Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1987, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1987
CHAPTER 291-S.F.No. 170
An act relating to economic development; recodifying
provisions governing housing and redevelopment
authorities, port authorities, economic development
authorities, area redevelopment, municipal development
districts, mined underground space development, rural
development finance authorities, public development
debt, enterprise zones, tax increment financing, and
other local economic development tools; extending
duration of bond allocation act; removing certain
service persons' preference provisions from the
housing and redevelopment authority law; modifying
requirements for developers' tax abatements under the
housing and redevelopment authority law; removing a
sunset on certain St. Paul port authority provisions;
amending Minnesota Statutes 1986, sections 16B.61,
subdivision 3; 41A.05, subdivision 2; 41A.06,
subdivision 5; 115A.69, subdivision 9; 116J.27,
subdivision 4; 116M.03, subdivisions 11, 19, and 28;
116M.06, subdivision 3; 116M.07, subdivision 11;
124.214, subdivision 3; 216B.49, subdivision 7;
268.38, subdivision 3; 272.02, subdivision 5; 272.026;
272.68, subdivision 4; 273.13, subdivisions 9 and 24;
273.1393; 282.01, subdivision 1; 290.61; 298.2211,
subdivisions 1 and 3; 353.01, subdivision 6; 355.11,
subdivision 5; 355.16; 412.251; 462C.02, subdivisions
6 and 9; 462C.05, subdivision 7; 462C.06; 465.54;
465.74, subdivision 7; 465.77; 471A.03, subdivision 9;
473.195, subdivision 1; 473.201, subdivision 1;
473.504, subdivision 11; 473.556, subdivision 6;
473.638, subdivision 2; 473.811, subdivision 8;
473.852, subdivision 6; 473F.02, subdivision 3;
473F.05; 473F.08, subdivisions 2, 4, and 6; 475.525,
subdivision 3; 477A.011, subdivision 7; 504.24,
subdivision 2; and 609.321, subdivision 12; repealing
Minnesota Statutes 1986, sections 273.1312; 273.1313;
273.1314; 273.71; 273.72; 273.73; 273.74; 273.75;
273.76; 273.77; 273.78; 273.86; 362A.01; 362A.02;
362A.03; 362A.04; 362A.041; 362A.05; 362A.06; 373.31;
426.055; 458.09; 458.091; 458.10; 458.11; 458.12;
458.14; 458.15; 458.16; 458.17; 458.18; 458.19;
458.191; 458.192; 458.193; 458.194; 458.1941; 458.195;
458.196; 458.197; 458.198; 458.199; 458.1991; 458.70;
458.701; 458.702; 458.703; 458.711; 458.712; 458.713;
458.72; 458.74; 458.741; 458.75; 458.76; 458.77;
458.771; 458.772; 458.773; 458.774; 458.775; 458.776;
458.777; 458.778; 458.79; 458.80; 458.801; 458.81;
458C.01; 458C.03; 458C.04; 458C.05; 458C.06; 458C.07;
458C.08; 458C.09; 458C.10; 458C.11; 458C.12; 458C.13;
458C.14; 458C.15; 458C.16; 458C.17; 458C.18; 458C.19;
458C.20; 458C.22; 458C.23; 459.01; 459.02; 459.03;
459.04; 459.05; 459.31; 459.32; 459.33; 459.34;
462.411; 462.415; 462.421; 462.425; 462.426; 462.427;
462.428; 462.429; 462.4291; 462.432; 462.435; 462.441;
462.445; 462.451; 462.455; 462.461; 462.465; 462.466;
462.471; 462.475; 462.481; 462.485; 462.491; 462.495;
462.501; 462.505; 462.511; 462.515; 462.521; 462.525;
462.531; 462.535; 462.541; 462.545; 462.551; 462.555;
462.556; 462.561; 462.565; 462.571; 462.575; 462.581;
462.585; 462.591; 462.595; 462.601; 462.605; 462.611;
462.615; 462.621; 462.625; 462.631; 462.635; 462.641;
462.645; 462.651; 462.655; 462.661; 462.665; 462.671;
462.675; 462.681; 462.685; 462.691; 462.695; 462.701;
462.705; 462.712; 462.713; 462.714; 462.715; 462.716;
465.026; 465.53; 465.55; 465.56; 472.01; 472.02;
472.03; 472.04; 472.05; 472.06; 472.07; 472.08;
472.09; 472.10; 472.11; 472.12; 472.125; 472.13;
472.14; 472.15; 472.16; 472A.01; 472A.02; 472A.03;
472A.04; 472A.05; 472A.06; 472A.07; 472A.09; 472A.10;
472A.11; 472A.12; 472A.13; 472B.01; 472B.02; 472B.03;
472B.04; 472B.05; 472B.06; 472B.07; 472B.08; 474.01;
474.02; 474.03; 474.04; 474.05; 474.06; 474.07;
474.08; 474.09; 474.10; 474.11; 474.13; 474.15; Laws
1961, chapter 545; Laws 1963, chapters 254; and 827;
Laws 1967, chapter 541; Laws 1969, chapter 98; Laws
1973, chapter 114; Laws 1974, chapter 218; Laws 1975,
chapter 326; Laws 1976, chapter 234, section 3; Laws
1979, chapter 269, section 1; Laws 1980, chapters 453;
and 595, sections 5 and 8; Laws 1982, chapter 523,
article 24, section 2; Laws 1983, chapters 110; and
257, section 1; Laws 1984, chapters 397; 498; and 548,
section 9; and Laws 1985, chapters 173; 177; 188; 189;
192; 199; 205; 206, sections 2 and 3; and 301,
sections 3 and 4; proposing coding for new law as
Minnesota Statutes, chapter 469.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
HOUSING AND REDEVELOPMENT AUTHORITIES
Section 1. [469.001] [PURPOSES.]
The purposes of sections 1 to 47 are:
(1) to provide a sufficient supply of adequate, safe, and
sanitary dwellings in order to protect the health, safety,
morals, and welfare of the citizens of this state;
(2) to clear and redevelop blighted areas;
(3) to perform those duties according to comprehensive
plans;
(4) to remedy the shortage of housing for low and moderate
income residents, and to redevelop blighted areas, in situations
in which private enterprise would not act without government
participation or subsidies; and
(5) in cities of the first class, to provide housing for
persons of all incomes.
Public participation in activities intended to meet the
purposes of sections 1 to 47 and the exercise of powers confined
by sections 1 to 47 are public uses and purposes for which
private property may be acquired and public money spent.
Sec. 2. [469.002] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 1 to 47, the terms
defined in this section have the meanings given to them herein,
unless the context indicates a different meaning.
Subd. 2. [AUTHORITY.] "Authority" means a housing and
redevelopment authority created or authorized to be created by
sections 1 to 47.
Subd. 3. [CITY.] "City" means a home rule charter or
statutory city.
Subd. 4. [STATE PUBLIC BODY.] "State public body" means
any city, county, commission, district, authority, or other
political subdivision or instrumentality of this state.
Subd. 5. [GOVERNING BODY.] "Governing body" means the
council, board of trustees, or other body charged with governing
any state public body.
Subd. 6. [MAYOR.] "Mayor" means the mayor of a city.
Subd. 7. [CLERK.] "Clerk" means the clerk of a city or the
officer of any other state public body charged with the duties
customarily imposed on the clerk of a city.
Subd. 8. [AREA OF OPERATION.] "Area of operation" means,
in the case of an authority created in and for a city, county,
or group of counties, the area within the territorial boundaries
of that city, county, or group of counties.
Subd. 9. [FEDERAL GOVERNMENT.] "Federal government"
includes the United States of America, the department of housing
and urban development, or any other department, agency, or
instrumentality of the United States of America.
Subd. 10. [FEDERAL LEGISLATION.] "Federal legislation"
includes the United States Housing Act of 1937, Public Act No.
412 of the 75th Congress of the United States, any act that
amends it or adds to it, and any other legislation of the
Congress of the United States relating to federal assistance for
clearance or rehabilitation of substandard or blighted areas,
land assembly, redevelopment projects, or housing.
Subd. 11. [BLIGHTED AREA.] "Blighted area" means any area
with buildings or improvements which, by reason of dilapidation,
obsolescence, overcrowding, faulty arrangement or design, lack
of ventilation, light, and sanitary facilities, excessive land
coverage, deleterious land use, or obsolete layout, or any
combination of these or other factors, are detrimental to the
safety, health, morals, or welfare of the community.
Subd. 12. [PROJECT.] "Project" means a housing project, a
housing development project or a redevelopment project, or any
combination of those projects. The term "project" also may be
applied to all real and personal property, assets, cash, or
other funds, held or used in connection with the development or
operation of the project. The term "project" also includes an
interest reduction program authorized by section 12, subdivision
7.
Subd. 13. [HOUSING PROJECT.] "Housing project" means any
work or undertaking to provide decent, safe, and sanitary
dwellings for persons of low income and their families.
Such work or undertaking may include acquisition or
provision of buildings, land, equipment, facilities, and other
real or personal property for necessary, convenient, or
desirable appurtenances, streets, sewers, water service,
utilities, site preparation, landscaping, administrative,
community, health, recreational, welfare, or other purposes.
"Housing project" also includes the planning of the
buildings and improvements, the acquisition of property, the
demolition or removal of existing structures, the construction,
reconstruction, alteration, and repair of the improvements and
all other work in connection therewith.
Subd. 14. [REDEVELOPMENT PROJECT.] "Redevelopment project"
means any work or undertaking:
(1) to acquire blighted areas and other real property for
the purpose of removing, preventing, or reducing blight,
blighting factors, or the causes of blight;
(2) to clear any areas acquired and install, construct or
reconstruct streets, utilities, and site improvements essential
to the preparation of sites for uses in accordance with the
redevelopment plan;
(3) to sell or lease land so acquired for uses in
accordance with the redevelopment plan;
(4) to prepare a redevelopment plan, and to incur
initiation, planning, survey and other administrative costs of a
redevelopment project, and to prepare technical and financial
plans and arrangements for buildings, structures, and
improvements and all other work in connection therewith; or
(5) to conduct an urban renewal project. The term "urban
renewal project" may include undertakings and activities for the
elimination or for the prevention of the development or spread
of slums or blighted or deteriorating areas and may involve any
work or undertaking for that purpose constituting a
redevelopment project or any rehabilitation or conservation
work. For this purpose, "rehabilitation or conservation work"
may include (i) carrying out plans for a program of voluntary or
compulsory repair and rehabilitation of buildings or other
improvements; (ii) acquisition of real property and demolition,
removal, or rehabilitation of buildings and improvements thereon
where necessary to eliminate unhealthful, unsanitary or unsafe
conditions, lessen density, reduce traffic hazards, eliminate
obsolete or other uses detrimental to the public welfare, or to
otherwise remove or prevent the spread of blight or
deterioration, to promote historic and architectural
preservation, or to provide land for needed public facilities;
(iii) installation, construction, or reconstruction of streets,
utilities, parks, playgrounds, and other improvements necessary
for carrying out the objectives of the urban renewal project;
(iv) the disposition, for uses in accordance with the objectives
of the urban renewal project, of any property or part thereof
acquired in the area of the project; provided that the
disposition shall be in the manner prescribed in sections 1 to
47 for the disposition of property in a redevelopment project
area; (v) relocation within or outside the project area of
structures that will be restored and maintained for
architectural or historic purposes; (vi) restoration of acquired
properties of historic or architectural value; and (vii)
construction of foundations and platforms necessary for the
provision of air rights sites.
The term "redevelopment project" also means a redevelopment
project initiated as then provided by law and approved by the
governing body of the city prior to July 1, 1951, as prescribed
by Minnesota Statutes 1949, section 462.521.
Subd. 15. [HOUSING DEVELOPMENT PROJECT.] "Housing
development project" means any work or undertaking to provide
housing for persons of moderate income and their families. This
work or undertaking may include the planning of building and
improvements, the acquisition of real property which may be
needed immediately or in the future for housing purposes, the
construction, reconstruction, alteration and repair of new or
existing buildings and the provisions of all equipment,
facilities and other real or personal property for necessary,
convenient or desirable appurtenances, streets, sewers, water
service, utilities, site preparation, landscaping,
administrative, community health, recreation or welfare or other
purposes.
Subd. 16. [REDEVELOPMENT PLAN.] "Redevelopment plan" means
a plan approved by the governing body, or by an agency
designated by the governing body for the purpose of approving
such plans or authorized by law to do so, of each city in which
any of a redevelopment project is to be carried out, which plan
provides an outline for the development or redevelopment of the
area and is sufficiently complete (1) to indicate its
relationship to definite local objectives as to appropriate land
uses; and (2) to indicate general land uses and general
standards of development or redevelopment.
Subd. 17. [PERSONS OF LOW INCOME AND THEIR FAMILIES.]
"Persons of low income and their families" means persons or
families who lack a sufficient income to enable them, without
financial assistance, to live in decent, safe, and sanitary
dwellings, without overcrowding.
Subd. 18. [PERSONS OF MODERATE INCOME AND THEIR
FAMILIES.] "Persons of moderate income and their families" means
persons and families whose income is not adequate to cause
private enterprise to provide without governmental assistance a
substantial supply of decent, safe, and sanitary housing at
rents or prices within their financial means.
Subd. 19. [BONDS.] "Bonds" means any bonds, including
refunding bonds, notes, interim certificates, debentures, or
other obligations issued by an authority pursuant to sections 1
to 47.
Subd. 20. [REAL PROPERTY.] "Real property" includes all
lands, together with improvements and fixtures thereon, and
property of any nature appurtenant thereto, or used in
connection therewith, and every estate, interest, and right,
legal or equitable, therein, including terms for years.
Subd. 21. [OBLIGEE OF THE AUTHORITY; OBLIGEE.] "Obligee of
the authority" or "obligee" includes any bondholder, and the
federal government when it is a party to any contract with the
authority.
Subd. 22. [GENERAL PLAN FOR THE DEVELOPMENT OF THE
LOCALITY AS A WHOLE.] "General plan for the development of the
locality as a whole" means a plan adopted by a local planning
agency or approved by the governing body of the city
establishing general objectives for the future use of land in a
locality, or if no such plan has been adopted or approved, the
general land use proposals for the development of the locality
established from time to time by the local planning agency or by
the governing body of the city.
Subd. 23. [VETERANS.] "Veterans" has the meaning given in
section 197.447, except as otherwise defined in a contract with
the federal government providing for veterans' preferences, or
as may be required by any federal law or regulation as a
condition of federal financial assistance for a project.
Sec. 3. [469.003] [CITY HOUSING AND REDEVELOPMENT
AUTHORITY.]
Subdivision 1. [PRELIMINARY CITY FINDINGS AND
DECLARATION.] There is created in each city in this state a
public body, corporate and politic, to be known as the housing
and redevelopment authority in and for that city. No such
authority shall transact any business or exercise any powers
until the governing body of the city shall, by resolution, find
that in that city (1) substandard, slum, or blighted areas exist
which cannot be redeveloped without government assistance, or
(2) there is a shortage of decent, safe, and sanitary dwelling
accommodations available to persons of low income and their
families at rentals they can afford, and shall declare that
there is need for a housing and redevelopment authority to
function in that city. In determining whether dwelling
accommodations are unsafe or unsanitary, or whether substandard,
slum, or blighted areas exist, the governing body may consider
the degree of deterioration, obsolescence, or overcrowding, the
percentage of land coverage, the light, air, space, and access
available to inhabitants of the dwelling accommodations, the
size and arrangement of rooms, the sanitary facilities, the
extent to which conditions exist in the buildings that endanger
life or property by fire or other causes, and the original land
planning, lot layout, and conditions of title in the area.
Subd. 2. [PUBLIC HEARING.] The governing body of a city
shall consider such a resolution only after a public hearing is
held on it after publication of notice in a newspaper of general
circulation in the city at least once not less than ten days nor
more than 30 days prior to the date of the hearing. Opportunity
to be heard shall be granted to all residents of the city and to
all other interested persons. The resolution shall be published
in the same manner in which ordinances are published in the
municipality.
Subd. 3. [CONCLUSIVENESS OF RESOLUTION.] When the
resolution becomes finally effective, it shall be sufficient and
conclusive for all purposes if it declares that there is need
for an authority and finds in substantially the terms provided
in subdivision 1 that the conditions therein described exist.
Subd. 4. [COPY FILED WITH COMMISSIONER OF ENERGY AND
ECONOMIC DEVELOPMENT.] When the resolution becomes finally
effective, the clerk of the city shall file a certified copy of
it with the commissioner of energy and economic development. In
any suit, action, or proceeding involving the validity or
enforcement of or relating to any contract of an authority, the
authority shall be conclusively deemed to have become
established and authorized to transact business and exercise its
powers upon that filing. Proof of the resolution and of that
filing may be made in any such suit, action, or proceeding by a
certificate of the commissioner of energy and economic
development.
Subd. 5. [COMMISSIONERS.] An authority shall consist of
five commissioners, who shall be residents of the area of
operation of the authority, who shall be appointed after the
resolution becomes finally effective.
Subd. 6. [APPOINTMENT; APPROVAL; TERM; VACANCY.] The
commissioners shall be appointed by the mayor, with the approval
of the governing body. Those initially appointed shall be
appointed for terms of one, two, three, four, and five years,
respectively. Thereafter all commissioners shall be appointed
for five-year terms. Each vacancy in an unexpired term shall be
filled for the remainder of the term for which the original
appointment was made. Any member of the governing body of a
city may be appointed and may serve as a commissioner of the
authority for the city. The council of any city which appoints
members of the city council as commissioners may set the terms
of office of the commissioner to coincide with his term of
office as a council member.
Subd. 7. [CERTIFICATE OF APPOINTMENT; FILING.]
Commissioners shall hold office until their successors have been
appointed and qualified. A certificate of appointment of each
commissioner shall be filed with the clerk and a certified copy
shall be transmitted to the commissioner of energy and economic
development. A certificate so filed shall be conclusive
evidence of appointment.
Sec. 4. [469.004] [COUNTY AND MULTI-COUNTY HOUSING AND
REDEVELOPMENT AUTHORITIES.]
Subdivision 1. [PRELIMINARY COUNTY FINDINGS AND
DECLARATION.] There is created in each county in this state
other than Hennepin and Ramsey and other than those counties in
which a county housing authority has been created by special
act, a public body, corporate and politic, to be known as the
housing and redevelopment authority of that county, hereinafter
referred to as "county authority." No county authority shall
transact any business or exercise any powers until the governing
body of the county, by resolution, finds that there is need for
a county authority to function in the county. The governing
body shall consider the need for a county authority to function
(1) on the governing body's own motion or (2) upon the filing of
a petition signed by 25 qualified voters of the county asserting
that there is need for a county authority to function in the
county and requesting that the governing body so declare. The
governing body shall adopt a resolution declaring that there is
need for a county authority to function in the county if it
makes the findings required in section 3, subdivision 1.
Subd. 2. [MULTI-COUNTY AUTHORITIES.] If the governing body
of each of two or more cities or counties, or combinations of
cities and counties, hereinafter referred to as "political
subdivisions," by resolution declares that there is a need for
one housing and redevelopment authority to exercise in those
political subdivisions the powers and other functions prescribed
for a multi-county housing and redevelopment authority, a public
body corporate and politic to be known as a multi-county housing
and redevelopment authority shall exist for all of those
political subdivisions. That authority shall exercise its
powers and other functions in those political subdivisions in
lieu of the authority for each such political subdivision.
Subd. 3. [FINDINGS.] The governing body shall make that
declaration if it finds (a) that substandard, slum, or
deteriorated areas exist in the political subdivision which
cannot be redeveloped without government assistance, or there is
a shortage of decent, safe and sanitary dwelling accommodations
available to persons of low income at rentals or prices they can
afford, and (b) that a multi-county authority would be a more
effective, efficient or economical administrative unit than the
housing and redevelopment authority of the political subdivision
to carry out the purposes of sections 1 to 47, in the political
subdivision.
In determining whether dwelling accommodations are unsafe
or unsanitary a governing body may take into consideration the
factors provided in section 3.
Subd. 4. [SUFFICIENCY AND CONCLUSIVENESS OF RESOLUTION.]
When the resolution becomes finally effective, it shall be
deemed sufficient and conclusive for all purposes if it declares
that there is need for a county or multi-county authority and
finds in substantially the terms provided in subdivision 3 that
the conditions therein described exist.
Subd. 5. [FUNCTION OF AUTHORITY.] A county or multi-county
housing authority will serve, program, develop and manage all
housing programs under its jurisdiction. Where a county or
multi-county authority has been established, additional city
housing and redevelopment authorities shall not be created
within the area of operation of the county or multi-county
authority without the explicit concurrence of the county or
multi-county housing and redevelopment authority and the
commissioner of energy and economic development. City housing
and redevelopment authorities must petition the county or
multi-county authority for authorization to establish a local
housing authority and this petition must be approved by the
commissioner of energy and economic development. This
subdivision does not apply if a county or multi-county authority
has not initiated or does not have in progress an active program
or has not applied for a public housing or redevelopment program
from the federal government for a period of 12 months after its
establishment.
Subd. 6. [COPY FILED WITH COMMISSIONER OF ENERGY AND
ECONOMIC DEVELOPMENT.] When the resolution becomes finally
effective, the clerk of the political subdivision shall file a
certified copy with the commissioner of energy and economic
development. The provisions of section 3, subdivision 4,
regarding establishment of authorities apply to filings under
this subdivision.
Sec. 5. [469.005] [AREA OF OPERATION.]
Subdivision 1. [COUNTY AND MULTI-COUNTY AUTHORITIES.] The
area of operation of a county authority shall include all of the
county for which it is created, and in case of a multi-county
authority, it shall include all of the political subdivisions
for which the multi-county authority is created; provided, that
a county authority or a multi-county authority shall not
undertake any project within the boundaries of any city which
has not empowered the authority to function therein as provided
in section 4 unless a resolution has been adopted by the
governing body of the city, and by any authority which has been
established in the city, declaring that there is a need for the
county or multi-county authority to exercise its powers in the
city.
Subd. 2. [MULTI-COUNTY AUTHORITIES; INCREASE OR DECREASE.]
The area of operation of a multi-county authority shall be
increased to include one or more additional political
subdivisions not already within a multi-county authority if the
governing body of the additional political subdivision makes the
findings required by section 4 and if the political subdivisions
then included in the area of operation of the multi-county
authority and the commissioners of the multi-county authority
adopt a resolution declaring that the multi-county authority
would be a more effective, efficient or economical
administrative unit to carry out the purposes of sections 1 to
47 if the area of operation of the multi-county authority were
increased to include the additional political subdivision.
The area of operation of a multi-county authority may be
decreased to exclude one or more political subdivisions from the
area if the governing body of each of the political subdivisions
in the area and the commissioners of the multi-county authority
each adopt a resolution declaring that there is a need for
excluding the political subdivision from the area. No such
action may be taken if the multi-county authority has
outstanding any bonds involving a housing project in the
political subdivision to be excluded unless all holders of the
bonds consent in writing to the action. If the action decreases
the area of operation of the multi-county authority to only one
political subdivision, the authority shall become a housing and
redevelopment authority for that county or city in the same
manner as though the authority were initially created by and
authorized to exercise its powers in that county or city, and
the commissioners of that authority shall be appointed as
provided for the appointment of commissioners of a housing and
redevelopment authority created for a county or a city.
The governing body of each of the political subdivisions in
the area of operation of the multi-county authority and the
commissioners of the multi-county authority shall adopt a
resolution declaring that there is a need for excluding a
political subdivision from the area if:
(1) each governing body of the political subdivisions to
remain in the area of operation of the multi-county authority
and the commissioners of the multi-county authority find that,
because of facts arising or determined subsequent to the time
when the area first included the political subdivision to be
excluded, the multi-county authority would be a more effective,
efficient or economical administrative unit for the purposes of
sections 1 to 47 if the political subdivision were excluded from
the area; and
(2) the governing body of the political subdivision to be
excluded and the commissioners of the multi-county authority
each find that, because of those changed facts, the purposes of
sections 1 to 47 could be carried out more efficiently or
economically in the political subdivision if the area of
operation of the multi-county authority did not include the
political subdivision.
Subd. 3. [PUBLIC HEARING; NOTICE; PUBLICATION;
RESOLUTION.] The governing body of a political subdivision shall
not adopt any resolution authorized by this section and section
4 unless a public hearing has been held. The clerk of the
political subdivision shall give notice of the time, place, and
purpose of the public hearing not less than ten days nor more
than 30 days prior to the day on which the hearing is to be
held, in a manner appropriate to inform the public. Upon the
date fixed for the public hearing, an opportunity to be heard
shall be granted to all residents of the political subdivision
and to all other interested persons.
Subd. 4. [CONTINUATION OF ACTIVE CITY AUTHORITIES.] Active
city authorities established on or before June 30, 1971, will
continue to function and operate under the provisions of
sections 1 to 47. An "active city authority" means an authority
that (1) has been legally formulated and a resolution for which
has been filed with the commissioner of energy and economic
development and (2) has an active program or proof of an
application for a public housing or redevelopment program
received by the federal government on or before June 30, 1971.
Sec. 6. [469.006] [APPOINTMENT, QUALIFICATIONS AND TENURE
OF COMMISSIONERS.]
Subdivision 1. [COUNTY COMMISSIONERS.] When the governing
body of a county adopts a resolution under section 4, the
governing body shall appoint five persons as commissioners of
the county authority. The membership of the commission will
reflect an areawide distribution on a representative basis. The
commissioners who are first appointed shall be designated to
serve for terms of one, two, three, four and five years
respectively, from the date of their appointment. Thereafter
commissioners shall be appointed for a term of office of five
years except that all vacancies shall be filled for the
unexpired term. Persons may be appointed as commissioners if
they reside within the boundaries or area, and are otherwise
eligible for the appointments under sections 1 to 47.
Subd. 2. [MULTI-COUNTY COMMISSIONERS.] The governing body
in the case of a county, and the mayor with the approval of the
governing body in the case of a city, of each political
subdivision included in a multi-county authority shall appoint
one person as a commissioner of the authority at or after the
time of the adoption of the resolution establishing the
authority.
In the case of a multi-county authority comprising only two
or three political subdivisions, the appointing authorities of
the participating political subdivisions shall each appoint one
additional commissioner whose term of office shall be as
provided for a commissioner of a multi-county authority. If the
number of participants in the authority is increased to more
than three due to the subsequent addition of political
subdivisions, the appointments of the additional commissioners
shall be vacated.
When the area of operation of a multi-county authority is
increased to include an additional political subdivision, the
appointing authority of each additional political subdivision
shall appoint one or, if appropriate, two commissioners of the
multi-county authority.
The appointing authority of each political subdivision
shall appoint the successors of the commissioner appointed by
it. The commissioners of a multi-county authority shall be
appointed for terms of five years except that all vacancies
shall be filled for the unexpired terms.
Subd. 3. [CERTIFICATES OF APPOINTMENT.] A certified copy
of the certificate of appointment of each commissioner shall be
filed with the commissioner of energy and economic development.
Sec. 7. [469.007] [POWERS OF COUNTY AND MULTI-COUNTY
AUTHORITIES.]
A county or multi-county authority and its commissioners
shall, within the area of operation of the authority, have the
same functions, rights, powers, duties, privileges, immunities
and limitations as are provided for housing and redevelopment
authorities created for cities, and for the commissioners of
those authorities. The provisions of law applicable to housing
and redevelopment authorities created for cities and their
commissioners shall be applicable to county and multi-county
authorities and their commissioners, except as clearly indicated
otherwise.
Sec. 8. [469.008] [EFFECT UPON CITY HOUSING AND
REDEVELOPMENT AUTHORITIES.]
Nothing in sections 4 to 8 shall alter or impair the powers
and obligations of city housing and redevelopment authorities
created under Minnesota Statutes 1969, chapter 462, prior to
June 8, 1971, nor shall the area of operation of such city
authority be included within the area of operation of a county
or multi-county authority created pursuant to sections 4 to 8.
With the consent of the board of commissioners of a city
authority and the governing body of the city, a city authority
may become a part of a county or multi-county authority upon
assumption by the authority of the obligations of the city
authority.
Sec. 9. [469.009] [CONFLICT OF INTEREST; PENALTIES FOR
FAILURE TO DISCLOSE.]
Subdivision 1. [DISCLOSURE.] Before taking an action or
making a decision which could substantially affect the
commissioner's or an employee's financial interests or those of
an organization with which the commissioner or an employee is
associated, a commissioner or employee of an authority shall (a)
prepare a written statement describing the matter requiring
action or decision and the nature of the potential conflict of
interest and (b) submit the statement to the commissioners of
the authority. The disclosure shall be entered upon the minutes
of the authority at its next meeting. The disclosure statement
must be submitted no later than one week after the employee or
commissioner becomes aware of the potential conflict of
interest. However, no disclosure statement is required if the
effect on the commissioner or employee of the decision or act
will be no greater than on other members of the business,
profession or occupation or if the effect on the organization
with which the commissioner or employee is affiliated is
indirect, remote and insubstantial. A potential conflict of
interest is present if the commissioner or employee knows or has
reason to know that the organization with which the commissioner
or employee is affiliated is or is reasonably likely to become a
participant in a project or development which will be affected
by the action or decision. Any individual who knowingly fails
to submit a statement required by this subdivision or submits a
statement which the individual knows contains false information
or omits required information is guilty of a gross misdemeanor.
Subd. 2. [EFFECT OF DISCLOSURE.] If an employee has a
potential conflict of interest, the employee's superior shall
immediately assign the matter to another employee who does not
have a potential conflict of interest. A commissioner who has a
potential conflict of interest shall not attempt to influence an
employee in any matter related to the action or decision in
question, shall not take part in the action or decision, and
shall not be counted toward a quorum during the portion of any
meeting of the authority in which the action or decision is to
be considered. Any individual who knowingly violates this
subdivision is guilty of a gross misdemeanor.
Subd. 3. [CONFLICTS FORBIDDEN.] A commissioner or employee
of an authority who knowingly takes part in any manner in making
any sale, lease, or contract in the commissioner's or employee's
official capacity in which the commissioner or employee has a
personal financial interest is guilty of a gross misdemeanor.
Subd. 4. [AGENT OR ATTORNEY.] For one year after
termination of a position as a commissioner or employee of an
authority, no former commissioner or former employee of an
authority shall appear personally before any court or
governmental department or agency as agent or attorney for
anyone other than the authority in connection with any
proceeding, application, request for ruling or other
determination, contract, claim, controversy, charge, accusation,
arrest, or other particular matter in which the authority is
substantially interested, and with respect to which the
commissioner or employee took any action or made any decision as
a commissioner or employee of the authority at any time within a
period of one year prior to the termination of that position.
Subd. 5. [LIMITATIONS.] With respect to each program
established by the authority to provide financial assistance or
financing for real property other than rental assistance
programs, an employee or commissioner may receive such financial
assistance or financing not more than once.
Subd. 6. [INJUNCTION.] The county attorney may seek an
injunction in the district court to enforce the provisions of
this section.
Sec. 10. [469.010] [REMOVAL; HEARING; NOTICE.]
For inefficiency or neglect of duty, or misconduct in
office, a commissioner may be removed by the governing body of
the municipality. The commissioner must be given a copy of the
charges at least ten days prior to a hearing at which the
commissioner has an opportunity to be heard in person or by
counsel. When charges in writing have been preferred against a
commissioner, pending final action thereon the governing body
may temporarily suspend the commissioner. If it is found that
those charges have not been substantiated, the commissioner
shall immediately be reinstated in office. When any
commissioner is removed, a record of the proceedings, together
with the charges and findings thereon, shall be filed in the
office of the clerk.
Sec. 11. [469.011] [AUTHORITY OPERATIONS.]
Subdivision 1. [POWERS IN COMMISSIONERS; QUORUM.] The
powers of each authority shall be vested in its commissioners in
office at any time; a majority of whom shall constitute a quorum
for all purposes.
Subd. 2. [OFFICERS; BYLAWS.] Each authority shall select a
chairman and a secretary from among its commissioners and shall
adopt bylaws and other rules for the conduct of its affairs that
it deems appropriate.
Subd. 3. [MEETINGS.] The regular meetings of an authority
shall be held in a fixed place, except that meetings of a
multi-county authority may be held anywhere within the
boundaries of the area of operation of the authority or within
any additional area where the authority is authorized to
undertake a project, and shall be open to the public.
Subd. 4. [EXPENSES; COMPENSATION.] Each commissioner may
receive necessary expenses, including traveling expenses,
incurred in the performance of his duties. Each commissioner
may be paid $35 for attending each regular and special meeting
of the authority. The aggregate of all payments to each
commissioner for any one year shall not exceed $2,500.
Sec. 12. [469.012] [POWERS, DUTIES.]
Subdivision 1. [SCHEDULE OF POWERS.] An authority shall be
a public body corporate and politic and shall have all the
powers necessary or convenient to carry out the purposes of
sections 1 to 47, except that the power to levy and collect
taxes or special assessments is limited to the power provided in
sections 27 to 33. Its powers include the following powers in
addition to others granted in sections 1 to 47:
(1) to sue and be sued; to have a seal, which shall be
judicially noticed, and to alter it; to have perpetual
succession; and to make, amend, and repeal rules consistent with
sections 1 to 47;
(2) to employ an executive director, technical experts, and
officers, agents, and employees, permanent and temporary, that
it requires, and determine their qualifications, duties, and
compensation; for legal services it requires, to call upon the
chief law officer of the city or to employ its own counsel and
legal staff; so far as practicable, to use the services of local
public bodies in its area of operation, provided that those
local public bodies, if requested, shall make the services
available;
(3) to delegate to one or more of its agents or employees
the powers or duties it deems proper;
(4) within its area of operation, to undertake, prepare,
carry out, and operate projects and to provide for the
construction, reconstruction, improvement, extension,
alteration, or repair of any project or part thereof;
(5) subject to the provisions of section 26, to give, sell,
transfer, convey, or otherwise dispose of real or personal
property or any interest therein and to execute leases, deeds,
conveyances, negotiable instruments, purchase agreements, and
other contracts or instruments, and take action, that is
necessary or convenient to carry out the purposes of these
sections;
(6) within its area of operation, to acquire real or
personal property or any interest therein by gifts, grant,
purchase, exchange, lease, transfer, bequest, devise, or
otherwise, and by the exercise of the power of eminent domain,
in the manner provided by chapter 117, to acquire real property
which it may deem necessary for its purposes, after the adoption
by it of a resolution declaring that the acquisition of the real
property is necessary to eliminate one or more of the conditions
found to exist in the resolution adopted pursuant to section 3
or to provide decent, safe, and sanitary housing for persons of
low and moderate income, or is necessary to carry out a
redevelopment project. Real property needed or convenient for a
project may be acquired by the authority for the project by
condemnation pursuant to this section. This includes any
property devoted to a public use, whether or not held in trust,
notwithstanding that the property may have been previously
acquired by condemnation or is owned by a public utility
corporation, because the public use in conformity with the
provisions of sections 1 to 47 shall be deemed a superior public
use. Property devoted to a public use may be so acquired only
if the governing body of the municipality has approved its
acquisition by the authority. An award of compensation shall
not be increased by reason of any increase in the value of the
real property caused by the assembly, clearance or
reconstruction, or proposed assembly, clearance or
reconstruction for the purposes of sections 1 to 47 of the real
property in an area;
(7) within its area of operation, and without the adoption
of an urban renewal plan, to acquire, by all means as set forth
in clause (6) but without the adoption of a resolution provided
for in clause (6), real property, and to demolish, remove,
rehabilitate or reconstruct the buildings and improvements or
construct new buildings and improvements thereon, or to so
provide through other means as set forth in Laws 1974, chapter
228, or to grade, fill and construct foundations or otherwise
prepare the site for improvements. The authority may dispose of
the property pursuant to section 29, provided that the
provisions of section 29 requiring conformance to an urban
renewal plan shall not apply. The authority may finance these
activities by means of the redevelopment project fund or by
means of tax increments or tax increment bonds or by the methods
of financing provided for in section 33 or by means of
contributions from the municipality provided for in section 41,
clause (9), or by any combination of those means. Real property
with buildings or improvements thereon shall only be acquired
under this clause when the buildings or improvements are
substandard. The exercise of the power of eminent domain under
this clause shall be limited to real property which contains
buildings and improvements which are vacated and substandard.
For the purpose of this clause, substandard buildings or
improvements mean buildings or improvements that are dilapidated
or obsolescent, faultily designed, lack adequate ventilation,
light, or sanitary facilities, or any combination of these or
other factors that are detrimental to the safety or health of
the community;
(8) within its area of operation, to determine the level of
income constituting low or moderate family income. The
authority may establish various income levels for various family
sizes. In making its determination, the authority may consider
income levels that may be established by the federal housing
administration or a similar or successor federal agency for the
purpose of federal loan guarantees or subsidies for persons of
low or moderate income. The authority may use that
determination as a basis for the maximum amount of income for
admissions to housing development projects or housing projects
owned or operated by it;
(9) to provide in federally assisted projects any
relocation payments and assistance necessary to comply with the
requirements of the Federal Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, and any
amendments or supplements thereto;
(10) to make, or agree to make, payments in lieu of taxes
to the city or the county, the state or any political
subdivision thereof, that it finds consistent with the purposes
of sections 1 to 47;
(11) to cooperate with or act as agent for the federal
government, the state or any state public body, or any agency or
instrumentality of the foregoing, in carrying out any of the
provisions of sections 1 to 47 or of any other related federal,
state or local legislation; and upon the consent of the
governing body of the city to purchase, lease, manage, or
otherwise take over any housing project already owned and
operated by the federal government;
(12) to make plans for carrying out a program of voluntary
repair and rehabilitation of buildings and improvements, and
plans for the enforcement of laws, codes, and regulations
relating to the use of land and the use and occupancy of
buildings and improvements, and to the compulsory repair,
rehabilitation, demolition, or removal of buildings and
improvements. The authority may develop, test, and report
methods and techniques, and carry out demonstrations and other
activities for the prevention and elimination of slums and
blight;
(13) to borrow money or other property and accept
contributions, grants, gifts, services, or other assistance from
the federal government, the state government, state public
bodies, or from any other public or private sources;
(14) to include in any contract for financial assistance
with the federal government any conditions that the federal
government may attach to its financial aid of a project, not
inconsistent with purposes of sections 1 to 47, including
obligating itself (which obligation shall be specifically
enforceable and not constitute a mortgage, notwithstanding any
other laws) to convey to the federal government the project to
which the contract relates upon the occurrence of a substantial
default with respect to the covenants or conditions to which the
authority is subject; to provide in the contract that, in case
of such conveyance, the federal government may complete,
operate, manage, lease, convey or otherwise deal with the
project until the defaults are cured if the federal government
agrees in the contract to re-convey to the authority the project
as then constituted when the defaults have been cured;
(15) to issue bonds for any of its corporate purposes and
to secure the bonds by mortgages upon property held or to be
held by it or by pledge of its revenues, including grants or
contributions;
(16) to invest any funds held in reserves or sinking funds,
or any funds not required for immediate disbursement, in
property or securities in which savings banks may legally invest
funds subject to their control;
(17) within its area of operation, to determine where
blight exists or where there is unsafe, unsanitary, or
overcrowded housing;
(18) to carry out studies of the housing and redevelopment
needs within its area of operation and of the meeting of those
needs. This includes study of data on population and family
groups and their distribution according to income groups, the
amount and quality of available housing and its distribution
according to rentals and sales prices, employment, wages,
desirable patterns for land use and community growth, and other
factors affecting the local housing and redevelopment needs and
the meeting of those needs; to make the results of those studies
and analyses available to the public and to building, housing
and supply industries;
(19) if a local public body does not have a planning agency
or the planning agency has not produced a comprehensive or
general community development plan, to make or cause to be made
a plan to be used as a guide in the more detailed planning of
housing and redevelopment areas;
(20) to lease or rent any dwellings, accommodations, lands,
buildings, structures, or facilities included in any project
and, subject to the limitations contained in sections 1 to 47
with respect to the rental of dwellings in housing projects, to
establish and revise the rents or charges therefor;
(21) to own, hold, and improve real or personal property
and to sell, lease, exchange, transfer, assign, pledge, or
dispose of any real or personal property or any interest therein;
(22) to insure or provide for the insurance of any real or
personal property or operations of the authority against any
risks or hazards;
(23) to procure or agree to the procurement of government
insurance or guarantees of the payment of any bonds or parts
thereof issued by an authority and to pay premiums on the
insurance;
(24) to make expenditures necessary to carry out the
purposes of sections 1 to 47;
(25) to enter into an agreement or agreements with any
state public body to provide informational service and
relocation assistance to families, individuals, business
concerns and nonprofit organizations displaced or to be
displaced by the activities of any state public body;
(26) to compile and maintain a catalog of all vacant, open
and undeveloped land, or land which contains substandard
buildings and improvements as that term is defined in clause
(7), that is owned or controlled by the authority or by the
governing body within its area of operation and to compile and
maintain a catalog of all authority owned real property that is
in excess of the foreseeable needs of the authority, in order to
determine and recommend if the real property compiled in either
catalog is appropriate for disposal pursuant to the provisions
of section 29, subdivisions 9 and 10;
(27) to recommend to the city concerning the enforcement of
the applicable health, housing, building, fire prevention and
housing maintenance code requirements as they relate to
residential dwelling structures that are being rehabilitated by
low or moderate income persons pursuant to section 29,
subdivision 9 for the period of time necessary to complete the
rehabilitation, as determined by the authority; and
(28) to recommend to the city the initiation of municipal
powers, against certain real properties, relating to repair,
closing, condemnation, or demolition of unsafe, unsanitary,
hazardous, and unfit buildings, as provided in section 41,
clause (5).
Subd. 3. [EXERCISE OF POWERS.] An authority may exercise
all or any part or combination of the powers granted by sections
1 to 47 within its area of operation. Any two or more
authorities may join with one another in the exercise, either
jointly or otherwise, of any or all of their powers for the
purpose of financing, including the issuance of bonds and giving
security therefor, planning, undertaking, owning, constructing,
operating, or contracting with respect to a housing project
located within the area of operation of any one or more of the
authorities. For that purpose an authority may by resolution
prescribe and authorize any other housing authority, so joining
with it, to act on its behalf with respect to any or all powers,
as its agent or otherwise, in the name of the authority so
joining or in its own name.
A county or city may join with any authority to permit the
authority, on behalf of the county or city, to plan, undertake,
administer, and carry out a leased existing housing assistance
payments program, pursuant to section 8 of the United States
Housing Act of 1937 as amended, 42 United States Code, section
1437 f. A city may so join with an authority unless there is an
authority in the city which has been authorized by resolution
under section 3 to transact business or exercise powers. A
county may so join with an authority unless (a) there is a
county authority which has been authorized by resolution under
section 4 to exercise powers, or the county is a member of a
multicounty authority, and (b) the authority has initiated or
has in progress an active program or has applied for federal
assistance in a public housing or redevelopment program within
12 months after its establishment.
Subd. 4. [SUBJECT TO LAWS OF LOCALITY.] All projects shall
be subject to the planning, zoning, sanitary, and building laws,
ordinances, and regulations applicable to the locality in which
the project is situated.
Subd. 4a. [VETERANS' PREFERENCES.] An authority may
include in any contract with the federal government provision
for veterans' and service persons' preferences that may be
required by any federal law or regulation as a condition of
federal financial assistance for a project.
Subd. 5. [PAPERS SENT TO COMMISSIONER.] Each authority
shall transmit to the commissioner of energy and economic
development certified copies of (1) any application to the
federal government for financial assistance; (2) any proposed
contract with the federal government; (3) the urban
redevelopment plan and the urban redevelopment project documents
specified in sections 27, 28, and 29, and the annual urban
redevelopment budget; (4) the low-rent public housing
development program and the plans and layout, specifications and
drawings therefor including estimated cost, proposed method of
financing, and detailed estimates of expenses and revenues
thereof; (5) the low-rent public housing management program and
the annual or periodical management budget therefor, and
amendments of those documents, together with supporting data
requested by the commissioner.
Upon examination of the documents, the commissioner of
energy and economic development may make suggestions to the
authority upon the matters to which the documents relate, and
may make the suggestions public. The commissioner of energy and
economic development shall act in an advisory capacity and
nothing done by the commissioner under the provisions of this
subdivision shall affect the validity of any action of the
authority.
Subd. 6. [REHABILITATION LOANS AND GRANTS.] An authority
may develop and administer a housing rehabilitation loan and
grant program with respect to property located anywhere within
its boundaries which is owned by persons of low and moderate
income, on the terms and conditions it determines.
Subd. 7. [INTEREST REDUCTION PROGRAM.] An authority may
develop and administer an interest reduction program to assist
the financing of the construction, rehabilitation, and purchase
of housing units which are intended primarily for occupancy by
individuals of low or moderate income and related and
subordinate facilities. An authority may:
(1) pay in periodic payments or in a lump sum payment any
or all of the interest on loans made pursuant to chapter 462C or
subdivision 6;
(2) pay any or all of the interest on bonds issued pursuant
to chapter 462C, or pursuant to sections 1 to 47 for the purpose
of making loans authorized by subdivision 6;
(3) pay in periodic payments or in a lump sum payment any
or all of the interest on loans made by private lenders to
purchasers of housing units;
(4) pay any or all of the interest due on loans made by
private lenders to a developer for the construction or
rehabilitation of housing units;
(5) pay in periodic payments or in a lump sum payment any
or all of the interest on loans made by any person to a
developer for the construction, rehabilitation, and purchase of
commercial facilities which are related and subordinate to the
construction, rehabilitation, or purchase of housing units that
receive interest reduction assistance provided that the entire
development is composed primarily of housing units;
(6) pay any or all of the interest on bonds issued pursuant
to sections 153 to 166, when the bonds are issued for a project
that is related and subordinate to the construction,
rehabilitation, or purchase of housing units that receive
interest reduction assistance provided that the entire
development is composed primarily of housing units;
(7) pay in periodic payments or in a lump sum payment any
or all of the interest on loans made pursuant to section 185 for
the rehabilitation or preservation of small and medium sized
commercial buildings; and
(8) pay any or all of the interest on bonds issued pursuant
to section 185.
Subd. 8. [INTEREST REDUCTION PROGRAM; LIMITATIONS.] In
developing the interest reduction program authorized by
subdivision 7 the authority shall consider:
(1) the availability and affordability of other
governmental programs;
(2) the availability and affordability of private market
financing; and
(3) the need for additional affordable mortgage credit to
encourage the construction and enable the purchase of housing
units within the jurisdiction of the authority.
The authority shall adopt rules for the interest reduction
program. Interest reduction assistance shall not be provided if
the authority determines that financing for the purchase of a
housing unit or for the construction or rehabilitation of
housing units is otherwise available from private lenders upon
terms and conditions that are affordable by the applicant, as
provided by the authority in its rules.
For the purposes of this subdivision an "assisted housing
unit" is a housing unit which is rented or to be rented and
which is a part of a rental housing development where the
financing for the rental housing development is assisted with
interest reduction assistance provided by the authority during
the calendar year. If interest reduction assistance is provided
for construction period interest for a rental housing
development, the housing units in the housing development shall
be considered assisted housing units for a period after
occupancy of the housing units which is equal to the period
during which interest reduction assistance is provided to assist
the construction financing of the rental housing development.
In any calendar year when an authority provides interest
reduction assistance for assisted housing units (1) at least 20
percent of the total assisted housing units within the
jurisdiction of the authority shall be held available for rental
to families or individuals with an adjusted gross income which
is equal to or less than 80 percent of the median family income,
and (2) at least an additional 55 percent of the total assisted
housing units within the jurisdiction of the authority shall be
held available for rental to individuals or families with an
annual adjusted gross income which is equal to or less than 66
times 120 percent of the monthly fair market rent for the unit
established by the United States department of housing and urban
development. At least 80 percent of the aggregate dollar amount
of funds appropriated by an authority within any calendar year
to provide interest reduction assistance for financing of
construction, rehabilitation or purchase of single family
housing, as that term is defined in section 462C.02, subdivision
4, shall be appropriated for housing units that are to be sold
to or occupied by families or individuals with an adjusted gross
income which is equal to or less than 110 percent of median
family income. For the purposes of this subdivision, "median
family income" means the median family income established by the
United States department of housing and urban development for
the nonmetropolitan county or the standard metropolitan
statistical area, as the case may be. The adjusted gross income
may be adjusted by the authority for family size. The
limitations imposed upon assisted housing units by this
subdivision do not apply to interest reduction assistance for a
rental housing development located in a targeted area as defined
in section 462C.02. An authority that establishes a program
pursuant to this subdivision shall by January 2 each year report
to the commissioner of energy and economic development a
description of the program established and a description of the
recipients of interest reduction assistance.
Subd. 9. [INTEREST REDUCTION PROGRAM; REQUIRED
AGREEMENTS.] (a) Under any interest reduction program authorized
by subdivision 7, which provides interest reduction assistance
pursuant to clauses (1) to (6), the authority shall obtain an
agreement from the developer or other benefited owner of the
property. The agreement shall provide that, upon the benefited
owner's sale or transfer of the property, the authority shall be
paid in an amount determined under paragraph (b) and that this
obligation is secured by an interest in the property. The
interest in the property shall consist of either a right of
co-ownership or a lien or mortgage against the property and may
be subordinate to other interests in the property. For purposes
of this subdivision, "property" means property the construction,
acquisition or improvement of which is financed in whole or part
with the proceeds of a loan upon which the interest payments are
reduced under an interest reduction program.
(b)(i) The amount required to be paid to the authority
under paragraph (a) shall equal at least
(A) the sale price of the property, less
(B) the downpayment, any payments of principal, other
payments made to construct, acquire or improve the property and
any outstanding liens or mortgages securing loans, advances, or
goods and services provided for the construction, acquisition or
improvement of the property, less
(C) the amount, if any, which the authority determines
should be allowed for the developer or other benefited property
owner as a return on the developer's or other benefited property
owner's investment in the property, multiplied by
(D) a fraction, the numerator of which is the interest
reduction payments made by the authority and the denominator of
which is the total of the downpayment, all principal and
interest payments including any portion paid by the authority,
and other payments made to construct, acquire or improve the
property. In the case of a transfer, other than an arms-length
sale, an appraisal shall be substituted for the sale price.
(ii) If the interest reduction payments are made for a bond
issue, or other obligation, the proceeds of which are lent to
five or more purchasers of separate housing units, the fraction
under clause (b)(i)(D) may be determined on the basis of an
estimate of the aggregate factors for all the borrowers of the
proceeds, of the bonds or other obligations participating in the
interest reduction program.
The provisions of this subdivision shall not apply to
interest reduction assistance provided for construction period
interest for housing units which are to be sold upon completion
to purchasers who intend at the time of purchase to occupy the
housing units as their principal place of residence.
Subd. 10. [INTEREST REDUCTION PROGRAM.] The authority to
authorize payment of interest reduction assistance pursuant to
subdivisions 7, 8, and 9 shall expire on January 1, 1989.
Interest reduction assistance payments authorized prior to
January 1, 1989 may be paid after January 1, 1989.
Subd. 11. [AUTHORITIES CREATED PURSUANT TO SPECIAL
LAW.] Except as expressly limited by the special law
establishing the authority, an authority created pursuant to
special law shall have the powers granted by any statute to any
authority created pursuant to this chapter.
Sec. 13. [469.013] [ACCOUNTING.]
Subdivision 1. [ANNUAL REPORTS, DUTIES OF STATE AUDITOR.]
Each authority shall keep an accurate account of all its
activities and of all its receipts and expenditures. The
authority shall annually, in January for accounts kept on a
calendar year basis, and within 30 days of the end of its fiscal
year for accounts kept on a fiscal year basis, make a report on
the accounts to the commissioner of energy and economic
development, the state auditor, and the governing body of the
city. The reports shall be in a form prescribed by the
commissioner of energy and economic development. All powers
conferred and duties imposed upon the state auditor with respect
to state and county officers, institutions, property and
improvements shall also be exercised and performed by the state
auditor with respect to authorities, except the power to
prescribe the form of reports or accounts provided in sections 1
to 47. The state auditor shall make audits of the low rent
public housing funds of the authorities that are deemed to be in
the public interest, and shall file a written report covering
the audits with the authority, the city clerk of the
municipality, and the commissioner of energy and economic
development. The first report of the state auditor shall
include all expenditures and activities of the local authority
from the creation of the authority. Each authority shall be
liable to the state and shall pay all costs and expenses of the
examination, from funds available for those purposes.
Subd. 2. [COMMISSIONER OF ENERGY AND ECONOMIC DEVELOPMENT;
POWERS, DUTIES.] The commissioner of energy and economic
development may investigate the affairs of authorities and their
dealings, transactions, and relationships. The commissioner may
examine the properties and records of authorities and prescribe
methods of accounting and the rendering of periodical reports in
relation to projects undertaken by authorities. In prescribing
the form of accounts the commissioner of energy and economic
development shall take into consideration any requirements of
the federal government under any contract with an authority.
The commissioner of energy and economic development may adopt,
amend, and repeal rules prescribing standards and stating
principles governing the planning, construction, maintenance,
and operation of projects by authorities. Compliance with
sections 1 to 47 and the rules adopted by the commissioner of
energy and economic development may be enforced by the
commissioner by a proceeding in equity.
Sec. 14. [469.014] [LIABLE IN CONTRACT OR TORT.]
An authority shall be liable in contract or in tort in the
same manner as a private corporation. The commissioners of an
authority shall not be personally liable as such on its
contracts, or for torts not committed or directly authorized by
them. The property or funds of an authority shall not be
subject to attachment, or to levy and sale on execution, but, if
an authority refuses to pay a judgment entered against it in any
court of competent jurisdiction, the district court for the
county in which the authority is situated may, by writ of
mandamus, direct the treasurer of the authority to pay the
judgment.
Sec. 15. [469.015] [LETTING OF CONTRACTS; PERFORMANCE
BONDS.]
Subdivision 1. [BIDS; NOTICE.] All construction work, and
work of demolition or clearing, and every purchase of equipment,
supplies, or materials, necessary in carrying out the purposes
of sections 1 to 47, that involve expenditure of $15,000 or more
shall be awarded by contract. Before receiving bids the
authority shall publish, once a week for two consecutive weeks
in an official newspaper of general circulation in the community
a notice that bids will be received for that construction work,
or that purchase of equipment, supplies, or materials. The
notice shall state the nature of the work and the terms and
conditions upon which the contract is to be let, naming a time
and place where bids will be received, opened and read publicly,
which time shall be not less than seven days after the date of
the last publication. After the bids have been received, opened
and read publicly and recorded, the authority shall award the
contract to the lowest responsible bidder, provided that the
authority reserves the right to reject any or all bids. Each
contract shall be executed in writing, and the person to whom
the contract is awarded shall give sufficient bond to the
authority for its faithful performance. If no satisfactory bid
is received, the authority may readvertise. The authority may
establish reasonable qualifications to determine the fitness and
responsibility of bidders and to require bidders to meet the
qualifications before bids are accepted.
Subd. 2. [EXCEPTION; EMERGENCY.] If the authority by a
vote of four-fifths of its members shall declare that an
emergency exists requiring the immediate purchase of any
equipment or material or supplies at a cost in excess of $15,000
but not exceeding $30,000, or making of emergency repairs, it
shall not be necessary to advertise for bids, but the material,
equipment, or supplies may be purchased in the open market at
the lowest price obtainable, or the emergency repairs may be
contracted for or performed without securing formal competitive
bids. An emergency, for purposes of this subdivision, shall be
understood to be unforeseen circumstances or conditions which
result in the placing in jeopardy of human life or property.
Subd. 3. [PERFORMANCE BONDS.] Performance bonds shall be
required from contractors for any works of construction as
provided in and subject to all the provisions of sections 574.26
to 574.31 except for contracts entered into by an authority for
an expenditure of less than $15,000.
Subd. 4. [EXCEPTION; CERTAIN PROJECTS.] An authority need
not require either competitive bidding or performance bonds in
the case of a contract for the acquisition of a low rent housing
project for which financial assistance is provided by the
federal government, and which does not require any direct loan
or grant of money from the municipality as a condition of the
federal financial assistance, and where the contract provides
for the construction of such a project upon land not owned by
the authority at the time of the contract, or owned by the
authority for redevelopment purposes, and provides for the
conveyance or lease to the authority of the project or
improvements upon completion of construction.
Sec. 16. [469.016] [LOW RENT HOUSING.]
An authority shall not initiate any low rent housing
project, and shall not enter into any contract with respect to
it, until (1) it has made findings, after an analysis of the
local housing market, that (i) there is need for such low rent
housing which cannot be met by private enterprise and (ii) a gap
of at least 20 percent exists between the upper shelter rental
limits for admission to the proposed low rent housing and the
lowest shelter rents at which private enterprise is providing
through new construction and existing structures a substantial
supply of decent, safe and sanitary housing; and (2) the
governing body of the municipality has by resolution affirmed
those findings of the authority and approved the provision of
that low rent housing project. This subdivision shall not apply
to any public low rent housing projects for which financial
assistance is provided by the federal government, and which does
not require any direct loan or grant of money from the
municipality as a condition of a federal financial assistance.
An authority shall not make any contract with the federal
government for a low rent housing project unless the governing
body of the municipality has by resolution approved the
provision of that low rent housing project.
Sec. 17. [469.017] [HOUSING DEVELOPMENT PROJECTS.]
Before carrying out a housing development project an
authority must find that the project is necessary to alleviate a
shortage of decent, safe and sanitary housing for persons of low
or moderate income and their families as such income is
determined by the authority. No housing development project
involving the use of the power of eminent domain shall be
carried out by an authority without the prior approval of the
governing body of the municipality in which the project is
located. A housing development project or any interest therein
may be sold or leased to private developers before, during or
after the completion of construction of improvements thereon.
The sale or lease shall be in accordance with the provisions of
section 29, subdivisions 2, 5 and 7, except that the provisions
requiring conformance to a redevelopment plan shall not be
applicable. The sale or lease may be made for other than
housing purposes if the authority finds that changed
circumstances arising subsequent to the acquisition of the
project make a sale or lease for housing purposes inappropriate.
Nothing in this section shall limit the power of the authority
to acquire or dispose of real property pursuant to sections 12,
subdivision 1, clause (7), and 29, subdivisions 9 and 10, except
that any exercise of the power of eminent domain pursuant to
section 12, subdivision 1, clause (7), shall not be carried out
by an authority without the prior approval of the governing body
of the municipality in which the housing development project is
located. The authority shall have the power to transfer such
real property in accordance with the provisions of sections 12,
subdivision 1, clause (7), and 29, subdivisions 9 and 10,
before, during or after the completion of construction,
rehabilitation, or improvements thereon, except that the
transfer shall be in accordance with the provisions of section
29, subdivisions 2, 5, and 7 except as elsewhere provided in
Laws 1974, chapter 228.
Sec. 18. [469.018] [RENTALS.]
Subdivision 1. [BASIS OF CHARGE.] Each authority shall
manage and operate its housing projects in an efficient manner
to enable it to fix the rentals or payments for dwelling
accommodations at rates consistent with its providing decent,
safe, and sanitary dwelling accommodations for persons of low
income. No authority shall construct or operate any housing
project for profit, or as a source of revenue to the
municipality. An authority shall fix the rentals or payments
for dwellings in its projects at no higher rates than it shall
find to be necessary in order to produce revenues which,
together with all other available moneys, revenues, income, and
receipts of the authority, will be sufficient (1) to pay, as
they become due, the principal and interest on the bonds of the
authority; (2) to create and maintain reserves required to
assure the payment of principal and interest as they become due
on its bonds; (3) to meet the cost of, and to provide for,
maintaining and operating the projects, including necessary
reserves and the cost of any insurance, and the administrative
expenses of the authority; and (4) to make payments in lieu of
taxes that it determines are consistent with the maintenance of
the low rent character of projects.
Subd. 2. [REALTORS.] With respect to the management and
operation of a housing project the authority may employ reliable
real estate operators or firms or brokers or the municipality to
perform those services for it. No such real estate operators or
firms or brokers or the municipality shall have any authority in
tenant selection or the fixing of rentals. Each authority
employing real estate operators or firms or brokers or the
municipality shall require the execution of a contract of
employment stating the terms and conditions under which the
services are to be performed, which shall be subject to the
approval of the commissioner of energy and economic development.
Sec. 19. [469.019] [RENTALS, TENANT ADMISSIONS.]
In the operation or management of housing projects an
authority shall observe the following duties with respect to
rentals and tenant admissions.
(a) It may rent or lease the dwelling accommodations only
to persons of low income and at rentals within their ability to
pay.
(b) It may rent or lease to a tenant dwelling
accommodations consisting of the number of rooms it deems
necessary to provide safe and sanitary accommodations to the
proposed occupants, without overcrowding, but no greater number.
(c) It shall not approve a family as tenant in a housing
project if the family has an aggregate annual net income from
all sources at the time of admission which exceeds five times
the annual rental for the accommodations to be provided the
family. As used in this section, aggregate annual net income
shall not include:
(1) the income of a family member, other than the head of
the household or his spouse, who is under 18 years of age or who
is a full time student;
(2) the first $300 of the income of a secondary wage earner
who is the spouse of the head of the household;
(3) $300 for each member of the family residing in the
household, other than the head of the household or his spouse,
who is under 18 years of age or who is 18 years of age or older
and is disabled, handicapped or a full time student;
(4) nonrecurring income as defined by the authority;
(5) five percent of the family's gross income from all
sources or, in the case of an elderly family, ten percent of the
family's gross income;
(6) amounts paid or incurred for which the family is liable
for extraordinary medical expenses or other expenses resulting
from unusual circumstances as determined by the authority; and
(7) an amount equal to the money received by the head of
the household or his spouse from or under the direction of any
public or private nonprofit child placing agency for the care
and maintenance of one or more persons who are under 18 years of
age and were placed in the family by that agency.
(d) In computing the rental for the purpose of this
section, there shall be included in the rental the average
annual cost, as determined by the authority, to occupants of
heat, water, electricity, gas, cooking fuel, and other necessary
services or facilities, whether or not the charge for the
services and facilities is included in the rental. An authority
may adopt as its maximum net income for admission of families
any maximum which is less than either: (1) the maximum net
family income computed under this section; or (2) the maximum
net family income determined pursuant to section 22; or (3) the
maximum net family income determined pursuant to the housing and
community development act of 1974.
Sec. 20. [469.020] [DISCRIMINATION PROHIBITED, DISPLACED
FAMILIES.]
There shall be no discrimination in the selection of
tenants because of race or religious, political, or other
affiliations, but, if the number of qualified applicants for
dwelling accommodations exceeds the dwelling units available,
preference shall be given to inhabitants of the municipality in
which the project is located, and to the families who occupied
the dwellings eliminated by demolition, condemnation, and
effective closing as part of the project, as far as is
reasonably practicable without discrimination against families
living in other substandard areas within the same municipality.
Sec. 21. [469.021] [PREFERENCES.]
As between applicants equally in need and eligible for
occupancy of a dwelling and at the rent involved, preference
shall be given to families of service persons who died in
service and to families of veterans. In admitting families of
low income to dwelling accommodations in any housing project an
authority shall, as far as is reasonably practicable, give
consideration to applications from families to which aid for
dependent children is payable, and to resident families to whom
public assistance or supplemental security income for the aged,
blind and disabled is payable, when those families are otherwise
eligible.
Sec. 22. [469.022] [ESTABLISHMENT OF INCOME RESTRICTION.]
The dwellings in public low-rent housing shall be available
solely for families whose net family income does not exceed the
maximum net family income falling within the lowest 20 percent
by number of all family incomes in the area of operation as such
maximum net family income has been determined by the authority.
Each year, this restriction shall be re-examined by the
commissioner of energy and economic development, and a public
hearing shall be held by the commissioner of energy and economic
development to determine whether administrative or interpretive
difficulties or unsatisfactory progress in the provision of
low-rent housing or redevelopment require a modification of that
income restriction. Upon the conclusion of that hearing, the
commissioner of energy and economic development shall modify the
restriction set out in this section to the extent required to
make satisfactory progress in the provision of low-rent housing
or redevelopment.
Sec. 23. [469.023] [PERIODIC INVESTIGATION OF TENANT.]
An authority shall make periodic investigations of each
family admitted to a low-rent housing project and, on the basis
of the investigations, shall determine whether that family at
the time of its admission (1) lived in an unsafe, unsanitary, or
overcrowded dwelling or had been displaced by a project or by
off-site elimination in compliance with the equivalent
elimination requirement hereof, or actually was without housing,
or was about to be without housing as a result of a court order
of eviction, due to causes other than the fault of the tenant,
and (2) had a net family income not exceeding the income limits
for admission of families of low income to the housing; provided
that the requirement in clause (1) shall not be applicable in
the case of the family of any veteran who has been discharged,
other than dishonorably, from, or the family of any service
person who died in, the armed forces of the United States, if
that family had made application for admission to the project
within any time limit specified by federal law applicable to
federal financial assistance for the project. If it is found
upon investigation that the net income of any families have
increased beyond the maximum income limits fixed pursuant to
section 22 for continued occupancy in the housing, those
families shall be required to move from the project.
Sec. 24. [469.024] [POWER OF AUTHORITY.]
Nothing contained in sections 16 to 24 shall be construed
as limiting the power of an authority (1) with respect to a
housing project to vest in an obligee the right, in the event of
a default by the authority, to take possession or cause the
appointment of a receiver of the project, free from the
restrictions imposed by this section or section 23; or (2) with
respect to a redevelopment project, in the event of a default by
a purchaser or lessee of land, to acquire property and operate
it free from such restrictions.
Sec. 25. [469.025] [DEMOLITION OF UNSAFE OR UNSANITARY
BUILDINGS.]
No project for low-rent housing or the clearance of a
blighted area involving the construction of new dwellings shall
be undertaken by a housing authority unless, subsequent to the
initiation of the project, there has been or will be elimination
by demolition, condemnation and effective closing, or compulsory
repair, of unsafe or unsanitary buildings situated in the area
of operation substantially equal in number to the number of
dwelling units provided by the project. The elimination may,
upon approval by the commissioner of energy and economic
development, be deferred for a period determined by the
commissioner if the shortage of decent, safe, or sanitary
housing available to families of low income is so acute as to
force dangerous overcrowding of those families.
Sec. 26. [469.026] [EXISTING BUILDINGS; ACQUISITION,
REPAIR.]
An authority may purchase, lease, or otherwise acquire
existing buildings for rehabilitation into low-rent housing.
The provisions of sections 1 to 47 relating to other low-rent
housing projects shall apply to the projects. Before proceeding
with the project, an authority shall make an analysis
demonstrating:
(1) the buildings to be acquired or leased shall be in such
condition that it is feasible to remodel, repair, or reconstruct
them and that the buildings, when rehabilitated will provide
decent, safe, and sanitary housing;
(2) the rehabilitation of the buildings comprising the
project will prevent or arrest the spread of blight so as to
protect the neighborhood in which the buildings are located; and
(3) the rehabilitated buildings will provide low-rent
housing, will help to conserve the existing housing supply, and
will otherwise accomplish the purposes of sections 1 to 47.
Nothing in this section shall limit the powers of an
authority with respect to a redevelopment project.
Sec. 27. [469.027] [REDEVELOPMENT PLAN.]
Any person may submit a redevelopment plan to an authority,
or an authority may consider a redevelopment plan on its own
initiative. An authority shall immediately transmit the plan to
the planning agency of the city in which the area to be
redeveloped is situated, for its study, or, if no planning
agency exists, the plan shall be submitted to an agency
indicated by the governing body of the city. An authority shall
request the written opinion of the planning or other agency on
all redevelopment plans submitted to it prior to approving those
redevelopment plans, and the planning or other agency shall
submit its written opinion within 30 days.
Sec. 28. [469.028] [MUNICIPAL GOVERNING BODY.]
Subdivision 1. [FINDINGS, NOTICE, DETERMINATION.] When an
authority determines that a redevelopment project should be
undertaken, it shall apply to the governing body of the city in
which the project is located for approval. The application
shall be accompanied by a redevelopment plan, a statement of the
method proposed for financing the project, and the written
opinion of the planning agency, if there is one. Before
approving any redevelopment plan, the governing body shall hold
a public hearing thereon after published notice in a newspaper
of general circulation in the municipality at least once not
less than ten days nor more than 30 days prior to the date of
the hearing.
Subd. 2. [FINDINGS, NOTICE, DETERMINATION; GOVERNING
BODY.] The authority shall not proceed with the project unless
the governing body finds by resolution that:
(1) the land in the project area would not be made
available for redevelopment without the financial aid to be
sought;
(2) the redevelopment plans for the redevelopment areas in
the locality will afford maximum opportunity, consistent with
the needs of the locality as a whole, for the redevelopment of
the areas by private enterprise; and
(3) the redevelopment plan conforms to a general plan for
the development of the locality as a whole.
The governing body shall within 30 days after submission of
the application, or resubmission as hereinafter provided, give
written notice to the authority of its decision with respect to
the project. When an authority has determined the location of a
proposed redevelopment project, it may, without awaiting the
approval of the governing body, proceed, by option or otherwise,
to obtain control of the real property within the area, but it
shall not, without the prior approval by the governing body of
the redevelopment plan, unconditionally obligate itself to
purchase any such property. A plan which has not been approved
by the governing body when submitted to it may be again
submitted to it with the modifications necessary to meet its
objections. Once approved, the determination of the authority
to undertake the project and the resolution of the governing
body shall be conclusive, in any condemnation proceeding, of the
public need for the project.
Subd. 3. [ACQUISITION OF OPEN LAND.] A redevelopment
project may include any work or undertaking to acquire open or
undeveloped land determined to be blighted by virtue of the
following conditions:
(1) unusual and difficult physical characteristics of the
ground;
(2) the existence of faulty planning characterized by the
subdivision or sale of lots laid out in disregard of the
contours or of irregular form and shape or of inadequate size;
or
(3) a combination of these or other conditions which have
prevented normal development of the land by private enterprise
and have resulted in a stagnant and unproductive condition of
land potentially useful and valuable for contributing to the
public health, safety and welfare. Acquisition of such land
shall be a redevelopment project only if a redevelopment plan
has been adopted which provides for the elimination of these
conditions, thereby making the land useful and valuable for
contributing to the public health, safety and welfare and the
acquisition of the land is necessary to carry out the
redevelopment plan.
Subd. 4. [ACQUISITION OF UNUSED OR INAPPROPRIATELY USED
LAND.] A redevelopment project may include any work or
undertaking to acquire land or space that is vacant, unused,
underused or inappropriately used, including infrequently used
rail yards and rail storage facilities, and excessive or vacated
railroad rights-of-way; air rights over streets, expressways,
railroads, waterways, and similar locations; land which is
occupied by functionally obsolete nonresidential buildings, or
is used for low utility purposes, or is covered by shallow
water, or is subject to periodic flooding, or consists of unused
or underused slips or dock areas or other waterfront property.
This subdivision applies only to land or space that the
authority determines may be developed at a cost reasonably
related to the public purpose to be served without major
residential clearance activities, and with full consideration of
the preservation of beneficial aspects of the urban and natural
environment, for uses that are consistent with emphasis on
housing for low and moderate income families. These uses
include the provision of schools, hospitals, parks and other
essential public facilities and, where appropriate, all uses
associated with new community development programs as defined in
the United States urban growth and new community development act
of 1970, as amended, or similar large scale undertakings related
to inner city needs, including concentrated sources of
employment.
Subd. 5. [EARLY ACQUISITION.] When an authority has
determined the location of a proposed redevelopment project, but
prior to the approval of the redevelopment plan and project as
provided in subdivision 2, the authority may acquire individual
tracts of real property with the approval of the governing body
as to each separate tract. Before approving early acquisition,
the governing body shall hold a public hearing on the proposed
acquisition activities after published notice in a newspaper of
general circulation in the municipality at least once not less
than ten days nor more than 30 days prior to the date of the
hearing.
The authority shall not proceed with the acquisition unless
the governing body finds by resolution that (1) the proposed
acquisition is necessary to carry out public improvements in the
area, or that the acquisition will contribute to the elimination
of blight or deterioration within the area or that the
acquisition is necessary to relieve hardship; and (2) there is a
feasible method for the relocation of families and individuals
to be displaced by the proposed acquisition.
The governing body may, in approving early acquisition,
agree to assume the responsibility for any loss that may arise
as a result of the acquisition of land and related activities,
including any costs of demolition, removal and relocation, in
the event that the property so acquired is not used for urban
renewal purposes because the urban renewal plan is not approved,
or is amended to omit the acquired property or is abandoned for
any reason. Nothing in this subdivision shall be construed to
waive the requirement for public hearing upon the redevelopment
plan for the redevelopment project.
Sec. 29. [469.029] [DISPOSAL OF PROPERTY.]
Subdivision 1. [SALE, LEASE, OR DEVELOPMENT.] In
accordance with a redevelopment plan, an authority may make any
of its land in a redevelopment project available for use by
private individuals, firms, corporations, partnerships,
insurance companies, or other private interests, or by public
agencies, by sale, lease, or otherwise, or the authority itself
may retain property for redevelopment by it. The land shall be
made available at a price that shall, except as provided for in
subdivisions 9 and 10, take into consideration the estimated
fair market or rental value of the cleared land as determined
pursuant to section 32, for proposed uses in accordance with the
redevelopment plan.
Subd. 2. [NOTICE; PUBLIC HEARING; DETERMINATION; TERMS AND
CONDITIONS.] Any such lease or sale may be made without public
bidding but only after a public hearing, after published notice,
by the authority at least once not less than ten days nor more
than 30 days prior to the date of the hearing upon the proposed
lease or sale and the provisions thereof. The terms of any such
lease shall be fixed by the authority, and the instrument of
lease may provide for renewals upon reappraisals and with
rentals and other provisions adjusted to the reappraisals.
Every such lease or sale shall provide that the lessee or
purchaser shall carry out or cause to be carried out the
approved project area redevelopment plan or approved
modifications thereof and that no use shall be made of any land
or real property included in the lease or sale nor any building
or structure erected thereon which does not conform to the
approved plan or approved modifications thereof. In the
instrument of lease or sale the authority may include other
terms, conditions, and provisions in the judgment of the
authority will provide reasonable assurance of the priority of
the obligations of the lease or sale and of conformance to the
plan over any other obligations of the lessee or purchaser, and
also assurance of the financial and legal ability of the lessee
or purchaser to carry out and conform to the plan and the terms
and conditions of the lease or sale, to begin the building of
any improvements within a period of time which the authority
fixes as reasonable. The instrument shall also include the
terms, conditions and specifications concerning buildings,
improvements, sub-leases, or tenancies, maintenance and
management, and any other related matters the authority may
reasonably impose or approve, including provisions whereby the
obligations to carry out and conform to the project area plan
shall run with the land. If maximum rentals to be charged to
tenants of housing are specified, provision may be made for
periodic reconsideration of the rental bases, with a view to
proposing modification of the project area plan with respect to
the rentals.
Subd. 3. [PROPERTY DEVOTED TO PUBLIC USES; TRANSFER.]
After the property in a project area has been assembled by an
authority, the authority may transfer by deed to local public
bodies those pieces of property which, in accordance with the
redevelopment plan, are to be devoted to public uses, other than
public housing or redevelopment purposes. Except for property
transferred by dedication, gift, or exchange, the transferee
body shall pay to the authority the sum agreed upon, and, in the
absence of agreement, the sum determined by arbitration. The
authority shall reimburse the redevelopment project fund the
fair use value of any property in a redevelopment project
transferred to a public low-rent housing project.
Subd. 4. [DISPOSITION IN PARTS.] The authority may lease
or sell parts of a project area separately to any persons. Any
such sale or lease of a part or parts of a project area shall be
subject to the provisions of this section, excluding property
required for public low-rent housing projects.
Subd. 5. [LIMITATION UPON DISPOSAL BY PURCHASER.] Until
the authority certifies that all building constructions and
other physical improvements specified to be done and made by the
purchaser of the area have been completed, the purchaser shall
not convey the area, or any part thereof, without the consent of
the authority. Consent shall not be given unless the grantee or
mortgagee of the purchaser is obligated by written instrument to
the authority to carry out that portion of the redevelopment
plan which falls within the boundaries of the conveyed property,
and also that the grantee, the grantee's heirs, representatives,
successors, and assigns, shall not convey, lease, or let the
conveyed property or any part thereof, or erect or use any
building or structure erected thereon, except in conformance
with the approved project area redevelopment plan or approved
modifications thereof.
Subd. 6. [MODIFICATION OF PLAN.] A redevelopment plan may
be modified at any time. The modification must be adopted by
the authority and the governing body of the political
subdivision in which the project is located, upon the notice and
after the public hearing required for the original adoption of
the redevelopment plan. If the authority determines the
necessity of changes in an approved redevelopment plan or
approved modification thereof, which changes do not alter or
affect the exterior boundaries, and do not substantially alter
or affect the general land uses established in the plan, the
changes shall not constitute a modification of the redevelopment
plan nor require approval by the governing body of the political
subdivision in which the project is located.
Subd. 7. [PURCHASER OR LESSEE TO FURNISH PERFORMANCE
BOND.] As security for its fulfillment of the agreement with the
authority, a purchaser or lessee shall furnish a performance
bond, with the surety and in the form and amount the authority
may approve, or make any other guaranty the authority deems
necessary in the public interest. If the authority finds that
the redevelopment is not being carried out or maintained in
accordance with the contract terms and conditions, or there is a
failure to prosecute the work with diligence, or to assume its
completion on time, it shall notify the purchaser or lessee and
the surety in writing of the noncompliance. Unless the
purchaser or lessee complies with the terms of agreement within
20 days from the date of the notice, the authority may take over
the work and may cause the work to be done, and the cost of the
work shall be paid by the surety. The authority may take
possession of and utilize in completion of the work the
materials, appliances, and plant as may be on the site of the
work and necessary for it.
Subd. 8. [DISCRIMINATION FORBIDDEN.] There shall be no
discrimination in the use of any land in a redevelopment project
because of race or religious, political, or other affiliations.
Subd. 9. [SALE, GRANT OR DEVELOPMENT.] With or without
accordance to a redevelopment plan, an authority may make any of
its lands in a project that are vacant, open and undeveloped or
lands that contain vacated residential dwelling structures that
are substandard as that term is defined in section 12,
subdivision 1, clause (7), available for use by sale, lease,
grant, transfer, conveyance, or otherwise to persons or families
of low and moderate income. The property shall be made
available at a price which may take into consideration the
estimated fair market value of the real estate, as determined
pursuant to section 32, if the low or moderate income persons or
families have the financial ability or building trade skills, as
determined by the authority, to build on the vacant, open and
undeveloped land or to repair, improve or rehabilitate the
residential dwelling structures, so as to conform with the
applicable state, county, or city, health, housing, building,
fire prevention and housing maintenance codes within a
reasonable period of time as determined by the authority. The
authority may require an agreement from those persons or
families of low or moderate income to build on the lands or to
repair, improve, or rehabilitate the residential dwelling
structures within a reasonable period of time so as to conform
to the codes as a condition to final legal title to the lands
and the residential dwelling units. Nothing in Laws 1974,
chapter 228 shall prohibit an authority from making
rehabilitation loans and grants, pursuant to section 12,
subdivision 6, or procuring other authorized financial
assistance for persons or families of low and moderate income
who acquire real property pursuant to this section, in
furtherance of the objectives of this section.
Subd. 10. [EXCESS LAND.] On or before December 31 each
year, each authority shall make a survey of all lands held,
owned or controlled by it to determine what land, including air
rights, is in excess of its foreseeable needs. A description of
each parcel found to be in excess of foreseeable needs shall be
made a matter of public record. Any low or moderate income
resident or nonprofit housing corporation shall upon request be
provided with a list of the parcels without charge. With or
without accordance to a redevelopment plan, an authority may
make the excess lands available for use as a housing or housing
development project by a nonprofit housing corporation by sale,
lease, grant, transfer, conveyance or otherwise. The price may
take into consideration the estimated fair market or rental
value of the real property, as determined pursuant to section 32
and upon terms and conditions, notwithstanding any other
provisions of law to the contrary, that the authority deems to
be best suited to the development of the parcel for housing
available to persons and families of low and moderate income.
Sec. 30. [469.030] [TEMPORARY RELOCATION OF DISPLACED
FAMILIES.]
Prior to its approval of any redevelopment plan, the
authority shall be satisfied that there is a feasible method for
the temporary relocation of families to be displaced from the
project area, and that there are available or will be provided,
in the project area or in other areas not less desirable in
regard to public utilities and public and commercial facilities
and at rents or prices within the financial means of the
families displaced from the project area, decent, safe, and
sanitary dwellings equal in number to the number of the
displaced families.
Sec. 31. [469.031] [PROVISIONAL ACCEPTANCE BY AUTHORITY OF
FUND OR PROPERTY.]
As an aid in the acquisition of the real property of a
project area, the authority may accept a fund, or, at an agreed
value, any parcel or property within the area, from any
partnership or individual. Acceptance shall be subject to a
provision that, if the supplier of the fund or the conveyor of
the property purchases the project area or any part thereof, the
fund or the agreed value of the property shall be credited on
the purchase price of the area or part thereof, and, if there is
an excess above the cost of acquisition of the area, the excess
shall be returned, and that, if the supplier or conveyor does
not purchase the area or any part thereof, the amount of the
fund or the agreed value of the property shall be paid to the
supplier or conveyor.
Sec. 32. [469.032] [USE VALUE.]
Subdivision 1. [DETERMINATION.] Prior to lease or sale of
land in a project area, the authority shall, as an aid in
determining the rentals and other terms upon which it will lease
or the price at which it will sell the area or parts of it,
place an estimated fair market or rental value upon each piece
or tract of land within the area which, in accordance with the
plan, is to be used for private uses or for low-rent housing.
The value shall be based on the planned use. For the purpose of
this valuation, the authority may cause a fair market appraisal
to be made by two or more land value experts employed by it for
the purpose or it may use the land appraisal services of the
municipality, nothing contained in this section shall be
construed as requiring the authority to base its rentals or
selling prices upon the appraisal. The authority may
redetermine its estimated values both prior to and after receipt
by it of any proposal or proposals to purchase or lease property.
Subd. 2. [USE VALUE.] The aggregate use value placed for
purposes of lease or sale upon all land within a project area
leased or sold by an authority pursuant to sections 1 to 47
shall exclude the cost of old buildings destroyed and the
demolition and clearance thereof.
Sec. 33. [469.033] [PUBLIC REDEVELOPMENT COST; PROCEEDS;
FINANCING.]
Subdivision 1. [FINANCING PLANS AUTHORIZED.] The entire
cost of a project as defined in section 2, subdivision 12,
including administrative expense of the authority allocable to
the project and debt charges and all other costs authorized to
be incurred by the authority in sections 1 to 47, shall be known
as the public redevelopment cost. The proceeds from the sale or
lease of property in a project shall be known as the capital
proceeds. The capital proceeds from land sold may pay back only
a portion of the public redevelopment cost. An authority may
finance the projects in any one or by any combination of the
following methods.
Subd. 2. [FEDERAL GRANTS.] The authority may accept grants
or other financial assistance from the federal government as
provided in sections 1 to 47. Before it uses other financial
methods authorized by this section, the authority shall use all
federal funds for which the project qualifies.
Subd. 3. [BOND ISSUE.] An authority may issue its bonds or
other obligations as provided in sections 1 to 47.
Subd. 4. [REVENUE POOL; USE.] The authority may provide
that all revenues received from its redevelopment areas be
placed in a pool for the payment of interest and principal on
all bonds issued for any redevelopment project, and the revenue
from all such areas shall be paid into the pool until all
outstanding bonds have been fully paid.
Subd. 5. [SPECIAL BENEFIT TAX FUND.] If the authority
issues bonds to finance a redevelopment project, it may, with
the consent of the governing body obtained at the time of the
approval of the redevelopment plan as required in section 28,
notify the county treasurer to set aside in a special fund, for
the retirement of the bonds and interest on them, all or part of
the real estate tax revenues derived from the real property in
the redevelopment area which is in excess of the tax revenue
derived therefrom in the tax year immediately preceding the
acquisition of the property by the authority. The county
treasurer shall do so. This setting aside of funds shall
continue until the bonds have been retired. This subdivision
applies only to property that the governing body has by
resolution designated for inclusion in a project prior to August
1, 1979.
Subd. 6. [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.]
All of the territory included within the area of operation of
any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in
this subdivision. All of the taxable property, both real and
personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied
under this subdivision. Subject to the consent by resolution of
the governing body of the city in and for which it was created,
an authority may levy each year a special tax upon all property,
both real and personal, within that taxing district. The
authority shall cause the tax so levied each year to be
certified to the auditor of the county in which the taxing
district is located on or before October 10 each year. The tax
shall be extended, spread, and included with and as a part of
the general taxes for state, county, and municipal purposes by
the county auditor, to be collected and enforced therewith,
together with the penalty, interest, and costs. As the tax,
including any penalties, interest, and costs, is collected by
the county treasurer it shall be accumulated and kept in a
separate fund to be known as the "housing and redevelopment
project fund." The money in the fund shall be turned over to
the authority at the same time and in the same manner that the
tax collections for the city are turned over to the city, and
shall be expended and applied for the purposes of sections 1 to
47, and for no other purpose. It shall be paid out upon
vouchers signed by the chairman of the authority or his
authorized representative. The amount of the special tax levy
shall be an amount approved by the governing body of the city,
but shall not exceed ten cents on each $100 of taxable valuation
in the area of operation, except that in cities of the first
class having a population of less than 200,000, the special tax
levy shall not exceed five cents on each $100 of taxable
valuation in the area of operation. The authority may levy an
additional levy, not to exceed one cent on each $100 of taxable
valuation in the area of operation, to be used to defray costs
of providing informational service and relocation assistance as
set forth in section 462.445, subdivision 4. The authority
shall each year formulate and file a budget in accordance with
the budget procedure of the city in the same manner as required
of executive departments of the city or, if no budgets are
required to be filed, by August first. The amount of the tax
levy for the following year shall be based on that budget and
shall be approved by the governing body.
Subd. 7. [INACTIVE AUTHORITIES; TRANSFER OF FUNDS;
DISSOLUTION.] The authority may transfer to the city in and for
which it was created all property, assets, cash or other funds
held or used by the authority which were derived from the
special benefit tax for redevelopment levied pursuant to
subdivision 6 prior to March 6, 1953, whenever collected. Upon
any such transfer, an authority shall not thereafter levy the
tax or exercise the redevelopment powers of sections 1 to 47.
All cash or other funds transferred to the city shall be used
exclusively for permanent improvements in the city or the
retirement of debts or bonds incurred for permanent improvements
in the city. An authority which transfers its property, assets,
cash or other funds derived from the special benefit tax for
redevelopment and which has not entered into a contract with the
federal government with respect to any low rent public housing
project prior to March 6, 1953, shall be dissolved as herein
provided. After a public hearing after ten days published
notice thereof in a newspaper of general circulation in the
city, the governing body of a city in and for which an authority
has been created may dissolve the authority if the authority has
not entered into any contract with the federal government or any
agency or instrumentality thereof for a loan or a grant with
respect to any urban redevelopment or low rent public housing
project. The resolution or ordinance dissolving the authority
shall be published in the same manner in which ordinances are
published in the city and the authority shall be dissolved when
the resolution or ordinance becomes finally effective. The
clerk of the governing body of the municipality shall furnish to
the commissioner of energy and economic development a certified
copy of the resolution or ordinance of the governing body
dissolving the authority. All property, records, assets, cash
or other funds held or used by an authority shall be transferred
to and become the property of the municipality and cash or other
funds shall be used as herein provided. Upon dissolution of an
authority, all rights of an authority against any person, firm
or corporation shall accrue to and be enforced by the
municipality.
Sec. 34. [469.034] [BOND ISSUE FOR CORPORATE PURPOSES.]
An authority may issue bonds for any of its corporate
purposes. The bonds may be the type the authority determines,
including bonds on which the principal and interest are payable
exclusively from the income and revenues of the project financed
with the proceeds of the bonds, or exclusively from the income
and revenues of certain designated projects, whether or not they
are financed in whole or in part with the proceeds of the
bonds. The bonds may be additionally secured by (1) a pledge of
any grant or contributions from the federal government or other
source, or (2) a pledge of any income or revenues of the
authority from the project for which the proceeds of the bonds
are to be used, or (3) a mortgage of any project or other
property of the authority. No proceeds of bonds issued for or
revenue authorized for or derived from any redevelopment project
or area shall be used to pay the bonds or costs of, or make
contributions or loans to, any public housing project. The
proceeds of bonds issued for or revenues authorized for or
derived from any one public housing project shall not be used to
pay the bonds or costs of, or make contributions or loans to any
other public housing project until the bonds and costs of the
public housing project for which those bonds were issued or from
which those revenues were derived or for which they were
authorized shall be fully paid. Neither the commissioners of an
authority nor any person executing the bonds shall be liable
personally on the bonds by reason of the issuance thereof. The
bonds of an authority shall not be a debt of the city, the state
or any political subdivision, and neither the city nor the state
or any political subdivision shall be liable on them, nor shall
the bonds be payable out of any funds or properties other than
those of the authority; the bonds shall state this on their
face. The bonds shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or
restriction. Bonds of an authority are declared to be issued
for an essential public and governmental purpose and to be
public instrumentalities. The provisions of sections 1 to 47
exempting from taxation authorities, their properties and
income, shall be considered additional security for the
repayment of bonds and shall constitute, by virtue of sections 1
to 47 and without the same being restated in the bonds, a
contract between the (1) bondholders and each of them, including
all transferees of the bonds, and (2) the respective authorities
issuing the bonds and the state. An authority may by covenant
confer upon the holder of the bonds the rights and remedies it
deems necessary or advisable, including the right in the event
of default to have a receiver appointed to take possession of
and operate the project. When the obligations issued by an
authority to assist in financing the development of a project
have been retired and federal contributions have been
discontinued, the exemptions from taxes and special assessments
for that project shall terminate.
Sec. 35. [469.035] [MANNER OF BOND ISSUANCE; SALE.]
Bonds of an authority shall be authorized by its resolution.
They may be issued in one or more series and shall bear the date
or dates, mature at the time or times, bear interest at the rate
or rates, not exceeding seven percent per annum, be in the
denomination or denominations, be in the form either coupon or
registered, carry the conversion or registration privileges,
have the rank or priority, be executed in the manner, be payable
in the medium of payment at the place or places, and be subject
to the terms of redemption with or without premium, as the
resolution, its trust indenture or mortgage provides. The bonds
may be sold at public or private sale at not less than par.
Notwithstanding any other law, bonds issued pursuant to sections
1 to 47 shall be fully negotiable. In any suit, action, or
proceedings involving the validity or enforceability of any
bonds of an authority or the security for the bonds, any bond
reciting in substance that it has been issued by the authority
to aid in financing a project shall be conclusively deemed to
have been issued for that purpose, and the project shall be
conclusively deemed to have been planned, located, and carried
out in accordance with the purposes and provisions of sections 1
to 47. Notwithstanding any other provision of this section, an
authority may execute a note secured by a first mortgage at a
rate of interest in excess of seven percent per annum with the
Minnesota housing finance agency pursuant to chapter 462A to
finance a housing project which is subsidized in whole or in
part with money provided by the federal government.
In cities of the first class, the governing body of the
city must approve all notes executed with the Minnesota housing
finance agency pursuant to this section if the interest rate on
the note exceeds seven percent.
Sec. 36. [469.036] [FEDERAL VOLUME LIMITATION ACT.]
Sections 474A.01 to 474A.21 apply to any issuance of
obligations under sections 1 to 47 that are subject to
limitation under a federal volume limitation act as defined in
section 474A.02, subdivision 9, or existing federal tax law as
defined in section 474A.02, subdivision 8.
Sec. 37. [469.037] [ENFORCEMENT BY OBLIGEE OF PROVISIONS
AND COVENANTS IN CONTRACTS.]
An obligee of an authority shall have the right, subject
only to any contractual restrictions binding upon the obligee;
(1) by mandamus, suit, action, or proceeding at law or in equity
to compel the authority and its commissioners, officers, agents,
or employees to perform every term, provision, and covenant
contained in any contract of the authority with or for the
benefit of the obligee and to require the carrying out of any or
all covenants and agreements of the authority and the
fulfillment of all duties imposed upon the authority by sections
1 to 47; and (2) by suit, action, or proceeding in equity to
enjoin any acts or things which may be unlawful or the violation
of any of the rights of the obligee of the authority.
Sec. 38. [469.038] [BONDS, A LEGAL INVESTMENT.]
When bonds issued by an authority or bonds issued by any
public housing authority or agency in the United States are
secured by a pledge of annual contributions to be paid by the
United States government or any agency thereof, all banks,
bankers, trust companies, savings banks and institutions,
investment companies, savings, building and loan associations,
insurance companies, insurance associations, and other persons
carrying on a banking or insurance business may legally invest
any sinking funds, moneys, or other funds belonging to them or
within their control in the bonds, and the bonds shall be
authorized security for all public deposits.
Sec. 39. [469.039] [EXEMPTION FROM PROCESS.]
All real property of an authority shall be exempt from levy
and sale under execution, and no execution or other judicial
process shall issue against such property, nor shall any
judgment against an authority be a charge or lien against its
real property, but judgments may be enforced as provided in
section 14. This section shall not apply to or limit the right
of obligees to foreclose or otherwise enforce any mortgage of an
authority or the right of obligees to pursue any remedies for
the enforcement of any pledge or lien given by an authority on
its rents, fees, or revenues, or the right of the federal
government to pursue any remedies conferred upon it pursuant to
the provisions of sections 1 to 47.
Sec. 40. [469.040] [TAX STATUS.]
Subdivision 1. [DECLARATION, ESSENTIAL PUBLIC AND
GOVERNMENTAL PURPOSES.] The property of an authority is public
property used for essential public and governmental purposes.
The property and the authority shall be exempt from all taxes
and special assessments of the city, the county, the state or
any political subdivision thereof. "Taxes" does not include
charges for utilities and special services, such as heat, water,
electricity, gas, sewage disposal, or garbage removal. When the
obligations issued by an authority to assist in financing the
development of a project have been retired and federal
contributions have been discontinued, then the exemptions from
taxes and special assessments for that project shall terminate.
Subd. 2. [LEASED PROPERTY, EXCEPTION.] Notwithstanding the
provisions of subdivision 1, any property that the authority
leases to private individuals or corporations for development in
connection with a redevelopment project shall have the same tax
status as if the leased property were owned by the private
individuals or corporations.
Subd. 3. [STATEMENT FILED WITH ASSESSOR; PERCENTAGE TAX ON
RENTALS.] Notwithstanding the provisions of subdivision 1, after
a housing project carried on under sections 16 to 26 has become
occupied, in whole or in part, an authority shall file with the
assessor, on or before May 1 of each year, a statement of the
aggregate shelter rentals of that project collected during the
preceding calendar year. Unless a greater amount has been
agreed upon between the authority and the city in and for which
the authority was created, five percent of the aggregate shelter
rentals shall be charged to the authority as a service charge
for the services and facilities to be furnished with respect to
that project. The service charge shall be collected from the
authority in the manner provided by law for the assessment and
collection of taxes. The amount so collected shall be
distributed to the several taxing bodies in the same proportion
as the tax rate of each bears to the total tax rate of those
taxing bodies. A city in and for which an authority has been
created may agree with the authority for the payment of a
service charge for a housing project in an amount greater than
five percent of the aggregate annual shelter rentals of any
project, upon the basis of shelter rentals or upon another basis
agreed upon. The service charge may not exceed the amount which
would be payable in taxes were the property not exempt. If such
an agreement is made the service charge so agreed upon shall be
collected and distributed in the manner above provided. If the
project has become occupied, or if the land upon which the
project is to be constructed has been acquired, the agreement
shall specify the location of the project for which the
agreement is made. "Shelter rental" means the total rentals of
a housing project exclusive of any charge for utilities and
special services such as heat, water, electricity, gas, sewage
disposal, or garbage removal. The records of each housing
project shall be open to inspection by the proper assessing
officer.
Sec. 41. [469.041] [STATE PUBLIC BODIES, POWERS AS TO
PROJECTS.]
For the purpose of aiding and cooperating in the planning,
undertaking, construction, or operation of projects, any state
public body may upon the terms, with or without consideration,
as it may determine:
(1) Dedicate, sell, convey, or lease any of its interests
in any property, or grant easements, licenses, or any other
rights or privileges therein to an authority. Except in cities
of the first class having a population of less than 200,000, the
public body may pay the bonds of or make loans or contributions
for redevelopment projects, and the receipt or expenditure of
any moneys expended hereunder by the state public body shall not
be included within the definition of any limitation imposed on
per capita taxing or spending in the charter of the state public
body. No state public body may use any revenues or money of
that state public body to pay the bonds of or make any loans or
contributions to any public housing project, except to a public
low-rent housing project (i) for which financial assistance is
provided by the federal government which requires a municipality
or other local public body to use its revenues or money for a
direct loan or grant to the project as a condition for federal
financial assistance and (ii) where the local financial
assistance for the project is authorized by resolution of the
governing body of the municipality;
(2) Cause parks, playgrounds, recreational, community,
education, water, sewer or drainage facilities, or any other
works which it may undertake, to be furnished adjacent to or in
connection with such projects;
(3) Approve, through its governing body or through an
agency designated by it for the purpose, redevelopment plans,
plan or replan, zone or rezone its parks; in the case of a city
or town, make changes in its map; the governing body of any city
may waive any building code requirements in connection with the
development of projects;
(4) Cause services to be furnished to the authority of the
character which it may otherwise furnish;
(5) Enter into agreements with respect to the exercise by
it of its powers relating to the repair, closing, or demolition
of unsafe, unsanitary or unfit buildings;
(6) Do any and all things necessary or convenient to aid
and cooperate in the planning, undertaking, construction, or
operation of the projects;
(7) Incur the entire expense of any public improvements
made by it in exercising the powers granted in sections 1 to 47;
(8) Enter into agreements with an authority respecting
action to be taken by the state public body pursuant to any of
the powers granted by sections 1 to 47; the agreements may
extend over any period, notwithstanding any law to the contrary;
and
(9) Furnish funds available to it from any source,
including the proceeds of bonds, to an authority to pay all or
any part of the cost to the authority of the activities
authorized by section 12, subdivision 1, clause (7).
Sec. 42. [469.042] [AGREEMENTS RESPECTING TAX INCREMENTS
AND EQUIVALENTS; PLEDGE FOR BONDS.]
Subdivision 1. [GENERAL.] Any city or other state public
body within the limits of which a project of an authority is
wholly or partially located may agree with the authority with
respect to payment by the authority of sums in lieu of taxes for
any year or period of years in accordance with the provisions of
section 40, but for no longer than the period of tax exemption
provided for under that section. If property owned by the
authority in a redevelopment project area is leased or otherwise
made available by the authority to a private individual, firm,
or corporation which previously owned the same or other property
within the area, not for development in connection with the
project but for temporary use pending relocation of the former
owner's residence or business, the authority may agree to
payment of sums in lieu of taxes for any year or period of
temporary use. The payments shall not exceed the amount of the
annual rentals or other payments it receives for the use.
During the use the property and the authority shall be exempt
from all taxes and special assessments as provided in section
40, and the provisions of section 272.01, subdivision 2 and of
section 273.19 shall not apply to the property or to that use.
In connection with any redevelopment project, an authority may
make further agreements respecting taxes as provided below.
Subd. 2. [ORIGINAL TAXABLE VALUE.] Upon or after approval
of a redevelopment project of any housing and redevelopment
authority under section 28, the auditor of the county in which
it is situated shall upon request of the authority certify the
assessed valuation of all taxable real property within the
project area as then most recently determined, which is referred
to in this section as the "original taxable value." The auditor
shall certify to the authority each year thereafter the amount
by which the original taxable value has increased or decreased,
and the proportion which any such increase bears to the total
assessed valuation of the real property for that year or the
proportion which any such decrease bears to the original taxable
value. This subdivision and subdivision 3 shall not apply to
any redevelopment project, certification of which is requested
subsequent to August 1, 1979.
Subd. 3. [TAX INCREMENTS.] In each subsequent year the
county auditor shall include no more than the original taxable
value of the real property in the assessed valuation upon which
he computes the mill rates of all taxes levied by the state, the
county, the city or town, the school district and every other
taxing district in which the project area is situated. The
auditor shall extend all mill rates so determined against the
entire assessed valuation of the real property for that year.
In each year for which the assessed valuation exceeds the
original taxable value, the county treasurer shall remit to the
authority, instead of the taxing districts, that proportion of
all taxes paid that year on the real property in the project
area which the excess valuation bears to the total assessed
valuation. The amount so remitted each year is referred to in
this section as the "tax increment" for that year. Tax
increments received with respect to any redevelopment project
shall be segregated by the authority receiving them in a special
account on its official books and records until the public
redevelopment cost of the project, including interest on all
money borrowed therefor, has been fully paid, and the city or
other public body in which the project is situated has been
fully reimbursed from the tax increments or revenues of the
project for any principal and interest on general obligation
bonds which it has issued for the project and has paid from
taxes levied on other property within its corporate limits. The
payment shall be reported to the county auditor, who shall
thereafter include the entire assessed valuation of the project
area in the assessed valuations upon which tax mill rates are
computed and extended and taxes are remitted to all taxing
districts.
Subd. 4. [TAX INCREMENT FINANCING.] The authority may
pledge and appropriate any part or all of the tax increments
received for any redevelopment project, and any part or all of
the revenues received from lands in the project area while owned
by the authority, for the payment of the principal of and
interest on bonds issued in aid of the project pursuant to
sections 34, 41, or 153 to 166, by the authority or by the
governing body of the municipality or other state public body
within whose corporate limits the project area is situated. Any
such pledge for the payment of bonds issued by the governing
body shall be made by written agreement executed on behalf of
the authority and the governing body and filed with the county
auditor. The estimated collections of the tax increments and
any other revenues so pledged may be deducted from the taxes
otherwise required to be levied before the issuance of the bonds
under section 475.61, subdivision 1, or the collections thereof
may be certified annually to reduce or cancel the initial tax
levies in accordance with section 475.61, subdivision 3. When
such an agreement is made and filed, the bonds may be issued by
the governing body in the same manner and subject only to the
same conditions as those provided in chapter 475 for bonds
financing improvement costs reimbursable from special
assessments. Bonds shall not be issued nor tax increments or
other revenues pledged pursuant to this subdivision subsequent
to August 1, 1979.
Sec. 43. [469.043] [PROPERTY TAX EXEMPTION.]
Subdivision 1. [APPLICATION.] A developer proposing to
construct a building on land located within a redevelopment
project as defined in section 2, subdivision 14, may apply to
the governing body of the city in which the land is located to
obtain a partial tax exemption as provided in subdivision 2 for
the approved property. The land and the building to be
constructed thereon are referred to in this section as the
"development." The development shall be designed and used
primarily for housing purposes but portions of it may be planned
and used for related business, commercial, cultural, or
recreational purposes, consistent with the project plan. In
applying for the tax exemption, the developer must submit a plan
of the development that shall contain a general description of
the area to be redeveloped and a statement of the plan for
redevelopment that includes:
(1) height and bulk of structures, density of population
and percentage of land covered by structures as to their
conformity with the purposes of sections 1 to 47 and with the
project plan, if any; and the relationship of the density of
population contemplated by the development plan, or project
plan, to the distribution of the population of the city in other
areas or parts thereof;
(2) provision, if any, for business or commercial
facilities related to the development, relationship to existing
and planned public facilities, adequacy and planned
rearrangement of street facilities and provisions for light,
air, cultural, and recreational facilities as to their
conformity with the purposes of sections 1 to 47 and their
adequacy for accommodation of the density of population
contemplated by the development plan or project plan; and
(3) a development contract with the authority covering the
acquisition, construction, financing, operation, and maintenance
of the development. The contract shall provide that:
(a) after deducting all operating expenses, debt service
payments, taxes or payments in lieu of taxes, and assessments,
the developer may be paid annually out of the earnings of the
project an amount equal to a specified percentage of the equity
invested in the project; the percentage shall be fixed for the
term of the tax exemption and shall be determined at the time of
the approval of the development contract, provided that no
percentage greater than eight percent shall be approved; the
contract shall set out the terms of the developer's return on
equity and shall define "developer's invested equity," "project
earnings," "debt service," and "operating expenses"; and that
any cash surplus derived from earnings from that project
remaining in the treasury of the developer in excess of the
amount necessary to provide such cumulative annual sums shall,
upon a conveyance of the project or upon a dissolution of the
company, be paid into the general fund of the city or town in
which that project is located; and
(b) a provision that, so long as this section remains
applicable to a project, the real property of the project shall
not be sold, transferred, or assigned except as permitted by the
terms of the contract or as subsequently approved by the
governing body.
Subd. 2. [PARTIAL TAX EXEMPTION.] The governing body of a
city in which the proposed development is to be located, after
the approval required by subdivision 3, may exempt from all
local taxes up to 50 percent of the value of the development
which represents an increase over the assessed valuation of the
property, including both land and improvements, acquired for the
development at the time of its original acquisition for
redevelopment purposes. If the governing body grants an
exemption, the development shall be exempt from any or all
county and school district ad valorem property taxes to the
extent of and for the duration of the municipal exemption. The
tax exemption shall not operate for a period of more than ten
years, commencing from the date on which the exemption first
becomes effective. No exemption may be granted from payment of
special assessments or from the payment of inspection,
supervision, and auditing fees of the authority.
The governing body may not approve a tax exemption or a
development contract for a development unless it finds by
resolution that (1) the land which is part of the proposed
development would not, in the foreseeable future, be made
available for redevelopment in the manner proposed without the
partial exemption; (2) the development plan submitted by the
developer will meet a specific housing shortage identified by
the city or the authority and will afford maximum opportunity,
consistent with the project plan, for redevelopment of the land
by private enterprise; and (3) the development plan conforms to
the project plan as a whole.
Subd. 3. [COMMENT BY COUNTY BOARD.] Before approving a tax
exemption pursuant to this section, the governing body of the
city must provide an opportunity to members of the board of
commissioners of the county in which the proposed development is
to be located and the members of the school board of the school
district which the proposed development is to be located to meet
with the governing body. The governing body must present to the
members of those boards its estimate of the fiscal impact of the
proposed property tax exemption. The tax exemption may not be
approved by the governing body until the county board of
commissioners has presented its written comment on the proposal
to the governing body, or 30 days have passed since the date of
the transmittal by the governing body to the board of the
information on fiscal impact, whichever occurs first.
Subd. 4. [CHANGE IN PROJECT PROHIBITED.] During the period
of any tax exemption granted pursuant to this section, no
developer or any approved successor in interest to its title to
a project or any part thereof may transfer any ownership
interest in the developer entity or in the project or change any
feature of a project for which approval of the city is required,
without the approval of the authority and the approval by the
local governing body by a majority of the number of the votes
authorized to be cast by all of the members of the local
governing body.
Subd. 5. [CONTINUATION OF REDEVELOPMENT COMPANY
PROVISIONS.] The provisions of Minnesota Statutes 1986, sections
462.591 to 462.705, shall continue in effect with respect to any
redevelopment company to which a tax exemption had been granted
under Minnesota Statutes 1986, section 462.651, prior to August
1, 1987.
Sec. 44. [469.044] [BOND PENDING LITIGATION.]
When any action or proceeding at law or in equity is
commenced, drawing in question the right, power, or authority of
a public corporation created and operating under sections 1 to
47 to do any act or to make or perform any contract or agreement
or to undertake or enter upon the discharge of any obligations
or commitments under those statutes, the corporation may, if it
deems that the pendency of the litigation might directly or
indirectly impair its borrowing power, increase the cost of its
projects, or be otherwise injurious to the public interest, move
the court in which the litigation is pending to require the
party who instituted the suit to give a surety bond as provided
in sections 45 to 47.
Sec. 45. [469.045] [APPEARANCE OF PUBLIC CORPORATION;
BOND.]
If the public corporation is not a party to the litigation
described in section 44 it may appear specially for the purpose
of making and being heard on such a motion. Three days' notice
of hearing on the motion shall be given. If the court
determines that loss or damage to the public or taxpayers may
result from the pendency of the action or proceeding, the court
may require the party who instituted it to give a surety bond,
approved by the court or judge, in a penal sum to be determined
by the court to protect against loss or damage, whether or not a
temporary injunction or restraining order against the
corporation has been demanded or ordered. If the bond so
ordered is not filed within the reasonable time allowed by the
court, the action or proceeding shall be dismissed with
prejudice. The bond shall be executed by the party who
instituted the litigation or some person for that party as
principal and conditioned for the payment to the corporation of
any damage the public and taxpayers sustain by reason of the
litigation, if the court finally determines that the party was
not entitled to the relief sought. The amount of damages may be
ascertained by a reference or otherwise as the court shall
direct, in which case the sureties shall be concluded as to the
amount but the damages shall be recoverable only in an action on
the bond. If the party by or for whom the bond is furnished
prevails in the litigation, the premium paid on the bond shall
be repaid by or taxed against the corporation. During the
pendency of the litigation, the court, on motion, may require
additional security if found necessary, and upon failure to
furnish it shall dismiss the action or proceeding with
prejudice. The court may likewise, on motion, reduce the amount
of a bond theretofore required or release the bond upon a
showing that the amount is excessive or the bond no longer
required.
Sec. 46. [469.046] [ADVANCE OF LITIGATION ON CALENDAR.]
In any litigation described in sections 44 and 45, in which
a bond has been required and given or the court has denied a
motion to require a bond, the court shall advance the case on
its calendar for trial at the earliest feasible date. An appeal
from an appealable order made, or from a judgment entered in a
district court may be taken after 30 days from entry of the
judgment or after written notice of the order from the adverse
party.
Sec. 47. [469.047] [SUIT FOR CIVIL DAMAGES.]
Nothing in sections 44 to 47 shall affect the rights of any
person to bring a suit for civil damages. No bond shall be
required in such a suit except as otherwise provided by law.
Sec. 48. [RETROACTIVE EFFECT OF PUBLISHED NOTICE
PROVISIONS.]
Laws 1959, chapter 545, sections 1 to 14, so far as they
relate to published notice of any public hearings shall operate
not only prospectively, but retroactively, so as to eliminate
the necessity of more than one publication of a given hearing,
if more than one publication is, was, or is claimed to be
required under Minnesota Statutes, sections 462.415 to 462.705
and Laws 1959, chapter 545, sections 1 to 19. All orders,
resolutions, motions, plans, and agreements and actions taken by
any municipal housing and redevelopment authority organized, or
purported to be organized under Minnesota Statutes, sections
462.415 to 462.705 and Laws 1959, chapter 545, sections 1 to 19,
and taken or purported to have been taken by any governing body,
city planning commission, or political subdivision of the state
or public state body with respect to plans and projects, are
hereby declared valid and effective.
PORT AUTHORITIES
Sec. 49. [469.048] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 49 to 69, the
terms defined in this section have the meanings given them
herein, unless the context indicates a different meaning.
Subd. 2. [PORT AUTHORITY.] "Port authority" or "authority"
means a port authority created under section 50 or a special
law. "Port authority" includes a seaway port authority.
Subd. 3. [SEAWAY PORT AUTHORITY.] A "seaway port authority"
or a "seaport" is a port authority with jurisdiction over a
harbor on the Great Lakes-St. Lawrence seaway.
Subd. 4. [PORT DISTRICT.] A "port district" is the total
area of operations of a port authority.
Subd. 5. [MARGINAL PROPERTY.] "Marginal property" means
property that suffers from at least one of the conditions in
this subdivision:
(1) faulty planning causing deterioration, disuse, or
economic dislocation;
(2) the subdividing and sale of lots too small and
irregular for good use and development;
(3) lots laid out without regard to their physical
characteristics and surrounding conditions;
(4) inadequate streets, open spaces, and utilities;
(5) areas that may flood;
(6) lower values, damaged investments, and social and
economic maladjustment reducing taxpaying capacity to the extent
that tax receipts are too low to pay for the public services
rendered;
(7) lack of use or improper use of areas, resulting in
stagnant or unproductive land that could contribute to the
public health, safety and welfare;
(8) lower population and reduction of proper use of areas
causing more decline, and requiring more public money for new
public facilities and public services elsewhere;
(9) property valuation too low to establish a local
improvement district to construct and install streets, walks,
sewers, water and other utilities;
(10) lands within an industrial area not used for industry
but needed for industrial development of the area; and
(11) state-acquired tax-forfeited land.
Subd. 6. [CITY.] "City" means a home rule charter or
statutory city.
Sec. 50. [469.049] [ESTABLISHMENT; CHARACTERISTICS.]
Subdivision 1. [SAINT PAUL, DULUTH; ESTABLISHMENT.] The
port authority of Saint Paul and the seaway port authority of
Duluth are established.
Subd. 2. [PUBLIC BODY CHARACTERISTICS.] A port authority
is a body politic and corporate with the right to sue and be
sued in its own name.
A port authority is a governmental subdivision under
section 282.01.
A port authority carries out an essential governmental
function of the state when it exercises its power, but the
authority is not immune from liability because of this.
Sec. 51. [469.050] [COMMISSIONERS; TERMS, VACANCIES, PAY,
CONTINUITY.]
Subdivision 1. [SAINT PAUL.] The port authority of Saint
Paul consists of seven commissioners, two of whom must be
members of the city council. The mayor shall appoint the
commissioners with the consent of the city council.
Subd. 2. [DULUTH.] The Seaway Port Authority of Duluth
consists of seven commissioners: three appointed by the Duluth
city council; two by the Saint Louis county board; and two by
the governor.
A member of the Saint Louis county delegation of the state
House of Representatives appointed by that delegation, and a
member of the Saint Louis county delegation of the state Senate
appointed by that delegation are advisory members of the
authority.
Subd. 3. [OTHER PORT AUTHORITIES.] A port authority
established under law by a city council of a city other than a
city of the first class may have three members appointed by the
city council or seven members appointed as provided in
subdivision 1, unless a different number or procedure is set out
in the enabling law. A three-member authority under this
subdivision may be increased to a seven-member authority
appointed as provided under subdivision 1 by resolution of the
city council.
Subd. 4. [TERM, VACANCIES.] The first commissioners of a
three-member commission are appointed for initial terms as
follows: one for two years; one for four years; and one for six
years. The first commissioners of a seven-member commission are
appointed for initial terms as follows: one member for a term
of one, two, three, four, and five years, respectively, and two
members for terms of six years. For subsequent terms, the term
is six years. A vacancy is created in Saint Paul when a city
council member of the authority ends council membership and in
Duluth when a county board member of the authority ends county
board membership. A vacancy on any port authority must be
filled by the appointing authority for the balance of the term
subject to the same approval and consent, if any, required for
an appointment for a full term. For Duluth, if the governor or
the county board fails to make a required appointment within 60
days after a vacancy occurs, the city council has sole power to
appoint a successor.
Subd. 5. [PAY.] A commissioner, including the president,
must be paid $35 for each regular or special port authority
meeting attended and shall receive reimbursement for expenses
incurred while performing duties. The advisory members of the
Duluth authority from the legislature must not be paid for their
service to the authority.
Sec. 52. [469.051] [OFFICERS; DUTIES; ORGANIZATIONAL
MATTERS.]
Subdivision 1. [BYLAWS, RULES, SEAL.] A port authority may
adopt bylaws and rules of procedure and shall adopt an official
seal.
Subd. 2. [OFFICERS.] A port authority shall annually elect
a president, a vice-president, a treasurer, a secretary, and an
assistant treasurer. A commissioner may not serve as president
and vice-president at the same time. The other offices may be
held by one 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 port authority.
Subd. 4. [TREASURER'S DUTIES.] The treasurer:
(1) shall receive and is responsible for port authority
money;
(2) is responsible for the acts of the assistant treasurer;
(3) shall disburse port 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 its secretary. The bond must be for
twice the amount of money likely to be on hand at any one time,
as determined at least annually by the authority except that the
bond must not exceed $300,000.
Subd. 7. [PUBLIC MONEY.] Port authority money is public
money.
Subd. 8. [CHECKS.] A port authority check must be signed
by the treasurer and by 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 port 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. The
authority shall examine the statement together with the
treasurer's vouchers. If the authority finds the statement and
vouchers correct, it shall approve them by resolution and enter
the resolution in its records.
Sec. 53. [469.052] [DEPOSITORIES; DEFAULT; COLLATERAL.]
Subdivision 1. [NAMED; BOND.] Every two years a port
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 the bond must be at
least equal to the maximum sum expected to be on deposit at any
one time.
Subd. 2. [DEFAULT; COLLATERAL.] When port 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 any other act or default of the
depository. A port authority may accept assignments of
collateral from its depository to secure deposits in the same
manner as assignments of collateral are permitted by law to
secure deposits of the port authority's city.
Sec. 54. [469.053] [TAX LEVIES; FISCAL MATTERS.]
Subdivision 1. [OBLIGATIONS.] A port authority must not
levy a tax or special assessment, 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
port authority.
Subd. 2. [BUDGET TO CITY.] Annually, at a time fixed by
charter, resolution, or ordinance of the city, a port 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 in excess of any expected
receipts from other sources.
Subd. 3. [FISCAL YEAR.] The fiscal year of a port
authority must be the same as the fiscal year of its city except
that the Seaway Port Authority of Duluth may, by resolution,
adopt a fiscal year different from the city of Duluth's fiscal
year based on the international shipping season through the St.
Lawrence Seaway.
Subd. 4. [MANDATORY CITY LEVY.] A city shall, at the
request of the port authority, levy a tax in any year for the
benefit of the port authority. The tax must not exceed .75 mill
times the assessed valuation of taxable property in the city.
The tax is not subject to levy limits. The amount levied must
be paid by the city treasurer to the treasurer of the port
authority, to be spent by the authority.
Subd. 5. [REVERSE REFERENDUM.] A city may increase its
levy for port authority purposes under subdivision 4 only as
provided in this subdivision. 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 resolution is effective if
approved by a majority of those voting on the question. The
commissioner of revenue shall prepare a suggested form of
referendum question. The referendum must be held at a special
or general election before October 1 of the year for which the
levy increase is proposed.
Subd. 6. [DISCRETIONARY CITY LEVY.] Upon request of a port
authority, the port authority's city may levy a tax to be spent
by and for its port authority. The tax must enable the port
authority to carry out efficiently and in the public interest
sections 49 to 69 to create and develop industrial development
districts. The levy must not be for more than 7/60 of one mill
on each dollar of assessed valuation of taxable property in the
city. The county treasurer shall pay the proceeds of the tax to
the port authority treasurer. The money may be spent by the
authority in performance of its duties to create and develop
industrial development districts. In spending the money the
authority must judge what best serves the public interest. The
levy in this subdivision is in addition to the levy in
subdivision 4 and is not subject to levy limits.
Subd. 7. [COUNTY LEVY.] The county board of a county
having a port authority city may make an appropriation for the
use of the port authority and may levy the amount of the
appropriation in its general revenue levy. The levy for this
appropriation is subject to the county's levy limits.
Subd. 8. [ST. LOUIS COUNTY LEVY.] After receiving the
budget from the seaway port authority, the St. Louis county
board may annually levy a tax to raise not more than $50,000 for
the port authority for its operations in the next fiscal year.
The levy is not subject to county levy limits.
Subd. 9. [OUTSIDE BUDGET LAWS.] Money appropriated to a
port authority from county taxes under this section is not
subject to a budget law that applies to the county.
Subd. 10. [COUNTY PAYMENT.] The county treasurer shall pay
money appropriated or levied by a county under this section when
and in the manner the county board directs to the port authority
to be spent by the port authority.
Subd. 11. [PROHIBITION ON USE OF STATE FUNDS.] 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. 55. [469.054] [USE OF CITY PROPERTY, SERVICES BY
AUTHORITY.]
Subdivision 1. [PROPERTY TRANSFER.] The council of a port
authority city may transfer or cause to be transferred to its
port authority any dock, waterfront, or riparian property owned
or controlled by the city, and located within the port
district. The transfer must be approved by majority vote and
may be with or without consideration. The city may also put the
same property in the possession or control of the authority by a
lease or other agreement for a limited period or in fee.
Nothing in sections 49 to 69 restricts the city or any
municipality from owning, developing, using, and improving port
or terminal facilities.
Subd. 2. [SPACE, SERVICES.] A port authority city may
furnish offices, warehouses, or other structures and space with
or without heat, light, and other service to its port
authority. The city council may also furnish stenographic,
clerical, engineering, or other assistance to its port authority.
Subd. 3. [COUNSEL.] The city attorney is the legal adviser
to the port authority. The port authority may employ additional
counsel, including a general counsel who is the chief legal
advisor to the authority.
Sec. 56. [469.055] [POWERS AND DUTIES.]
Subdivision 1. [GENERAL DUTIES.] A port authority shall:
(1) promote the general welfare of the port district, and of the
port as a whole; (2) try to increase the volume of the port's
commerce; (3) promote the efficient, safe, and economical
handling of the commerce; and (4) provide or promote adequate
docks, railroad and terminal facilities open to all on
reasonable and equal terms for the handling, storage, care, and
shipment of freight and passengers to, from, and through the
port. A port authority may carry out its powers and duties
under sections 49 to 69 at any place in the city.
Subd. 2. [MEET, PLAN, REGULATE, INVESTIGATE, REPORT.] A
port authority shall:
(1) meet with a neighboring state's port authority that
shares a port or harbor with it and try to agree with that
authority on a comprehensive plan to regulate, develop, and
improve the harbor and port;
(2) consider and adopt detailed plans for the port district
consistent with the comprehensive plan in clause (1);
(3) meet from time to time with any other state's port
authority to try to agree with it on legislation and rules
needed to regulate and control the whole port, and recommend the
adoption of the legislation and rules to the appropriate
legislative and regulatory bodies;
(4) decide on and recommend legislation and rules needed to
regulate and improve navigation and commerce in the port
district;
(5) jointly with a similar body, or separately, recommend
to the proper departments of the federal, state, or local
government, or to another body, the carrying out of public
improvements to benefit the port or port district;
(6) investigate the practices, rates, and conduct of
privately owned or operated dock, terminal and port facilities
in the port district, start proceedings, and take steps in the
public interest to remedy abuses. To conduct investigations
under this clause, a port authority may examine witnesses under
oath and to do so have subpoenas issued out of the district
court where it is located. The subpoenas may require the
attendance of witnesses and the production of books and
documents;
(7) A seaway port authority may also investigate
stevedoring and car contractors, ship chandlers, and other
organizations that a port depends on for its orderly development
and operation;
(8) if necessary, bring suit for any irregularities before
a proper state or federal court; and
(9) annually by April 1 give a detailed written account to
its city council of its activities, its receipts and
expenditures during the past calendar year, and other matters
and recommendations it finds advisable to advance the commerce
and welfare of the port district.
Subd. 3. [REVENUE POOLING.] A port authority operating
under this section and also under sections 59 to 69 may deposit
all its money from any source in one bank account.
Subd. 4. [PUBLIC RELATIONS.] To further an authorized
purpose a port authority may (1) join an official, industrial,
commercial, or trade association, or another organization
concerned with the purpose, (2) have a reception of officials or
others who may contribute to advance the port district and its
industrial development, and (3) carry out other public relation
activities to promote the port district and its industrial
development. Activities under this subdivision have a public
purpose.
Subd. 5. [MINED UNDERGROUND SPACE DEVELOPMENT.] Upon
delegation by a municipality as provided in section 140, a port
authority may exercise any of the delegated powers in connection
with mined underground space development pursuant to sections
136 to 142.
Subd. 6. [CONTROL OF PROPERTY.] A port authority may
acquire, purchase, construct, lease, or operate bulkheads,
jetties, piers, wharves, docks, landing places, warehouses,
storehouses, elevators, cold storage plants, terminals, bridges,
or other terminal or transportation facilities. The authority
may own, hold, lease, or operate real and personal property. A
port authority may lease property in or out of its port district
if it believes the property is suitable and proper to use to
carry out its duties and responsibilities. The facilities and
the property must be needed or convenient for storing, handling,
or transporting freight, passenger traffic, and establishing
rail and water transfer in the port district. The authority may
make rules and fix fees for the use of the facilities and for
the services it renders. The authority may borrow money and
secure the loans by mortgages on property held or to be held by
it or by bonds.
Subd. 7. [SALE OF REALTY.] The authority may sell, convey,
and exchange any real or personal property owned or held by it
in any manner and on any terms it wishes. Real property owned
by the authority must not be sold, be exchanged, or have its
title transferred without approval of two-thirds of the
commissioners. All commissioners must have ten days' written
notice of a regular or special meeting at which a sale,
conveyance, exchange, or transfer of property is to be voted
on. The notice must contain a complete description of the
affected real estate. The resolution authorizing the real
estate transaction is not effective unless a quorum is present.
Subd. 8. [CONDEMNATION.] A port authority may acquire
under eminent domain property of any kind within the port
district needed by it for public use even if the property was
acquired by its owner under eminent domain or even if the
property is already devoted to a public use. Property vested in
or held by the state or by a city, county, school district,
town, or other municipality must not be taken without the
holder's consent. The port authority shall adopt a resolution
describing the property and stating its intended use and the
necessity of the taking.
Subd. 9. [TUNNELS AND BRIDGES.] A port authority may
acquire, operate, and maintain an existing toll bridge for
vehicles across boundary water between a city of the first class
in the state and another city either in or out of state. The
authority may also construct, maintain, and operate another
vehicular toll bridge with its approaches across the water at a
point suitable to navigation, and may reconstruct, repair, and
improve both bridges. The authority may construct, maintain,
and operate a tunnel under the water and reconstruct, repair,
and improve it.
A port authority may enter upon lands and acquire, condemn,
occupy, possess, and use real estate and other property needed
to locate, construct, operate, and maintain the bridge or tunnel
and approaches to it. In doing so, the authority shall act in
the same manner as a railroad corporation may for railroad
purposes, or a bridge corporation may for bridge purposes in the
state where the property is after making just compensation for
the property as decided and paid under the laws of that state.
The proceedings must be the same as for condemnation in that
state.
Subd. 10. [SURVEYS; PLANS.] A port authority may survey or
investigate the proper uses, operations, improvement, and
development of the port district, the resulting stimulation of
employment, and the benefit to the port district's city, county,
and state. The port authority may also prepare a plan to
construct, develop, and improve the port in the future. The
plan may be merged with existing or future plans of any city in
the port district. After public hearing, the port authority may
adopt a plan as its official plan for the port district. Then
the plan may be extended, modified, or amended only after a
hearing. When the plan is adopted, all improvements made by the
port authority must be consistent with it.
Subd. 11. [TERMINAL OPERATORS FOR SEAWAY PORT.] A seaway
port authority may operate its port terminal facilities on its
premises as terminal operators. If it does so, the authority
may contract with a warehouse operator performing other terminal
services to act as its agent. The contract may provide: (1)
that the agent will be paid on a monthly basis to operate the
facilities; (2) that the agent may hire the necessary personnel
to carry out the functions undertaken by the contract; (3) that
employees engaged by the agent are employees of the agent and
not of the port authority; and (4) that the agent is responsible
to pay the employees and to comply with local ordinances and
state and federal laws affecting the employees. The seaway port
authority may also contract with agents to perform any function
that the port authority may do. The seaway port authority may
retain power to set rates for a service to be performed in a
terminal facility owned, leased, or operated by it.
Sec. 57. [469.056] [EMPLOYEES; CONTRACTS; AUDITS.]
Subdivision 1. [EMPLOYEES, SOCIAL SECURITY.] A port
authority may employ or contract for the engineering, legal,
technical, clerical, stenographic, accounting, and other
assistance it considers advisable. An employee of a port
authority under this chapter is an "employee" under section
355.01, subdivision 4, and by appropriate action of the port
authority is entitled to benefits under that section.
Subd. 2. [CONTRACTS.] A port authority may contract to
erect, repair, maintain or operate docks, warehouses, terminals,
elevators, or other structures on or in connection with property
it owns or controls. 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. An obligation or expense must
not be incurred unless existing appropriations together with the
reasonably expected revenue of the port 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. 3. [DULUTH; AUDITS.] A seaway port authority may
employ a certified public accountant to annually examine and
audit its books. The report of the exam and audit must be sent
to the state auditor. The state auditor shall review the report
and may accept it or in the public interest examine the books
further.
Subd. 4. [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.
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.
Sec. 58. [469.057] [PORT CONTROL BY OTHERS; PETITION;
INTERVENTION.]
Subdivision 1. [REGULATION.] Unless otherwise provided by
law, all laws now or hereafter vesting jurisdiction or control
in the department of public service of the state of Minnesota,
the Interstate Commerce Commission or Department of Defense of
the United States, or similar regulatory bodies shall apply to
any transportation, terminal, or other facility owned, operated,
leased, or controlled by the port authority with the same force
and effect as if the transportation, terminal, or other facility
were owned, operated, leased, or controlled by a private
corporation.
Subd. 2. [SEAPORT CONTROL LIMITED.] The department of
public service has no jurisdiction over a seaway port authority
for the following matters to the extent they are connected with
handling interstate commerce:
(1) charges for stevedoring of vessels;
(2) receiving and delivering cargo for vessels;
(3) car and truck unloading and loading cargo for vessels;
(4) watching cargo for vessels;
(5) charges to vessels for use of facilities;
(6) charges against railroad, trucking companies or
shippers for use of facilities; and
(7) delivery and warehouse charges for cargo to and from
and in warehouses on seaway port authority property.
Subd. 3. [PETITIONS, INTERVENTION.] A port authority may
petition a public body of any kind or level having jurisdiction
of the matter, for any relief, rates, rule, or action that the
port authority believes will improve the handling of commerce in
and through the port or improve terminal and transportation
facilities in the port. The port authority may join with
another authority sharing its port in making the petition. A
port authority also may intervene before any public body in a
proceeding affecting the commerce of the port. In the
proceeding, the port authority is one of the official
representatives of the port district along with other interested
persons.
Sec. 59. [469.058] [INDUSTRIAL DEVELOPMENT DISTRICTS.]
Subdivision 1. [CREATION; NOTICE; FINDINGS.] A port
authority may create and define the boundaries of industrial
development districts in their port districts after holding 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 port district.
The development district may be created if the authority finds
that a development district is proper and desirable to establish
and develop a system of harbor and river improvements and
industrial developments in its port district. In this section,
"development" includes redevelopment, and "developing" includes
redeveloping.
Subd. 2. [POLICY.] It is state policy in the public
interest to have a port authority exercise the power of eminent
domain, and advance and spend public money for the purposes in
sections 49 to 69, and to provide the means to develop marginal
property according to the findings in subdivision 3.
Subd. 3. [FINDINGS.] The legislature makes the findings in
this subdivision about the purposes of this section.
(a) Sound development of the economic security of the
people in port authority cities depends on proper development of
marginal property. The general welfare of the residents of port
districts requires remedies for the injurious conditions of
marginal property by appropriate means.
(b) Marginal property cannot be developed without public
participation and assistance in: (1) acquiring land, (2)
planning, (3) financing of land assembly in the work of
clearance and development, and (4) making necessary improvements
for developing.
When the development of marginal property cannot be done by
private enterprise alone, it is in the public interest to
exercise the power of eminent domain, to advance and spend
public money, and to provide the means to develop marginal
property.
(c) The decline of marginal lands often cannot be reversed
except by developing all or most of those lands. Private
development may be uneconomic and practically impossible because
of costs and lack of legal power. The public may have to
acquire sizable areas of marginal property at fair prices to
remedy the conditions on the marginal property, and to develop
the areas under proper supervision, with appropriate planning
and continuing land use. The development of land acquired under
sections 49 to 69 is a public necessity and use and a
governmental function. The sale or lease of the land after
development is incidental to the real purpose: to remove the
condition making the property marginal.
(d) The development of marginal property and its continuing
use are public uses, public purposes, and government functions
that justify spending or advancing public money and acquiring
private property. The development is a state concern in the
interest of health, safety and welfare of the people of the
state and of all residents and property owners in communities
having marginal property. Marginal property causes problems
beyond control of police power alone.
Sec. 60. [469.059] [DEVELOPMENT DISTRICT POWERS.]
Subdivision 1. [IN GENERAL.] A port authority, or a city
authorized by law to exercise the powers of a port authority may
use the powers in this section for the purposes in section 59,
subdivision 1.
Subd. 2. [ACQUIRE PROPERTY.] The port authority may
acquire by lease, purchase, gift, devise, or condemnation
proceedings the needed right, title and interest in property to
create industrial development districts. A port authority may
lease property in or out of its port district if it believes the
property is suitable and proper to use to carry out its duties
and responsibilities. It shall pay for the property out of
money it receives under sections 60 to 69. It may hold and
dispose of the property subject to the limits and conditions in
sections 50, 51, and 59 to 69. The title to property acquired
by condemnation or purchase must be in fee simple, absolute.
The port 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 50, 51, and 59 to 69. Property
acquired, owned, leased, controlled, used, or occupied by the
port 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 port authority holds property
for its own purpose. When property is sold it begins to be
taxed again.
Subd. 3. [OPTIONS.] The port authority may sign options to
purchase, sell, or lease property.
Subd. 4. [EMINENT DOMAIN.] The port authority may exercise
the right of eminent domain under chapter 117, or under its
city's charter to acquire property it is authorized to acquire
by condemnation. The port 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 port authority may take possession of 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. 5. [CONTRACTS.] The port authority may make
contracts for an industrial development purpose within the
powers given it in sections 50, 51, and 59 to 69.
Subd. 6. [PARTNER.] The port authority may be a limited
partner.
Subd. 7. [RIGHTS; EASEMENTS.] The port authority may
acquire rights or an easement for a term of years or perpetually
for development of an industrial district.
Subd. 8. [SUPPLIES; MATERIALS.] The port authority may buy
the supplies and materials it needs to carry out this section.
Subd. 9. [RECEIVE PUBLIC PROPERTY.] The port 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 49 to 69 and to acquire and
develop an industrial development district and its facilities
under this section.
Subd. 10. [TAX-FORFEITED LAND.] The port authority may use
the power of a governmental subdivision under section 282.01 to
acquire land for and develop an industrial development
district. The authority may exercise the power of a city of the
first class under that section to acquire land forfeited to the
state for nonpayment of taxes.
Subd. 11. [PROCEDURE.] Tax-forfeited lands in an
industrial development district that are vested in the state
shall be conveyed to the port authority that is developing the
district for one dollar per tract. The port authority may use
and later resell the land for purposes of sections 49 to 69.
In conveying tax-forfeited land to a port authority, the
state may not retain a possibility of reverter or right of
reentry as it does under section 282.01, subdivision 1.
The commissioner of revenue shall convey tax-forfeited
parcels in an industrial development district to the port
authority, if the authority petitions for conveyance under
sections 49 to 69 and pays one dollar per tract.
The attorney general shall approve the form of the deed of
conveyance. The port authority shall receive absolute title to
the tract, subject only to a reservation of minerals and mineral
rights, under section 282.12. The deed of conveyance must not
contain a restriction on the use of the premises. The
conveyance divests the state of all further right, title, claim
or interest in the tracts, except for the reservation of
minerals and mineral rights.
Subd. 12. [DEVELOPMENT DISTRICT POWER.] The port authority
may sell or lease land held by it for river, harbor or
industrial development in industrial development districts. The
authority may, if in the public interest, build suitable
buildings or structures on land owned by it. The authority may
furnish capital equipment to be located permanently or used
exclusively on the lands or in the buildings if necessary to the
purposes of the buildings or structures. The port authority
must intend that the buildings, structures, and equipment be
leased or sold to private persons to further develop the
industrial 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 industrial development of the district under
sections 49 to 69.
Subd. 13. [TAX INCREMENT.] The port authority may request
that the county auditor of the county of its industrial
development district certify the latest assessed valuation of
the legally described taxable real property in the request or of
all the taxable real property in the district. The auditor
shall make the certification. Valuation that is contributed to
an areawide tax base under chapter 473F must be excluded from
the certification. Each year the auditor shall certify to the
authority the amounts and percentages of increase or decrease in
the certified valuation. The part of the change that is
contributed to an areawide tax base under chapter 473F must be
excluded.
The auditor shall compute the mill rates of taxes against
the original certified valuation. The auditor shall also extend
the rates against any increased valuation. The auditor shall
then send the resulting tax increment to the port authority.
The procedure to be used for computing and sending the
increments is provided in section 42, subdivisions 2 and 3.
The port authority shall keep tax increments received for a
district in a special account on its official books and records.
The auditor shall send the tax increments to the port
authority until the cost, including interest, of redevelopment
of the marginal property within the district has been fully
reimbursed. The port authority shall report to the auditor when
the cost is fully reimbursed. After that the auditor shall
compute and extend the tax mill rates against the entire
assessed valuation of the property and send the taxes to all
taxing districts. The city council may direct that part or all
of the tax collected from the property be pledged and
appropriated to pay general obligation bonds of the authority.
After the auditor has certified the base valuation used to
compute tax increments and while the tax increment is kept in a
separate account, the auditor must not include increases in the
valuation of the property in the assessed valuation of a taxing
district to compute its debt or levy limit or to compute the
amount of its state or federal aid. This subdivision applies to
projects for which the port authority requested a certification
on the project before August 2, 1979.
Subd. 14. [FOREIGN TRADE ZONE.] The port 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 port authority.
Subd. 15. [EXTENSION OF OTHER AUTHORITIES' POWERS.] The
port authority may exercise powers and duties of a redevelopment
agency under sections 153 to 166, for a purpose in sections 1 to
47 or 49 to 69. The port authority may also exercise the powers
and duties in sections 1 to 47 and 49 to 69, for a purpose in
sections 153 to 166.
Subd. 16. [PARKING AND OTHER FACILITIES.] The port
authority may operate and maintain a public parking or other
public facility to promote development in a development district.
Sec. 61. [469.060] [GENERAL OBLIGATION BONDS.]
Subdivision 1. [POWER; PROCEDURE.] A port authority may
issue bonds in the principal amount authorized by 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 50, 51, and 59 to 69. 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. Except as otherwise provided in sections 49
to 69, the issuance of the bonds is governed by chapter 475.
The port authority when issuing the bonds is a municipal
corporation under chapter 475. Notwithstanding any contrary
city charter provision or any general or special law, the bonds
may be issued and sold without submission of the question to the
electors of the city, provided that the ordinance of the
governing body of the city authorizing issuance of the bonds by
the port authority shall be subject to any provisions in the
city charter pertaining to the procedure for referendum on
ordinances enacted by the governing body.
Subd. 2. [OUTSIDE DEBT LIMIT.] Bonds issued by the port
authority must not be included in the net debt of its city.
Money received under this section must not be included in a per
capita limit on taxing or spending in the port authority's
city's charter. The authority is also exempt from the limit.
Subd. 3. [DETAIL; MATURITY.] The port 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 must be due in not more
than three years and the last in not more than 30 years from the
date of issuance.
Subd. 4. [SIGNATURES; COUPONS; LIABILITY.] The bonds must
be signed by the president of the port authority, be attested by
its secretary, and be countersigned by its treasurer. The
interest coupons must be attached to the bonds. The coupons
must be executed and authenticated by the printed, engrossed or
lithographed facsimile signature of the port authority's
president and secretary. The bonds do not impose any personal
liability on a member of the port authority.
Subd. 5. [PLEDGE.] The bonds must be secured by the pledge
of the full faith, credit and resources of the issuing port
authority's city. The port 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, the 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
port 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. 6. [TAX LEVY.] A port 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 may not be
repealed until the debt is paid. After the bonds are issued,
the port 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, together with 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 port 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 port 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
port 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 port authority by the county treasurer
as provided in chapter 276. The taxes must be used only to pay
the bonds when due.
Subd. 7. [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. 62. [469.061] [REVENUE BONDS; PLEDGE; COVENANTS.]
Subdivision 1. [POWER.] A port 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, construct, install, or furnish capital
equipment to operate a port terminal, transportation, or
industrial facility of any kind in its port district, 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 port 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
port authority under this section shall bear interest at a rate
or rates, shall mature at the time or times within 30 years from
the date of issuance, and shall be in such form, whether payable
to bearer, registrable as to principal, or fully registrable, as
determined by the port authority. Section 61, subdivision 7,
shall apply to all bonds issued under this section, and the
bonds and their coupons, when payable to bearer, shall be
negotiable instruments.
Subd. 3. [SALE.] The sale of revenue bonds issued by the
port authority shall be at public or private sale. The bonds
may be sold in the manner and for the price that the port
authority determines to be for the best interest of the port
authority. The bonds may be made callable, and if so issued may
be refunded.
Subd. 4. [AGREEMENTS.] The port authority may by
resolution make an agreement or covenant with the bondholders or
their trustee if it determines that the agreement or covenant is
needed or desirable to carry out the powers given to the
authority under this section and to assure that the revenue
bonds are marketable and promptly paid.
Subd. 5. [REVENUE PLEDGE.] In issuing bonds under sections
50, 51, and 59 to 69, the port authority may secure the payment
of the principal and interest on the bonds by a pledge of and
lien on port 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 deposit sufficient 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 constitutes
"current" expense under this subdivision based on what is normal
and reasonable under generally accepted accounting principles.
Revenues pledged by the port authority must not be used or
pledged for any other port authority purpose or to pay any other
bonds issued under this section or under section 61, 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 port 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 port authority and its 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 154, subdivision 2,
paragraph (e), and 155, subdivisions 3, 4, and 5, do not apply
to revenue bonds issued under this section and sections 153 to
166 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 port authority to a private person.
Sec. 63. [469.062] [OTHER BONDS.]
Subdivision 1. [CITY BONDS, GENERALLY.] A port authority
city except the city of Duluth may issue bonds and appropriate
bond proceeds to purchase, construct, extend, improve, and
maintain docks, warehouses, or other port or terminal facilities
owned or to be owned or operated by its port authority. This
action may be taken in the same manner as if the facilities were
public utility plants, needed public buildings and public
conveniences capable of producing revenue, and were owned or to
be owned or operated solely by the city.
Subd. 2. [DULUTH BONDS.] The city of Duluth may issue not
more than $1,000,000 of its general obligation bonds and may
appropriate the bond proceeds for any of the purposes in
subdivision 1 and to conserve, develop, reclaim, protect, and
improve lands under the jurisdiction of its seaway port
authority. The bonds shall be issued only after approval of
two-thirds of the members of the city council. The bonds shall
be issued, sold and secured under sections 475.60 to 475.73.
The bonds are valid without an election.
Subd. 3. [SEAPORT BONDS.] A seaway port authority may
issue and sell its negotiable revenue bonds for a purpose in
section 56, subdivision 6, or for a purpose in this chapter
related to the development of a seaport. The bonds must be
issued, sold, and secured in the same manner as the bonds in
subdivision 5 except that a trust indenture may but need not be
executed. The bond resolutions and indenture, if any, must list
the facilities whose net revenues are to be pledged for the bond
and interest payments. The authority may mortgage some or all
of its facilities, except a tunnel or bridge for vehicles,
including additions and improvements, to a trustee for the
bondholders. The mortgaged facilities may include those
financed by the bonds, those operated by the authority, or those
leased to others. The authority may agree to covenants and
restrictions about: (1) issuing more bonds payable from net
revenues of the same facilities, (2) changes to the bond
resolutions or the indenture, (3) the remedies and priorities of
the bondholders in case of default and, (4) anything else about
the security of the bonds that the authority decides is needed
to best market the bonds.
Subd. 4. [ST. LOUIS COUNTY BONDS.] When two-thirds of the
members of the city council of the city of Duluth approve
issuance of general obligation bonds of the city, the proceeds
of which are to be appropriated to the seaway port authority,
the board of St. Louis county commissioners may by five-sevenths
vote issue general obligation bonds of the county. The bonds
may be issued in an amount not to exceed $4,000,000, and the
proceeds appropriated to be used by the seaway port authority
for any or all of the purposes specified in section 63,
subdivision 2, if the county board by resolution determines that
the conservation, development, reclamation, protection and
improvement of lands under the jurisdiction of the port
authority and the construction of port facilities thereon will
promote the public welfare of the county at large and the
economic well-being of its people, industries and commerce, and
is an essential governmental function of the county, and can
best be performed through the medium of the port authority. The
bonds shall be issued, sold and secured as provided in sections
475.60 to 475.753; the bonds are valid without an election.
Subd. 5. [TUNNEL AND BRIDGE BONDS.] The authority may
issue and sell its negotiable revenue bonds for the purposes of
section 56, subdivision 9. The bonds must be authorized by port
authority resolutions containing the customary provisions about
the form of the bonds and their maturity, interest rate, sinking
fund, redemption, and refunding. The bonds must be issued under
a trust indenture from the port authority to a corporate
trustee. The indenture must contain the customary provisions as
to: (1) the issuance of bonds; (2) the application of the
revenues of the bridge or tunnel to create a sinking fund to pay
the bonds and interest on them; (3) the holding of the proceeds
of the bonds in a special trust to acquire or construct the
bridge or tunnel; and (4) the pledge and assignment by the port
authority to the trustee of the bridge or tunnel revenues in
excess of the cost of operation and maintenance of it as
security for the payment of the principal of and interest on the
bonds. The port authority shall collect tolls for transit over
the bridge or through the tunnel acquired or constructed under
this section sufficient at all times to pay for its operation
and maintenance and to pay the principal of and interest on the
bonds issued under this subdivision. The bonds and the coupons
showing interest on them are an irrevocable contract between the
bondholders and the port authority that the tolls shall always
be sufficient for those purposes. The bonds must not bear
interest at more than eight percent per year. The bonds must
not be sold for less than par plus accrued interest to the date
of delivery and payment and may be sold at private sale without
publishing prior notice of the sale. Bonds issued under this
subdivision are not a debt of the port authority's city, are not
subject to the city's debt limit, and are not payable from city
property taxes. The bonds are payable solely from the toll
revenues earned by the bridge or tunnel and pledged to the
payment of the bonds.
Sec. 64. [469.063] [SECTIONS THAT APPLY IF FEDERAL LIMIT
APPLIES.]
Sections 474A.01 to 474A.21 apply to obligations issued
under sections 49 to 69 that are limited by a federal volume
limitation act as defined in section 474A.02, subdivision 9, or
existing federal tax law as defined in section 474A.02,
subdivision 8.
Sec. 65. [469.064] [PORT AUTHORITY ACTIVITIES.]
Subdivision 1. [GOVERNMENT AGENT.] A port 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 49 to 69 or any other related federal, state or local
law in the area of river, harbor and industrial development
district improvement.
Subd. 2. [STUDIES, ANALYSIS, RESEARCH.] A port authority
may study and analyze industrial development needs in its port
district, and ways to meet the needs. A port authority may
study the desirable patterns for industrial land use and
community growth and other factors affecting local industrial
development in the district and make the result of the studies
available to the public and to industry in general. A port
authority may engage in research and disseminate information on
river, harbor and industrial development in the port district.
Subd. 3. [ACCEPT PUBLIC LAND.] A port authority may accept
conveyances of land from all other public agencies, commissions
or other units of government, including the housing and
redevelopment authority of the city of Saint Paul and the state
metropolitan airports commission, if the land can be properly
used by the port authority in a river, harbor and industrial
development district, to carry out the purposes of sections 49
to 69.
Subd. 4. [INDUSTRIAL DEVELOPMENT.] A port authority may
carry out the law on industrial development districts to develop
and improve the lands in an industrial development district to
make it suitable and available for industrial uses and
purposes. A port authority may dredge, bulkhead, 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 industrial development. A port
authority may lease some or all of its lands or property and may
set up local improvement districts in all or part of an
industrial development district.
In general, with respect to an industrial development
district, a port authority may use all the powers given a port
authority by law.
Subd. 5. [LOANS IN ANTICIPATION OF BONDS.] A port
authority after authorizing bonds under section 61 or 62 may
borrow to provide money immediately required for the bond
purpose. The loans may 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 port authority or from any corporation,
association, or other institution of which a port authority
commissioner is a stockholder or officer.
Subd. 6. [USE OF PROCEEDS.] The proceeds of obligations
issued by a port authority under section 62 and temporary loans
obtained under subdivision 5 may be used to make or purchase
loans for port, industrial or economic facilities that the
authority believes will require financing. To make or purchase
the loans, the port 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
port 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.
Sec. 66. [469.065] [SALE OF PROPERTY.]
Subdivision 1. [POWER.] A port authority may sell and
convey property owned by it within a port or industrial district
if it determines that the sale and conveyance are in the best
interests of the district and its people, and that the
transaction furthers its general plan of port improvement, or
industrial development, or both. This section is not limited by
other law on powers of port authorities.
Subd. 2. [NOTICE; HEARING.] A port 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 of general circulation in the port authority's
county and port district. 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 port 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 by filing a notice
of appeal with the district court in the port or industrial
district's county and serving the notice on the secretary of the
port 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 port authority may
consider the nature of the proposed use and the relation of the
use to the improvement of the harbor, the riverfront and the
port authority's city and the business and the facilities of the
port authority in general. The sale must be made on the port
authority's terms and conditions. The port 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 port authority also may 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 49 to
69.
Subd. 5. [ONE-YEAR DEADLINE.] Within one year from the
date of purchase, the purchaser shall devote the property to its
intended use or begin work on the improvements to the property
to devote it to that use. If the purchaser fails to do so, the
port authority may cancel the sale and title to the property
shall return to it. The port 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 port
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 port
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 49 to 69
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 port authority plans and
specifications to develop the property sold. The port authority
must approve the plans and specifications in writing. The port
authority may require preparation of final plans and
specifications before the hearing on the sale.
Sec. 67. [469.066] [ADVANCES BY PORT AUTHORITY.]
A port authority may advance its general fund money or its
credit, or both, without interest, for the objects and purposes
of sections 59 to 69. 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 port authority's general obligation bonds,
then the advances must have not less than the average annual
interest rate that is on the port authority's general obligation
bonds that are outstanding at the time the advances are made.
The port authority may advance repaid money for more objects and
purposes of sections 59 to 69 subject to repayment in the same
manner. The port authority must 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 port or industrial facilities, if the rentals have been
pledged for that purpose under section 62. Advances made to
acquire lands and to construct facilities for recreation
purposes if authorized by law need not be reimbursed under this
section. Sections 49 to 69 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. 68. [469.067] [FINDING LAND IS MARGINAL IS PRIMA
FACIE EVIDENCE.]
A port authority decision that property it seeks is
marginal is prima facie evidence in eminent domain proceedings
that the property is marginal if the decision is made in a
resolution, stating the characteristics that make the property
marginal.
Sec. 69. [469.068] [CONSTRUCTION, EQUIPMENT CONTRACTS; USE
OF CITY PURCHASING.]
Subdivision 1. [CONTRACTS; BIDS; BONDS.] All construction
work and every purchase of equipment, supplies, or materials
necessary in carrying out the purposes of sections 49 to 69,
that involve the expenditure of $1,000 or more, shall be awarded
by contract as provided in this subdivision. Before receiving
bids under sections 49 to 69, the authority shall publish, once
a week for two consecutive weeks in the official newspaper of
the port's city, a notice that bids will be received for the
construction work, or purchase of equipment, supplies, or
materials. The notice shall state the nature of the work, and
the terms and conditions upon which the contract is to be let
and name a time and place where the bids will be received,
opened, and read publicly, which time shall be not less than
seven days after the date of the last publication. After the
bids have been received, opened, read publicly, and recorded,
the commissioners shall award the contract to the lowest
responsible bidder, reserving the right to reject any or all
bids. The contract shall be executed in writing and the person
to whom the contract is awarded shall give sufficient bond to
the board for its faithful performance. If no satisfactory bid
is received, the port authority may readvertise, or, by an
affirmative vote of two of its commissioners in the case of a
three-member commission, or five of its members in the case of a
seven-member commission, may authorize the authority to perform
any part or parts of any construction work by day labor under
conditions it prescribes. The commissioners may establish
reasonable qualifications to determine the fitness and
responsibility of bidders, and require bidders to meet the
qualifications before bids are accepted. If the commissioners
by a two-thirds or five-sevenths vote declare that an emergency
exists requiring the immediate purchase of any equipment or
material or supplies at a cost in excess of $1,000, but not
exceeding $5,000, in amount, or making of emergency repairs, it
shall not be necessary to advertise for bids, but the material,
equipment, or supplies may be purchased in the open market at
the lowest price obtainable, or the emergency repairs may be
contracted for or performed without securing formal competitive
bids. An emergency, for purposes of this section, is unforeseen
circumstances or conditions which result in the jeopardizing of
human life or property.
In all contracts involving the employment of labor, the
commissioners shall stipulate conditions they deem reasonable,
as to the hours of labor and wages and may stipulate as to the
residence of employees to be employed by the contractors.
Bonds shall be required from contractors for any works of
construction as provided in and subject to all the provisions of
sections 574.26 to 574.31.
Subd. 2. [CITY PURCHASING.] A port authority may use the
facilities of its city's purchasing department in connection
with construction work and to purchase equipment, supplies, or
materials.
LOCAL PORT AUTHORITY PROVISIONS
Sec. 70. [469.069] [ALBERT LEA.]
The city of Albert Lea may establish a port authority
commission that has the same powers as a port authority
established under section 50 or other law. If the city
establishes a port authority commission, the city shall exercise
all the powers relating to the port authority granted to a city
by sections 49 to 69 or other law. Notwithstanding any law to
the contrary, the city may choose the name of the commission and
may appoint a seven-member commission.
Sec. 71. [469.070] [AUSTIN.]
The city of Austin may establish a port authority
commission that has the same powers as a port authority
established under section 50 or other law. If the city
establishes a port authority commission, the city shall exercise
all the powers relating to the port authority granted to a city
by sections 49 to 69 or other law. Notwithstanding any law to
the contrary, the city may choose the name of the commission and
may appoint a seven-member commission.
Sec. 72. [469.071] [BLOOMINGTON.]
Subdivision 1. [ESTABLISHMENT OF PORT AUTHORITY.] The city
of Bloomington may establish a port authority that has the same
powers as a port authority established under section 50. If the
city establishes a port authority, the city shall exercise all
the powers relating to the port authority granted to a city by
section 50 or other law and may do all that a port authority may
do under sections 49 to 69.
Subd. 2. [ACQUISITION OF PROPERTY.] The port authority of
the city of Bloomington may lease or purchase and accept a
conveyance of real property from another public agency,
commission, or unit of government if the port authority is able
to properly use the property for the purposes of sections 49 to
69.
Subd. 3. [ISSUANCE OF BONDS.] The port authority may, with
the approval of its city council, issue bonds under section 61
to pay for the real property.
Subd. 4. [PROPERTY TAX EXEMPTION.] Notwithstanding section
473.556, subdivision 6, or any other law, real property conveyed
to the port authority of the city of Bloomington by the
metropolitan sports facilities commission is exempt from
taxation under sections 473.556, subdivision 4; and 459.192,
subdivision 2.
Sec. 73. [469.072] [BRECKENRIDGE.]
Subdivision 1. [ESTABLISHMENT.] The city of Breckenridge
may establish a port authority commission that has the same
powers as a port authority established under section 50 or other
law. If the city establishes a port authority commission, the
city shall exercise all the powers relating to the port
authority granted to a city by sections 49 to 69 or other law.
Notwithstanding any law to the contrary, the city may choose the
name of the commission and may appoint a seven-member commission.
Subd. 2. [MUNICIPAL HOUSING AND REDEVELOPMENT AUTHORITY.]
If the city of Breckenridge establishes a port authority
commission under subdivision 1, the commission may exercise the
same powers as a municipal housing and redevelopment authority
established under sections 1 to 47 or other law. The city shall
then exercise all the powers relating to the municipal housing
and redevelopment authority granted to a city by sections 1 to
47 or other law.
Sec. 74. [469.073] [DETROIT LAKES.]
Subdivision 1. [ESTABLISHMENT.] The city of Detroit Lakes
may establish a port authority commission that has the same
powers as a port authority established under section 50 or other
law. If the city establishes a port authority commission, the
city shall exercise all the powers relating to the port
authority granted to a city by sections 49 to 69 or other law.
Notwithstanding any law to the contrary, the city may choose the
name of the commission.
Subd. 2. [MUNICIPAL HOUSING AND REDEVELOPMENT AUTHORITY.]
If the city of Detroit Lakes establishes a port authority
commission under subdivision 1, the commission may exercise the
same powers as a municipal housing and redevelopment authority
established under sections 1 to 47 or other law. The city shall
then exercise all the powers relating to the municipal housing
and redevelopment authority granted to a city by sections 1 to
47 or other law.
Sec. 75. [469.074] [DULUTH.]
Subdivision 1. [MAY OWN, OPERATE, OR CONTRACT FOR
VESSELS.] The seaway port authority of Duluth may acquire,
purchase, charter, lease, mortgage or otherwise own and operate
vessels as may be necessary or convenient. The authority may
enter into joint vessel ownership contracts or joint ventures
with others, contract with vessel owners and operators, and
enter into contractual relationships necessary or convenient to
acquire, purchase, charter, lease or operate vessels.
Subd. 2. [OLD LAW DOES NOT APPLY TO MINNESOTA POINT.] The
following quoted sentence from Minnesota Statutes 1961, section
458.59:
"No state owned tax forfeited land comprising riparian
lands or submerged lands within the harbor line as duly
established, and all such tax forfeited lands lying within
a distance of 1500 feet thereof, located in harbors upon
the Great Lakes-St. Lawrence Seaway shall be offered for
sale or sold to any private person, firm or corporation and
all such tax forfeited lands are hereby withdrawn from sale
to such private persons, firms or corporations."
does not apply to land located on Minnesota Point in the city of
Duluth that is zoned residential under the zoning ordinance of
the city. Before the land is offered for sale, the city
council, the county board, and the port authority must approve
the offering. A sale or conveyance of the land must not include
riparian rights. The riparian rights are kept by the state.
Sec. 76. [469.075] [FERGUS FALLS.]
Subdivision 1. [ESTABLISHMENT.] The city of Fergus Falls
may establish a port authority commission that has the same
powers as a port authority established under section 50 or other
law. If the city establishes a port authority commission, the
city shall exercise all the powers relating to the port
authority granted to a city by sections 49 to 69 or other law.
Notwithstanding any law to the contrary, the city may choose the
name of the commission.
Subd. 2. [MUNICIPAL HOUSING AND REDEVELOPMENT AUTHORITY.]
If the city of Fergus Falls establishes a port authority
commission under subdivision 1, the commission may exercise the
same powers as a municipal housing and redevelopment authority
established under sections 1 to 47 or other law. The city shall
then exercise all the powers relating to the municipal housing
and redevelopment authority granted to a city by sections 1 to
47 or other law.
Sec. 77. [469.076] [GRANITE FALLS.]
The Granite Falls city council may use the powers of a
governmental agency or subdivision under sections 49 to 69
except that the council may not use the powers in section 61.
The powers must be used according to and for the purposes of
Laws 1981, chapter 225.
Sec. 78. [469.077] [HASTINGS.]
Subdivision 1. [ESTABLISHMENT; POWERS.] The city of
Hastings may, by adoption of an enabling resolution in
compliance with the procedural requirements of subdivision 3,
establish a port authority commission that, subject to the
provisions of subdivision 2, has the same powers as a port
authority established under section 50 or other law, and a
housing and redevelopment authority established under sections 1
to 47 or other law, and shall constitute an "agency" that may
administer one or more municipal development districts under
section 111. If the city establishes a port authority
commission under this section, the city shall exercise all the
powers relating to a port authority granted to any city by
sections 49 to 69 or other law, and all powers relating to a
housing and redevelopment authority granted to any city by
sections 1 to 47 or other law.
Subd. 2. [LIMITATION OF POWERS.] (a) The enabling
resolution may impose the following limitations upon the actions
of the port authority:
(1) that the port authority shall not exercise any
specified powers contained in sections 1 to 47 and 49 to 69 or
that the port authority shall not exercise any powers without
the prior approval of the city council;
(2) that, except when previously pledged by the port
authority, the city council may, by resolution, require the port
authority to transfer any portion of the reserves generated by
activities of the port authority which the city council
determines is not necessary for the successful operation of the
port authority, to the city general fund, to be used for any
general purpose of the city;
(3) that the sale of all bonds or obligations issued by the
port authority be approved by the city council before issuance;
(4) that the port 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 port authority must be
consistent with the adopted comprehensive plan of the city, and
any official controls implementing the comprehensive plan;
(6) that the port authority submit to the city council for
approval by resolution any proposed project as defined in
section 175, subdivision 8;
(7) that the port authority submit all planned activities
for influencing the action of any other governmental agency,
subdivision, or body to the city council for approval;
(8) that the port authority submit its administrative
structure and management practices to the city council for
approval; and
(9) any other limitation or control established by the city
council by the enabling resolution.
(b) The enabling resolution may be modified at any time,
subject to clause (e), and provided that any modification is
made in accordance with the procedural requirements of
subdivision 3.
(c) Without limiting the right of the port authority to
petition the city council at any time, each year, within 60 days
of the anniversary date of the initial adoption of the enabling
resolution, the port 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 port authority, and make any
modifications it considers appropriate; provided that any
modification shall be made in accordance with the procedural
requirements of subdivision 3.
(d) A determination by the city council that the
limitations imposed under this section have been complied with
by the port authority shall be conclusive.
(e) Limitations imposed under this section must not be
applied in a manner that impairs the security of any bonds
issued or contracts executed prior to the imposition of the
limitation. The city council shall not modify any limitations
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.
Subd. 3. [PROCEDURAL REQUIREMENT.] (a) The creation of a
port authority by the city of Hastings must be by written
resolution known as the enabling resolution. Prior to adoption
of 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.
(b) 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.
Subd. 4. [NAME.] Notwithstanding any law to the contrary,
the city may choose the name of the commission.
Subd. 5. [REMOVAL OF COMMISSIONERS FOR CAUSE.] A
commissioner of the port authority 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. 79. [469.078] [MINNEAPOLIS.]
Subdivision 1. [MAY USE CHAPTER 458 POWERS GRANTED BY 1980
LAW.] The city of Minneapolis may exercise those powers of a
governmental agency or subdivision sections 49 to 69 granted to
it by Laws 1980, chapter 595.
Subd. 2. [PORT OPERATOR EXEMPT FROM BID LAW.] If the city
of Minneapolis contracts with a corporation to operate a port
facility, the corporation may sell, purchase, or rent supplies,
materials, or equipment, or construct, alter, expand, repair, or
maintain real or personal property at the facility without
regard to section 471.345. This subdivision applies regardless
of the source of funds disbursed by the corporation.
Sec. 80. [469.079] [NORTH MANKATO.]
Subdivision 1. [ESTABLISHMENT.] The city of North Mankato
may establish a port authority commission that has the same
powers as a port authority established under section 50 or other
law. If the city establishes a port authority commission, the
city shall exercise all the powers relating to the port
authority granted to a city by sections 49 to 69 or other law.
Notwithstanding any law to the contrary, the city may choose the
name of the commission and may appoint a seven-member commission.
Subd. 2. [MUNICIPAL HOUSING AND REDEVELOPMENT AUTHORITY.]
If the city of North Mankato establishes a port authority
commission under subdivision 1, the commission may exercise the
same powers as a municipal housing and redevelopment authority
established under sections 1 to 47 or other law.
Sec. 81. [469.080] [PLYMOUTH.]
The city of Plymouth may establish a port authority that
has the same powers as a port authority established pursuant to
section 50. If the city establishes a port authority, the city
shall exercise all the powers granted to a city by sections 49
to 69 or other law.
Sec. 82. [469.081] [RED WING.]
Subdivision 1. [ESTABLISHMENT.] The city of Red Wing may,
by adoption of an enabling resolution in compliance with the
procedural requirements of subdivision 3, establish a port
authority commission that, subject to the provisions of
subdivision 2, has the same powers as a port authority
established under section 50 or other law, and a housing and
redevelopment authority established under sections 1 to 47 or
other law, and shall constitute an "agency" that may administer
one or more municipal development districts under section 111.
If the city establishes a port authority commission under this
section, the city shall exercise all the powers relating to a
port authority granted to any city by sections 49 to 69 or other
law, and all powers relating to a housing and redevelopment
authority granted to any city by sections 1 to 47 or other law.
Subd. 2. [LIMITATION OF POWERS.] (a) The enabling
resolution may impose the following limitations upon the actions
of the port authority:
(1) that the port authority shall not exercise any
specified powers contained in sections 1 to 47 and 49 to 69 or
that the port authority shall not exercise any powers without
the prior approval of the city council;
(2) that, except when previously pledged by the port
authority, the city council may, by resolution, require the port
authority to transfer any portion of the reserves generated by
activities of the port authority which the city council
determines is not necessary for the successful operation of the
port authority, to the city general fund, to be used for any
general purpose of the city;
(3) that the sale of all bonds or obligations issued by the
port authority be approved by the city council before issuance;
(4) that the port 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 port authority must be
consistent with the adopted comprehensive plan of the city, and
any official controls implementing the comprehensive plan;
(6) that the port authority submit to the city council for
approval by resolution any proposed project as defined in
section 175, subdivision 8;
(7) that the port authority submit all planned activities
for influencing the action of any other governmental agency,
subdivision, or body to the city council for approval;
(8) that the port authority submit its administrative
structure and management practices to the city council for
approval; and
(9) any other limitation or control established by the city
council by the enabling resolution.
(b) The enabling resolution may be modified at any time,
subject to clause (e), and provided that any modification is
made in accordance with the procedural requirements of
subdivision 3.
(c) Without limiting the right of the port authority to
petition the city council at any time, each year, within 60 days
of the anniversary date of the initial adoption of the enabling
resolution, the port 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 port authority, and make any
modifications it considers appropriate; provided that any
modification shall be made in accordance with the procedural
requirements of subdivision 3.
(d) A determination by the city council that the
limitations imposed under this section have been complied with
by the port authority shall be conclusive.
(e) Limitations imposed under this section must not be
applied in a manner that impairs the security of any bonds
issued or contracts executed prior to the imposition of the
limitation. The city council shall not modify any limitations
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.
Subd. 3. [PROCEDURAL REQUIREMENT.] (a) The creation of a
port authority by the city of Red Wing must be by written
resolution known as the enabling resolution. Prior to adoption
of 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.
(b) 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.
Subd. 4. [NAME.] Notwithstanding any law to the contrary,
the city may choose the name of the commission.
Subd. 5. [REMOVAL OF COMMISSIONERS FOR CAUSE.] A
commissioner of the port authority 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. 83. [469.082] [ROSEVILLE; PORT AUTHORITY.]
The governing body of the city of Roseville may exercise
all the powers of a port authority provided by sections 49 to 69.
Sec. 84. [469.083] [ST. CLOUD.]
The St. Cloud city council may exercise all the powers of a
port authority provided by sections 49 to 69.
Sec. 85. [469.084] [ST. PAUL.]
Subdivision 1. [POWERS RELATED TO RECREATIONAL
FACILITIES.] Notwithstanding any law to the contrary, the port
authority of the city of St. Paul may plan for, acquire by
condemnation, purchase, or otherwise, construct, improve,
operate, directly, by lease or otherwise, and maintain parks and
other recreation facilities along navigable rivers and lakes
within its port district, and on lands abutting the rivers and
lakes. The port authority shall establish rules on the use of
the rivers, lakes, parks and recreation facilities either alone
or in cooperation with the federal government or its agencies,
the city of St. Paul, the state, or an agency or political
subdivision of the state.
Subd. 2. [NO POLICE POWER.] The port authority does not
have police power except as provided by subdivisions 1 to 8.
Subd. 3. [CONSENT FOR CITY LAND.] The port authority must
not take lands owned, controlled, or used by the city of St.
Paul without consent of the city council.
Subd. 4. [PORT JURISDICTION.] For all other recreation
purposes the port authority has jurisdiction over the use of all
the navigable rivers or lakes and all the parks and recreation
facilities.
Subd. 5. [EXPENDITURES; BONDS.] The port authority may
spend port authority money to carry out subdivisions 1 to 8 and
issue bonds for the purposes in subdivisions 1 to 8 according to
either section 61 or 62.
Subd. 6. [CITY, COUNTY PLAN APPROVAL.] The port authority,
prior to taking action under subdivisions 1 to 8, shall submit
for approval plans to acquire, improve, and operate parks and
recreation facilities along navigable rivers and lakes within
its port district to the city of St. Paul and shall submit the
plans for all areas located within Ramsey county, whether
located within or without the port district, to the county for
approval.
Subd. 7. [REVENUE BONDS; SALE; RATE OF INTEREST.]
Notwithstanding any law to the contrary, the sale of revenue
bonds issued by the port authority under section 62, shall be at
public sale under section 475.60, or in accordance with the
procedures set forth in sections 153 to 166. The bonds may be
sold in the manner and for the price that the port authority
determines to be for the best interest of the port authority. A
sale must not be made at a price so low as to cause the average
annual rate of interest on the money received from the sale to
exceed eight percent per year computed by adding the amount of
the discount to the total amount of interest payable on all
obligations of the series to their stated maturity dates. The
bonds may be made callable. If issued as callable, the bonds
may be refunded.
Subd. 8. [RELATION TO INDUSTRIAL DEVELOPMENT PROVISIONS.]
Notwithstanding any law to the contrary, the port authority of
the city of St. Paul, under sections 49 to 69 and this section,
may do what a redevelopment agency may do or must do under
sections 153 to 166 to further any of the purposes of sections
49 to 69 and subdivisions 1 to 8. The port authority may use
its powers and duties under sections 49 to 69 and subdivisions 1
to 8 to further the purposes of sections 153 to 166. The powers
and duties in subdivisions 1 to 8 are in addition to the powers
and duties of the port authority under sections 49 to 69, and
under sections 153 to 166. The port authority may use its
powers for industrial development or to establish industrial
development districts. If the term " industrial" is used in
relation to industrial development purposes under sections 49 to
69, the term includes "economic" and "economic development."
Subd. 9. [MAY JOIN IN SUPPLYING SMALL BUSINESS CAPITAL.]
Notwithstanding any contrary law, the port authority of the city
of St. Paul may participate with public or private corporations
or other entities, whose purpose is to provide venture capital
to small businesses that have facilities located or to be
located in the port district. For that purpose the port
authority may use not more than ten percent of available annual
net income or $400,000 annually, whichever is less, to acquire
or invest in securities of, and enter into financing
arrangements and related agreements with, the corporations or
entities. The participation by the port authority must not
exceed in any year 25 percent of the total amount of funds
provided for venture capital purposes by all of the
participants. The corporation or entity shall report in writing
each month to the commissioners of the port authority all
investment and other action taken by it since the last report.
Funds contributed to the corporation or entity must be invested
pro rata with each contributor of capital taking proportional
risks on each investment. As used in this subdivision, the term
"small business" has the meaning given it in section 645.445,
subdivision 2.
Subd. 10. [RECREATION FACILITIES ON MISSISSIPPI RIVER.]
The port authority of the city of Saint Paul has jurisdiction
over the use of the Mississippi River for recreation purposes
within its port district and may acquire and may spend port
authority money for lands abutting the river within the port
district to construct, operate directly, by lease or otherwise,
and maintain recreation facilities. The authority shall
establish rules on the use of the river and abutting lands,
either individually, or in cooperation with the federal
government or its agencies, the city of Saint Paul, the state,
or a state agency, or political subdivision.
Subd. 11. [REVENUE BONDS.] Notwithstanding any law or
charter provision to the contrary, an issue of revenue bonds
authorized by the port authority of the city of St. Paul shall
be issued only with the consent of the St. Paul city council in
a resolution. Notwithstanding any law or charter provision to
the contrary, a project to be financed by the port authority of
the city of St. Paul by proceeds of revenue bonds shall be
financed only with the consent of the St. Paul city council in a
resolution. An existing obligation, contract, collective
bargaining or other agreement, fringe benefit plan, or covenant
made or entered into by the St. Paul port authority is not
impaired by this subdivision.
Subd. 12. [CITY SUPERVISION OF AUTHORITY EMPLOYEES.]
Notwithstanding any law or charter provision to the contrary,
the council may, by resolution adopted by a majority of the
council, place any employee of the port authority under the
direction, supervision, or control of the mayor or a department
of the city.
Subd. 13. [INVESTMENT IN COMMERCIAL PAPER.]
Notwithstanding section 471.56 or other law, the port authority
of the city of St. Paul may invest its funds in commercial paper
of prime quality in the same manner as the state board of
investment may invest money not currently needed.
Subd. 14. [BOND FOR TREASURER AND ASSISTANT TREASURER.]
The treasurer and assistant treasurer of the port authority of
the city of Saint Paul shall give bond to the state in sums not
to exceed $25,000 and $10,000 respectively. The bonds must be
conditioned for the faithful discharge of their duties. The
bonds must be approved as to both form and surety by the port
authority and must be filed with its secretary. The amount of
the bonds must be set at least annually by the port authority.
Sec. 86. [469.085] [SOUTH SAINT PAUL.]
The South Saint Paul city council may exercise the powers
of a port authority, including the port authority of the city of
Saint Paul, under sections 49 to 69.
Sec. 87. [469.086] [WADENA.]
The city of Wadena may establish a port authority
commission that has the same powers as a port authority
established under section 50 or other law. If the city
establishes a port authority commission, the city shall exercise
all the powers relating to the port authority granted to a city
by sections 49 to 69 or other law. Notwithstanding any law to
the contrary, the city may choose the name of the commission and
may appoint a seven-member commission.
Sec. 88. [469.087] [WARROAD.]
The city of Warroad may establish a port authority
commission that has the same powers as a port authority
established under section 50 or other law. If the city
establishes a port authority commission, the city shall exercise
all the powers relating to the port authority granted to a city
by sections 49 to 69 or other law. Notwithstanding any law to
the contrary, the city may choose the name of the commission and
may appoint a seven-member commission.
Sec. 89. [469.088] [WHITE BEAR LAKE.]
The governing body of the city of White Bear Lake may
exercise all the powers of a port authority provided by sections
49 to 69.
Sec. 90. [469.089] [WINONA.]
Subdivision 1. [ESTABLISHMENT.] The Winona city council
may by resolution establish the port authority of Winona.
Subd. 2. [PORT AUTHORITY LAW APPLIES.] Sections 49 to 69
apply to the Winona port authority and to the city of Winona.
The sections apply just as they apply to a port authority
established by section 50, except a seaway port authority, and
to the port authority's city, except as otherwise provided in
this section. For the Winona port authority, when "industrial"
is used in the context of industrial development district under
sections 49 to 69, "industrial" or "industrial development"
includes "economic" or "economic development." Section 57,
subdivision 1, and 68 and 54, subdivision 6, and the per meeting
payment provision of section 51, subdivision 5, do not apply to
the Winona Port Authority.
Subd. 3. [CITY APPROVAL.] Action taken by the Winona port
authority under section 59, 60, subdivision 4, or 62, must be
approved by city council resolution to take effect.
Subd. 4. [STAFF; BUDGET.] The city of Winona, by
resolution of its city council, may provide the port authority
with personnel and staff, temporarily, provisionally, or
permanently on terms and conditions it considers appropriate.
In the same way, the city may appropriate and budget the funds
to administer the port authority as the city considers necessary
and appropriate. The money must be budgeted, used, and
accounted for according to the charter and ordinances of the
city.
Subd. 5. [MARGINAL PROPERTY.] A port authority's decision
that property it seeks is marginal under section 59 is prima
facie evidence in eminent domain proceedings that the property
is marginal. The decision must be made in a resolution. The
resolution must state the characteristics that the authority
thinks makes the property marginal. The port authority
resolution must then be approved by city council resolution.
Subd. 6. [INDUSTRIAL DEVELOPMENT POWERS.] The port
authority has the powers granted to port authorities by sections
153 to 166. The powers may be exercised within and outside its
corporate limits. The exercise of the powers is subject to
approval by resolution of the city council.
Subd. 7. [BOND INTEREST.] Revenue bonds issued by the port
authority may be negotiated and sold at a price resulting in an
average annual net interest rate on the bonds of not more than
seven percent per year computed to the stated maturities.
Subd. 8. [NO ASSESSMENTS; IMPROVEMENT DISTRICTS.] The port
authority must not levy special assessments or establish local
improvement districts. The city of Winona, or its port
authority with the approval by resolution of the city council,
may exercise the powers in section 471.191 to acquire and to
improve recreational land, buildings, and facilities within or
outside their corporate limits.
Subd. 9. [SURPLUS FUNDS.] On or before October 15 in each
year the port authority shall report to the city council the
amount of surplus funds that are in its judgment available for
transfer to the sinking fund for any general obligation bonds of
the authority, to reduce tax levies to pay the bonds. The
council shall then decide by resolution what amount to transfer.
Subd. 10. [WISCONSIN REAL PROPERTY.] The port authority
may purchase or lease real property in Wisconsin for barge
fleeting or for recreation activities or for both.
Subd. 11. [TRANSFER OF CITY PROPERTY TO PORT.] The city of
Winona may transfer, with or without consideration and on other
terms the city council considers desirable, its interest in any
real property, including fee title, to the port authority of
Winona. The transfer must be authorized by ordinance. The
ordinance must contain the following:
(1) the general location and the specific legal description
of the property;
(2) a finding by the city council that the real property is
marginal under section 59, supported by reference to one or more
of the conditions listed in section 49, subdivision 5;
(3) a statement as to the consideration, or absence of it,
to be received by the city at the time of transfer; and
(4) other information considered appropriate by the city
council.
A conveyance of fee title under this subdivision must be by
quitclaim deed.
ECONOMIC DEVELOPMENT AUTHORITIES
Sec. 91. [469.090] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 91 to 109, the
terms defined in this section have the meanings given them
herein, unless the context indicates a different meaning.
Subd. 2. [AUTHORITY.] "Authority" means an economic
development authority.
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:
(1) acquiring property, whether by purchase, lease,
condemnation, or otherwise;
(2) demolishing or removing structures or other
improvements on acquired properties;
(3) correcting soil deficiencies necessary to develop or
use the property for an appropriate use as determined by the
authority;
(4) constructing or installing public improvements,
including streets, roads, and utilities;
(5) providing relocation benefits to the occupants of
acquired properties;
(6) planning, engineering, legal and other services
necessary to carry out the functions listed in clauses (1) to
(5); and
(7) the allocated administrative expenses of the authority
for the project.
Sec. 92. [469.091] [ECONOMIC DEVELOPMENT AUTHORITY.]
Subdivision 1. [ESTABLISHMENT.] A city may, by adopting an
enabling resolution in compliance with the procedural
requirements of section 94, establish an economic development
authority that, subject to section 93, has the powers contained
in sections 91 to 109 and the powers of a housing and
redevelopment authority under sections 1 to 47 or other law, and
of a city under sections 125 to 135 or other law. If the
economic development authority exercises the powers of a housing
and redevelopment authority contained in sections 1 to 47 or
other law, the city shall exercise the powers relating to a
housing and redevelopment authority granted to a city by
sections 1 to 47 or other law.
Subd. 2. [CHARACTERISTICS.] 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. 93. [469.092] [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 1 to 47, 91 to 109, and 125 to 135
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
this section.
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 94.
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. 94. [469.093] [PROCEDURAL REQUIREMENT.]
Subdivision 1. [ENABLING RESOLUTION.] The creation of an
authority by a city must be by written resolution referred to 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. 95. [469.094] [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 sections 1 to 47 and 91 to 109 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 175, subdivision
8, or any other program or project authorized by sections 1 to
47 or sections 125 to 135 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. 96. [469.095] [COMMISSIONERS; APPOINTMENT, TERMS,
VACANCIES, PAY, REMOVAL.]
Subdivision 1. [COMMISSIONERS.] Except as provided in
subdivision 2, paragraph (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 94 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, five, and six years
respectively. 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 paragraphs (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 94.
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. 97. [469.096] [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 likely to be on hand at any one time,
as determined at least annually by the authority provided that
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. 98. [469.097] [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 91 to 109.
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. 99. [469.098] [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. 100. [469.099] [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. 101. [469.100] [OBLIGATIONS.]
Subdivision 1. [TAXES AND ASSESSMENTS PROHIBITED.] An
authority must not levy a tax or special assessment, except as
otherwise provided in sections 91 to 109, 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. 102. [469.101] [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 175,
subdivision 10, except that the district boundaries must be
contiguous, and may use the powers granted in sections 91 to 109
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 91
to 109. It may hold and dispose of the property subject to the
limits and conditions in sections 91 to 109. 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 91 to 109. 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 the property is sold it becomes
subject to taxation.
Subd. 3. [OPTIONS.] The economic development authority may
sign options to purchase, sell, or lease property.
Subd. 4. [EMINENT DOMAIN.] The economic development
authority may exercise the right of 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 take possession of
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. 5. [CONTRACTS.] The economic development authority
may make contracts for the purpose of economic development
within the powers given it in sections 91 to 109. 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 performing its duties. The authority may
contract to purchase and sell real and personal property. An
obligation or expense must not be incurred unless existing
appropriations together with the reasonably 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. 6. [LIMITED PARTNER.] The economic development
authority may be a limited partner in a partnership whose
purpose is consistent with the authority's purpose.
Subd. 7. [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. 8. [SUPPLIES; MATERIALS.] The economic development
authority may buy the supplies and materials it needs to carry
out this section.
Subd. 9. [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 91
to 109 and to acquire and develop an economic development
district and its facilities under this section.
Subd. 10. [DEVELOPMENT DISTRICT AUTHORITY.] The economic
development authority may sell or lease land held by it for
economic development in economic development districts. The
authority may acquire, sell, or lease single or multiple tracts
of land regardless of size, to be developed as a part of the
economic development of the district under sections 91 to 109.
Subd. 11. [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. 12. [RELATION TO OTHER REDEVELOPMENT POWERS.] The
economic development authority may exercise powers and duties of
a redevelopment agency under sections 153 to 166, for a purpose
in sections 1 to 47 or 91 to 109. The authority may also use
the powers and duties in sections 1 to 47 and 91 to 109 for a
purpose in sections 153 to 166.
Subd. 13. [PUBLIC FACILITIES.] The authority may operate
and maintain a public parking facility or other public facility
to promote development in an economic development district.
Subd. 14. [GOVERNMENT 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 91 to 109 or any other related federal, state or local
law in the area of economic development district improvement.
Subd. 15. [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 disseminate information on economic development
within the city.
Subd. 16. [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. 17. [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 91 to 109.
Subd. 18. [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.
Subd. 19. [LOANS IN ANTICIPATION OF BONDS.] After
authorizing bonds under sections 103 and 104, an authority 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. 20. [USE OF PROCEEDS.] The proceeds of obligations
issued by an authority under section 104 and temporary loans
obtained under subdivision 19 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. 21. [MINED UNDERGROUND SPACE DEVELOPMENT.] Upon
delegation by a municipality as provided in section 140, an
authority may exercise any of the delegated powers in connection
with mined underground space development under sections 136 to
142.
Sec. 103. [469.102] [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 91 to 109. 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. Except as otherwise provided in sections 91 to 109,
the issuance of the bonds is governed by chapter 475. The
authority when issuing the bonds is a municipal corporation
under 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, the 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, together with 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 as provided in chapter 276.
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. 104. [469.103] [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
determined by the authority. Section 103, 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 deposit sufficient 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 constitutes
"current expense" under this subdivision based on what is normal
and reasonable under generally 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 103, 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 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 154, subdivision 2,
paragraph (e), and 155, subdivisions 3, 4, and 5 do not apply to
revenue bonds issued under this section and sections 153 to 166
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 103 are subject to the provisions of section
179.
Sec. 105. [469.104] [SECTIONS THAT APPLY IF FEDERAL LIMIT
APPLIES.]
Sections 474A.01 to 474A.21 apply to obligations issued
under sections 91 to 109 that are limited by a federal
limitation act as defined in section 474A.02, subdivision 9, or
existing federal law as defined in section 474A.02, subdivision
8.
Sec. 106. [469.105] [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 if it determines 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 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
91 to 109.
Subd. 5. [ONE-YEAR DEADLINE.] Within one year from the
date of purchase, the purchaser shall devote the property to its
intended use or 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 91 to 109
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 authority
may require preparation of final plans and specifications before
the hearing on the sale.
Sec. 107. [469.106] [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 91 to 109. 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 91 to 109 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
104. Advances made to acquire lands and to construct facilities
for recreation purposes if authorized by law need not be
reimbursed under this section. Sections 91 to 109 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. 108. [469.107] [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 is
not subject to levy limits. 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. 109. [469.108] [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 91 to 109. If the
election is made, the powers and duties set forth in sections 91
to 109 supersede the special law and the special law must not be
used after the election. The use of powers under sections 91 to
109 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 95.
AREA REDEVELOPMENT
Sec. 110. [469.109] [PURPOSE.]
The legislature finds that there exists in the state
certain areas of substantial and persistent unemployment causing
hardship to many individuals and their families and that there
also exist certain rural areas where development and
redevelopment should be encouraged. The legislature finds that
the powers and facilities of the state government and local
communities, in cooperation with the federal government, should
assist rural areas and areas of substantial and chronic
unemployment in planning and financing economic redevelopment by
private enterprise, enabling those areas to enhance their
prosperity by the establishment of stable and diversified local
economies, and to provide new employment opportunities through
the development and expansion of new or existing facilities and
resources.
The legislature finds that the establishment of local or
regional area redevelopment agencies in Minnesota having the
power to acquire, build, lease, sell, or otherwise provide
plants and facilities for industrial, recreational, or
commercial development will create new employment and promote
economic redevelopment of rural areas and of depressed or
underdeveloped areas in the state, and that the accomplishment
of these objectives is a public purpose for which public money
may be spent.
Sec. 111. [469.110] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 110 to 124, the
terms defined in this section have the meanings given them
herein, unless the context indicates otherwise.
Subd. 2. [AUTHORITY.] "Authority" means the energy and
economic development authority.
Subd. 3. [LOCAL AGENCY.] "Local agency" means the area or
municipal redevelopment agencies created or authorized to be
created by sections 110 to 124, or the governing body of any
Indian tribe or any entity established and recognized by that
governing body.
Subd. 4. [MUNICIPALITY.] "Municipality" means any home
rule charter or statutory city, county, town, or school district.
Subd. 5. [GOVERNING BODY.] "Governing body" means the
council, board of trustees, or other body charged with governing
any municipality.
Subd. 6. [BOARD.] "Board" means the governing body of any
local or area redevelopment agency created in accordance with
the provisions of sections 110 to 124.
Subd. 7. [REDEVELOPMENT AREA.] "Redevelopment area" means
a depressed area within the territorial boundaries of any
municipality or group of municipalities of the state reasonably
defined by the local or area redevelopment agency wherein
critical conditions of unemployment, underdevelopment, economic
depression, depletion of natural resources, or widespread
reliance on public assistance are found to exist by the
municipality or municipalities.
Subd. 8. [FEDERAL AGENCY.] "Federal agency" means the
government of the United States or any department, corporation,
agency or instrumentality thereof.
Subd. 9. [MINNESOTA ACCOUNT.] "Minnesota account" means
the account appropriated to the energy and economic development
authority by section 122, to assist a local agency in financing
or planning a redevelopment project.
Subd. 10. [REDEVELOPMENT PROJECT.] "Redevelopment project"
means any approved site, structure, facility, or undertaking
comprising or connected with any industrial, recreational,
commercial, or manufacturing enterprise established or assisted
by a local, regional, or area redevelopment agency.
Subd. 11. [RURAL AREA.] "Rural area" means any area so
defined in section 109 of the rural development act of 1972,
Public Law 92-419, and unless in conflict with that act, shall
include all areas not within the outer boundary of any city
having a population of 50,000 or more and its immediately
adjacent urbanized and urbanizing areas with a population
density of more than 100 persons per square mile.
Subd. 12. [INDIAN ECONOMIC ENTERPRISE.] "Indian economic
enterprise" means any commercial, industrial, or business
activity established or organized for the purpose of profit, at
least 51 percent of which is owned by persons of 25 percent or
more Indian blood.
Subd. 13. [INDIAN TRIBE.] "Indian tribe" means any group
qualifying under Public Law 93-262, section 3.
Sec. 112. [469.111] [LOCAL OR AREA AGENCIES;
ESTABLISHMENT.]
Subdivision 1. [FINDINGS REQUIRED.] In order to carry out
the purposes of sections 110 to 124, any municipality or group
of municipalities may establish a public body, corporate and
politic, to be known as the municipal or area redevelopment
agency in and for that municipality or group of municipalities.
No such agency shall be established until the governing body of
the municipality shall by resolution find that the area is a
rural area as defined herein, or:
(1) that there has existed in the area substantial and
persistent unemployment for an extended period of time;
(2) that the rate of unemployment, excluding unemployment
due primarily to temporary or seasonal factors, is currently six
percent or more as determined by available state or federal
statistics; and
(3) that conditions of chronic unemployment,
underdevelopment of natural resources and economic depression
are not likely to be alleviated without public financial or
planning assistance to provide the economic opportunity for
private, industrial, recreational, commercial, or manufacturing
enterprises.
In making the determinations under this subdivision, the
governing body shall consider, among other relevant factors, the
number of low income farm families in the surrounding farm
areas, the proportion that such low income families are to the
total farm families in such areas, the relationship of the
income levels of the families in each such area to the general
levels of income in the United States, the current and
prospective employment opportunities in each such area, the
extent of migration out of the area, and the proportion of the
population of each such area which has been receiving public
assistance from the federal government or from the state.
Subd. 2. [NOTICE; HEARING.] The governing body of a
municipality shall consider such a resolution only after a
public hearing thereon after notice appropriate to inform the
public given not less than 10 nor more than 30 days prior to the
date of the hearing. Opportunity to be heard shall be granted
to all residents of the municipality and its environs and to all
other interested persons. The resolution shall be published in
the same manner in which ordinances are published in the
municipality.
Subd. 3. [RESOLUTION DEEMED CONCLUSIVE.] When the
resolution becomes effective it shall be deemed sufficient and
conclusive for all purposes.
Subd. 4. [FILING; EFFECT.] When the resolution becomes
effective the clerk of the municipality shall file a certified
copy thereof with the state agency. In any suit, action, or
proceeding involving the validity or enforcement of, or relating
to any contract of a local agency, the agency shall be
conclusively deemed to have become established and authorized to
exercise its powers upon that filing. Proof of the resolution
and of that filing may be made in any such suit, action, or
proceeding by a certificate of the commissioner of energy and
economic development.
Subd. 5. [BOARD OF COMMISSIONERS.] A local agency shall be
governed by a board of commissioners appointed by the mayor or
head of the municipality with the approval of its governing
body. The board shall consist of five commissioners who shall
be residents of the area of operation of the local agency and
shall be appointed initially for terms of one, two, three, four,
and five years respectively. Thereafter all commissioners shall
be appointed for five year terms. Each vacancy in an unexpired
term shall be filled in the same manner in which the original
appointment was made. No public officer or employee shall be
eligible to serve as a commissioner, but a commissioner may be a
notary public.
Subd. 6. [TERMS; CERTIFICATES.] The commissioners shall
hold office until their successors have been appointed and
qualified. A certificate of appointment of each commissioner
shall be filed with the clerk of the municipality and a
certified copy thereof shall be transmitted to the state agency.
Sec. 113. [469.112] [MUNICIPALITIES MAY JOIN TOGETHER.]
Subdivision 1. [JOINT EXERCISE OF POWERS.] Two or more
municipalities, by agreement entered into through action of
their governing bodies, may jointly exercise any of the powers
conferred by sections 110 to 124 after the governing body of
each of the municipalities has adopted the resolution provided
for in section 112, subdivision 1.
Subd. 2. [AGREEMENT TERMS.] The agreement shall set forth
its purpose and the powers to be exercised, and it shall provide
for the method by which the purpose sought shall be accomplished
or the manner in which the power shall be exercised.
Subd. 3. [JOINT BOARD.] The agreement shall provide for
the establishment of a joint board of commissioners to exercise
on behalf of the entire redevelopment area all of the powers
authorized or conferred upon any municipality by the terms of
sections 110 to 124. The joint board shall be selected from the
board of commissioners of the municipalities entering into the
joint agreement and shall be chosen by a vote of the respective
boards; provided that the governor shall also appoint one member
to the joint board from the state at large. The joint board
shall consist of not less than seven nor more than 11 members.
Subd. 4. [TERMINATION.] The agreement may be continued for
a definite term or until rescinded or terminated in accordance
with its terms.
Subd. 5. [DISPOSITION OF PROPERTY AND MONEY.] The
agreement shall provide for the disposition of any property
acquired as a result of the joint exercise of powers and the
return of any surplus moneys in proportion to contributions of
the several contracting parties after the purpose of the
agreement has been completed.
Subd. 6. [RESIDENCE REQUIREMENTS INAPPLICABLE.] The
residence requirements for holding office in any governmental
unit shall not apply to any officer appointed to carry out any
such agreement.
Sec. 114. [469.113] [CONFLICT OF INTEREST.]
No commissioner or employee of any local agency shall
acquire any interest, direct or indirect, in any project or in
any property included or planned to be included in any project,
nor have any interest, direct or indirect, in any contract or
proposed contract for materials or service to be furnished or
used in connection with any project. This section shall not
apply to the deposit of any funds of an agency in any bank in
which a member of an agency shall have an interest, if the funds
are deposited and protected in accordance with chapter 118.
Sec. 115. [469.114] [AGENCIES; MEETINGS, EXPENSES.]
Subdivision 1. [COMMISSIONERS' AUTHORITY.] The powers of
each agency shall be vested in the commissioners thereof in
office at any time, a majority of whom shall constitute a quorum
for all purposes. Each agency shall select a chairman and a
secretary from among its commissioners and shall adopt bylaws
and other rules for the conduct of its affairs as it deems
appropriate. The regular meetings of an agency shall be held in
a fixed place and shall be open to the public. No commissioner
shall receive compensation for his services, but shall be
entitled to receive necessary expenses, including traveling
expenses, incurred in the performance of official duties.
Subd. 2. [STAFF SERVICES.] Any municipality within the
area of operation of the local redevelopment agency may provide
staff services to the agency, including providing liaison
between the local agency, the municipality and the state agency,
and between the local agency and other agencies of the state
whose facilities and services may be useful to the local agency
in accomplishing its purposes.
Subd. 3. [REIMBURSEMENT.] The local agency may reimburse
any municipality or other agency of the state for special
expenses incurred in the provision of any services or for the
use of any facilities required by the local agency.
Sec. 116. [469.115] [POWERS OF AGENCIES.]
A local agency shall have all the powers necessary or
convenient to carry out the purposes of sections 110 to 124;
except that the agencies shall not levy and collect taxes or
special assessments, nor exercise the power of eminent domain
unless the governing body of the municipality or municipalities,
in the case of a joint exercise of power, shall by resolution
have expressly conferred that power on the agency. A local
agency shall also have the following powers in addition to
others granted in sections 110 to 124:
(1) to sue and be sued, to have a seal, which shall be
judicially noticed, and to alter the same at pleasure; to have
perpetual succession; and to make, amend, and repeal rules and
regulations not inconsistent with these sections;
(2) to employ an executive director, technical experts, and
officers, agents and employees, permanent and temporary, that it
requires, and determine their qualifications, duties, and
compensation; for legal service it may require, to call upon the
chief law officer of the municipality or to employ its own
counsel and legal staff; so far as practical, to use the
services of local public bodies, in its area of operation.
Those local bodies, if requested, shall make the services
available;
(3) to delegate to one or more of its agents or employees
the powers or duties it deems proper;
(4) upon proper application by a public body or private
applicant, and after determining that the purpose of sections
110 to 124 will be accomplished by the establishment of the
project in the redevelopment area to approve a redevelopment
project;
(5) to sell, transfer, convey, or otherwise dispose of real
or personal property or any interest therein, and to execute
leases, deeds, conveyances, negotiable instruments, purchase
agreements, and other contracts or instruments, and take action
that is necessary or convenient to carry out the purposes of
these sections;
(6) within its area of operation to acquire real or
personal property or any interest therein by gift, grant,
purchase, exchange, lease, transfer, bequest, devise, or
otherwise. An agency may acquire real property which it deems
necessary for its purposes by exercise of the power of eminent
domain in the manner provided in chapter 117, after adoption of
a resolution declaring that the acquisition of the real property
is necessary to eliminate one or more of the conditions found to
exist in the resolution adopted pursuant to section 112,
subdivision 1;
(7) to designate redevelopment areas;
(8) to cooperate with industrial development corporations,
state and federal agencies, and private persons or corporations
in efforts to promote the expansion of recreational, commercial,
industrial, and manufacturing activity in a redevelopment area;
(9) upon proper application by any public body or private
applicant, to determine whether the declared public purpose of
these sections has been accomplished or will be accomplished by
the establishment of a redevelopment project in a redevelopment
area;
(10) to obtain information necessary to the designation of
a redevelopment area and the establishment of a redevelopment
project therein;
(11) to cooperate with or act as agent for the federal
government, the state, or any state public body or any agency or
instrumentality thereof in carrying out the provisions of these
sections or of any other related federal, state, or local
legislation;
(12) to borrow money or other property and accept
contributions, grants, gifts, services or other assistance from
the federal or state government to accomplish the purposes of
sections 110 to 124;
(13) to conduct mined underground space development
pursuant to sections 136 to 142;
(14) to include in any contract for financial assistance
with the federal government any conditions which the federal
government may attach to its financial aid of a redevelopment
project;
(15) to issue bonds, notes, or other evidences of
indebtedness as hereinafter provided, for any of its purposes
and to secure them by mortgages upon property held or to be held
by it, or by pledge of its revenues, including grants or
contributions; and
(16) to invest any funds held in reserve or sinking funds,
or any funds not required for immediate disbursement, in
property or securities in which savings banks may legally invest
funds subject to their control.
Sec. 117. [469.116] [BOND ISSUE FOR REDEVELOPMENT
PURPOSES.]
Subdivision 1. [POWER TO ISSUE.] A local agency may issue
bonds for any of its corporate purposes. Subject to the
limitations of this section, the bonds may be of the type it
determines, including bonds on which the principal and interest
are payable exclusively from the income and revenues of the
project financed with the proceeds of the bonds, or exclusively
from the income and revenues of certain designated projects,
whether or not they are financed in whole or in part with the
proceeds of the bonds. The bonds may be additionally secured by
a pledge of any grant or contribution from the federal
government or other sources, or a pledge of any income or
revenues of the agency, from the redevelopment project for which
the proceeds of the bonds are to be used, or a mortgage of any
project or other property of the agency. Neither the
commissioners of any agency nor any person executing the bonds
shall be liable personally on the bonds.
Subd. 2. [LIABILITY LIMITED.] The bonds and other
obligations of a local agency shall not be a debt of any
municipality, the state, or any political subdivision thereof.
Neither a municipality nor the state or any political
subdivision thereof shall be liable on the bonds, nor shall the
bonds or obligations be payable out of any funds or properties
other than those of the agency.
Subd. 3. [DEBT LIMITATIONS INAPPLICABLE.] The bonds shall
not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation or restriction.
Subd. 4. [BOND CHARACTERISTICS.] The bonds of a local
agency are declared to be issued for an essential public and
governmental purpose and to be public instrumentalities. The
provisions of these sections exempting from taxation
redevelopment agencies, their properties and income, shall be
considered additional security for the repayment of bonds and
shall constitute a contract between the bondholders, including
transferees, and the local agencies issuing the bonds. A local
agency may confer upon the holder of the bonds the rights and
remedies it deems necessary or advisable, including the right in
the event of default to have a receiver appointed to take
possession of and operate the redevelopment project.
Subd. 5. [TAXABILITY OF TRANSFERRED PROPERTY.] Nothing in
these sections shall be construed to exempt from taxation any
property which any local agency sells, leases, conveys, or
otherwise transfers to private individuals or corporations for
development, use or operation in connection with a redevelopment
project. The property, real or personal, shall have the same
tax status as if it were owned by private individuals or
corporations.
Subd. 6. [TERMS OF BONDS.] The bonds of a local agency
shall be authorized by its resolution and may be issued in one
or more series. They shall bear the date or dates, mature at
the time or times, bear interest at the rate or rates, not
exceeding six percent per annum, be in the denomination or
denominations, be in the form, either coupon or registered,
carry the conversion or registration privileges, have the
priority, and be subject to the terms of redemption as the
resolution, its trust indenture or mortgage may provide. The
bonds may be sold at public or private sale at not less than par.
Subd. 7. [INVESTMENT IN BONDS.] Subject to the approval of
the state agency, the bonds of a local agency may be declared
securities in which all public officers and bodies of the state
and of its municipal subdivisions, all insurance companies and
associations, all savings banks and savings institutions,
including savings, building and loan associations, executors,
administrators, guardians, trustees, and all other fiduciaries
in the state may properly and legally invest the funds within
their control. Each mortgage or issue of bonds shall relate
only to a single specified project, and those bonds shall be
secured by a mortgage upon all the real property of which the
projects consist and shall be first lien bonds, secured by a
mortgage not exceeding 80 percent of the estimated cost prior to
the completion of the project, or 80 percent of the appraised
value or actual cost, but in no event in excess of 80 percent of
the actual cost, after that completion, as certified by the
authority.
Subd. 8. [FEDERAL VOLUME LIMITATION ACT.] Sections 474A.01
to 474A.21 apply to any issuance of obligations under this
section which are subject to limitation under a federal volume
limitation act as defined in section 474A.02, subdivision 9, or
existing federal tax law as defined in section 474A.02,
subdivision 8.
Sec. 118. [469.117] [EMINENT DOMAIN PROCEEDINGS.]
Subdivision 1. [COMPENSATION.] If a local agency deems
necessary, it may, after having filed in court an application to
assess compensation for the property to be appropriated pursuant
to eminent domain proceedings, forthwith pay into court a sum of
money to secure compensation to the owner of the appropriated
property. The amount shall be fixed by the court in a sum not
less than the valuation of the property appropriated as fixed by
the assessor and as finally equalized. The title to the
property appropriated shall pass to the local agency upon the
payment of that sum of money into court. After 30 days notice
thereof to the owner, the local agency may enter upon the
property appropriated and demolish any structure thereon and
proceed with the construction of the project proposed by it. No
property for which condemnation proceedings have been initiated
shall be demolished until 30 days after the court appointed
appraisers have made and filed their award. It shall then
proceed with the prosecution of its suit to assess compensation
with due diligence. The deposit shall be applied, so far as
necessary for that purpose, to the payment of any award that may
be made, with interest thereon, and the remainder, if any, shall
be returned to the local agency.
Subd. 2. [RIGHT OF ACQUISITION.] Real property in a
redevelopment area that is needed or convenient for a project,
which is to be acquired by condemnation pursuant to this
section, may be acquired by the local agency for the project.
This includes any property devoted to a public use, whether or
not held in trust, notwithstanding that the property may have
been previously acquired by condemnation or is owned by a public
utility corporation, it being determined that the public use in
conformity with the provisions of sections 110 to 124 shall be
deemed a superior public use. Property devoted to a public use
may be so acquired only if the governing body of the
municipality has approved its acquisition by the local agency.
An award of compensation shall not be increased by reason of any
increase in the value of the real property caused by the
assembly, clearance or reconstruction, or proposed assembly,
clearance or reconstruction for the purposes of sections 110 to
124 of the real property in an area.
Sec. 119. [469.118] [LOANS TO REDEVELOPMENT AGENCIES.]
Subdivision 1. [CONDITIONS FOR MAKING.] When it has been
determined by the authority upon application of a local agency
that the establishment of a particular redevelopment project in
a redevelopment area has accomplished or will accomplish the
public purposes of sections 110 to 124, the authority may
contract to loan the local agency an amount not in excess of 20
percent of the cost or estimated cost of the redevelopment
project, subject to the following conditions:
(a) In the case of a redevelopment project to be
established,
(1) the authority shall have first determined that the
local agency holds funds in an amount equal to, or property of a
value equal to not less than, 10 percent of the estimated cost
of establishing the redevelopment project, which funds or
property are available for and shall be applied to the
establishment of the project. If a public facility within the
redevelopment area has been or may be constructed and will
benefit a redevelopment project, the imputed value of the
benefit of the facility to the redevelopment project may be
determined and the estimated cost thereof credited to the local
agency for the purpose of satisfying the requirements of this
subparagraph. For purposes of this section, a public facility
includes utility installations, street improvements, public
buildings, parks, playgrounds, schools, recreational buildings,
and parking facilities;
(2) the authority shall have also determined that the local
agency has obtained from other sources, by gift, grant, or loan
from private or other state or federal sources, a firm
commitment for all other funds, over and above the loan of the
state agency, and such funds or property as the redevelopment
agency may hold, necessary for payment of all the estimated cost
of establishing the redevelopment project, and that the sum of
all these funds, together with the machinery and equipment to be
provided by the owner or operator of the redevelopment project
is adequate to insure completion and operation of the plant,
enterprise, or facility.
(b) In the case of a redevelopment project established
without initial state or local agency participation,
(1) the state agency shall have first determined that the
local or area redevelopment agency has expended funds in an
amount equal to, or has applied property of a value equal to,
not less than 10 percent of the cost of establishing the
redevelopment project. If a public facility within the
redevelopment area has been or may be constructed and will
benefit a redevelopment project, the imputed value of the
benefit of the facility to the redevelopment project may be
determined and the estimated cost thereof credited to the local
agency for the purpose of satisfying the requirements of this
subparagraph;
(2) the authority shall have also determined that the local
agency has obtained from other public or private sources other
funds necessary for payment of all the cost of establishing the
redevelopment project, and that the local agency participation
and these funds, together with the machinery and equipment
provided by the owner or operator of the redevelopment project
has been adequate to insure completion and operation of the
plant, enterprise, or facility. The proceeds of any loan made
by the authority to a local agency pursuant to this paragraph
shall be used only for the establishment of additional
redevelopment projects in furtherance of the public purposes of
sections 110 to 124.
Subd. 2. [TERMS.] Any such loan of the authority shall be
for the period of time and shall bear interest at the rate
determined by the authority. It may be secured by a mortgage on
the redevelopment project for which the loan was made. The
mortgage may be second and subordinate only to the mortgage
securing the first lien obligation, if any, issued to secure the
commitment of funds from a private or public source and used in
the financing of the redevelopment project.
Subd. 3. [SOURCE.] Money loaned by the authority to the
local agency shall be withdrawn from the Minnesota account
established by section 122, and paid over to the local agency in
the manner provided by the rules of the authority.
Subd. 4. [DEPOSIT OF PAYMENTS.] All payments of interest
on the loans and repayments of principal shall be deposited by
the authority in the Minnesota account and shall be available to
be applied and reapplied to carry out the purposes of sections
110 to 124.
Subd. 5. [ADJUSTMENT OF PARTICIPATION RATIOS.] When any
agency of the federal government participates in the financing
of a redevelopment project by loan, grant, or otherwise, the
authority may adjust the required ratios of financial
participation by the local agency, the owner or operator of the
redevelopment project, and the authority to insure that the
maximum benefits of federal participation will be available to
the local agency, the authority, or both. No adjustment of
ratios shall permit the authority to grant a loan to the local
agency in excess of 30 percent of the cost or estimated cost of
the redevelopment project.
Subd. 6. [FEDERAL SECURITY.] If any federal agency
participating in the financing of a redevelopment project is not
permitted to take as security for the participation a mortgage,
the lien of which is junior to any other mortgage, the authority
or local agency may take as security for its loan to the project
or local agency, a mortgage junior in lien to that of the
federal agency.
Subd. 7. [INDIAN PROJECTS.] In the case of any
redevelopment project to be established or assisted by
participation of an Indian organization, the Indian organization
shall establish to the satisfaction of the authority that the
project is an Indian economic enterprise.
Subd. 8. [STATE AUTHORITY.] Where a local development
corporation or a local agency does not exist or is financially
unable to participate in a proposed redevelopment project, the
authority may accept loan applications from, and make loans
directly to, private enterprises. The loans are subject to the
same conditions and procedures as loans to local agencies
provided that the city, town, or county government having
jurisdiction over the redevelopment project area passes and
files with the authority a resolution in support of the
redevelopment project stipulating the project's economic benefit
to the area involved. Where a city or town as well as a county
has jurisdiction, the support or opposition of the city or town
government shall prevail over the support or opposition of the
county government in determining whether or not to accept the
application.
Subd. 9. [TECHNICAL ASSISTANCE LOANS.] The authority may
provide technical assistance loans from the Minnesota account
for the development and planning of redevelopment projects. The
technical assistance loans may be provided through the payment
of money to: (1) other state agencies or departments; (2) the
employment of private individuals; (3) the employment of public,
private, or nonprofit firms; (4) state, area, district, or local
organizations; or (5) other nonprofit institutions. Money
awarded pursuant to clauses (2) and (3) shall be in the form of
loans and shall be repaid unless the project is deemed
unfeasible by the authority. The authority shall require the
repayment of some or all technical assistance money and shall
prescribe the terms and conditions of the repayment. The amount
of technical assistance loans is limited to an aggregate of ten
percent of the money available in the Minnesota account. The
technical assistance loans shall not be included when computing
the 20 percent limitation provided in section 121. The
authority may loan technical assistance money in cooperation
with the technical assistance grant programs of any agency of
the federal government. The authority may prescribe rules to
carry out the purposes of this subdivision.
Sec. 120. [469.119] [LOAN APPLICATION REQUIREMENTS.]
Subdivision 1. [APPLICATION CONTENTS.] Prior to the
loaning of any funds for a redevelopment project in a
redevelopment area the local agency shall receive from the
applicant and, in the case of authority participation, shall
forward to the state agency a loan application. The application
shall be in the form adopted by the local agency, and shall
contain among other things the following information:
(1) a general description of the redevelopment project and
of the industrial, recreational, commercial, or manufacturing
enterprise for which the project has been or is to be
established;
(2) a legal description of all real estate necessary for
the project;
(3) plans and other documents as may be required to show
the type, structure, and general character of the redevelopment
project;
(4) a general description of the type, classes, and number
of employees employed or to be employed in the operation of the
redevelopment project; and
(5) cost or estimates of cost of establishing the
redevelopment project.
Subd. 2. [ADDITIONAL REQUIREMENTS FOR AUTHORITY PROJECTS.]
If authority participation in the financing of any redevelopment
project is sought the local agency shall submit a loan
application containing the information described in subdivision
1, together with the following additional information:
(1) A general description and statement of value of any
property, real or personal, of the local agency applied or to be
applied to the establishment of the project;
(2) A statement of cash funds previously applied or then
held by the local agency which are available for and are to be
applied to the establishment of the redevelopment project;
(3) Evidence of the arrangement made by the local agency
for the financing of all costs of the redevelopment project over
and above the participation of the local agency;
(4) In the case of a lease of property by the local agency
a general description of the tenant to whom the local agency has
leased or will lease any property in connection with the
redevelopment project, or, in the case of the sale of property
by the local agency in connection with a redevelopment project,
the buyer to whom the local agency has sold or will sell the
project;
(5) A general description of the form of lease or sales
agreement entered into or to be entered into by and between the
local agency and its tenants or purchasers; and
(6) Evidence that the establishment of the redevelopment
project will not cause the removal of an industrial,
recreational, commercial, or manufacturing plant or facility
from one area of the state to another.
Subd. 3. [AUTHORITY DUTIES.] The authority shall hold
hearings and make investigations as to each loan application
received as necessary to determine whether the purposes of
sections 110 to 124 will be accomplished by the granting of a
requested loan. In carrying out its duties under those
sections, the authority may delegate to other agencies of state
government the powers, duties, and responsibilities it
determines necessary or appropriate to accomplish the purposes
of sections 110 to 124. The other agencies shall perform the
functions and duties delegated pursuant to this subdivision.
Subd. 4. [NOT STATE OBLIGATIONS.] Nothing in sections 110
to 124 shall empower the authority to give, pledge, or loan the
credit or taxing power of the state, nor shall any of the
obligations of the authority be deemed to be obligations of the
state or any of its political subdivisions.
Sec. 121. [469.120] [PARTICIPATION IN FEDERAL LOANS OR
GUARANTEES.]
The authority may participate with the appropriate federal
agency under the Rural Development Act of 1972, the Public Works
and Economic Development Act of 1965, or the Small Business Act
in the financing of redevelopment projects. The participation
may take the form of loans or guarantees of any balance
remaining after federal participation. The loans or guarantees
shall be made subject to the conditions and limitations set
forth in sections 119 and 120. A loan or guarantee shall not
exceed 20 percent of the total cost of the project. The total
guarantees outstanding at any time shall not exceed five times
the balance in the Minnesota account.
Sec. 122. [469.121] [MINNESOTA ACCOUNT.]
Subdivision 1. [ACCOUNT CREATED.] In the economic
development fund created in section 116M.06, subdivision 4,
there is created a Minnesota account, to be used by the
authority in the manner and for the purposes provided in
sections 110 to 124.
Subd. 2. [LOANS; REVOLVING ACCOUNT.] The authority may
draw upon the Minnesota account the amounts the authority
determines for loans to local agencies for the financing and
planning of redevelopment projects. When the amounts so
allocated by the authority as loans to local agencies are repaid
to the authority pursuant to the terms of its agreements with
the local agency, the authority shall pay the amounts into the
Minnesota account. All appropriations and payments made to it
may be applied and reapplied to the purposes of sections 110 to
124 and shall not revert to the general fund of the state.
Subd. 3. [EXCESS MONEY.] If the authority determines that
money held for the credit of the Minnesota account is in excess
of the amounts needed by the authority to carry out the purposes
of sections 110 to 124, the authority may by resolution release
the excess from the account and transfer it to the general fund
of the state treasury.
Subd. 4. [MATCHING MONEY.] The authority may utilize any
money in the Minnesota account for the purpose of matching
federal money available under the Public Works and Economic
Development Act of 1965.
Sec. 123. [469.122] [LIMITATION OF POWERS.]
The state pledges to the United States or any agency
thereof that if any federal agency shall construct, loan, or
contribute any funds for the construction, extension,
improvement, or enlargement of any redevelopment project, or any
portion thereof, the state will not alter or limit the rights
and powers of the authority or the local agency in any manner
inconsistent with the performance of any agreements between the
authority or the local agency and any such federal agency. The
authority and the local agency shall continue to have all powers
herein granted, so long as the same shall be necessary or
desirable for the carrying out of the purposes of these sections.
Sec. 124. [469.123] [EXAMINATION AND AUDIT OF LOCAL
AGENCY.]
The accounts, books and records of any local or area
agency, including its receipts, disbursements, contracts,
mortgages, investments and other matters relating to its
finances, operation and affairs shall be examined and audited
from time to time by the state auditor as provided by law.
CITY DEVELOPMENT DISTRICTS
Sec. 125. [469.124] [PURPOSE.]
The legislature finds that there is a need for new
development in areas of a city that are already built up in
order to provide employment opportunities, to improve the tax
base, and to improve the general economy of the state.
Therefore, cities are authorized to develop a program for
improving a district of the city to provide impetus for
commercial development; to increase employment; to protect
pedestrians from vehicle traffic and inclement weather; to
provide the necessary linkage between peripheral parking
facilities and places of employment and shopping; to provide
off-street parking to serve the shoppers and employees of the
district; to provide open space relief within the district; and
to provide other facilities as are outlined in the development
program adopted by the governing body. The legislature declares
that the actions required to assist the implementation of these
development programs are a public purpose and that the execution
and financing of these programs are a public purpose.
Sec. 126. [469.125] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 125 to 135, the
terms defined in this section have the meanings given them
herein unless the context indicates a different meaning.
Subd. 2. [CITY.] "City" means any home rule charter or
statutory city.
Subd. 3. [DEVELOPMENT PROGRAM.] A "development program" is
a statement of objectives of the city for improvement of a
development district which contains a statement as to the public
facilities to be constructed within the district, the open space
to be created, the environmental controls to be applied, the
proposed reuse of private property, and the proposed operations
of the district after the capital improvements within the
district have been completed.
Subd. 4. [PEDESTRIAN SKYWAY SYSTEM.] "Pedestrian skyway
system" means any system of providing for pedestrian traffic
circulation, mechanical or otherwise, elevated aboveground,
within and without the public right of way, and through or above
private property and buildings, and includes overpasses,
bridges, passageways, walkways, concourses, hallways, corridors,
arcades, courts, plazas, malls, elevators, escalators, heated
canopies and accesses and all fixtures, furniture, signs,
equipment, facilities, services, and appurtenances which in the
judgment of the governing body of the city will enhance the
movement, safety, security, convenience and enjoyment of
pedestrians and benefit the city and adjoining properties. The
use of a public street or public right-of-way for pedestrian
skyway travel only constitutes a public use and shall not
require a vacation of the street or right-of-way.
Subd. 5. [SPECIAL LIGHTING SYSTEMS.] "Special lighting
systems" means lights or light displays of any type located
within or without the public right-of-way.
Subd. 6. [PARKING STRUCTURE.] "Parking structure" means
any building the principal use of which is designed for and
intended for parking of motor vehicles or any parking lot.
Subd. 7. [MAINTENANCE AND OPERATION.] "Maintenance and
operation" means all activities necessary to maintain facilities
after they have been developed and all activities necessary to
operate the facilities including informational and educational
programs, and safety and surveillance activities.
Subd. 8. [GOVERNING BODY.] "Governing body" means the city
council.
Subd. 9. [DEVELOPMENT DISTRICT.] A "development district"
is an area within the corporate limits of a city which has been
so designated and separately numbered by the governing body.
Sec. 127. [469.126] [AUTHORITY GRANTED.]
Subdivision 1. [DESIGNATION OF DISTRICTS.] A city may
designate development districts within the boundaries of the
city. Before designating a district, the city must consult with
its planning agency or department and must hold a public hearing
on the designation. Notice of the hearing must be published in
the official newspaper of the city or, if there is no official
newspaper, in a newspaper of general distribution in the city.
The city shall also provide for relocation pursuant to section
134 and consult with the advisory board created by section 133
before making this designation.
Subd. 2. [POWERS.] Within these districts the city may:
(1) adopt a development program consistent with which the
city may acquire, construct, reconstruct, improve, alter,
extend, operate, maintain, or promote developments aimed at
improving the physical facilities, quality of life and quality
of transportation;
(2) acquire land or easements through negotiation or
through powers of eminent domain;
(3) adopt ordinances regulating traffic in pedestrian
skyway systems, public parking structures, and other facilities
constructed within the development district. Traffic
regulations may include direction and speed of traffic, policing
of pedestrianways, hours that pedestrianways are open to the
public, kinds of service activities that will be allowed in
arcades, parks and plazas, and rates to be charged in the
parking structures;
(4) adopt ordinances regulating access to pedestrian skyway
systems and the conditions under which such access is allowed;
(5) designate districts for mined underground space
development under sections 136 to 142;
(6) require private developers to construct buildings so as
to accommodate and support pedestrian systems which are part of
the program for the development district. When the city
requires the developer to construct columns, beams or girders
with greater strength than required for normal building
purposes, the city shall reimburse the developer for the added
expense from development district funds;
(7) install special lighting systems, special street signs
and street furniture, special landscaping of streets and public
property, and special snow removal systems;
(8) acquire property for the district;
(9) lease or sell air rights over public buildings and
spend public funds for constructing the foundations and columns
in the public buildings strong enough to support the buildings
to be constructed on air rights;
(10) lease all or portions of basement, ground and second
floors of the public buildings constructed in the district; and
(11) negotiate the sale or lease of property for private
development if the development is consistent with the
development program for the district.
Sec. 128. [469.127] [TAX STATUS.]
The pedestrian skyway system, underground pedestrian
concourse, the people mover system, and publicly owned parking
structures are declared to be public property to be used for
essential public and governmental purposes. They are exempt
from all taxes and special assessments of the city, county,
state, or any political subdivision thereof. Taxes do not
include charges for utilities and special services such as heat,
water, electricity, gas, sewage disposal, or garbage removal.
Sec. 129. [469.128] [GRANTS.]
A city may accept grants or other financial assistance from
the government of the United States or any other entity to do
studies, construct and operate the pedestrian skyway system,
underground pedestrian concourses, people mover systems, and
other public improvements authorized by sections 125 to 135.
Sec. 130. [469.129] [ISSUANCE OF BONDS.]
Subdivision 1. [GENERAL OBLIGATION BONDS.] The governing
body may authorize, issue, and sell general obligation bonds to
finance the acquisition and betterment of real and personal
property needed to carry out the development program within the
development district together with all relocation costs
incidental thereto. The bonds shall mature within 30 years from
the date of issue and shall be issued in accordance with
sections 475.51, 475.53, 475.54, 475.55, 475.56, 475.60, 475.61,
475.62, 475.63, 475.65, 475.66, 475.69, 475.70, 475.71. All tax
increments received by the city pursuant to Minnesota Statutes
1986, section 472A.08, shall be pledged for the payment of these
bonds and used to reduce or cancel the taxes otherwise required
to be extended for that purpose. The bonds shall not be
included when computing the city's net debt. Bonds shall not be
issued under this paragraph subsequent to August 1, 1979.
Subd. 2. [REVENUE BONDS.] A city may authorize, issue and
sell revenue bonds under section 179, subdivision 4, to refund
the principal of and interest on general obligation bonds
originally issued to finance a development district, or one or
more series of bonds one of which series was originally issued
to finance a development district, for the purpose of relieving
the city of restrictions on the application of tax increments or
for other purposes authorized by law. The refunding bonds shall
not be subject to the conditions set out in section 475.67,
subdivisions 11 and 12. Tax increments received by the city
with respect to the district may be used to pay the principal of
and interest on the refunding bonds and to pay premiums for
insurance or other security guaranteeing the payment of their
principal and interest when due. Tax increments may be applied
in any manner permitted by section 177, subdivisions 2 and 4.
Sec. 131. [469.130] [MAINTENANCE AND OPERATION.]
Maintenance and operation of the pedestrian systems,
special lighting systems, parking structures, and other public
improvements constructed under provisions of sections 125 to 135
shall be under the supervision of the administrator as
designated in section 132. The cost of maintenance and
operation of the nonrevenue facilities together with the excess
costs of operation and maintenance of revenue producing
facilities, if any, shall be charged against the development
district in which it is located. The amount of assessment
against each property within the district shall be in proportion
to the benefit to the several properties within the district.
By July 1 of each year the administrator of the development
district shall submit to the governing body of the city the
maintenance and operating budget for the following year, and the
pro rata share of the budget to be charged to each property in
the district. The governing body of the city shall certify the
assessments to the county auditor for collection. The governing
body shall levy these assessments in accordance with the
procedures established in section 429.061.
Sec. 132. [469.131] [ADMINISTRATION.]
The governing body of a city may create a department or
designate an existing department, office, or agency or city
housing or redevelopment authority, to administer all districts
authorized under sections 125 to 135. The head of this
department may, subject to rules and limitations adopted by the
governing body, be granted the following powers:
(1) to acquire property or easements through negotiation;
(2) to enter into operating contracts on behalf of the city
for operation of any of the facilities authorized to be
constructed under the terms of sections 125 to 135;
(3) to lease space to private individuals or corporations
within the buildings constructed under the terms of sections 125
to 135;
(4) to lease or sell land and to lease or sell air rights
over structures constructed under the authority of sections 125
to 135;
(5) to enter into contracts for construction of the several
facilities or portion thereof authorized under sections 125 to
135;
(6) to contract with the housing and redevelopment
authority of the city for the administration of any or all of
the provisions of sections 125 to 135;
(7) to certify to the governing body for acquisition
through eminent domain property that cannot be acquired by
negotiation, but is required for implementation of the
development program;
(8) to certify to the governing body the amount of funds,
if any, which must be raised through sale of bonds to finance
the program for development districts; and
(9) to apply for grants from the United States of America
and from other sources.
Sec. 133. [469.132] [ADVISORY BOARD.]
Subdivision 1. [CREATION; MEMBERS; DUTIES.] The governing
body may create an advisory board except in cities of the first
class where the governing body shall create an advisory board.
Except as provided in subdivision 2, a majority of the members
shall be owners or occupants of real property located in or
adjacent to the development district which they serve. The
advisory board shall advise the governing body and the
administrator on the planning, construction and implementation
of the development program, and maintenance and operation of the
district after the program has been completed.
Subd. 2. [SUBSTANTIALLY RESIDENTIAL DISTRICTS.] In a
substantially residential development district the board shall
be comprised of owners and occupants of real property within or
adjacent to the district's boundaries. The board may be
appointed or elected according to guidelines established by the
governing body, provided that the board in the cities of St.
Paul and Minneapolis must be elected. For purposes of this
subdivision a "substantially residential development district"
is a development district in which 40 percent or more of the
land area, exclusive of streets and open space, is used for
residential purposes at the time the district is designated by
the governing body.
Subd. 3. [POWERS.] The governing body shall by resolution
delineate the respective powers and duties of the advisory board
and the planning staff or agency. The resolution shall
establish reasonable time limits for approval by the advisory
board of the phases of the development program, and provide a
mechanism for appealing to the governing body for a final
decision when conflicts arise between the advisory board and the
planning staff or agency, regarding the development program.
Sec. 134. [469.133] [RELOCATION.]
Unless they desire otherwise, provision must be made for
relocation of all persons who would be displaced by a proposed
development district prior to displacement in accordance with
the provisions of sections 117.50 to 117.56. Prior to
undertaking any relocation of displaced persons, the governing
body of a city shall insure that housing and other facilities of
at least comparable quality be made available to the persons to
be displaced.
Sec. 135. [469.134] [EXISTING PROJECTS.]
Sections 125 to 135 do not affect any project or program
using tax increment financing which was approved by a city
council under Laws 1971, chapter 548 or 677, or Laws 1973,
chapter 196, 761 or 764, prior to July 1, 1974, and such
projects or programs may be completed and financed in accordance
with the provisions of the laws under which they were initiated
notwithstanding any provision of this law. Provided, however,
that Laws 1971, chapters 548 and 677, and Laws 1973, chapters
196, 761 and 764, are hereby specifically superseded, except as
to those projects or programs which have been approved prior to
July 1, 1974.
MINED UNDERGROUND SPACE DEVELOPMENT
Sec. 136. [469.135] [POLICY.]
The legislature finds that many subsurface areas of the
state have a largely undeveloped potential to be mined for the
development of underground space. The development and
redevelopment of mined underground space makes use of the
state's special geologic resources, fosters wise land use,
especially in built-up urban areas, encourages commercial and
industrial development, increases employment opportunities,
enhances the tax base, contributes to the preservation of
agricultural and other open lands, permits more energy efficient
development and promotes and protects the public welfare.
Therefore, the legislature finds that it is in the public
interest to authorize cities to encourage, promote, and enable
both public and private development of mined underground space
and to authorize cities to protect both subsurface areas
potentially suitable for development and existing mined
underground space.
Sec. 137. [469.136] [DEFINITIONS.]
Subdivision 1. [TERMS DEFINED.] In sections 136 to 142,
the terms defined in this section have the meanings given them
herein, unless the context indicates a different meaning.
Subd. 2. [AUTHORITY.] "Authority" means an authority, as
defined in section 175, subdivision 2.
Subd. 3. [MINED UNDERGROUND SPACE.] "Mined underground
space" means space resulting from, or which will result from,
the excavation of subsurface areas by underground mining methods
and having limited access from and to the surface and the
supporting material surrounding the space.
Subd. 4. [MINED UNDERGROUND SPACE DEVELOPMENT.] "Mined
underground space development" means the development or
redevelopment of mined underground space for commercial,
industrial, and other public and private use, but does not
include the development or redevelopment of mined underground
space for long-term storage or disposal of hazardous waste or
high level nuclear waste.
Subd. 5. [CITY.] "City" means a home rule charter or
statutory city.
Subd. 6. [PROJECT.] "Project" means a project encompassing
mined underground space development.
Subd. 7. [PROJECT COSTS.] "Project costs" mean all costs
and estimated costs incurred and to be incurred by a city or by
any other person in connection with the acquisition,
construction, reconstruction, improvement, betterment, and
extension of a project, including all engineering,
architectural, legal, fiscal, and administrative fees and
expenses, interest on money borrowed to pay project costs during
construction and for a period up to six months thereafter, title
insurance premiums, rating agency fees, printing expenses,
underwriters' commission or discount, bond insurance or other
credit enhancement premiums or fees, bond trustee fees, and, for
bonds that are not general obligation bonds, a debt service
reserve.
Subd. 8. [PROPERTY RIGHTS.] The words "interest in land,"
"land," "property," "property right," "property interest," and
other terms describing real property include airspace necessary
for the development of projects in subsurface areas.
Sec. 138. [469.137] [POWERS OF CITY.]
A city may, to accomplish the purposes of this chapter:
(1) exercise any powers granted in sections 49 to 69, but
only if the city has authority to exercise the powers granted in
sections 1 to 47, 49 to 69, 91 to 135, and 153 to 166, in
conjunction with the powers granted by sections 136 to 142;
(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 city may acquire by condemnation any
property, property right or interest in property, corporate or
incorporeal, within its boundaries that 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. The fact that the needed
property or interest in property 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, or other governmental
subdivision, railroad, or public or private utility, shall not
prevent its acquisition by the city by the exercise of the right
of eminent domain, provided the existing use is not impaired.
The necessity of the taking of any property or interest in
property by the city shall be determined by a resolution adopted
by the governing body of the city, 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 sections 136 to 142, 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 sections 136
to 142;
(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 sections 136 to 142; and
(7) exercise bonding authority as provided in section 139.
Sec. 139. [469.138] [BONDING AUTHORITY.]
A city may by resolution of its governing body authorize
the issuance of bonds to provide funds for payment of project
costs incurred and to be incurred in the acquisition or
betterment of projects, or for refunding any outstanding bonds
issued by it for any such purpose. The city may pledge to the
payment of the bonds and the interest thereon, its full faith,
credit, and taxing powers, or the proceeds of any designated tax
levies, or the gross or net revenues to be derived from any
project operated by or for the city, or any combination
thereof. Taxes levied for the payment of the bonds and interest
are not subject to levy limits. Bonds issued pursuant to this
section may be sold at public or private sale upon the
conditions the governing body of the city determines, except
that any bonds to which the full faith and credit and taxing
powers of the city are pledged shall be sold in accordance with
the provisions of section 475.60.
Sec. 140. [469.139] [DELEGATION BY CITY.]
Any of the powers provided in sections 138 and 139 may be
exercised by the governing body of a city. Alternatively, the
governing body of a city may, by ordinance or resolution,
delegate to an authority any or all of the powers provided in
sections 138 and 139. An ordinance or resolution delegating
powers to an authority shall specify the powers delegated and
any conditions to that delegation. Any power not expressly
delegated to the authority may not be exercised by the
authority, but may be exercised by the governing body of the
city. To the extent a power is delegated to an authority, any
action of the governing body of the authority shall be
considered to be the action of the governing body of the city.
The governing body of a city may at any time by ordinance or
resolution, whichever was used to delegate powers to an
authority, repeal, rescind, or revoke any or all of the powers
previously delegated to an authority, but the city remains
liable for all actions previously taken and contracts previously
made by the authority.
Sec. 141. [469.140] [PROJECTS DESCRIBED IN MUNICIPAL
INDUSTRIAL DEVELOPMENT LAW.]
If and to the extent any project proposed to be undertaken
by a city also constitutes a project as defined in section 154,
the provisions of sections 153 to 166 shall apply to the
undertaking and financing of that project by the city, except
that to the extent the governing body of a city has delegated
powers to an authority as provided in section 119 those powers
may be exercised under sections 153 to 166 by the authority.
Sec. 142. [469.141] [REGULATION OF DRILLING TO PROTECT
MINED UNDERGROUND SPACE DEVELOPMENT.]
Subdivision 1. [DEPARTMENT OF NATURAL RESOURCES REVIEW.]
The department of natural resources shall review all project
plans that involve dewatering of underground formations for
construction and operation of mined underground space to
determine the effects of the proposal on the quality and
quantity of underground waters in and adjacent to the areas
where the mined underground space is to be developed.
Subd. 2. [POWER TO REGULATE.] Cities may regulate all
drilling, except water well and exploratory drilling that is
subject to the provisions of sections 156A.01 to 156A.10, above,
in, through, and adjacent to subsurface areas designated for
mined underground space development and existing mined
underground space. The regulations may prohibit, restrict,
control, and require permits for such drilling.
Subd. 3. [WATER WELL REGULATION.] Cities may prohibit,
restrict, control, and require permits for drilling of water
wells as defined in section 156A.02, but the construction and
abandonment of water wells is governed by sections 156A.01 to
156A.10.
Subd. 4. [PERMITS FOR WATER REMOVAL.] No mined underground
space project involving or affecting the quality and quantity of
underground waters may be developed until a permit for the
appropriation of waters pursuant to section 105.41, has been
granted by the commissioner of natural resources.
RURAL DEVELOPMENT FINANCING AUTHORITIES
Sec. 143. [469.142] [PURPOSES.]
The purposes of a rural development financing authority are:
(1) to acquire, construct, improve and equip projects
comprising real and personal property within or outside the
state, used or useful for producing or processing products of
agriculture, including assembling, fabricating, manufacturing,
mixing, storing, warehousing, distributing, or selling;
(2) to investigate, improve and develop methods of
constructing, operating and financing such projects;
(3) to provide for the operation and maintenance of each
project under an operating or lease agreement with a person,
firm, or corporation considered qualified by experience and
financial resources to assure that to the limit of its design
and capacity it will make facilities for efficient and
economical processing of agricultural products available
throughout the term of the agreement to all producers
contracting therefor;
(4) to promote agricultural, industrial and scientific
research in cooperation with state institutions of higher
learning and profit or nonprofit private corporations,
associations or foundations;
(5) to assist in promoting new job opportunities through
the development of natural resources and the agricultural
industry by cooperating with private companies and with agencies
of the federal and state governments and with agencies and
political subdivisions of other states and of foreign nations to
engage in the processing of agricultural products;
(6) to enter into contracts with or to employ financial,
management, and production consultants, and scientific and
economic specialists to develop and assist in promoting the
purposes of the authority and to assist in operating,
maintaining, constructing and financing authority projects;
(7) to employ a financial management company to assist in
organizing, initiating, developing and operating projects for
the authority under terms and conditions agreed upon between the
authority and the company and to include any fee charged or to
be charged by the company in the total capital costs of each
project to be financed; and
(8) to provide financial or other assistance to rail users
as defined in section 222.48, subdivision 6, for the purpose of
making capital investment loans for rail line rehabilitation.
Sec. 144. [469.143] [DEFINITIONS.]
In sections 143 to 152, the term "agriculture" includes
forestry and timber production and the phrase "producing
products of agriculture" does not include acquiring agricultural
land.
Sec. 145. [469.144] [ESTABLISHMENT; BOARD.]
Subdivision 1. [ESTABLISHMENT.] Any county or combination
of counties by resolution of the county board or boards may
establish a rural development financing authority as a public
nonprofit corporation. An authority has the powers and duties
conferred and imposed on a private nonprofit corporation by
chapter 317, except as otherwise or additionally provided
herein. No such authority shall transact any business or
exercise any powers until a certified copy of the resolutions of
each participating county board has been submitted to the
secretary of state and a certificate of incorporation issued
pursuant to section 317.10. Each resolution shall include all
of the provisions required by section 317.08, subdivision 2.
Alternatively, a county may determine by resolution of the
county board to exercise the powers granted in this chapter to a
rural development finance authority; no filing is required.
Subd. 2. [BOARD.] Each rural development financing
authority shall be managed and controlled by a board of
directors consisting of that number of persons equal to the
number of counties establishing the authority, but in no case
less than five. The directors shall be elected by the
establishing county board or boards and each county board shall
have one vote. The directors initially elected shall serve
staggered terms designated by the electing board or boards.
Thereafter, all directors shall be elected for five year terms
and until their successors are elected and qualify. Each
vacancy in an unexpired term shall be filled in the manner in
which the original appointment was made. Each director shall be
a resident of the establishing county and no director shall hold
any other public office or be an officer, employee, director,
shareholder, or member of any corporation, firm, or association
with which the authority has entered into any operating or lease
agreement. Directors may be removed by the appointing board or
boards for the reasons and in the manner prescribed by section
10, and shall receive no compensation other than reimbursement
for expenses incurred in the performance of their duties.
Directors shall have no personal liability for corporate
obligations of the authority or the methods of enforcement and
collection thereof.
Subd. 3. [ARTICLES OF INCORPORATION; BYLAWS.] Rural
development financing authorities shall have no capital stock.
Sections 143 to 152 shall constitute their articles of
incorporation. An authority may adopt bylaws consistent with
sections 143 to 152.
Sec. 146. [469.145] [FINANCING PROJECTS AND FACILITIES.]
An authority may provide funds for its purposes by the
following methods:
(1) issuing bonds of the authority as authorized by section
147, subdivision 1; and
(2) issuing notes of the authority as authorized by section
147, subdivision 2.
Sec. 147. [469.146] [ISSUANCE OF BONDS AND NOTES.]
Subdivision 1. [BONDS.] For the purposes authorized in
section 143, the authority may issue bonds and execute mortgages
and contracts, pledge revenues, and enter into covenants and
agreements for the security thereof in the same manner and
subject to the same conditions as a municipality under the
provisions of sections 153 to 166 except as otherwise and
additionally provided in sections 143 to 152. Net rentals and
other charges payable to the authority by the operator or lessee
of any project and pledged by the authority for payment of its
bonds and interest thereon, and for the creation and maintenance
of reserves therefor, may be reduced by amounts not exceeding
the payments actually received by the authority from the other
sources described in sections 143 to 152.
Subd. 2. [NOTES.] The authority may issue notes, including
renewal notes, for any purpose for which bonds may be issued,
whenever the authority determines that payment thereof can be
made in full from any revenues the authority expects to receive
from any source. The notes may be issued to provide funds to
pay preliminary costs of surveys, plans, development, or other
matters relating to any proposed or existing project. The
authority may pledge the revenues, subject to any other pledge
thereof, for the payment of the notes, and may secure the notes
in the same manner and with the same effect as herein provided
for bonds and may also secure the notes by the personal
guarantee of property owners within a benefited area. The
authority may make contracts for the future sale of the notes,
by which the purchaser shall be committed to purchase the notes
on terms and conditions stated in such contracts. The authority
may pay the consideration it deems proper for the commitments.
Sec. 148. [469.147] [PROCESSING AGREEMENT.]
The authority may enter into agreements with owners of
agricultural land, within or outside the state, providing for
payment of charges for the use and availability of any project
for processing products of the land, to pay part or all of the
capital cost incurred by the authority. The charges may be made
payable in fixed amounts, or in installments with interest at an
agreed rate, or in amounts proportionate to the volume of
products processed, or in any combination of these ways. The
agreements may bind landowners to devote a specified acreage to
production for processing by the project, or may bind the
authority and the operator of the project to cause specified
quantities to be processed, or both, for periods as may be
agreed. Charges payable by landowners to the authority under
the agreements may be pledged by it to pay or guarantee the
payment of its bonds, or may be used by the authority for the
purposes stated in section 143.
Sec. 149. [469.148] [APPLICATIONS FOR LOAN GUARANTIES.]
The authority, or a county exercising the powers of an
authority pursuant to section 145, may undertake or participate
in undertaking a project deemed to further the policies and
purposes of the agricultural resource loan guaranty program
established and described in sections 41A.01 to 41A.06, by
applying to the agricultural resource loan guaranty board for a
guaranty by the state of a portion of a loan for the project to
be secured by the applicant, or by another eligible borrower.
For this purpose it may do all acts required of an applicant or
of a borrower under the provisions of sections 41A.01 to 41A.06,
including the computation, segregation, and application of tax
increments by deposit in the loan guaranty fund under the terms
of the loan guaranty.
Sec. 150. [469.149] [AGREEMENTS FOR RESERVATION OF TAX
INCREMENTS.]
The authority may enter into an agreement with any county
in which a project is to be situated, or a county exercising the
powers of an authority may adopt a resolution, under which an
agricultural resource project for which a conditional commitment
for a loan guaranty has been made by the state as provided in
section 41A.04, subdivision 3, is a tax increment financing
project under sections 175 to 180 for so long as may be provided
in the loan guaranty. The tax increment from the agricultural
resource project shall be remitted to the authority or to the
county for deposit and use in the loan guaranty fund of the
state as provided in sections 41A.01 to 41A.06. Notwithstanding
section 155, the tax increment for an agricultural resource
project shall be discharged when either of the following
occurs: (a) the loan obligation has been satisfied; or (b) the
amount in the project account equals the amount of the
guaranteed portion of the outstanding principal and interest on
the guaranteed loan. Every county may, by resolution of the
county board, do all things necessary for the computation,
segregation, and application of tax increments under the loan
guaranty in accordance with this section and sections 175 to 180.
Sec. 151. [469.150] [APPROVAL BY COMMISSIONER OF ENERGY
AND ECONOMIC DEVELOPMENT.]
Any authority contemplating the exercise of the powers
granted by sections 143 to 152 may apply to the commissioner of
energy and economic development for information, advice, and
assistance. No authority shall undertake any project authorized
in sections 143 to 152 until the commissioner has approved the
project, on the basis of preliminary information the
commissioner requires, as tending to further the purposes and
policies of sections 143 to 152. The commissioner may treat the
preliminary information in a confidential manner, to the extent
requested by the authority. Approval under this section shall
not be deemed to be an approval by the commissioner or the state
of the feasibility of the project or the terms of the lease to
be executed or the bonds to be issued therefor, and the
commissioner shall so state in communicating the approval.
Sec. 152. [469.151] [STATE AND COUNTY NOT LIABLE ON
BONDS.]
The bonds and other obligations of an authority shall not
be the debt of the state of Minnesota or of any county or
political subdivision.
MUNICIPAL INDUSTRIAL DEVELOPMENT
Sec. 153. [469.152] [PURPOSES.]
The welfare of the state requires the active promotion,
attraction, encouragement, and development of economically sound
industry and commerce through governmental action for the
purpose of preventing the emergence of blighted and marginal
lands and areas of chronic unemployment. It is the policy of
the state to facilitate and encourage action by local government
units to prevent the economic deterioration of such areas to the
point where the process can be reversed only by total
redevelopment through the use of local, state, and federal funds
derived from taxation, necessitating relocating displaced
persons and duplicating public services in other areas. By the
use of the powers and procedures described in sections 153 to
166, local government units and their agencies and authorities
responsible for redevelopment and economic development may
prevent occurrence of conditions requiring redevelopment, or aid
in the redevelopment of existing areas of blight, marginal land,
and avoidance of substantial and persistent unemployment.
The welfare of the state further requires the provision of
necessary health care facilities, so that adequate health care
services are available to residents of the state at reasonable
cost. The welfare of the state further requires the provision
of county jail facilities for the purpose of providing
adequately for the care, control, and safeguarding of civil
rights of prisoners. The welfare of the state requires that,
whenever feasible, employment opportunities made available in
part by sections 153 to 166 or other state law providing for
similar financing mechanisms should be offered to individuals
who are unemployed or who are economically disadvantaged.
Sec. 154. [469.153] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 153 to 166, the
terms defined in this section have the meanings given them
herein, unless the context indicates a different meaning.
Subd. 2. [PROJECT.] (a) "Project" means (1) any
properties, real or personal, used or useful in connection with
a revenue producing enterprise, or any combination of two or
more such enterprises engaged or to be engaged in generating,
transmitting, or distributing electricity, assembling,
fabricating, manufacturing, mixing, processing, storing,
warehousing, or distributing any products of agriculture,
forestry, mining, or manufacture, or in research and development
activity in this field; (2) any properties, real or personal,
used or useful in the abatement or control of noise, air or
water pollution, or in the disposal of solid wastes, in
connection with a revenue producing enterprise, or any
combination of two or more such enterprises engaged or to be
engaged in any business or industry; (3) any properties, real or
personal, used or useful in connection with the business of
telephonic communications, conducted or to be conducted by a
telephone company, including toll lines, poles, cables,
switching and other electronic equipment and administrative,
data processing, garage and research and development facilities;
(4) any properties, real or personal, used or useful in
connection with a district heating system, consisting of the use
of one or more energy conversion facilities to produce hot water
or steam for distribution to homes and businesses, including
cogeneration facilities, distribution lines, service facilities
and retrofit facilities for modifying the user's heating or
water system to use the heat energy converted from the steam or
hot water.
(b) "Project" also includes any properties, real or
personal, used or useful in connection with a revenue producing
enterprise, or any combination of two or more such enterprises
engaged in any business.
(c) "Project" also includes any properties, real or
personal, used or useful for the promotion of tourism in the
state. Properties may include hotels, motels, lodges, resorts,
recreational facilities of the type that may be acquired under
section 471.191, and related facilities.
(d) "Project" also includes any properties, real or
personal, used or useful in connection with a revenue producing
enterprise, whether or not operated for profit, engaged in
providing health care services, including hospitals, nursing
homes, and related medical facilities.
(e) "Project" does not include any property to be sold or
to be affixed to or consumed in the production of property for
sale, and does not include any housing facility to be rented or
used as a permanent residence.
(f) "Project" also means the activities of any revenue
producing enterprise involving the construction, fabrication,
sale or leasing of equipment or products to be used in
gathering, processing, generating, transmitting or distributing
solar, wind, geothermal, biomass, agricultural or forestry
energy crops, or other alternative energy sources for use by any
person or any residential, commercial, industrial or
governmental entity in heating, cooling or otherwise providing
energy for a facility owned or operated by that person or entity.
(g) "Project" also includes any properties, real or
personal, used or useful in connection with a county jail or
county regional jail, the plans for which are approved by the
commissioner of corrections; provided that the provisions of
section 156, subdivisions 7 and 13, do not apply to those
projects.
(h) "Project" also includes any real properties used or
useful in furtherance of the purposes and policies of sections
136 to 142.
(i) "Project" also includes related facilities as defined
by section 471A.02, subdivision 11.
Subd. 2. [MUNICIPALITY.] "Municipality" means any home
rule charter or statutory city, any town described in section
368.01, and any county if (1) the project is located outside the
boundaries of a city or a town described in section 368.01 or
(2) the project involves telephonic communications conducted by
or to be conducted by a telephone company, or financial or other
assistance to rail users as defined in section 222.48,
subdivision 6, for the purpose of making capital investment
loans for rail line rehabilitation.
Subd. 3. [REDEVELOPMENT AGENCY.] "Redevelopment agency"
means any port authority referred to in sections 49 to 69, 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 91 to 109; any housing and redevelopment
authority referred to in sections 1 to 47 or any body authorized
to exercise the powers of a housing and redevelopment authority;
and any area or municipal redevelopment agency referred to in
sections 110 to 124.
Subd. 4. [COMMISSIONER.] "Commissioner" means the
commissioner of energy and economic development.
Subd. 5. [DEPARTMENT.] "Department" means the department
of energy and economic development.
Subd. 6. [TELEPHONE COMPANY.] "Telephone company" means
any person, firm, association, including a cooperative
association formed pursuant to chapter 308, or corporation,
excluding municipal telephone companies, operating for hire any
telephone line, exchange or system, wholly or partly within this
state.
Subd. 7. [CONTRACTING PARTY.] "Contracting party" means a
party to a revenue agreement other than the municipality or
redevelopment agency.
Subd. 8. [REVENUES.] "Revenues" of a project include
payments under a revenue agreement, or under notes, debentures,
bonds and other secured or unsecured debt obligations of a
contracting party.
Subd. 9. [REVENUE AGREEMENT.] "Revenue agreement" means
any written agreement between a municipality or redevelopment
agency and a contracting party with respect to a project,
whereby the contracting party agrees to pay to the municipality
or redevelopment agency or its order amounts sufficient at all
times to pay when due the principal of, premium, if any, and
interest on all bonds issued by the municipality or
redevelopment agency with respect to that project. A revenue
agreement may be in the form of a lease, mortgage, direct or
installment sale contract, loan agreement, take or pay or
similar agreement, and be secured in manner the parties agree or
be unsecured. A revenue agreement must satisfy the requirements
of section 156, subdivision 5.
Subd. 10. [TRUSTEE.] "Trustee" means any corporation, bank
or other entity authorized under any law of the United States or
of any state to exercise trust powers, or any natural person,
acting as trustee, co-trustee or successor trustee under an
indenture pursuant to designation of the municipality or
redevelopment agency.
Subd. 11. [ALTERNATIVE ENERGY.] "Alternative energy" means
any energy source which does not depend upon nuclear fuel or
nonrenewable fossil fuel, or which makes available another
energy source which currently is wasted and which includes, but
is not limited to, cogeneration or district heating.
Sec. 155. [469.154] [DUTIES OF DEPARTMENT OF ENERGY AND
ECONOMIC DEVELOPMENT.]
Subdivision 1. [GENERALLY.] The department of energy and
economic development shall investigate, assist and advise
municipalities, and report to the governor and the legislature
concerning the operation of sections 153 to 166 and the projects
undertaken under those sections.
Subd. 2. [LOCAL REQUEST FOR ASSISTANCE.] Any municipality
or redevelopment agency contemplating the exercise of the powers
granted by sections 153 to 166 may apply to the commissioner for
information, advice, and assistance. The commissioner may
handle such preliminary information in a confidential manner, to
the extent requested by the municipality.
Subd. 3. [CONDITIONS; APPROVAL.] No municipality or
redevelopment agency shall undertake any project authorized by
sections 153 to 166, except a project referred to in section
154, subdivision 2, paragraph (g), unless its governing body
finds that the project furthers the purposes stated in section
153, nor until the commissioner has approved the project, on the
basis of preliminary information the commissioner requires, as
tending to further the purposes and policies of sections 153 to
166. The commissioner may not approve any projects relating to
health care facilities except as permitted under subdivision 6.
Approval shall not be deemed to be an approval by the
commissioner or the state of the feasibility of the project or
the terms of the revenue agreement to be executed or the bonds
to be issued therefor, and the commissioner shall state this in
communicating approval.
Subd. 4. [HEARING.] Prior to submitting an application to
the department requesting approval of a project pursuant to
subdivision 3, the governing body or a committee of the
governing body of the municipality or redevelopment agency shall
conduct a public hearing on the proposal to undertake and
finance the project. Notice of the time and place of hearing,
and stating the general nature of the project and an estimate of
the principal amount of bonds or other obligations to be issued
to finance the project, shall be published at least once not
less than 14 days nor more than 30 days prior to the date fixed
for the hearing, in the official newspaper and a newspaper of
general circulation of the municipality or redevelopment
agency. The notice shall state that a draft copy of the
proposed application to the department, together with all
attachments and exhibits, shall be available for public
inspection following the publication of the notice and shall
specify the place and times where and when it will be so
available. The governing body of the municipality or the
redevelopment agency shall give all parties who appear at the
hearing an opportunity to express their views with respect to
the proposal to undertake and finance the project. Following
the completion of the public hearing, the governing body of the
municipality or redevelopment agency shall adopt a resolution
determining whether or not to proceed with the project and its
financing; it may thereafter apply to the department for
approval of the project.
Subd. 5. [INFORMATION TO ENERGY AND ECONOMIC DEVELOPMENT
AUTHORITY.] Each municipality and redevelopment agency upon
entering into a revenue agreement, except one pertaining to a
project referred to in section 154, subdivision 2, paragraph
(g), shall furnish the energy and economic development authority
on forms the authority prescribes the following information
concerning the project: The name of the contracting party, the
nature of the enterprise, the location, approximate number of
employees, the general terms and nature of the revenue
agreement, the amount of bonds or notes issued, and other
information the energy and economic development authority deems
advisable. The energy and economic development authority shall
keep a record of the information which shall be available to the
public at times the authority prescribes.
Subd. 6. [HEALTH CARE FACILITIES.] The commissioner of
energy and economic development shall forward to the
commissioner of human services and the commissioner of health
for review, all applications for projects relating to nursing
homes licensed by the commissioner of health under chapter
144A. This review process does not apply to projects approved
by the housing finance agency involving residences for the
elderly, the costs of which will not be reimbursed under the
medical assistance program. The commissioner of human services
and the commissioner of health must return the applications to
the commissioner of energy and economic development with a
recommendation within 30 days of receipt. The commissioner of
energy and economic development may not approve an application
unless the project has been determined by both the commissioner
of human services and the commissioner of health to be
consistent with policies of the state as reflected in a statute
or rule. The following projects shall not be approved:
(1) projects that will result in an increase in the number
of nursing home or boarding care beds in the state;
(2) projects involving refinancing, unless the refinancing
will result in a reduction in debt service charges that will be
reflected in charges to patients and third-party payors; and
(3) projects that are inconsistent with the established
policies of the state as reflected in a statute or rule.
Subd. 7. [EMPLOYMENT PREFERENCE.] Every municipality,
redevelopment agency, or other person undertaking a project
financed wholly or in part under sections 153 to 166 or by
similar financing mechanisms is encouraged to target employment
opportunities to qualified individuals who are unemployed or
economically disadvantaged as defined in the federal Job
Training Partnership Act of 1982, Statutes at Large, volume 96,
page 1322. The intent of this subdivision may be accomplished
by mechanisms such as a first source agreement in which the
employer agrees to use a designated employment office as a first
source for employment recruitment, referral, and placement, and
by other means.
Not later than July 1, 1987, every municipality,
redevelopment agency, or other person who undertakes a project
financed wholly or in part by these financing mechanisms shall
submit an employment report to the energy and economic
development authority. The report shall be on forms provided by
the energy and economic development authority and shall include,
but need not be limited to, the following information:
(a) the total number of jobs created by the project,
(b) the number of unemployed and economically disadvantaged
persons hired, and
(c) the average wage level of the jobs created.
Sec. 156. [469.155] [POWERS.]
Subdivision 1. [GENERAL.] Any municipality or
redevelopment agency has the powers set forth in this section.
Subd. 2. [PROJECT ACQUISITION.] It may acquire, construct,
and hold any lands, buildings, easements, water and air rights,
improvements to lands and buildings, and capital equipment to be
located permanently or used exclusively on a designated site and
solid waste disposal and pollution control equipment, and
alternative energy equipment and inventory, regardless of where
located, that are deemed necessary in connection with a project
to be situated within the state, and construct, reconstruct,
improve, better, and extend the project. It may also pay part
or all of the cost of an acquisition and construction by a
contracting party under a revenue agreement.
Subd. 3. [REVENUE BONDS.] It may issue revenue bonds, in
anticipation of the collection of revenues of a project to be
situated within the state, to finance, in whole or in part, the
cost of the acquisition, construction, reconstruction,
improvement, betterment, or extension thereof.
Subd. 4. [REFINANCING HEALTH FACILITIES.] It may issue
revenue bonds to pay, purchase, or discharge all or any part of
the outstanding indebtedness of a contracting party engaged
primarily in the operation of one or more nonprofit hospitals or
nursing homes previously incurred in the acquisition or
betterment of its existing hospital or nursing home facilities
to the extent deemed necessary by the governing body of the
municipality or redevelopment agency; this may include any
unpaid interest on the indebtedness accrued or to accrue to the
date on which the indebtedness is finally paid, and any premium
the governing body of the municipality or redevelopment agency
determines to be necessary to be paid to pay, purchase, or
defease the outstanding indebtedness. If revenue bonds are
issued for this purpose, the refinancing and the existing
properties of the contracting party shall be deemed to
constitute a project under section 154, subdivision 2, clause
(d). Revenue bonds may not be issued pursuant to this
subdivision unless the application for approval of the project
pursuant to section 155 shows that a reduction in debt service
charges is estimated to result and will be reflected in charges
to patients and third party payors. Proceeds of revenue bonds
issued pursuant to this subdivision may not be used for any
purpose inconsistent with the provisions of chapter 256B.
Nothing in this subdivision prohibits the use of revenue bond
proceeds to pay outstanding indebtedness of a contracting party
to the extent permitted by law on March 28, 1978.
Subd. 5. [REVENUE AGREEMENTS.] It may enter into a revenue
agreement with any person, firm, or public or private
corporation or federal or state governmental subdivision or
agency so that payments required thereby to be made by the
contracting party are fixed and revised as necessary to produce
income and revenue sufficient to provide for the prompt payment
of principal of and interest on all bonds issued hereunder when
due. The revenue agreement must also provide that the
contracting party is required to pay all expenses of the
operation and maintenance of the project including adequate
insurance thereon and insurance against all liability for injury
to persons or property arising from its operation, and all taxes
and special assessments levied upon or with respect to the
project and payable during the term of the revenue agreement.
During the term of the revenue agreement, except as provided in
subdivision 17, a tax shall be imposed and collected upon the
project or, pursuant to the provisions of section 272.01,
subdivision 2, for the privilege of using and possessing the
project, in the same amount and to the same extent as though the
contracting party were the owner of all real and personal
property comprising the project.
Subd. 6. [PLEDGE OF REVENUES.] It may pledge and assign to
the holders of the bonds or a trustee therefor all or any part
of the revenues of one or more projects and define and segregate
the revenues or provide for the payment thereof to a trustee,
whether or not the trustee is in possession of the project under
a mortgage or otherwise.
Subd. 7. [SECURITY INTERESTS.] It may mortgage or
otherwise encumber or grant a security interest in any project
and its revenues, or may permit a mortgage, encumbrance, or
security interest to be granted by a contracting party to the
revenue agreement, in favor of the municipality or redevelopment
agency, the holders of the bonds, or a trustee therefor. In
creating a mortgage, encumbrance, or security interest, a
municipality or redevelopment agency shall not obligate itself
except with respect to the project and its revenues, unless
otherwise specifically provided by law.
Subd. 8. [IMPLEMENTATION OF POWERS AND COVENANTS;
CONSTRUCTION AND ACQUISITION BY CONTRACTING PARTY.] It may make
all contracts, execute all instruments, and do all things
necessary or convenient in the exercise of the powers granted in
sections 153 to 166, or in the performance of its covenants or
duties, or in order to secure the payment of its bonds. It may
enter into a revenue agreement authorizing the contracting
party, subject to any terms and conditions the municipality or
redevelopment agency finds necessary or desirable and proper, to
provide for the construction, acquisition, and installation of
the buildings, improvements, and equipment to be included in the
project by any means legally available to the contracting party
and in the manner determined by the contracting party and
without advertisement for bids unless advertisement by the
contracting party is otherwise required by law.
Subd. 9. [INTERGOVERNMENTAL AGREEMENTS.] It may enter into
and perform contracts and agreements with other municipalities,
political subdivisions, and state agencies, authorities, and
institutions as the governing body of the municipality or
redevelopment agency may deem proper and feasible for or
concerning the planning, construction, lease, purchase,
mortgaging or other acquisition, and the financing of a project,
and the maintenance thereof, including an agreement whereby one
municipality issues its revenue bonds in behalf of one or more
other municipalities pursuant to revenue agreements with the
same or different contracting parties, which contracts and
agreements may establish a board, commission, or other body
deemed proper for the supervision and general management of the
facilities of the project. However, no municipality or
redevelopment agency may enter into or perform any contract or
agreement with any school district under which the municipality
or redevelopment agency issues its revenue bonds or otherwise
provides for the construction of school facilities and the
school leases or otherwise acquires these facilities.
Subd. 10. [FEDERAL LOANS AND GRANTS.] It may accept from
any authorized agency of the federal government loans or grants
for the planning, construction, acquisition, leasing, purchase,
or other provision of any project, and enter into agreements
with the agency respecting the loans or grants.
Subd. 11. [CONVEYANCE OF PROJECTS.] It may sell and convey
all properties acquired in connection with projects, including
the sale and conveyance thereof subject to a mortgage, or the
sale and conveyance thereof under an option granted to the
lessee of the project, for the price, and at the time the
governing body of the municipality or redevelopment agency
determines. No sale or conveyance of the properties may be made
in a manner that impairs the rights or interests of the holders
of any bonds issued under the authority of sections 153 to 166.
Subd. 12. [REFUNDING.] It may issue revenue bonds to
refund, in whole or in part, bonds previously issued by the
municipality or redevelopment agency under authority of sections
153 to 166, and interest on them.
Subd. 13. [TERMINATION OF REVENUE AGREEMENT.] If so
provided in the revenue agreement, it may terminate the
agreement and re-enter or repossess the project upon the default
of the contracting party, and operate, lease, or sell the
project in the manner authorized or required by the provisions
of the revenue agreement or of the resolution or indenture
securing the bonds issued for the project. Any revenue
agreement which includes provision for a conveyance of real
estate to the contracting party may be terminated in accordance
with the revenue agreement, notwithstanding that the revenue
agreement may constitute an equitable mortgage.
Subd. 14. [LIMITATIONS ON POWERS.] It may not operate any
project referred to in sections 153 to 166 as a business or in
any manner, except as authorized in subdivision 13. Nothing in
this section authorizes any municipality or redevelopment agency
to expend any funds on any project, other than the revenues of
the project, or the proceeds of revenue bonds and notes issued
hereunder, or other funds granted to the municipality or
redevelopment agency for the purposes of sections 153 to 166,
except:
(1) as is otherwise permitted by law;
(2) to enforce any right or remedy under any revenue
agreement or related agreement for the benefit of the
bondholders or for the protection of any security given in
connection with a revenue agreement; or
(3) to pay without reimbursement part or all of the public
cost of redevelopment of land including the acquisition of the
site of the project, which cost shall not be deemed part of the
cost of the project.
Subd. 15. [INVESTMENT AND DEPOSIT OF FUNDS.] It may invest
or deposit, or authorize a trustee to invest or deposit, any
proceeds of revenue bonds or notes issued pursuant to sections
153 to 166, and income from the investment of the proceeds, in
any manner and upon any terms and conditions agreed to by the
contracting party under the related revenue agreement,
resolution, or indenture, notwithstanding chapter 118 or section
471.56 or 475.56, but subject to any statutory provisions which
govern the deposit and investment of funds of a contracting
party which is itself a governmental subdivision or agency.
Subd. 16. [CONTRACTOR'S BOND AND MECHANICS' LIENS.] It may
waive or require the furnishing of a contractor's payment and
performance bond of the kind described in section 574.26,
whether or not the municipality or redevelopment agency is a
party to the construction contract. If the bond is required,
the provisions of chapter 514 relating to liens for labor and
materials are not applicable with respect to work done or labor
or materials supplied for the project. If the bond is waived,
the provisions of chapter 514 apply with respect to work done or
labor or materials supplied for the project.
Subd. 17. [TAX EXEMPTION FOR UNFINISHED SALE OR RENTAL
PROJECTS.] If a building is to be constructed for sale or rent
to a contracting party, the building is exempt from taxation as
public property exclusively used for a public purpose until the
building is first conveyed or first occupied by the lessee, in
whole or in part, whichever occurs first, for up to a maximum of
four years from the date of issue of bonds or notes for the
project. The exemption must be applied for before October 10 of
the year of the levy of the first taxes to which the exemption
applies.
Sec. 157. [469.156] [AUTHORIZATION OF PROJECTS AND BONDS.]
The acquisition, construction, reconstruction, improvement,
betterment, or extension of any project, the execution of any
revenue agreement or mortgage pertaining thereto, and the
issuance of bonds in anticipation of the collection of the
revenues of the project to provide funds to pay for its cost,
may be authorized by an ordinance or resolution of the governing
body adopted at a regular or duly called special meeting thereof
by the affirmative vote of a majority of its members. No
election shall be required to authorize the use of any of the
powers conferred by sections 153 to 166. No lease of any
project shall be subject to the provisions of section 504.02,
unless expressly so provided in the lease.
Sec. 158. [469.157] [DETERMINATION OF COST OF PROJECT.]
In determining the cost of a project, the governing body
may include all cost and estimated cost of the acquisition,
construction, reconstruction, improvement, betterment, and
extension of the project, all engineering, inspection, fiscal,
legal, administrative, and printing expense, the interest which
it is estimated will accrue during the construction period and
for six months thereafter on money borrowed or which it is
estimated will be borrowed pursuant to sections 153 to 166, and
bond reserves and premiums for insurance of lease rentals
pledged to pay the bonds.
Sec. 159. [469.158] [MANNER OF ISSUANCE OF BONDS; INTEREST
RATE.]
Bonds authorized under sections 153 to 166 must be issued
in accordance with the provisions of chapter 475 relating to
bonds payable from income of revenue producing conveniences,
except that public sale is not required, and the bonds may
mature at the time or times, in the amount or amounts, within 30
years from date of issue, and may be sold at a price equal to
the percentage of the par value thereof, plus accrued interest,
and bearing interest at the rate or rates agreed by the
contracting party, the purchaser, and the municipality or
redevelopment agency, notwithstanding any limitation of interest
rate or cost or of the amounts of annual maturities contained in
any other law. Bonds issued to refund bonds previously issued
pursuant to sections 153 to 166 may be issued in amounts
determined by the municipality or redevelopment agency
notwithstanding the provisions of section 475.67, subdivision 3.
Sec. 160. [469.159] [TEMPORARY LOANS.]
After authorization of bonds pursuant to section 157, the
governing body may provide funds immediately required for the
purpose and not exceeding the amount of the bonds, by effecting
temporary loans upon the terms it determines by resolution. The
loans shall be evidenced by notes subject to the provisions of
section 163, due in not exceeding 24 months from the date
thereof, payable to the order of the lender or to bearer, to be
repaid with interest from the proceeds of the bonds when issued
and delivered to the purchaser. The temporary loans may be made
without any public advertisement.
Sec. 161. [469.160] [VALIDITY OF BONDS; PRESUMPTION.]
The validity of bonds or notes issued under sections 153 to
166 shall not depend on nor be affected by the validity or
regularity of any proceedings relating to the acquisition,
purchase, construction, reconstruction, improvement, betterment,
or extension of the project for which they are issued. The
ordinance or resolution authorizing the bonds or notes may
provide that the bonds or notes shall contain a recital that
they are issued pursuant to sections 153 to 166, and the recital
shall be conclusive evidence of their validity and of the
regularity of their issuance.
Sec. 162. [469.161] [LIMITATION OF POWERS BY RESOLUTION OR
ORDINANCE.]
Any ordinance, resolution, revenue agreement, indenture or
other instrument authorizing the issuance of bonds under
sections 153 to 166 to finance, in whole or in part, the
acquisition, construction, reconstruction, improvement,
betterment, or extension of any project may contain covenants,
notwithstanding that the covenants may limit the exercise of
powers conferred by sections 153 to 166 as to:
(1) the rents or installment payments to be charged for the
use or purchase of properties acquired, constructed,
reconstructed, improved, bettered, or extended under the
authority of sections 153 to 166;
(2) the use and disposition of the revenues of the projects;
(3) the creation and maintenance of sinking funds and the
regulation, use, and disposition thereof;
(4) the creation and maintenance of funds to provide for
maintaining the project and replacement of properties
depreciated, damaged, destroyed, or condemned;
(5) the purpose, or purposes, to which the proceeds of sale
of bonds may be applied and the use and disposition of the
proceeds;
(6) the nature of mortgages or other encumbrances on the
project;
(7) the events of default and the rights and liabilities
arising thereon and the terms and conditions upon which the
holders of bonds may bring any suit or action on the bonds or on
any coupons appurtenant to them;
(8) the issuance of other or additional bonds or
instruments payable from or constituting a charge against the
revenue of the project;
(9) the insurance to be carried upon the project and the
use and disposition of insurance moneys;
(10) the keeping of books of account and the inspection and
audit thereof;
(11) the terms and conditions upon which any or all of the
bonds shall become or may be declared due before maturity and
the terms and conditions upon which the declaration and its
consequences may be waived;
(12) the rights, liabilities, powers, and duties arising
upon the breach by the municipality or redevelopment agency of
any covenants, conditions, or obligations;
(13) the vesting in a trustee or trustees of the right to
enforce any covenants made to secure or to pay the bonds; the
powers and duties of the trustee or trustees, and the limitation
of his or its liabilities;
(14) the terms and conditions upon which the holder or
holders of the bonds, or the holders of any proportion or
percentage of them, may enforce any covenants made under
sections 153 to 166 or any duties imposed thereby;
(15) a procedure by which the terms of any ordinance or
resolution authorizing bonds or of any other contract with
bondholders, including an indenture of trust or similar
instrument, may be amended or abrogated, and the amount of bonds
the holders of which must consent thereto, and the manner in
which the consent may be given; and
(16) the subordination of the security of any bonds issued
under sections 153 to 166 and the payment of principal and
interest thereof, to the extent deemed feasible and desirable by
the governing body, to other bonds or obligations of the
municipality or redevelopment agency issued to finance the
project or that may be outstanding when the bonds thus
subordinated are issued and delivered.
Sec. 163. [469.162] [SOURCE OF PAYMENT FOR BONDS.]
Subdivision 1. [RESTRICTIONS ON PAYMENT.] Revenue bonds
issued under sections 153 to 166 shall not be payable from nor
charged upon any funds other than the revenue pledged to their
payment, except as provided in this section, nor shall the
municipality or redevelopment agency issuing the same be subject
to any liability on them. No holder of the bonds shall ever
have the right to compel any exercise of the taxing power of the
municipality or redevelopment agency to pay the bonds or the
interest thereon, except as provided in subdivision 2, nor to
enforce payment of them against any property of the municipality
or redevelopment agency except those projects, or portions
thereof, mortgaged or otherwise encumbered under the provisions
and for the purpose of sections 153 to 166.
Subd. 2. [TAX INCREMENTS; PRE-1979 PROJECTS.] (a) Any
municipality or redevelopment agency may request the county
auditor of the county in which a project is situated to certify
the original taxable value of the real property included therein
and the tax increments realized each year after the commencement
of the project, as defined in section 42, and shall be entitled
to receive, use, and pledge the tax increments for the further
security of the revenue bonds issued to finance the project, in
either of the following ways:
(1) to pay premiums for insurance guaranteeing the payment
of net rentals when due under the project lease; or
(2) to accumulate and maintain a reserve securing the
payment when due of the principal of and interest on the bonds.
(b) Tax increments with respect to any industrial
development project shall be segregated and specially accounted
for by the county treasurer until all bonds issued to finance
the project have been fully paid; but the county treasurer shall
remit the same to the municipality or redevelopment agency only
in the amount certified to him to be required for any of the
purposes stated in paragraph (a). The amount so needed shall be
certified annually to the county auditor and treasurer by the
municipality or redevelopment agency on or before October 1.
Any tax increment remaining in any year after the remittance
shall, when collected, be distributed among all of the taxing
districts levying taxes on the project area, in proportion to
the amounts levied by them. This subdivision shall not apply to
a project, certification of which is requested subsequent to
August 1, 1979.
Subd. 3. [RESTRICTIONS ON SECURITY.] Bonds issued under
sections 153 to 166 shall not constitute a charge, lien, or
encumbrance, legal or equitable, upon any property of the
municipality or redevelopment agency, except those projects, or
portions thereof, mortgaged or otherwise encumbered under the
provisions and for the purposes of sections 153 to 166. Each
bond issued under sections 153 to 166 shall recite in substance
that the bond, including interest thereon, is payable solely
from the revenue pledged to its payment, but may contain a
reference to the lease insurance or bond reserve for which the
tax increment is pledged and appropriated. No such bond shall
constitute a debt of the municipality or redevelopment agency
within the meaning of any constitutional or statutory
limitation. However, nothing herein shall impair the rights of
holders of bonds issued hereunder to enforce covenants made for
the security thereof as provided in section 164.
Sec. 164. [469.163] [BONDHOLDERS' RIGHTS AND REMEDIES.]
Subject to any contractual limitations binding upon the
holders of any issue of revenue bonds, or a trustee therefor,
including the restriction of the exercise of any remedy to a
specified proportion or percentage of the holders, any holder of
bonds, or any trustee therefor, for the equal benefit and
protection of all bondholders similarly situated, may:
(1) by suit, action, or proceeding at law or in equity,
enforce his or its rights against the municipality or
redevelopment agency and its governing body and any of its
officers, agents, and employees, and may require and compel the
municipality, redevelopment agency, or governing body, or any
officers, agents, or employees to perform and carry out its and
their duties and obligations under sections 153 to 166 and its
and their covenants and agreements with bondholders;
(2) by action require the municipality or redevelopment
agency and the governing body thereof to account as if they were
the trustees of an express trust;
(3) by action enjoin any acts or things which may be
unlawful or in violation of the rights of the bondholders;
(4) bring suit upon the bonds;
(5) foreclose any mortgage or lien given under the
authority of sections 153 to 166, and cause the property
standing as security to be sold under any proceedings permitted
by law or equity; and
(6) exercise any right or remedy conferred by sections 153
to 166 without exhausting and without regard to any other right
or remedy conferred by sections 153 to 166 or any other law of
this state. None of these rights and remedies is intended to be
exclusive of any other, and each is in addition to every other
right and remedy.
Sec. 165. [469.164] [POWERS ADDITIONAL TO APPLICATION OF
EXISTING LAWS AND RULES.]
Subdivision 1. [GENERALLY.] The powers conferred by
sections 153 to 166 are in addition to the powers conferred by
any other law or charter. Insofar as the provisions of any
other law or charter are inconsistent with sections 153 to 166,
the provisions of these sections shall be controlling as to
projects instituted under these sections. Section 334.01 shall
not apply to any interest rate charged or attributable to any
obligation of a contracting party or sublessee or subtenant of a
contracting party in connection with any project for which the
proceedings are conducted, wholly or partly, pursuant to
sections 153 to 166.
Subd. 2. [TELEPHONE COMPANY PROJECTS.] In all cases in
which a project involves telephonic communications conducted by
or to be conducted by a telephone company, all laws of the
state, and rules of the department of public service, that apply
to property owned by a telephone company including laws and
regulations relating to taxation and valuation of telephone
company property, shall similarly apply to any real and personal
property acquired, in whole or in part, by the issuance of bonds
as authorized herein. In the issuance of any bonds pursuant to
sections 153 to 166, these sections shall control,
notwithstanding the provisions of chapter 452, or any other
general or special law relating to municipal or town telephone
companies.
Sec. 166. [469.165] [APPLICABILITY OF HOUSING AND
REDEVELOPMENT AUTHORITY PROVISIONS.]
If property that has been acquired by a housing and
redevelopment authority pursuant to the provisions of sections 1
to 47, is sold, leased or acquired with the consent of the
housing and redevelopment authority in connection with a project
conducted wholly or partly pursuant to the provisions of
sections 153 to 165, it shall be deemed to be devoted to public
purposes and public uses and to conform to the project area
redevelopment plan within the meaning of sections 1 to 47. In
giving its consent, the housing and redevelopment authority may
waive any or all of the terms, conditions, restrictions and
limitations imposed upon the property by section 29, and the
purchaser of the property or any subsequent purchasers may
convey the property without the consent of any housing and
redevelopment authority and, to the extent of the waiver, free
and clear of the terms, conditions, restrictions and
limitations, whether or not the purchaser has obligated himself
as provided in section 29, subdivision 5.
ENTERPRISE ZONES
Sec. 167. [469.166] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 167 to 174, the
terms defined in this section have the meanings given them
herein, unless the context indicates a different meaning.
Subd. 2. [COMMISSIONER.] "Commissioner" means the
commissioner of energy and economic development.
Subd. 3. [ENTERPRISE ZONE.] "Enterprise zone" means an
area in the state designated as such by the commissioner.
Subd. 4. [CITY.] "City" means a home rule charter or
statutory city.
Subd. 5. [MUNICIPALITY.] "Municipality" means a city, or a
county for an area located outside the boundaries of a city. If
an area lies in two or more cities or in both incorporated and
unincorporated areas, "municipality" shall include an entity
formed pursuant to section 471.59 by the governing bodies of the
cities with jurisdiction over the incorporated area and the
counties with jurisdiction over the unincorporated area.
Subd. 6. [GOVERNING BODY.] "Governing body" means the
county board in the case of a county, the city council or other
body designated by its charter in the case of a city, or the
tribal or federal agency recognized as the governing body of an
Indian reservation by the United States secretary of the
interior.
Subd. 7. [HUD.] "HUD" means the United States secretary of
housing and urban development or the secretary's delegate or
successor.
Subd. 8. [INDIAN RESERVATION.] "Indian reservation" means
an area determined to be such by the United States secretary of
the interior.
Subd. 9. [SMSA.] "SMSA" means the area in and around a
city of 50,000 inhabitants or more, or an equivalent area, as
defined by the United States Secretary of Commerce.
Subd. 10. [EMPLOYMENT PROPERTY.] (a) "Employment property"
means taxable property, excluding land but including buildings,
structures, fixtures, and improvements that satisfy each of the
following conditions:
(1) the property is located within an enterprise zone
designated according to section 168.
(2) the property is commercial or industrial property
except a facility the primary purpose of which is one of the
following: retail food and beverage services, automobile sales
or service, or the provision of recreation or entertainment, or
a private or commercial golf course, country club, massage
parlor, tennis club, skating facility including roller skating,
skateboard, and ice skating, racquet sports facility, including
any handball or racquetball court, hot tub facility, suntan
facility, or racetrack, or property of a public utility.
(b) In the case of property located in a border city zone,
"employment property" includes land except in the case of
employment property that is assessed pursuant to the first
clause of the first sentence of section 273.13, subdivision 24,
paragraph (b).
Subd. 11. [MARKET VALUE.] "Market value" of a parcel of
employment property means the value of the taxable property as
annually determined pursuant to section 273.12, less (i) the
market value of all property existing at the time of application
for classification, as last assessed prior to the time of
application, and (ii) any increase in the market value of the
property referred to in clause (i) as assessed in each year
after the employment property is first placed in service. In
each year, any change in the values of the employment property
and the other property on the land shall be deemed to be
proportionate unless caused by a capital improvement or loss.
Subd. 12. [LEGISLATIVE ADVISORY COMMISSION.] "Legislative
advisory commission" means the legislative advisory commission
established under section 3.30.
Sec. 168. [469.167] [DESIGNATION OF ENTERPRISE ZONES.]
Subdivision 1. [PROCESS.] The commissioner shall designate
an area as an enterprise zone if (a) an application is made in
the form and manner and containing the information as prescribed
by the commissioner; (b) the application is made by the
governing body of the area; (c) the area is determined by the
commissioner to be eligible for designation under section 169;
and (d) the zone is selected pursuant to the process provided by
section 170.
Subd. 2. [DURATION.] The designation of an area as an
enterprise zone shall be effective for seven years after the
date of designation.
Subd. 3. [LIMITATION.] No area may be designated as an
enterprise zone after December 31, 1986. No area may be
designated as a border city zone after December 31, 1983.
Sec. 169. [469.168] [ELIGIBILITY REQUIREMENTS.]
Subdivision 1. [GENERALLY.] An area is eligible for
designation if each of the requirements set forth in
subdivisions 2 to 4 are met.
Subd. 2. [BOUNDARIES; VACANT LAND.] The boundary of the
zone or each subdivision of the zone must be continuous and the
area must include vacant or underutilized lands or buildings.
Subd. 3. [ACREAGE; MARKET VALUE.] The area of the zone
must be less than 400 acres. The total market value of the
taxable property contained in the zone at the time of
application must be less than $100,000 per acre or $300,000 per
acre for an area located wholly within a first class city. A
zone which is located in a city of the third or fourth class may
be divided into two to four separate subdivisions which need not
be contiguous with each other. Each subdivision must contain
not less than 100 acres. The restrictions provided by this
paragraph shall not apply to areas designated pursuant to
subdivision 4, paragraph (b) or (c).
Subd. 4. [AREA CHARACTERISTICS.] The area must meet the
requirements of paragraphs (a), (b), or (c).
(a) The proposed zone is located within an economic
hardship area, as established by meeting two or more of the
following criteria:
(1) the percentage of residential housing units within the
area which are substandard is 15 percent or greater under
criteria prescribed by the commissioner using data collected by
the bureau of the census or data submitted by the municipality
and approved by the commissioner;
(2) the percentage of households within the area that fall
below the poverty level, as determined by the United States
Census Bureau, is 20 percent or greater;
(3) (i) the total market value of commercial and industrial
property in the area has declined over three of the preceding
five years, or (ii) the total market value of all property in
the area has declined or has increased less than 10.5 percent
over the preceding three-year period;
(4) for the last full year for which data is available, the
per capita income in the area was 90 percent or less of the per
capita income for the state, excluding standard metropolitan
statistical areas, or for the standard metropolitan statistical
area if the area is located in a standard metropolitan
statistical area;
(5) (i) the current rate of unemployment in the area is at
least 120 percent of the statewide average unemployment for the
last 12-month period for which verifiable figures are available,
or (ii) the total number of employment positions has declined by
at least ten percent during the last 18 months.
For purposes of this paragraph, an economic hardship area
must have a population under the most recent federal decennial
census of at least (1) 4,000 if any of the area is located
wholly or partly within a standard metropolitan statistical
area, or (2) 2,500 for an area located outside of a standard
metropolitan statistical area; except that (1) no minimum
population is required in the case of an area located in an
Indian reservation, and (2) in the case of two or more cities
seeking designation of an enterprise zone under a joint exercise
of power pursuant to section 471.59, the minimum population
required by this provision shall not exceed the sum of the
populations of those cities. A zone qualifying under this
paragraph is referred to in sections 167 to 174 as a "hardship
area zone."
(b) the area is so designated under federal legislation
providing for federal tax benefits to investors, employers or
employees in enterprise zones. A zone qualifying under this
paragraph is referred to in sections 167 to 174 as a "federally
designated zone."
(c) the area consists of a statutory or home rule charter
city with a contiguous border with a city in another state or
with a contiguous border with a city in Minnesota which has a
contiguous border with a city in another state and the area is
determined by the commissioner to be economically or fiscally
distressed. An area designated under this paragraph is referred
to in sections 167 to 174 as a "border city zone."
Sec. 170. [469.169] [SELECTION OF ENTERPRISE ZONES.]
Subdivision 1. [SUBMISSION OF APPLICATIONS.] By August 31
of each year, a municipality seeking designation of an area as
an enterprise zone shall submit an application to the
commissioner. The commissioner shall establish procedures and
forms for the submission of applications for enterprise zone
designation.
Subd. 2. [APPLICATIONS; CONTENTS.] The applications for
designation as an enterprise zone shall contain, at a minimum:
(1) verification that the area is eligible for designation
pursuant to section 169;
(2) a development plan, outlining the types of investment
and development within the zone that the municipality expects to
take place if the incentives and tax reductions specified under
clauses (4) and (5) are provided, the specific investment or
development reasonably expected to take place, any commitments
obtained from businesses, the projected number of jobs that will
be created, the anticipated wage level of those jobs, and any
proposed targeting of the jobs created, including affirmative
action plans if any. This clause does not apply to an
application for designation as a border city zone;
(3) the municipality's proposed means of assessing the
effectiveness of the development plan or other programs to be
implemented within the zone once they have been implemented;
(4) the specific form of tax reductions, authorized by
section 172, subdivision 1, proposed to be granted to
businesses, the duration of the tax reductions, an estimate of
the total state taxes likely to be foregone as a result, and a
statement of the relationship between the proposed tax
reductions and the type of investment or development sought or
expected to be attracted to or maintained in the area if it is
designated as a zone;
(5) the municipality's contribution to the zone as required
by subdivision 5;
(6) any additional information required by the
commissioner; and
(7) any additional information that the municipality
considers relevant to the designation of the area as an
enterprise zone.
Subd. 3. [EVALUATION OF APPLICATIONS.] The commissioner
shall review and evaluate the applications submitted pursuant to
subdivision 2 and shall determine whether each area is eligible
for designation as an enterprise zone. In determining whether
an area is eligible under section 169, subdivision 4, paragraph
(a), if unemployment, employment, income or other necessary data
are not available for the area from the federal departments of
labor or commerce or the state demographer, the commissioner may
rely upon other data submitted by the municipality if the
commissioner determines it is statistically reliable or
accurate. The commissioner, together with the commissioner of
revenue, shall prepare an estimate of the amount of state tax
revenue which will be foregone for each application if the area
is designated as a zone.
By October 1 of each year, the commissioner shall submit to
the legislative advisory commission a list of the areas eligible
for designation as enterprise zones, along with recommendations
for designation and supporting documentation. In making
recommendations for designation, the commissioner shall consider
and evaluate the applications pursuant to the following criteria:
(1) the pervasiveness of poverty, unemployment, and general
distress in the area;
(2) the extent of chronic abandonment, deterioration or
reduction in value of commercial, industrial or residential
structures in the area and the extent of property tax arrearages
in the area;
(3) the prospects for new investment and economic
development in the area with the tax reductions proposed in the
application relative to the state and local tax revenue which
would be foregone;
(4) the competing needs of other areas of the state;
(5) the municipality's proposed use of other state and
federal development funds or programs to increase the
probability of new investment and development occurring;
(6) the extent to which the projected development in the
zone will provide employment to residents of the economic
hardship area, and particularly individuals who are unemployed
or who are economically disadvantaged as defined in the federal
Job Training Partnership Act of 1982, 96 Statutes at Large 1322;
(7) the funds available pursuant to subdivision 7; and
(8) other relevant factors that the commissioner specifies
in his recommendations.
The commissioner shall submit a separate list of the areas
entitled to designation as federally designated zones and border
city zones along with recommendations for the amount of funds to
be allocated to each area.
Subd. 4. [LAC RECOMMENDATIONS.] By October 15, the
legislative advisory commission shall submit to the commissioner
its advisory recommendations regarding the designation of
enterprise zones. By October 30 of each year the commissioner
shall make the final designation of the areas as enterprise
zones, pursuant to section 168, subdivision 1. In making the
designation, the commissioner may make modifications in the
design of or limitations on the tax reductions contained in the
application necessary because of the funding limitations under
subdivision 7.
Subd. 5. [LOCAL CONTRIBUTION.] No area may be designated
as an enterprise zone unless the municipality agrees to make a
qualifying local contribution in the form of a property tax
reduction for employment property as provided by section 171 for
any business qualifying for a state tax reduction pursuant to
this section. A qualifying local contribution may in the
alternative be a local contribution or investment out of other
municipal funds, but excluding any special federal grants or
loans, equivalent to the property tax reduction. In concluding
the agreement with the municipality the commissioner may require
that the local contribution will be made in a specified ratio to
the amount of the state credits authorized. If the local
contribution is to be used to fund additional reductions in
state taxes, the commissioner and the governing body of the
municipality shall enter an agreement for timely payment to the
state to reimburse the state for the amount of tax revenue
foregone as a result. The qualifying local contribution for
development within the portion of an enterprise zone that is
located in a town that has been added by boundary amendment to
an enterprise zone that is located within five municipalities
and was designated in 1984 shall be provided by the town.
Subd. 6. [LIMITATIONS; NUMBER OF DESIGNATIONS.] (a) In
each of the years 1983 and 1984, the commissioner shall
designate at least two but not more than five areas as
enterprise zones. No designations shall be made after December
31, 1984.
(b) No more than one area may be designated as an
enterprise zone in any county, except that two areas may be
designated in a county containing a city of the first class.
(c) No more than two areas in a congressional district may
be designated as an enterprise zone in 1984.
This subdivision shall not apply to federally designated
zones or border city zones.
Subd. 7. [FUNDING LIMITATIONS.] The maximum amount of the
tax reductions which may be authorized pursuant to designations
of enterprise zones is $36,400,000. The maximum amount of this
total that may be authorized by the commissioner for tax
reductions pursuant to section 172, subdivision 1, that will
reduce tax revenues which otherwise would have been received
during fiscal years 1984 and 1985 is $9,000,000. Of the total
limitation and the 1984-1985 biennial limitation the
commissioner shall allocate to border city zones an amount equal
to $16,610,940 and $5,000,000 respectively. These funds shall
be allocated among such zones on a per capita basis except that
the maximum allocation to any one city is $6,610,940 and no
city's allocation shall exceed $210 on a per capita basis. An
amount sufficient to fund the state funded property tax credits,
the refundable income tax credits, and the sales tax exemption,
as authorized pursuant to this section is appropriated to the
commissioner of revenue. Upon designation of an enterprise zone
the commissioner shall certify the total amount available for
tax reductions in the zone for its duration. The amount
certified shall reduce the amount available for tax reductions
in other enterprise zones. If subsequent estimates indicate or
actual experience shows that the approved tax reductions will
result in amounts of tax reductions in excess of the amount
certified for the zone, the commissioner shall implement a plan
to reduce the available tax reductions in the zone to an amount
within the sum certified for the zone. If subsequent estimates
indicate or actual experience shows that the approved tax
reductions will result in amounts of tax reductions below the
amount certified, the difference shall be available for
certification in other zones or used in connection with an
amended plan of tax reductions for the zone as the commissioner
determines appropriate. If the tax reductions authorized result
in reduced revenues for a dedicated fund, the commissioner of
finance shall transfer equivalent amounts to the dedicated fund
from the general fund as necessary. Of the $36,400,000 in tax
reductions authorized under this subdivision, an additional
$800,000 in tax reductions may be authorized within an
enterprise zone located within five municipalities that was
designated by the commissioner in 1984.
Subd. 8. [ADDITIONAL ENTERPRISE ZONE ALLOCATIONS.] (a) In
addition to tax reductions authorized in subdivision 7, the
commissioner may allocate $600,000 for tax reductions pursuant
to section 172, subdivisions 1 to 8, to hardship area zones or
border city zones. Of this amount, a minimum of $200,000 must
be allocated to an area added to an enterprise zone pursuant to
Laws 1986, chapter 465, article 2, section 3. Allocations made
pursuant to this subdivision may not be used to reduce a tax
liability, or increase a tax refund, prior to July 1, 1987.
Limits on the maximum allocation to a zone imposed by
subdivision 7 do not apply to allocations made under this
subdivision.
(b) A city encompassing an enterprise zone, or portion of
an enterprise zone, qualifies for an additional allocation under
this subdivision if the following requirements are met:
(1) the city encompassing an enterprise zone, or portion of
an enterprise zone, has signed contracts with qualifying
businesses that commit the city's total initial allocation
received pursuant to subdivision 7; and
(2) the city encompassing an enterprise zone, or portion of
an enterprise zone, submits an application to the commissioner
requesting an additional allocation for tax reductions
authorized by section 172, subdivisions 1 to 8. The application
must identify a specific business expansion project which would
not take place but for the availability of enterprise zone tax
incentives.
(c) The commissioner shall use the following criteria when
determining which qualifying cities shall receive an additional
allocation under this subdivision and the amount of the
additional allocation the city is to receive:
(1) additional allocations to qualifying cities under this
subdivision shall be made within 60 days of receipt of an
application;
(2) applications from cities with the highest level of
economic distress, as determined using criteria listed in
section 169, subdivision 4, paragraph (a), clauses (1) to (5),
shall receive priority for an additional allocation under this
subdivision;
(3) if the commissioner determines that two cities
submitting applications within one week of each other have equal
levels of economic distress, the application from the city with
the business prospect which will have the greatest positive
economic impact shall receive priority for an additional
allocation. Criteria used by the commissioner to determine the
potential economic impact a business would have shall include
the number of jobs created and retained, the amount of private
investment which will be made by the business, and the extent to
which the business would help alleviate the economic distress in
the immediate community; and
(4) the commissioner shall determine the amount of any
additional allocation a city may receive. The commissioner
shall base the amount of additional allocations on the
commissioner's determination of the amount of tax incentives
which are necessary to ensure the business prospect will expand
in the city. No single allocation under this subdivision may
exceed $100,000. No city may receive more than $250,000 under
this subdivision.
Sec. 171. [469.170] [TAX CLASSIFICATION OF EMPLOYMENT
PROPERTY.]
Subdivision 1. [MUNICIPAL APPLICATIONS.] The governing
body of any municipality that contains an enterprise zone
designated under section 168 shall by resolution establish a
program for classification of new property or improvements to
existing property as employment property pursuant to the
provisions of this section. Applications for classification
under the program shall be filed with the municipal clerk or
auditor in a form prescribed by the commissioner of revenue,
with additions as prescribed by the governing body. The
application shall contain, where appropriate, a legal
description of the parcel of land on which the facility is to be
situated or improved; a general description of the facility or
improvement and its proposed use; the probable time schedule for
undertaking any construction or improvement; and information
regarding the findings required in subdivision 4; the market
value and the assessed value of the land and of all other
taxable property then situated on it, according to the most
recent assessment; and, if the property is to be improved or
expanded, an estimate of the probable cost of the new
construction or improvement and the market value of the new or
improved facility (excluding land) when completed.
Subd. 2. [HEARING.] Upon receipt of an application the
municipal clerk or auditor, subject to any prior approval
required by the resolution establishing the program, shall
furnish a copy to the assessor for the property and to the
governing body of each school district and other public body
authorized to levy taxes on the property. The municipal clerk
or auditor shall publish a notice in the official newspaper of
the time and place of a hearing to be held by the governing body
on the application, not less than 30 days after the notice is
published. The notice shall state that the applicant, the
assessor, representatives of the affected taxing authorities,
and any taxpayer of the municipality may be heard or may present
their views in writing at or before the hearing. The hearing
may be adjourned from time to time, but the governing body shall
take action on the application by resolution within 30 days
after the hearing ends. If disapproved, the reasons shall be
set forth in the resolution. The applicant may appeal to the
commissioner of revenue within 30 days thereafter, but only on
the ground that the determination is arbitrary, in relation to
prior determinations as to classification under the program, or
based upon a mistake of law. If approved, the resolution shall
include determinations as to the findings required in
subdivision 4, and the clerk or auditor shall transmit it to the
commissioner.
Subd. 3. [COMMISSIONER'S ACTION.] Within 60 days after
receipt of an approved application or an appeal from the
disapproval of an application, the commissioner of revenue shall
take action on it. The commissioner of revenue shall approve
each application approved by the governing body if he finds that
it complies with the provisions of this section. If he
disapproves the application, or finds grounds exist for appeal
of a disapproved application, he shall transmit the finding to
the governing body and the applicant. When grounds for appeal
have been determined to exist, the governing body shall
reconsider and take further action on the application within 30
days after receipt of the commissioner's notice and serve
written notice of the action upon the applicant. The applicant,
within 30 days after receipt of notice of final disapproval by
the commissioner of revenue or the governing body, may appeal
from the disapproval to a court of competent jurisdiction.
Subd. 4. [HARDSHIP AREA ZONE CRITERIA.] In the case of
hardship area zones, an application shall not be approved unless
the governing body finds that the construction or improvement of
the facility:
(1) is reasonably likely to create new employment or
prevent a loss of employment in the municipality;
(2) is not likely to have the effect of transferring
existing employment from one or more other municipalities within
the state;
(3) is not likely to cause the total market value of
employment property within the municipality to exceed five
percent of the total market value of all taxable property within
the municipality; or, if it will, considering the amount of
additional municipal services likely to be required for the
employment property, is not likely to substantially impede the
operation or the financial integrity of the municipality or any
other public body levying taxes on property in the municipality;
and
(4) will not result in the reduction of the assessed value
of existing property within the municipality owned by the
applicant, through abandonment, demolition, or otherwise,
without provision for the restoration of the existing property
within a reasonable time in a manner sufficient to restore the
assessed valuation.
Subd. 5. [BORDER CITY ZONE CRITERIA.] In the case of
border city zones, an application for assessment as employment
property under section 273.13, subdivision 24, paragraph (b), or
for a tax reduction pursuant to section 172, subdivision 1, may
not be approved unless the governing body finds that the
construction or improvement of the facility is not likely to
have the effect of transferring existing employment from one or
more other municipalities within the state.
Subd. 6. [CLASSIFICATION.] Property shall be classified as
employment property and assessed as provided for class 4d
property in section 273.13, subdivision 24, paragraph (b), for
taxes levied in the year in which the classification is approved
and for the four succeeding years after the approval. If the
classification is revoked, the revocation is effective for taxes
levied in the next year after revocation.
Subd. 7. [REVOCATION.] The governing body may request the
commissioner of revenue to approve the revocation of a
classification pursuant to this section if it finds by
resolution that:
(1) the construction or improvement of the facility has not
been completed within two years after the approval of the
classification, or any longer period that may have been allowed
in the approving resolution or may be necessary due to
circumstances not reasonably within the control of the
applicant; or
(2) the applicant has not proceeded in good faith with the
construction or improvement of the facility, or with its
operation, in a manner which is consistent with the purpose of
this section and is possible under circumstances reasonably
within the control of the applicant.
The findings may be made only after a hearing held upon
notice mailed to the applicant by certified mail at least 60
days before the hearing.
Subd. 8. [HEARING.] Upon receipt of the request for
revocation, the commissioner of revenue shall notify the
applicant and the governing body of a time and place at which
the applicant may be heard. The hearing must be held within 30
days after receipt of the request. Within 30 days after the
hearing, the commissioner of revenue shall determine whether the
facts and circumstances are grounds for revocation as
recommended by the governing body. If the commissioner of
revenue revokes the classification, the applicant may appeal
from the order to a court of competent jurisdiction at any time
within 30 days after revocation.
Subd. 9. [ECONOMIC DIVERSIFICATION PROJECTS.]
Notwithstanding any provision of sections 167 to 174 to the
contrary, a municipality may classify the property of a business
provided special assistance as a qualified economic
diversification project pursuant to section 116M.07, subdivision
11, clause (d), as employment property under provisions of this
section.
Sec. 172. [469.171] [STATE TAX REDUCTIONS.]
Subdivision 1. [AUTHORIZED TYPES.] The following types of
tax reductions may be approved by the commissioner for
businesses located in an enterprise zone:
(1) an exemption from the general sales tax imposed by
chapter 297A for purchases of construction materials or
equipment for use in the zone if the purchase was made after the
date of application for the zone;
(2) a credit against the income tax of an employer for
additional workers employed in the zone, other than workers
employed in construction, up to a maximum of $3,000 per employee
per year;
(3) an income tax credit for a percentage of the cost of
debt financing to construct new or expanded facilities in the
zone; and
(4) a state paid property tax credit for a portion of the
property taxes paid by a new commercial or industrial facility
or the additional property taxes paid by an expansion of an
existing commercial or industrial facility in the zone.
Subd. 2. [MUNICIPALITY TO SPECIFY.] The municipality shall
specify in its application for designation the types of tax
reductions it seeks to be made available in the zone and the
percentage rates and other appropriate limitations on the
reductions.
Subd. 3. [COMMISSIONER OF REVENUE ACTION.] Upon
designation of an enterprise zone and approval by the
commissioner of the tax reductions to be made available therein,
the commissioner of revenue shall implement the tax reductions.
Subd. 4. [RESTRICTION.] The tax reductions provided by
this section shall not apply to any facility described in
section 103(b)(6)(O) of the Internal Revenue Code of 1986, as
amended through December 31, 1986, or to any regulated public
utility.
Subd. 5. [BORDER CITY AREAS.] The commissioner shall
approve tax reductions authorized by subdivision 1 within a
border city zone only after the governing body of a city
designated as an enterprise zone has designated an area or
areas, each consisting of at least 100 acres, of the city not in
excess of 400 acres in which the tax reductions may be provided.
Subd. 6. [ADDITIONAL BORDER CITY TAX REDUCTIONS.] In
addition to the tax reductions authorized by subdivision 1, for
a border city zone, the following types of tax reductions may be
approved:
(1) a credit against income tax for workers employed in the
zone and not qualifying for a credit under subdivision 1, clause
(2), subject to a maximum of $1,500 per employee per year;
(2) a state paid property tax credit for a portion of the
property taxes paid by a commercial or industrial facility
located in the zone. Notwithstanding subdivision 4, the credits
provided by this subdivision may be provided to the businesses
described in section 103(b)(6)(0)(i) of the Internal Revenue
Code of 1986, as amended through December 31, 1986.
Subd. 7. [DURATION.] Each tax reduction provided to a
business pursuant to this subdivision shall terminate not longer
than five years after the effective date of the tax reduction
for the business. Subject to the five-year limitation, the tax
reductions may be provided after expiration of the zone's
designation.
Subd. 8. [REFUNDABLE CREDITS.] The income tax credits
provided pursuant to subdivisions 1 and 6 may be refundable.
Subd. 9. [RECAPTURE.] Any business that (1) receives tax
reductions authorized by subdivisions 1 to 8, classification as
employment property pursuant to section 171, or an alternative
local contribution under section 170, subdivision 5; and (2)
ceases to operate its facility located within the enterprise
zone within two years after the expiration of the tax reductions
shall repay the amount of the tax reduction or local
contribution pursuant to the following schedule:
Termination Repayment
of operations Portion
Less than 6 months 100 percent
6 months or more but less than 12 months 75 percent
12 months or more but less than 18 months 50 percent
18 months or more but less than 24 months 25 percent
The repayment must be paid to the state to the extent it
represents a tax reduction under subdivisions 1 to 8 and to the
municipality to the extent it represents a property tax
reduction or other local contribution. Any amount repaid to the
state must be credited to the amount certified as available for
tax reductions in the zone pursuant to section 170, subdivision
7. Any amount repaid to the municipality must be used by the
municipality for economic development purposes.
Sec. 173. [469.172] [DEVELOPMENT AND REDEVELOPMENT
POWERS.]
Notwithstanding any contrary provision of law or charter,
any city of the first or second class that contains an
enterprise zone or that has been designated as an enterprise
zone may, in addition to its other powers, exercise the powers
granted to a governmental subdivision by sections 1 to 47, 49 to
69, and 110 to 114. Section 60, subdivision 15, shall apply to
the city in the exercise of the powers granted pursuant to this
section. It may exercise the powers assigned to redevelopment
agencies pursuant to sections 153 to 166, without limitation to
further the purposes of sections 1 to 47, 49 to 69, and 110 to
135. It may exercise the powers set forth in sections 1 to 47,
49 to 69, and 110 to 165 without limitation to further the
purposes and policies set forth in sections 153 to 166. It may
exercise the powers granted by this subdivision and any other
development or redevelopment powers authorized by other laws,
including sections 125 to 135 and 153 to 166, independently or
in conjunction with each other as though all the powers had been
granted to a single entity. Any project undertaken to
accomplish the purposes of sections 1 to 47 that qualifies as
single-family housing under section 462C.02, subdivision 4,
shall be subject to the provisions of chapter 462C.
Upon expiration of the designation of the enterprise zone,
the powers granted by this subdivision may be exercised only
with respect to any project, program, or activity commenced or
established prior to that date. The powers granted by this
subdivision may only be exercised within the zone.
Sec. 174. [469.173] [ADMINISTRATION.]
Subdivision 1. [TECHNICAL ASSISTANCE.] The commissioner
shall provide technical assistance to small municipalities
seeking designation of an area as an enterprise zone. For
purposes of this subdivision, a small municipality means a
municipality with a population of 20,000 or less.
Subd. 2. [ADMINISTRATIVE PROCEDURE ACT.] The provisions of
chapter 14 shall not apply to designation of enterprise zones.
Subd. 3. [FEDERAL DESIGNATIONS.] The commissioner may
accept applications for and may at any time grant a contingent
designation of area as an enterprise zone for purposes of
seeking a designation of the area as a federally designated
zone. For purposes of the designations, the commissioner may
waive any of the requirements or limitations on designations
contained in this section. If the contingent designation would
require funding in excess of the amount available pursuant to
section 170, subdivision 7, the commissioner shall inform the
members of the legislative advisory commission and shall submit
a request for the necessary funding to the tax and
appropriations committees of the legislature.
Subd. 4. [REPORTING.] The commissioner shall require
municipalities receiving enterprise zone designations to report
to the state regarding the economic activity that has occurred
in the zone following the designation. This information shall
include the number of jobs created in the zone, the number of
economically disadvantaged individuals hired in the zone, the
average wage level of the jobs created, and descriptions of any
affirmative action programs undertaken by the municipality in
connection with the zone. The amount of the municipality's
local contribution and the number of businesses qualifying for
or directly benefiting from the local contribution must be
reported annually to the commissioner.
Subd. 5. [INFORMATION SHARING.] Notwithstanding the
provisions of sections 290.61 and 297A.43, the commissioner of
revenue may share information with the commissioner or with a
municipality receiving an enterprise zone designation, insofar
as necessary to administer the funding limitations provided by
section 170, subdivision 7.
Subd. 6. [ZONE BOUNDARY REALIGNMENT.] The commissioner may
approve specific applications by a municipality to amend the
boundaries of a zone or of an area or areas designated pursuant
to section 172, subdivision 5, at any time. Boundaries of a
zone may not be amended to create noncontiguous subdivisions.
If the commissioner approves the amended boundaries, the change
is effective on the date of approval. Notwithstanding the area
limitation under section 169, subdivision 3, the commissioner
may approve a specific application to amend the boundaries of an
enterprise zone which is located within five municipalities and
was designated in 1984, to increase its area to not more than
800 acres, and may approve an additional specific application to
amend the boundaries of that enterprise zone to include a sixth
municipality or to further increase its area to include all or
part of the territory of a town that surrounds one of the five
municipalities, or both.
Subd. 7. [REPEALER.] Sections 170, 172, 173, and this
section are repealed effective December 31, 1996.
TAX INCREMENT FINANCING
Sec. 175. [469.174] [DEFINITIONS.]
Subdivision 1. [GENERALLY.] In sections 175 to 180, the
terms defined in this section have the meanings given them
herein, unless the context indicates a different meaning.
Subd. 2. [AUTHORITY.] "Authority" means a rural
development financing authority created pursuant to sections 143
to 151, a housing and redevelopment authority created pursuant
to sections 1 to 47; a port authority created pursuant to
sections 49 to 69; an economic development authority created
pursuant to sections 91 to 109; a redevelopment agency as
defined in sections 153 to 166; a municipality that is
administering a development district created pursuant to
sections 125 to 135 or any special law, a municipality that
undertakes a project pursuant to sections 153 to 166; or a
municipality that exercises the powers of a port authority
pursuant to any general or special law.
Subd. 3. [BONDS.] "Bonds" means any bonds, including
refunding bonds, notes, interim certificates, debentures, or
other obligations issued by an authority under section 179 or
which were issued in aid of a project under any other law,
except revenue bonds issued pursuant to sections 153 to 166,
prior to August 1, 1979.
Subd. 4. [CAPTURED ASSESSED VALUE.] "Captured assessed
value" means the amount by which the current assessed value of a
tax increment financing district exceeds the original assessed
value, including the value of property normally taxable as
personal property by reason of its location on or over property
owned by a tax-exempt entity.
Subd. 5. [GOVERNING BODY.] "Governing body" means the
elected council or board of a municipality.
Subd. 6. [MUNICIPALITY.] "Municipality" means any city,
however organized, and with respect to a project undertaken
pursuant to sections 153 to 166, "municipality" has the meaning
given in sections 153 to 166, and with respect to a project
undertaken pursuant to sections 143 to 152, or a county or
multi-county project undertaken pursuant to sections 4 to 8,
"municipality" also includes any county.
Subd. 7. [ORIGINAL ASSESSED VALUE.] "Original assessed
value" means the assessed value of all taxable real property
within a tax increment financing district as most recently
certified by the commissioner of revenue as of the date of the
request by an authority for certification by the county auditor,
together with subsequent adjustments as set forth in section
178, subdivisions 1 and 4. In determining the original assessed
value the assessed value of real property exempt from taxation
at the time of the request shall be zero, except for real
property which is tax exempt by reason of public ownership by
the requesting authority and which has been publicly owned for
less than one year prior to the date of the request for
certification, in which event the assessed value of the property
shall be the assessed value as most recently determined by the
commissioner of revenue. For purposes of this subdivision,
"real property" shall include any property normally taxable as
personal property by reason of its location on or over
publicly-owned property.
Subd. 8. [PROJECT.] "Project" means a project as described
in section 143; an industrial development district as described
in section 59, subdivision 1; an economic development district
as described in section 102, subdivision 1; a project as defined
in section 2, subdivision 12; a development district as defined
in section 126, subdivision 8, or any special law; or a project
as defined in section 154, subdivision 2, paragraphs (a), (b),
or (c).
Subd. 9. [TAX INCREMENT FINANCING DISTRICT.] "Tax
increment financing district" or "district" means a contiguous
or noncontiguous geographic area within a project delineated in
the tax increment financing plan, as provided by section 176,
subdivision 1, for the purpose of financing redevelopment, mined
underground space development, housing or economic development
in municipalities through the use of tax increment generated
from the captured assessed value in the tax increment financing
district.
Subd. 10. [REDEVELOPMENT DISTRICT.] (a) "Redevelopment
district" means a type of tax increment financing district
consisting of a project, or portions of a project, within which
the authority finds by resolution that one of the following
conditions, reasonably distributed throughout the district,
exists:
(1) 70 percent of the parcels in the district are occupied
by buildings, streets, utilities or other improvements and more
than 50 percent of the buildings, not including outbuildings,
are structurally substandard to a degree requiring substantial
renovation or clearance; or
(2) 70 percent of the parcels in the district are occupied
by buildings, streets, utilities or other improvements and 20
percent of the buildings are structurally substandard and an
additional 30 percent of the buildings are found to require
substantial renovation or clearance in order to remove such
existing conditions as: inadequate street layout, incompatible
uses or land use relationships, overcrowding of buildings on the
land, excessive dwelling unit density, obsolete buildings not
suitable for improvement or conversion, or other identified
hazards to the health, safety and general well-being of the
community; or
(3) less than 70 percent of the parcels in the district are
occupied by buildings, streets, utilities or other improvements,
but due to unusual terrain or soil deficiencies requiring
substantial filling, grading or other physical preparation for
use at least 80 percent of the total acreage of such land has a
fair market value upon inclusion in the redevelopment district
which, when added to the estimated cost of preparing that land
for development, excluding costs directly related to roads as
defined in section 160.01 and local improvements as described in
section 429.021, subdivision 1, clauses 1 to 7, 11 and 12, and
430.01, if any, exceeds its anticipated fair market value after
completion of the preparation. No parcel shall be included
within a redevelopment district pursuant to this paragraph
unless the authority has concluded an agreement or agreements
for the development of at least 50 percent of the acreage having
the unusual soil or terrain deficiencies, which agreement
provides recourse for the authority should the development not
be completed; or
(4) the property consists of underutilized air rights
existing over a public street, highway or right-of-way; or
(5) the property consists of vacant, unused, underused,
inappropriately used or infrequently used railyards, rail
storage facilities or excessive or vacated railroad
rights-of-way; or
(6) the district consists of an existing or proposed
industrial park no greater in size than 250 acres, which
contains a sewage lagoon contaminated with polychlorinated
biphenyls.
(b) For purposes of this subdivision, "structurally
substandard" shall mean containing defects in structural
elements or a combination of deficiencies in essential utilities
and facilities, light and ventilation, fire protection including
adequate egress, layout and condition of interior partitions, or
similar factors, which defects or deficiencies are of sufficient
total significance to justify substantial renovation or
clearance.
Subd. 11. [HOUSING DISTRICT.] "Housing district" means a
type of tax increment financing district which consists of a
project, or a portion of a project, intended for occupancy, in
part, by persons or families of low and moderate income, as
defined in chapter 462A, Title II of the National Housing Act of
1934, the National Housing Act of 1959, the United States
Housing Act of 1937, as amended, Title V of the Housing Act of
1949, as amended, any other similar present or future federal,
state, or municipal legislation, or the regulations promulgated
under any of those acts.
Subd. 12. [ECONOMIC DEVELOPMENT DISTRICT.] "Economic
development district" means a type of tax increment financing
district which consists of any project, or portions of a
project, not meeting the requirements found in the definition of
redevelopment district, mined underground space development
district or housing district, but which the authority finds to
be in the public interest because:
(1) it will discourage commerce, industry or manufacturing
from moving their operations to another state; or
(2) it will result in increased employment in the
municipality; or
(3) it will result in preservation and enhancement of the
tax base of the municipality.
Subd. 13. [MINED UNDERGROUND SPACE DEVELOPMENT DISTRICT.]
"Mined underground space development district" means a type of
tax increment financing district consisting of a project, or
portions of a project, for the development or redevelopment of
mined underground space pursuant to sections 136 to 142.
Subd. 14. [ADMINISTRATIVE EXPENSES.] "Administrative
expenses" means all expenditures of an authority other than
amounts paid for the purchase of land or amounts paid to
contractors or others providing materials and services,
including architectural and engineering services, directly
connected with the physical development of the real property in
the district, relocation benefits paid to or services provided
for persons residing or businesses located in the district, or
amounts used to pay interest on, fund a reserve for, or sell at
a discount bonds issued pursuant to section 179.
"Administrative expenses" includes amounts paid for services
provided by bond counsel, fiscal consultants, and planning or
economic development consultants.
Subd. 15. [PARCEL.] "Parcel" means a tract or plat of land
established prior to the certification of the district as a
single unit for purposes of assessment.
Sec. 176. [469.175] [ESTABLISHING, MODIFYING TAX INCREMENT
FINANCING PLAN, ANNUAL ACCOUNTS.]
Subdivision 1. [TAX INCREMENT FINANCING PLAN.] A tax
increment financing plan shall contain:
(1) a statement of objectives of an authority for the
improvement of a project;
(2) a statement as to the development program for the
project, including the property within the project, if any, that
the authority intends to acquire;
(3) a list of any development activities that the plan
proposes to take place within the project, for which contracts
have been entered into at the time of the preparation of the
plan, including the names of the parties to the contract, the
activity governed by the contract, the cost stated in the
contract, and the expected date of completion of that activity;
(4) identification or description of the type of any other
specific development reasonably expected to take place within
the project, and the date when the development is likely to
occur;
(5) estimates of the following:
(i) cost of the project, including administration expenses;
(ii) amount of bonded indebtedness to be incurred;
(iii) sources of revenue to finance or otherwise pay public
costs;
(iv) the most recent assessed value of taxable real
property within the tax increment financing district;
(v) the estimated captured assessed value of the tax
increment financing district at completion; and
(vi) the duration of the tax increment financing district's
existence; and
(6) a statement of the authority's estimate of the impact
of tax increment financing on the assessed values of all taxing
jurisdictions in which the tax increment financing district is
located in whole or in part.
Subd. 2. [CONSULTATIONS; COMMENT AND FILING.] Before
formation of a tax increment financing district, the authority
shall provide an opportunity to the members of the county boards
of commissioners of any county in which any portion of the
proposed district is located and the members of the school board
of any school district in which any portion of the proposed
district is located to meet with the authority. The authority
shall present to the members of the county boards of
commissioners and the school boards its estimate of the fiscal
and economic implications of the proposed tax increment
financing district. The members of the county boards of
commissioners and the school boards may present their comments
at the public hearing on the tax increment financing plan
required by subdivision 3. The county auditor shall not certify
the original assessed value of a district pursuant to section
178, subdivision 1, until the county board of commissioners has
presented its written comment on the proposal to the authority,
or 30 days has passed from the date of the transmittal by the
authority to the board of the information regarding the fiscal
and economic implications, whichever occurs first. Upon
adoption of the tax increment financing plan, the authority
shall file a copy of the plan with the commissioner of energy
and economic development. The authority must also file with the
commissioner a copy of the development plan for the project area.
Subd. 3. [MUNICIPALITY APPROVAL.] A county auditor shall
not certify the original assessed value of a tax increment
financing district until the tax increment financing plan
proposed for that district has been approved by the municipality
in which the district is located. If an authority that proposes
to establish a tax increment financing district and the
municipality are not the same, the authority shall apply to the
municipality in which the district is proposed to be located and
shall obtain the approval of its tax increment financing plan by
the municipality before the authority may use tax increment
financing. The municipality shall approve the tax increment
financing plan only after a public hearing thereon after
published notice in a newspaper of general circulation in the
municipality at least once not less than ten days nor more than
30 days prior to the date of the hearing. This hearing may be
held before or after the approval or creation of the project or
it may be held in conjunction with a hearing to approve the
project. Before or at the time of approval of the tax increment
financing plan, the municipality shall make the following
findings, and shall set forth in writing the reasons and
supporting facts for each determination:
(1) that the proposed tax increment financing district is a
redevelopment district, a mined underground space development
district, a housing district or an economic development district.
(2) that the proposed development or redevelopment, in the
opinion of the municipality, would not reasonably be expected to
occur solely through private investment within the reasonably
foreseeable future and therefore the use of tax increment
financing is deemed necessary.
(3) that the tax increment financing plan conforms to the
general plan for the development or redevelopment of the
municipality as a whole.
(4) that the tax increment financing plan will afford
maximum opportunity, consistent with the sound needs of the
municipality as a whole, for the development or redevelopment of
the project by private enterprise.
(5) that the municipality elects the method of tax
increment computation set forth in section 178, subdivision 3,
clause (b), if applicable.
When the municipality and the authority are not the same,
the municipality shall approve or disapprove the tax increment
financing plan within 60 days of submission by the authority, or
the plan shall be deemed approved. When the municipality and
the authority are not the same, the municipality may not amend
or modify a tax increment financing plan except as proposed by
the authority pursuant to subdivision 4. Once approved, the
determination of the authority to undertake the project through
the use of tax increment financing and the resolution of the
governing body shall be conclusive of the findings therein and
of the public need for the financing.
Subd. 4. [MODIFICATION OF PLAN.] A tax increment financing
plan may be modified by an authority, provided that any
reduction or enlargement of geographic area of the project or
tax increment financing district, increase in amount of bonded
indebtedness to be incurred, including a determination to
capitalize interest on the debt if that determination was not a
part of the original plan, or to increase or decrease the amount
of interest on the debt to be capitalized, increase in the
portion of the captured assessed value to be retained by the
authority, increase in total estimated tax increment
expenditures or designation of additional property to be
acquired by the authority shall be approved upon the notice and
after the discussion, public hearing and findings required for
approval of the original plan; provided that if an authority
changes the type of district from housing, redevelopment or
economic development to another type of district, this change
shall not be considered a modification but shall require the
authority to follow the procedure set forth in sections 175 to
180 for adoption of a new plan, including certification of the
assessed valuation of the district by the county auditor.
The geographic area of a tax increment financing district
may be reduced, but shall not be enlarged after five years
following the date of certification of the original assessed
value by the county auditor or after August 1, 1984, for tax
increment financing districts authorized prior to August 1,
1979, except that development districts created pursuant to
Minnesota Statutes 1978, chapter 472A, prior to August 1, 1979
may be reduced but shall not be enlarged after five years
following the date of designation of the district.
Subd. 5. [ANNUAL DISCLOSURE.] For all tax increment
financing districts, whether created prior or subsequent to
August 1, 1979, on or before July 1 of each year, the authority
shall submit to the county board, the school board, the
commissioner of energy and economic development and, if the
authority is other than the municipality, the governing body of
the municipality a report of the status of the district. The
report shall include the following information: the amount and
the source of revenue in the account, the amount and purpose of
expenditures from the account, the amount of any pledge of
revenues, including principal and interest on any outstanding
bonded indebtedness, the original assessed value of the
district, the captured assessed value retained by the authority,
the captured assessed value shared with other taxing districts,
the tax increment received and any additional information
necessary to demonstrate compliance with any applicable tax
increment financing plan. An annual statement showing the tax
increment received and expended in that year, the original
assessed value, captured assessed value, amount of outstanding
bonded indebtedness and any additional information the authority
deems necessary shall be published in a newspaper of general
circulation in the municipality.
Subd. 6. [FINANCIAL REPORTING.] (a) The state auditor
shall develop a uniform system of accounting and financial
reporting for tax increment financing districts. The system of
accounting and financial reporting shall, as nearly as possible:
(1) provide for full disclosure of the sources and uses of
public funds in the district;
(2) permit comparison and reconciliation with the affected
local government's accounts and financial reports;
(3) permit auditing of the funds expended on behalf of a
district, including a single district that is part of a
multidistrict project or that is funded in part or whole through
the use of a development account funded with tax increments from
other districts or with other public money;
(4) be consistent with generally accepted accounting
principles.
(b) The authority must annually submit to the state
auditor, on or before July 1, a financial report in compliance
with paragraph (a). Copies of the report must also be provided
to the county and school district boards and to the governing
body of the municipality, if the authority is not the
municipality. To the extent necessary to permit compliance with
the requirement of financial reporting, the county and any other
appropriate local government unit or private entity must provide
the necessary records or information to the authority or the
state auditor as provided by the system of accounting and
financial reporting developed pursuant to paragraph (a).
(c) The annual financial report must also include the
following items:
(1) the original assessed value of the district;
(2) the captured assessed value of the district, including
the amount of any captured assessed value shared with other
taxing districts;
(3) the outstanding principal amount of bonds issued or
other loans incurred to finance project costs in the district;
(4) for the reporting period and for the duration of the
district, the amount budgeted under the tax increment financing
plan, and the actual amount expended for, at least, the
following categories:
(i) acquisition of land and buildings through condemnation
or purchase;
(ii) site improvements or preparation costs;
(iii) installation of public utilities or other public
improvements;
(iv) administrative costs, including the allocated cost of
the authority;
(5) for properties sold to developers, the total cost of
the property to the authority and the price paid by the
developer;
(6) the amount of tax exempt obligations, other than those
reported under clause (3), that were issued on behalf of private
entities for facilities located in the district.
(d) The reporting requirements imposed by this subdivision
are in lieu of the annual disclosure required by subdivision 5.
Sec. 177. [469.176] [LIMITATIONS.]
Subdivision 1. [DURATION OF TAX INCREMENT FINANCING
DISTRICTS.] (a) Subject to the limitations contained in
paragraphs (b) to (f), any tax increment financing district as
to which bonds are outstanding, payment for which the tax
increment and other revenues have been pledged, shall remain in
existence at least as long as the bonds continue to be
outstanding.
(b) The tax increment pledged to the payment of the bonds
and interest thereon may be discharged and the tax increment
financing district may be terminated if sufficient funds have
been irrevocably deposited in the debt service fund or other
escrow account held in trust for all outstanding bonds to
provide for the payment of the bonds at maturity or date of
redemption and interest thereon to the maturity or redemption
date.
(c) For bonds issued pursuant to section 179, subdivisions
2 and 3, the full faith and credit and any taxing powers of the
municipality or authority shall continue to be pledged to the
payment of the bonds until the principal of and interest on the
bonds has been paid in full.
(d) No tax increment shall be paid to an authority for a
tax increment financing district after three years from the date
of certification of the original assessed value of the taxable
real property in the district by the county auditor or after
August 1, 1982, for tax increment financing districts authorized
prior to August 1, 1979, unless within the three year period (1)
bonds have been issued pursuant to section 179, or in aid of a
project pursuant to any other law, except revenue bonds issued
pursuant to sections 153 to 166, prior to August 1, 1979, or (2)
the authority has acquired property within the district, or (3)
the authority has constructed or caused to be constructed public
improvements within the district.
(e) No tax increment shall in any event be paid to the
authority from a redevelopment district after 25 years from date
of receipt by the authority of the first tax increment, after 25
years from the date of the receipt for a housing district, after
25 years from the date of the receipt for a mined underground
space development district, and after eight years from the date
of the receipt, or ten years from approval of the tax increment
financing plan, whichever is less, for an economic development
district.
For tax increment financing districts created prior to
August 1, 1979, no tax increment shall be paid to the authority
after 30 years from August 1, 1979.
(f) Modification of a tax increment financing plan pursuant
to section 176, subdivision 4, shall not extend the durational
limitations of this subdivision.
Subd. 2. [EXCESS TAX INCREMENTS.] In any year in which the
tax increment exceeds the amount necessary to pay the costs
authorized by the tax increment financing plan, including the
amount necessary to cancel any tax levy as provided in section
475.61, subdivision 3, the authority shall use the excess amount
to do any of the following: (1) prepay any outstanding bonds,
(2) discharge the pledge of tax increment therefor, (3) pay into
an escrow account dedicated to the payment of such bond, or (4)
return the excess amount to the county auditor who shall
distribute the excess amount to the municipality, county and
school district in which the tax increment financing district is
located in direct proportion to their respective mill rates.
The county auditor must report to the commissioner of education
the amount of any excess tax increment distributed to a school
district within 30 days of the distribution.
Subd. 3. [LIMITATION ON ADMINISTRATIVE EXPENSES.] No tax
increment shall be used to pay any administrative expenses for a
project which exceed ten percent of the total tax increment
expenditures authorized by the tax increment financing plan or
the total tax increment expenditures for the project, whichever
is less.
Subd. 4. [LIMITATION ON USE OF TAX INCREMENT.] (a) 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: (1) to pay the
principal of and interest on bonds issued to finance a project;
(2) by a rural development financing authority for the purposes
stated in section 143, by a port authority or municipality
exercising the powers of a port authority to finance or
otherwise pay the cost of redevelopment pursuant to sections 49
to 69, by an economic development authority to finance or
otherwise pay the cost of redevelopment pursuant to sections 91
to 109, by a housing and redevelopment authority or economic
development authority to finance or otherwise pay public
redevelopment costs pursuant to sections 1 to 47, by a
municipality or economic development authority to finance or
otherwise pay the capital and administration costs of a
development district pursuant to sections 125 to 135, 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 chapter 462C, sections 153 to 166, or both, or to
accumulate and maintain a reserve securing the payment when due
of the principal of and interest on the bonds pursuant to
chapter 462C, sections 153 to 166, or both, 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. Revenue derived from tax increment from
a mined underground space development district may be used only
to pay for the costs of excavating and supporting the space, of
providing public access to the mined underground space including
roadways, and of installing utilities including fire sprinkler
systems in the space.
(b) Revenues derived from tax increment may be used to
finance the costs of an interest reduction program operated
pursuant to section 12, subdivisions 7 to 10, or pursuant to
other law granting interest reduction authority and power by
reference to those subdivisions only under the following
conditions: (1) 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, (2) tax
increments may not be used for an interest reduction program, if
the proceeds of bonds issued pursuant to section 179 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 (3) tax
increments may not be used to finance an interest reduction
program for owner-occupied single-family dwellings.
(c) 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.
Subd. 5. [REQUIREMENT FOR AGREEMENTS.] No more than 25
percent, by acreage, of the property to be acquired within a
project which contains a redevelopment district, or ten percent,
by acreage, of the property to be acquired within a project
which contains a housing or economic development district, as
set forth in the tax increment financing plan, shall at any time
be owned by an authority as a result of acquisition with the
proceeds of bonds issued pursuant to section 179 unless prior to
acquisition in excess of the percentages, the authority has
concluded an agreement for the development or redevelopment of
the property acquired and which provides recourse for the
authority should the development or redevelopment not be
completed.
Subd. 6. [ACTION REQUIRED.] If, after four years from the
date of certification of the original assessed value of the tax
increment financing district pursuant to section 178, no
demolition, rehabilitation or renovation of property or other
site preparation, including improvement of a street adjacent to
a parcel but not installation of utility service including sewer
or water systems, has been commenced on a parcel located within
a tax increment financing district by the authority or by the
owner of the parcel in accordance with the tax increment
financing plan, no additional tax increment may be taken from
that parcel, and the original assessed value of that parcel
shall be excluded from the original assessed value of the tax
increment financing district. If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or
renovation or other site preparation on that parcel including
improvement of a street adjacent to that parcel, in accordance
with the tax increment financing plan, the authority shall
certify to the county auditor that the activity has commenced,
and the county auditor shall certify the assessed value thereof
as most recently certified by the commissioner of revenue and
add it to the original assessed value of the tax increment
financing district.
Subd. 7. [SUBSEQUENT DISTRICTS.] Except as provided in
subdivision 6, for subsequent recertification of parcels
eliminated from a district because of lack of development
activity, no parcel that has been so eliminated subsequent to
two years from the date of the original certification may be
included in a tax increment district if, at any time during the
20 years prior to the date when certification of the district is
requested pursuant to section 178, subdivision 1, that parcel
had been included in an economic development district.
Sec. 178. [469.177] [COMPUTATION OF TAX INCREMENT.]
Subdivision 1. [ORIGINAL ASSESSED VALUE.] Upon or after
adoption of a tax increment financing plan, the auditor of any
county in which the district is situated shall, upon request of
the authority, certify the original assessed value of the tax
increment financing district as described in the tax increment
financing plan and shall certify in each year thereafter the
amount by which the original assessed value has increased or
decreased as a result of a change in tax exempt status of
property within the district, reduction or enlargement of the
district or changes pursuant to subdivision 4. In the case of a
mined underground space development district the county auditor
shall certify the original assessed value as zero, plus the
assessed value, if any, previously assigned to any subsurface
area included in the mined underground space development
district pursuant to section 272.04. The amount to be added to
the original assessed value of the district as a result of
previously tax exempt real property within the district becoming
taxable shall be equal to the assessed value of the real
property as most recently assessed pursuant to section 273.18
or, if that assessment was made more than one year prior to the
date of title transfer rendering the property taxable, the value
assessed by the assessor at the time of the transfer. The
amount to be added to the original assessed value of the
district as a result of enlargements thereof shall be equal to
the assessed value of the added real property as most recently
certified by the commissioner of revenue as of the date of
modification of the tax increment financing plan pursuant to
section 176, subdivision 4. Each year the auditor shall also
add to the original assessed value of each economic development
district an amount equal to the original assessed value for the
preceding year multiplied by the average percentage increase in
the assessed valuation of all property included in the economic
development district during the five years prior to
certification of the district. The amount to be subtracted from
the original assessed value of the district as a result of
previously taxable real property within the district becoming
tax exempt, or a reduction in the geographic area of the
district, shall be the amount of original assessed value
initially attributed to the property becoming tax exempt or
being removed from the district. If the assessed value of
property located within the tax increment financing district is
reduced by reason of a court-ordered abatement, stipulation
agreement, voluntary abatement made by the assessor or auditor
or by order of the commissioner of revenue, the reduction shall
be applied to the original assessed value of the district when
the property upon which the abatement is made has not been
improved since the date of certification of the district and to
the captured assessed value of the district in each year
thereafter when the abatement relates to improvements made after
the date of certification. The county auditor may specify
reasonable form and content of the request for certification of
the authority and any modification thereof pursuant to section
176, subdivision 4.
Subd. 2. [CAPTURED ASSESSED VALUE.] The county auditor
shall certify the amount of the captured assessed value to the
authority each year, together with the proportion that the
captured assessed value bears to the total assessed value of the
real property within the tax increment financing district for
that year.
(a) An authority may choose to retain any part or all of
the captured assessed value for purposes of tax increment
financing according to one of the following options:
(1) If the plan provides that all the captured assessed
value is necessary to finance or otherwise make permissible
expenditures under section 177, subdivision 4, the authority may
retain the full captured assessed value.
(2) If the plan provides that only a portion of the
captured assessed value is necessary to finance or otherwise
make permissible expenditures under section 177, subdivision 4,
only that portion shall be set aside and the remainder shall be
distributed among the affected taxing districts by the county
auditor.
(b) The portion of captured assessed value that an
authority intends to use for purposes of tax increment financing
must be clearly stated in the tax increment financing plan.
Subd. 3. [TAX INCREMENT, RELATIONSHIP TO CHAPTER 473F.]
(a) Unless the governing body elects pursuant to clause (b) the
following method of computation shall apply:
(1) The original assessed value and the current assessed
value shall be determined before the application of the fiscal
disparity provisions of chapter 473F. Where the original
assessed value is equal to or greater than the current assessed
value, there is no captured assessed value and no tax increment
determination. Where the original assessed value is less than
the current assessed value, the difference between the original
assessed value and the current assessed value is the captured
assessed value. This amount less any portion thereof which the
authority has designated, in its tax increment financing plan,
to share with the local taxing districts is the retained
captured assessed value of the authority.
(2) The county auditor shall exclude the retained captured
assessed value of the authority from the taxable value of the
local taxing districts in determining local taxing district mill
rates. The mill rates so determined are to be extended against
the retained captured assessed value of the authority as well as
the taxable value of the local taxing districts. The tax
generated by the extension of the local taxing district mill
rates to the retained captured assessed value of the authority
is the tax increment of the authority.
(b) The governing body may, by resolution approving the tax
increment financing plan pursuant to section 176, subdivision 3,
elect the following method of computation:
(1) The original assessed value shall be determined before
the application of the fiscal disparity provisions of chapter
473F. The current assessed value shall exclude any fiscal
disparity commercial-industrial assessed value increase between
the original year and the current year multiplied by the fiscal
disparity ratio determined pursuant to section 473F.08,
subdivision 6. Where the original assessed value is equal to or
greater than the current assessed value, there is no captured
assessed value and no tax increment determination. Where the
original assessed value is less than the current assessed value,
the difference between the original assessed value and the
current assessed value is the captured assessed value. This
amount less any portion thereof which the authority has
designated, in its tax increment financing plan, to share with
the local taxing districts is the retained captured assessed
value of the authority.
(2) The county auditor shall exclude the retained captured
assessed value of the authority from the taxable value of the
local taxing districts in determining local taxing district mill
rates. The mill rates so determined are to be extended against
the retained captured assessed value of the authority as well as
the taxable value of the local taxing districts. The tax
generated by the extension of the local taxing district mill
rates to the retained captured assessed value of the authority
is the tax increment of the authority.
(3) An election by the governing body pursuant to part (b)
shall be submitted to the county auditor by the authority at the
time of the request for certification pursuant to subdivision 1.
(c) The method of computation of tax increment applied to a
district pursuant to clause (a) or (b) shall remain the same for
the duration of the district.
Subd. 4. [PRIOR PLANNED IMPROVEMENTS.] The authority
shall, after diligent search, accompany its request for
certification to the county auditor pursuant to subdivision 1,
or its notice of district enlargement pursuant to section 176,
subdivision 4, with a listing of all properties within the tax
increment financing district or area of enlargement for which
building permits have been issued during the 18 months
immediately preceding approval of the tax increment financing
plan by the municipality pursuant to section 176, subdivision
3. The county auditor shall increase the original assessed
value of the district by the assessed valuation of the
improvements for which the building permit was issued, excluding
the assessed valuation of improvements for which a building
permit was issued during the three month period immediately
preceding said approval of the tax increment financing plan, as
certified by the assessor.
Subd. 5. [TAX INCREMENT ACCOUNT.] The tax increment
received with respect to any district shall be segregated by the
authority in a special account or accounts on its official books
and records or as otherwise established by resolution of the
authority to be held by a trustee or trustees for the benefit of
holders of the bonds.
Subd. 6. [REQUEST FOR CERTIFICATION OF NEW TAX INCREMENT
FINANCING DISTRICT.] A request for certification of a new tax
increment financing district pursuant to subdivision 1 or of a
modification to an existing tax increment financing district
pursuant to section 176, subdivision 4, received by the county
auditor on or before October 10 of the calendar year shall be
recognized by the county auditor in determining mill rates for
the current and subsequent levy years. Requests received by the
county auditor after October 10 of the calendar year shall not
be recognized by the county auditor in determining mill rates
for the current levy year but shall be recognized by the county
auditor in determining mill rates for subsequent levy years.
Subd. 7. [PROPERTY CLASSIFICATION CHANGES.] When any law
governing the classification of real property and determining
the percentage of market value to be assessed for ad valorem
taxation purposes is amended, the increase or decrease in
assessed valuation resulting therefrom shall be applied
proportionately to original assessed value and captured assessed
value of any tax increment financing district in each year
thereafter. This subdivision applies to tax increment districts
created pursuant to sections 175 to 179 or any prior tax
increment law.
Subd. 8. [ASSESSMENT AGREEMENTS.] An authority may, upon
entering into a development or redevelopment agreement pursuant
to section 177, subdivision 5, enter into a written assessment
agreement in recordable form with the developer or redeveloper
of property within the tax increment financing district which
establishes a minimum market value of the land and completed
improvements to be constructed thereon until a specified
termination date, which date shall be not later than the date
upon which tax increment will no longer be remitted to the
authority pursuant to section 177, subdivision 1. The
assessment agreement shall be presented to the county assessor,
or city assessor having the powers of the county assessor, of
the jurisdiction in which the tax increment financing district
is located. The assessor shall review the plans and
specifications for the improvements to be constructed, review
the market value previously assigned to the land upon which the
improvements are to be constructed and, so long as the minimum
market value contained in the assessment agreement appears, in
the judgment of the assessor, to be a reasonable estimate, shall
execute the following certification upon the agreement:
The undersigned assessor, being legally responsible
for the assessment of the above described property
upon completion of the improvements to be
constructed thereon, hereby certifies that the market
value assigned to the land and improvements upon
completion shall not be less than $........... .
Upon transfer of title of the land to be developed or
redeveloped from the authority to the developer or redeveloper,
the assessment agreement, together with a copy of this
subdivision, shall be filed for record and recorded in the
office of the county recorder or filed in the office of the
registrar of titles of the county where the real estate or any
part thereof is situated. Upon completion of the improvements
by the developer or redeveloper, the assessor shall value the
property pursuant to section 273.11, except that the market
value assigned thereto shall not be less than the minimum market
value contained in the assessment agreement. Nothing herein
shall limit the discretion of the assessor to assign a market
value to the property in excess of the minimum market value
contained in the assessment agreement nor prohibit the developer
or redeveloper from seeking, through the exercise of
administrative and legal remedies, a reduction in market value
for property tax purposes; provided, however, that the developer
or redeveloper shall not seek, nor shall the city assessor, the
county assessor, the county auditor, any board of review, any
board of equalization, the commissioner of revenue or any court
of this state grant a reduction of the market value below the
minimum market value contained in the assessment agreement
during the term of the agreement filed of record regardless of
actual market values which may result from incomplete
construction of improvements, destruction or diminution by any
cause, insured or uninsured, except in the case of acquisition
or reacquisition of the property by a public entity. Recording
or filing of an assessment agreement complying with the terms of
this subdivision shall constitute notice of the agreement to any
subsequent purchaser or encumbrancer of the land or any part
thereof, whether voluntary or involuntary, and shall be binding
upon them.
Sec. 179. [469.178] [TAX INCREMENT BONDING.]
Subdivision 1. [GENERALLY.] Notwithstanding any other law,
no bonds, payment for which tax increment is pledged, shall be
issued in connection with any project for which tax increment
financing has been undertaken except as authorized in this
section. The proceeds from the bonds shall be used only in
accordance with section 177, subdivision 4 as if the proceeds
were tax increment, except that a tax increment financing plan
need not be adopted for any project for which tax increment
financing has been undertaken prior to August 1, 1979, pursuant
to laws not requiring a tax increment financing plan. The bonds
are not included for purposes of computing the net debt of any
municipality.
Subd. 2. [MUNICIPALITY'S GENERAL OBLIGATION BONDS.] A
municipality may issue general obligation bonds to finance any
expenditure by the municipality or an authority the jurisdiction
of which is wholly or partially within that municipality,
pursuant to section 177, subdivision 4 in the same manner and
subject only to the same conditions as those provided in chapter
475 for bonds financing improvement costs reimbursable from
special assessments. Any pledge of tax increment, assessments
or other revenues for the payment of the principal of and
interest on general obligation bonds issued under this
subdivision, except when the authority and the municipality are
the same, shall be made by written agreement by and between the
authority and the municipality and filed with the county
auditor. When the authority and the municipality are the same,
the municipality may by covenant pledge tax increment,
assessments or other revenues for the payment of the principal
of and interest on general obligation bonds issued under this
subdivision and shall file the resolution containing the
covenant with the county auditor. When tax increment,
assessments and other revenues are pledged, the estimated
collections of the tax increment, assessments and other revenues
so pledged may be deducted from the taxes otherwise required to
be levied before the issuance of the bonds under section 475.61,
subdivision 1, or the collections thereof may be certified
annually to reduce or cancel the initial tax levies in
accordance with section 475.61, subdivision 1 or 3.
Subd. 3. [AUTHORITY'S GENERAL OBLIGATION BONDS.] When the
authority and the municipality are not the same, an authority
may, by resolution, authorize, issue and sell its general
obligation bonds to finance any expenditure which that authority
is authorized to make by section 177, subdivision 4. The bonds
of the authority shall be authorized by its resolution and shall
mature as determined by resolution of the authority in
accordance with sections 175 to 179. The bonds may be issued in
one or more series and shall bear the date or dates, bear
interest at the rate or rates, be in the denomination or
denominations, be in the form, either coupon or registered,
carry the conversion or registration privileges, have the rank
or priority, be executed in the manner, be payable in medium of
payment at the place or places, and be subject to the terms of
redemption, with or without premium, as the resolution, its
trust indenture or mortgage may provide. The bonds may be sold
at public or private sale at the price or prices the authority
by resolution shall determine. Notwithstanding any provision of
law to the contrary, the bonds shall be fully negotiable. In
any suit or proceedings involving the validity of enforceability
of any bonds of the authority or the security therefor, any bond
reciting in substance that it has been issued by the authority
to aid in financing a project shall be conclusively deemed to
have been issued for that purpose, and the tax increment
financing district within the project shall be conclusively
deemed to have been planned, located, and carried out in
accordance with the purposes and provisions of sections 175 to
179. Neither the authority, nor any director, commissioner,
council member, board member, officer, employee or agent of the
authority nor any person executing the bonds shall be liable
personally on the bonds by reason of the issuance thereof. The
bonds of the authority shall not be a debt of any municipality,
the state or any political subdivision thereof, and neither the
municipality nor the state or any political subdivision thereof
shall be liable thereon, nor shall the bonds be payable out of
any funds or properties other than those of the authority and
any tax increment and revenues of a tax increment financing
district pledged therefor; the bonds shall state this on their
face.
Subd. 4. [AUTHORITY'S REVENUE BONDS.] Notwithstanding any
other law, an authority may, by resolution, authorize, issue and
sell revenue bonds payable solely from all or a portion of
revenues, including tax increment revenues and assessments,
derived from a tax increment financing district located wholly
or partially within the municipality to finance any expenditure
that the authority is authorized to make by section 177,
subdivision 4. The bonds shall mature as determined by
resolution of the authority in accordance with sections 175 to
179 and may be issued in one or more series. The bonds shall
bear the date or dates, bear interest at the rate or rates, be
in the denomination or denominations, be in the form, either
coupon or registered, carry the conversion or registration
privileges, have the rank or priority, be executed in the
manner, be payable in medium of payment at the place or places,
and be subject to the terms of redemption, with or without
premium, as the resolution, its trust indenture or mortgage may
provide. The bonds may be sold at public or private sale at the
price or prices the authority by resolution determines, and any
provision of any law to the contrary notwithstanding, shall be
fully negotiable. In any suit or proceedings involving the
validity or enforceability of any bonds of the authority or the
security therefor, any bond reciting in substance that it has
been issued by the authority to aid in financing a project shall
be conclusively deemed to have been issued for that purpose, and
the tax increment financing district within the project shall be
conclusively deemed to have been planned, located, and carried
out in accordance with the purposes and provisions of sections
175 to 179. Neither the authority, nor any director,
commissioner, council member, board member, officer, employee or
agent of the authority nor any person executing the bonds shall
be liable personally on the bonds by reason of their issuance.
The bonds may be further secured by a pledge and mortgage of all
or any portion of the district in aid of which the bonds are
issued and by convenants the authority deems by resolution to be
necessary and proper to secure payment of the bonds. The bonds
shall not be payable from nor charged upon any funds other than
the revenues and property pledged or mortgaged to the payment
thereof, nor shall the issuing authority be subject to any
liability thereon or have the powers to obligate itself to pay
or pay the bonds from funds other than the revenues and
properties pledged and mortgaged, and no holder or holders of
the bonds shall ever have the right to compel any exercise of
any taxing power of the issuing authority or any other public
body, other than as is permitted or required under sections 175
to 179 and pledged hereunder, to pay the principal of or
interest on the bonds, nor to enforce payment thereof against
any property of the authority or other public body other than
that expressly pledged or mortgaged for the payment thereof; the
bonds shall state this on their face.
Subd. 5. [TEMPORARY BONDS.] (a) In anticipation of the
issuance of bonds pursuant to subdivision 2, 3, or 4, the
authority or municipality may by resolution issue and sell
temporary bonds pursuant to subdivision 2, 3, or 4, maturing
within three years from their date of issue, to pay any part or
all of the cost of a project. To the extent that the principal
of and interest on the temporary bonds cannot be paid when due
from receipts of tax increment, assessments, or other funds
appropriated for the purpose, they shall be paid from the
proceeds of long-term bonds or additional temporary bonds that
the authority or municipality offers for sale in advance of the
maturity date of the temporary bonds, but the indebtedness
funded by an issue of temporary bonds shall not be extended by
the issue of additional temporary bonds for more than six years
from the date of the first issue. Long-term bonds may be issued
pursuant to subdivision 2, 3, or 4 without regard to whether the
temporary bonds were issued pursuant to subdivision 2, 3, or 4.
If general obligation temporary bonds are issued pursuant to
subdivision 2, proceeds of long-term bonds or additional
temporary bonds not yet sold may be treated as pledged revenues,
in reduction of the tax otherwise required by section 475.61 to
be levied prior to delivery of the obligations. Subject to the
six-year maturity limitation contained above, but without regard
to the requirement of section 475.58, if any temporary bonds are
not paid in full at maturity, in addition to any other remedy
authorized or permitted by law, the holders may demand that the
authority or municipality issue pursuant to subdivision 2, 3, or
4 as the temporary bonds and in exchange for the temporary
bonds, at par, replacement temporary bonds dated as of the date
of the replaced temporary bonds, maturing within one year from
the date of the replacement temporary bonds and earning interest
at the rate set forth in the resolution authorizing the issuance
of the replaced temporary bonds, provided that the rate shall
not exceed the maximum rate permitted by law at the date of
issue of the replaced temporary bonds. The authority or
municipality shall do so upon demand.
(b) Funds of a municipality may be invested in its
temporary bonds in accordance with the provisions of section
471.56, and may be purchased upon their initial issue, but shall
be purchased only from funds which the governing body of the
municipality determines will not be required for other purposes
before the maturity date, and shall be resold before maturity
only in case of emergency. If purchased from a debt service
fund securing other bonds, the holders of those bonds may
enforce the municipality's obligations on the temporary bonds in
the same manner as if they held the temporary bonds.
Subd. 6. [FEDERAL VOLUME LIMITATIONS.] Sections 474A.01 to
474A.21 apply to any issuance of obligations under this section
that are subject to limitation under a federal volume limitation
act as defined in section 474A.02, subdivision 9, or existing
federal tax law as defined in section 474A.02, subdivision 8.
Sec. 180. [469.179] [EXISTING PROJECTS.]
The provisions of sections 175 to 179 shall not affect any
project for which tax increment certification was requested
pursuant to law prior to August 1, 1979, or any project carried
on by an authority pursuant to section 33, subdivision 5 with
respect to which the governing body has by resolution designated
properties for inclusion in the district prior to August 1,
1979, except:
(1) as otherwise expressly provided in sections 175 to 179;
or
(2) as an authority elects to proceed with an existing
district, under the provisions of sections 175 to 179; or
(3) that any enlargements of the geographic area of an
existing tax increment financing district subsequent to August
1, 1979, shall be accomplished in accordance with and shall
subject the property added as a result of the enlargement to the
terms and conditions of sections 175 to 179; or
(4) that beginning with taxes payable in 1980, section 178,
subdivision 3, clause (b), shall apply to all development
districts created pursuant to Minnesota Statutes 1978, chapter
472A, or any special law, prior to August 1, 1979.
MISCELLANEOUS ECONOMIC DEVELOPMENT POWERS
Sec. 181. [469.180] [ECONOMIC DEVELOPMENT AGREEMENTS WITH
SUBDIVISIONS AND CORPORATIONS OF OTHER STATES.]
Subdivision 1. [AGREEMENTS AUTHORIZED.] A county or two or
more adjacent counties may make an agreement with contiguous
political subdivisions of an adjacent state, with nonprofit
corporations, or both, to improve the economic development of
the area.
Subd. 2. [TAX LEVIES.] Notwithstanding any law, the county
board of any county may appropriate from the general revenue
fund a sum not to exceed 1/30 of a mill on the taxable valuation
of the county to carry out the purposes of this section.
Sec. 182. [469.181] [DEFERRED PROPERTY TAXATION FOR
PRIVATE REDEVELOPMENT.]
Subdivision 1. [APPLICATION.] A developer proposing to
construct improvements on property located within an industrial
development district as defined in section 59, subdivision 1; an
economic development district as defined in section 102,
subdivision 1; a development district as defined in section 126,
subdivision 8, or any special law; or a redevelopment project as
defined in section 2, subdivision 12 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 year.
Subd. 2. [TAX TREATMENT.] Property approved for the tax
deferral provided in this section shall be exempt from taxation
during the time while the improvements proposed in the plan are
under construction. The exemption shall be in effect for the
number of taxable years approved by the governing body at the
time of approval of the application. The period of deferral
shall not exceed the length of the construction period projected
in the plan. For taxes payable in the first year following the
levy year during which 50 percent of the area of the building
becomes occupied, the tax due on the property shall be the sum
of:
(1) the amount of tax paid on the property in the year in
which the developer applied for the deferral, multiplied by the
number of years during which the property was exempt from
taxation pursuant to this section; plus
(2) the amount of taxes which would ordinarily be due in
the first year following the levy year during which 50 percent
of the area of the building becomes occupied; plus
(3) at the option of the governing body, the amount of
increased taxes that would have been due and payable each year
during the period of deferral.
If the improvements that had been present on the property
were demolished prior to the year of the application, the
governing body may require that the deferred tax be computed
based on the amount of tax due on the property for the last
taxable year preceding the demolition of the improvement. For
all subsequent taxable years, the property shall be assessed as
provided in section 273.11.
Subd. 3. [TRANSFERABILITY.] When ownership of property
that has been approved for the tax deferral provided in this
section is transferred from the original applicant, the
governing body may elect to continue to defer the tax on the
property if the subsequent owner agrees to redevelop the
property according to either (1) the original redevelopment plan
approved under subdivision 1 or (2) a plan proposed by the
subsequent owner and approved by the governing body.
Subd. 4. [EXCEPTIONS.] The provisions of this section do
not apply to any property purchased from an authority that
acquired the property with tax increment or bonds issued
pursuant to section 179.
Sec. 183. [469.182] [EMPLOYMENT BUREAUS; FIRST CLASS
CITIES.]
Any city of the first class may establish and conduct an
employment bureau, and provide for its regulation and
maintenance by the city.
Sec. 184. [469.183] [BONDS FOR MUNICIPAL MARKET; FIRST
CLASS CITIES.]
Subdivision 1. [ISSUANCE.] The governing body of any city
of the first class that owns, maintains, and operates its own
municipal market may issue negotiable bonds in an amount in the
aggregate not exceeding $200,000. These bonds shall be in the
denominations and payable at the places and at the times, not
exceeding 30 years from the date of issuance, as deemed best by
the governing body of the city. The bonds shall be in serial
form and bear interest at a rate not to exceed six percent per
annum, payable semiannually, at the place designated therein.
The governing body may negotiate and sell the bonds from time to
time to the highest bidder or bidders, and upon the best terms
that can be obtained, provided that no such bonds shall be sold
for less than the par value thereof and accrued interest thereon.
Subd. 2. [LIMITATIONS NOT TO APPLY.] The bonds authorized
by subdivision 1, or any portion thereof, may be issued and sold
by any such city notwithstanding any limitation contained in the
charter of the city or in any law prescribing or fixing any
limit upon the bonded indebtedness of the city. The governing
body of a city issuing these bonds shall set aside annually from
the revenues of the operation of projects for which the bond
issue is authorized, a sufficient amount to pay the interest on
the bonds and the principal of any such bonds maturing in any
year. In the event that revenue is insufficient for this
purpose, the governing body of the city shall include in the tax
levy a sufficient amount for the payment of the interest as it
accrues and for the accumulation of a sinking fund for the
redemption of the bonds at their maturity.
Subd. 3. [USE OF PROCEEDS.] The proceeds of any bonds
issued or sold under the authority of this section shall be used
for the purchase or condemnation of a site or sites for the
expansion, improvement and equipment of the municipal market,
owned, maintained, and operated by the city; provided, that no
bonds in excess of $200,000 shall be issued for those purposes.
Subd. 4. [ADDITIONAL POWERS.] The authority granted in
this section is in addition to all existing power and authority
of any city operating under a home rule charter adopted in
pursuance of the Constitution of the state of Minnesota, article
IV, section 36.
Sec. 185. [469.184] [PROGRAMS FOR MUNICIPAL COMMERCIAL
REHABILITATION LOANS.]
Subdivision 1. [PURPOSE.] The legislature finds that in
many cities within the state there are small and medium sized
commercial buildings which are physically deteriorating and in
need of rehabilitation; that there is a need for city programs
for the rehabilitation of these commercial buildings; that some
owners of small and medium sized commercial buildings are unable
to afford rehabilitation loans in the private mortgage market
and that the health, safety and general welfare and the
preservation of the quality of life of the residents of
Minnesota cities are dependent upon the preservation and
rehabilitation of these commercial buildings.
Subd. 2. [FINDINGS REQUIRED.] To accomplish the purposes
specified in subdivision 1, the governing body of any home rule
charter or statutory city may, by ordinance, establish and
provide for the administration of a commercial building loan
program to rehabilitate and preserve small and medium sized
commercial buildings located within its boundaries, upon making
the following findings:
(1) that commercial buildings in the city are physically
deteriorating, underused, economically inefficient or
functionally obsolete, and in need of rehabilitation to meet
applicable building codes;
(2) that there is a need for a comprehensive program for
the rehabilitation of the buildings to prevent economic and
physical blight and deterioration, to increase the municipal tax
base, and, if the city has adopted a comprehensive plan, to
assist in the implementation of the comprehensive plan of the
municipality;
(3) that some owners of small and medium sized commercial
buildings in the city are unable to afford rehabilitation loans
on terms available in the private mortgage market or to obtain
rehabilitation loans on any terms because the private mortgage
market is severely restricted; and
(4) that the health, safety and general welfare and the
preservation of the quality of life of the residents of the city
are dependent upon the preservation and rehabilitation of the
small and medium sized commercial buildings.
Subd. 3. [PROGRAM.] The program may include provisions for
loans for rehabilitation and preservation purposes, secured by
mortgages on the property with respect to which the loans are
made, or by other security acceptable to the governing body of
the city. Except as hereinafter provided, the loans may be made
on terms and conditions as authorized in the program. In
approving applications for loans from a program, the following
factors shall be considered:
(1) the availability and affordability of private mortgage
credit;
(2) the availability and affordability of other
governmental programs;
(3) whether the building is required, pursuant to any court
order, statute or ordinance, to be repaired, improved or
rehabilitated; and
(4) whether the proposed improvements will result in
conformance with building and zoning codes and improvement of
the aesthetic quality of existing commercial areas.
Subd. 4. [LIMITATIONS.] A loan program shall be operated
within the following limitations:
(1) the terms and conditions of all loans made under the
program shall be fixed so that the sum of all repayments of
principal and interest on them, not then delinquent, and all
fees and charges collected, together with other sums to be
contributed by the city, shall, over the duration of the
program, be estimated to be equal to or greater than the sum of
all estimated costs of the program, as determined by the program
administrator and approved by the governing body of the city,
including administrative costs, mortgage foreclosure costs, and
principal and interest payments on bonds issued to finance the
program to the extent not paid from bond proceeds;
(2) no loan shall be made for a period exceeding 20 years;
(3) no loan shall exceed 80 percent of the estimated market
value of the property to be rehabilitated upon completion of the
rehabilitation, less the principal balance of any prior mortgage
existing on the property at the time the loan is made; and
(4) no loan shall be made in excess of $200,000 for the
rehabilitation of any particular small or medium sized
commercial building.
Subd. 5. [GRANT PROHIBITION.] A program authorized by this
section does not include the making of grants.
Subd. 6. [ADMINISTRATION.] The municipality may administer
the program directly or may contract with any qualified public
or private nonprofit agency or enterprise for some or all of the
services required. The ordinance establishing the program shall
provide for the adoption of program regulations which shall
include a definition of "small and medium sized commercial
buildings", loan eligibility and loan priority criteria, loan
amount limitations and other provisions as deemed necessary.
Subd. 7. [HOUSING AND REDEVELOPMENT AUTHORITY AS AGENT.] A
housing and redevelopment authority of a city or county may
exercise any or all of the powers conferred by this section on
behalf of a city, if the city by ordinance authorizes it.
Subd. 8. [REVENUE BONDS.] Notwithstanding any contrary
provision of other law or charter, the governing body of any
city operating a program under this section may, by resolution,
authorize, issue and sell revenue bonds or obligations payable
solely from all or a portion of the revenues derived from or
other contributions to the program. The bonds or obligations
shall mature as determined by resolution of the governing body
of the city in accordance with the limitations of subdivision 4.
The bonds or obligations may be issued in one or more
series, bear a date or dates, bear interest at a rate or rates,
be in the denomination or denominations, be either coupon or
registered, carry conversion or registration privileges, have
rank or priority, be executed in the manner, be payable at the
place or places, and be subject to the terms of redemption, with
or without premium, as the resolution, its trust indenture or
mortgage may provide. The bonds or obligations may be sold at
public or private sale at the price or prices the governing body
of the city by resolution determines, and notwithstanding any
contrary provision of law, shall be fully negotiable. In any
suit, action, or proceedings involving the validity or
enforceability of any bonds or obligations of the city or their
security, any bond reciting in substance that it has been issued
by the city to aid in financing a commercial rehabilitation loan
program shall be conclusively deemed to have been issued for
that purpose, and the program shall be conclusively deemed to
have been authorized, established and carried out in accordance
with the purposes and provisions of this section. Neither the
city nor any council member, board member, director,
commissioner, officer, employee or agent of the governing body
of the city nor any person executing the bonds shall be liable
personally on the bonds by reason of their issuance. The bonds
or obligations may be further secured by a pledge or mortgage on
the property with respect to which loans are made and in aid of
which the bonds are issued and by covenants as the governing
body of the city shall deem by resolution to be necessary and
proper to secure payment of the bonds. The bonds or
obligations, and they shall so state on their face, shall not be
payable from nor charged upon any funds other than the revenues
and properties pledged or mortgaged to their payment, nor shall
the issuing city be subject to any liability on them or have the
powers to obligate itself to pay or pay the bonds from funds
other than the revenues and properties pledged and mortgaged and
no holder of the bonds or obligations shall ever have the right
to compel any exercise of any taxing power of the issuing city
or any other public body to pay the principal of or interest on
the bonds or obligations, nor to enforce payment of them against
any property of the city or other public body other than that
expressly pledged or mortgaged for their payment.
Subd. 9. [USE OF BOND PROCEEDS.] The proceeds of the
revenue bonds or obligations may be used
(1) to make loans in accordance with a program,
(2) to establish a fund from which loans may be made in
accordance with a program,
(3) to establish reserves for the payment of the bonds and
interest on them,
(4) to pay all of the interest coming due on the bonds
until the money derived from loan repayments is sufficient for
the purpose, and
(5) to pay costs of issuance.
Subd. 10. [SECURITY FOR BONDS.] The city may pledge any
mortgages securing loans made under the program and all
principal and interest payments to be received under them to the
payment of revenue bonds or obligations issued under this
section, may make other covenants with respect to them, future
mortgages or other matters as deemed necessary for the security
of the revenue bonds or obligations, and may assign all of its
rights under the mortgages to a trustee for bond holders and
enter into an indenture of trust for this purpose, containing
other terms and provisions and conferring powers on the trustee
as considered necessary for the security of the bonds or
obligations.
Subd. 11. [ADDITIONAL SECURITY FOR BONDS.] The governing
body of the city shall not amend the regulations adopted by
ordinance and in effect at the time any bonds or obligations
authorized by this section are issued, to the detriment of the
holder of the bonds or obligations.
Sec. 186. [469.185] [CONVEYANCE OF LANDS TO PROMOTE
INDUSTRY AND EMPLOYMENT.]
Any municipality owning lands in fee simple and not
restricted by the grant, may convey the lands for a nominal
consideration to encourage and promote industry and provide
employment for citizens.
Sec. 187. [469.186] [BUREAU OF INFORMATION AND PUBLICITY;
STATUTORY CITIES.]
The council of any statutory city may establish and
maintain a bureau of information and publicity for the purpose
of furnishing tourists information and for outdoor advertising
and for preparing, publishing, and circulating information and
facts concerning the recreational facilities and business and
industrial conditions of the community.
Sec. 188. [469.187] [EXPENDITURE FOR PUBLICITY; PUBLICITY
BOARD; FIRST CLASS CITIES.]
Any city of the first class may expend money for city
publicity purposes. The city may levy a tax, at a rate not
exceeding one-thirtieth of one mill upon the assessed valuation
of the taxable property of the city. The proceeds of the levy
shall be expended in the manner and for the city publicity
purposes the council directs. The council may establish and
provide for a publicity board or bureau to administer the fund,
subject to the conditions and limitations the council prescribes
by ordinance.
Sec. 189. [469.188] [TAX FOR ADVERTISING RESOURCES; CITIES
OF SECOND OR THIRD CLASS.]
The governing body of any city of the second or third class
in this state may levy a tax of not to exceed one-third of one
mill against the taxable property in the city for the purpose of
advertising agricultural, industrial business, and all other
resources of the community subject to the city's levy limits.
Sec. 190. [469.189] [ APPROPRIATION FOR ADVERTISING
PURPOSES; STATUTORY AND FOURTH CLASS CITIES.]
The governing body of any statutory city or home rule
charter city of the fourth class may annually appropriate money
to advertise the municipality and its resources and advantages.
The money appropriated shall be used only to advertise the
municipality or for cooperative programs of promotion for the
area by more than one municipality and its resources and
advantages.
Sec. 191. [469.190] [LOCAL LODGING TAX.]
Subdivision 1. [AUTHORIZATION.] Notwithstanding section
477A.016 or any other law, a statutory or home rule charter city
may by ordinance, and a town may by vote at its annual meeting,
impose a tax of up to three percent on the gross receipts from
the furnishing for consideration of lodging at a hotel, motel,
rooming house, tourist court, or resort, other than the renting
or leasing of it for a continuous period of 30 days or more. A
statutory or home rule charter city may by ordinance impose the
tax authorized under this subdivision on the camping site
receipts of a municipal campground.
Subd. 2. [EXISTING TAXES.] No statutory or home rule
charter city or town may impose a tax under this section upon
transient lodging that, when combined with any tax authorized by
special law or enacted prior to 1972, exceeds a rate of three
percent.
Subd. 3. [DISPOSITION OF PROCEEDS.] Ninety-five percent of
the gross proceeds from any tax imposed under subdivision 1
shall be used by the statutory or home rule charter city or town
to fund a local convention or tourism bureau for the purpose of
marketing and promoting the city or town as a tourist or
convention center. This subdivision shall not apply to any
statutory or home rule charter city or town that has a lodging
tax authorized by special law or enacted prior to 1972 at the
time of enactment of this section.
Subd. 4. [UNORGANIZED TERRITORIES.] A county board acting
as a town board with respect to an unorganized territory may
impose a lodging tax within the unorganized territory according
to this section if it determines by resolution that imposition
of the tax is in the public interest.
Subd. 5. [REVERSE REFERENDUM.] If the county board passes
a resolution under subdivision 4 to impose the tax, the
resolution must be published for two successive weeks in a
newspaper of general circulation within the unorganized
territory, together with a notice fixing a date for a public
hearing on the proposed tax.
The hearing must be held not less than two weeks nor more
than four weeks after the first publication of the notice.
After the public hearing, the county board may determine to take
no further action, or may adopt a resolution authorizing the tax
as originally proposed or approving a lesser rate of tax. The
resolution must be published in a newspaper of general
circulation within the unorganized territory. The voters of the
unorganized territory may request a referendum on the proposed
tax by filing a petition with the county auditor within 30 days
after the resolution is published. The petition must be signed
by voters who reside in the unorganized territory. The number
of signatures must equal at least five percent of the number of
persons voting in the unorganized territory in the last general
election. If such a petition is timely filed, the resolution is
not effective until it has been submitted to the voters residing
in the unorganized territory at a general or special election
and a majority of votes cast on the question of approving the
resolution are in the affirmative. The commissioner of revenue
shall prepare a suggested form of question to be presented at
the referendum.
Subd. 6. [JOINT POWERS AGREEMENTS.] Any statutory or home
rule charter city, town, or county when the county board is
acting as a town board with respect to an unorganized territory,
may enter into a joint exercise of powers agreement pursuant to
section 471.59 for the purpose of imposing the tax and disposing
of its proceeds pursuant to this section.
Subd. 7. [COLLECTION.] The statutory or home rule charter
city may agree with the commissioner of revenue that a tax
imposed pursuant to this section shall be collected by the
commissioner together with the tax imposed by chapter 297A, and
subject to the same interest, penalties and other rules and that
its proceeds, less the cost of collection, shall be remitted to
the city.
Sec. 192. Minnesota Statutes 1986, section 16B.61,
subdivision 3, is amended to read:
Subd. 3. [SPECIAL REQUIREMENTS.] (a) [SPACE FOR COMMUTER
VANS.] The code must require that any parking ramp or other
parking facility constructed in accordance with the code include
an appropriate number of spaces suitable for the parking of
motor vehicles having a capacity of seven to 16 persons and
which are principally used to provide prearranged commuter
transportation of employees to or from their place of employment
or to or from a transit stop authorized by a local transit
authority.
(b) [SMOKE DETECTION DEVICES.] The code must require that
all dwellings, lodging houses, apartment houses, and hotels as
defined in section 299F.362 comply with the provisions of
section 299F.362.
(c) [DOORS IN NURSING HOMES AND HOSPITALS.] The state
building code may not require that each door entering a sleeping
or patient's room from a corridor in a nursing home or hospital
with an approved complete standard automatic fire extinguishing
system be constructed or maintained as self-closing or
automatically closing.
(d) A licensed day care center serving fewer than 30
preschool age persons and which is located in a below ground
space in a church building is exempt from the state building
code requirement for a ground level exit when the center has
more than two stairways to the ground level and its exit.
(e) [MINED UNDERGROUND SPACE.] Nothing in the state
building codes shall prevent cities from adopting rules
governing the excavation, construction, reconstruction,
alteration and repair of mined underground space pursuant to
sections 472B.03 136 to 472B.07 142, or of associated facilities
in the space once the space has been created, provided the
intent of the building code to establish reasonable safeguards
for health, safety, welfare, comfort, and security is maintained.
(f) No provision of the code or any appendix chapter of the
code may require stairways of existing multiple dwelling
buildings of two stories or less to be enclosed.
Sec. 193. Minnesota Statutes 1986, section 41A.05,
subdivision 2, is amended to read:
Subd. 2. [ISSUANCE OF BONDS.] (a) Subject to section
16A.80, upon application pursuant to section 41A.04, the board
by resolution may exercise the powers of a rural development
authority under sections 362A.01 143 to 362A.05 152 and the
powers of a municipality under chapter 474 sections 153 to 166
for the purposes of providing money to pay the costs of a
project, including the issuance of bonds and the loan of the
bond proceeds pursuant to a lease or other agreement. The bonds
must be issued, sold, and secured on the terms and conditions
and in the manner determined by resolution of the
board. Sections Section 16A.80 and 474.23 do does not apply to
the bonds. Notwithstanding subdivision 1, a reserve established
for the bonds provided by the borrower, including out of bond
proceeds, may be deposited and held in a separate account in the
guaranty fund and applied to the last installments of principal
or interest on the bonds, subject to the reserves being
withdrawn for any purpose permitted by subdivision 1. The board
may by resolution or indenture pledge any or all amounts in the
guaranty fund, including any reserves and investment income on
amounts in the fund, to secure the payment of principal and
interest on any or all series of bonds, upon the terms and
conditions as provided in the resolution or indenture. To the
extent the board deems necessary or desirable to prevent
interest on bonds from becoming subject to federal income
taxation, (1) the amounts in the guaranty fund shall be invested
in obligations or securities with restricted yields and (2) the
investment income on the amounts are released from the pledge
securing the bonds or loan guaranty and appropriately applied to
prevent taxation.
(b) Bonds issued pursuant to this chapter are not general
obligations of the state or the board. The full faith and
credit and taxing powers of the state and the board are not and
may not be pledged for the payment of the bonds. No person may
compel the levy of a tax for the payment or compel the
appropriation of money of the state or the board for the payment
of the bonds, except as specifically provided in this chapter.
(c) The issuance of bonds pursuant to this subdivision is
subject to sections 474.18 to 474.25 474A.11 and 474A.13. For
purposes of sections 474.16 to 474.20 474A.01 to 474A.21, the
board is a local issuer and may apply for allocations of
authority to issue private activity obligations and may enter
into an agreement for the issuance of obligations by another
issuer.
Sec. 194. Minnesota Statutes 1986, section 41A.06,
subdivision 5, is amended to read:
Subd. 5. [PROPERTY TAX INCREMENTS.] If tax increment
financing is to be used for the project, the applicant for a
loan guaranty or bonds for any project, and the county in which
the project is situated, shall do all acts and things necessary
for the computation and segregation of property tax increments
resulting from the construction of the project in accordance
with the provisions of section 362A.05 150, and for the
remittance to the commissioner of finance, for deposit in the
loan guaranty fund, of all tax increments received from and
after the date of the conditional commitment for the loan
guaranty. If the project account contains an amount equal to
the average annual payment of principal and interest on the
bonds or for the guaranteed portion of a guaranteed loan, the
board must annually return the excess tax increment to be
distributed as provided by section 273.75 177, subdivision 2,
clause (d) (4), until the increment has been discharged under
the agreement or section 362A.05 150.
Sec. 195. Minnesota Statutes 1986, section 115A.69,
subdivision 9, is amended to read:
Subd. 9. [DISPOSITION OF PROPERTY.] The district may sell
or otherwise dispose of any real or personal property acquired
by it which is no longer required for accomplishment of its
purposes. The property shall be sold in the manner provided by
section 458.196 66, insofar as practical. The district shall
give notice of sale which it deems appropriate. When the
district determines that any property which has been acquired
from a government unit without compensation is no longer
required, the district shall transfer it to the government unit.
Sec. 196. Minnesota Statutes 1986, section 116J.27,
subdivision 4, is amended to read:
Subd. 4. [INSPECTIONS.] The commissioner shall conduct
inspections on a random basis for compliance with the provisions
of subdivision 3. The commissioner may authorize a
municipality, with its consent, to conduct the inspections
within the municipality's jurisdiction, or to otherwise enforce
the provisions of subdivision 3. Any municipality which
conducts an inspections or other enforcement program shall have
authority under all subdivisions of section 116J.30 to enforce
the provisions of subdivision 3; provided that 100 percent of
the penalties for violation of subdivision 3 shall be paid to
the municipality. With respect to low-rent housing owned by a
public housing authority or a housing and redevelopment
authority described in chapter 462 sections 1 to 47, the
commissioner or the municipality which conducts the inspection
shall submit the results of the inspection to the housing and
redevelopment authority or the public housing authority for
review. If the housing and redevelopment authority or the
public housing authority does not concur in the findings of the
commissioner or the municipality, then the housing and
redevelopment authority or the public housing authority and the
commissioner or the municipality shall select a mutually
acceptable independent third party or panel of experts
knowledgeable in the area of energy conservation. The results
of the inspection, the conclusions of the commissioner or the
municipality as to compliance with the standards established
pursuant to subdivision 1, and the basis for such conclusions,
and the position of the housing and redevelopment authority or
the public housing authority and the basis for such position
shall be submitted to the independent third party or panel for a
determination of the specific energy conservation measures which
must be completed for compliance with the standards established
pursuant to subdivision 1. The costs of the independent third
party or panel shall be paid equally by the housing and
redevelopment authority or the public housing authority and the
commissioner or the municipality.
Sec. 197. Minnesota Statutes 1986, section 116M.03,
subdivision 11, is amended to read:
Subd. 11. [BUSINESS LOAN.] "Business loan" means a loan,
other than a pollution control loan, energy loan, or farm loan,
to a business for the financing of capital expenditures, on an
interim or long-term basis, for the acquisition or improvement
of land, acquisition, construction, rehabilitation, removal, or
improvement of buildings, or acquisition and installation of
fixtures and equipment useful for the conduct of the business,
including all facilities of a capital nature useful or suitable
for any business engaged in any enterprise promoting employment
(or any of the other purposes listed below), including, without
limitation, those facilities included within the meaning of the
term "project" as defined in section 474.02 154, subdivisions 1
to 1f subdivision 2, paragraphs (a) to (g) and section 474.03
156, subdivision 4.
Sec. 198. Minnesota Statutes 1986, section 116M.03,
subdivision 19, is amended to read:
Subd. 19. [SMALL BUSINESS LOAN.] "Small business loan"
means a loan to a business that is an "eligible small business"
or a "targeted small business" for the financing of (a) capital
expenditures on an interim or long-term basis for the
acquisition or improvement of land, acquisition, construction,
rehabilitation, removal, or improvement of buildings, or the
acquisition and installation of fixtures and equipment useful to
conduct a small business, including all facilities of a capital
nature useful or suitable for any business engaged in any
enterprise promoting employment including, without limitation,
those facilities included within the meaning of the term
"project" as defined in section 474.02, subdivisions 1 to 1f
154, subdivision 2, paragraphs (a) to (g) and section 474.03
156, subdivision 4; or (b) short-term costs of conducting a
small business.
With respect to financing the capital expenditure or
facility or short-term costs, if the authority determines that
the expenditure, facility, or costs will accomplish one or more
of the following purposes: tend to maintain or provide gainful
employment opportunities within or for the people of Minnesota;
aid, assist, and encourage the economic development or
redevelopment of any political subdivision of Minnesota; or
maintain or diversify and expand employment promoting enterprise
within Minnesota.
Sec. 199. Minnesota Statutes 1986, section 116M.03,
subdivision 28, is amended to read:
Subd. 28. [QUALIFIED DIVERSIFICATION PROJECT.] A qualified
economic diversification project means the provision of special
assistance under section 116M.07, subdivision 11, paragraph (d)
to a business, if the following criteria are satisfied.
(1) If the business is located outside of a distressed
county, the following conditions must be satisfied:
(a) the business is principally engaged in manufacturing;
(b) the primary market for the product of the business is
national or international in scope;
(c) the business would not locate or expand or continue to
expand in Minnesota if special assistance were not provided;
(d) the project will result in the addition of at least 50
permanent employees;
(e) the total capital investment for the project exceeds
$3,000,000;
(f) the provision of special assistance to the business
will result in diversification of the state's economy by
expanding the types of products produced or technologies by
establishing new markets for Minnesota products or technologies;
and
(g) the project will not directly result in a reduction in
the employment of other Minnesota businesses.
(2) If the business is located in a distressed county, the
following conditions must be satisfied:
(a) The business is principally engaged in manufacturing or
in selling of tangible personal property or services in response
to orders received by mail or telephone or in providing business
services by mail or electronic data transmission.
(b) The business would not locate in the distressed county
or an adjacent Minnesota county if special assistance were not
provided;
(c) The total capital investment for the project exceeds
$3,000,000 and the business will increase employment by at least
25 permanent positions or the total capital investment for the
project exceeds $1,000,000 and the business will increase
employment by at least 50 additional positions.
(d) For purposes of this subdivision, "manufacturing" has
the meaning given in section 474.16 474A.02, subdivision 6 14,
except that the provisions of clause (b) (2) do not apply.
Sec. 200. Minnesota Statutes 1986, section 116M.06,
subdivision 3, is amended to read:
Subd. 3. [ECONOMIC DEVELOPMENT FUNDS; PREFERENCES.] (a)
The following eligible small businesses have preference among
all business applicants for financial assistance from the
economic development fund:
(1) businesses located in areas of the state that are
experiencing the most severe unemployment rates in the state;
(2) businesses that are likely to expand and provide
additional permanent employment;
(3) businesses located in border communities that
experience a competitive disadvantage due to location;
(4) businesses that have been unable to obtain traditional
financial assistance due to a disadvantageous location, minority
ownership, or other factors rather than due to the business
having been considered a poor financial risk;
(5) businesses that utilize state resources, thereby
reducing state dependence on outside resources, and that produce
products or services consistent with the long-term social and
economic needs of the state;
(6) businesses located in designated enterprise zones, as
described in section 273.1312, subdivision 4 169; and
(7) business located in federally designated economically
distressed areas.
(b) Except in connection with the issuance of authority
bonds or notes, the authority may not invest the funds in a
program that does not have financial participation from the
private sector, as determined by the authority.
(c) The provisions of this subdivision do not apply to
economic diversification projects.
Sec. 201. Minnesota Statutes 1986, section 116M.07,
subdivision 11, is amended to read:
Subd. 11. [SPECIAL ASSISTANCE PROGRAM.] (a) The authority
may operate a special assistance program and may designate
certain businesses as being in need of special assistance. In
connection with the special assistance program the authority may
borrow money and may issue negotiable bonds and notes in
accordance with section 116M.08, subdivisions 11 and 12.
Notwithstanding any provision to the contrary in section
116M.08, subdivision 11, the aggregate principal amount of the
authority's bonds and notes outstanding at any one time and
issued in connection with the special assistance program,
excluding the amount satisfied and discharged by payment and
deducting amounts held in debt service reserve accounts and
amounts used to make loans guaranteed or insured by the federal
government or a department, agency, or instrumentality of the
federal government or by a private insurer or guarantor
authorized to do business in the state of Minnesota and
acceptable to the authority, shall not exceed $25,000,000. This
authorization is in addition to the authorization contained in
section 116M.08, subdivision 11.
(b) No business shall be eligible to receive special
assistance unless the authority has first passed a resolution
designating the business as being in need of special
assistance. The resolution shall include findings that the
designation and receipt of the special assistance will be of
exceptional benefit to the state of Minnesota in that at least
three of the following criteria are met:
(1) in order to expand or remain in Minnesota, the business
has demonstrated that it is unable to obtain suitable financing
from other sources;
(2) special assistance will enable a business not currently
located in Minnesota to locate a facility within Minnesota which
directly increases the number of jobs within the state;
(3) the business will create or retain significant numbers
of jobs within a community in Minnesota;
(4) the business has a significant potential for growth in
jobs or economic activities within Minnesota within the ensuing
five-year period; and
(5) the business will maintain a significant level of
productivity within Minnesota within the ensuing five-year
period.
(c) Special assistance may include:
(1) a business loan;
(2) a small business loan; or
(3) use of money in the economic development fund to
provide financial assistance to businesses in accordance with
section 116M.06, subdivision 2, except that section 116M.06,
subdivision 2, clause (g), shall apply only to eligible small
businesses.
(d) In the case of a qualified economic diversification
project, special assistance may include, in addition:
(1) reimbursement of expenses paid or to be paid by the
business for property or sales taxes for a period not to exceed
five years; or
(2) use of money in the economic development fund to
provide interest subsidy payments under section 116M.06,
subdivision 2, clause (g) without regard to whether the business
is an eligible small business.
In the case of an economic diversification project, the
total amount of special assistance provided to a business may
not exceed 20 percent of the total capital investment in the
project. If special assistance is provided for a project
located in an enterprise zone, the sum of the amount of special
assistance and the tax reductions provided under section
273.1314, subdivision 9 172, subdivisions 1 to 8, may not exceed
30 percent of the total capital investment in the project. The
amount of special assistance provided for an economic
diversification project may not exceed $20,000 for each
permanent job to be created by the project.
Sec. 202. Minnesota Statutes 1986, section 124.214,
subdivision 3, is amended to read:
Subd. 3. [EXCESS TAX INCREMENT.] If a return of excess tax
increment is made to a school district pursuant to section
273.75 177, subdivision 2 or upon decertification of a tax
increment district, the school district's aid entitlements and
levy limitations must be adjusted for the fiscal year in which
the excess tax increment is paid under the provisions of this
subdivision.
(a) An amount must be subtracted from the school district's
aid for the current fiscal year equal to the product of:
(1) the amount of the payment of excess tax increment to
the school district, times
(2) the ratio of:
(A) the sum of the amounts of the school district's
certified levy for the fiscal year in which the excess tax
increment is paid according to the following:
(i) sections 124A.03, subdivision 1, 124A.06, subdivision
3a, and 124A.08, subdivision 3a, if the school district is
entitled to basic foundation aid according to section 124A.02;
(ii) sections 124A.10, subdivision 3a, and 124A.20,
subdivision 2, if the school district is entitled to third-tier
aid according to section 124A.10, subdivision 4;
(iii) sections 124A.12, subdivision 3a, and 124A.14,
subdivision 5a, if the school district is eligible for
fourth-tier aid according to section 124A.12, subdivision 4;
(iv) section 124A.03, subdivision 4, if the school district
is entitled to summer school aid according to section 124.201;
and
(v) section 275.125, subdivisions 5 and 5c, if the school
district is entitled to transportation aid according to section
124.225, subdivision 8a;
(B) to the total amount of the school district's certified
levy for the fiscal year pursuant to sections 124A.03, 124A.06,
subdivision 3a, 124A.08, subdivision 3a, 124A.10, subdivision
3a, 124A.12, subdivision 3a, 124A.14, subdivision 5a, 124A.20,
subdivision 2, and 275.125, plus or minus auditor's adjustments.
(b) An amount must be subtracted from the school district's
levy limitation for the next levy certified equal to the
difference between:
(1) the amount of the distribution of excess increment, and
(2) the amount subtracted from aid pursuant to clause (a).
If the aid and levy reductions required by this subdivision
cannot be made to the aid for the fiscal year specified or to
the levy specified, the reductions must be made from aid for
subsequent fiscal years, and from subsequent levies. The school
district shall use the payment of excess tax increment to
replace the aid and levy revenue reduced under this subdivision.
This subdivision applies only to the total amount of excess
increments received by a school district for a calendar year
that exceeds $25,000.
Sec. 203. Minnesota Statutes 1986, section 216B.49,
subdivision 7, is amended to read:
Subd. 7. When a public utility is engaged in a project
pursuant to chapter 474 sections 153 to 166, notwithstanding the
provisions of section 474.03 156, funds or accounts established
in connection with the project or payment of bonds issued for
the project may also be invested in investments of the type
authorized in section 11A.24, subdivisions 1 to 5.
Sec. 204. Minnesota Statutes 1986, section 268.38,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBLE RECIPIENTS.] A housing and
redevelopment authority established under section 462.425 3 or a
community action agency recognized under section 268.53 is
eligible for assistance under the program. In addition, a
partnership, joint venture, corporation, or association that
meets the following requirements is also eligible:
(1) it is established for a purpose not involving pecuniary
gain to its members, partners, or shareholders;
(2) it does not pay dividends or other pecuniary
remuneration, directly or indirectly, to its members, partners,
or shareholders; and
(3) in the case of a private, nonprofit corporation, it is
established under and in compliance with chapter 317.
Sec. 205. Minnesota Statutes 1986, section 272.02,
subdivision 5, is amended to read:
Subd. 5. The holding of property by a political
subdivision of the state for later resale for economic
development purposes shall be considered a public purpose in
accordance with subdivision 1, clause (7) for a period not to
exceed eight years. The holding of property by a political
subdivision of the state for later resale (1) which is purchased
or held for housing purposes, or (2) which meets the conditions
described in section 273.73 175, subdivision 10, shall be
considered a public purpose in accordance with subdivision 1,
clause (7). The governing body of the political subdivision
which acquires property which is subject to this subdivision
shall after the purchase of the property certify to the city or
county assessor whether the property is held for economic
development purposes or housing purposes, or whether it meets
the conditions of section 273.73 175, subdivision 10. If the
property is acquired for economic development purposes and
buildings or other improvements are constructed after
acquisition of the property, and if more than one-half of the
floor space of the buildings or improvements which is available
for lease to or use by a private individual, corporation, or
other entity is leased to or otherwise used by a private
individual, corporation, or other entity the provisions of this
subdivision shall not apply to the property. This subdivision
shall not create an exemption from section 272.01, subdivision
2; 272.68; 273.19; or 462.575 40, subdivision 3; or other
provision of law providing for the taxation of or for payments
in lieu of taxes for publicly held property which is leased,
loaned, or otherwise made available and used by a private person.
Sec. 206. Minnesota Statutes 1986, section 272.026, is
amended to read:
272.026 [TAX STATUS OF PROPERTY MANAGED BY A HOUSING
REDEVELOPMENT AUTHORITY OR PUBLIC HOUSING AGENCY.]
Any property that is under the direct management and
control of, but is not owned by, a housing redevelopment
authority or public housing agency, and is used in a manner
authorized and contemplated by chapter 462 sections 1 to 47, and
for which the authority or agency is eligible for assistance
payments under federal law, is public property used for
essential public and governmental purposes, and the property and
the authority or agency is exempt from all taxes and special
assessments of the city, the county, the state, or any political
subdivision of the state in the same manner as property referred
to in section 462.575 40, subdivision 1. Payments in lieu of
taxes for the property shall remain as provided in section
272.68 or 462.575 40, subdivision 3.
Sec. 207. Minnesota Statutes 1986, section 272.68,
subdivision 4, is amended to read:
Subd. 4. When the political subdivision is a housing and
redevelopment authority which has obtained the right to take
possession of a property in a redevelopment project area, it may
lease the property to the previous occupant for temporary use
pending the relocation of the former occupant's residence or
business or may relocate such former occupant in any other
property owned by it in such project area. The authority may
agree with the municipality to the payment of certain sums in
lieu of taxes on said property during such temporary occupancy
in which event the payment of the sum agreed upon shall be in
lieu of taxes as provided in section 462.575 40 and the
provisions of section 272.01, subdivision 2, and section 273.19
shall not apply to such property or to the use thereof.
Sec. 208. Minnesota Statutes 1986, section 273.13,
subdivision 9, is amended to read:
Subd. 9. [CLASS 4A, 4B, 4C, AND 4D.] (1) All property not
included in the preceding classes shall constitute class 4a and
shall be valued and assessed at 43 percent of the market value
thereof, except as otherwise provided in this subdivision.
(2) Real property which is not improved with a structure
and which is not utilized as part of a commercial or industrial
activity shall constitute class 4b and shall be valued and
assessed at 40 percent of market value.
(3) Commercial and industrial property, except as provided
in this subdivision, shall constitute class 4c and shall be
valued and assessed at 28 percent of the first $60,000 of market
value and 43 percent of the remainder, provided that in the case
of state-assessed commercial or industrial property owned by one
person or entity, only one parcel shall qualify for the 28
percent assessment, and in the case of other commercial or
industrial property owned by one person or entity, only one
parcel in each county shall qualify for the 28 percent
assessment.
(4) Employment property defined in section 273.1313 167,
during the period provided in section 273.1313 171, shall
constitute class 4d and shall be valued and assessed at 20
percent of the first $50,000 of market value and 21.5 percent of
the remainder, except that for employment property located in an
a border city enterprise zone designated pursuant to
section 273.1312 169, subdivision 4, paragraph (c), clause (3),
the first $60,000 of market value shall be valued and assessed
at 28 percent and the remainder shall be assessed and valued at
38.5 percent, unless the governing body of the city designated
as an enterprise zone determines that a specific parcel shall be
assessed pursuant to the first clause of this sentence. The
governing body may provide for assessment under the first clause
of the preceding sentence only for property which is located in
an area which has been designated by the governing body for the
receipt of tax reductions authorized by section 273.1314 172,
subdivision 9, paragraph (a) 1.
Sec. 209. Minnesota Statutes 1986, section 273.13,
subdivision 24, is amended to read:
Subd. 24. [CLASS 3.] (a) Commercial and industrial
property is class 3a. It is assessed at 28 percent of the first
$60,000 of market value and 43 percent for the market value over
$60,000. In the case of state-assessed commercial or industrial
property owned by one person or entity, only one parcel may
qualify for the 28 percent assessment. In the case of other
commercial or industrial property owned by one person or entity,
only one parcel in each county may qualify for the 28 percent
assessment.
(b) Employment property defined in section 273.1313 167,
during the period provided in section 273.1313 171, shall
constitute class 3b and shall be valued and assessed at 20
percent of the first $50,000 of market value and 21.5 percent of
the remainder, except that for employment property located in an
a border city enterprise zone designated pursuant to
section 273.1312 169, subdivision 4, paragraph (c), clause (3),
the first $60,000 of market value shall be valued and assessed
at 28 percent and the remainder shall be assessed and valued at
38.5 percent, unless the governing body of the city designated
as an enterprise zone determines that a specific parcel shall be
assessed pursuant to the first clause of this sentence. The
governing body may provide for assessment under the first clause
of the preceding sentence only for property which is located in
an area which has been designated by the governing body for the
receipt of tax reductions authorized by section 273.1314 172,
subdivision 9, paragraph (a) 1.
(c) Real property which is not improved with a structure
and which is not utilized as part of a commercial or industrial
activity shall constitute class 3c and shall be valued and
assessed at 40 percent of market value.
Sec. 210. Minnesota Statutes 1986, section 273.1393, is
amended to read:
273.1393 [COMPUTATION OF NET PROPERTY TAXES.]
Notwithstanding any other provisions to the contrary, "net"
property taxes are determined by subtracting the credits in the
order listed from the gross tax:
(1) disaster credit as provided in section 273.123;
(2) wetlands credit as provided in section 273.115;
(3) native prairie credit as provided in section 273.116;
(4) powerline credit as provided in section 273.42;
(5) agricultural preserves credit as provided in section
473H.10;
(6) enterprise zone credit as provided in section 273.1314
172;
(7) state school agricultural credit as provided in section
124.2137;
(8) state paid homestead credit as provided in section
273.13, subdivisions 22 and 23;
(9) taconite homestead credit as provided in section
273.135;
(10) supplemental homestead credit as provided in section
273.1391.
The combination of all property tax credits must not exceed
the gross tax amount.
Sec. 211. Minnesota Statutes 1986, section 282.01,
subdivision 1, is amended to read:
Subdivision 1. [CLASSIFICATION; USE; EXCHANGE.] It is the
general policy of this state to encourage the best use of
tax-forfeited lands, recognizing that some lands in public
ownership should be retained and managed for public benefits
while other lands should be returned to private ownership. All
parcels of land becoming the property of the state in trust
under the provisions of any law now existing or hereafter
enacted declaring the forfeiture of lands to the state for
taxes, shall be classified by the county board of the county
wherein such parcels lie as conservation or nonconservation.
Such classification shall be made with consideration, among
other things, to the present use of adjacent lands, the
productivity of the soil, the character of forest or other
growth, accessibility of lands to established roads, schools,
and other public services, their peculiar suitability or
desirability for particular uses and the suitability of the
forest resources on the land for multiple use, sustained yield
management. Such classification, furthermore, shall aid: to
encourage and foster a mode of land utilization that will
facilitate the economical and adequate provision of
transportation, roads, water supply, drainage, sanitation,
education, and recreation; to facilitate reduction of
governmental expenditures; to conserve and develop the natural
resources; and to foster and develop agriculture and other
industries in the districts and places best suited thereto.
In making such classification the county board may make use
of such data and information as may be made available by any
office or department of the federal, state, or local
governments, or by any other person or agency possessing
information pertinent thereto at the time such classification is
made. Such lands may be reclassified from time to time as the
county board may deem necessary or desirable, except as to
conservation lands held by the state free from any trust in
favor of any taxing district.
If any such lands are located within the boundaries of any
organized town, with taxable valuation in excess of $20,000, or
incorporated municipality, the classification or
reclassification and sale shall first be approved by the town
board of such town or the governing body of such municipality
insofar as the lands located therein are concerned. The town
board of the town or the governing body of the municipality will
be deemed to have approved the classification or
reclassification and sale if the county board is not notified of
the disapproval of the classification or reclassification and
sale within 90 days of the date the request for approval was
transmitted to the town board of the town or governing body of
the municipality. If the town board or governing body desires
to acquire any parcel lying in the town or municipality by
procedures authorized in this subdivision, it shall, within 90
days of the request for classification or reclassification and
sale, file a written application with the county board to
withhold the parcel from public sale. The county board shall
then withhold the parcel from public sale for one year.
Any tax-forfeited lands may be sold by the county board to
any organized or incorporated governmental subdivision of the
state for any public purpose for which such subdivision is
authorized to acquire property or may be released from the trust
in favor of the taxing districts upon application of any state
agency for any authorized use at not less than their value as
determined by the county board. The commissioner of revenue
shall have power to convey by deed in the name of the state any
tract of tax-forfeited land held in trust in favor of the taxing
districts, to any governmental subdivision for any authorized
public use, provided that an application therefor shall be
submitted to the commissioner with a statement of facts as to
the use to be made of such tract and the need therefor and the
recommendation of the county board. The deed of conveyance
shall be upon a form approved by the attorney general and shall
be conditioned upon continued use for the purpose stated in the
application, provided, however, that if the governing body of
such governmental subdivision by resolution determines that some
other public use shall be made of such lands, and such change of
use is approved by the county board and an application for such
change of use is made to, and approved by, the commissioner,
such changed use may be made of such lands without the necessity
of the governing body conveying the lands back to the state and
securing a new conveyance from the state to the governmental
subdivision for such new public use.
Whenever any governmental subdivision to which any
tax-forfeited land has been conveyed for a specified public use
as provided in this section shall fail to put such land to such
use, or to some other authorized public use as provided herein,
or shall abandon such use, the governing body of the subdivision
shall authorize the proper officers to convey the same, or such
portion thereof not required for an authorized public use, to
the state of Minnesota, and such officers shall execute a deed
of such conveyance forthwith, which conveyance shall be subject
to the approval of the commissioner and in form approved by the
attorney general, provided, however, that a sale, lease,
transfer or other conveyance of such lands by a housing and
redevelopment authority as authorized by sections 462.411 1 to
462.705 47 shall not be an abandonment of such use and such
lands shall not be reconveyed to the state nor shall they revert
to the state. A certificate made by a housing and redevelopment
authority referring to a conveyance by it and stating that the
conveyance has been made as authorized by sections 462.411 1 to
462.705 47 may be filed with the county recorder or registrar of
titles, and the rights of reverter in favor of the state
provided by this subdivision will then terminate. No vote of
the people shall be required for such conveyance. In case any
such land shall not be so conveyed to the state, the
commissioner of revenue shall by written instrument, in form
approved by the attorney general, declare the same to have
reverted to the state, and shall serve a notice thereof, with a
copy of the declaration, by certified mail upon the clerk or
recorder of the governmental subdivision concerned, provided,
that no declaration of reversion shall be made earlier than five
years from the date of conveyance for failure to put such land
to such use or from the date of abandonment of such use if such
lands have been put to such use. The commissioner shall file
the original declaration in the commissioner's office, with
verified proof of service as herein required. The governmental
subdivision may appeal to the district court of the county in
which the land lies by filing with the court administrator a
notice of appeal, specifying the grounds of appeal and the
description of the land involved, mailing a copy thereof by
certified mail to the commissioner of revenue, and filing a copy
thereof for record with the county recorder or registrar of
titles, all within 30 days after the mailing of the notice of
reversion. The appeal shall be tried by the court in like
manner as a civil action. If no appeal is taken as herein
provided, the declaration of reversion shall be final. The
commissioner of revenue shall file for record with the county
recorder or registrar of titles, of the county within which the
land lies, a certified copy of the declaration of reversion and
proof of service.
Any city of the first class now or hereafter having a
population of 450,000, or over, or its board of park
commissioners, which has acquired tax-forfeited land for a
specified public use pursuant to the terms of this section, may
convey said land in exchange for other land of substantially
equal worth located in said city of the first class, provided
that the land conveyed to said city of the first class now or
hereafter having a population of 450,000, or over, or its board
of park commissioners, in exchange shall be subject to the
public use and reversionary provisions of this section; the
tax-forfeited land so conveyed shall thereafter be free and
discharged from the public use and reversionary provisions of
this section, provided that said exchange shall in no way affect
the mineral or mineral rights of the state of Minnesota, if any,
in the lands so exchanged.
Sec. 212. Minnesota Statutes 1986, section 290.61, is
amended to read:
290.61 [PUBLICITY OF RETURNS, INFORMATION.]
It shall be unlawful for the commissioner or any other
public official or employee to divulge or otherwise make known
in any manner any particulars set forth or disclosed in any
report or return required by this chapter, or any information
concerning, the taxpayer's affairs acquired from the taxpayer's
records, officers, or employees while examining or auditing any
taxpayer's liability for taxes imposed hereunder, except in
connection with a proceeding involving taxes due under this
chapter from the taxpayer making such return or to comply with
the provisions of sections 256.978, 268.12, subdivision 12,
270A.11, 273.1314 174, subdivision 16 5, 290.612 and 302A.821.
The commissioner may furnish a copy of any taxpayer's return,
including audit documents and information, to any official of
the United States or of any state having duties to perform in
respect to the assessment or collection of any tax imposed upon
or measured by income, if such taxpayer is required by the laws
of the United States or of such state to make a return therein.
Prior to the release of any information to any official of the
United States or any other state under the provisions of this
section, the person to whom the information is to be released
shall sign an agreement which provides that the person will
protect the confidentiality of the returns and information
revealed thereby to the extent that it is protected under the
laws of the state of Minnesota. The commissioner and all other
public officials and employees shall keep and maintain the same
secrecy in respect to any information furnished by any
department, commission, or official of the United States or of
any other state in respect to the income of any person as is
required by this section in respect to information concerning
the affairs of taxpayers under this chapter. Nothing herein
contained shall be construed to prohibit the commissioner from
publishing statistics so classified as not to disclose the
identity of particular returns or reports and the items
thereof. Upon request of a majority of the members of the
senate tax committee or of the house tax committee or the tax
study commission, the commissioner shall furnish abstracted
financial information to those committees for research purposes
from returns or reports filed pursuant to this chapter, without
disclosing the name, address, social security number, business
identification number or any other item of information
associated with any return or report which the commissioner
believes is likely to identify the taxpayer. The commissioner
shall not furnish the actual return, or a portion thereof, or a
reproduction or copy of any return or portion thereof.
"Abstracted financial information" means only the dollar amounts
set forth on each line on the form including the filing status.
Any person violating the provisions of this section shall
be guilty of a gross misdemeanor.
In order to locate the named payee on state warrants issued
pursuant to this chapter or chapter 290A and undeliverable by
the United States postal service, the commissioner may publish
in any newspaper of general circulation in this state or make
available to radio or television stations a list of the name and
last known address of the payee as shown on the reports or
returns filed with the commissioner. The commissioner may
exclude the names of payees whose refunds are in an amount which
is less than a minimal amount to be determined by the
commissioner. The list shall not contain any particulars set
forth on any report or return. The publication or announcement
shall include instructions on claiming the warrants.
An employee of the department of revenue may, in connection
with official duties relating to any audit, collection activity,
or civil or criminal tax investigation or any other offense
under this chapter, disclose return information to the extent
that such disclosure is necessary in obtaining information,
which is not otherwise reasonably available, with respect to the
correct determination of tax, liability for tax, or the amount
to be collected or with respect to the enforcement of any other
provision of this chapter.
In order to facilitate processing of returns and payments
of taxes required by this chapter, or to facilitate the
development, implementation, and use of computer programs and
automated procedures for purposes of administering this chapter
or chapter 290A, the commissioner may contract with outside
vendors and may disclose private and nonpublic data to the
vendor. The data disclosed will be administered by the vendor
consistent with this section, and the vendor must agree to
subject the vendor and the vendor's employees to the civil and
criminal penalties provided by law for unlawful disclosure.
Information from a tax return required under this chapter
on a holder of a license issued by the Minnesota racing
commission or an owner of a horse may be provided by the
commissioner to the Minnesota racing commission.
The commissioner may provide to the Minnesota supreme court
and the board of professional responsibility information
regarding the amount of any uncontested delinquent taxes due
under this chapter or a failure to file a return due under this
chapter by an attorney admitted to practice law in this state
under chapter 481.
Sec. 213. Minnesota Statutes 1986, section 298.2211,
subdivision 1, is amended to read:
Subdivision 1. [PURPOSE; GRANT OF AUTHORITY.] In order to
accomplish the legislative purposes specified in chapters 362A,
sections 143 to 166 and chapter 462C, and 474, within tax relief
areas as defined in section 273.134, the commissioner of iron
range resources and rehabilitation may exercise the following
powers: (1) all powers conferred upon a rural development
financing authority under sections 362A.01 to 362A.05 sections
143 to 150; (2) all powers conferred upon a city under chapter
462C, subject to compliance with the provisions of section
474A.07; (3) all powers conferred upon a municipality or a
redevelopment agency under chapter 474 sections 153 to 166; (4)
all powers provided by chapter 362A sections 143 to 152 to
further any of the purposes and objectives of chapters chapter
462C and 474 sections 153 to 166; and (5) all powers conferred
upon a municipality or an authority under sections 273.73 175 to
273.76 178, section 273.77 179, except paragraph
(a) subdivision 2 thereof, and section 273.78 180, subject to
compliance with the provisions of section 273.74 176,
subdivisions 1, 2, and 3; provided that any tax increments
derived by the commissioner from the exercise of this authority
may be used only to finance or pay premiums or fees for
insurance, letters of credit, or other contracts guaranteeing
the payment when due of net rentals under a project lease or the
payment of principal and interest due on or repurchase of bonds
issued to finance a project or program, to accumulate and
maintain reserves securing the payment when due on bonds issued
to finance a project or program, or to provide an interest rate
reduction program pursuant to section 462.445 12, subdivision 10
7. Tax increments and earnings thereon remaining in any bond
reserve account after payment or discharge of any bonds secured
thereby shall be used within one year thereafter in furtherance
of this section or returned to the county auditor of the county
in which the tax increment financing district is located. If
returned to the county auditor, the county auditor shall
immediately allocate the amount among all government units which
would have shared therein had the amount been received as part
of the other ad valorem taxes on property in the district most
recently paid, in the same proportions as other taxes were
distributed, and shall immediately distribute it to the
government units in accordance with the allocation.
Sec. 214. Minnesota Statutes 1986, section 298.2211,
subdivision 3, is amended to read:
Subd. 3. [PROJECT APPROVAL.] All projects authorized by
this section shall be submitted by the commissioner to the iron
range resources and rehabilitation board, which shall recommend
approval or disapproval or modification of the projects. Each
project shall then be submitted to the legislative advisory
committee for any review and comment the committee deems
appropriate. Prior to the commencement of a project involving
the exercise by the commissioner of any authority of sections
273.71 to 273.86 175 to 180, the governing body of each
municipality in which any part of the project is located and the
county board of any county containing portions of the project
not located in an incorporated area shall by majority vote
approve or disapprove the project. Any project, as so approved
by the board and the applicable governing bodies, if any,
together with any comment provided by the legislative advisory
committee, detailed information concerning the project, its
costs, the sources of its funding, and the amount of any bonded
indebtedness to be incurred in connection with the project,
shall be transmitted to the governor, who shall approve,
disapprove, or return the proposal for additional consideration
within 30 days of receipt. No project authorized under this
section shall be undertaken, and no obligations shall be issued
and no tax increments shall be expended for a project authorized
under this section until the project has been approved by the
governor.
Sec. 215. Minnesota Statutes 1986, section 353.01,
subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL SUBDIVISION.] "Governmental
subdivision" means a county, city, town, school district within
this state, or a department or unit of state government, or any
public body whose revenues are derived from taxation, fees,
assessments or from other sources, but does not mean any
municipal housing and redevelopment authority organized under
the provisions of sections 462.415 to 462.705 1 to 47; or any
port authority organized pursuant to chapter 458 sections 49 to
69; or any hospital district organized or reorganized prior to
July 1, 1975 pursuant to sections 447.31 to 447.37.
Sec. 216. Minnesota Statutes 1986, 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
1 to 462.705 47 and any soil and water conservation district
organized pursuant to chapter 40 or any port authority organized
pursuant to chapter 458 sections 49 to 69, or any economic
development authority organized pursuant to sections 458C.01 to
458C.23 91 to 109, or any hospital district organized or
reorganized pursuant to sections 447.31 to 447.37.
Sec. 217. Minnesota Statutes 1986, section 355.16, is
amended to read:
355.16 [COSTS DEFRAYED FROM PROCEEDS OF SPECIAL BENEFIT
TAXES.]
The proceeds of the special benefit taxes authorized to be
levied for redevelopment purposes under section 462.545 33,
subdivision 6, may be used to defray all or part of the costs
incurred by any housing and redevelopment authority under the
provisions of sections 355.11 to 355.16.
Sec. 218. Minnesota Statutes 1986, section 412.251, is
amended to read:
412.251 [ANNUAL TAX LEVY.]
The council shall make its annual tax levy by resolution
within the per capita limits established by statute. The amount
of taxes levied for general city purposes shall not exceed
11-2/3 mills on each dollar of the assessed valuation of the
property taxable in the city in cities having an assessed
valuation of less than $1,500,000 and 10 mills on each dollar in
cities having an assessed valuation of more than $1,500,000. In
calculating such limit property used for homestead purposes
shall be figured as provided in section 273.13, subdivision 7a.
The following taxes may be levied in addition to the levies
above authorized:
(1) A tax for the payment of principal and interest on
outstanding obligations of the city as provided by sections
475.61, 475.73 and 475.74.
(2) A tax for the payment of judgments as authorized by
section 465.14.
(4) A maximum of one-third of one mill but not to exceed
$500 to provide musical entertainment to the public in public
buildings or on public grounds.
(5) A tax for band purposes as authorized by section 449.09.
(6) A tax for the support of a municipal forest, as
authorized by section 459.06.
(7) A tax for advertising purposes, as authorized by
section 465.56 190.
(8) A tax for forest fire protection in any city in a
forest area, as authorized by section 88.04.
(9) A maximum of 1-2/3 mills for the utilities fund in any
city whose utilities are under the jurisdiction of a public
utilities commission. Such tax shall be levied for the purpose
of paying the cost of the utility service or other services
supplied to the city.
(10) A tax for the support of a public library, as
authorized by section 134.07.
(11) A tax for firefighters' relief association purposes as
authorized by sections 69.772, subdivision 4, 69.773,
subdivision 5, or other statutes.
(12) Such other special taxes as may be authorized by law.
Nothing in this section shall be construed to reduce levies
of any municipality below the per capita levy spread in 1970.
Sec. 219. Minnesota Statutes 1986, section 462C.02,
subdivision 6, is amended to read:
Subd. 6. "City" means any statutory or home rule charter
city, a county housing and redevelopment authority created by
special law or authorized by its county to exercise its powers
pursuant to section 462.426 4, or any public body which (a) is
the housing and redevelopment authority in and for a statutory
or home rule charter city, the port authority of a statutory or
home rule charter city, or an economic development authority of
a city established under sections 458C.01 to 458C.23 91 to 109,
and (b) is authorized by ordinance to exercise, on behalf of a
statutory or home rule charter city, the powers conferred by
sections 462C.01 to 462C.10.
Sec. 220. Minnesota Statutes 1986, section 462C.02,
subdivision 9, is amended to read:
Subd. 9. "Targeted area" means
(a) a development district established pursuant to section
472A.03 127,
(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,
(f) an area of chronic economic distress designated by the
Minnesota housing finance agency, or
(g) an economic development district established pursuant
to section 458C.14.
Sec. 221. Minnesota Statutes 1986, section 462C.05,
subdivision 7, is amended to read:
Subd. 7. A development may consist of a combination of a
multifamily housing development and a new or existing health
care facility, as defined by section 474.02 154, if the
following conditions are satisfied:
(a) The multifamily housing development is designed and
intended to be used for rental occupancy;
(b) The multifamily housing development is designed and
intended to be used primarily by elderly or physically
handicapped persons; and
(c) Nursing, medical, personal care, and other health
related assisted living services are available on a 24-hour
basis in the development to the residents.
The limitations of section 462C.04, subdivision 2, clause
(c), shall not apply to projects defined in this subdivision and
approved by the Minnesota housing finance agency before October
1, 1983.
The Minnesota housing finance agency shall provide, in the
annual report required by section 462C.04, subdivision 2,
information on the costs incurred for the issuance of bonds for
projects defined in this subdivision. The report shall also
include the Minnesota housing finance agency's recommendations
for the regulation of costs of issuance for future issues.
Sec. 222. Minnesota Statutes 1986, section 462C.06, is
amended to read:
462C.06 [COUNTY HOUSING AND REDEVELOPMENT AUTHORITY ACTING
ON BEHALF OF CITY.]
A housing and redevelopment authority in and for a county
may exercise the powers conferred by sections 462C.01 to 462C.10
either (1) on its own behalf or (2) on behalf of a city (other
than a county housing and redevelopment authority), if the city
authorizes the housing and redevelopment authority in and for
the county in which the city is located to exercise such powers
and the county has authorized its housing and redevelopment
authority to exercise its powers pursuant to section 462.426 4
or the county housing and redevelopment authority has been
created by special law; provided, however, that any program
undertaken pursuant to this section is subject to the
limitations of sections 462C.03 and 462C.04 in the case of a
single-family housing program, and subject to the limitations of
section 462C.05 in the case of a multifamily housing development
program.
Sec. 223. Minnesota Statutes 1986, section 465.54, is
amended to read:
465.54 [MAY PAY EXPENSES FROM GENERAL FUND OF STATUTORY
CITY.]
The council of any statutory city may pay from the general
fund of the municipality, for the purposes of section 465.53
187, expenses incurred by the governing officers in the
performance of their official duties. Trips for lobbying
purposes or trips to meetings or conventions not in connection
with specific municipal projects pending before the officer
making the trip are not authorized for payment under this
section.
All expenditures for the purposes of this section shall be
within the statutory limits upon tax levies in the statutory
city.
Sec. 224. Minnesota Statutes 1986, section 465.74,
subdivision 7, is amended to read:
Subd. 7. [PORT AUTHORITIES, OWNERSHIP AND OPERATION OF
DISTRICT HEATING SYSTEMS.] A port authority organized pursuant
to sections 458.09 to 458.1991 49 to 69 or a special law may
acquire, own, construct, and operate a district heating system
or systems to provide heating and cooling services and other
energy services within the statutory or home rule charter city
within which it is created. The authority may, in conjunction
with a district heating system, acquire, own, construct, and
operate an energy management and control system to monitor and
control users' energy demand within the city as a related
ancillary function of the district heating system. The
authority may, in conjunction with a district heating system,
acquire, own, construct, and operate ancillary services related
to an energy management and control system including, but not
limited to, sensing and monitoring services for supervision of
fire and life safety systems and building security systems
within the city.
This section shall be effective for a port authority only
after adoption of an ordinance or resolution by the board of the
port authority and by the governing body of the city stating
their intention to exercise the authority allowed by this
section.
A port authority may, with approval of the city, lease part
or all of the district heating system or contract with respect
to part or all of the district heating system, with any person,
corporation, association, or public utility company for the
purpose of constructing, improving, operating, or maintaining
the district heating system.
Sec. 225. Minnesota Statutes 1986, section 465.77, is
amended to read:
465.77 [REGULATION OF DRILLING TO PROTECT MINED UNDERGROUND
SPACE DEVELOPMENT.]
A home rule charter city or statutory city may regulate
drilling for the purposes and in the manner provided in section
472B.08 142.
Sec. 226. Minnesota Statutes 1986, section 471A.03,
subdivision 9, is amended to read:
Subd. 9. [USE OF BOND PROCEEDS.] The municipality may
issue bonds and other obligations and apply their proceeds
toward the payment of the costs of the related facilities in the
same manner and subject to the same conditions and limitations
that would apply if the related facilities were acquired,
constructed, owned, and operated exclusively by the municipality
and for these purposes, related facilities shall be considered
to be a project within the meaning of section 474.02 154,
subdivision 1a 2, paragraph (b).
Sec. 227. Minnesota Statutes 1986, section 473.195,
subdivision 1, is amended to read:
Subdivision 1. In addition to, and not in limitation of,
all other powers invested in it by law, the council, and the
members thereof, shall have, throughout the metropolitan area,
the same functions, rights, powers, duties, privileges,
immunities and limitations as are provided for housing and
redevelopment authorities created for municipalities, and for
the commissioners of such authorities. The provisions of
sections 462.411 to 462.705 1 to 47 and of all other laws
relating to housing and redevelopment authorities shall be
applicable to the council when functioning as an authority,
except as herein provided or as clearly indicated otherwise from
the context of such laws. Section 462.425 3 shall have no
application to the council nor to any municipality or county
within which the council undertakes a project. Any municipality
or county, and the governing bodies of any municipality or
county, within and for which the council undertakes a project
shall have all the powers, authority and obligations granted to
municipalities and counties by the provisions of
sections 462.411 to 462.705 1 to 47 and all other laws relating
to housing and redevelopment authorities. The council may plan
and propose projects within the boundaries of any municipality,
and may otherwise exercise the powers of an authority at any
time; provided, however, that the council shall not implement
any housing project, housing development project, redevelopment
project or urban renewal project within the boundaries of any
municipality or county without the prior approval of the
governing body of the municipality or county in which any such
project is to be located; and provided further that the council
shall not propose any project to the governing body of a
municipality or county having an active authority created
pursuant to section 462.425 3, or pursuant to special
legislation, without first submitting the proposed project to
the municipal or county authority for its review and
recommendations; and provided further that as to any project
proposed by the council and approved by the municipality or
county, the council shall not undertake the project if within 60
days after it has been proposed, the municipality or county
agrees to undertake the project. All plans and projects of the
council shall be consistent with the comprehensive development
guide.
Sec. 228. Minnesota Statutes 1986, section 473.201,
subdivision 1, is amended to read:
Subdivision 1. The council shall allocate the net
unreimbursed costs of any project which it undertakes to the
municipality or group of municipalities or county for which the
project is undertaken. The governing body of each such
municipality or county shall impose taxes or other revenue
measures to provide funds necessary to pay the allocated costs,
and the governing body of each such municipality or county shall
have all the powers, authority and obligation granted to
authorities by section 462.545 33 and all other provisions of
law regarding the financing of such projects, provided that the
council shall have the powers of an authority for purposes of
applying for and receiving federal grants in connection with all
projects which it undertakes.
Sec. 229. Minnesota Statutes 1986, section 473.504,
subdivision 11, is amended to read:
Subd. 11. The commission may sell or otherwise dispose of
any real or personal property acquired by it which is no longer
required for accomplishment of its purposes. Such property may
be sold in the manner provided by section 458.196 66, insofar as
practical. The commission may give such notice of sale as it
shall deem appropriate. When the commission determines that any
property or any interceptor or treatment works or any part
thereof which has been acquired from a local government unit
without compensation is no longer required, but is required as a
local facility by the government unit from which it was
acquired, the commission may by resolution transfer it to such
government unit.
Sec. 230. Minnesota Statutes 1986, section 473.556,
subdivision 6, is amended to read:
Subd. 6. [DISPOSITION OF PROPERTY.] (a) The commission may
sell or otherwise dispose of any real or personal property
acquired by it which is no longer required for accomplishment of
its purposes. The property shall be sold in the manner provided
by section 458.196 66, insofar as practical and consistent with
sections 473.551 to 473.595.
(b) Real property at the metropolitan sports area (not
including the indoor public assembly facility and adjacent
parking facilities) which is no longer needed for sports
facilities may be sold or leased for residential, commercial, or
industrial development in accordance with the procedures in
section 458.196 66 within two years to a private, for-profit
entity, and thereafter the property shall be subject to all
applicable taxes and assessments and all government laws, rules
and ordinances bearing on use and development as if the property
were privately owned.
(c) Any real property right, title, or interest within the
provisions of paragraph (b) owned by the commission may be sold
or leased in whole or in part to the port authority of the city
of Bloomington to further the general plan of port improvement
or industrial development or for any other purpose which the
authority considers to be in the best interests of the district
and its people. The property shall be sold or leased to the
authority in accordance with section 458.196 66, subdivisions 1
to 4. Section 458.196 66, subdivisions 5 to 7 shall not apply
to a sale under this paragraph.
(d) Real property disposed of under clause (c) shall be
subject to leases, agreements, or other written interests in
force on June 1, 1983.
(e) The proceeds from the sale of any real property at the
metropolitan sports area shall be paid to the council and used
for debt service or retirement.
Sec. 231. Minnesota Statutes 1986, section 473.638,
subdivision 2, is amended to read:
Subd. 2. [RETENTION OR SALE OF PROPERTY.] The commission
may retain any property now owned by it or acquired under
subdivision 1 and use it for a lawful purpose, or it may provide
for the sale or other disposition of the property in accordance
with a redevelopment plan in the same manner and upon the same
terms as the housing and redevelopment authority and governing
body of a municipality under the provisions of section 462.525
29, all subject to the provisions of section 473.636,
subdivision 2, or to existing land use and development control
measures approved by the council.
Sec. 232. Minnesota Statutes 1986, section 473.811,
subdivision 8, is amended to read:
Subd. 8. [COUNTY SALE OR LEASE.] Each metropolitan county
may sell or lease any facilities or property or property rights
previously used or acquired to accomplish the purposes specified
by sections 473.149, 473.151, 473.801 to 473.823, 473.827,
473.831, 473.833, and 473.834. Such property may be sold in the
manner provided by section 458.196 66, or may be sold in the
manner and on the terms and conditions determined by the county
board. Each metropolitan county may convey to or permit the use
of any such property by a local government unit, with or without
compensation, without submitting the matter to the voters of the
county. No real property or property rights acquired pursuant
to this section, may be disposed of in any manner unless and
until the county shall have submitted to the agency and the
metropolitan council for review and comment the terms on and the
use for which the property will be disposed of. The agency and
the council shall review and comment on the proposed disposition
within 60 days after each has received the data relating thereto
from the county.
Sec. 233. Minnesota Statutes 1986, section 473.852,
subdivision 6, is amended to read:
Subd. 6. "Fiscal devices" means the valuation of property
pursuant to section 273.111, the designation of urban and rural
service districts, pursuant to section 272.67, and the
establishment of development districts pursuant to sections
472A.01 to 472A.13 125 to 135, and any other statutes
authorizing the creation of districts in which the use of tax
increment bonding is authorized.
Sec. 234. Minnesota Statutes 1986, section 473F.02,
subdivision 3, is amended to read:
Subd. 3. "Commercial-industrial property" means the
following categories of property, as defined in section 273.13,
excluding that portion of such property (1) which may, by law,
constitute the tax base for a tax increment pledged pursuant to
section 462.585 42 or 474.10 163, certification of which was
requested prior to August 1, 1979, to the extent and while such
tax increment is so pledged; (2) which may, by law, constitute
the tax base for tax revenues set aside and paid over for credit
to a sinking fund pursuant to direction of the city council in
accordance with Laws 1963, chapter 881, as amended, to the
extent that such revenues are so treated in any year; or (3)
which is exempt from taxation pursuant to section 272.02:
(a) That portion of class 3 property defined in Minnesota
Statutes 1971, section 273.13, consisting of stocks of
merchandise and furniture and fixtures used therewith;
manufacturers' materials and manufactured articles; and tools,
implements and machinery, whether fixtures or otherwise.
(b) That portion of class 4 property defined in Minnesota
Statutes 1971, section 273.13, which is either used or zoned for
use for any commercial or industrial purpose, except for such
property which is, or, in the case of property under
construction, will when completed be used exclusively for
residential occupancy and the provision of services to
residential occupants thereof. Property shall be considered as
used exclusively for residential occupancy only if each of not
less than 80 percent of its occupied residential units is, or,
in the case of property under construction, will when completed
be occupied under an oral or written agreement for occupancy
over a continuous period of not less than 30 days.
If the classification of property prescribed by section
273.13 is modified by legislative amendment, the references in
this subdivision shall be to such successor class or classes of
property, or portions thereof, as embrace the kinds of property
designated in this subdivision.
Sec. 235. Minnesota Statutes 1986, section 473F.05, is
amended to read:
473F.05 [ASSESSED VALUATION; 1972 AND SUBSEQUENT YEARS.]
On or before November 20 of 1972 and each subsequent year,
the assessors within each county in the area shall determine and
certify to the county auditor the assessed valuation in that
year of commercial-industrial property subject to taxation
within each municipality in the county, determined without
regard to section 273.76 178, subdivision 3.
Sec. 236. Minnesota Statutes 1986, section 473F.08,
subdivision 2, is amended to read:
Subd. 2. The taxable value of a governmental unit is its
assessed valuation, as determined in accordance with other
provisions of law including section 273.76 178, subdivision 3,
subject to the following adjustments:
(a) There shall be subtracted from its assessed valuation,
in each municipality in which the governmental unit exercises ad
valorem taxing jurisdiction, an amount which bears the same
proportion to 40 percent of the amount certified in that year
pursuant to section 473F.06 in respect to that municipality as
the total preceding year's assessed valuation of
commercial-industrial property which is subject to the taxing
jurisdiction of the governmental unit within the municipality,
determined without regard to section 273.76 178, subdivision 3,
bears to the total preceding year's assessed valuation of
commercial-industrial property within the municipality,
determined without regard to section 273.76 178, subdivision 3;
(b) There shall be added to its assessed valuation, in each
municipality in which the governmental unit exercises ad valorem
taxing jurisdiction, an amount which bears the same proportion
to the areawide base for the year attributable to that
municipality as the total preceding year's assessed valuation of
residential property which is subject to the taxing jurisdiction
of the governmental unit within the municipality bears to the
total preceding year's assessed valuation of residential
property of the municipality.
Sec. 237. Minnesota Statutes 1986, section 473F.08,
subdivision 4, is amended to read:
Subd. 4. In 1972 and subsequent years, the county auditor
shall divide that portion of the levy determined pursuant to
subdivision 3, clause (b), by the assessed valuation of the
governmental unit, taking section 273.76 178, subdivision 3 into
account, less that portion subtracted from assessed valuation
pursuant to subdivision 2, clause (a). The resulting rate shall
apply to all taxable property except commercial-industrial
property, which shall be taxed in accordance with subdivision 6.
Sec. 238. Minnesota Statutes 1986, section 473F.08,
subdivision 6, is amended to read:
Subd. 6. The rate of taxation determined in accordance
with subdivision 5 shall apply in the taxation of each item of
commercial-industrial property subject to taxation within a
municipality, including property located within any tax
increment financing district, as defined in section 273.73 175,
subdivision 9, to that portion of the assessed valuation of the
item which bears the same proportion to its total assessed
valuation as 40 percent of the amount determined pursuant to
section 473F.06 in respect to the municipality in which the
property is taxable bears to the amount determined pursuant to
section 473F.05. The rate of taxation determined in accordance
with subdivision 4 shall apply in the taxation of the remainder
of the assessed valuation of the item.
Sec. 239. Minnesota Statutes 1986, section 475.525,
subdivision 3, is amended to read:
Subd. 3. [REDEVELOPMENT AGENCY.] A municipality may
itself, or by ordinance authorize any redevelopment agency as
defined in section 474.02 154, subdivision 3, acting for the
municipality, to exercise any and all of the powers granted to
the municipality under subdivision 2 and to the redevelopment
agency under any other law for the purpose of financing all or
any portion of the district heating system and any conversion
facilities for modifying the user's heating or water system to
use the heat energy converted from the steam or hot water
furnished by the district heating system including, but without
limitation, the payment of interest during construction and for
a reasonable time thereafter and the establishment of reserves
for bond payment and for working capital, in which event if the
issuer is a redevelopment agency the sources of revenue that may
be pledged to the payment of revenue bonds or obligations shall
include any revenues of the redevelopment agency. The proceeds
of bonds or obligations issued by the municipality or
redevelopment agency may be used to make or purchase loans for
facilities which the issuer estimates will require such
financing, and, for the purpose of making or purchasing such
loans the issuer shall have power to enter into loan agreements
and other related agreements, both before and after the issuance
of the obligations, with such persons, firms, public or private
corporations, federal or state agencies, governmental units, and
under such terms and conditions as the issuer shall deem
appropriate; and any governmental unit in the state shall have
the power to apply, contract for and receive the loans without
limitation under any other provisions of chapter 475.
Sec. 240. Minnesota Statutes 1986, section 477A.011,
subdivision 7, is amended to read:
Subd. 7. [LOCAL REVENUE BASE.] For the 1984 aid
distribution, a municipality's local revenue base means the sum
of:
(a) (1) in the case of a municipality which had a local
revenue base for the 1981 aid distribution, the 1981 aid
distribution base calculated pursuant to Minnesota Statutes
1980, section 477A.01, less any amount added to the local
revenue base for the costs of principal and interest on bonded
debt incurred for the purpose of providing capital replacement
for streets, curbs, gutters, storm sewers, and bridges,
multiplied by a factor of 1.208, and multiplied by a factor
equal to the estimated 1981 population divided by the 1980
census population, provided that the latter factor is greater
than 1.0; or
(2) in the case of a municipality which did not have a
local revenue base for the 1981 aid distribution, the local
government aid distribution certified for 1983 pursuant to
sections 477A.011 to 477A.014, plus the property tax levy,
exclusive of levies for bonded indebtedness for taxes payable in
1983;
(b) the total amount certified in calendar year 1983
pursuant to Minnesota Statutes 1982, section 273.138; and
(c) the total amount certified in calendar year 1983
pursuant to Minnesota Statutes 1982, section 273.139, including
any amount received by a tax increment financing district as
defined by section 273.73 175, subdivision 9, or which qualifies
for exemption pursuant to 273.78 section 182, which lies totally
within the municipality, and including any amount which would
have been received in 1983 pursuant to section 273.139 by a tax
increment financing district as defined by section 273.73 175,
subdivision 9, lying totally within the municipality, for a
project approved by the Minnesota housing finance agency or the
United States department of housing and urban development prior
to March 1, 1983, had the project been completed and subject to
taxation based upon full market value for taxes payable in 1983.
Any municipality whose payable 1983 levy exceeded its
payable 1979 levy by a factor of ten, primarily because of a
loss in state administered aids, may apply to the commissioner
of revenue to have its local revenue base computed as if it did
not have a local revenue base for the 1981 distribution.
Applications shall be in the form and accompanied by the data
required by the commissioner.
For 1985 and all subsequent calendar year aid distributions
the local revenue base means the adjusted local revenue base
used in the previous year aid distribution.
Sec. 241. Minnesota Statutes 1986, section 504.24,
subdivision 2, is amended to read:
Subd. 2. If a landlord, an agent or other person acting
under the landlord's direction or control, in possession of a
tenant's personal property, fails to allow the tenant to retake
possession of the property within 24 hours after written demand
by the tenant or the tenant's duly authorized representative or
within 48 hours, exclusive of weekends and holidays, after
written demand by the tenant or a duly authorized representative
when the landlord, the landlord's agent or person acting under
the landlord's direction or control has removed and stored the
personal property in accordance with subdivision 1 in a location
other than the premises, the tenant shall recover from the
landlord punitive damages not to exceed $300 in addition to
actual damages and reasonable attorney's fees. In determining
the amount of punitive damages the court shall consider (a) the
nature and value of the property; (b) the effect the deprivation
of the property has had on the tenant; (c) if the landlord, an
agent or other person acting under the landlord's direction or
control unlawfully took possession of the tenant's property; and
(d) if the landlord, an agent or other person under the
landlord's direction or control acted in bad faith in failing to
allow the tenant to retake possession of the property. The
provisions of this subdivision shall not apply to personal
property which has been sold or otherwise disposed of by the
landlord in accordance with subdivision 1, or to landlords who
are housing authorities, created or authorized to be created by
sections 462.415 to 462.705 1 to 47, and their agents and
employees, in possession of a tenant's personal property, except
that housing authorities must allow the tenant to retake
possession of the property in accordance with this subdivision.
Sec. 242. Minnesota Statutes 1986, section 609.321,
subdivision 12, is amended to read:
Subd. 12. A "public place" means a public street or
sidewalk, a pedestrian skyway system as defined in section
472A.02 126, subdivision 6 4, a hotel, motel, or other place of
public accommodation, or a place licensed to sell intoxicating
liquor, wine, nonintoxicating malt beverages, or food.
Sec. 243. [INSTRUCTION TO REVISOR.]
If a provision of a section of Minnesota Statutes repealed
by section 244 is amended by the 1987 regular session, the
revisor shall codify the amendment consistent with the
recodification of the affected section by this act,
notwithstanding any law to the contrary.
Sec. 244. [REPEALER.]
Minnesota Statutes 1986, sections 273.1312; 273.1313;
273.1314; 273.71; 273.72; 273.73; 273.74; 273.75; 273.76; 273.77;
273.78; 273.86; 362A.01; 362A.02; 362A.03; 362A.04; 362A.041;
362A.05; 362A.06; 373.31; 426.055; 458.09; 458.091; 458.10;
458.11; 458.12; 458.14; 458.15; 458.16; 458.17; 458.18; 458.19;
458.191; 458.192; 458.193; 458.194; 458.1941; 458.195; 458.196;
458.197; 458.198; 458.199; 458.1991; 458.70; 458.701; 458.702;
458.703; 458.711; 458.712; 458.713; 458.72; 458.74; 458.741;
458.75; 458.76; 458.77; 458.771; 458.772; 458.773; 458.774;
458.775; 458.776; 458.777; 458.778; 458.79; 458.80; 458.801;
458.81; 458C.01; 458C.03; 458C.04; 458C.05; 458C.06; 458C.07;
458C.08; 458C.09; 458C.10; 458C.11; 458C.12; 458C.13; 458C.14;
458C.15; 458C.16; 458C.17; 458C.18; 458C.19; 458C.20; 458C.22;
458C.23; 459.01; 459.02; 459.03; 459.04; 459.05; 459.31; 459.32;
459.33; 459.34; 462.411; 462.415; 462.421; 462.425; 462.426;
462.427; 462.428; 462.429; 462.4291; 462.432; 462.435; 462.441;
462.445; 462.451; 462.455; 462.461; 462.465; 462.466; 462.471;
462.475; 462.481; 462.485; 462.491; 462.495; 462.501; 462.505;
462.511; 462.515; 462.521; 462.525; 462.531; 462.535; 462.541;
462.545; 462.551; 462.555; 462.556; 462.561; 462.565; 462.571;
462.575; 462.581; 462.585; 462.591; 462.595; 462.601; 462.605;
462.611; 462.615; 462.621; 462.625; 462.631; 462.635; 462.641;
462.645; 462.651; 462.655; 462.661; 462.665; 462.671; 462.675;
462.681; 462.685; 462.691; 462.695; 462.701; 462.705; 462.712;
462.713; 462.714; 462.715; 462.716; 465.026; 465.53; 465.55;
465.56; 472.01; 472.02; 472.03; 472.04; 472.05; 472.06; 472.07;
472.08; 472.09; 472.10; 472.11; 472.12; 472.125; 472.13; 472.14;
472.15; 472.16; 472A.01; 472A.02; 472A.03; 472A.04; 472A.05;
472A.06; 472A.07; 472A.09; 472A.10; 472A.11; 472A.12; 472A.13;
472B.01; 472B.02; 472B.03; 472B.04; 472B.05; 472B.06; 472B.07;
472B.08; 474.01; 474.02; 474.03; 474.04; 474.05; 474.06; 474.07;
474.08; 474.09; 474.10; 474.11; 474.13; 474.15; Laws 1961,
chapter 545; Laws 1963, chapters 254; and 827; Laws 1967,
chapter 541; Laws 1969, chapter 98; Laws 1973, chapter 114; Laws
1974, chapter 218; Laws 1975, chapter 326; Laws 1976, chapter
234, section 3; Laws 1979, chapter 269, section 1; Laws 1980,
chapters 453; and 595, sections 5 and 8; Laws 1982, chapter 523,
article 24, section 2; Laws 1983, chapters 110; and 257, section
1; Laws 1984, chapters 397; 498; and 548, section 9; and Laws
1985, chapters 173; 177; 188; 189; 192; 199; 205; 206, sections
2 and 3; and 301, sections 3 and 4; are repealed.
Approved May 28, 1987
Official Publication of the State of Minnesota
Revisor of Statutes