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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1985 

                        CHAPTER 194-S.F.No. 925 
           An act relating to economic development; granting 
          certain powers to municipalities; amending Minnesota 
          Statutes 1984, sections 16B.61, subdivision 3; 273.73, 
          subdivisions 9, 12, and by adding a subdivision; 
          273.74, subdivision 3; 273.75, subdivision 1, and by 
          adding a subdivision; 273.76, subdivision 1; 458.16, 
          by adding a subdivision; 462.352, subdivisions 5, 7, 
          9, 10, 15, and by adding a subdivision; 462.357, 
          subdivision 1; 462.358, subdivision 2a; 472.08, 
          subdivision 1; 472A.03; 474.02, by adding a 
          subdivision; Laws 1980, chapter 595, section 3, 
          subdivision 1; proposing coding for new law in 
          Minnesota Statutes, chapter 465; and proposing coding 
          for new law as Minnesota Statutes, chapter 472B. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [472B.01] [POPULAR NAME.] 
    Sections 1 to 8 may be cited as the "mined underground 
space development act." 
    Sec. 2.  [472B.02] [POLICY.] 
    The legislature finds that many subsurface areas of the 
state have a largely undeveloped potential to be mined for the 
development of underground space.  The development and 
redevelopment of mined underground space makes use of the 
state's special geologic resources, fosters wise land use, 
especially in built-up urban areas, encourages commercial and 
industrial development, increases employment opportunities, 
enhances the tax base, contributes to the preservation of 
agricultural and other open lands, permits more energy efficient 
development and promotes and protects the public welfare.  The 
legislature finds that these underground spaces provide an 
exceptionally stable environment and may therefore be 
particularly attractive to such clean industries as high 
technology and warehousing companies. 
    Therefore, the legislature finds that it is in the public 
interest to authorize municipalities to encourage, promote, and 
enable both public and private development of mined underground 
space and to authorize municipalities to protect both subsurface 
areas potentially suitable for development and existing mined 
underground space. 
    Sec. 3.  [472B.03] [DEFINITIONS.] 
    Subdivision 1.  [TERMS DEFINED.] For the purposes of this 
chapter, the terms defined in this section have the meanings 
given them. 
    Subd. 2.  [AUTHORITY.] "Authority" means an authority, as 
defined in section 273.73. 
    Subd. 3.  [MINED UNDERGROUND SPACE.] "Mined underground 
space" means space resulting from, or which will result from, 
the excavation of subsurface areas by underground mining methods 
and having limited access from and to the surface and the 
supporting material surrounding the space. 
    Subd. 4.  [MINED UNDERGROUND SPACE DEVELOPMENT.] "Mined 
underground space development" means the development or 
redevelopment of mined underground space for commercial, 
industrial, and other public and private use, but shall not 
include the development or redevelopment of mined underground 
space for long-term storage or disposal of hazardous waste or 
high level nuclear waste. 
    Subd. 5.  [MUNICIPALITY.] "Municipality" means a home rule 
charter or statutory city. 
    Subd. 6.  [PROJECT.] "Project" means a project encompassing 
mined underground space development. 
    Subd. 7.  [PROJECT COSTS.] "Project costs" mean all costs 
and estimated costs incurred and to be incurred by a 
municipality or by any other person in connection with the 
acquisition, construction, reconstruction, improvement, 
betterment, and extension of a project, including all 
engineering, architectural, legal, fiscal, and administrative 
fees and expenses, interest on moneys borrowed to pay project 
costs during construction and for a period up to six months 
thereafter, title insurance premiums, rating agency fees, 
printing expenses, underwriters' commission or discount, bond 
insurance or other credit enhancement premiums or fees, bond 
trustee fees, and, as to bonds which are not general obligation 
bonds, a debt service reserve. 
    Subd. 8.  [PROPERTY RIGHTS.] The words "interest in land," 
"land," "property," "property right," "property interest," and 
other terms describing real property shall include within their 
meaning, but not be limited to, airspace necessary for the 
development of projects in subsurface areas. 
    Sec. 4.  [472B.04] [POWERS OF MUNICIPALITY.] 
    A municipality may, to accomplish the purposes of this 
chapter: 
    (1) exercise any or all powers enumerated in chapter 458, 
but only if the municipality has been granted authority to 
exercise the powers enumerated in chapter 458, chapter 462, 
chapter 472, chapter 472A, and chapter 474, in conjunction with 
the powers granted by this chapter; 
    (2) provide public facilities pursuant to chapter 429, 
chapter 430, and any charter provision or any special law; 
    (3) acquire, by lease, purchase, gift, condemnation, or 
otherwise, land or interests in land, and convey land or 
interests in land.  A municipality is empowered to acquire by 
condemnation any property, property right or interest in 
property, corporate or incorporeal, within its boundaries which 
may be needed by it for a project, for access, including surface 
and subsurface access, for ventilation, or for any other purpose 
which it finds by resolution to be needed by it in connection 
with mined underground space development; and the fact that the 
property or interest in property so needed has been acquired by 
the owner under the power of eminent domain, or is already 
devoted to a public use, or is owned by the University of 
Minnesota, any city, county, school district, town, other 
municipality, or other governmental subdivision, railroad, or 
public or private utility, shall not prevent its acquisition by 
the municipality by the exercise of the right of eminent domain 
hereby conferred, provided the existing use thereof is not 
impaired; the necessity of the taking of any property or 
interest in property by the municipality shall be determined by 
resolution duly adopted by the governing body of the 
municipality, which shall describe the property or interest as 
nearly as it may be described and state the use and purpose to 
which it is to be devoted; except as otherwise provided in this 
chapter, the right of eminent domain shall be exercised in 
accordance with chapter 117, provided that any exercise of the 
right of eminent domain hereby conferred shall not be for the 
purpose of preventing the development, mining, and use of 
mineral resources; 
    (4) acting alone or with others, acquire, purchase, 
construct, lease, mortgage, maintain, operate, and convey 
projects; 
    (5) borrow money to carry out the purposes of this chapter; 
    (6) enter into contracts, sue and be sued and do or 
accomplish all other acts and things necessary or convenient to 
carry out the purposes and policies of this chapter; and 
    (7) exercise bonding authority as provided in section 5.  
    Sec. 5.  [472B.05] [BONDING AUTHORITY.] 
    A municipality may by resolution of its governing body 
authorize the issuance of bonds to provide funds for payment of 
project costs incurred and to be incurred in the acquisition or 
betterment of projects, or for refunding any outstanding bonds 
issued by it for any such purpose, and may pledge to the payment 
of the bonds and the interest thereon, its full faith, credit, 
and taxing powers, or the proceeds of any designated tax levies, 
or the gross or net revenues to be derived from any project 
operated by or for the municipality, or any combination 
thereof.  Taxes levied for the payment of the bonds and interest 
shall not reduce the amounts of other taxes which the 
municipality is authorized or required by law to levy.  Bonds 
issued pursuant to this section may be sold at public or private 
sale upon such conditions as the governing body of the 
municipality shall determine, except that any bonds to which the 
full faith and credit and taxing powers of the municipality are 
pledged shall be sold in accordance with the provisions of 
section 475.60.  
    Sec. 6.  [472B.06] [DELEGATION BY MUNICIPALITY.] 
    Any or all of the powers provided in sections 4 and 5 may 
be exercised by the governing body of a municipality. 
Alternatively, the governing body of a municipality may, by 
ordinance or resolution, delegate to an authority any or all of 
the powers provided in sections 4 and 5.  Any ordinance or 
resolution delegating powers to an authority shall specify the 
powers delegated and any conditions to that delegation.  Any 
power not expressly delegated to the authority may not be 
exercised by the authority, but may be exercised by the 
governing body of the municipality.  To the extent a power is 
delegated to an authority, any action of the governing body of 
the authority shall be considered to be the action of the 
governing body of the municipality.  The governing body of a 
municipality may at any time by ordinance or resolution, 
whichever was used to delegate powers to an authority, repeal, 
rescind, or revoke any or all of the powers previously delegated 
to an authority, but the municipality remains liable for all 
actions previously taken and contracts previously made by the 
authority. 
    Sec. 7.  [472B.07] [PROJECTS DESCRIBED IN CHAPTER 474.] 
    If and to the extent any project proposed to be undertaken 
by a municipality also constitutes a project as defined in 
section 474.02, the provisions of chapter 474 shall be 
applicable to the undertaking and financing of that project by 
the municipality, except that to the extent the governing body 
of a municipality has delegated powers to an authority as 
provided in section 6 those powers may be exercised under 
chapter 474 by the authority. 
    Sec. 8.  [472B.08] [REGULATION OF DRILLING TO PROTECT MINED 
UNDERGROUND SPACE DEVELOPMENT.] 
    Subdivision 1.  [DEPARTMENT OF NATURAL RESOURCES REVIEW.] 
The department of natural resources shall review all project 
plans which involve dewatering of underground formations for 
construction and operation of mined underground space to 
determine the effects of the proposal on the quality and 
quantity of underground waters in and adjacent to the areas 
where the mined underground space is to be developed.  
    Subd. 2.  [POWER TO REGULATE.] Municipalities may regulate 
all drilling, except water well and exploratory drilling which 
is subject to the provisions of sections 156A.01 to 156A.10, 
above, in, through, and adjacent to subsurface areas designated 
for mined underground space development and existing mined 
underground space.  The regulations may prohibit, restrict, 
control, and require permits for such drilling.  
    Subd. 3.  [WATER WELL REGULATION.] With respect to water 
wells as defined in section 156A.02, municipalities may 
prohibit, restrict, control, and require permits for water well 
drilling, but the construction and abandonment of water wells is 
governed by sections 156A.01 to 156A.10.  
    Subd. 4.  [PERMITS FOR WATER REMOVAL.] No mined underground 
space project involving or affecting the quality and quantity of 
underground waters may be developed until a permit for the 
appropriation of waters pursuant to Minnesota Statutes, section 
105.41, has been granted by the commissioner of natural 
resources.  
    Sec. 9.  Minnesota Statutes 1984, section 273.73, 
subdivision 9, is amended to read: 
    Subd. 9.  [TAX INCREMENT FINANCING DISTRICT.] "Tax 
increment financing district" or "district" means a contiguous 
or noncontiguous geographic area within a project delineated in 
the tax increment financing plan, as provided by section 273.74, 
subdivision 1, for the purpose of financing redevelopment, mined 
underground space development, housing or economic development 
in municipalities through the use of tax increment generated 
from the captured assessed value in the tax increment financing 
district.  
    Sec. 10.  Minnesota Statutes 1984, section 273.73, 
subdivision 12, is amended to read: 
    Subd. 12.  [ECONOMIC DEVELOPMENT DISTRICT.] "Economic 
development district" means a type of tax increment financing 
district which consists of any project, or portions of a 
project, not meeting the requirements found in the definition of 
redevelopment district, mined underground space development 
district or housing district, but which the authority finds to 
be in the public interest because: 
    (a) It will discourage commerce, industry or manufacturing 
from moving their operations to another state; or 
    (b) It will result in increased employment in the 
municipality; or 
    (c) It will result in preservation and enhancement of the 
tax base of the municipality. 
    Sec. 11.  Minnesota Statutes 1984, section 273.73, is 
amended by adding a subdivision to read: 
    Subd. 14.  [MINED UNDERGROUND SPACE DEVELOPMENT 
DISTRICT.] "Mined underground space development district" means 
a type of tax increment financing district consisting of a 
project, or portions of a project, for the development or 
redevelopment of mined underground space pursuant to sections 3 
to 7. 
    Sec. 12.  Minnesota Statutes 1984, section 273.74, 
subdivision 3, is amended to read: 
    Subd. 3.  [MUNICIPALITY APPROVAL.] No county auditor shall 
certify the original assessed value of a tax increment financing 
district until the tax increment financing plan proposed for 
that district has been approved by the municipality in which the 
district is located.  If an authority which proposes to 
establish a tax increment financing district and the 
municipality are not the same, the authority shall apply to the 
municipality in which the district is proposed to be located and 
shall obtain the approval of its tax increment financing plan by 
the municipality before the authority may use tax increment 
financing.  The municipality shall approve the tax increment 
financing plan only after a public hearing thereon after 
published notice in a newspaper of general circulation in the 
municipality at least once not less than ten days nor more than 
30 days prior to the date of the hearing.  This hearing may be 
held before or after the approval or creation of the project or 
it may be held in conjunction with a hearing to approve the 
project.  Before or at the time of approval of the tax increment 
financing plan, the municipality shall make the following 
findings, and shall set forth in writing the reasons and 
supporting facts for each determination: 
    (a) That the proposed tax increment financing district is a 
redevelopment district, a mined underground space development 
district, a housing district or an economic development district.
    (b) That the proposed development or redevelopment, in the 
opinion of the municipality, would not reasonably be expected to 
occur solely through private investment within the reasonably 
foreseeable future and therefore the use of tax increment 
financing is deemed necessary. 
    (c) That the tax increment financing plan conforms to the 
general plan for the development or redevelopment of the 
municipality as a whole. 
    (d) That the tax increment financing plan will afford 
maximum opportunity, consistent with the sound needs of the 
municipality as a whole, for the development or redevelopment of 
the project by private enterprise. 
    (e) That the municipality elects the method of tax 
increment computation set forth in section 273.76, subdivision 
3, clause (b), if applicable. 
    When the municipality and the authority are not the same, 
the municipality shall approve or disapprove the tax increment 
financing plan within 60 days of submission by the authority, or 
the plan shall be deemed approved.  When the municipality and 
the authority are not the same, the municipality may not amend 
or modify a tax increment financing plan except as proposed by 
the authority pursuant to subdivision 4.  Once approved, the 
determination of the authority to undertake the project through 
the use of tax increment financing and the resolution of the 
governing body shall be conclusive of the findings therein and 
of the public need for such financing. 
    Sec. 13.  Minnesota Statutes 1984, section 273.75, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DURATION OF TAX INCREMENT FINANCING 
DISTRICTS.] Subject to the limitations contained elsewhere in 
this subdivision any tax increment financing district as to 
which bonds are outstanding, payment for which the tax increment 
and other revenues have been pledged, shall remain in existence 
at least as long as any such bonds continue to be outstanding; 
provided, however, the tax increment pledged to the payment of 
bonds and interest thereon may be discharged and the tax 
increment financing district may be terminated if sufficient 
funds have been irrevocably deposited in the debt service fund 
or other escrow account held in trust for all outstanding bonds 
to provide for the payment of the bonds at maturity or date of 
redemption and interest thereon to such maturity or redemption 
date, provided that for bonds issued pursuant to section 273.77, 
clauses (a) and (b) the full faith and credit and any taxing 
powers of the municipality or authority shall continue to be 
pledged to the payment of the bonds until the principal of and 
interest on the bonds has been paid in full; provided, further, 
that no tax increment shall be paid to an authority for a tax 
increment financing district after three years from the date of 
certification of the original assessed value of the taxable real 
property in the district by the county auditor or three years 
from August 1, 1979, for tax increment financing districts 
authorized prior to August 1, 1979, unless within the three year 
period (a) bonds have been issued pursuant to section 273.77, or 
in aid of a project pursuant to any other law, except revenue 
bonds issued pursuant to chapter 474, prior to August 1, 1979, 
or (b) the authority has acquired property within the district, 
or (c) the authority has constructed or caused to be constructed 
public improvements within the district; and provided, further, 
that no tax increment shall in any event be paid to the 
authority from a redevelopment district after 25 years from date 
of receipt by the authority of the first tax increment, after 25 
years from the date of the receipt for a housing district, after 
25 years from the date of the receipt for a mined underground 
space development district, and after eight years from the date 
of the receipt, or ten years from approval of the tax increment 
financing plan, whichever is less, for an economic development 
district. 
    For tax increment financing districts created prior to 
August 1, 1979, no tax increment shall be paid to the authority 
after 30 years from August 1, 1979. 
    Modification of a tax increment financing plan pursuant to 
section 273.74, subdivision 4, shall not extend the durational 
limitations of this subdivision. 
    Sec. 14.  Minnesota Statutes 1984, section 273.75, is 
amended by adding a subdivision to read: 
    Subd. 8.  [MINED UNDERGROUND SPACE DEVELOPMENT 
DISTRICT.] Revenue derived from tax increment from a mined 
underground space development district may be used only to pay 
for the costs of excavating and supporting the space, of 
providing public access to the mined underground space including 
roadways, and of installing utilities including fire sprinkler 
systems in the space.  
    Sec. 15.  Minnesota Statutes 1984, section 273.76, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ORIGINAL ASSESSED VALUE.] Upon or after 
adoption of a tax increment financing plan, the auditor of any 
county in which the district is situated shall, upon request of 
the authority, certify the original assessed value of the tax 
increment financing district as described in the tax increment 
financing plan and shall certify in each year thereafter the 
amount by which the original assessed value has increased or 
decreased as a result of a change in tax exempt status of 
property within the district, reduction or enlargement of the 
district or changes pursuant to subdivision 4.  In the case of a 
mined underground space development district the county auditor 
shall certify the original assessed value as zero, plus the 
assessed value, if any, previously assigned to any subsurface 
area included in the mined underground space development 
district pursuant to section 272.04.  The amount to be added to 
the original assessed value of the district as a result of 
previously tax exempt real property within the district becoming 
taxable shall be equal to the assessed value of the real 
property as most recently assessed pursuant to section 273.18 
or, if that assessment was made more than one year prior to the 
date of title transfer rendering the property taxable, the value 
which shall be assessed by the assessor at the time of such 
transfer.  The amount to be added to the original assessed value 
of the district as a result of enlargements thereof shall be 
equal to the assessed value of the added real property as most 
recently certified by the commissioner of revenue as of the date 
of modification of the tax increment financing plan pursuant to 
section 273.74, subdivision 4.  Each year the auditor shall also 
add to the original assessed value of each economic development 
district an amount equal to the original assessed value for the 
preceding year multiplied by the average percentage increase in 
the assessed valuation of all property included in the economic 
development district during the five years prior to 
certification of the district.  The amount to be subtracted from 
the original assessed value of the district as a result of 
previously taxable real property within the district becoming 
tax exempt, or a reduction in the geographic area of the 
district, shall be the amount of original assessed value 
initially attributed to the property becoming tax exempt or 
being removed from the district.  If the assessed value of 
property located within the tax increment financing district is 
reduced by reason of a court-ordered abatement, stipulation 
agreement, voluntary abatement made by the assessor or auditor 
or by order of the commissioner of revenue, the reduction shall 
be applied to the original assessed value of the district when 
the property upon which the abatement is made has not been 
improved since the date of certification of the district and to 
the captured assessed value of the district in each year 
thereafter when the abatement relates to improvements made after 
the date of certification.  The county auditor shall have the 
power to specify reasonable form and content of the request for 
certification of the authority and any modification thereof 
pursuant to section 273.74, subdivision 4. 
    Sec. 16.  Minnesota Statutes 1984, section 458.16, is 
amended by adding a subdivision to read: 
    Subd. 6.  Upon delegation by a municipality as provided in 
section 8, a port authority may exercise any of the delegated 
powers in connection with mined underground space development 
pursuant to sections 3 to 7. 
    Sec. 17.  Minnesota Statutes 1984, section 462.352, 
subdivision 5, is amended to read: 
    Subd. 5.  "Comprehensive municipal plan" means a 
compilation of policy statements, goals, standards, and maps for 
guiding the physical, social and economic development, both 
private and public, of the municipality and its environs, 
including air space and subsurface areas necessary for mined 
underground space development pursuant to sections 3 to 7, and 
may include, but is not limited to, the following:  statements 
of policies, goals, standards, a land use plan, a community 
facilities plan, a transportation plan, and recommendations for 
plan execution.  A comprehensive plan represents the planning 
agency's recommendations for the future development of the 
community.  
    Sec. 18.  Minnesota Statutes 1984, section 462.352, 
subdivision 7, is amended to read: 
    Subd. 7.  "Transportation plan" means a compilation of 
policy statements, goals, standards, maps and action programs 
for guiding the future development of the various modes of 
transportation of the municipality and its environs, including 
air space and subsurface areas necessary for mined underground 
space development pursuant to sections 3 to 7, such as streets 
and highways, mass transit, railroads, air transportation, 
trucking and water transportation, and includes a major 
thoroughfare plan.  
    Sec. 19.  Minnesota Statutes 1984, section 462.352, 
subdivision 9, is amended to read: 
    Subd. 9.  "Capital improvement program" means an itemized 
program setting forth the schedule and details of specific 
contemplated public improvements by fiscal year, including 
public improvements in or related to air space and subsurface 
areas necessary for mined underground space development pursuant 
to sections 3 to 7, together with their estimated cost, the 
justification for each improvement, the impact that such 
improvements will have on the current operating expense of the 
municipality, and such other information on capital improvements 
as may be pertinent.  
    Sec. 20.  Minnesota Statutes 1984, section 462.352, 
subdivision 10, is amended to read: 
    Subd. 10.  "Official map" means a map adopted in accordance 
with section 462.359 which may show existing and proposed future 
streets, roads, and highways of the municipality and county, the 
area needed for widening of existing streets, roads, and 
highways of the municipality and county, existing and proposed 
air space and subsurface areas necessary for mined underground 
space development pursuant to sections 3 to 7, and existing and 
future county state aid highways and state trunk highway 
rights-of-way.  An official map may also show the location of 
existing and future public land and facilities within the 
municipality.  In counties in the metropolitan area as defined 
in section 473.121, official maps may for a period of up to five 
years designate the boundaries of areas reserved for purposes of 
soil conservation, water supply conservation, flood control and 
surface water drainage and removal including appropriate 
regulations protecting such areas against encroachment by 
buildings, other physical structures or facilities. 
    Sec. 21.  Minnesota Statutes 1984, section 462.352, 
subdivision 15, is amended to read: 
    Subd. 15.  "Official controls" or "controls" means 
ordinances and regulations which control the physical 
development of a city, county or town or any part 
thereof including air space and subsurface areas necessary for 
mined underground space development pursuant to sections 3 to 7, 
or any detail thereof and implement the general objectives of 
the comprehensive plan.  Official controls may include 
ordinances establishing zoning, subdivision controls, site plan 
regulations, sanitary codes, building codes and official maps.  
    Sec. 22.  Minnesota Statutes 1984, section 462.352, is 
amended by adding a subdivision to read: 
    Subd. 17.  [PROPERTY RIGHTS.] The words "area," "interest 
in real property," "ground," "land," "lot," "parcel," 
"property," "real estate," "real property," "site," "territory," 
and "tract," and other terms describing real property shall 
include within their meaning, but not be limited to, air space 
and subsurface areas necessary for mined underground space 
development pursuant to sections 3 to 7. 
    Sec. 23.  Minnesota Statutes 1984, section 462.357, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY FOR ZONING.] For the purpose of 
promoting the public health, safety, morals and general welfare, 
a municipality may by ordinance regulate on the earth's surface, 
in the air space above the surface, and in subsurface areas, the 
location, height, width, bulk, type of foundation, number of 
stories, size of buildings and other structures, the percentage 
of lot which may be occupied, the size of yards and other open 
spaces, the density and distribution of population, the uses of 
buildings and structures for trade, industry, residence, 
recreation, public activities, or other purposes, and the uses 
of land for trade, industry, residence, recreation, agriculture, 
forestry, soil conservation, water supply conservation, 
conservation of shorelands, as defined in section 105.485, 
access to direct sunlight for solar energy systems as defined in 
section 116J.06, flood control or other purposes, and may 
establish standards and procedures regulating such uses.  No 
regulation may prohibit earth sheltered construction as defined 
in section 116J.06, subdivision 2, or manufactured homes built 
in conformance with sections 327.31 to 327.35 that comply with 
all other zoning ordinances promulgated pursuant to this 
section.  The regulations may divide the surface, above surface, 
and subsurface areas of the municipality into districts or zones 
of suitable numbers, shape and area.  The regulations shall be 
uniform for each class or kind of buildings, structures or land 
and for each class or kind of use throughout such district, but 
the regulations in one district may differ from those in other 
districts.  The ordinance embodying these regulations shall be 
known as the zoning ordinance and shall consist of text and 
maps.  A city may by ordinance extend the application of its 
zoning regulations to unincorporated territory located within 
two miles of its limits in any direction, but not in a county or 
town which has adopted zoning regulations; provided that where 
two or more noncontiguous municipalities have boundaries less 
than four miles apart, each is authorized to control the zoning 
of land on its side of a line equidistant between the two 
noncontiguous municipalities unless a town or county in the 
affected area has adopted zoning regulations.  Any city may 
thereafter enforce such regulations in the area to the same 
extent as if such property were situated within its corporate 
limits, until the county or town board adopts a comprehensive 
zoning regulation which includes the area. 
    Sec. 24.  Minnesota Statutes 1984, section 462.358, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [TERMS OF REGULATIONS.] The standards and 
requirements in the regulations may address without limitation:  
the size, location, grading, and improvement of lots, 
structures, public areas, streets, roads, trails, walkways, 
curbs and gutters, water supply, storm drainage, lighting, 
sewers, electricity, gas, and other utilities; the planning and 
design of sites; access to solar energy; and the protection and 
conservation of flood plains, shore lands, soils, water, 
vegetation, energy, air quality, and geologic and ecologic 
features.  The regulations shall require that subdivisions be 
consistent with the municipality's official map if one exists 
and its zoning ordinance, and may require consistency with other 
official controls and the comprehensive plan.  The regulations 
may prohibit certain classes or kinds of subdivisions in areas 
where prohibition is consistent with the comprehensive plan and 
the purposes of this section, particularly the preservation of 
agricultural lands.  The regulations may prohibit, restrict or 
control development for the purpose of protecting and assuring 
access to direct sunlight for solar energy systems.  The 
regulations may prohibit, restrict, or control surface, above 
surface, or subsurface development for the purpose of protecting 
subsurface areas for existing or potential mined underground 
space development pursuant to sections 3 to 7, and access 
thereto.  The regulations may prohibit the issuance of building 
permits for any tracts, lots, or parcels for which required 
subdivision approval has not been obtained.  The regulations may 
permit the municipality to condition its approval on the 
construction and installation of sewers, streets, electric, gas, 
drainage, and water facilities, and similar utilities and 
improvements or, in lieu thereof, on the receipt by the 
municipality of a cash deposit, certified check, irrevocable 
letter of credit, or bond in an amount and with surety and 
conditions sufficient to assure the municipality that the 
utilities and improvements will be constructed or installed 
according to the specifications of the municipality.  The 
regulations may permit the municipality to condition its 
approval on compliance with other requirements reasonably 
related to the provisions of the regulations and to execute 
development contracts embodying the terms and conditions of 
approval.  The municipality may enforce such agreements and 
conditions by appropriate legal and equitable remedies. 
    Sec. 25.  [465.77] [REGULATION OF DRILLING TO PROTECT MINED 
UNDERGROUND SPACE DEVELOPMENT.] 
    A home rule charter city or statutory city may regulate 
drilling for the purposes and in the manner provided in section 
8. 
    Sec. 26.  Minnesota Statutes 1984, section 472.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  A local redevelopment agency shall be a 
public body corporate and politic and shall have all the powers 
necessary or convenient to carry out the purposes of sections 
472.01 to 472.16; provided that such agencies shall not have the 
power to levy and collect taxes or special assessments, nor 
shall any agency exercise the power of eminent domain unless the 
governing body of the municipality or municipalities, in the 
case of a joint exercise of power, shall by resolution have 
expressly conferred such power on the agency.  A local 
redevelopment agency shall also have the following powers in 
addition to others granted in sections 472.01 to 472.16: 
    (1) To sue and be sued, to have a seal, which shall be 
judicially noticed, and to alter the same at pleasure; to have 
perpetual succession; and to make, and from time to time amend 
and repeal, rules and regulations not inconsistent with these 
sections; 
    (2) To employ an executive director, technical experts, and 
such officers, agents and employees, permanent and temporary, as 
it may require, and determine their qualifications, duties, and 
compensation; for such legal service as it may require, to call 
upon the chief law officer of the municipality or to employ its 
own counsel and legal staff; so far as practical, to use the 
services of local public bodies, in its area of operation, such 
local bodies, if requested, to make such services available; 
    (3) To delegate to one or more of its agents or employees 
such powers or duties as it may deem proper; 
    (4) To approve, upon proper application by a public 
instrumentality or facility or private applicant, a 
redevelopment project after first determining that the declared 
public purpose of sections 472.01 to 472.16 will be accomplished 
by the establishment of such project in the redevelopment area; 
    (5) To sell, transfer, convey, or otherwise dispose of real 
or personal property or any interest therein, and to execute 
such leases, deeds, conveyances, negotiable instruments, 
purchase agreements, and other contracts or instruments, and 
take such action as may be necessary or convenient to carry out 
the purposes of these sections; 
    (6) Within its area of operation to acquire real or 
personal property or any interest therein by gift, grant, 
purchase, exchange, lease, transfer, bequest, devise, or 
otherwise, and, when authorized as provided for herein, by the 
exercise of the power of eminent domain, in the manner provided 
by chapter 117, and any amendments thereof, to acquire real 
property which it may deem necessary for its purposes under 
these sections, after the adoption by it of a resolution 
declaring that the acquisition of the real property is necessary 
to eliminate one or more of the conditions found to exist in the 
resolution adopted pursuant to section 472.04, subdivision 1; 
    (7) To determine and designate redevelopment areas; 
    (8) To cooperate with industrial development corporations, 
state and federal agencies, and private persons or corporations 
in their efforts to promote the expansion of recreational, 
commercial, industrial, and manufacturing activity in a 
redevelopment area; 
    (9) To determine upon proper application by any public body 
or private applicant whether the declared public purpose of 
these sections has been accomplished or will be accomplished by 
the establishment of a redevelopment project in a redevelopment 
area; 
    (10) To conduct examinations and investigations to obtain 
information necessary to the determination and designation of a 
redevelopment area and the establishment of a redevelopment 
project therein; 
    (11) To cooperate with or act as agent for the federal 
government, the state, or any state public body or any agency or 
instrumentality thereof in carrying out the provisions of these 
sections or of any other related federal, state, or local 
legislation; 
    (12) To borrow money or other property and accept 
contributions, grants, gifts, services or other assistance from 
the federal or state government to accomplish the purposes of 
sections 472.01 to 472.16;  
    (13) To conduct mined underground space development 
pursuant to sections 3 to 7. 
    Sec. 27.  Minnesota Statutes 1984, section 472A.03, is 
amended to read: 
    472A.03 [AUTHORITY GRANTED.] 
    A municipality may after consultation with its planning 
agency or planning department and after public hearings, notice 
of which shall have been published in the official newspaper of 
the municipality, or if the municipality has no official 
newspaper, in a newspaper of general distribution within the 
municipality, designate development districts within the 
boundaries of the municipality.  The municipality shall also 
provide for relocation pursuant to section 472A.12 and consult 
with the advisory board created by section 472A.11 before making 
this designation.  Within these districts the municipality may 
adopt a development program consistent with which the 
municipality may acquire, construct, reconstruct, improve, 
alter, extend, operate, maintain, or promote developments aimed 
at improving the physical facilities, quality of life and 
quality of transportation.  The municipality may acquire land or 
easements through negotiation or through powers of eminent 
domain.  The municipal council may adopt ordinances regulating 
traffic in pedestrian skyway systems, public parking structures, 
and other facilities constructed within the development 
district.  The municipal council may pass ordinances regulating 
access to pedestrian skyway systems and the conditions under 
which such access is allowed.  The council may designate 
districts for mined underground space development under sections 
3 to 7. 
    Traffic regulations may include but shall not be limited to 
direction and speed of traffic, policing of pedestrianways, 
hours that pedestrianways are open to the public, kinds of 
service activities that will be allowed in arcades, parks and 
plazas, fares to be charged on the people movers, and rates to 
be charged in the parking structures.  The municipality shall 
have the power to require private developers to construct 
buildings so as to accommodate and support pedestrian systems 
which are part of the program for the development district.  
When the municipality requires the developer to construct 
columns, beams or girders with greater strength than required 
for normal building purposes, the municipality shall reimburse 
the developer for the added expense from development district 
funds.  The municipality shall have the authority to install 
special lighting systems, special street signs and street 
furniture, special landscaping of streets and public property; 
to install special snow removal systems; to acquire property for 
the district; to lease or sell air rights over public buildings 
and to spend public funds for constructing the foundations and 
columns in the public buildings strong enough to support the 
buildings to be constructed on air rights; to lease all or 
portions of basement, ground and second floors of the public 
buildings constructed in the district; to negotiate the sale or 
lease of property for private development if the development is 
consistent with the development program for the district.  
    Sec. 28.  Minnesota Statutes 1984, section 474.02, is 
amended by adding a subdivision to read: 
    Subd. 1g.  The term "project" shall also include any real 
properties used or useful in furtherance of the purposes and 
policies of sections 3 to 7. 
    Sec. 29.  Laws 1980, chapter 595, section 3, subdivision 1, 
is amended to read: 
    Subdivision 1.  Notwithstanding any contrary law or 
provision of the Minneapolis city charter, the city council may 
exercise the powers presently, or hereafter granted to a 
governmental agency or subdivision by Minnesota Statutes, 
Chapters 458 and 462 except the power to operate and maintain 
public housing as provided in Minnesota Statutes, Chapter 462.  
The city council shall not exercise the powers contained in 
Minnesota Statutes, Chapter 462 prior to the initial adoption of 
an ordinance provided for in section 2, subdivision 1, or this 
subdivision.  Notwithstanding any contrary law or provision of 
the Minneapolis city charter, the agency or the Minneapolis 
housing and redevelopment authority or the Minneapolis 
industrial development commission may after approval by the city 
council by ordinance exercise any of the powers presently or 
hereafter granted to a governmental subdivision by Minnesota 
Statutes, Chapters 458, 462, 472, 472A, and 474.  The city 
council or the agency or the Minneapolis housing and 
redevelopment authority or the Minneapolis industrial 
development commission may exercise the powers granted by this 
subdivision and any other development or redevelopment powers 
authorized by other laws, independently or in conjunction with 
each other as though all of the powers had been granted to a 
single entity, provided, however, that any project undertaken 
pursuant to authority granted by Minnesota Statutes, Chapter 
458, 462, 472, 472A, sections 3 to 7, or 474 is subject to all 
of the limitations contained within that chapter. 
    Sec. 30.  Minnesota Statutes 1984, section 16B.61, 
subdivision 3, is amended to read: 
     Subd. 3.  [SPECIAL REQUIREMENTS.] (a) [SPACE FOR COMMUTER 
VANS.] The code must require that any parking ramp or other 
parking facility constructed in accordance with the code include 
an appropriate number of spaces suitable for the parking of 
motor vehicles having a capacity of seven to 16 persons and 
which are principally used to provide prearranged commuter 
transportation of employees to or from their place of employment 
or to or from a transit stop authorized by a local transit 
authority.  
     (b) [SMOKE DETECTION DEVICES.] The code must require that 
all dwellings, lodging houses, apartment houses, and hotels as 
defined in section 299F.362 comply with the provisions of 
section 299F.362.  
     (c) [DOORS IN NURSING HOMES AND HOSPITALS.] The state 
building code may not require that each door entering a sleeping 
or patient's room from a corridor in a nursing home or hospital 
with an approved complete standard automatic fire extinguishing 
system be constructed or maintained as self-closing or 
automatically closing.  
    (d) A licensed day care center serving fewer than 30 
preschool age persons and which is located in a below ground 
space in a church building is exempt from the state building 
code requirement for a ground level exit when the center has 
more than two stairways to the ground level and its exit.  
    (e) [MINED UNDERGROUND SPACE.] Nothing in the state 
building codes shall prevent cities from adopting regulations 
governing the excavation, construction, reconstruction, 
alteration and repair of mined underground space pursuant to 
sections 3 to 7, or of associated facilities in the space once 
the space has been created, provided the intent of the building 
code to establish reasonable safeguards for health, safety, 
welfare, comfort, and security is maintained. 
    Approved May 23, 1985