nonfood use; or
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new text begin (6) industrial park development that would be used by any other business listed in this
subdivision even if no business has committed to locate in the industrial park at the time
the grant application is made.
new text end

new text begin Subd. 4. new text end

new text begin Ineligible projects. new text end

new text begin The following projects are not eligible for a grant under
this section:
new text end

new text begin (1) retail development; or
new text end

new text begin (2) office space development, except as incidental to an eligible purpose.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin (a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a county,
city, or school district must include in its application a resolution of the governing body of
the county, city, or school district certifying that half of the cost of the project is committed
from nonstate sources. The commissioner must evaluate complete applications for eligible
projects using the following criteria:
new text end

new text begin (1) the project is an eligible project as defined under subdivision 3;
new text end

new text begin (2) the project is expected to result in or will attract substantial public and private capital
investment and provide substantial economic benefit to the county or city in which the
project would be located;
new text end

new text begin (3) the project is not relocating substantially the same operation from another location
in the state, unless the commissioner determines the project cannot be reasonably
accommodated within the county or city in which the business is currently located, or the
business would otherwise relocate to another state; and
new text end

new text begin (4) the project is expected to or will create or retain full-time jobs.
new text end

new text begin (b) The determination of whether to make a grant for a site is within the discretion of
the commissioner, subject to this section. The commissioner's decisions and application of
the criteria are not subject to judicial review except for abuse of discretion.
new text end

new text begin Subd. 6. new text end

new text begin Maximum grant amount. new text end

new text begin A county, city, or school district may receive no
more than $2,000,000 in two years for one or more projects.
new text end

new text begin Subd. 7. new text end

new text begin Cancellation of grant; return of grant money. new text end

new text begin If, after five years, the
commissioner determines that a project has not proceeded in a timely manner and is unlikely
to be completed, the commissioner must cancel the grant and require the grantee to return
all grant money awarded for that project. For industrial park development projects, if, after
five years, the industrial park is not developed and available for business use, the
commissioner must cancel the grant and require the grantee to return all grant money for
that project. If the industrial park is developed and available for use within five years, but
no businesses have located in the park, the grantee is not required to return any grant money.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin Grant money returned to the commissioner is appropriated to
the commissioner to make additional grants under this section.
new text end

Sec. 2. new text begin APPROPRIATION; OBSOLETE SCHOOL PROPERTY GRANT
PROGRAM; BUHL HIGH DEMOLITION, MOUNTAIN IRON.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $2,500,000 is appropriated from the bond proceeds fund
to the commissioner of employment and economic development for grants under the school
property rehabilitation program in Minnesota Statutes, section 116J.439. Of this amount,
$950,000 is for a grant to the city of Mountain Iron to demolish abandoned former Mountain
Iron Buhl High School.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the bond
proceeds fund, the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $2,500,000 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end