Office of the Revisor of Statutes
Minnesota Session Laws - 1986, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1986
CHAPTER 400-S.F.No. 1725
An act relating to public administration; authorizing
home rule charter or statutory cities to establish
economic development districts; granting powers to
cities and authorities; amending Minnesota Statutes
1984, sections 116D.04, subdivision 1a; 117.521,
subdivision 3; 272.01, subdivision 2; 273.72; 273.73,
subdivisions 2 and 8; 273.86, subdivision 1; 355.11,
subdivision 5; 462C.02, subdivisions 6 and 9; 471.88,
subdivisions 1, 9, and 11; 474.02, subdivision 3; and
474.16, subdivision 2; Minnesota Statutes 1985
Supplement, section 273.75, subdivision 4; 353.01,
subdivision 2a; 395.08; 462C.12, subdivision 2; and
472B.04; proposing coding for new law in Minnesota
Statutes, chapter 458; and proposing coding for new
law as Minnesota Statutes, chapter 458C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1984, section 116D.04,
subdivision 1a, is amended to read:
Subd. 1a. For the purposes of sections 116D.01 to 116D.07,
the following terms have the meanings given to them in this
subdivision.
(a) "Natural resources" has the meaning given it in section
116B.02, subdivision 4.
(b) "Pollution, impairment or destruction" has the meaning
given it in section 116B.02, subdivision 5.
(c) "Environmental assessment worksheet" means a brief
document which is designed to set out the basic facts necessary
to determine whether an environmental impact statement is
required for a proposed action.
(d) "Governmental action" means activities, including
projects wholly or partially conducted, permitted, assisted,
financed, regulated or approved by units of government including
the federal government.
(e) "Governmental unit" means any state agency and any
general or special purpose unit of government in the state
including, but not limited to, watershed districts organized
under chapter 112, counties, towns, cities, port
authorities and, housing authorities, and economic development
authorities established under sections 13 to 33, but not
including courts, school districts and regional development
commissions other than the metropolitan council.
Sec. 2. Minnesota Statutes 1984, section 117.521,
subdivision 3, is amended to read:
Subd. 3. The provisions of subdivisions 1 and 2 shall not
apply to the acquisition of properties situated wholly or in
part within any district for development authorized under Laws
1971, Chapters 548 or 677; or Laws 1973, Chapters 196, 761, or
764; or Laws 1974, Chapter 485; or Minnesota Statutes, Chapters
462, or 458; or sections 13 to 33.
Sec. 3. Minnesota Statutes 1984, section 272.01,
subdivision 2, is amended to read:
Subd. 2. (a) When any real or personal property which for
any reason is exempt from ad valorem taxes, and taxes in lieu
thereof, is leased, loaned, or otherwise made available and used
by a private individual, association or corporation in
connection with a business conducted for profit, there shall be
imposed a tax, for the privilege of so using or possessing such
real or personal property, in the same amount and to the same
extent as though the lessee or user was the owner of such
property.
(b) The tax imposed by this subdivision shall not apply to
(1) property leased or used by way of a concession in or
relative to the use in whole or part of a public park, market,
fair grounds, port authority, economic development authority
established under sections 13 to 33, municipal auditorium,
airport owned by a city, town, county or group thereof but not
the metropolitan airports commission, municipal museum or
municipal stadium or (2) property constituting or used as a
public pedestrian ramp, concourse, passenger check-in area or
ticket sale counter, boarding area or luggage claim area in
connection with a public airport; provided that real estate
which is owned by a municipality in connection with the
operation of a public airport and which is leased or used for
agricultural purposes shall not be exempt.
(c) Taxes imposed by this subdivision shall be due and
payable as in the case of personal property taxes and such taxes
shall be assessed to such lessees or users of real or personal
property in the same manner as taxes assessed to owners of real
or personal property, except that such taxes shall not become a
lien against the property. When due, the taxes shall constitute
a debt due from the lessee or user to the state, township, city,
county and school district for which the taxes were assessed and
shall be collected in the same manner as personal property
taxes. If property subject to the tax imposed by this
subdivision is leased or used jointly by two or more persons,
each lessee or user shall be jointly and severally liable for
payment of the tax.
Sec. 4. Minnesota Statutes 1984, section 273.72, is
amended to read:
273.72 [STATEMENT OF PURPOSE.]
The statutes governing the use of tax increment financing
in Minnesota have evolved over a long period of time and exist
in several different special and general laws. These laws are
sometimes inconsistent and provide varying procedures which
render them difficult to administer. It is the intent of the
legislature, by enacting the Minnesota tax increment financing
act, to ratify and confirm the findings, declarations and
determinations made by the legislature in connection with
chapters 362A, 458, sections 13 to 33, 462, 472A and 474 and to
establish a uniform set of standards and procedures to be
followed when using this method of financing.
Sec. 5. Minnesota Statutes 1984, section 273.73,
subdivision 2, is amended to read:
Subd. 2. [AUTHORITY.] "Authority" means a rural
development financing authority created pursuant to chapter
362A, a housing and redevelopment authority created pursuant to
chapter 462; a port authority created pursuant to chapter
458; an economic development authority created pursuant to
sections 13 to 33; a redevelopment agency as defined by chapter
474; a municipality which is administering a development
district created pursuant to chapter 472A or any special law, a
municipality which undertakes a project pursuant to chapter 474;
or a municipality which exercises the powers of a port authority
pursuant to any general or special law.
Sec. 6. Minnesota Statutes 1984, section 273.73,
subdivision 8, is amended to read:
Subd. 8. [PROJECT.] "Project" means a project as defined
in section 362A.01; an industrial development district as
defined in section 458.191, subdivision 1; an economic
development district as defined in section 25, subdivision 1; a
project as defined in section 462.421, subdivision 14; a
development district as defined in chapter 472A or any special
law; or a project as defined in section 474.02, subdivisions 1,
1a or 1b.
Sec. 7. Minnesota Statutes 1985 Supplement, section
273.75, subdivision 4, is amended to read:
Subd. 4. [LIMITATION ON USE OF TAX INCREMENT.] All
revenues derived from tax increment shall be used in accordance
with the tax increment financing plan. The revenues shall be
used solely for the following purposes: (a) to pay the
principal of and interest on bonds issued to finance a project;
(b) by a rural development financing authority for the purposes
stated in section 362A.01, subdivision 2, by a port authority or
municipality exercising the powers of a port authority to
finance or otherwise pay the cost of redevelopment pursuant to
chapter 458, by an economic development authority to finance or
otherwise pay the cost of redevelopment pursuant to sections 13
to 33, by a housing and redevelopment authority or economic
development authority to finance or otherwise pay public
redevelopment costs pursuant to chapter 462, by a
municipality or economic development authority to finance or
otherwise pay the capital and administration costs of a
development district pursuant to chapter 472A, by a municipality
or redevelopment agency to finance or otherwise pay premiums for
insurance or other security guaranteeing the payment when due of
principal of and interest on the bonds pursuant to chapters
462C, 474, or both chapters, or to accumulate and maintain a
reserve securing the payment when due of the principal of and
interest on the bonds pursuant to chapters 462C, 474, or both
chapters, which revenues in the reserve shall not exceed,
subsequent to the fifth anniversary of the date of issue of the
first bond issue secured by the reserve, an amount equal to 20
percent of the aggregate principal amount of the outstanding and
nondefeased bonds secured by the reserve. Revenues derived from
tax increment may be used to finance the costs of an interest
reduction program operated pursuant to section 462.445,
subdivisions 10 to 13, or pursuant to other law granting
interest reduction authority and power by reference to those
subdivisions only under the following conditions: (a) tax
increments may not be collected for a program for a period in
excess of 12 years after the date of the first interest rate
reduction payment for the program, (b) tax increments may not be
used for an interest reduction program, if the proceeds of bonds
issued pursuant to section 273.77 after December 31, 1985, have
been or will be used to provide financial assistance to the
specific project which would receive the benefit of the interest
reduction program, and (c) not more than 50 percent of the
estimated tax increment derived from a project may be used to
finance an interest reduction program for owner-occupied
single-family dwellings unless a project is located either in an
area which would qualify as a redevelopment district or within a
city designated as an enterprise zone pursuant to section
273.1312, subdivision 4, clause (c)(3). These revenues shall
not be used to circumvent existing levy limit law. No revenues
derived from tax increment shall be used for the construction or
renovation of a municipally owned building used primarily and
regularly for conducting the business of the municipality; this
provision shall not prohibit the use of revenues derived from
tax increments for the construction or renovation of a parking
structure, a commons area used as a public park or a facility
used for social, recreational or conference purposes and not
primarily for conducting the business of the municipality.
Sec. 8. Minnesota Statutes 1984, section 273.86,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION.] A developer proposing to
construct improvements on property located within an industrial
development district as defined in section 458.191, subdivision
1; an economic development district as defined in section 25,
subdivision 1; a development district as defined in section
472A.02, subdivision 3, or any special law; or a redevelopment
project as defined in section 462.421, subdivision 14 may apply
to the governing body of the city or municipality in which the
property is located to obtain deferral of property tax on the
improved property, stating the nature and location of the
proposed improvement, its estimated cost, and the projected
length of construction time. If the governing body finds that
the proposed development is consistent with the requirements of
the above referred sections, it may approve the application. If
the application is approved by June 30, the tax exemption shall
be in effect for taxes paid the following year; if it is
approved later than June 30, the exemption shall be in effect
for taxes paid in the second subsequent taxable year.
Sec. 9. Minnesota Statutes 1985 Supplement, section
353.01, subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] The following persons are
included in the meaning of "public employee":
(a) Elected or appointed officers and employees of elected
officers.
(b) District court reporters.
(c) Officers and employees of the public employees
retirement association.
(d) Employees of the League of Minnesota Cities.
(e) Officers and employees of public hospitals, owned or
operated by or an integral part of, any governmental subdivision
or governmental subdivisions.
(f) Employees of a school district who receive separate
salaries for driving their own buses.
(g) Employees of the Association of Minnesota Counties.
(h) Employees of the Metropolitan Inter-County Association.
(i) Employees of the Minnesota Municipal Utilities
Association.
(j) Employees of the metropolitan airports commission if
employment initially commences on or after July 1, 1979.
(k) Employees of the Minneapolis employees retirement fund,
if employment initially commences on or after July 1, 1979.
(l) Employees of the Range Association of Municipalities
and Schools.
(m) Employees of the soil and water conservation districts.
(n) Employees of a county historical society.
(o) Employees of an economic development authority created
under sections 13 to 33.
Sec. 10. Minnesota Statutes 1984, section 355.11,
subdivision 5, is amended to read:
Subd. 5. "Employing unit" means any municipal housing and
redevelopment authorities organized pursuant to sections 462.415
to 462.705 and any soil and water conservation district
organized pursuant to chapter 40 or any port authority organized
pursuant to chapter 458, or any economic development authority
organized pursuant to sections 13 to 33, or any hospital
district organized or reorganized pursuant to sections 447.31 to
447.37.
Sec. 11. Minnesota Statutes 1985 Supplement, section
395.08, is amended to read:
395.08 [ECONOMIC AND AGRICULTURAL DEVELOPMENT.]
A county board may appropriate not more than
$25,000 $50,000 annually out of the general revenue fund of the
county to be paid to any incorporated development society or
organization of this state which, in the board's opinion, will
use the money for the best interests of the county in promoting,
advertising, improving, or developing the economic and
agricultural resources of the county.
Sec. 12. [458.101] [NO STATE BAILOUT OF PORT AUTHORITIES.]
State appropriations or credit of the state must not be
used to pay or guarantee the payment of the debt of a port
authority.
Sec. 13. [458C.01] [DEFINITIONS.]
Subdivision 1. [TERMS.] In sections 13 to 33, the terms
defined in this section have the meaning given them.
Subd. 2. [AUTHORITY.] "Authority" means an economic
development authority, unless specified otherwise.
Subd. 3. [CITY.] "City" means a home rule charter or
statutory city.
Subd. 4. [DEVELOPMENT.] "Development" includes
redevelopment, and developing includes redeveloping.
Subd. 5. [COST OF REDEVELOPMENT.] "Cost of redevelopment"
means, with respect to an economic development district project,
the cost of:
(a) acquiring property, whether by purchase, lease,
condemnation, or otherwise;
(b) demolishing or removing structures or other
improvements on acquired properties;
(c) correcting soil deficiencies necessary to develop or
use the property for an appropriate use as determined by the
authority;
(d) constructing or installing public improvements,
including streets, roads, and utilities;
(e) providing relocation benefits to the occupants of
acquired properties;
(f) planning, engineering, legal and other services
necessary to carry out the functions listed in clauses (a) to
(e); and
(g) the allocated administrative expenses of the authority
for the project.
Sec. 14. [458C.03] [ECONOMIC DEVELOPMENT AUTHORITY;
ESTABLISHMENT.]
A city may, by adopting an enabling resolution in
compliance with the procedural requirements of section 16,
establish an economic development authority that, subject to
section 15, has the powers contained in sections 13 to 33 and a
housing and redevelopment authority under chapter 462 or other
law, and a city under chapter 472A or other law. If the
economic development authority exercises the powers of a housing
and redevelopment authority contained in chapter 462 or other
law, the city shall exercise the powers relating to a housing
and redevelopment authority granted to a city by chapter 462 or
other law.
Sec. 15. [458C.04] [LIMIT OF POWERS.]
Subdivision 1. [RESOLUTION.] The enabling resolution may
impose the following limits upon the actions of the authority:
(1) that the authority must not exercise any specified
powers contained in sections 13 to 33, chapters 462 and 472A or
that the authority must not exercise any powers without the
prior approval of the city council;
(2) that, except when previously pledged by the authority,
the city council may, by resolution, require the authority to
transfer any portion of the reserves generated by activities of
the authority that the city council determines is not necessary
for the successful operation of the authority, to the debt
service fund of the city, to be used solely to reduce tax levies
for bonded indebtedness of the city;
(3) that the sale of all bonds or obligations issued by the
authority be approved by the city council before issuance;
(4) that the authority follow the budget process for city
departments as provided by the city and as implemented by the
city council and mayor;
(5) that all official actions of the authority must be
consistent with the adopted comprehensive plan of the city, and
any official controls implementing the comprehensive plan;
(6) that the authority submit all planned activities for
influencing the action of any other governmental agency,
subdivision, or body to the city council for approval;
(7) that the authority submit its administrative structure
and management practices to the city council for approval; and
(8) any other limitation or control established by the city
council by the enabling resolution.
Subd. 2. [MODIFICATION OF RESOLUTION.] The enabling
resolution may be modified at any time, subject to subdivision
5, and provided that any modification is made in accordance with
section 15.
Subd. 3. [REPORT ON RESOLUTION.] Without limiting the
right of the authority to petition the city council at any time,
each year, within 60 days of the anniversary date of the first
adoption of the enabling resolution, the authority shall submit
to the city council a report stating whether and how the
enabling resolution should be modified. Within 30 days of
receipt of the recommendation, the city council shall review the
enabling resolution, consider the recommendations of the
authority, and make any modification it considers appropriate.
Modifications must be made in accordance with the procedural
requirements of section 16.
Subd. 4. [COMPLIANCE.] The city council's determination
that the authority has complied with the limitations imposed
under this section is conclusive.
Subd. 5. [LIMITS; SECURITY.] Limits imposed under this
section must not be applied in a manner that impairs the
security of any bonds issued or contracts executed before the
limit is imposed. The city council must not modify any limit in
effect at the time any bonds or obligations are issued or
contracts executed to the detriment of the holder of the bonds
or obligations or any contracting party.
Sec. 16. [458C.05] [PROCEDURAL REQUIREMENT.]
Subdivision 1. [ENABLING RESOLUTION.] The creation of an
authority by a city must be by written resolution known as the
enabling resolution. Before adopting the enabling resolution,
the city council shall conduct a public hearing. Notice of the
time and place of hearing, a statement of the purpose of the
hearing, and a summary of the resolution must be published in a
newspaper of general circulation within the city once a week for
two consecutive weeks. The first publication must appear not
more than 30 days from the date of the public hearing.
Subd. 2. [MODIFICATIONS.] All modifications to the
enabling resolution must be by written resolution and must be
adopted after notice is given and a public hearing conducted as
required for the original adoption of the enabling resolution.
Sec. 17. [458C.06] [TRANSFER OF AUTHORITY.]
Subdivision 1. [ECONOMIC DEVELOPMENT, HOUSING,
REDEVELOPMENT POWERS.] The city may, by ordinance, divide any
economic development, housing, and redevelopment powers granted
under chapter 462 and this chapter between the economic
development authority and any other authority or commission
established under statute or city charter for economic
development, housing, or redevelopment.
Subd. 2. [PROJECT CONTROL, AUTHORITY, OPERATION.] The city
may, by resolution, transfer the control, authority, and
operation of any project as defined in section 273.73,
subdivision 8, or any other program or project authorized by
chapter 462 or 472A located within the city, from the
governmental agency or subdivision that established the project
to the economic development authority. The city council may
also require acceptance of control, authority, and operation of
the project by the economic development authority. The economic
development authority may exercise all of the powers that the
governmental unit establishing the project could exercise with
respect to the project.
When a project or program is transferred to the economic
development authority, the authority shall covenant and pledge
to perform the terms, conditions, and covenants of the bond
indenture or other agreements executed for the security of any
bonds issued by the governmental subdivision that initiated the
project or program. The economic development authority may
exercise all of the powers necessary to perform the terms,
conditions, and covenants of any indenture or other agreements
executed for the security of the bonds and shall become
obligated on the bonds when the project or program is
transferred as provided in this subdivision.
Subd. 3. [TRANSFER OF PERSONNEL.] Notwithstanding any
other law or charter provision to the contrary, the city council
may, by resolution, place any employees of the housing and
redevelopment authority under the direction, supervision, or
control of the economic development authority. The placement of
any employees under the direction, supervision, or control of
the economic development authority does not affect the rights of
any employees of the housing and redevelopment authority,
including any rights existing under a collective bargaining
agreement or fringe benefit plan. The employees shall become
employees of the economic development authority.
Sec. 18. [458C.07] [ECONOMIC DEVELOPMENT AUTHORITY.]
An economic development authority is a public body
corporate and politic and a political subdivision of the state
with the right to sue and be sued in its own name. An authority
carries out an essential governmental function when it exercises
its power, but the authority is not immune from liability
because of this.
Sec. 19. [458C.08] [COMMISSIONERS; APPOINTMENT, TERMS,
VACANCIES, PAY, REMOVAL.]
Subdivision 1. [COMMISSIONERS.] Except as provided in
subdivision 2, clause (d), an economic development authority
shall consist of either three, five, or seven commissioners who
shall be appointed after the enabling resolution provided for in
section 16 becomes effective. The resolution must indicate the
number of commissioners constituting the authority.
Subd. 2. [APPOINTMENT, TERMS; VACANCIES.] (a) Three-member
authority: the commissioners constituting a three-member
authority, one of whom must be a member of the city council,
shall be appointed by the mayor with the approval of the city
council. Those initially appointed shall be appointed for terms
of two, four, and six years, respectively. Thereafter all
commissioners shall be appointed for six-year terms.
(b) Five-member authority: the commissioners constituting
a five-member authority, two of whom must be members of the city
council, shall be appointed by the mayor with the approval of
the city council. Those initially appointed shall be appointed
for terms of two, three, four, and five years respectively and
one member for six years. Thereafter all commissioners shall be
appointed for six-year terms.
(c) Seven-member authority: the commissioners constituting
a seven-member authority, two of whom must be members of the
city council, shall be appointed by the mayor with the approval
of the city council. Those initially appointed shall be
appointed for terms of one, two, three, four, and five years
respectively and two members for six years. Thereafter all
commissioners shall be appointed for six-year terms.
(d) The enabling resolution may provide that the members of
the city council shall serve as the commissioners.
(e) The enabling resolution may provide for the appointment
of members of the city council in excess of the number required
in clauses (a), (b), and (c).
(f) A vacancy is created in the membership of an authority
when a city council member of the authority ends council
membership. A vacancy for this or another reason must be filled
for the balance of the unexpired term, in the manner in which
the original appointment was made. The city council may set the
term of the commissioners who are members of the city council to
coincide with their term of office as members of the city
council.
Subd. 3. [INCREASE IN COMMISSION MEMBERS.] An authority
may be increased from three to five or seven members, or from
five to seven members by a resolution adopted by the city
council following the procedure provided for modifying the
enabling resolution in section 16.
Subd. 4. [COMPENSATION AND REIMBURSEMENT.] A commissioner,
including the president, shall be paid for attending each
regular or special meeting of the authority in an amount to be
determined by the city council. In addition to receiving pay
for meetings, the commissioners 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.
Subd. 5. [REMOVAL FOR CAUSE.] A commissioner may be
removed by the city council for inefficiency, neglect of duty,
or misconduct in office. A commissioner shall be removed only
after a hearing. A copy of the charges must be given to the
commissioner at least ten days before the hearing. The
commissioner must be given an opportunity to be heard in person
or by counsel at the hearing. When written charges have been
submitted against a commissioner, the city council may
temporarily suspend the commissioner. If the city council finds
that those charges have not been substantiated, the commissioner
shall be immediately reinstated. If a commissioner is removed,
a record of the proceedings, together with the charges and
findings, shall be filed in the office of the city clerk.
Sec. 20. [458C.09] [OFFICERS; DUTIES; ORGANIZATIONAL
MATTERS.]
Subdivision 1. [BYLAWS, RULES, SEAL.] An authority may
adopt bylaws and rules of procedure and shall adopt an official
seal.
Subd. 2. [OFFICERS.] An authority shall elect a president,
a vice president, a treasurer, a secretary, and an assistant
treasurer. The authority shall elect the president, treasurer,
and secretary annually. A commissioner must not serve as
president and vice president at the same time. The other
offices may be held by the same commissioner. The offices of
secretary and assistant treasurer need not be held by a
commissioner.
Subd. 3. [DUTIES AND POWERS.] The officers have the usual
duties and powers of their offices. They may be given other
duties and powers by the authority.
Subd. 4. [TREASURER'S DUTIES.] The treasurer:
(1) shall receive and is responsible for authority money;
(2) is responsible for the acts of the assistant treasurer;
(3) shall disburse authority money by check only;
(4) shall keep an account of the source of all receipts,
and the nature, purpose, and authority of all disbursements; and
(5) shall file the authority's detailed financial statement
with its secretary at least once a year at times set by the
authority.
Subd. 5. [ASSISTANT TREASURER.] The assistant treasurer
has the powers and duties of the treasurer if the treasurer is
absent or disabled.
Subd. 6. [TREASURER'S BOND.] 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 the secretary. The bond must be for
twice the amount of money probably on hand at any one time, as
determined at least annually by the authority. However, the
bond must not exceed $300,000.
Subd. 7. [PUBLIC MONEY.] Authority money is public money.
Subd. 8. [CHECKS.] An authority check must be signed by
the treasurer and 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 that the check is issued for.
Subd. 9. [FINANCIAL STATEMENT.] The authority's detailed
financial statement must show all receipts and disbursements,
their nature, the money on hand, the purposes to which the money
on hand is to be applied, the authority's credits and assets,
and its outstanding liabilities in a form required for the
city's financial statements. The authority shall examine the
statement together with the treasurer's vouchers. If the
authority finds that the statement and vouchers are correct, it
shall approve them by resolution and enter the resolution in its
records.
Sec. 21. [458C.10] [EMPLOYEES; SERVICES; SUPPLIES.]
Subdivision 1. [EMPLOYEES.] An economic development
authority may employ an executive director, a chief engineer,
other technical experts and agents, and other employees as it
may require, and determine their duties, qualifications, and
compensation.
Subd. 2. [CONTRACT FOR SERVICES.] The authority may
contract for the services of consultants, agents, public
accountants, and other persons needed to perform its duties and
exercise its powers.
Subd. 3. [LEGAL SERVICES.] The authority may use the
services of the city attorney or hire a general counsel for its
legal needs. The city attorney or general counsel, as
determined by the authority, is its chief legal advisor.
Subd. 4. [SUPPLIES.] The authority may purchase the
supplies and materials it needs to carry out sections 13 to 33.
Subd. 5. [CITY PURCHASING.] An authority may use the
facilities of its city's purchasing department in connection
with construction work and to purchase equipment, supplies, or
materials.
Subd. 6. [CITY FACILITIES, SERVICES.] A city may furnish
offices, structures and space, and stenographic, clerical,
engineering, or other assistance to its authority.
Subd. 7. [DELEGATION POWER.] The authority may delegate to
one or more of its agents or employees powers or duties as it
may deem proper.
Sec. 22. [458C.11] [CONFLICT OF INTEREST.]
Except as authorized in section 471.88 a commissioner,
officer, or employee of an authority must not acquire any
financial interest, direct or indirect, in any project or in any
property included or planned to be included in any project, nor
shall the person have any financial interest, direct or
indirect, in any contract or proposed contract for materials or
service to be furnished or used in connection with any project.
Sec. 23. [458C.12] [DEPOSITORIES; DEFAULT; COLLATERAL.]
Subdivision 1. [NAMED; BOND.] Every two years an 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 bond must be at
least equal to the maximum sums expected to be deposited at any
one time.
Subd. 2. [ONE BANK ACCOUNT.] An authority may deposit all
its money from any source in one bank account.
Subd. 3. [DEFAULT; COLLATERAL.] 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 other act or default of the depository. However,
an authority may accept assignments of collateral from its
depository to secure deposits just as assignments of collateral
are permitted by law to secure deposits of the authority's city.
Sec. 24. [458C.13] [OBLIGATIONS.]
Subdivision 1. [TAXES AND ASSESSMENTS PROHIBITED.] An
authority must not levy a tax or special assessment, except as
otherwise provided in sections 13 to 33, 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.
Subd. 2. [BUDGET TO CITY.] Annually, at a time fixed by
charter, resolution, or ordinance of the city, an authority
shall send its budget to its city's council. The budget must
include a detailed written estimate of the amount of money that
the authority expects to need from the city to do authority
business during the next fiscal year. The needed amount is what
is needed in excess of any expected receipts from other sources.
Subd. 3. [FISCAL YEAR.] The fiscal year of the authority
must be the same as the fiscal year of its city.
Subd. 4. [REPORT TO CITY.] Annually, at a time and in a
form fixed by the city council, the authority shall make a
written report to the council giving a detailed account of its
activities and of its receipts and expenditures during the
preceding calendar year, together with additional matters and
recommendations it deems advisable for the economic development
of the city.
Subd. 5. [AUDITS.] 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 that established the authority. The financial
statements must permit comparison and reconciliation with the
city's accounts and financial reports. The report must be filed
with the state auditor by June 30 of each year. The auditor
shall review the report and may accept it or, in the public
interest, audit the books of the authority.
Subd. 6. [COMPLIANCE EXAMINATIONS.] At the request of the
city or upon the auditor's initiative, the state auditor may
make a legal compliance examination of the authority for that
city. Each authority examined must pay the total cost of the
examination, including the salaries paid to the examiners while
actually engaged in making the examination. The state auditor
may bill monthly or at the completion of the audit. All
collections received must be deposited in the revolving fund of
the state auditor.
Sec. 25. [458C.14] [ECONOMIC DEVELOPMENT DISTRICTS;
SCHEDULE OF POWERS.]
Subdivision 1. [ESTABLISHMENT.] An economic development
authority may create and define the boundaries of economic
development districts at any place or places within the city if
the district satisfies the requirements of section 273.73,
subdivision 10, except that the district boundaries must be
contiguous, and may use the powers granted in sections 13 to 33
to carry out its purposes. First the authority must hold a
public hearing on the matter. 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. Also, the
authority shall find that an economic development district is
proper and desirable to establish and develop within the city.
Subd. 2. [ACQUIRE PROPERTY.] The economic development
authority may acquire by lease, purchase, gift, devise, or
condemnation proceedings the needed right, title, and interest
in property to create economic development districts. It shall
pay for the property out of money it receives under sections 13
to 33. It may hold and dispose of the property subject to the
limits and conditions in sections 13 to 33. 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 13 to 33. 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 by its political subdivisions. The exemption
applies only while the authority holds property for its own
purpose. The exemption is subject to the provisions of section
272.02, subdivision 5. When property is sold it begins to be
taxed again.
Subd. 2a. [OPTIONS.] The economic development authority
may sign options to purchase, sell, or lease property.
Subd. 3. [EMINENT DOMAIN.] The economic development
authority may use eminent domain under chapter 117, or under its
city's charter to acquire property it is authorized to acquire
by condemnation. The authority may acquire in this way property
acquired by its owner by eminent domain or property already
devoted to a public use only if its city's council approves.
The authority may possess property to be condemned after it
files a petition in condemnation proceedings describing the
property. The authority may abandon the condemnation before
taking possession.
Subd. 4. [CONTRACTS.] The economic development authority
may make contracts for the purpose of economic development
within the powers given it in sections 13 to 33. 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 doing its duties. The authority may
contract to purchase and sell real and personal property.
However, an obligation or expense must not be incurred except
when existing appropriations together with the reasonable
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.
Subd. 4a. [LIMITED PARTNER.] The economic development
authority may be a limited partner in a partnership whose
purpose is consistent with the authority's purpose.
Subd. 5. [RIGHTS; EASEMENTS.] The economic development
authority may acquire rights or an easement for a term of years
or perpetually for development of an economic development
district.
Subd. 6. [SUPPLIES; MATERIALS.] The economic development
authority may buy the supplies and materials it needs to carry
out this section.
Subd. 7. [RECEIVE PUBLIC PROPERTY.] The economic
development authority may accept land, money, or other
assistance, whether by gift, loan or otherwise, in any form from
the federal or state government, or an agency of either, or a
local subdivision of state government to carry out sections 13
to 33 and to acquire and develop an economic development
district and its facilities under this section.
Subd. 8. [DEVELOPMENT DISTRICT AUTHORITY.] The economic
development authority may sell or lease land held by it for
economic development in economic development districts. The
authority may acquire, sell, or lease single or multiple tracts
of land regardless of size, to be developed as a part of the
economic development of the district under sections 13 to 33.
Subd. 9. [FOREIGN TRADE ZONE.] The economic development
authority may apply to the board defined in United States Code,
title 19, section 81a, for the right to use the powers provided
in United States Code, title 19, sections 81a to 81u. If the
right is granted, the authority may use the powers. One
authority may apply with another authority.
Subd. 10. [RELATION TO CHAPTER 474.] The economic
development authority may exercise powers and duties of a
redevelopment agency under chapter 474, for a purpose in
sections 13 to 33 or 462.411 to 462.705. The authority may also
use the powers and duties in sections 13 to 33 and 462.411 to
462.705 for a purpose in chapter 474.
Subd. 11. [PUBLIC FACILITIES.] The authority may operate
and maintain a public parking facility or other public facility
to promote development in an economic development district.
Sec. 26. [458C.15] [GENERAL OBLIGATION BONDS.]
Subdivision 1. [AUTHORITY; PROCEDURE.] An economic
development authority may issue general obligation bonds in the
principal amount authorized by two-thirds majority vote of its
city's council. The bonds may be issued in anticipation of
income from any source. The bonds may be issued: (1) to secure
funds needed by the authority to pay for acquired property or
(2) for other purposes in sections 13 to 33. The bonds must be
in the amount and form and bear interest at the rate set by the
city council. The authority shall sell the bonds to the highest
bidder. The authority shall publish notice of the time and the
place for receiving bids, once at least two weeks before the bid
deadline. Sections 13 to 33 govern issuance of the bonds. When
those sections are silent, chapter 475 governs. The authority
when issuing the bonds is a municipal corporation under chapter
475, and issuance of the bonds is subject to the provisions of
chapter 475.
Subd. 2. [DETAIL; MATURITY.] The authority with the
consent of its city's council shall set the date, denominations,
place of payment, form, and details of the bonds. The bonds
must mature serially. The first installment is due in not more
than three years and the last in not more than 20 years from the
date of issuance.
Subd. 3. [SIGNATURES; COUPONS; LIABILITY.] The bonds must
be signed by the president of the authority, be attested by its
secretary, and be countersigned by its treasurer; the signatures
may be facsimile signatures. The interest coupons if any, must
be attached to the bonds. The coupons must be executed and
authenticated by the printed, engrossed, or lithographed
facsimile signature of the authority's president and secretary.
The bonds do not impose any personal liability on a member of
the authority.
Subd. 4. [PLEDGE.] The bonds must be secured by the pledge
of the full faith, credit, and resources of the issuing
authority's city. The authority may pledge the full faith,
credit, and resources of the city only if the city specifically
authorizes the authority to do so. The city council must first
decide whether the issuance of the bonds by the authority is
proper in each case and if so, what amount of bonds to issue.
The city council shall give specific consent in an ordinance to
the pledge of the city's full faith, credit, and resources. The
authority shall pay the principal amount of the bonds and the
interest on it from taxes levied under this section to make the
payment or from authority income from any source.
Subd. 5. [TAX LEVY.] An authority that issues bonds under
this section, shall, before issuing them, levy a tax for each
year on the taxable property in the authority's city. The tax
must be for at least five percent more than the amount required
to pay the principal and interest on the bonds as the principal
and interest mature. The tax must be levied annually until the
principal and interest are paid in full. After the bonds have
been delivered to the purchasers, the tax must not be repealed
until the debt is paid. After the bonds are issued, the
authority need not take any more action to authorize extending,
assessing, and collecting the tax. The authority's secretary
shall immediately send a certified copy of the levy to the
county auditor. The secretary shall send with the copy full
information on the bonds for which the tax is levied. The
county auditor shall extend and assess the levied tax annually
until the principal and interest are paid in full. The
authority shall transfer the surplus from the excess levy in
this section to a sinking fund after the principal and interest
for which the tax was levied and collected is paid. The
authority may direct its secretary to send a certificate to the
county auditor before October 15 in a year. The certificate
must state how much available income including the amount in the
sinking fund the authority will use to pay principal or interest
or both on each specified issue of the authority's bonds. The
auditor shall then reduce the bond levy for that year by that
amount. The authority shall then set aside the certified amount
and may not use it for any purpose except to pay the principal
and interest on the bonds. The taxes in this section shall be
collected and sent to the authority by the county treasurer
under the law on collection of other taxes. The taxes must be
used only to pay the bonds when due.
Subd. 6. [AUTHORIZED SECURITIES.] Bonds legally issued
under this chapter are authorized securities under section
50.14. A savings bank, trust company, or insurance company may
invest in them. A public or municipal corporation may invest
its sinking funds in them. The bonds may be pledged by a bank
or trust company as security for the deposit of public money in
place of a surety bond.
The authority's bonds are instrumentalities of a public
governmental agency.
Sec. 27. [458C.16] [REVENUE BONDS; PLEDGE; COVENANTS.]
Subdivision 1. [AUTHORITY.] An economic development
authority may decide by resolution to issue its revenue bonds
either at one time or in series from time to time. The revenue
bonds may be issued to provide money to pay to acquire land
needed to operate the authority, to purchase or construct
facilities, to purchase, construct, install, or furnish capital
equipment to operate a facility for economic development of any
kind within the city, or to pay to extend, enlarge, or improve a
project under its control. The issued bonds may include the
amount the authority considers necessary to establish an initial
reserve to pay principal and interest on the bonds. The
authority shall state in a resolution how the bonds and their
attached interest coupons are to be executed.
Subd. 2. [FORM.] The bonds of each series issued by the
authority under this section shall bear interest at a rate or
rates, shall mature at the time or times within 20 years from
the date of issuance and shall be in the form, whether payable
to bearer, registrable as to principal, or fully registrable, as
may be determined by the authority. Section 26, subdivision 6,
applies to all bonds issued under this section, and the bonds
and their coupons, if any, when payable to bearer, shall be
negotiable instruments.
Subd. 3. [SALE.] The sale of revenue bonds issued by the
authority shall be at public or private sale. The bonds may be
sold in the manner and for the price that the authority
determines to be for the best interest of the authority. The
bonds may be made callable, and if so issued, may be refunded.
Subd. 4. [AGREEMENTS.] The authority may by resolution
make an agreement or covenant with the bondholders or their
trustee. The authority must first decide that the agreement or
covenant is needed or desirable to do what the authority may do
under this section and to assure that the revenue bonds are
marketable and promptly paid.
Subd. 5. [REVENUE PLEDGE.] In issuing general obligation
or revenue bonds, the authority may secure the payment of the
principal and the interest on the bonds by 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 put enough 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 is current
expense under this subdivision based on what is normal and
reasonable under accepted accounting principles. Revenues
pledged by the authority must not be used or pledged for any
other authority purpose or to pay any other bonds issued under
this section or under section 26, unless the other use or pledge
is specifically authorized in the bond-authorizing resolutions.
Subd. 6. [NOT CITY DEBT.] Revenue bonds issued under this
section are not a debt of the authority's city nor a pledge of
that city's full faith and credit. The bonds are payable only
from project revenue as described in this section. A revenue
bond must contain on its face a statement to the effect that the
economic development authority and its named city do not have to
pay the bond or the interest on it except from revenue and that
the faith, credit, and taxing power of the city are not pledged
to pay the principal of or the interest on the bond.
Subd. 7. [NOT APPLICABLE.] Sections 474.01, subdivisions
7a, 7b, and 8 and 474.02, subdivision 1d, do not apply to
revenue bonds issued under this section and chapter 474 if the
interest on the revenue bonds is subject to both state and
federal income tax or if the revenue bond proceeds are not
loaned by the authority to a private person.
Subd. 8. [TAX INCREMENT BONDS.] Obligations secured or
payable from tax increment revenues and issued pursuant to this
section or section 26 are subject to the provisions of section
273.77.
Sec. 28. [458C.17] [SECTIONS THAT APPLY IF FEDERAL LIMIT
APPLIES.]
Sections 474.16 to 474.23 apply to obligations issued under
sections 13 to 33 that are limited by a federal limitation act
defined in section 474.16, subdivision 5.
Sec. 29. [458C.18] [ADDITIONAL POWERS.]
Subdivision 1. [AS AGENT.] An economic development
authority may cooperate with or act as agent for the federal or
the state government, or a state public body, or an agency or
instrumentality of a government or a public body to carry out
sections 13 to 33 or any other related federal, state or local
law in the area of economic development district improvement.
Subd. 2. [STUDIES, ANALYSIS, RESEARCH.] An authority may
study and analyze economic development needs in the city, and
ways to meet the needs. An authority may study the desirable
patterns for land use for economic development and community
growth and other factors affecting local economic development in
the city and make the result of the studies available to the
public and to industry in general. An authority may engage in
research and give out information on economic development within
the city.
Subd. 3. [PUBLIC RELATIONS.] To further an authorized
purpose an authority may (1) join an official, industrial,
commercial, or trade association, or another organization
concerned with the purpose, (2) have a reception of officials
who may contribute to advancing the city and its economic
development, and (3) carry out other public relations activities
to promote the city and its economic development. Activities
under this subdivision have a public purpose.
Subd. 4. [ACCEPT PUBLIC LAND.] An 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 an economic development district, to carry
out the purposes of sections 13 to 33.
Subd. 5. [ECONOMIC DEVELOPMENT.] An authority may carry
out the law on economic development districts to develop and
improve the lands in an economic development district to make it
suitable and available for economic development uses and
purposes. An authority may fill, grade, and protect the
property and do anything necessary and expedient, after
acquiring the property, to make it suitable and attractive as a
tract for economic development. An authority may lease some or
all of its lands or property and may set up local improvement
districts in all or part of an economic development district.
In general, with respect to an economic development
district, an authority may use all the powers given an economic
development authority by law.
Subd. 6. [AS BORROWER.] An authority after authorizing
bonds under section 26 or 27 may borrow to provide money
immediately required for the bond purpose. The loans must 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 or
to bearer, 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 commissioner
of the authority or from any corporation, association, or other
institution of which an authority commissioner is a stockholder
or officer.
Subd. 7. [AS LENDER.] The proceeds of obligations issued
by an authority under section 27 and temporary loans obtained
under this section may be used to make or purchase loans for
economic development facilities that the authority believes will
require financing. To make or purchase the loans, the authority
may enter into loan and related agreements, both before and
after issuing the obligations, with persons, firms, public or
private corporations, federal or state agencies, and
governmental units under terms and conditions the authority
considers appropriate. A governmental unit in the state may
apply, contract for, and receive the loans. Chapter 475 does
not apply to the loans.
Subd. 8. [MINED SPACE DEVELOPMENT.] Upon delegation by a
municipality as provided in section 472B.08, an authority may
exercise any of the delegated powers in connection with mined
underground space development under sections 472B.03 to 472B.07.
Subd. 9. [CITY FACILITIES, SERVICES.] An authority city
may furnish offices, structures, and space, stenographic,
clerical, engineering, or other assistance to its authority.
Sec. 30. [458C.19] [SALE OF PROPERTY.]
Subdivision 1. [POWER.] An economic development authority
may sell and convey property owned by it within the city or an
economic development district. First, the authority must decide
that the sale and conveyance are in the best interests of the
city or district and its people, and that the transaction
furthers its general plan of economic development. This section
is not limited by other law on powers of economic development
authorities.
Subd. 2. [NOTICE; HEARING.] An authority shall hold a
hearing on the sale. At the hearing a taxpayer may testify for
or against the sale. At least ten, but not more than 20, days
before the hearing the authority shall publish notice of the
hearing on the proposed sale in a newspaper. The newspaper must
be published and have general circulation in the authority's
county and city. The notice must describe the property to be
sold and state the time and place of the hearing. The notice
must also state that the public may see the terms and conditions
of the sale at the authority's office and that at the hearing
the authority will meet to decide if the sale is advisable.
Subd. 3. [DECISION; APPEAL.] The authority shall make its
findings and decision on whether the sale is advisable and enter
its decision on its records within 30 days of the hearing. A
taxpayer may appeal the decision. The appeal is made by filing
a notice of appeal with the district court in the city or
economic development district's county and serving the notice on
the secretary of the authority, within 20 days after the
decision is entered. The only ground for appeal is that the
action of the authority was arbitrary, capricious, or contrary
to law.
Subd. 4. [TERMS.] The terms and conditions of sale of the
property must include the use that the bidder will be allowed to
make of it. The authority may require the purchaser to file
security to assure that the property will be given that use. In
deciding the sale terms and conditions the authority may
consider the nature of the proposed use and the relation of the
use to the improvement of the authority's city and the business
and the facilities of the authority in general. The sale must
be made on the authority's terms and conditions. The authority
may publish an advertisement for bids on the property at the
same time and in the same manner as the notice of hearing
required in this section. The authority may award the sale to
the bid considered by it to be most favorable considering the
price and the specified intended use. The authority may also
sell the property at private sale at a negotiated price if after
its hearing the authority considers that sale to be in the
public interest and to further the aims and purposes of sections
13 to 33.
Subd. 5. [ONE-YEAR DEADLINE.] The purchaser shall, within
one year from the date of purchase, devote the property to its
intended use, or shall begin work on the improvements to the
property to devote it to that use. If the purchaser fails to do
so, the authority may cancel the sale and title to the property
shall return to it. The authority may extend the time to comply
with a condition if the purchaser has good cause. The terms of
sale may contain other provisions that the authority considers
necessary and proper to protect the public interest. A
purchaser must not transfer title to the property within one
year of purchase without the consent of the authority.
Subd. 6. [COVENANT RUNNING WITH THE LAND.] A sale made
under this section must incorporate in the deed as a covenant
running with the land the conditions of sections 13 to 33
relating to the use of the land. If the covenant is violated
the authority may declare a breach of the covenant and seek a
judicial decree from the district court declaring a forfeiture
and a cancellation of the deed.
Subd. 7. [PLANS; SPECIFICATIONS.] A conveyance must not be
made until the purchaser gives the authority plans and
specifications to develop the property sold. The authority must
approve the plans and specifications in writing. The
preparation of final plans and specifications before the hearing
on the sale is not required by this subdivision but the
authority may make that requirement.
Sec. 31. [458C.20] [ADVANCES BY AUTHORITY.]
An authority may advance its general fund money or its
credit, or both, without interest, for the objects and purposes
of sections 13 to 33. The advances must be repaid from the sale
or lease, or both, of developed or redeveloped lands. If the
money advanced for the development or redevelopment was obtained
from the sale of the authority's general obligation bonds, then
the advances must have not less than the average annual interest
rate that is on the authority's general obligation bonds that
are outstanding at the time the advances are made. The
authority may advance repaid money for more objects and purposes
of sections 13 to 33 subject to repayment in the same manner.
The authority must still use rentals of lands acquired with
advanced money to collect and maintain reserves to secure the
payment of principal and interest on revenue bonds issued to
finance economic development facilities, if the rentals have
been pledged for that purpose under section 27. Advances made
to acquire lands and to construct facilities for recreation
purposes if authorized by law need not be reimbursed under this
section. Sections 13 to 33 do not exempt lands leased from the
authority to a private person, or entity from assessments or
taxes against the leased property while the lessee is liable for
the assessments or taxes under the lease.
Sec. 32. [458C.22] [CITY MAY LEVY TAXES FOR ECONOMIC
DEVELOPMENT AUTHORITY.]
Subdivision 1. [CITY TAX LEVY.] A city may, at the request
of the authority, levy a tax in any year for the benefit of the
authority. The tax must be for not more than .75 mill times the
assessed valuation of taxable property in the city. The tax may
be levied beyond levy limits in law. The amount levied must be
paid by the city treasurer to the treasurer of the authority, to
be spent by the authority.
Subd. 2. [REVERSE REFERENDUM.] A city may increase its
levy for economic development authority purposes under
subdivision 1 in the following way. Its city council must first
pass a resolution stating the proposed amount of levy increase.
The city must then publish the resolution together with a notice
of public hearing on the resolution for two successive weeks in
its official newspaper or if none exists in a newspaper of
general circulation in the city. The hearing must be held two
to four weeks after the first publication. After the hearing,
the city council may decide to take no action or may adopt a
resolution authorizing the proposed increase or a lesser
increase. A resolution authorizing an increase must be
published in the city's official newspaper or if none exists in
a newspaper of general circulation in the city. The resolution
is not effective if a petition requesting a referendum on the
resolution is filed with the city clerk within 30 days of
publication of the resolution. The petition must be signed by
voters equaling five percent of the votes cast in the city in
the last general election. The election must be held pursuant
to the procedure specified in section 275.58.
Sec. 33. [458C.23] [SPECIAL LAW; OPTIONAL USE.]
A city that has established a port authority by special law
or that has been granted the power to establish a port authority
by special law, or a city whose city council has been authorized
to exercise the powers of a port authority by special law may
elect to use the powers granted in sections 13 to 33. If the
election is made, the powers and duties set forth in sections 13
to 33 supersede the special law and the special law must not be
used anymore. The use of powers under sections 13 to 33 by a
city described in this section does not impair the security of
any obligations issued or contracts or agreements executed under
the special law. Control, authority, and operation of any
project may be transferred to the authority in the manner
provided in section 17.
Sec. 34. [LEGISLATIVE FINDINGS.]
The statement of policy and the findings of the legislature
in enacting Laws 1957, chapter 812, are confirmed and apply
equally to the exercise of powers by economic development
authorities and statutory or home rule charter cities pursuant
to sections 13 to 33.
Sec. 35. Minnesota Statutes 1984, section 462C.02,
subdivision 6, is amended to read:
Subd. 6. "City" means any statutory or home rule charter
city, or any public body which (a) is the housing and
redevelopment authority in and for a city, or the port authority
of a city, or an economic development authority of a city
established under sections 13 to 33, and (b) is authorized by
ordinance to exercise, on behalf of a city, the powers conferred
by sections 462C.01 to 462C.08.
Sec. 36. Minnesota Statutes 1984, section 462C.02,
subdivision 9, is amended to read:
Subd. 9. "Targeted area" means
(a) a development district established pursuant to section
472A.03,
(b) a development district established pursuant to Laws
1971, Chapter 677 as amended,
(c) a redevelopment project established pursuant to section
462.521,
(d) an industrial development district established pursuant
to section 458.191,
(e) a census tract in which 70 percent or more of the
families have income which is 80 percent or less of the
statewide median family income as estimated by the United States
department of housing and urban development, or
(f) an area of chronic economic distress designated by the
Minnesota housing finance agency, or
(g) an economic development district established pursuant
to section 25.
Sec. 37. Minnesota Statutes 1985 Supplement, section
462C.12, subdivision 2, is amended to read:
Subd. 2. [POWERS.] The board is granted the following
powers:
(a) The board may issue obligations and other forms of
indebtedness under this section, subject to the terms and
conditions set forth in the joint powers agreement, as may be
from time to time amended.
(b) The board is authorized to exercise the powers
conferred upon the cities of Minneapolis and St. Paul and their
designated housing and redevelopment authorities, or the powers
of an agency exercising the powers of a housing and
redevelopment authority by this chapter and chapter 462 and any
other general or special law of the state of Minnesota relating
to housing or housing finance. The powers which may be
exercised by the board include, without limitation, the power to
undertake and implement projects, developments, or programs, the
power to issue and sell obligations and other forms of
indebtedness payable exclusively from the revenues of the
programs, projects, or developments undertaken by the board, or
any of the powers the Minnesota housing finance agency may
exercise under chapter 462A, provided that the obligations and
other forms of indebtedness may be sold upon terms and
conditions as the board may from time to time determine. The
board may exercise the powers conferred by this section only
with respect to projects, programs, or developments within the
corporate limits of the cities of Minneapolis and St. Paul,
except as may be otherwise provided in a joint powers agreement
entered into under section 471.59 between the board and any
other city, housing and redevelopment authority, or port
authority or economic development authority established under
sections 13 to 33 in the state of Minnesota.
(c) For the purposes of section 462C.09, the board may be
authorized by the cities of Minneapolis and St. Paul, or by any
other city with which the board enters into a joint powers
agreement, to issue revenue bonds or obligations in an amount
not to exceed the amount of bonds allocated by general or
special law to such cities, or the board may issue mortgage
credit certificates in lieu thereof.
Sec. 38. Minnesota Statutes 1984, section 471.88,
subdivision 1, is amended to read:
Subdivision 1. The governing body of any port authority,
seaway port authority, economic development authority, town,
school district, hospital district, county, or city, by
unanimous vote, may contract for goods or services with an
interested officer of the governmental unit in any of the
following cases.
Sec. 39. Minnesota Statutes 1984, section 471.88,
subdivision 9, is amended to read:
Subd. 9. When a port authority commissioner or economic
development authority commissioner is engaged in or employed by
a firm engaged in the business of importing or exporting or
general trade, it shall be lawful for the authority to do
business with the commissioner or his employer provided that in
the fixing of any rates affecting shippers or users of the
terminal facility, said commissioner shall not vote thereon.
Sec. 40. Minnesota Statutes 1984, section 471.88,
subdivision 11, is amended to read:
Subd. 11. When a commissioner of any public housing or,
port authority, or economic development authority is employed by
a bank engaged in making loans or performing trust services
involving real or personal property affected by any plan or such
housing or port authority, no restriction shall apply to any
such loans made or trust services performed by said bank if the
commissioner shall disclose the nature of such loans or trust
services of which he has personal knowledge, which disclosure
shall be entered upon the minutes of such authority.
Sec. 41. Minnesota Statutes 1985 Supplement, section
472B.04, is amended to read:
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 sections 13 to 33, chapters
458, 462, 472, 472A, and 474, in conjunction with the powers
granted by this chapter;
(2) provide public facilities pursuant to chapters 429,
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
472B.05.
Sec. 42. Minnesota Statutes 1984, section 474.02,
subdivision 3, is amended to read:
Subd. 3. "Redevelopment agency" means any port authority
referred to in chapter 458, or any city authorized by general or
special law to exercise the powers of a port authority; any
economic development authority referred to in sections 13 to 33;
any housing and redevelopment authority referred to in chapter
462 or any body authorized to exercise the powers of a housing
and redevelopment authority; and any area or municipal
redevelopment agency referred to in chapter 472.
Sec. 43. Minnesota Statutes 1984, section 474.16,
subdivision 2, is amended to read:
Subd. 2. "Local issuer" means any home rule charter or
statutory city, any town, any housing and redevelopment
authority referred to in chapter 462 or any body authorized to
exercise the powers of a housing and redevelopment authority,
any port authority referred to in chapter 458, any economic
development authority referred to in sections 13 to 33, or any
body authorized to exercise the powers of a port authority, any
area or municipal redevelopment agency referred to in chapter
472, any county, or any other municipal authority or agency
established pursuant to special law other than the iron range
resources and rehabilitation board, acting as an issuer of
obligations pursuant to law.
Sec. 44. [DOWNTOWN TAXING AREA.]
If a bill is enacted into law in the 1986 legislative
session which authorizes the city of Minneapolis to issue bonds
and expend certain funds including taxes to finance the
acquisition and betterment of a convention center and related
facilities, which authorizes certain taxes to be levied in a
downtown taxing area, then, notwithstanding the provisions of
that law "downtown taxing area" shall mean the geographic area
bounded by the portion of the Mississippi River between I-35W
and Washington Avenue, the portion of Washington Avenue between
the river and I-35W, the portion of I-35W between Washington
Avenue and 8th Street South, the portion of 8th Street South
between I-35W and Portland Avenue South, the portion of Portland
Avenue South between 8th Street South and I-94, the portion of
I-94 from the intersection of Portland Avenue South to the
intersection of I-94 and the Burlington Northern Railroad
tracks, the portion of the Burlington Northern Railroad tracks
from I-94 to Main Street and including Nicollet Island, and the
portion of Main Street to Hennepin Avenue and the portion of
Hennepin Avenue between Main Street and 2nd Street S.E., and the
portion of 2nd Street S.E. between Main Street and Bank Street,
and the portion of Bank Street between 2nd Street S.E. and
University Avenue S.E., and the portion of University Avenue
S.E. between Bank Street and I-35W, and by I-35W from University
Avenue S.E., to the river.
Sec. 45. [EFFECTIVE DATE.]
This act is effective the day following final enactment.
Approved March 24, 1986
Official Publication of the State of Minnesota
Revisor of Statutes