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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1983 

                        CHAPTER 357--S.F.No. 679
           An act relating to redevelopment; authorizing the 
          commissioner of iron range resources and 
          rehabilitation to exercise certain powers and to issue 
          bonds to finance certain projects and programs in tax 
          relief areas; appropriating money; amending Minnesota 
          Statutes 1982, section 298.292; proposing new law 
          coded in Minnesota Statutes, chapter 298. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [298.2211] [FINANCING ACTIVITIES.] 
    Subdivision 1.  [PURPOSE; GRANT OF AUTHORITY.] In order to 
accomplish the legislative purposes specified in chapters 362A, 
462C, and 474, within tax relief areas as defined in section 
273.134, the commissioner of iron range resources and 
rehabilitation may exercise the following powers:  (1) all 
powers conferred upon a rural development financing authority 
under sections 362A.01 to 362A.05; (2) all powers conferred upon 
a city under chapter 462C, subject to compliance with the 
provisions of section 462C.09; (3) all powers conferred upon a 
municipality or a redevelopment agency under chapter 474; (4) 
all powers provided by chapter 362A to further any of the 
purposes and objectives of chapters 462C and 474; and (5) all 
powers conferred upon a municipality or an authority under 
sections 273.73 to 273.76, section 273.77, except paragraph (a) 
thereof, and section 273.78, subject to compliance with the 
provisions of section 273.74, subdivisions 1, 2, and 3; provided 
that any tax increments derived by the commissioner from the 
exercise of this authority may be used only to finance or pay 
premiums or fees for insurance, letters of credit, or other 
contracts guaranteeing the payment when due of net rentals under 
a project lease or the payment of principal and interest due on 
or repurchase of bonds issued to finance a project or program, 
to accumulate and maintain reserves securing the payment when 
due on bonds issued to finance a project or program, or to 
provide an interest rate reduction program pursuant to section 
462.445, subdivision 10.  Tax increments and earnings thereon 
remaining in any bond reserve account after payment or discharge 
of any bonds secured thereby shall be used within one year 
thereafter in furtherance of this section or returned to the 
county auditor of the county in which the tax increment 
financing district is located.  If returned to the county 
auditor, the county auditor shall immediately allocate the 
amount among all government units which would have shared 
therein had the amount been received as part of the other ad 
valorem taxes on property in the district most recently paid, in 
the same proportions as other taxes were distributed, and shall 
immediately distribute it to the government units in accordance 
with the allocation.  
     Subd. 2.  [AREA OF OPERATION.] Projects undertaken, 
developed, or financed pursuant to this section shall be located 
within the tax relief area defined in section 273.134. 
     Subd. 3.  [PROJECT APPROVAL.] All projects authorized by 
this section shall be submitted by the commissioner to the iron 
range resources and rehabilitation board, which shall recommend 
approval or disapproval or modification of the projects.  Each 
project shall then be submitted to the legislative advisory 
committee for any review and comment the committee deems 
appropriate.  Prior to the commencement of a project involving 
the exercise by the commissioner of any authority of sections 
273.71 to 273.86, the governing body of each municipality in 
which any part of the project is located and the county board of 
any county containing portions of the project not located in an 
incorporated area shall by majority vote approve or disapprove 
the project.  Any project, as so approved by the board and the 
applicable governing bodies, if any, together with any comment 
provided by the legislative advisory committee, detailed 
information concerning the project, its costs, the sources of 
its funding, and the amount of any bonded indebtedness to be 
incurred in connection with the project, shall be transmitted to 
the governor, who shall approve, disapprove, or return the 
proposal for additional consideration within 30 days of 
receipt.  No project authorized under this section shall be 
undertaken, and no obligations shall be issued and no tax 
increments shall be expended for a project authorized under this 
section until the project has been approved by the governor.  
    Subd. 4.  [OBLIGATIONS NOT STATE DEBT.] Bonds and other 
obligations issued by the commissioner pursuant to this section 
are not general obligations of the state of Minnesota.  The full 
faith and credit and taxing powers of the state are not and may 
not be pledged for the payment of these bonds or other 
obligations, and no person has the right to compel the levy of 
any state tax for their payment or to compel the appropriation 
of any moneys of the state for their payment except as 
specifically provided herein.  These bonds and obligations shall 
be payable solely from the property and moneys derived by the 
commissioner pursuant to the authority granted in this section 
that the commissioner pledges to their payment.  All these bonds 
or other obligations must contain the provisions of this 
subdivision or words to the same effect on their face.  
    Subd. 5.  [APPROPRIATION OF MONEYS.] There is appropriated 
to the commissioner for the purpose of carrying out any project 
or program undertaken pursuant to this section, all property and 
moneys derived by the commissioner through the exercise of the 
powers conferred by this section.  The commissioner may pledge 
all the property or moneys for the security or payment of bonds 
or other obligations issued or entered into by him for this 
purpose.  
    Sec. 2.  Minnesota Statutes 1982, section 298.292, is 
amended to read: 
    298.292 [POLICY.] 
    The legislature is cognizant of the severe economic 
dislocations and widespread unemployment that result when a 
single industry on which an area is largely dependent, 
experiences a drastic reduction in activity.  The northeast 
Minnesota economic protection trust fund is hereby created to be 
devoted to economic rehabilitation and diversification of 
industrial enterprises where these conditions ensue as the 
result of the decline of such a single industry.  Priority shall 
be given to using the northeast Minnesota economic protection 
trust fund for the following purposes:  
    (a) projects and programs that are designed to create and 
maintain productive, permanent, skilled employment, including 
employment in technologically innovative businesses;  
    (b) projects and programs to promote the development of 
minerals, alternative energy sources utilizing indigenous fuels, 
forestry, small business, and tourism;  
    (c) projects and programs for which technological and 
economic feasibility have been demonstrated; and 
    (d) loans, loan guarantees, interest buy-downs and other 
forms of participation with private sources of financing in 
preference to grants; and 
    (e) funding reserve accounts established to secure the 
payment when due of the principal of and interest on bonds 
issued pursuant to section 1.  
    Money from the trust fund shall be expended only in or for 
the benefit of the tax relief area defined in section 273.134.  
     Sec. 3.  [EFFECTIVE DATE.] 
     Sections 1 and 2 are effective the day following final 
enactment. 
    Approved June 14, 1983