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HF 409

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 04/04/2013 03:12pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/07/2013
1st Engrossment Posted on 02/28/2013
2nd Engrossment Posted on 04/04/2013

Current Version - 2nd Engrossment

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A bill for an act
relating to economic development; establishing a medical center development
authority and providing for its organization, powers, and duties; providing
for medical center development districts; authorizing the issuance of revenue
obligations by the authority; authorizing city bonds; authorizing state assistance;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 469.

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

Section 1.

new text begin [469.40] PURPOSES.
new text end

new text begin In order to secure Minnesota's status as one of the world's leading global medical
destinations now and in the future, with the city of Rochester as its hub, it is essential to
support state and local investment in the public infrastructure and related development
activities to stimulate significant private investment and development. Market forces are
driving a small number of select medical institutions to emerge worldwide as leaders in:
(1) delivering the highest quality medical care and attracting patients and visitors from
throughout the world; (2) conducting leading research and technology development; and
(3) serving as an educational platform to foster development of clinical practitioners
for the next generation of medical advancement. The city of Rochester is, and intends
to continue to be, one of those leading destination medical centers. Its existing medical
institutions must continue to make strategic capital investments to grow their patient base
and deliver the highest quality care in the world. The city must attract new, medically
related and other businesses as a means of major economic development and job growth
in the state of Minnesota. However, continued success in Minnesota of existing medical
institutions in Rochester is dependent upon the institutions' ability to attract leading
clinicians, and sustain quality access, development, programming, services, and the public
infrastructure necessary to meet the demands of a growing patient, visitor, and resident
base. Investments in public infrastructure and related development activities are needed
in order to support and attract significant private capital investments and the anticipated
growth in patient and visitor traffic to Rochester and the surrounding area.
new text end

Sec. 2.

new text begin [469.41] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In sections 469.41 to 469.53, the terms defined in this
section have the meanings given them, unless the context indicates a different meaning.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin "Authority" means the Rochester Area Medical Center
Development Authority established in section 469.42.
new text end

new text begin Subd. 3. new text end

new text begin City. new text end

new text begin "City" means the city of Rochester, Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin County. new text end

new text begin "County" means Olmsted County, Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Development; developing. new text end

new text begin "Development" includes redevelopment,
and "developing" includes redeveloping.
new text end

new text begin Subd. 6. new text end

new text begin Development plan. new text end

new text begin "Development plan" means the long-range plan for the
development of the medical center development district or districts.
new text end

new text begin Subd. 7. new text end

new text begin Medical business entity. new text end

new text begin "Medical business entity" means a medical
business entity with its principal place of business in the city of Rochester as of the date of
final enactment of this act that employs more than 30,000 persons in the state as of that date.
new text end

new text begin Subd. 8. new text end

new text begin Medical center development district. new text end

new text begin "Medical center development
district" means a contiguous or noncontiguous geographic area in the city created to
facilitate one or more projects.
new text end

new text begin Subd. 9. new text end

new text begin Medical center economic development corporation. new text end

new text begin "Medical center
economic development corporation" means a nonprofit corporation organized and existing
under chapter 317A by any medical business entity, in partnership with representatives of
the city experienced in matters of planning, supporting, and administering development
activities, to assist the authority and the city to secure Minnesota's status as one of the
world's leading global medical destinations with the city as its hub.
new text end

new text begin Subd. 10. new text end

new text begin Project. new text end

new text begin "Project" means the following works or undertakings for the
purpose of development of a medical center development district:
new text end

new text begin (1) to acquire real property and other assets associated with the real property;
new text end

new text begin (2) to demolish, repair, or rehabilitate buildings;
new text end

new text begin (3) to remediate land and buildings as required to prepare the property for acquisition
or development;
new text end

new text begin (4) to install, construct, or reconstruct elements of community infrastructure
required to support the overall development of the medical center development district,
including, without limitation, streets, roadways, utilities systems and related facilities,
utility relocations and replacements, network and communication systems, streetscape
improvements, drainage systems, sewer and water systems, subgrade structures and
associated improvements, landscaping, facade construction and restoration, wayfinding
and signage, and other components of community infrastructure;
new text end

new text begin (5) to acquire, construct or reconstruct, and equip parking facilities and other
facilities to encourage intermodal transportation and public transit;
new text end

new text begin (6) to install, construct or reconstruct, and equip core elements of community
infrastructure, to promote and encourage economic development and to anchor the medical
center developmental district in accordance with the development plan, including, without
limitation, parks, cultural facilities, community and recreational facilities, facilities to
promote tourism and hospitality, conferencing and conventions, broadcast and related
multimedia infrastructure, destination retail, urban residential housing, and instructional,
educational, and other facilities with the primary purpose of attracting and fostering urban
economic development within the medical center development district;
new text end

new text begin (7) to make related site improvements, including, without limitation, excavation,
earth retention, soil stabilization and correction, site improvements to support the medical
center development district;
new text end

new text begin (8) to prepare land for private development and to sell or lease land; and
new text end

new text begin (9) to build and equip suitable structures on land owned by the authority for sale or
lease for private development, except structures for sale or lease to a medical business
entity.
new text end

new text begin Subd. 11. new text end

new text begin Project cost. new text end

new text begin (a) "Project cost" with respect to a medical center
development district project means all costs of the project activities described in
subdivision 10, and includes, without limitation:
new text end

new text begin (1) costs of planning, engineering, legal, marketing, development, insurance,
finance, and other related professional services associated with a project;
new text end

new text begin (2) costs providing relocation benefits to the occupants of acquired properties;
new text end

new text begin (3) costs associated with the operational start-up and commissioning of a project; and
new text end

new text begin (4) the allocated administrative expenses of the authority for the project not to
exceed ...... in any year.
new text end

new text begin (b) Expenditures for project costs constitute either (1) public improvements to
buildings or lands owned by the state or local government that serve a public purpose and
do not principally benefit a single business or defined group of businesses at the time the
improvements are made or (2) assistance generally available to all businesses or general
classes of similar businesses within a medical center development district, subject to
approval by the authority.
new text end

Sec. 3.

new text begin [469.42] AUTHORITY ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Rochester Area Medical Center Development Authority
established; membership.
new text end

new text begin (a) The Rochester Area Medical Center Development
Authority is established. The authority's governing board consists of eight voting members
and two nonvoting members, as follows:
new text end

new text begin (1) the mayor of the city, or the mayor's designee, subject to approval by the city
council;
new text end

new text begin (2) the city council president, or the city council president's designee, subject
to approval by the city council;
new text end

new text begin (3) a representative of the medical business entity defined in section 469.41,
subdivision 7, appointed by the mayor of the city, subject to approval of the city council;
new text end

new text begin (4) the chair of the county board, or the chair's designee, subject to approval by the
county board;
new text end

new text begin (5) a representative of the medical business entity defined in section 469.41,
subdivision 7, appointed by the governor;
new text end

new text begin (6) a resident of the city and a resident from outside of Olmsted County, appointed
by the governor;
new text end

new text begin (7) a representative from a statewide labor organization representing the building
trades, appointed by the governor;
new text end

new text begin (8) one member of the house of representatives who represents at least a portion
of the city of Rochester to serve as a nonvoting member, appointed by the speaker of
the house of representatives; and
new text end

new text begin (9) one member of the senate who represents at least a portion of the city of
Rochester to serve as a nonvoting member, appointed by the Subcommittee on Committees
of the senate Committee on Rules and Administration.
new text end

new text begin (b) Appointing authorities must make their appointments as soon as practicable after
the effective date of this section.
new text end

new text begin Subd. 2. new text end

new text begin Terms. new text end

new text begin (a) The term of a member first appointed after the effective date
of this section under subdivision 1, paragraph (a), clauses (1), (2), and (4), serves for a
term coterminous with the term of office.
new text end

new text begin (b) The term of a member first appointed after the effective date of this section under
subdivision 1, paragraph (a), clauses (3) and (6), serves from the date of appointment until
the first Tuesday after the first Monday in January 2017. Thereafter, members serve
six-year terms.
new text end

new text begin (c) The term of a member first appointed after the effective date of this section under
subdivision 1, paragraph (a), clauses (5) and (7), serves from the date of appointment until
the first Tuesday after the first Monday in January 2020. Thereafter, members serve
six-year terms.
new text end

new text begin (d) The nonvoting members serve for two years.
new text end

new text begin Subd. 3. new text end

new text begin Vacancies. new text end

new text begin A vacancy occurs:
new text end

new text begin (1) as provided in section 351.02;
new text end

new text begin (2) for a member appointed under subdivision 1, paragraph (a), clause (1) or (2),
when the mayor or city council president, respectively, ceases to hold office or ceases
to reside in the city, and under subdivision 1, paragraph (a), clause (4), when the chair
of the county board ceases to hold office;
new text end

new text begin (3) for a member appointed under subdivision 1, paragraph (a), clause (6), when
the member ceases to reside in the city;
new text end

new text begin (4) for a legislative appointee, if the member ceases to serve in the state legislature; or
new text end

new text begin (5) upon a member's removal under subdivision 4.
new text end

new text begin A vacancy on the authority board must be filled by the appointing authority for the
balance of the term subject to the same approval required for an appointment for a full
term as provided in subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Removal. new text end

new text begin A member may be removed by the board for inefficiency,
neglect of duty, or misconduct in office. A member may be removed only after a hearing
of the board. A copy of the charges must be given to the board member at least ten days
before the hearing. The board member must be given an opportunity to be heard in person
or by counsel at the hearing. When written charges have been submitted against a board
member, the board may temporarily suspend the member. If the board finds that those
charges have not been substantiated, the board member shall be immediately reinstated. If
a board member is removed, a record of the proceedings, together with the charges and
findings, shall be filed with the office of the appointing authority.
new text end

new text begin Subd. 5. new text end

new text begin Pay. new text end

new text begin Members must be compensated as provided in section 15.0575,
subdivision 3, for each regular or special authority board meeting attended. In addition,
the board members may be reimbursed for actual expenses incurred in doing official
business of the authority. All money paid for compensation or reimbursement must be
paid out of the authority's budget.
new text end

new text begin Subd. 6. new text end

new text begin Conflicts of interest. new text end

new text begin Except for the members appointed under subdivision
1, paragraph (a), clauses (3) and (5), to represent the medical business entity, within one
year prior to or at any time during a member's term of service on the authority's governing
board, a member must not be employed by, be a member of the board of directors of, or
otherwise be a representative of the medical business entity, as defined in section 469.41,
subdivision 7, or the medical center economic development corporation, as defined in
section 469.41, subdivision 9. No member may serve as a lobbyist, as defined under
section 10A.01, subdivision 21.
new text end

Sec. 4.

new text begin [469.43] CHARACTERISTICS AND JURISDICTION.
new text end

new text begin Subdivision 1. new text end

new text begin Public body characteristics. new text end

new text begin The authority is a body politic and
corporate and a political subdivision of the state, with the right to sue and be sued in its
own name. The authority carries out an essential government function of the state when it
exercises its power, but the authority is not immune from liability because of this.
new text end

new text begin Subd. 2. new text end

new text begin Boundaries. new text end

new text begin The boundary for activities and the use of the powers of the
authority must be within a medical center development district. The authority also has the
power to finance activities outside of a medical center development district, if necessary;
provided, however, that the financing of activities outside of a medical center development
district must be included in the development plan and must be approved by, and subject to
the planning, zoning, sanitary and building laws, ordinances, regulations, and land use
plans applicable to, the city, county, or town in which such activities are undertaken.
new text end

Sec. 5.

new text begin [469.44] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
new text end

new text begin Subdivision 1. new text end

new text begin Bylaws, rules, seal. new text end

new text begin The authority may adopt bylaws and rules of
procedure and may adopt an official seal.
new text end

new text begin Subd. 2. new text end

new text begin Officers. new text end

new text begin The authority shall annually elect a president or chair, and a
vice-president or vice-chair, and a treasurer. A member may not serve as president or
chair and vice-president or vice-chair at the same time. The authority shall appoint a
secretary and assistant treasurer. The secretary and assistant treasurer need not, but may,
be members of the board, including the president or chair or vice-president or vice-chair.
new text end

new text begin Subd. 3. new text end

new text begin Duties and powers. new text end

new text begin The officers have the usual duties and powers of their
offices. They may be given other duties and powers by the authority.
new text end

new text begin Subd. 4. new text end

new text begin Treasurer's duties. new text end

new text begin The treasurer:
new text end

new text begin (1) shall receive and is responsible for authority money;
new text end

new text begin (2) is responsible for the acts of the assistant treasurer;
new text end

new text begin (3) shall disburse authority money by check or electronic procedures;
new text end

new text begin (4) shall keep an account of the source of all receipts, and the nature, purpose, and
authority of all disbursements; and
new text end

new text begin (5) shall file the authority's detailed financial statement with its secretary at least
once a year at times set by the authority.
new text end

new text begin Subd. 5. new text end

new text begin Assistant treasurer. new text end

new text begin The assistant treasurer has the powers and duties of
the treasurer if the treasurer is absent or disabled.
new text end

new text begin Subd. 6. new text end

new text begin Treasurer's bond. new text end

new text begin The treasurer shall give bond to the state conditioned
for the faithful discharge of official duties. The bond must be approved as to form and
surety by the authority and filed with its secretary. The bond must be for twice the amount
of money likely to be on hand at any one time, as determined at least annually by the
authority, except that the bond must not exceed $300,000.
new text end

new text begin Subd. 7. new text end

new text begin Public money. new text end

new text begin Authority money is public money.
new text end

new text begin Subd. 8. new text end

new text begin Checks. new text end

new text begin An authority check must be signed by the treasurer and by one
other officer named by the authority in a resolution. The check must state the name of the
payee and the nature of the claim for which the check is issued.
new text end

new text begin Subd. 9. new text end

new text begin Financial statements; filing with state auditor. new text end

new text begin The financial statements
of the authority must be prepared, audited, filed, and published or posted in the manner
required for the financial statements of the city. The authority shall employ the state
auditor or a certified public accountant to annually examine and audit its books. The
report of the exam and audit must be filed with the state auditor by June 30 of each year.
The state auditor shall review the report and may accept it or, in the public interest, audit
the books of the authority.
new text end

Sec. 6.

new text begin [469.45] DEPOSITORIES; DEFAULT; COLLATERAL.
new text end

new text begin Subdivision 1. new text end

new text begin Named; bond. new text end

new text begin Every two years the authority shall name national
or state banks within the state as depositories. Before acting as a depository, a named
bank shall give the authority a bond approved as to form and surety by the authority.
The bond must be conditioned for the safekeeping and prompt repayment of deposits.
The amount of the bond must be at least equal to the maximum sum expected to be on
deposit at any one time.
new text end

new text begin Subd. 2. new text end

new text begin Default; collateral. new text end

new text begin When authority funds are deposited by the treasurer
in a bonded depository, the treasurer and the surety on the treasurer's official bond are
exempt from liability for the loss of the deposits because of the failure, bankruptcy, or any
other act or default of the depository. The authority may accept assignments of collateral
from its depository to secure deposits in the same manner as assignments of collateral are
permitted by law to secure deposits of the city.
new text end

Sec. 7.

new text begin [469.47] TAX LEVIES; CITY OR COUNTY APPROPRIATIONS;
OTHER FISCAL MATTERS.
new text end

new text begin Subdivision 1. new text end

new text begin Obligations. new text end

new text begin The authority must not levy a tax or special assessment,
pledge the credit of the state or the state's municipal corporations or other subdivisions, or
incur an obligation enforceable on property not owned by the authority.
new text end

new text begin Subd. 2. new text end

new text begin Budget. new text end

new text begin The authority shall annually send its budget to the city, county,
governor, and legislature.
new text end

new text begin Subd. 3. new text end

new text begin Fiscal year. new text end

new text begin The fiscal year of the authority may be established by the
authority.
new text end

new text begin Subd. 4. new text end

new text begin City or county appropriations; levy. new text end

new text begin The city council of the city or the
county board of the county may appropriate money for the use of the authority and may
levy the amount of its appropriation in its general levy. The levy is a special levy within
the meaning of, and as if specifically enumerated in, section 275.70, subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Outside budget laws. new text end

new text begin Money appropriated to the authority by the city
or county under this section is not subject to a budget law that applies to the city or
county, respectively.
new text end

new text begin Subd. 6. new text end

new text begin City or county payment. new text end

new text begin The city or county treasurer shall pay money
appropriated by a city or county under subdivision 4 when and in the manner directed by
the city council or county board, as applicable.
new text end

new text begin Subd. 7. new text end

new text begin Local government tax base not reduced. new text end

new text begin Nothing in sections 469.41 to
469.53 reduces the tax base or affects the taxes due and payable to the city, the county, or
Independent School District No. 535, including, without limitation, the city's 0.5 percent
local sales tax.
new text end

Sec. 8.

new text begin [469.48] DEVELOPMENT PLAN; MEDICAL CENTER
DEVELOPMENT DISTRICTS.
new text end

new text begin Subdivision 1. new text end

new text begin Development plan; adoption by authority; notice; findings. new text end

new text begin The
authority, in consultation with the medical center economic development corporation,
shall prepare a development plan with the city's involvement. The development plan must
be adopted by the board of the authority only after holding a public hearing. At least 45
days before the hearing, the authority shall file a copy of the proposed development plan
with the city. The city shall make copies of the proposed plan available to the public at
the city offices during normal business hours and as otherwise determined appropriate
by city council or city officials. At least ten days before the hearing, the authority shall
publish notice of the hearing in a daily newspaper of general circulation in the city. The
development plan may not be adopted unless the authority finds by resolution that:
new text end

new text begin (1) the plan provides an outline for the development of the city as a global destination
medical center, and the plan is sufficiently complete, including the identification of planned
and anticipated projects, to indicate its relationship to definite state and local objectives;
new text end

new text begin (2) the proposed development affords maximum opportunity, consistent with the
needs of the city, county, and state, for the development of the city by private enterprise as
a global destination medical center;
new text end

new text begin (3) the proposed development conforms to the general plan for the development
of the city; and
new text end

new text begin (4) the plan includes:
new text end

new text begin (i) strategic planning consistent with a global destination medical center in the
core areas of commercial research and technology, learning environment, hospitality
and convention, sports and recreation, livable communities, including mixed-use urban
development and neighborhood residential development, retail/dining/entertainment,
and health and wellness;
new text end

new text begin (ii) estimates of short- and long-range fiscal and economic impacts;
new text end

new text begin (iii) a framework to identify and prioritize short- and long-term public investment
and infrastructure development and to facilitate private investment and development;
new text end

new text begin (iv) land use planning;
new text end

new text begin (v) transportation and transit planning;
new text end

new text begin (vi) operational planning required to support the medical center development
district; and
new text end

new text begin (vii) ongoing market research plans.
new text end

new text begin Subd. 2. new text end

new text begin Development plan; approval by city; finding. new text end

new text begin After adoption by the
authority under subdivision 1, the authority shall submit the development plan to the city
for approval by the city only in accordance with this subdivision. The city shall approve
the development plan by written resolution upon making the finding that the development
plan is consistent with the adopted comprehensive plan of the city. The city shall consider
the approval of the development plan and make its finding regarding consistency with
the adopted comprehensive plan of the city within 45 days of submission of the adopted
development plan. If the city determines, by written resolution, that the development plan
is not consistent with the adopted comprehensive plan of the city, the resolution shall state
the reasons and supporting facts for each determination, and the city shall transmit the
resolution to the authority within seven days of adoption. A revised development plan
may be submitted by the authority for approval by the city in the manner provided in this
subdivision. The city may incorporate the approved development plan into the city's
comprehensive plan.
new text end

new text begin Subd. 3. new text end

new text begin Modification of development plan. new text end

new text begin The authority may modify the
development plan at any time. The authority shall update the original development plan
not less than every five years. A modification or update under this subdivision must be
prepared with the city's involvement and adopted by the authority upon the notice and
after the public hearing and findings required for the original adoption of the development
plan and upon approval by the city as provided in subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Medical center development districts; creation; notice; findings. new text end

new text begin As
part of the development plan, the authority may create and define the boundaries of
medical center development districts and subdistricts at any place or places within the
city. Projects may be undertaken within defined medical center development districts
consistent with the development plan.
new text end

new text begin Subd. 5. new text end

new text begin Policy. new text end

new text begin It is state policy in the public interest to have the authority exercise
the power of eminent domain to acquire property for a public use, as defined in section
117.025, and advance and spend money for the purposes in sections 469.41 to 469.53.
new text end

Sec. 9.

new text begin [469.49] POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Powers generally. new text end

new text begin The authority has the powers of a city under
chapter 462C and the powers of a redevelopment agency under sections 469.152 to
469.1651, in connection with private development in the city for which the authority
has previously undertaken or concurrently undertakes a project financed in whole or in
part with authority revenue or obligations issued pursuant to section 469.50; provided,
however, the authority shall not enter into any revenue agreement pursuant to section
469.155, subdivision 5, with a medical business entity.
new text end

new text begin Subd. 2. new text end

new text begin Projects; project costs. new text end

new text begin The authority may, within a medical center
development district, undertake projects and finance project costs. The authority must
find by resolution that the project is consistent with and in furtherance of the approved
development plan. Subject to other applicable law, revenue derived by the authority
from any source may be used by the authority to make loans or grants, or to provide
direct or indirect financial support to state public bodies or to private entities in payment
or reimbursement of project costs; provided, however, projects as defined under section
469.41, subdivision 10, clauses (4), (5), and (6), which will be owned, operated, or
maintained by the city, must be approved by written resolution of the city.
new text end

new text begin Subd. 3. new text end

new text begin Medical center economic development corporation. new text end

new text begin (a) The authority
shall engage a medical center economic development corporation to advise the authority
on matters related to a project. The provisions of section 465.717 do not apply to any
entity serving as the medical center economic development corporation. The medical
center economic development corporation shall assist the authority in the preparation of
the development plan and shall provide services to assist the authority in implementing,
consistent with the development plan, the goals, objectives, and strategies in the
development plan, including, without limitation:
new text end

new text begin (1) developing and updating the criteria for evaluating and underwriting
development proposals;
new text end

new text begin (2) implementing the development plan, including soliciting and evaluating
proposals for development and evaluating and making recommendations to the authority
regarding those proposals;
new text end

new text begin (3) providing transactional services in connection with approved projects;
new text end

new text begin (4) developing patient, visitor, and community outreach programs for a medical
center development district;
new text end

new text begin (5) working with the authority to acquire and facilitate the sale, lease, or other
transactions involving land and real property;
new text end

new text begin (6) seeking financial support for itself, the authority, and a project;
new text end

new text begin (7) partnering with other development agencies and organizations and the city and
county in joint efforts to promote economic development and establish a destination
medical center;
new text end

new text begin (8) supporting and administering the planning and development activities required to
implement the development plan;
new text end

new text begin (9) preparing and supporting the marketing and promotion of the medical center
development district;
new text end

new text begin (10) preparing and implementing a program for community and public relations in
support of the medical center development district;
new text end

new text begin (11) assisting the authority and others in applications for federal grants, tax credits,
and other sources of funding to aid both private and public development; and
new text end

new text begin (12) making other general advisory recommendations to the authority's governing
board, as requested.
new text end

new text begin (b) The authority may contract with the medical center economic development
corporation to provide administrative services to the authority. The authority may agree to
provide reasonable compensation to the medical center economic development corporation
for the services described in this section. The authority may pay for such services out of
any revenue sources available to it, including amounts received from the city or the county
under section 469.47 or from payments received from the state under section 469.53.
Nothing in sections 469.40 to 469.53 shall relieve the authority's governing board of its
duties and powers to adopt the development plan or to exercise the judgment or discretion
of the authority to finance projects or otherwise expend public funds.
new text end

new text begin Subd. 4. new text end

new text begin Revenue pooling. new text end

new text begin The authority may deposit all its money from any
source in one bank account.
new text end

new text begin Subd. 5. new text end

new text begin Acquire property; exemption for taxes. new text end

new text begin (a) The authority may acquire by
lease, purchase, gift, or devise the needed right, title, and interest in property to create
medical center development districts and undertake projects. The authority may exercise
the power of eminent domain to acquire property for a public use, as defined in section
117.025. It shall pay for the property out of money it receives under sections 469.41 to
469.53. It may hold and dispose of the property subject to the limits and conditions in
sections 469.41 to 469.53. The title to property acquired by condemnation or purchase
must be in fee simple, absolute. The authority may accept an interest in property acquired
in another way subject to any condition of the grantor or donor. The condition must
be consistent with the proper use of the property under sections 469.41 to 469.53. The
authority may sign options to purchase, sell, or lease property.
new text end

new text begin (b) Property acquired, owned, leased, controlled, used, or occupied by the authority
for any of the purposes of this section is for public governmental and municipal purposes
and is exempt from taxation by the state or its political subdivisions, except to the extent
that the property is subject to the sales and use tax under chapter 297A. The exemption in
this paragraph applies only while the authority holds property for its own purpose, and is
subject to section 272.02, subdivisions 38 and 39. When the property is sold it becomes
subject to taxation.
new text end

new text begin Subd. 6. new text end

new text begin Subject to city requirements. new text end

new text begin All projects and development plans are
subject to the planning, zoning, sanitary, and building laws, ordinances, regulations,
and land use plans applicable to the city.
new text end

new text begin Subd. 7. new text end

new text begin Sale of property. new text end

new text begin The authority may sell, convey, and exchange any real or
personal property owned or held by it in any manner and on any terms it wishes. Real
property owned by the authority must not be sold, conveyed, exchanged, or have its title
transferred without approval of two-thirds of the members of the board. All members
must have ten days' written notice of a regular or special meeting at which a vote on sale,
conveyance, exchange, or transfer of real property is to be taken. The notice must contain
a complete description of the affected real property. The resolution authorizing the real
property transaction is not effective unless a quorum is present.
new text end

new text begin Subd. 8. new text end

new text begin Contracts. new text end

new text begin The authority may make contracts for the purpose of economic
development within the powers given it in sections 469.41 to 469.53. The authority
may contract or arrange with the federal government, or any of its departments, with
persons, public corporations, the state, or any of its political subdivisions, commissions, or
agencies, for separate or joint action, on any matter related to using the authority's powers
or performing its duties. The authority may contract to purchase and sell real and personal
property. An obligation or expense must not be incurred by the authority unless existing
appropriations together with the reasonably expected revenue of the authority from other
sources are sufficient to discharge the obligation or pay the expense when due. The state
and its municipal subdivisions are not liable on the obligations of the authority.
new text end

new text begin Subd. 9. new text end

new text begin Contracts for services. new text end

new text begin The authority may contract for the services of
consultants, including the medical center economic development corporation, and agents,
public accountants, legal counsel, and other persons needed to assist the authority in
performing its duties and exercising its powers. The authority may contract with the city
or county to provide administrative, clerical, and accounting services to the authority.
Nothing in sections 469.40 to 469.53 relieves the authority's governing board of its duties
and powers to adopt the development plan or to exercise the judgment or discretion of the
authority to finance projects or otherwise expend public funds. Any contract for services
between the authority and the medical center development corporation paid, in whole or
in part, with public money shall give the authority and the state auditor the right to audit
the books and records of the medical center development corporation that are necessary
to certify (1) the nature and extent of the services furnished pursuant to the contract,
and (2) that the payment for services and related disbursements complies with all state
laws, regulations, and the terms of the contract. Any contract for services between the
authority and the medical center development corporation paid, in whole or in part, with
public money shall require the authority to maintain, during the term of the contract,
and for a period of at least ... years thereafter, accurate and complete books and records
directly relating to the contract.
new text end

new text begin Subd. 10. new text end

new text begin Supplies. new text end

new text begin The authority may purchase the supplies and materials it needs
to carry out sections 469.41 to 469.53.
new text end

new text begin Subd. 11. new text end

new text begin City purchasing. new text end

new text begin The authority may, by agreement with the city, use the
facilities and services of the city's purchasing and public works departments in connection
with construction work and to purchase equipment, supplies, or materials.
new text end

new text begin Subd. 12. new text end

new text begin City facilities, services. new text end

new text begin The city may furnish offices, structures and
space, and clerical, engineering, or other services or assistance to the authority.
new text end

new text begin Subd. 13. new text end

new text begin Delegation power. new text end

new text begin The authority may delegate to one or more of its
agents powers or duties as it deems proper.
new text end

new text begin Subd. 14. new text end

new text begin Government agent. new text end

new text begin The authority may cooperate with or act as agent
for the federal or state government, a state public body, or an agency or instrumentality
of a government or a public body to carry out sections 469.41 to 469.53 or any other
related federal, state, or local law.
new text end

new text begin Subd. 15. new text end

new text begin Studies, analysis, research. new text end

new text begin The authority may study and analyze
development needs in a medical center development district and ways to meet the needs.
The authority may study the desirable patterns for land use and community growth and
other factors affecting local development in a medical center development district and
make the result of the studies available to the public and to potential developers. The
authority may engage in research and disseminate information on development in its
medical center development districts.
new text end

new text begin Subd. 16. new text end

new text begin Acceptance of public land. new text end

new text begin The authority may accept conveyances of
land from all other public agencies, commissions, or other units of government, if the land
can be properly used by the authority in a medical center development district, to carry
out the purposes of sections 469.41 to 469.53. The city council of the city may transfer
or cause to be transferred to the authority any property owned or controlled by the city
and located within the jurisdiction of the authority. The transfer must be approved by
majority vote of the city council and may be with or without consideration. The city may
also put the property in the possession or control of the authority by a lease or other
agreement for a limited period or in fee.
new text end

new text begin Subd. 17. new text end

new text begin Loans in anticipation of bonds. new text end

new text begin After authorizing bonds under section
469.50, the authority may borrow to provide money immediately required for the bond
purposes. The loans may not exceed the amount of the bonds. The authority shall by
resolution decide the terms of the loans. The loans must be evidenced by negotiable
notes due in not more than 12 months from the date of the loan payable to the order of
the lender, to be repaid with interest from the proceeds of the bonds when the bonds are
issued and delivered to the bond purchasers. The loan must not be obtained from any
board member of the authority or from any corporation, association, or other institution of
which an authority board member is a stockholder or officer.
new text end

new text begin Subd. 18. new text end

new text begin Report. new text end

new text begin By January 15 of each odd-numbered year, the authority shall
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over local and state government operations, economic development, and
capital investment, and to the commissioners of management and budget and employment
and economic development, the city, and the county. The authority shall also submit the
report as provided in section 3.195. The report must include:
new text end

new text begin (1) the adopted development plan and any proposed changes to the development plan;
new text end

new text begin (2) progress of projects identified in the development plan;
new text end

new text begin (3) actual costs and financing sources of projects completed in the previous two
years by the authority, the city, the county, and the medical business entity;
new text end

new text begin (4) estimated costs and financing sources for projects to be begun in the next two
years by the authority, the city, the county, and the medical business entity; and
new text end

new text begin (5) debt service schedules for all outstanding obligations of the authority.
new text end

new text begin Subd. 19. new text end

new text begin No tax increment financing powers. new text end

new text begin The authority is not an authority as
defined in section 469.174, subdivision 2.
new text end

Sec. 10.

new text begin [469.50] REVENUE OBLIGATIONS; PLEDGE; COVENANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Powers. new text end

new text begin The authority may decide by resolution to issue its revenue
bonds, notes, or other obligations either at one time or in series from time to time. The
revenue bonds may be issued to provide money to pay project costs. The issued bonds
may include the amount the authority considers necessary to establish an initial reserve to
pay principal of and interest on the bonds, including capitalized interest, and to pay the
costs of issuance. The resolution shall state how the bonds are to be executed.
new text end

new text begin Subd. 2. new text end

new text begin Form. new text end

new text begin The bonds of each series issued by the authority under this section
must bear interest at the rate or rates, mature at times not later than 30 years from the date
of issuance, and be fully registered bonds in the form determined by the authority. All
bonds issued under this section must be negotiable instruments.
new text end

new text begin Subd. 3. new text end

new text begin Sale. new text end

new text begin The sale of revenue bonds issued by the authority may be at public or
private sale. The bonds may be sold in the manner and for the amount that the authority
determines to be in the best interest of the authority. The bonds may be made callable upon
terms as determined by the authority and may be refunded as provided in section 475.67.
new text end

new text begin Subd. 4. new text end

new text begin Agreements. new text end

new text begin The authority may by resolution make an agreement or
covenant with the bondholders or their trustee if it determines that the agreement or
covenant is needed or desirable to carry out the powers given to the authority under this
section and to ensure that the revenue bonds are marketable and promptly paid.
new text end

new text begin Subd. 5. new text end

new text begin Revenue pledge. new text end

new text begin (a) In issuing bonds under this section, the authority may
secure payment of the principal and interest on the bonds by:
new text end

new text begin (1) a pledge of and lien on authority revenue. The revenue must come from the
facility to be acquired, constructed, or improved with the bond proceeds or from other
facilities named in the bond-authorizing resolutions. The authority also may secure the
payment with its promise to impose, maintain, and collect enough rentals, rates, and
charges, for the use and occupancy of the facilities and for services furnished in connection
with the use and occupancy, to pay its current expenses to operate and maintain the named
facilities, and to produce and deposit sufficient net revenue in a special fund to meet the
interest and principal requirements of the bonds, and to collect and keep any more money
required by the resolutions. The authority shall decide what constitutes "current" expense
under this subdivision based on what is normal and reasonable under generally accepted
accounting principles. Revenues pledged by the authority must not be used or pledged for
any other authority purpose unless the other use or pledge is specifically authorized in the
bond-authorizing resolutions; or
new text end

new text begin (2) the payments to be made by the state to the authority under section 469.53.
The aggregate principal amount of bonds issued under this clause may not exceed
$585,000,000, less the principal amount of any city grant, bond, or note given or issued to
finance project costs consistent with the development plan up to $60,000,000.
new text end

new text begin (b) No bonds may be issued by the authority under this subdivision later than
20 years from the date of final enactment of this act, and no bond issued under this
subdivision may have a maturity later than December 31, 2049.
new text end

new text begin Subd. 6. new text end

new text begin Approval of commissioner of employment and economic development.
new text end

new text begin (a) Prior to issuance of each series of bonds, notes, or other obligations under subdivision
5, clause (2), the authority shall furnish to the commissioner of employment and economic
development, in the form prescribed by the commissioner, the following information
regarding a project:
new text end

new text begin (1) the amount of bonds to be issued for the project;
new text end

new text begin (2) the maximum annual debt service payable on the bonds in any year;
new text end

new text begin (3) the proposed use, location, and ownership of the project;
new text end

new text begin (4) other sources of funds for the project; and
new text end

new text begin (5) the specific uses of the proceeds of the bonds.
new text end

new text begin For purposes of determining the maximum annual debt service under clause (2), for
variable rate obligations, interest rates must be determined as the maximum rate of interest
payable on the obligations in accordance with their terms.
new text end

new text begin (b) In addition, the authority shall certify that the project is consistent with the
development plan and that debt service in any year on all bonds then outstanding and the
bonds proposed to be issued under subdivision 5, paragraph (a), clause (2), does not
exceed resources available to the authority to pay debt service when due.
new text end

new text begin (c) Based upon the information provided by the authority, the commissioner of
employment and economic development shall approve the issuance of that series of
authority bonds if consistent with the requirements of sections 469.41 to 469.53, the
maximum debt service payable in any year on the series, and any previously issued bonds
is less than the maximum annual appropriation under section 469.53 and the commissioner
of employment and economic development shall promptly notify the authority and the
commissioner of management and budget of its approval; provided, however, that the
approval is not deemed an approval by the commissioner of employment and economic
development or by the state of the feasibility of the project. The commissioner of
employment and economic development shall keep a record of the information, which
shall be available to the public at times the department prescribes.
new text end

new text begin Subd. 7. new text end

new text begin Not city, county, or state debt. new text end

new text begin Revenue bonds, notes, or other obligations
issued under this section are not a debt of the city, county, or state, nor a pledge of the full
faith and credit of the city, county, or state. All obligations under this section are payable
only from revenues described in subdivision 5. A revenue bond must contain on its face a
statement to the effect that the authority does not have to pay the bond or the interest on it
except from the revenues pledged thereto and that the faith, credit, and taxing power of the
city, the county, and the state are not pledged to pay the principal of or interest on the bond.
new text end

Sec. 11.

new text begin [469.51] CITY BONDS; PUBLIC IMPROVEMENTS.
new text end

new text begin The city may issue bonds and appropriate bond proceeds to pay project costs
consistent with the development plan within a medical center development district. The city
may undertake public improvements and infrastructure projects to be owned by the city or
make grants to the authority for such public improvements and infrastructure projects in the
same manner as if the facilities were owned or to be owned or operated solely by the city.
new text end

Sec. 12.

new text begin [469.52] WHEN BOND ALLOCATION ACT APPLIES.
new text end

new text begin Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.41 to
469.53 that are limited by a federal tax law as defined in section 474A.02, subdivision 8.
new text end

Sec. 13.

new text begin [469.53] PAYMENTS TO AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation for debt payment. new text end

new text begin Beginning in fiscal year
2016 and continuing to fiscal year 2049, the amount necessary to pay debt service due
on outstanding obligations of the authority issued under section 469.50, subdivision
5, paragraph (a), clause (2), is appropriated each year from the general fund to the
commissioner of management and budget for transfer to the authority.
new text end

new text begin Subd. 2. new text end

new text begin Operating and administrative expenses. new text end

new text begin Beginning in fiscal year
2016 and continuing to fiscal year 2049, an amount agreed to by the commissioner of
management and budget and the authority is appropriated each year from the general fund
to the commissioner for transfer to the authority to pay operating and administrative
expenses of the authority.
new text end

new text begin Subd. 3. new text end

new text begin Maximum amount; condition for payment. new text end

new text begin The total amount
appropriated to the commissioner under this section must not exceed $....... per year.
The commissioner must not transfer money to the authority unless the report required in
section 469.49, subdivision 18, has been submitted.
new text end