Minnesota Legislature
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 399-S.F.No. 1793
An act relating to public administration; authorizing
home rule charter or statutory cities to establish
economic development districts; granting powers to
cities and authorities; permitting Aitkin county to
levy a tax for development purposes; permitting the
city of Breezy Point to increase its levy; providing
for certain tax refunds in Aitkin county; permitting
the establishment and providing for the powers and
duties of economic development authorities; permitting
an agreement to finance library construction in the
city of McGregor; permitting a land exchange;
permitting the establishment of special service
districts in the cities of Cambridge and Lindstrom;
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; 375.09;
375.18, subdivision 7; 375A.11, subdivision 3;
375A.12, subdivisions 3 and 4; 383C.17; 462C.02,
subdivisions 6 and 9; 465.72;471.88, subdivisions 1,
9, and 11; 474.02, subdivision 3; and 474.16,
subdivision 2; Minnesota Statutes 1985 Supplement,
sections 273.75, subdivision 4; 353.01, subdivision
2a; 386.77; 395.08; 462C.12, subdivision 2; and
472B.04; proposing coding for new law in Minnesota
Statutes, chapters 375 and 458; and proposing coding
for new law as Minnesota Statutes, chapter 458C;
repealing Minnesota Statutes 1984, sections 394.01;
394.02; 394.03; 394.04; and 394.05.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
Section 1. [AITKIN COUNTY; DEVELOPMENT LEVY.]
The Aitkin county board may annually levy a tax of not more
than one and one third mills on taxable property in the county,
to provide funds to be used by the county for tourist,
agricultural, industrial, and economic development. A levy
under this section is in addition to any other permitted by law
and shall be disregarded in the calculation of any other levies
or limits on levies provided by Minnesota Statutes, sections
275.50 to 275.56 or other law.
Sec. 2. [REVERSE REFERENDUM.]
If the Aitkin county board intends to exercise the
authority provided by section 1, it shall pass a resolution
stating the fact. Thereafter, the resolution shall be published
for two successive weeks in the official newspaper of the county
or, if there is no official newspaper, in a newspaper of general
circulation in the county, together with a notice fixing a date
for a public hearing on the matter. The hearing shall be held
not less than two weeks nor more than four weeks after the first
publication of the resolution. Following the public hearing,
the county may determine to take no further action or, in the
alternative, adopt a resolution confirming its intention to
exercise the authority. That resolution shall also be published
in the official newspaper of the county or, if there is no
official newspaper, in a newspaper of general circulation in the
county. If within 30 days thereafter a petition signed by voters
equal in number to five percent of the votes cast in the county
in the last general election requesting a vote on the proposed
resolution is filed with the county auditor, the resolution
shall not be effective until it has been submitted to the voters
at a general or special election and a majority of votes cast on
the question of approving the resolution is in the affirmative.
The commissioner of revenue shall prepare a suggested form of
question to be presented at the election. The referendum must
be held at a special or general election prior to October 1 of
the first year for which the tax authorized under section 1 is
proposed to be levied.
Sec. 3. Laws 1984, chapter 502, article 13, section 10,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] The limitation imposed
upon the levy of the city of Breezy Point by Minnesota Statutes,
section 275.11, is increased by $125,000 $175,000 for taxes
levied in 1984 1986 and thereafter.
Sec. 4. [REVERSE REFERENDUM.]
If the Breezy Point city council proposes to increase the
levy limit base of the city pursuant to section 3, it shall pass
a resolution stating the amount by which the levy limit base is
proposed to be increased. Thereafter, the resolution shall be
published for two successive weeks in the official newspaper of
the city or if there is no official newspaper, in a newspaper of
general circulation in the city, together with a notice fixing a
date for a public hearing on the proposed increase. The hearing
shall be held not less than two weeks nor more than four weeks
after the first publication of the resolution. Following the
public hearing, the city may determine to take no further action
or, in the alternative, adopt a resolution authorizing the
increase as originally proposed or approving an increase in the
lesser amount it determines. The resolution authorizing an
increase shall be published in the official newspaper of the
city or if there is no official newspaper, in a newspaper of
general circulation in the city. If within 30 days thereafter a
petition signed by voters equal in number to five percent of the
votes cast in the city in the last general election requesting a
referendum on the proposed resolution is filed with the clerk,
the resolution shall not be effective until it has been
submitted to the voters at a general or special election and a
majority of votes cast on the question of approving the
resolution is in the affirmative. The commissioner of revenue
shall prepare a suggested form of question to be presented at
the referendum. The referendum must be held at a special or
general election prior to October of the first levy year in
which the tax authorized under section 3 is proposed to be
levied.
Sec. 5. [AITKIN COUNTY; RETAIL RURAL ELECTRIC COOPERATIVE
ASSOCIATION.]
A person who has paid tax on electricity used in
agricultural production that is exempt from taxation under
section 297A.25, subdivision 1, clause (h), may file a claim for
refund with the commissioner if the tax was paid to the retail
rural electric cooperative association based in Aitkin county.
Sec. 6. [MCGREGOR; LIBRARY; JOINT FINANCING.]
The city of McGregor may agree with one or more of the
towns or home rule charter or statutory cities located in Aitkin
county or the county itself that the local government units
making the agreement will subject taxable property within their
boundaries to taxation to discharge debt incurred for the
construction of a library and related facilities in the city of
McGregor pursuant to Laws 1985, chapter 138, section 4. The
portion of the debt to be discharged by taxation in each unit
may be set by agreement or a single rate may be levied against
all subject property or, by agreement, both methods may be used
in part. A unit may also agree to discharge a portion of the
costs of construction or debt incurred for the costs by a
transfer of any money available to the unit that the unit is not
obliged by law to use for some other purpose. Any joint powers
agreement entered between the city of McGregor and any town
located in Aitkin county to finance the McGregor library
construction must be approved at the annual town meeting by the
town electors of the town before the agreement may be entered.
Obligations for the purpose may be issued without an election
and shall not be subject to the general limit on net debt. In
other respects, the debt shall be incurred and discharged in
accordance with Minnesota Statutes, chapter 475.
Sec. 7. [LAND EXCHANGE AUTHORIZED.]
Notwithstanding Minnesota Statutes, section 94.343,
subdivision 9, and the appraisal requirement under section
94.343, subdivision 3, the state of Minnesota may exchange
certain parcels or tracts of state-owned land located within
Carlton county with the city of Thomson.
(a) State lands to be exchanged are described as:
(1) All of the unplatted portion of Government Lot 1 lying
northerly and easterly of that strip of land deeded to the
Village of Thomson by the Northern Pacific Railway Company,
November 18, 1940, and recorded February 5, 1941, as document
#101684 and on May 13, 1938, and recorded May 21, 1938, as
document #96017; southerly of the former Burlington Northern,
Inc.'s St. Paul to Duluth Branch right-of-way and easterly of
the right-of-way of Minnesota Highway 210, in section 8,
Township 48N, Range 16W.
(2) Lots 1 to 16, both inclusive, and Lot 21 of Block 5 and
Lots 3, 4, 8 and 9 of Block 4 in the Townsite of Thomson,
according to the plat thereof on file in the Office of the
Recorder of Deeds of Carlton County, Minnesota.
(3) Those portions of Lots 17 to 20, both inclusive, 22 and
23 in Block 5 in the Townsite of Thomson, lying southerly of a
line 75 feet northerly at right angles and parallel with the
centerline of former Burlington Northern, Inc.'s St. Paul to
Duluth Branch main line railroad track.
(4) That portion of a 20 foot wide north and south alley
between Block 5 and Block 4 in the Townsite of Thomson that lies
southerly of a line 75 feet northerly at right angles and
parallel with the centerline of former Burlington Northern,
Inc.'s St. Paul to Duluth Branch main line railroad track and
northerly of the easterly projection of the southerly line of
Lot 8 of Block 4 in the Townsite of Thomson.
(5) The South 85 feet of Lots 24 to 46, both inclusive, of
Block 5, in the Townsite of Thomson.
(6) The North Half (N 1/2) of vacated Otter Avenue lying
between the Southerly extension of the East and West lines of
said Block 5, in the Townsite of Thomson.
(b) City lands to be exchanged are described as:
(1) A strip of land two hundred (200) feet wide in
Government Lot One (1), Section eight (8), Township forty-eight
(48) North, Range sixteen (16) West, 4th P.M., said strip being
one hundred (100) feet wide on each side of the centerline of
the original main track of the Lake Superior and Mississippi
Railroad Company Fond Du Lac Branch as formerly constructed but
now removed, and extending from the east line of said Government
Lot one (1) to a westerly production of the north line of Block
one (1) Original Town of Thomson, according to the recorded plat
thereof.
(2) A strip of land fifty (50) feet wide on the
northeasterly side of and adjoining the two hundred (200) foot
strip above described, extending from a westerly production of
the north line of said Block one (1) to a line drawn at right
angles to the northeasterly line of the two hundred (200) foot
strip above described from a point therein distant two hundred
thirty-five (235) feet northwesterly, measured along said
northeasterly line, from the east line of said Government Lot
one (1).
(3) A strip of land 250 feet wide in Government Lot 1, said
strip lying between two lines drawn parallel with and distant
150 feet northeasterly and 100 feet southwesterly, measured at
right angles, from the centerline of the original main tract of
the Lake Superior and Mississippi Railroad Company Fond Du Lac
Branch as formerly constructed but now removed, and extending
from a line drawn parallel with and distant 100 feet southerly,
measured at right angles, from the centerline of the main track
of the Northern Pacific Railway Company's St. Paul to Duluth
Line as now constructed and operated to a westerly projection of
the north line of Block 1, Original Town of Thomson, according
to the recorded plat thereof.
This section is effective the day after final enactment.
Sec. 8. [DEFINITIONS.]
Subdivision 1. For the purpose of sections 8 to 18, the
terms defined in this section have the following meanings.
Subd. 2. "City" means the city of Cambridge or the city of
Lindstrom.
Subd. 3. "Special services" means all services rendered or
contracted for by the city, including, but not limited to:
(a) the repair, maintenance, operation, and construction of
any improvements authorized by Minnesota Statutes, section
429.021;
(b) parking services rendered or contracted for by the
city; and
(c) any other service provided to the public by the city
that is authorized by law or charter provision.
Special services do not include any service that is ordinarily
provided throughout the city from general fund revenues of the
city unless an increased level of the service is provided in the
special service district.
Subd. 4. "Special service district" means a defined area
within the city where special services are rendered and the
costs of the special services are paid from revenues collected
from taxes and service charges imposed within that area.
Subd. 5. "Assessed value" means the assessed value as most
recently certified by the commissioner of revenue before the
effective date of the ordinance or resolution adopted pursuant
to section 9 or 10.
Subd. 6. "Land area" means the land area in the district
which is subject to property taxation.
Sec. 9. [ESTABLISHMENT OF SPECIAL SERVICE DISTRICT.]
Subdivision 1. [ORDINANCE.] The governing body of the city
may adopt an ordinance establishing a special service district.
Only property which is zoned for commercial, business, or
industrial use under a municipal zoning ordinance may be
included in a district. The ordinance shall describe with
particularity the area within the city to be included in the
district and the special services to be furnished in the
district. The ordinance may not be adopted until after a public
hearing has been held on the question. Notice of the hearing
shall include:
(a) the time and place of hearing;
(b) a map showing the boundaries of the proposed district;
and
(c) a statement that all persons owning property in the
proposed district will be given opportunity to be heard at the
hearing.
Subd. 2. [NOTICE.] Notice of the hearing shall be given by
publication in two issues of the official newspaper of the
city. The two publications shall be a week apart and the
hearing shall be held at least three days after the last
publication. Not less than ten days before the hearing, notice
shall also be mailed to the owner of each parcel within the area
proposed to be included in the district. For the purpose of
giving mailed notice, owners shall be those shown on the records
of the county auditor. Other records may be used to supply the
necessary information. For properties which are tax exempt or
subject to taxation on a gross earnings basis in lieu of
property tax and are not listed on the records of the county
auditor, the owners shall be ascertained by any practicable
means and mailed notice given them. At the public hearing any
person affected by the proposed district may be heard orally in
respect to any issues relevant to the proposed district. The
hearing may be adjourned from time to time and the ordinance
establishing the district may be adopted at any time within six
months after the date of the conclusion of the hearing by a vote
of the majority of the governing body of the city.
Sec. 10. [TAXING AUTHORITY; NOTICE AND HEARING
REQUIREMENTS.]
Subdivision 1. [TAXES; HEARING.] Ad valorem taxes may be
levied on taxable nonhomestead property or service charges may
be imposed by the city within the special service district at a
rate or amount sufficient to produce the revenues required to
provide special services within the district. To determine the
appropriate mill rate, nonhomestead taxable property or value
shall be determined without regard to captured or original
assessed value under Minnesota Statutes, section 273.76. Taxes
and service charges shall not be imposed to finance a special
service if the service is ordinarily provided by the city from
its general fund revenues unless the service is provided in the
district at an increased level, in which case only an amount
sufficient to pay for the increased level may be imposed. A
service charge shall not be imposed on the receipts from the
sale of intoxicating liquor, food, or lodging. Before the levy
of taxes or imposition of service charges in a district, for
each calendar year, notice shall be given and hearing shall be
held pursuant to section 9 and notice shall also be mailed to
any individual or business organization subject to a service
charge. For purposes of this section the notice shall also
include:
(a) A statement that all interested persons will be given
an opportunity to be heard at the hearing regarding a proposed
tax levy or service charge.
(b) The estimated cost of improvements to be paid for in
whole or in part by taxes or service charges imposed pursuant to
this section, the estimated cost of operating and maintaining
the improvements during the first year after completion of the
improvements, the proposed method and source of financing the
improvements, and the annual cost of operating and maintaining
the improvements.
(c) The proposed rate or amount of taxes to be extended or
the proposed service charge to be imposed in the district during
the calendar year and the nature and character of special
services to be rendered in the district during the calendar year.
(d) A statement that the petition requirements of section
15 have either been met or do not apply to the proposed taxes or
service charge.
Within six months of the public hearing, the city may adopt
a resolution levying a tax or imposing a service charge within
the district not exceeding the amount or rate expressed in the
notice issued pursuant to this section.
Subd. 2. [EXEMPTION OF CERTAIN PROPERTIES FROM
TAXES.] Property exempted from taxation by Minnesota Statutes,
section 272.02, is exempt from any ad valorem taxes imposed
pursuant to sections 8 to 18.
Subd. 3. [LEVY LIMIT EXEMPTION.] Taxes and service charges
imposed pursuant to sections 8 to 18 shall not be included in
the calculation of levies or limits on levies provided by other
law or home rule charter provision.
Subd. 4. [EXCLUSION FROM HOMESTEAD CREDIT.] Taxes levied
under this section shall not be reduced by a homestead credit.
Sec. 11. [ENLARGEMENT OF SPECIAL SERVICE DISTRICTS.]
Boundaries of a special service district may be enlarged
only after hearing and notice as provided in sections 9 and 10.
Notice shall be served in the original district and in the area
proposed to be added to the district. Property added to the
district shall be subject to all taxes levied and service
charges imposed within the district after the property becomes a
part of the district. The petition requirement in section 15
and the veto power in section 16 shall only apply to owners,
individuals, and business organizations in the area proposed to
be added to the district.
Sec. 12. [COLLECTION OF TAXES.]
Ad valorem taxes levied within a special service district
shall be collected and paid over as other ad valorem taxes, but
shall be spread only upon the assessed value of property
described in the ordinance. Service charges imposed shall be
collected as provided by ordinance. Taxes collected pursuant to
sections 8 to 18 shall not be included in computations under
Minnesota Statutes, section 273.76, or any other law that
applies to general ad valorem levies.
Sec. 13. [BONDS.]
At any time after a contract for the construction of all or
part of an improvement authorized pursuant to sections 8 to 18
has been entered into or the work has been ordered done by day
labor, the governing body of the city may issue obligations
including certificates of indebtedness in the amount it deems
necessary to defray in whole or in part the expense incurred and
estimated to be incurred in making the improvement, including
every item of cost from inception to completion and all fees and
expenses incurred in connection with the improvement or the
financing. The obligations shall be payable primarily out of
the proceeds of the tax levied pursuant to section 10, or from
any other special assessment or nontax revenues available to be
pledged for their payment under charter or other statutory
authority, or from any two or more of such sources. The
governing body may, by resolution adopted prior to the sale of
obligations, pledge the full faith, credit, and taxing power of
the municipality to assure payment of the principal and interest
if the proceeds of the tax levy in the district are insufficient
to pay the principal and interest. The amount of any taxes that
are required to be levied outside of the territory of the
special services district or taken from the general funds of the
municipality to pay principal and interest on the obligations
shall be reimbursed to the municipality from taxes levied within
the special services district. The obligations shall be issued
in accordance with Minnesota Statutes, chapter 475, except that
an election shall not be required, and the amount of the
obligations shall not be included in determining the net debt of
the city under the provisions of any law or charter limiting
debt.
Sec. 14. [ADVISORY BOARD.]
The governing body of the city may create and appoint an
advisory board for each special service district in the city to
advise the governing body in connection with the construction,
maintenance, and operation of improvements, and the furnishing
of special services in a district. The advisory board shall
make recommendations to the governing body on the requests and
complaints of owners, occupants, and users of property within
the district and members of the public. Before the adoption of
any proposal by the governing body to provide services or impose
taxes or service charges within the district, the advisory board
of the district shall have an opportunity to review and comment
upon the proposal.
Sec. 15. [PETITION REQUIRED.]
No action may be taken pursuant to section 9 unless owners
of 15 percent or more of the land area of the proposed special
service district and owners of 15 percent or more of the
assessed value of the proposed district file a petition
requesting a public hearing on the proposed action with the city
clerk. No action may be taken pursuant to section 10 to impose
an ad valorem tax unless owners of 15 percent or more of the
land area subject to a proposed tax and owners of 15 percent or
more of the assessed value subject to a proposed tax file a
petition requesting a public hearing on the proposed action with
the city clerk. No action may be taken pursuant to section 10
to impose a service charge unless 15 percent or more of the
individual or business organizations subject to the proposed
service charge file a petition requesting a public hearing on
the proposed action with the city clerk. If the boundaries of a
proposed district are changed or the land area or assessed value
subject to a tax or the individuals or business organizations
subject to a service charge are changed after the public
hearing, a petition meeting the requirements of this section
must be filed with the city clerk before the ordinance
establishing the district or resolution imposing the tax or
service charge may become effective.
Sec. 16. [VETO POWER OF OWNERS.]
Subdivision 1. [NOTICE OF RIGHT TO FILE OBJECTIONS.]
Except as provided in section 17, the effective date of any
ordinance or resolution adopted pursuant to sections 9 and 10
shall be at least 45 days after it is adopted. Within five days
after adoption of the ordinance or resolution, a copy of the
ordinance or resolution shall be mailed to the owner of each
parcel included in the special service district and any
individual or business organization subject to a service charge
in the same manner that notice is mailed pursuant to section 9.
The mailing shall include a notice that owners subject to a tax
and individuals and business organizations subject to a service
charge have a right to veto the ordinance or resolution by
filing the required number of objections with the city clerk
before the effective date of the ordinance or resolution.
Subd. 2. [REQUIREMENT FOR VETO.] If owners of 35 percent
of the land area in the district and owners of 35 percent of the
assessed value in the district file an objection to the
ordinance adopted by the city pursuant to section 9 with the
city clerk before the effective date of the ordinance, the
ordinance shall not become effective. If owners of 35 percent
of the land area subject to a tax and owners of 35 percent of
the assessed value subject to a tax file an objection to the
resolution adopted levying an ad valorem tax pursuant to section
10 with the city clerk before the effective date of the
resolution, the resolution shall not become effective. If 35
percent of individuals and business organizations subject to a
service charge file an objection to the resolution adopted
imposing a service charge pursuant to section 10 with the city
clerk before the effective date of the resolution, the
resolution shall not become effective.
Sec. 17. [EXCLUSION FROM PETITION REQUIREMENTS AND VETO
POWER.]
The petition requirement of section 15 and the right of
owners and those subject to a service charge to veto a
resolution in section 20 do not apply to second or subsequent
years' applications of a tax or service charge which is
authorized to be in effect for more than one year pursuant to a
resolution which has met the petition requirements of section 15
and which has not been vetoed under section 20 for the first
year's application. A resolution levying a tax or imposing a
service charge for more than one year shall not be adopted
unless the notice of public hearing required by section 10 and
the notice mailed with the adopted resolution pursuant to
section 16 include the following information:
(a) In the case of improvements, the maximum rate or amount
of taxes to be levied or the maximum service charge to be
imposed in any year and the maximum number of years the taxes
will be levied or service charges imposed to pay for the
improvement.
(b) In the case of operating and maintenance services, the
maximum rate or amount of taxes to be levied or the maximum
service charge to be imposed in any year and the maximum number
of years, or a statement that the tax will be imposed for an
indefinite number of years, the taxes will be levied or service
charges imposed to pay for operation and maintenance services.
The resolution may provide that the maximum amount of tax
to be levied or maximum service charge to be imposed in any year
will increase or decrease from the maximum amount authorized in
the preceding year based on an indicator of increased cost or a
percentage amount established by the resolution.
Sec. 18. [REPORT TO LEGISLATURE.]
The administrator of the city shall file a written report
with the chairman of the house local and urban affairs committee
and the chairman of the senate local and urban government
committee on or before January 31, 1987. The report shall
apprise the committee as to the activities undertaken pursuant
to sections 8 to 18 and recommend any changes that should be
considered if the legislature were to enact statewide
legislation for the establishment of special service districts.
Sec. 19. Minnesota Statutes 1984, section 375.09, is
amended to read:
375.09 [MAY NOT HOLD OTHER OFFICE; NO INTEREST IN
CONTRACT BRIBERY; VIOLATION; MALFEASANCE.]
No county commissioner shall be appointed or hold another
elected by the board of which he is a member to any office or
position of trust or emolument during tenure as commissioner nor
be employed by the county in which he is a commissioner. No
commissioner shall receive any money or other valuable thing as
a condition of voting or inducement to vote for any contract or
other thing under consideration by the board, or become a party
to, or directly or indirectly interested in, any contract made
by the board. Every appointment or election made and every
contract or payment voted for or made contrary to this section
is void. Any violation of this section is a malfeasance in
office.
Sec. 20. Minnesota Statutes 1984, section 375.18,
subdivision 7, is amended to read:
Subd. 7. [TRANSFER OF SURPLUS.] Each county board may
transfer by unanimous a majority vote any surplus beyond the
needs of the current year in any county fund to any other county
fund to supply a deficiency in it.
Sec. 21. [375.84] [PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED
STATES DOCUMENTS.]
A county may make advance deposits or payments for software
development or maintenance services for county-owned or leased
electronic data processing equipment and for newspaper,
magazine, and other subscription fees customarily paid for in
advance, and may allow advance deposits by any department or
agency of the county with the Library of Congress and federal
Supervisor of Documents for items to be purchased from these
federal agencies.
Sec. 22. [375.85] [COUNTIES MAY MARKET SOFTWARE PRODUCTS.]
Notwithstanding any other law to the contrary, a county or
group of counties acting jointly under section 471.59 may sell
or license self-developed or vendor custom-developed computer
software products or systems either on competitive bids or in
the open market, in the discretion of the county or joint powers
board. Prices for the software products or systems may be based
on market considerations. A county or group of counties may
make agreements with private persons or entities to assist with
marketing software products or systems.
Sec. 23. [375.86] [APPLICATION OF OTHER LAW.]
Subdivision 1. [NONPUBLIC DATA.] County software product
programming source code, object code, and all material relating
to product or system development and distribution is "trade
secret information" for purposes of classification under section
13.37, subdivision 2.
Sec. 24. Minnesota Statutes 1984, section 375A.11,
subdivision 3, is amended to read:
Subd. 3. [VACANCIES IN CERTAIN ELECTIVE OFFICES.] (a) If
any of the offices of county auditor, treasurer or county
recorder shall become vacant before the expiration of the term
for the office, a county board may appoint either of the holders
of the other two offices to fill the vacancy for the unexpired
term. The board may provide additional compensation for the
added duties imposed on the appointee by virtue of his holding
two offices for that period. If the office of county auditor or
treasurer becomes vacant, the county board may initiate a
referendum by resolution to consolidate the two offices into one
elected office. The referendum shall be conducted according to
section 375A.12, subdivisions 4 and 5.
(b) The authority granted by clause (a) of this subdivision
shall be in addition to the authorities granted by existing law
or statute and by the provisions of sections 375A.01 to 375A.13
relating to consolidation and appointment of county offices; the
authority granted by this subdivision may be exercised
notwithstanding any prohibitions against the holding of two
offices that may exist in the laws or statutes of this state.
Sec. 25. Minnesota Statutes 1984, section 375A.12,
subdivision 3, is amended to read:
Subd. 3. [REFERENDA; PROCEDURE.] Any referendum required
to be held as a condition of the adoption of an option may be
initiated by a resolution by the county board, a recommendation
of a county government study commission or a petition signed by
voters equal in number to five percent of the electors voting at
the last previous election for the office of governor requesting
that a referendum be held on the adoption of one or more of the
options provided in sections 375A.01 to 375A.10. Unless the
referendum is a recommendation of the study commission If a
study commission has been established, a referendum on an option
may not be initiated by a resolution of the county board or a
petition of voters until after the study commission has
completed its study provided for in section 375A.13, subdivision
3.
Sec. 26. Minnesota Statutes 1984, section 375A.12,
subdivision 4, is amended to read:
Subd. 4. [CONDUCT OF ELECTION.] When a referendum is
required to be held, the county auditor shall conduct the
referendum following the procedures provided in chapter 372, as
nearly as possible and not inconsistent with sections 375A.01 to
375A.10, except, instead of the county board meeting to act on
the petition, a committee consisting of the persons who
constitute a jury commission as provided in section 593.13,
shall meet and act on the petition. The referendum may be held
at any primary, general or special election held not less than
30 days before the first day on which candidates may file for
county office.
Sec. 27. Minnesota Statutes 1984, section 383C.17, is
amended to read:
383C.17 [COURTHOUSE BUILDING COMMISSION.]
Notwithstanding the provisions of Minnesota Statutes 1961,
sections 394.01 to 394.05, In St. Louis County, the courthouse
building commission shall have the authority to assign and
reassign space and rooms to the various offices in the
courthouses and county office buildings in said county.
Sec. 28. Minnesota Statutes 1985 Supplement, section
386.77, is amended to read:
386.77 [CONVEYANCES AND DOCUMENTS FOR BENEFIT OF
GOVERNMENTAL AGENCIES, FEES.]
An instrument of conveyance, assignment or release, a
judgment or other document, which is entitled to recording or
filing, and which by its terms is for the benefit of the state
or any county, city or town, shall be recorded or filed by any
county recorder or registrar of titles without the payment of
fees when offered for filing or recording by the state or any of
its agencies, or by the benefited subdivision. The fee for the
recording or filing shall be paid by the state, its agency, or
by the benefited subdivision, but not by another department or
agency of that county, upon submission of a statement of charges
by the county recorder or registrar of titles.
Sec. 29. [REPEALER.]
Minnesota Statutes 1984, sections 394.01, 394.02, 394.03,
394.04, and 394.05 are repealed.
Sec. 30. Minnesota Statutes 1984, section 465.72, is
amended to read:
465.72 [SEVERANCE PAY.]
Subdivision 1. [PAYMENT; LIMITS.] Except as may otherwise
be provided in Laws 1959, Chapter 690, as amended, any county,
city, township, school district or other governmental
subdivision may pay severance pay to its employees and
promulgate rules for the payment of severance pay to an employee
who leaves employment on or before or subsequent to the normal
retirement date. Severance pay shall also include the payment
of accumulated vacation leave, accumulated sick leave or a
combination thereof. The severance pay shall be excluded from
retirement deductions and from any calculations in retirement
benefits. It shall be paid in a manner mutually agreeable to
the employee and employer and, except as provided in subdivision
2, over a period not to exceed five years from retirement or
termination of employment. If a retired or terminated employee
dies before all or a portion of the severance pay has been
disbursed, that balance due shall be paid to a named beneficiary
or, lacking same, to the deceased's estate. Except as provided
in subdivision 2, in no event shall severance pay provided for
an employee leaving employment exceed an amount equivalent to
one year of pay.
Subd. 2. [EXCEPTIONS.] The provisions of subdivision 1
requiring that severance pay be paid over a period not to exceed
five years from retirement or termination of employment and
limiting severance pay to an amount equal to one year of pay do
not apply to severance pay constituting compensation for
accumulated sick leave in the form of periodic contributions
toward premiums for group insurance policies provided for a
former employee by a governmental subdivision.
This subdivision applies only to periodic contributions
that have commenced before the effective date of this act or
that are required under contracts, or, with respect to employees
not covered by contracts, personnel policies, formally adopted
by the governing body of the governmental subdivision, in
existence on the effective date of this act. After the
effective date of this act, a governmental subdivision may not
enter into a contract or adopt a personnel policy providing for
a payment in violation of subdivision 1. A personnel policy or
portion of a personnel policy in existence on the effective date
of this act and providing for a payment in violation of
subdivision 1 is null and void (i) upon the expiration of a
collective bargaining agreement containing a similar provision
and covering employees of the governmental subdivision that has
adopted the policy, or (ii) two years from the effective date of
this act, whichever is earlier. Any payments by governmental
subdivisions in accordance with this subdivision before the
effective date of this act are validated.
Sec. 31. [EFFECTIVE DATE.]
Section 19 does not become effective for any county
commissioner currently holding two elected offices until the
term of one of the offices expires.
Sec. 32. [EFFECTIVE DATE.]
Sections 1, 2, 3, 4, 5, and 6 are effective the day
following final enactment. Sections 8 to 18 are effective
separately for each of the cities of Cambridge and Lindstrom the
day after its governing body complies with Minnesota Statutes,
section 645.021, subdivision 3.
ARTICLE 2
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 furnish capital equipment permanently or used
exclusively on the lands or in the buildings if necessary to the
purposes of the buildings or structures. The authority must
intend that the buildings, structures, and equipment be leased
or sold to private persons to further develop the economic
development district.
The authority may acquire, develop, 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. [EFFECTIVE DATE.]
This article is effective the day following final enactment.
Approved March 24, 1986
Official Publication of the State of Minnesota
Revisor of Statutes