Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1996, Regular Session
Key: (1) language to be deleted (2) new language
KEY: stricken = old language to be removed
underscored = new language to be added
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.
Official Publication of the State of Minnesota
Revisor of Statutes