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                            CHAPTER 464-H.F.No. 3012 
                  An act relating to metropolitan government; providing 
                  for local zoning conformity in certain cases; 
                  modifying a certain levy limitation for the 
                  metropolitan council; allowing for distribution of 
                  funds from the tax base revitalization account to 
                  development authorities; providing for distribution of 
                  funds from the livable communities demonstration 
                  account; authorizing the metropolitan council to issue 
                  bonds and to transfer proceeds of certain bonds; 
                  requiring a transfer between certain accounts of the 
                  council; providing for metropolitan transportation 
                  investments; providing for a joint powers board for 
                  certain public housing purposes; providing for 
                  metropolitan airport matters; providing for airport 
                  noise impact relief; amending Minnesota Statutes 1994, 
                  sections 471.59, by adding a subdivision; 473.155, by 
                  adding a subdivision; 473.167, subdivision 2a; 
                  473.388, by adding a subdivision; 473.608, 
                  subdivisions 2, 6, 16, and by adding subdivisions; 
                  473.614, by adding a subdivision; 473.621, by adding a 
                  subdivision; and 473.661, subdivision 4; Minnesota 
                  Statutes 1995 Supplement, sections 473.167, 
                  subdivisions 2 and 3; 473.252; 473.391; and 473.704, 
                  subdivision 18; Laws 1989, chapter 279, section 7, 
                  subdivision 6; Laws 1995, chapter 255, article 3, 
                  section 2, subdivisions 1 and 4; and Laws 1995, 
                  chapter 265, article 1, section 4; proposing coding 
                  for new law in Minnesota Statutes, chapter 473; 
                  repealing Minnesota Statutes 1994, sections 473.1551, 
                  subdivision 2; 473.167, subdivision 5; 473.636; and 
                  473.637; Minnesota Statutes 1995 Supplement, section 
                  473.167, subdivision 3a. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                       METROPOLITAN COUNCIL AUTHORIZATION
           Section 1.  Minnesota Statutes 1994, section 471.59, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [JOINT POWERS BOARD FOR HOUSING.] (a) For 
        purposes of implementing a federal court order or decree, two or 
        more housing and redevelopment authorities, or public entities 
        exercising the public housing powers of housing and 
        redevelopment authorities, may by adoption of a joint powers 
        agreement that complies with the provisions of subdivisions 1 to 
        5, establish a joint board for the purpose of acquiring an 
        interest in, rehabilitating, constructing, owning, or managing 
        low-rent public housing located in the metropolitan area, as 
        defined in section 473.121, subdivision 2, and financed, in 
        whole or in part, with federal financial assistance under 
        Section 5 of the United States Housing Act of 1937.  The joint 
        board established pursuant to this subdivision shall: 
           (1) be composed of members designated by the governing 
        bodies of the governmental units which established such joint 
        board, and possess such representative and voting power provided 
        by the joint powers agreement; 
           (2) constitute a public body, corporate, and politic; and 
           (3) notwithstanding the provisions of subdivision 1, 
        requiring commonality of powers between parties to a joint 
        powers agreement, and solely for the purpose of acquiring an 
        interest in, rehabilitating, constructing, owning, or managing 
        federally financed low-rent public housing, shall possess all of 
        the powers and duties contained in sections 469.001 to 469.047 
        and, if at least one participant is an economic development 
        authority, sections 469.090 to 469.1081, except (i) as may be 
        otherwise limited by the terms of the joint powers agreement; 
        and (ii) a joint board shall not have the power to tax pursuant 
        to section 469.033, subdivision 6, or 469.107, nor shall it 
        exercise the power of eminent domain.  Every joint powers 
        agreement establishing a joint board shall specifically provide 
        which and under what circumstances the powers granted herein may 
        be exercised by that joint board. 
           (b) If a housing and redevelopment authority exists in a 
        city which intends to participate in the creation of a joint 
        board pursuant to paragraph (a), such housing and redevelopment 
        authority shall be the governmental unit which enters into the 
        joint powers agreement unless it determines not to do so, in 
        which event the governmental entity which enters into the joint 
        powers agreement may be any public entity of that city which 
        exercises the low-rent public housing powers of a housing and 
        redevelopment authority.  
           (c) A joint board shall not make any contract with the 
        federal government for low-rent public housing, unless the 
        governing body or bodies creating the participating authority in 
        whose jurisdiction the housing is located has, by resolution, 
        approved the provision of that low-rent public housing. 
           (d) This subdivision does not apply to any housing and 
        redevelopment authority, or public entity exercising the powers 
        of a housing and redevelopment authority, within the 
        jurisdiction of a county housing and redevelopment authority 
        which is actively carrying out a public housing program under 
        Section 5 of the United States Housing Act of 1937.  For 
        purposes of this paragraph, a county housing and redevelopment 
        authority is considered to be actively carrying out a public 
        housing program under Section 5 of the United States Housing Act 
        of 1937, if it (1) owns 200 or more public housing units 
        constructed under Section 5 of the United States Housing Act of 
        1937, and (2) has applied for public housing development funds 
        under Section 5 of the United States Housing Act of 1937, during 
        the three years immediately preceding January 1, 1996. 
           (e) For purposes of sections 469.001 to 469.047, "city" 
        means the city in which the housing units with respect to which 
        the joint board was created are located and "governing body" or 
        "governing body creating the authority" means the council of 
        such city. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        473.167, subdivision 2, is amended to read: 
           Subd. 2.  [LOANS FOR ACQUISITION.] (a) The council may make 
        loans to counties, towns, and statutory and home rule charter 
        cities within the metropolitan area for the purchase of property 
        within the right-of-way of a state trunk highway shown on an 
        official map adopted pursuant to section 394.361 or 462.359 or 
        for the purchase of property within the proposed right-of-way of 
        a principal or intermediate arterial highway designated by the 
        council as a part of the metropolitan highway system plan and 
        approved by the council pursuant to subdivision 1.  The loans 
        shall be made by the council, from the fund established pursuant 
        to this subdivision, for purchases approved by the council.  The 
        loans shall bear no interest. 
           (b) The council shall make loans only: 
           (1) to accelerate the acquisition of primarily undeveloped 
        property when there is a reasonable probability that the 
        property will increase in value before highway construction, and 
        to update an expired environmental impact statement on a project 
        for which the right-of-way is being purchased; 
           (2) to avert the imminent conversion or the granting of 
        approvals which would allow the conversion of property to uses 
        which would jeopardize its availability for highway 
        construction; or 
           (3) to advance planning and environmental activities on 
        highest priority major metropolitan river crossing projects, 
        under the transportation development guide chapter/policy plan; 
        or 
           (4) to take advantage of open market opportunities when 
        developed properties become available for sale, provided all 
        parties involved are agreeable to the sale and funds are 
        available.  
           (c) The council shall not make loans for the purchase of 
        property at a price which exceeds the fair market value of the 
        property or which includes the costs of relocating or moving 
        persons or property.  The eminent domain process may be used to 
        settle differences of opinion as to fair market value, provided 
        all parties agree to the process. 
           (d) A private property owner may elect to receive the 
        purchase price either in a lump sum or in not more than four 
        annual installments without interest on the deferred 
        installments.  If the purchase agreement provides for 
        installment payments, the council shall make the loan in 
        installments corresponding to those in the purchase agreement.  
        The recipient of an acquisition loan shall convey the property 
        for the construction of the highway at the same price which the 
        recipient paid for the property.  The price may include the 
        costs of preparing environmental documents that were required 
        for the acquisition and that were paid for with money that the 
        recipient received from the loan fund.  Upon notification by the 
        council that the plan to construct the highway has been 
        abandoned or the anticipated location of the highway changed, 
        the recipient shall sell the property at market value in 
        accordance with the procedures required for the disposition of 
        the property.  All rents and other money received because of the 
        recipient's ownership of the property and all proceeds from the 
        conveyance or sale of the property shall be paid to the 
        council.  If a recipient is not permitted to include in the 
        conveyance price the cost of preparing environmental documents 
        that were required for the acquisition, then the recipient is 
        not required to repay the council an amount equal to 40 percent 
        of the money received from the loan fund and spent in preparing 
        the environmental documents.  
           (e) The proceeds of the tax authorized by subdivision 3 and 
        distributed to the right-of-way acquisition loan fund pursuant 
        to subdivision 3a, paragraph (a), all money paid to the council 
        by recipients of loans, and all interest on the proceeds and 
        payments shall be maintained as a separate fund.  For 
        administration of the loan program, the council may expend from 
        the fund each year an amount no greater than three percent of 
        the amount of the proceeds distributed to the right-of-way 
        acquisition loan fund pursuant to subdivision 3a, paragraph (a), 
        for that year. 
           Sec. 3.  Minnesota Statutes 1994, section 473.167, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [HARDSHIP ACQUISITION AND RELOCATION.] (a) The 
        council may make hardship loans to acquiring authorities within 
        the metropolitan area to purchase homestead property located in 
        a proposed state trunk highway right-of-way or project, and to 
        provide relocation assistance.  Acquiring authorities are 
        authorized to accept the loans and to acquire the property. 
        Except as provided in this subdivision, the loans shall be made 
        as provided in subdivision 2.  Loans shall be in the amount of 
        the appraised fair market value of the homestead property plus 
        relocation costs and less salvage value.  Before construction of 
        the highway begins, the acquiring authority shall convey the 
        property to the commissioner of transportation at the same price 
        it paid, plus relocation costs and less its salvage value. 
        Acquisition and assistance under this subdivision must conform 
        to sections 117.50 to 117.56.  
           (b) The council may make hardship loans only when: 
           (1) the owner of affected homestead property requests 
        acquisition and relocation assistance from an acquiring 
        authority; 
           (2) federal or state financial participation is not 
        available; 
           (3) the owner is unable to sell the homestead property at 
        its appraised market value because the property is located in a 
        proposed state trunk highway right-of-way or project as 
        indicated on an official map or plat adopted under section 
        160.085, 394.361, or 462.359; 
           (4) the appraisal of council agrees to and approves the 
        fair market value of the homestead property has been approved by 
        the council.  The council's, which approval shall not be 
        unreasonably withheld; and 
           (5) the owner of the homestead property is burdened by 
        circumstances that constitute a hardship, such as catastrophic 
        medical expenses; a transfer of the homestead owner by the 
        owner's employer to a distant site of employment; or inability 
        of the owner to maintain the property due to physical or mental 
        disability or the permanent departure of children from the 
        homestead.  
           (c) For purposes of this subdivision, the following terms 
        have the meanings given them. 
           (1) "Acquiring authority" means counties, towns, and 
        statutory and home rule charter cities in the metropolitan area. 
           (2) "Homestead property" means a single-family dwelling 
        occupied by the owner, and the surrounding land, not exceeding a 
        total of ten acres. 
           (3) "Salvage value" means the probable sale price of the 
        dwelling and other property that is severable from the land if 
        offered for sale on the condition that it be removed from the 
        land at the buyer's expense, allowing a reasonable time to find 
        a buyer with knowledge of the possible uses of the property, 
        including separate use of serviceable components and scrap when 
        there is no other reasonable prospect of sale. 
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        473.167, subdivision 3, is amended to read: 
           Subd. 3.  [TAX.] The council may levy a tax on all taxable 
        property in the metropolitan area, as defined in section 
        473.121, to provide funds for loans made pursuant to 
        subdivisions 2 and 2a and for the tax base revitalization 
        account in the metropolitan livable communities fund, 
        established under section 473.251.  This tax for the 
        right-of-way acquisition loan fund and the tax base 
        revitalization account shall be certified by the council, 
        levied, and collected in the manner provided by section 473.13.  
        The tax shall be in addition to that authorized by section 
        473.249 and any other law and shall not affect the amount or 
        rate of taxes which may be levied by the council or any 
        metropolitan agency or local governmental unit.  The amount of 
        the levy shall be as determined and certified by the council., 
        provided that the property tax levied by the metropolitan 
        council for the right-of-way acquisition loan fund and the tax 
        base revitalization account shall not exceed the following 
        amount for the years specified: 
           (a) for taxes payable in 1988, the product of 5/100 of one 
        mill multiplied by the total assessed valuation of all taxable 
        property located within the metropolitan area as adjusted by the 
        provisions of Minnesota Statutes 1986, sections 272.64; 273.13, 
        subdivision 7a; and 275.49; 
           (b) for taxes payable in 1989, except as provided in 
        section 473.249, subdivision 3, the product of (1) the 
        metropolitan council's property tax levy limitation for the 
        right-of-way acquisition loan fund for the taxes payable year 
        1988 determined under clause (a) multiplied by (2) an index for 
        market valuation changes equal to the assessment year 1988 total 
        market valuation of all taxable property located within the 
        metropolitan area divided by the assessment year 1987 total 
        market valuation of all taxable property located within the 
        metropolitan area; 
           (c) for taxes payable in 1990, an amount not to exceed 
        $2,700,000; and 
           (d) for taxes payable in 1991 and subsequent years, the 
        product of (1) the metropolitan council's property tax levy 
        limitation for the right-of-way acquisition loan fund under this 
        subdivision for the taxes payable in 1988 determined under 
        clause (a) 1997 multiplied by (2) an index for market valuation 
        changes equal to the total market valuation of all taxable 
        property located within the metropolitan area for the current 
        taxes payable year divided by the total market valuation of all 
        taxable property located within the metropolitan area for taxes 
        payable in 1988 1997. 
           For the purpose of determining the metropolitan council's 
        property tax levy limitation for the right-of-way acquisition 
        loan fund and tax base revitalization account in the 
        metropolitan livable communities fund, under section 473.251, 
        for the taxes payable year 1988 and subsequent years under this 
        subdivision, "total market valuation" means the total market 
        valuation of all taxable property within the metropolitan area 
        without valuation adjustments for fiscal disparities (chapter 
        473F), tax increment financing (sections 469.174 to 469.179), 
        and high voltage transmission lines (section 273.425). 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        473.252, is amended to read: 
           473.252 [TAX BASE REVITALIZATION ACCOUNT.] 
           Subdivision 1.  [DEFINITION.] For the purposes of this 
        section, "municipality" means a statutory or home rule charter 
        city or town participating in the local housing incentives 
        program under section 473.254, or a county in the metropolitan 
        area.  
           Subd. 1a.  [DEVELOPMENT AUTHORITY.] "Development authority" 
        means a statutory or home rule charter city, housing and 
        redevelopment authority, economic development authority, and a 
        port authority. 
           Subd. 2.  [SOURCES OF FUNDS.] The council shall credit to 
        the tax base revitalization account within the fund the amount, 
        if any, provided for under section 473.167, subdivision 3a, 
        paragraph (b) 4, and the amount, if any, distributed to the 
        council under section 473F.08, subdivision 3b. 
           Subd. 3.  [DISTRIBUTION OF FUNDS.] (a) The council must use 
        the funds in the account to make grants to municipalities or 
        development authorities for the cleanup of polluted land in the 
        metropolitan area.  A grant to a metropolitan county or a 
        development authority must be used for a project in a 
        participating municipality.  The council shall prescribe and 
        provide the grant application form to municipalities.  The 
        council must consider the probability of funding from other 
        sources when making grants under this section. 
           (b)(1) The legislature expects that applications for grants 
        will exceed the available funds and the council will be able to 
        provide grants to only some of the applicant municipalities.  If 
        applications for grants for qualified sites exceed the available 
        funds, the council shall make grants that provide the highest 
        return in public benefits for the public costs incurred, that 
        encourage commercial and industrial development that will lead 
        to the preservation or growth of living-wage jobs and that 
        enhance the tax base of the recipient municipality. 
           (2) In making grants, the council shall establish regular 
        application deadlines in which grants will be awarded from the 
        available money in the account.  If the council provides for 
        application cycles of less than six-month intervals, the council 
        must reserve at least 40 percent of the receipts of the account 
        for a year for application deadlines that occur in the second 
        half of the year.  If the applications for grants exceed the 
        available funds for an application cycle, no more than one-half 
        of the funds may be granted to projects in a statutory or home 
        rule charter city and no more than three-quarters of the funds 
        may be granted to projects located in cities of the first class. 
           (c) A municipality may use the grant to provide a portion 
        of the local match requirement for project costs that qualify 
        for a grant under sections 116J.551 to 116J.557. 
           Subd. 4.  [TAX.] The council may levy a tax on all taxable 
        property in the metropolitan area, as defined in section 
        473.121, to provide funds for the tax base revitalization 
        account in the metropolitan livable communities fund.  This tax 
        for the tax base revitalization account shall be certified by 
        the council, levied, and collected in the manner provided by 
        section 473.13.  The tax shall be in addition to that authorized 
        by section 473.249 and any other law and shall not affect the 
        amount or rate of taxes which may be levied by the council or 
        any metropolitan agency or local governmental unit. 
           The amount of the levy shall be as determined and certified 
        by the council, provided that the tax levied by the metropolitan 
        council for the tax base revitalization account shall not exceed 
        the product of (1) the metropolitan council's levy for the tax 
        base revitalization account under section 473.167, subdivision 
        3, for taxes payable in 1997 multiplied by (2) an index for 
        market valuation changes equal to the total market valuation of 
        all taxable property located within the metropolitan area for 
        the current taxes payable year divided by the total market 
        valuation of all taxable property located within the 
        metropolitan area for taxes payable in 1997. 
           For the purpose of determining the metropolitan council's 
        property tax levy limitation for the tax base revitalization 
        account, "total market valuation" means the total market 
        valuation of all taxable property within the metropolitan area 
        without valuation adjustments for fiscal disparities (chapter 
        473F), tax increment financing (sections 469.174 to 469.179), 
        and high voltage transmission lines (section 273.425). 
           Subd. 5.  [STATE REVIEW.] The commissioner of revenue shall 
        certify the council's levy limitation under this section to the 
        council by August 1 of the levy year.  The council must certify 
        its proposed property tax levy to the commissioner of revenue by 
        September 1 of the levy year.  The commissioner of revenue shall 
        annually determine whether the property tax for the tax base 
        revitalization account certified by the metropolitan council for 
        levy following the adoption of its proposed budget is within the 
        levy limitation imposed by this section.  The determination must 
        be completed prior to September 10 of each year.  If current 
        information regarding market valuation in any county is not 
        transmitted to the commissioner in a timely manner, the 
        commissioner may estimate the current market valuation within 
        that county for purposes of making the calculation. 
           Sec. 6.  Minnesota Statutes 1995 Supplement, section 
        473.704, subdivision 18, is amended to read: 
           Subd. 18.  The commission may establish a research program 
        to evaluate the effects of control programs on other fauna.  The 
        purpose of the program is to identify the types and magnitude of 
        the adverse effects of the control program on fish and wildlife 
        and associated food chain invertebrates.  The commission may 
        conduct research through contracts with qualified outside 
        researchers.  The commission may finance the research program 
        each year at a level up to 2.5 percent of its annual budget, 
        until December 31, 1995. 
           Sec. 7.  [ISSUANCE OF BONDS OR NOTES FOR ACQUISITION OF 
        PROPERTY.] 
           Subdivision 1.  [BONDS; LOANS.] The council may borrow 
        money or by resolution authorize the issuance of general 
        obligation bonds or notes for the acquisition of qualifying real 
        property located within Hennepin county which the council 
        determines is necessary for the proposed north-south runway 
        expansion of the Minneapolis-St. Paul International Airport.  
        For purposes of this subdivision, "qualifying real property" 
        means all or part of (1) the met center property as identified 
        in Minnesota Statutes, section 473.551, subdivision 12; or (2) 
        property located in the tax increment financing district 
        designated as tax increment financing district No. 1-G with 
        boundaries consisting of a 31.9 acre parcel known as the Kelly 
        property.  
           Subd. 2.  [PROCEDURE.] The bonds or notes shall be sold, 
        issued, and secured in the manner provided in Minnesota 
        Statutes, chapter 475, and the council shall have the same 
        powers and duties as a municipality issuing bonds under that 
        chapter, except that no election shall be required and the net 
        debt limitations in Minnesota Statutes, chapter 475, shall not 
        apply to such bonds or notes.  The obligations are not a debt of 
        the state or any other municipality or political subdivision 
        within the meaning of any debt limitation or requirement 
        pertaining to those entities.  The bonds or notes may be sold at 
        any price and at a public or private sale as determined by the 
        council.  The obligations may be secured by taxes levied without 
        limitation of rate or amount upon all taxable property in the 
        metropolitan area.  
           Subd. 3.  [COST SHARING; DISPOSITION OF PROPERTY.] The 
        council may enter into agreements with the metropolitan airports 
        commission, any municipality in the metropolitan area, and any 
        corporation, public or private, to share the costs of acquiring 
        any real property which the council determines is necessary for 
        any proposed expansion of the Minneapolis-St. Paul International 
        Airport.  If the council acquires real property pursuant to 
        subdivision 2 and Minnesota Statutes, section 473.129, 
        subdivision 7, which it subsequently determines is not needed 
        for the expansion of the airport, the real property shall be 
        sold in accordance with the council's procedures and the 
        proceeds from the sale of the real property shall be used for 
        debt service or retirement of any bonds or notes issued pursuant 
        to subdivision 2.  
           Sec. 8.  [BLOOMINGTON; TAX INCREMENT.] 
           Subdivision 1.  [PUBLIC PURPOSE.] In 1985, the port 
        authority of the city of Bloomington established a redevelopment 
        tax increment financing district designated as tax increment 
        financing district No. 1-G with boundaries consisting of a 31.9 
        acre parcel known as the Kelly property located at the northeast 
        quadrant of 24th Avenue and East Old Shakopee Road in the city 
        of Bloomington with the intention of financing certain 
        redevelopment costs, including selected public improvements 
        within the airport south industrial development district.  The 
        Kelly property was conveyed to the Mall of America Company by 
        the port authority of the city of Bloomington, pursuant to the 
        restated contract dated May 31, 1988, by and between the city of 
        Bloomington, port authority of the city of Bloomington, and Mall 
        of America Company, subject to the condition that the Mall of 
        America Company commence construction of a subsequent phase of 
        the Mall of America project on the site no later than 2002.  If 
        the Mall of America Company fails to commence construction of a 
        subsequent phase of development on the Kelly property by 2002, 
        ownership of the property reverts to the port authority of the 
        city of Bloomington.  The Minneapolis-St. Paul International 
        Airport long-term comprehensive plan proposes construction of a 
        north-south runway to guaranty future operation of the airport 
        in a safe, efficient manner.  Public acquisition of the Kelly 
        property by the metropolitan airports commission will be 
        required to facilitate construction of the north-south runway.  
           Subd. 2.  [AUTHORIZATION.] The port authority of the city 
        of Bloomington may amend the redevelopment tax increment 
        financing district consisting of the Kelly property so that it 
        shall, instead, consist of the met center property as identified 
        in Minnesota Statutes, section 473.551, subdivision 12, upon 
        satisfaction of the following conditions precedent:  
           (1) sale of the met center property from the metropolitan 
        council or a metropolitan agency to the Mall of America Company 
        or an entity comprising at least one partner of the Mall of 
        America Company or an affiliate of such partner; 
           (2) approval by the city of Bloomington, port authority of 
        the city of Bloomington, and Mall of America Company of 
        amendments to the restated contract dated May 31, 1988, which 
        transfer development rights and contract obligations from the 
        Kelly property to the met center property; 
           (3) approval by the Minnesota environmental quality board 
        of an environmental impact statement for the met center property 
        and approval by the Minnesota pollution control agency of an 
        indirect source permit for the met center property; 
           (4) approval by the city of Bloomington and port authority 
        of the city of Bloomington of a final development plan for the 
        met center property; 
           (5) an agreement by the owner-developer of the met center 
        property, in a form satisfactory to the city of Bloomington and 
        port authority of the city of Bloomington, to dedicate to the 
        city of Bloomington land for rights-of-way and other public 
        improvements required for a subsequent phase of the Mall of 
        America project on the met center property; 
           (6) the metropolitan airports commission and the Mall of 
        America Company have either: 
           (i) entered into a purchase agreement for the sale of the 
        Kelly property; or 
           (ii) agreed, in writing, to pay compensation based on the 
        existing development rights for the use of the Kelly property in 
        an amount not to exceed the total cost of acquiring the met 
        center property; and 
           (7) an agreement by the Mall of America Company not to sue 
        or claim any damages against either the city of Bloomington or 
        port authority of the city of Bloomington arising out of 
        rezoning of the Kelly property pursuant to Minnesota Statutes, 
        sections 360.061 to 360.074, or an amendment to the 
        comprehensive plan of the city of Bloomington relating to the 
        Kelly property.  
        The requirements of Minnesota Statutes, section 469.175, 
        subdivision 4, do not apply to modification of the plan to 
        provide for the substitution of legal descriptions authorized 
        hereby.  The original net tax capacity of the district shall be 
        recertified in accordance with Minnesota Statutes, section 
        469.177, subdivision 1, upon amendment of the geographic 
        boundaries of the district.  The district shall continue in 
        existence from its original date of creation and the amendment 
        of the geographic boundaries of the district and recertification 
        of original net tax capacity of the district shall not cause the 
        application to the district of any provisions of law which would 
        not otherwise be applicable to the district. 
           Subd. 3.  [SPECIAL RULES.] (a) Tax increment may not be 
        captured by the port authority from the tax increment financing 
        district on the met center property after December 31 of the 
        year in which tax increments, assessments, and other revenues 
        from the district and the accumulated increments from the 
        district consisting of the Kelly property exceed the permitted 
        expenditures under paragraph (d).  The provisions of this 
        paragraph apply beginning with the first calendar year after the 
        conditions precedent in subdivision 2 are satisfied and 
        construction has begun on improvements on the met center site. 
        No increments may, in any event, be collected from the tax 
        increment financing district on the met center site after 
        December 31, 2018. 
           (b) The provisions of Minnesota Statutes, section 273.1399, 
        do not apply to the tax increment financing district on the met 
        center property. 
           (c) The governing body of the city of Bloomington must 
        elect the method of computation of tax increment specified in 
        Minnesota Statutes, section 469.177, subdivision 3, paragraph 
        (b), in the tax increment financing district on the met center 
        property. 
           (d) Tax increments, assessments, and other revenues derived 
        from the tax increment district on the met center property and 
        any accumulated tax increments from the tax increment financing 
        district on the Kelly property may be used to finance only the 
        following: 
           (1) amounts that the city or port authority must pay to 
        reimburse or otherwise pay the developer for public improvements 
        because of counted value resulting from investment in property 
        at the met center site under section 9.2(05) of the restated 
        contract for purchase and private redevelopment of land, by and 
        among the city of Bloomington, the port authority of the city of 
        Bloomington, and the Mall of America Company, dated May 31, 
        1988; 
           (2) interest and other financing costs the city or port 
        authority pays or incurs on, but that are not included in, the 
        amounts under clause (1); 
           (3) interest and principal on qualified bonds to the extent 
        that other available revenues and increments from other sources 
        that are pledged to pay the bonds are insufficient.  In 
        determining whether other available revenues or increments are 
        insufficient, spending of these revenues for only the following 
        items reduce available revenues (all other revenues are deemed 
        to be available): 
           (A) payment of debt service on bonds and obligations issued 
        and sold before March 31, 1996; 
           (B) payments under binding written contracts in effect on 
        March 31, 1996, to which the increments or other revenues are 
        pledged; and 
           (C) reasonable administrative expenses, subject to the 
        limits under Minnesota Statutes, section 469.176, subdivision 3; 
        and 
           (4) reasonable administrative expenses as provided under 
        Minnesota Statutes, sections 469.174 to 469.178.  The amounts 
        permitted under clauses (1) and (2) must be used to determine 
        the limit or administrative expenses under Minnesota Statutes, 
        section 469.176, subdivision 3. 
           For the purposes of paragraph (d), "qualified bonds" means: 
           (i) bonds or other obligations issued and sold before March 
        31, 1996, to which increments from the tax increment financing 
        district consisting of the Kelly property are pledged; and 
           (ii) bonds or other obligations that refund bonds described 
        in (i), if the refunding bonds do not increase the present value 
        of the debt service payments secured by the increments and are 
        secured by a pledge of the same increments and other revenues as 
        secured by the bonds to be refunded. 
           For purposes of determining the qualifying ratio percent 
        for counted value under the formula in section 9.2(05) of the 
        restated contract under clause (1), investment in property at 
        the met center site is deemed to be after or in addition to all 
        the investment at other sites covered by the restated contract.  
           Subd. 4.  [ACQUISITION OF PROPERTY.] Notwithstanding any 
        law to the contrary, the metropolitan airports commission is 
        authorized to acquire or purchase the Kelly property consistent 
        with the public purpose set forth in this law.  This may be 
        accomplished by an exchange of land, purchase of development 
        rights, acquisition of easements, or other method to be 
        negotiated with the landowner or by outright purchase or 
        exercise of eminent domain, if necessary. 
           Subd. 5.  [LIMITATION ON USE OF TAX INCREMENT.] If the port 
        authority of the city of Bloomington amends the redevelopment 
        tax increment financing district from the Kelly property to the 
        met center property, the owner of the met center property shall 
        be bound by the limitations on public reimbursement for 
        qualified public improvements as set forth in section 9.2(05) of 
        the restated contract dated May 31, 1988, by and between the 
        city of Bloomington, port authority of the city of Bloomington, 
        and Mall of America Company. 
           Sec. 9.  [TRANSFER.] 
           Subdivision 1.  Notwithstanding Minnesota Statutes, section 
        473.167, the council may transfer a portion of the proceeds in 
        the right-of-way acquisition loan fund to the planning 
        assistance grant and loan program provided in Minnesota 
        Statutes, section 473.867.  To provide additional funds for the 
        planning assistance grant and loan program authorized in 
        Minnesota Statutes, section 473.867, the metropolitan council 
        may transfer up to $1,000,000 of the proceeds of solid waste 
        bonds issued by the council under Minnesota Statutes, section 
        473.831, before its repeal.  By 2008, the council shall repay 
        any amount transferred from the right-of-way acquisition loan 
        fund using the proceeds of the tax authorized in Minnesota 
        Statutes, section 473.249.  
           Subd. 2.  In 1997, the council must use $200,000 of any 
        amount transferred in subdivision 1 to make grants of not more 
        than $20,000 each to municipalities for technical assistance to 
        prepare a growth management strategy as part of the 
        municipality's comprehensive plan.  A growth management strategy 
        may include principles such as:  preservation of undeveloped 
        open spaces for agricultural production, recreational use, and 
        scenic enjoyment; creation of cohesive neighborhoods to 
        establish local identity and community interaction; physical 
        integration of natural open spaces, neighborhoods, and other 
        districts in a manner that creates the highest and best value of 
        all land in the community; and the establishment of a phasing 
        plan to guide reasonable, incremental development of the 
        community.  Municipalities may apply for the grants in 
        partnership with other municipalities or with a county.  For the 
        purposes of this subdivision "municipality" means any city or 
        town in the metropolitan area as defined in Minnesota Statutes, 
        section 473.121. 
           Sec. 10.  [ACQUISITION OF THE MET CENTER PROPERTY.] 
           Notwithstanding anything to the contrary in sections 7 to 
        14, the authority granted to acquire real property shall not 
        authorize acquisition of the met center property, as defined in 
        Minnesota Statutes, section 473.551, subdivision 12, by eminent 
        domain. 
           Sec. 11.  [ST. LOUIS PARK TIF; STATE AID OFFSET.] 
           Subdivision 1.  [COMPUTATION OF AID OFFSET.] If the City of 
        St. Louis Park elects to extend the duration of the Excelsior 
        Boulevard Redevelopment Project under Laws 1995, chapter 264, 
        article 5, section 36, and if the city receives a grant under 
        section 473.253 for use within the project, the state aid 
        reduction required by Minnesota Statutes, section 469.1782, 
        subdivision 1, must be computed as provided in this section.  
        The reduction in state tax increment financing aid under 
        Minnesota Statutes, section 273.1399 must be computed using 70 
        percent of the captured tax capacity of the district for the 
        years in which the extension applies. 
           Subd. 2.  [EFFECTIVE DATE.] This section is effective the 
        day following final enactment without local approval. 
           Sec. 12.  [REPEALER.] 
           (a) Minnesota Statutes 1994, section 473.167, subdivision 
        5, is repealed. 
           (b) Minnesota Statutes 1995 Supplement, section 473.167, 
        subdivision 3a, is repealed. 
           Sec. 13.  [APPLICATION.] 
           Sections 2 to 7, 9, and 12 apply in the counties of Anoka, 
        Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Sections 4 and 5, subdivisions 2, 4, and 5, are effective 
        for taxes levied in 1997, payable in 1998 and subsequent years.  
        Section 12, paragraph (b), is effective January 1, 1998. 
           Section 8 is effective upon compliance by the governing 
        body of the port authority of the city of Bloomington and the 
        governing body of the city of Bloomington with Minnesota 
        Statutes, section 645.021, subdivision 2. 
           The remainder of this article is effective the day 
        following final enactment. 
                                   ARTICLE 2
                   METROPOLITAN TRANSPORTATION INVESTMENT ACT
           Section 1.  [473.1465] [TRANSPORTATION POLICY.] 
           Subdivision 1.  [DEFINITION.] For the purposes of this 
        section and section 473.1466 "commuting area" means the 
        metropolitan area and counties outside the metropolitan area in 
        which five percent or more of the residents commute to 
        employment in the metropolitan area. 
           Subd. 2.  [REVISED TRANSPORTATION POLICY PLAN.] The 
        metropolitan council shall adopt, after appropriate public 
        comment, a revised transportation policy plan that: 
           (1) is consistent with state law and council policy; 
           (2) identifies and summarizes issues concerning commuting 
        into and out of the seven-county area from the commuting area; 
           (3) integrates and maximizes the efficiencies and 
        effectiveness of all modes of transportation in the region; and 
           (4) reflects and does not exceed current available 
        resources. 
           The council shall adopt the revised transportation policy 
        plan by December 31, 1996. 
           Subd. 3.  [PROJECT EVALUATION.] As part of developing the 
        revised transportation policy plan, the council shall evaluate 
        all proposed and pending transportation projects that are 
        subject to council review and report to the legislature the 
        results of council's evaluation. 
           Sec. 2.  [473.1466] [PERFORMANCE AUDIT.] 
           In 1997 and every four years thereafter, the council shall 
        provide for an independent entity selected through a request for 
        proposal process conducted nationwide to do a performance audit 
        of the commuting area's transportation system as a whole.  The 
        performance audit must evaluate the commuting area's ability to 
        meet the region's needs for effective and efficient 
        transportation of goods and people, evaluate future trends and 
        their impacts on the region's transportation system, and make 
        recommendations for improving the system.  The performance audit 
        must recommend performance-funding measures.  In 1997 and every 
        two years thereafter, the council must evaluate the performance 
        of the metropolitan transit system's operation in relationship 
        to the regional transit performance standards developed by the 
        council. 
           Sec. 3.  [473.3875] [TRANSIT FOR LIVABLE COMMUNITIES.] 
           The council shall establish a transit for livable 
        communities demonstration program fund.  The council shall adopt 
        guidelines for selecting and evaluating demonstration projects 
        for funding.  The selection guidelines must include provisions 
        evaluating projects: 
           (1) interrelating development or redevelopment and transit; 
           (2) interrelating affordable housing and employment growth 
        areas; 
           (3) helping intensify land use that leads to more compact 
        development or redevelopment; 
           (4) coordinating school transportation and public transit 
        service; 
           (5) implementing recommendations of the transit redesign 
        plan; or 
           (6) otherwise promoting the goals of the metropolitan 
        livable communities act. 
           Sec. 4.  Minnesota Statutes 1994, section 473.388, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [SERVICE INCENTIVE.] A replacement transit 
        service shall receive an additional two percent of available 
        local transit funds, as defined in subdivision 4, if the service 
        increased its ridership for trips that originate outside of the 
        replacement transit service's member communities and serve the 
        employment centers in those communities by at least five percent 
        from the previous year, provided the service operates within 
        regional performance standards.  A replacement transit service 
        that is receiving the maximum amount of available local transit 
        funds may receive up to two percent over the maximum amount set 
        in subdivision 4 if it increases its ridership as provided in 
        this subdivision.  The additional funding received under this 
        subdivision may be reserved by the replacement transit service 
        for future use. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        473.391, is amended to read: 
           473.391 [ROUTE PLANNING AND SCHEDULING.] 
           Subdivision 1.  [CONTRACTS.] The council may contract with 
        other operators or local governments for route planning and 
        scheduling services in any configuration of new or 
        reconfiguration of existing transit services and routes, 
        including route planning and scheduling necessary for the test 
        marketing program, the service bidding program, and the 
        interstate highway described generally as legislative routes 
        Nos. 10 and 107 between I-494 and the Hawthorne interchange in 
        the city of Minneapolis, commonly known as I-394.  
           Subd. 2.  [ROUTE ELIMINATION; SERVICE REDUCTION.] The 
        council shall, before making a determination to eliminate or 
        reduce service on existing transit routes, consider: 
           (1) the level of subsidy per passenger on each route; 
           (2) the availability and proximity of alternative transit 
        routes; and 
           (3) the percentage of transit dependent riders, including 
        youth, elderly, low-income, and disabled riders currently using 
        each route. 
           Sec. 6.  Laws 1995, chapter 265, article 1, section 4, is 
        amended to read: 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective upon metropolitan council 
        approval of plans presented by the commissioner to: 
           (1) construct one additional lane on each roadway of I-394 
        at or near its interchange with Penn Avenue; 
           (2) preserve the existence of an additional lane eastbound 
        between Penn Avenue and the Dunwoody Boulevard exit; 
           (3) erect noise barriers adjacent to the westbound roadway 
        of the highway continuously between Wirth Parkway and Penn 
        Avenue the east end of bridge No. 27770, and on the eastbound 
        roadway of the highway continuously between Madeira Avenue and 
        Wirth Parkway, and extend the existing noise barriers easterly 
        of France Avenue, all with the consent of all affected owners of 
        commercial property; 
           (4) adopt a goal of achieving an average occupancy rate on 
        the highway of 1.6 persons per vehicle by 2000, and implement a 
        five-year program in cooperation with the council intended to 
        achieve that goal by, among other means, significantly 
        increasing the use of high-occupancy lanes on the highway and 
        the use of other roadways; 
           (5) develop and implement, jointly with the commissioner of 
        public safety, a plan and program for (i) enforcement of speed 
        limits and other traffic laws and high-occupancy lane 
        restrictions and the minimizing of late merging of traffic onto 
        the eastbound highway, and (ii) demonstration of increased 
        information and education through changeable message signs and 
        the use of electronic detection to identify and warn traffic law 
        violators; and 
           (6) ensure that the highway has a bituminous surface and 
        HOV lanes are ground or milled between June Avenue in Golden 
        Valley and the highway's intersection with marked interstate 
        highway No. 94 in Minneapolis the west end of the bridge 
        approach to bridge No. 27770 or has a bituminous surface on the 
        mixed use lanes within the same limits. 
           Sec. 7.  [BEST PRACTICES REPORT.] 
           The legislative audit commission is requested to direct the 
        legislative auditor to prepare and submit to the legislature by 
        December 1, 1996, a best practices report on cooperative and 
        integrated transit services that are effective and efficient.  
        To the extent available, the report must include information on 
        best practices for regular route public transit service, transit 
        that links jobs and housing, integrating private transit 
        services with public transit services, and integrating school 
        transportation with public transit services. 
           Sec. 8.  [METROPOLITAN TRANSIT REDESIGN.] 
           Subdivision 1.  [1997 PLAN.] The metropolitan council shall 
        present to the 1997 legislature a status report on the 
        implementation plan for improved transit service for the 
        region.  The plan must be developed with the assistance of an 
        advisory committee established by the council.  At a minimum, 
        the plan must: 
           (1) utilize community-based transit services; 
           (2) encourage local initiatives for improved transit 
        service; 
           (3) encourage coordination of various public transit 
        services and private, for-profit, and nonprofit transit services 
        that do not receive transit subsidies from the council; 
           (4) establish performance measures that further transit 
        goals for the region that are consistent with and promote the 
        policies of the Regional Blueprint and the metropolitan livable 
        communities act; and 
           (5) include an operating and capital budget projection for 
        the biennium ending June 30, 1999. 
           Subd. 2.  [ADVISORY COMMITTEE.] The council shall utilize 
        an advisory committee to assist the council in preparing the 
        plan required under subdivision 1.  Members of the committee 
        must represent local community interests.  Members of the 
        advisory committee shall serve without compensation but may be 
        reimbursed by the council for reasonable expenses. 
           Sec. 9.  [STUDY; PAYING FOR NEW GROWTH.] 
           The metropolitan council shall identify means of insuring 
        that new development pays the costs associated with the new 
        development, including, but not limited to, the costs of 
        infrastructure to accommodate the new development and the 
        present value of services provided by public entities.  The 
        council shall report its findings to the legislature by February 
        1, 1997. 
           Sec. 10.  [PERFORMANCE MEASURES TO BE MET.] 
           Subdivision 1.  [METROPOLITAN COUNCIL.] If the metropolitan 
        council is appropriated money from the general fund for public 
        transit operations for fiscal year 1997, 1.5 percent shall be 
        made available to the council after June 1, 1997, only if the 
        commissioner of finance determines that metropolitan council 
        transit operations passengers per revenue hour productivity has 
        increased in a one-year period between the effective date of 
        this section and June 1, 1997.  Another 1.5 percent shall be 
        made available to the council after June 1, 1997, only if the 
        commissioner of finance determines that metropolitan council 
        transit operations subsidy per passenger has decreased in a 
        one-year period between the effective date of this section and 
        June 1, 1997. 
           Subd. 2.  [DEPARTMENT OF TRANSPORTATION.] If the 
        commissioner of transportation is appropriated money from the 
        trunk highway fund in 1996 for state road construction, five 
        percent shall be made available to the commissioner after June 
        1, 1997, only if the commissioner of finance determines that the 
        department of transportation's administrative costs have 
        decreased as a percentage of construction costs in a one-year 
        period between the effective date of this section and June 1, 
        1997. 
           Sec. 11.  [PERFORMANCE AUDIT; DEADLINE.] 
           The metropolitan council's first performance audit report, 
        required under section 2, must be submitted to the legislature 
        by December 15, 1997. 
           Sec. 12.  [APPLICATION.] 
           Sections 1 to 6, 8, 9, 10, subdivision 1, and 11 apply to 
        the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
        and Washington. 
           Sec. 13.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
                                   ARTICLE 3
                        METROPOLITAN AIRPORT PROVISIONS
           Section 1.  Minnesota Statutes 1994, section 473.155, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [ZONING OF REAL PROPERTY.] The council shall not 
        require a local government unit to continue a current use or to 
        adopt a comprehensive plan designation or any change in zoning, 
        zoning variance, or conditional use in order to ensure or 
        preserve the availability of land for a new major airport. 
           Sec. 2.  Minnesota Statutes 1994, section 473.608, 
        subdivision 2, is amended to read: 
           Subd. 2.  It may acquire by lease, purchase, gift, devise, 
        or condemnation proceedings all necessary right, title, and 
        interest in and to lands and personal property required for 
        airports and all other real or personal property required for 
        the purposes contemplated by sections 473.601 to 473.679, within 
        the metropolitan area, pay therefor out of funds obtained as 
        hereinafter provided, and hold and dispose of the same, subject 
        to the limitations and conditions herein prescribed except that 
        the corporation may not acquire by any means lands or personal 
        property for a major new airport.  Title to any such property 
        acquired by condemnation or purchase shall be in fee simple, 
        absolute, unqualified in any way, but any such real or personal 
        property or interest therein otherwise acquired may be so 
        acquired or accepted subject to any condition which may be 
        imposed thereon by the grantor or donor and agreed to by the 
        corporation, not inconsistent with the proper use of the 
        property by the corporation for the purposes herein provided.  
        Any properties, real or personal, acquired, owned, leased, 
        controlled, used, and occupied by the corporation for any of the 
        purposes of sections 473.601 to 473.679, are declared to be 
        acquired, owned, leased, controlled, used, and occupied for 
        public, governmental, and municipal purposes, and shall be 
        exempt from taxation by the state or any of its political 
        subdivisions.  Nothing contained in sections 473.601 to 473.679, 
        shall be construed as exempting properties, real or personal, 
        leased from the metropolitan airports commission to a tenant or 
        lessee who is a private person, association, or corporation from 
        assessments or taxes. 
           Sec. 3.  Minnesota Statutes 1994, section 473.608, 
        subdivision 6, is amended to read: 
           Subd. 6.  It may construct and equip new airports, with all 
        powers of acquisition set out in subdivision 2, pay therefor out 
        of the funds obtained as hereinafter provided, and hold, 
        maintain, operate, regulate, police, and dispose of them or any 
        of them as hereinafter provided.  It may not construct, equip, 
        or acquire land for a major new airport to replace the existing 
        Minneapolis-St. Paul International airport, but it may conduct 
        activities necessary to do long-range planning to make 
        recommendations to the legislature on the need for new airport 
        facilities. 
           Sec. 4.  Minnesota Statutes 1994, section 473.608, 
        subdivision 16, is amended to read: 
           Subd. 16.  It may generally carry on the business of 
        acquiring, establishing, developing, extending, maintaining, 
        operating, and managing airports, with all powers incident 
        thereto except it is expressly prohibited from exercising these 
        powers for the purpose of future construction of a major new 
        airport. 
           Sec. 5.  Minnesota Statutes 1994, section 473.608, is 
        amended by adding a subdivision to read: 
           Subd. 24.  [PROHIBITION OF USE OF CERTAIN AIRCRAFT.] After 
        complying with the publication and public comment requirements 
        of United States Code, title 49, section 47524(b) and other 
        applicable federal requirements, the corporation shall prohibit 
        operation at Minneapolis-St. Paul International airport of 
        aircraft not complying with stage 3 noise levels after December 
        31, 1999. 
           Sec. 6.  Minnesota Statutes 1994, section 473.608, is 
        amended by adding a subdivision to read: 
           Subd. 25.  [IMPLEMENTATION OF LONG-TERM PLAN.] The 
        corporation shall implement the Minneapolis-St. Paul 
        International airport year 2010 long-term comprehensive plan. 
           Sec. 7.  Minnesota Statutes 1994, section 473.608, is 
        amended by adding a subdivision to read: 
           Subd. 26.  [FINAL ENVIRONMENTAL IMPACT STATEMENT.] The 
        corporation shall not be required to provide environmental or 
        technical analysis of the new airport alternative in the dual 
        track planning process final environmental impact statement. 
           Sec. 8.  Minnesota Statutes 1994, section 473.608, is 
        amended by adding a subdivision to read: 
           Subd. 27.  [USE OF RELIEVER AIRPORTS.] The corporation 
        shall develop and implement a plan to divert the maximum 
        feasible number of general aviation operations from 
        Minneapolis-St. Paul International airport to those airports 
        designated by the federal aviation administration as reliever 
        airports for Minneapolis-St. Paul International airport. 
           Sec. 9.  Minnesota Statutes 1994, section 473.608, is 
        amended by adding a subdivision to read: 
           Subd. 28.  [PROHIBITION CONCERNING REPLACEMENT PASSENGER 
        TERMINAL.] The corporation is prohibited from constructing a 
        replacement passenger terminal on the west side of 
        Minneapolis-St. Paul International airport without legislative 
        approval. 
           Sec. 10.  Minnesota Statutes 1994, section 473.608, is 
        amended by adding a subdivision to read: 
           Subd. 29.  [CONSTRUCTION OF A THIRD PARALLEL RUNWAY.] (a) 
        The corporation must enter into a contract with each affected 
        city that provides the corporation may not construct a third 
        parallel runway at the Minneapolis-St. Paul international 
        airport without the affected city's approval.  The corporation 
        must enter into the contracts by January 1, 1997. 
           (b) If a contract with a city as required by this 
        subdivision is not executed by January 1, 1997, as a result of 
        the corporation failing to act in good faith, the amount the 
        corporation must spend for noise mitigation in the affected city 
        is increased by 100 percent of the amount spent in the most 
        recent year in which an expenditure was made for noise 
        mitigation in the affected city. 
           (c) A contract entered into by a city and the corporation 
        under this subdivision creates and the contract must provide 
        third party beneficiary rights on behalf of the affected 
        property owners in the affected cities.  These third party 
        beneficiary rights apply only if a state law changes, 
        supersedes, or invalidates the contract or authorizes or enables 
        the corporation to construct a third parallel runway 
        notwithstanding the contract. 
           (d) An "affected city" is any city that would experience an 
        increase in the area located within the 60 Ldn noise contour as 
        a result of operations using the third parallel runway. 
           Sec. 11.  Minnesota Statutes 1994, section 473.614, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [ENVIRONMENTAL IMPACT REPORT.] Notwithstanding 
        the provisions of subdivision 2, the commission shall prepare a 
        report documenting the environmental effects of projects 
        included in the MSP 2010 long-term comprehensive plan.  
        Environmental effects of and costs associated with, noise 
        impacts, noise mitigation measures, and land use compatibility 
        measures must be evaluated according to alternative assumptions 
        of 600,000, 650,000, 700,000, and 750,000 aircraft operations at 
        Minneapolis-St. Paul International airport. 
           Sec. 12.  Minnesota Statutes 1994, section 473.621, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [ANNUAL REPORT TO LEGISLATURE.] The corporation 
        shall report to the legislature by February 15 of each year 
        concerning operations at Minneapolis-St. Paul International 
        airport.  The report must include the number of aircraft 
        operations and passenger enplanements at the airport in the 
        preceding year, current airport capacity in terms of operations 
        and passenger enplanements, average length of delay statistics, 
        and technological developments affecting aviation and their 
        effect on operations and capacity at the airport.  The report 
        must include information in all the foregoing categories as it 
        relates to operations at Wayne county metropolitan airport in 
        Detroit.  The report must compare the number of passenger 
        enplanements and the number of aircraft operations with the 1993 
        metropolitan airport commission baseline forecasts of total 
        passengers and total aircraft operations. 
           Sec. 13.  Minnesota Statutes 1994, section 473.661, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NOISE MITIGATION.] (a) According to the schedule 
        in paragraph (b), commission funds must be dedicated (1) to 
        supplement the implementation of corrective land use management 
        measures approved by the Federal Aviation Administration as part 
        of the commission's Federal Aviation Regulations, part 150 noise 
        compatibility program, and (2) for soundproofing and 
        accompanying air conditioning of residences, schools, and other 
        public buildings when there is a demonstrated need because of 
        aircraft noise, regardless of the location of the building to be 
        soundproofed, or any combination of the three. 
           (b) The noise mitigation program described in paragraph (a) 
        shall be funded by the commission from whatever source of funds 
        according to the following schedule: 
           In 1993, an amount equal to 20 percent of the passenger 
        facilities charges revenue amount budgeted by the commission for 
        1993; 
           In 1994, an amount equal to 20 percent of the passenger 
        facilities charges revenue amount budgeted by the commission for 
        1994; 
           In 1995, an amount equal to 35 percent of the passenger 
        facilities charges revenue amount budgeted by the commission for 
        1995; and 
           In 1996, an amount equal to 40 percent of the passenger 
        facilities charges revenue amount budgeted by the commission for 
        1996. 
           (c) From 1996 to 2002, the commission shall spend no less 
        than $185,000,000 from any source of funds for insulation and 
        accompanying air conditioning of residences, schools, and other 
        publicly owned buildings where there is a demonstrated need 
        because of aircraft noise; and property acquisition, limited to 
        residences, schools, and other publicly owned buildings, within 
        the noise impacted area.  In addition, the corporation shall 
        insulate and air condition four schools in Minneapolis and two 
        schools in Richfield that are located in the 1996 60 Ldn contour.
           (d) Before the commission constructs a new runway at 
        Minneapolis-St. Paul International airport, the commission shall 
        determine the probable levels of noise that will result in 
        various parts of the metropolitan area from the operation of 
        aircraft on the new runway and shall develop a program to 
        mitigate noise in those parts of the metropolitan area that are 
        located outside the 1996 65 Ldn contour but will be located 
        within the 65 Ldn contour as established after the new runway is 
        in operation.  Based upon this determination, the commission 
        shall reserve in its annual budget, until noise mitigation 
        measures are completed, an amount of money necessary to 
        implement this noise mitigation program in the newly impacted 
        areas. 
           (e) The commission's capital improvement projects, program, 
        and plan must reflect the requirements of this section.  As part 
        of the commission's report to the legislature under section 
        473.621, subdivision 1a, the commission must provide a 
        description and the status of each noise mitigation project 
        implemented under this section. 
           (d) (f) Within 60 180 days of submitting the commission's 
        and the metropolitan council's report and recommendations on 
        major airport planning to the legislature as required by section 
        473.618, the commission, with the assistance of its sound 
        abatement advisory committee, shall make a recommendation to the 
        legislature state advisory council on metropolitan airport 
        planning regarding proposed mitigation activities and 
        appropriate funding levels for noise mitigation activities at 
        Minneapolis-St. Paul International Airport and in the 
        neighboring communities.  The recommendation shall examine 
        mitigation measures to the 60 Ldn level.  The state advisory 
        council on metropolitan airport planning shall review the 
        recommendation and comment to the legislature within 60 days 
        after the recommendation is submitted to the council. 
           Sec. 14.  Laws 1989, chapter 279, section 7, subdivision 6, 
        is amended to read: 
           Subd. 6.  [TERMINATION.] The advisory council ceases to 
        exist when the actions required by section 3, subdivision 3, and 
        section 4 this article of this chapter of Laws 1996, sections 13 
        and 15, are completed. 
           Sec. 15.  [ANALYSIS OF AVIATION SERVICES AND COMMERCIAL 
        DEVELOPMENT.] 
           The metropolitan airports commission shall contract with 
        the University of Minnesota to prepare an aviation service and 
        facilities analysis.  The commission shall utilize funds from 
        any available source to pay the University of Minnesota an 
        agreed amount not to exceed $50,000 for the performance of the 
        analysis.  The analysis shall include: 
           (1) a description of various types and levels of aviation 
        service and an examination of the relationship between aviation 
        service levels and the level of commercial and industrial 
        activity in the state; and 
           (2) an examination of the relationship between available 
        levels of aviation service and the relocation of commercial and 
        industrial enterprises to the state. 
           The commission shall report the results of the analysis to 
        the state advisory council on metropolitan airport planning no 
        later than February 10, 1997.  The council shall review the 
        report and analysis and comment to the legislature within 60 
        days after the results of the analysis are reported to the 
        council. 
           Sec. 16.  [REPEALER.] 
           Minnesota Statutes 1994, sections 473.1551, subdivision 2; 
        473.636; and 473.637, are repealed. 
           Sec. 17.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment 
        and applies to the counties of Anoka, Carver, Dakota, Hennepin, 
        Ramsey, Scott, and Washington. 
                                   ARTICLE 4
                          AIRPORT NOISE IMPACT RELIEF 
           Section 1.  Laws 1995, chapter 255, article 3, section 2, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [URBAN REVITALIZATION AND STABILIZATION 
        ZONES.] (a) By September 1, 1995, the metropolitan council shall 
        designate one or more urban revitalization and stabilization 
        zones in the metropolitan area, as defined in section 473.121, 
        subdivision 2.  The designated zones must contain no more than 
        1,000 single family homes in total.  In designating urban 
        revitalization and stabilization zones, the council shall choose 
        areas that are in transition toward blight and poverty.  The 
        council shall use indicators that evidence increasing 
        neighborhood distress such as declining residential property 
        values, declining resident incomes, declining rates of 
        owner-occupancy, and other indicators of blight and poverty in 
        determining which areas are to be urban revitalization and 
        stabilization zones. 
           (b) An urban revitalization and stabilization zone is 
        created in the geographic area composed entirely of parcels that 
        are in whole or in part located within the 1996 65Ldn contour 
        surrounding the Minneapolis-St. Paul International Airport, or 
        within one mile of the boundaries of the 1996 65Ldn contour.  
        For residents of the zone created under this paragraph, 
        eligibility for the program as provided in subdivision 2 is 
        limited to persons buying and occupying a residence in the zone 
        after June 1, 1996. 
           Sec. 2.  Laws 1995, chapter 255, article 3, section 2, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPIRATION.] Initial applications for the urban 
        homesteading program in the zones designated under subdivision 
        1, paragraph (a), shall not be accepted after July 1, 1997. 
           Sec. 3.  [AIRPORT NOISE IMPACT AREAS; HOUSING REPLACEMENT 
        DISTRICTS; DEFINITIONS.] 
           Subdivision 1.  [AIRPORT NOISE IMPACT AREA.] "Airport noise 
        impact area" means a geographic area composed entirely of 
        parcels that are in whole or in part located within the 1996 
        60Ldn contour surrounding the Minneapolis-St. Paul International 
        Airport, or within one mile of the boundaries of the 1996 60Ldn 
        contour. 
           Subd. 2.  [AUTHORITY.] For each city that contains an 
        airport noise impact area, "authority" is the authority as 
        defined in Minnesota Statutes, section 469.174, subdivision 2, 
        that is designated by the governing body of the city to be the 
        authority for purposes of sections 3 to 6. 
           Subd. 3.  [CAPTURED NET TAX CAPACITY.] "Captured net tax 
        capacity" means the amount by which the current net tax capacity 
        in a housing replacement district exceeds the original net tax 
        capacity, 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. 4.  [ORIGINAL NET TAX CAPACITY.] "Original net tax 
        capacity" means the net tax capacity of all taxable real 
        property within a housing replacement district as certified by 
        the commissioner of revenue for the previous assessment year 
        less the net tax capacity attributable to existing improvements, 
        provided that the request by the authority for certification of 
        a new housing replacement district has been made to the county 
        auditor by June 30.  The original net tax capacity of housing 
        replacement districts for which requests are filed after June 30 
        has an original net tax capacity based on the current assessment 
        year.  In any case, the original net tax capacity must be 
        determined together with subsequent adjustments as set forth in 
        Minnesota Statutes, section 469.177, subdivision 1, paragraph 
        (c).  In determining the original net tax capacity, the net tax 
        capacity 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 
        net tax capacity of the property shall be the net tax capacity 
        as most recently determined by the commissioner of revenue. 
           Subd. 5.  [PARCEL.] "Parcel" means a tract or plat of land 
        established prior to the certification of the housing 
        replacement district as a single unit for purposes of assessment.
           Sec. 4.  [ESTABLISHMENT OF HOUSING REPLACEMENT DISTRICTS.] 
           Subdivision 1.  [CREATION OF PROJECTS.] (a) An authority 
        may create a housing replacement project under sections 3 to 6, 
        as provided in this section. 
           (b) Parcels included in a district must be located in an 
        airport noise impact area, and must be either (1) vacant sites, 
        (2) parcels containing vacant houses, or (3) parcels containing 
        buildings that are structurally substandard, as defined in 
        Minnesota Statutes, section 469.174, subdivision 10.  
           (c) The city in which the authority is located must pay at 
        least 25 percent of the project costs from its general fund, a 
        property tax levy, or other unrestricted money, not including 
        tax increments. 
           (d) The housing replacement district plan must have as its 
        sole object the acquisition of parcels for the purpose of 
        preparing the site to be sold for market rate housing or for 
        commercial purposes consistent with the cities' plan for that 
        area.  As used in this section, "market rate housing" means 
        housing that has a market value that does not exceed 150 percent 
        of the average market value of single-family housing in that 
        municipality. 
           (e) An authority may not create a housing replacement 
        project under this section, if the city has approved a special 
        law providing the city with housing replacement district 
        authority and if the authority has requested certification of a 
        parcel to be included in the district. 
           Subd. 2.  [HOUSING REPLACEMENT DISTRICT PLAN.] To establish 
        a housing replacement district under sections 3 to 6, an 
        authority shall adopt a housing replacement district plan which 
        contains: 
           (1) a statement of the objectives and a description of the 
        housing replacement projects proposed by the authority for the 
        housing replacement district; 
           (2) a statement of the housing replacement district plan, 
        demonstrating the coordination of that plan with the city's 
        comprehensive plan; 
           (3) estimates of the following: 
           (i) cost of the program, including administrative expenses; 
           (ii) sources of revenue to finance or otherwise pay public 
        costs; 
           (iii) the most recent net tax capacity of taxable real 
        property within the housing replacement district; and 
           (iv) the estimated captured net tax capacity of the housing 
        replacement district at completion; 
           (4) statements of the authority's alternate estimates of 
        the impact of the housing replacement district on the net tax 
        capacities of all taxing jurisdictions in which the housing 
        replacement district is located in whole or in part.  For 
        purposes of one statement, the authority shall assume that the 
        estimated captured net tax capacity would be available to the 
        taxing jurisdictions without creation of the housing replacement 
        district, and for purposes of the second statement, the 
        authority shall assume that none of the estimated captured net 
        tax capacity would be available to the taxing jurisdictions 
        without creation of the housing replacement district; and 
           (5) identification of all parcels to be included in the 
        district. 
           Subd. 3.  [PROCEDURE.] The provisions of Minnesota 
        Statutes, section 469.175, subdivisions 3, 4, 5, and 6, apply to 
        the establishment and operation of the housing replacement 
        districts created under sections 3 to 6, except as follows: 
           (1) creation of a district within a municipality is subject 
        to the approval of the metropolitan council in addition to other 
        approvals required by law; and 
           (2) the determination specified in Minnesota Statutes, 
        section 469.175, subdivision 3, clause (1), is not required. 
           Sec. 5.  [LIMITATIONS.] 
           Subdivision 1.  [DURATION LIMITS.] No tax increment may be 
        paid to the authority on each parcel in a housing replacement 
        district after 15 years from date of receipt by the county of 
        the first tax increment from that parcel. 
           Subd. 2.  [LIMITATION ON USE OF TAX INCREMENTS.] All 
        revenues derived from tax increments must be used in accordance 
        with the housing replacement district plan.  The revenues must 
        be used solely to pay the costs of site acquisition, relocation, 
        demolition of existing structures, site preparation, and 
        pollution abatement on parcels identified in the housing 
        replacement district plan, as well as public improvements and 
        administrative costs directly related to those parcels. 
           Sec. 6.  [APPLICATION OF OTHER LAWS.] 
           Subdivision 1.  [COMPUTATION OF TAX INCREMENT.] The 
        provisions of Minnesota Statutes, section 469.177, subdivisions 
        1a, and 5 to 10, apply to the computation of tax increment for 
        the housing replacement districts created under sections 3 to 6. 
           Subd. 2.  [OTHER PROVISIONS.] References in Minnesota 
        Statutes to tax increment financing districts created and tax 
        increments generated under Minnesota Statutes, sections 469.174 
        to 469.179, other than references in Minnesota Statutes, section 
        273.1399, include housing replacement districts and tax 
        increments subject to sections 3 to 6, provided that Minnesota 
        Statutes, sections 469.174 to 469.179, apply only to the extent 
        specified in sections 1 to 4. 
           Subd. 3.  [MINNEAPOLIS SPECIAL LAW.] Laws 1980, chapter 
        595, section 2, subdivision 2, does not apply to a district 
        created under sections 3 to 6. 
           Sec. 7.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective for taxable years beginning 
        after December 31, 1997.  Sections 3 to 6 are effective July 1, 
        1997. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 12, 1996, 2:30 p.m.