Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 391-H.F.No. 2123 
           An act relating to the city of Bloomington; 
          authorizing the city to impose certain taxes; 
          increasing the distribution levy from the metropolitan 
          revenue distribution for the city for a specific time 
          period;  permitting the city to establish a special 
          taxing district; authorizing the port authority of the 
          city to pledge certain tax revenues to pay certain 
          bonds and permitting it to develop leased land; 
          authorizing development in accordance with the Generic 
          EIS and Generic Indirect Source Permit; amending 
          Minnesota Statutes 1984, section 473F.08, by adding a 
          subdivision.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1. 
    The legislature finds that providing areawide and local 
financial assistance, including the provision of security for 
debt financing, but not including direct subsidies to private 
interests, in the development of the former metropolitan stadium 
site, is a public purpose of state, metropolitan, and local 
government in Minnesota and that it is a benefit to the 
metropolitan area within the purpose of the metropolitan revenue 
distribution program pursuant to chapter 473F. 
    Sec. 2.  [DEFINITIONS.] 
    For the purposes of sections 2 to 11, the following terms 
have the meanings given them in this section.  
    (a) "City" means the city of Bloomington, its city council, 
and any other board, authority, commission, or officer 
authorized by law, charter, or ordinance to exercise city powers 
of a nature referred to in this act.  
    (b) "Generic EIS" means the airport south environmental 
impact statement approved by the Minnesota environmental quality 
board on November 20, 1984.  
    (c) "Generic ISP" means the airport south indirect source 
permit approved by the Minnesota pollution control agency on 
January 25, 1985.  
    (d) "Airport south industrial development district" means 
an area encompassing approximately 2,365 acres bounded on the 
north by Interstate 494, on the east and south by the Minnesota 
river, and on the west by trunk highway 77.  
    (e) "Port authority" means the port authority of the city 
of Bloomington.  
    (f) "Project" means the redevelopment of the former 
metropolitan stadium site containing a complex of hotels, 
commercial, office, and residential structures, and educational, 
cultural, and entertainment facilities which is located within 
the city of Bloomington, Hennepin county, and containing 
approximately 85 acres east of Trunk Highway 77, west of 24th 
Avenue, south of the metropolitan sports center, and north of 
Killebrew Drive.  
    (g) "Highway improvements" means highway improvements to 
Trunk Highway 77 from 86th Street to Interstate 494, including 
ramp and interchange improvements in connection therewith and 
construction of the 24th Avenue Interstate 494 interchange.  
    Sec. 3.  [SALES TAX.] 
    Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
finds that in the construction of the project pursuant to 
section 1, the city and the state may construct major regional 
and statewide public improvements and the city will provide 
special services.  Improvements and services, so long as they 
directly fulfill the requirements of a public purpose as 
declared in section 1, include, but are not limited to, the 
following:  
    (1) the repair, maintenance, operation, and construction of 
any improvements authorized by Minnesota Statutes, section 
429.021, and assistance in the funding of the improvements;  
    (2) assistance in the funding, including lease payments, of 
parking services rendered or contracted for by the port 
authority;  
    (3) construction of highway improvements; and 
     (4) any other service or public improvement provided by the 
city that is authorized by law or charter.  
    Further, the legislature finds that the improvements and 
services provided, while benefiting the people of the state, the 
metropolitan area, and the city as a whole, will also specially 
benefit persons who choose to patronize the project and the 
retailers who choose to locate businesses within the project.  
Because of the extraordinary nature of the improvements and 
services to be rendered by the city, and because a particular 
class of persons choosing to locate businesses within or 
patronize the project will receive greater benefit from the 
improvements and services than other classes of taxpayers, the 
legislature finds that the designation of the project as a 
special sales tax district and the imposition of a special sales 
tax within the project under subdivision 2 will more equitably 
apportion the burden of funding the improvements and services 
among the various classes of taxpayers benefited within the 
district. 
    Subd. 2.  [TAX.] The city may by ordinance designate the 
project as a special sales tax district and may impose a sales 
tax on the gross receipts from sales at retail made by any 
person in the area included in the project.  The tax must be 
imposed at a rate determined by the city but may not exceed one 
percent.  The tax must be imposed upon sales transactions 
taxable pursuant to Minnesota Statutes, chapter 297A except that 
the city may exempt from the tax imposed under this section any 
transaction for which a tax is imposed under section 4 or 5. 
    Subd. 3.  [EXPIRATION.] Any designation of the project as a 
special tax district and any additional sales tax imposed on the 
gross receipts from sales at retail made in the project expire 
the year in which bonds designated for improvements on the 
project site are retired. 
    Sec. 4.  [LODGING TAXES.] 
    Notwithstanding Minnesota Statutes, section 477A.018 or any 
law, ordinance, or charter to the contrary, the city may impose 
a sales tax at a rate determined by the city but not greater 
than five percent on the gross receipts from the furnishing for 
consideration of lodging for a period of less than 30 days at a 
hotel, motel, rooming house, tourist court, or resort located 
within the city.  The authority to impose this sales tax shall 
not be construed as authority which is additional to that 
provided in section 477A.018, subdivision 2.  
    Sec. 5.  [LIQUOR TAXES.] 
    Notwithstanding Minnesota Statutes, section 477A.016 or any 
law, ordinance, or charter to the contrary, the city may impose 
a sales tax at a rate determined by the city but not greater 
than five percent on the gross receipts from retail on-sales of 
intoxicating liquor and fermented malt beverages when sold at 
licensed on-sale liquor establishments located within the city.  
    Sec. 6.  [COLLECTION OF TAXES.] 
    The city may provide for the reporting and payment of a tax 
imposed under section 3, 4, or 5 to the commissioner of revenue 
together with the tax imposed by Minnesota Statutes, chapter 
297A and may impose the interest and penalty provisions 
contained in that chapter.  If so provided, the reporting and 
payment provisions for the sales and use tax contained in 
Minnesota Statutes, chapter 297A shall apply to a tax imposed by 
the city under this section, and the commissioner shall 
administer and enforce the assessment and collection of the 
tax.  The commissioner shall have all the powers provided in 
Minnesota Statutes to administer and enforce the assessment and 
collection of the tax.  The proceeds of the tax, less refunds 
and costs of collection, must be remitted to the city at least 
quarterly.  The amount deducted by the commissioner shall be 
deposited in the general fund.  
    Sec. 7.  [USE OF PROCEEDS; POWERS.] 
    The proceeds of the taxes imposed under section 3, 4, or 5 
and the proceeds of the distribution under section 12 may only 
be expended by the city for the public purpose stated in section 
1, as follows:  (i) the distribution under section 12 shall be 
expended for the total cost of financing and debt service 
payments for highway improvements, including interest on bonds 
issued pursuant to Laws 1985, chapter 295; (ii) the proceeds 
from taxes imposed under section 3 may be expended for the total 
cost of financing and debt service payments for highway 
improvements or other public improvements within the project 
area except operating, maintaining, or promoting public malls, 
plazas, or courtyards; (iii) the proceeds from the taxes imposed 
under sections 4 and 5 may be expended for debt service on bonds 
issued for highway improvements or citywide improvements and 
public services as authorized by law and charter.  The city may 
transfer funds to the port authority to accomplish the public 
purpose of section 1 only as authorized by this section.  
    The city of Bloomington shall pay, from funding sources 
enumerated above, all costs of the highway improvements, 
including trunk highways, within the project area.  To provide 
for this funding of trunk highways, the city and the 
commissioner of transportation may enter into an agreement under 
which the city agrees to loan, without interest, and to advance 
money to the commissioner for deposit in the state treasury to 
the credit of the trunk highway fund an amount sufficient for 
the design services, the construction and the construction 
engineering of those trunk highway facilities that the 
commissioner determines necessary to build as part of the 
related improvements.  The commissioner must repay those loan 
funds to the city from the trunk highway fund in ten equal 
annual installments commencing after completion of the trunk 
highway facilities within the related improvements or 1990, 
whichever occurs later in time.  No interest or inflation index 
money will be paid to the city for the use of this loan money by 
the commissioner from the trunk highway fund. 
    In order to expedite the project and to minimize disruption 
to the statewide highway program, the city shall be the lead 
agency responsible for all design, contract letting, award, and 
administration of highway improvements in the project area.  The 
city shall acquire and convey to the state, without costs to the 
state, all rights-of-way needed for trunk highway improvements 
in the project area. 
    Sec. 8.  [DEBT SECURITY.] 
    The proceeds of the taxes permitted by sections 3, 4, and 5 
may be pledged by the city or port authority for the payment of 
tax increment revenue bonds issued pursuant to Minnesota 
Statutes, chapter 273.  
    Sec. 9.  [BONDS; REVENUE SOURCES.] 
    Notwithstanding Minnesota Statutes, section 273.77, 
paragraph (c), to directly carry out only the public purpose as 
declared in section 1, the port authority of the city of 
Bloomington may, by resolution, authorize the issuance and sale 
of revenue bonds payable in whole or in part from all or part of 
the revenues derived from: 
    (i) the sales taxes permitted by sections 3, 4, and 5 if 
they are pledged or imposed in whole or part to pay the 
principal, premium, if any, and interest on the bonds, and 
    (ii) tax increment revenues and assessments derived from a 
tax increment financing district located wholly or partially 
within the municipality to finance any expenditure which the 
port authority is authorized to make by Minnesota Statutes, 
section 273.75, subdivision 4.  
    Sec. 10.  [PORT AUTHORITY; DEVELOPMENT POWERS.] 
    In addition to the authority provided by Minnesota 
Statutes, section 458.192, subdivision 10, the port authority 
may, if proper in the public interest under section 1, build 
suitable buildings or structures on land leased by it.  
    Sec. 11.  [DEVELOPMENT AUTHORITY PURSUANT TO GENERIC EIS 
AND GENERIC ISP.] 
    Subject to other reviews and permits required by law, the 
project is authorized to proceed with a level of development as 
identified in the draft and final generic EIS and generic ISP.  
The authority to proceed with this level of development is 
conditioned on the construction of highway improvements with a 
capacity equal to or greater than those specified in the draft 
and final generic EIS and generic ISP and in accordance with the 
specific and general conditions specified therein.  
    Sec. 12.  Minnesota Statutes 1984, section 473F.08, is 
amended by adding a subdivision to read: 
    Subd. 3a.  Beginning in 1987 and each subsequent year 
through 1998, the city of Bloomington shall determine the 
interest payments for that year for the bonds which have been 
sold for the highway improvements pursuant to section 2, 
paragraph (g).  Effective for property taxes payable in 1988 
through property taxes payable in 1999, after the Hennepin 
county auditor has computed the areawide portion of the levy for 
the city of Bloomington pursuant to section 473F.08, subdivision 
3, clause (a), the auditor shall annually add a dollar amount to 
the city of Bloomington's areawide portion of the levy equal to 
the amount which has been certified to the auditor by the city 
of Bloomington for the interest payments for that year for the 
bonds which were sold for highway improvements.  The total 
areawide portion of the levy for the city of Bloomington 
including the additional amount for interest repayment certified 
pursuant to this subdivision shall be certified by the Hennepin 
county auditor to the administrative auditor pursuant to section 
473F.08, subdivision 5.  The Hennepin county auditor shall 
distribute to the city of Bloomington the additional areawide 
portion of the levy computed pursuant to this subdivision at the 
same time that payments are made to the other counties pursuant 
to section 473F.08, subdivision 7a.  This additional areawide 
portion of the levy which is distributed to the city of 
Bloomington shall be exempt from the city's levy limit 
provisions contained in sections 275.50 to 275.56.  For property 
taxes payable from the year 2000 through 2009, the Hennepin 
county auditor shall adjust Bloomington's contribution to the 
area-wide tax base upward each year by a value equal to ten 
percent of the total additional area-wide levy distributed to 
Bloomington under this subdivision from 1988 to 1999, divided by 
the area-wide mill rate for taxes payable in the previous year.  
    Sec. 13.  [APPLICABILITY; EFFECTIVE DATE.] 
    Section 12 applies in the counties of Anoka, Carver, 
Dakota, Hennepin, Ramsey, Scott, and Washington and pursuant to 
Minnesota Statutes, section 645.023, subdivision 1, clause (c), 
is effective without local approval the day after final 
enactment.  Pursuant to Minnesota Statutes, section 645.023, 
subdivision 1, clause (a), sections 1 to 11 are effective 
without local approval the day after final enactment. 
    Approved March 21, 1986