Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 210-S.F.No. 1238 
           An act relating to the city of Richfield; authorizing 
          the city to advance money to the commissioner of 
          transportation to expedite construction of a frontage 
          road within the city; authorizing an agreement between 
          the commissioner and the city; authorizing the city to 
          issue bonds and requiring the commissioner to pay 
          interest on the bonds up to a certain amount. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [RICHFIELD HIGHWAY IMPROVEMENT.] 
    Subdivision 1.  [CONTRACT AUTHORIZED.] To expedite 
construction of a highway improvement project within the city of 
Richfield consisting of a remote frontage road parallel to 
highway marked No. I-494 between trunk highway marked No. 77 and 
highway marked No. I-35W, the city and the commissioner, on 
behalf of the state, may enter into a contract under which the 
city agrees to advance to the commissioner, in consideration of 
the undertaking of the project by the state at a time specified 
in the contract, the cost of acquisition, design services, 
construction, and other costs attributable to the project.  
Before entering into the contract, the project must be scheduled 
in the commissioner's work program and must meet state 
environmental requirements.  The project must be fully described 
in the contract.  The advance of cash by the city must not 
exceed 100 percent of the estimated cost of the project and may 
be made in installments during the performance of the project, 
or otherwise, as specified in the contract.  The contract may 
provide for repayment by the commissioner to the city of the 
principal amount or value of the advance in not more than ten 
annual installments, out of the trunk highway fund, beginning in 
the year the project is scheduled for completion in the highway 
work program.  The amount advanced is appropriated to the 
commissioner for the purposes in this section and must be repaid 
by the commissioner without interest, except that if it is 
demonstrated that the construction cost of a remote frontage 
road is less than the construction cost of a frontage road 
immediately adjacent to highway I-494, the commissioner may 
authorize payment in addition to the principal amount but not to 
exceed 100 percent of the project cost including interest.  The 
city shall apply the commissioner's payment to the interest on 
and costs of issuance and sale of bonds.  The cash agreed to be 
advanced by the city shall not affect the amount otherwise 
agreed to be paid by the city as its share of the cost of the 
project.  The contract may include all terms necessary to comply 
with laws relating to cooperative agreements between the 
commissioner of transportation and municipalities. 
    Subd. 2.  [BONDS AUTHORIZED.] At any time after a contract 
has been executed by the commissioner and the city of Richfield, 
in which the city agrees to advance to the commissioner cash for 
the purpose stated in subdivision 1, the city council may by 
resolution issue and sell general obligation bonds of the city 
in an aggregate amount not exceeding $35 million.  The bonds 
must be issued and sold in accordance with Minnesota Statutes, 
chapter 475, except that (1) an election is not required to 
authorize their issuance and (2) the bonds are not to be 
included in net debt within the meaning of Minnesota Statutes, 
section 475.51.  Money repaid to the city by the commissioner 
under the contract may be pledged for payment of principal of 
and interest on the bonds and must be credited by the city to a 
separate fund and used solely to pay principal of and interest 
on any bonds issued pursuant to this section.  With the consent 
of the commissioner of transportation, the city may use money 
allotted to it out of municipal state-aid street funds to repay 
interest on the bonds.  The money allotted to the city out of 
the municipal state-aid street funds may be pledged for payment 
of interest on the bonds. 
    Sec. 2.  [EFFECTIVE DATE.] 
    This act takes effect the day after approval by a majority 
of the members of the governing body of the city of Richfield 
and upon compliance with Minnesota Statutes, section 645.021, 
subdivision 3. 
    Presented to the governor May 23, 1991 
    Signed by the governor May 27, 1991, 11:04 p.m.