Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2005, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 152-H.F.No. 2498
An act relating to public finance; authorizing
purchases of certain guaranteed investment contracts;
authorizing a special levy; modifying a taconite fund
provision; modifying the authority of cities and
counties to finance purchases of computers and related
items; extending the term of certain notes; clarifying
the financing of conservation easements; extending
sunsets on establishment of special service districts
and housing improvement areas; authorizing
municipalities to improve streets and roads outside
municipal boundaries; providing for financing of
certain improvements; extending the maximum maturity
of certain bonds; revising time for certain notices of
issues; exempting obligations issued to pay judgments
from net debt limits; modifying limits on city capital
improvement bonds and enabling certain towns to issue
bonds under a capital improvement plan; authorizing
the issuance of certain revenue bonds; modifying
certain tax increment financing provisions; providing
a bidding exception; increasing reserve from public
facilities pool for certain purposes; providing for
payment of certain refunding bonds; abolishing the
housing bond credit enhancement program and providing
for debt service on the bonds; authorizing a tax
abatement extension; appropriating money for certain
refunds; amending Minnesota Statutes 2004, sections
13.55, by adding a subdivision; 116J.556; 118A.05,
subdivision 5; 272.02, subdivision 64; 272.0212,
subdivisions 1, 2; 275.70, subdivision 5; 298.223,
subdivision 1; 343.11; 373.01, subdivision 3; 373.40,
subdivision 1; 410.32; 412.301; 428A.101; 428A.21;
469.015, subdivision 4; 469.034, subdivision 2;
469.158; 469.174, subdivisions 11, 25; 469.175,
subdivisions 1, 2, 4a, 5, 6; 469.176, subdivisions 2,
4d; 469.1761, subdivisions 1, 3; 469.1763,
subdivisions 2, 6; 469.177, subdivision 1; 469.1771,
subdivision 5; 469.178, subdivision 1; 469.1813,
subdivision 6; 473.197, subdivision 4; 473.39, by
adding subdivisions; 474A.061, subdivision 2c;
474A.131, subdivision 1; 475.51, subdivision 4;
475.52, subdivisions 1, 3, 4; 475.521, subdivisions 1,
2, 3, 4; 475.58, subdivision 3b; 477A.013, by adding a
subdivision; Laws 1996, chapter 412, article 5,
section 24; Laws 1998, chapter 389, article 11,
section 19, subdivision 3; Laws 2003, chapter 127,
article 12, section 38; proposing coding for new law
in Minnesota Statutes, chapters 429; 452; repealing
Minnesota Statutes 2004, sections 469.176, subdivision
1a; 469.1766; 473.197, subdivisions 1, 2, 3, 5;
473.39, subdivision 1f; Laws 1994, chapter 587,
article 9, section 20, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PUBLIC FINANCE
Section 1. Minnesota Statutes 2004, section 13.55, is
amended by adding a subdivision to read:
Subd. 4. [CITY OF ST. PAUL DATA.] (a) For purposes of this
subdivision, "nonprofit organization" means the nonprofit
organization with which the city of St. Paul contracts to market
and promote the city as a tourist or convention center.
(b) Data collected, received, created, or maintained by the
nonprofit organization in the course of preparing or submitting
any responses to requests for proposals or requests for bids
relating to events hosted, conducted, or sponsored by the
nonprofit organization is classified as nonpublic data under
section 13.02, subdivision 9; or private data under section
13.02, subdivision 12, until the time provided in subdivision 2,
paragraph (a) or (b), of this section. The nonprofit
organization is a "civic center authority" for purposes of this
section.
Sec. 2. Minnesota Statutes 2004, section 118A.05,
subdivision 5, is amended to read:
Subd. 5. [GUARANTEED INVESTMENT CONTRACTS.] Agreements or
contracts for guaranteed investment contracts may be entered
into if they are issued or guaranteed by United States
commercial banks, domestic branches of foreign banks, United
States insurance companies, or their Canadian subsidiaries, or
the domestic affiliates of any of the foregoing. The credit
quality of the issuer's or guarantor's short- and long-term
unsecured debt must be rated in one of the two highest
categories by a nationally recognized rating agency. Should the
issuer's or guarantor's credit quality be downgraded below "A",
the government entity must have withdrawal rights.
Sec. 3. Minnesota Statutes 2004, section 275.70,
subdivision 5, is amended to read:
Subd. 5. [SPECIAL LEVIES.] "Special levies" means those
portions of ad valorem taxes levied by a local governmental unit
for the following purposes or in the following manner:
(1) to pay the costs of the principal and interest on
bonded indebtedness or to reimburse for the amount of liquor
store revenues used to pay the principal and interest due on
municipal liquor store bonds in the year preceding the year for
which the levy limit is calculated;
(2) to pay the costs of principal and interest on
certificates of indebtedness issued for any corporate purpose
except for the following:
(i) tax anticipation or aid anticipation certificates of
indebtedness;
(ii) certificates of indebtedness issued under sections
298.28 and 298.282;
(iii) certificates of indebtedness used to fund current
expenses or to pay the costs of extraordinary expenditures that
result from a public emergency; or
(iv) certificates of indebtedness used to fund an
insufficiency in tax receipts or an insufficiency in other
revenue sources;
(3) to provide for the bonded indebtedness portion of
payments made to another political subdivision of the state of
Minnesota;
(4) to fund payments made to the Minnesota State Armory
Building Commission under section 193.145, subdivision 2, to
retire the principal and interest on armory construction bonds;
(5) property taxes approved by voters which are levied
against the referendum market value as provided under section
275.61;
(6) to fund matching requirements needed to qualify for
federal or state grants or programs to the extent that either
(i) the matching requirement exceeds the matching requirement in
calendar year 2001, or (ii) it is a new matching requirement
that did not exist prior to 2002;
(7) to pay the expenses reasonably and necessarily incurred
in preparing for or repairing the effects of natural disaster
including the occurrence or threat of widespread or severe
damage, injury, or loss of life or property resulting from
natural causes, in accordance with standards formulated by the
Emergency Services Division of the state Department of Public
Safety, as allowed by the commissioner of revenue under section
275.74, subdivision 2;
(8) pay amounts required to correct an error in the levy
certified to the county auditor by a city or county in a levy
year, but only to the extent that when added to the preceding
year's levy it is not in excess of an applicable statutory,
special law or charter limitation, or the limitation imposed on
the governmental subdivision by sections 275.70 to 275.74 in the
preceding levy year;
(9) to pay an abatement under section 469.1815;
(10) to pay any costs attributable to increases in the
employer contribution rates under chapter 353 that are effective
after June 30, 2001;
(11) to pay the operating or maintenance costs of a county
jail as authorized in section 641.01 or 641.262, or of a
correctional facility as defined in section 241.021, subdivision
1, paragraph (f), to the extent that the county can demonstrate
to the commissioner of revenue that the amount has been included
in the county budget as a direct result of a rule, minimum
requirement, minimum standard, or directive of the Department of
Corrections, or to pay the operating or maintenance costs of a
regional jail as authorized in section 641.262. For purposes of
this clause, a district court order is not a rule, minimum
requirement, minimum standard, or directive of the Department of
Corrections. If the county utilizes this special levy, except
to pay operating or maintenance costs of a new regional jail
facility under sections 641.262 to 641.264 which will not
replace an existing jail facility, any amount levied by the
county in the previous levy year for the purposes specified
under this clause and included in the county's previous year's
levy limitation computed under section 275.71, shall be deducted
from the levy limit base under section 275.71, subdivision 2,
when determining the county's current year levy limitation. The
county shall provide the necessary information to the
commissioner of revenue for making this determination;
(12) to pay for operation of a lake improvement district,
as authorized under section 103B.555. If the county utilizes
this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause
and included in the county's previous year's levy limitation
computed under section 275.71 shall be deducted from the levy
limit base under section 275.71, subdivision 2, when determining
the county's current year levy limitation. The county shall
provide the necessary information to the commissioner of revenue
for making this determination;
(13) to repay a state or federal loan used to fund the
direct or indirect required spending by the local government due
to a state or federal transportation project or other state or
federal capital project. This authority may only be used if the
project is not a local government initiative;
(14) to pay for court administration costs as required
under section 273.1398, subdivision 4b, less the (i) county's
share of transferred fines and fees collected by the district
courts in the county for calendar year 2001 and (ii) the aid
amount certified to be paid to the county in 2004 under section
273.1398, subdivision 4c; however, for taxes levied to pay for
these costs in the year in which the court financing is
transferred to the state, the amount under this clause is
limited to the amount of aid the county is certified to receive
under section 273.1398, subdivision 4a; and
(15) to fund a police or firefighters relief association as
required under section 69.77 to the extent that the required
amount exceeds the amount levied for this purpose in 2001; and
(16) for purposes of a storm sewer improvement district,
pursuant to section 444.20.
Sec. 4. Minnesota Statutes 2004, section 298.223,
subdivision 1, is amended to read:
Subdivision 1. [CREATION; PURPOSES.] A fund called the
taconite environmental protection fund is created for the
purpose of reclaiming, restoring and enhancing those areas of
northeast Minnesota located within the taconite assistance area
defined in section 273.1341, that are adversely affected by the
environmentally damaging operations involved in mining taconite
and iron ore and producing iron ore concentrate and for the
purpose of promoting the economic development of northeast
Minnesota. The taconite environmental protection fund shall be
used for the following purposes:
(a) to initiate investigations into matters the Iron Range
Resources and Rehabilitation Board determines are in need of
study and which will determine the environmental problems
requiring remedial action;
(b) reclamation, restoration, or reforestation of minelands
not otherwise provided for by state law;
(c) local economic development projects including
construction of sewer and water systems, and other but only if
those projects are approved by the board, and public works,
including construction of sewer and water systems located within
the taconite assistance area defined in section 273.1341;
(d) monitoring of mineral industry related health problems
among mining employees.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 5. Minnesota Statutes 2004, section 343.11, is
amended to read:
343.11 [ACQUISITION OF PROPERTY, APPROPRIATIONS.]
Every county and district society for the prevention of
cruelty to animals may acquire, by purchase, gift, grant, or
devise, and hold, use, or convey, real estate and personal
property, and lease, mortgage, sell, or use the same in any
manner conducive to its interest, to the same extent as natural
persons. The county board of any county, or the council of any
city, in which such societies exist, may, in its discretion,
appropriate for the maintenance and support of such societies in
the transaction of the work for which they are organized, any
sums of money not otherwise appropriated, not to exceed in any
one year the sum of $4,800 or the sum of 50 cents $1 per capita
based upon the county's or city's population as of the most
recent federal census, whichever is greater; provided, that no
part of the appropriation shall be expended for the payment of
the salary of any officer of the society.
[EFFECTIVE DATE.] This section is effective January 1, 2006.
Sec. 6. Minnesota Statutes 2004, section 373.01,
subdivision 3, is amended to read:
Subd. 3. [CAPITAL NOTES.] (a) A county board may, by
resolution and without referendum, issue capital notes subject
to the county debt limit to purchase capital equipment useful
for county purposes that has an expected useful life at least
equal to the term of the notes. The notes shall be payable in
not more than five ten years and shall be issued on terms and in
a manner the board determines. A tax levy shall be made for
payment of the principal and interest on the notes, in
accordance with section 475.61, as in the case of bonds.
(b) For purposes of this subdivision, "capital equipment"
means:
(1) public safety, ambulance, road construction or
maintenance, and medical equipment,; and
(2) computer hardware and original operating system
software, whether bundled with machinery or equipment or
unbundled. The authority to issue capital notes for original
operating systems software expires on July 1, 2005 2007.
Sec. 7. Minnesota Statutes 2004, section 373.40,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section
475.51.
(b) "Capital improvement" means acquisition or betterment
of public lands, development rights in the form of conservation
easements under chapter 84C, buildings, or other improvements
within the county for the purpose of a county courthouse,
administrative building, health or social service facility,
correctional facility, jail, law enforcement center, hospital,
morgue, library, park, qualified indoor ice arena, and roads and
bridges, and the acquisition of development rights in the form
of conservation easements under chapter 84C. An improvement
must have an expected useful life of five years or more to
qualify. "Capital improvement" does not include light rail
transit or any activity related to it or a recreation or sports
facility building (such as, but not limited to, a gymnasium, ice
arena, racquet sports facility, swimming pool, exercise room or
health spa), unless the building is part of an outdoor park
facility and is incidental to the primary purpose of outdoor
recreation.
(c) "Commissioner" means the commissioner of employment and
economic development.
(d) "Metropolitan county" means a county located in the
seven-county metropolitan area as defined in section 473.121 or
a county with a population of 90,000 or more.
(e) "Population" means the population established by the
most recent of the following (determined as of the date the
resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United
States Bureau of the Census, or
(3) a population estimate made either by the Metropolitan
Council or by the state demographer under section 4A.02.
(f) "Qualified indoor ice arena" means a facility that
meets the requirements of section 373.43.
(g) "Tax capacity" means total taxable market value, but
does not include captured market value.
Sec. 8. Minnesota Statutes 2004, section 410.32, is
amended to read:
410.32 [CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL
EQUIPMENT.]
(a) Notwithstanding any contrary provision of other law or
charter, a home rule charter city may, by resolution and without
public referendum, issue capital notes subject to the city debt
limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical
equipment, road construction and maintenance equipment, and
other capital equipment; and
(2) computer hardware and original operating system
software, provided whether bundled with machinery or equipment
or unbundled.
(c) The equipment or software has must have an expected
useful life at least as long as the term of the notes. The
authority to issue capital notes for original operating system
software expires on July 1, 2005 2007.
(d) The notes shall be payable in not more than five ten
years and be issued on terms and in the manner the city
determines. The total principal amount of the capital notes
issued in a fiscal year shall not exceed 0.03 percent of the
market value of taxable property in the city for that year.
(e) A tax levy shall be made for the payment of the
principal and interest on the notes, in accordance with section
475.61, as in the case of bonds.
(f) Notes issued under this section shall require an
affirmative vote of two-thirds of the governing body of the city.
(g) Notwithstanding a contrary provision of other law or
charter, a home rule charter city may also issue capital notes
subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section
412.301.
Sec. 9. Minnesota Statutes 2004, section 412.301, is
amended to read:
412.301 [FINANCING PURCHASE OF CERTAIN EQUIPMENT.]
(a) The council may issue certificates of indebtedness or
capital notes subject to the city debt limits to
purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical
equipment, road construction or and maintenance equipment, and
other capital equipment; and
(2) computer hardware and original operating system
software, provided whether bundled with machinery or equipment
or unbundled.
(c) The equipment or software has must have an expected
useful life at least as long as the terms of the certificates or
notes. The authority to issue capital notes for original
operating system software expires on July 1, 2005 2007.
(d) Such certificates or notes shall be payable in not more
than five ten years and shall be issued on such terms and in
such manner as the council may determine.
(e) If the amount of the certificates or notes to be issued
to finance any such purchase exceeds 0.25 percent of the market
value of taxable property in the city, they shall not be issued
for at least ten days after publication in the official
newspaper of a council resolution determining to issue them; and
if before the end of that time, a petition asking for an
election on the proposition signed by voters equal to ten
percent of the number of voters at the last regular municipal
election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has
been approved by a majority of the votes cast on the question at
a regular or special election.
(f) A tax levy shall be made for the payment of the
principal and interest on such certificates or notes, in
accordance with section 475.61, as in the case of bonds.
Sec. 10. Minnesota Statutes 2004, section 428A.101, is
amended to read:
428A.101 [DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER
GENERAL LAW.]
The establishment of a new special service district after
June 30, 2005 2009, requires enactment of a special law
authorizing the establishment.
Sec. 11. Minnesota Statutes 2004, section 428A.21, is
amended to read:
428A.21 [SUNSET DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS
UNDER GENERAL LAW.]
No The establishment of a new housing improvement areas may
be established under sections 428A.11 to 428A.20 area after June
30, 2005. After June 30, 2005, a city may establish a housing
improvement area, provided that it receives enabling legislation
2009, requires enactment of a special law authorizing the
establishment of the area.
Sec. 12. [429.052] [STREET OR ROAD IMPROVEMENTS OUTSIDE
MUNICIPAL BOUNDARIES.]
A municipality may construct street or road improvements
outside its jurisdiction with the consent of the affected
township, or if the property is located in unorganized
territory, the county. When property is brought within the
corporate limits of the municipality, the municipality may
subsequently reimburse itself for all or any portion of the cost
of the improvement for which municipal funds have been expended,
by levying an assessment upon any property abutting on, but not
previously assessed for, the improvement. No assessment may be
so levied unless the property to be assessed was given notice
and hearing of the improvements under section 429.031 at the
time the improvement was ordered, and subsequently in accordance
with the notice, hearing, and appeal rights, provided for under
sections 429.061 and 429.081.
[EFFECTIVE DATE.] This section is effective for street and
road improvements first ordered after August 1, 2005.
Sec. 13. [452.26] [UTILITY JOINT VENTURE.]
To provide reduced cost financing or to otherwise help in
carrying out its functions, a municipal gas agency created under
chapter 453A and any municipal utility authorized to provide gas
facilities or services may enter into a joint venture that was
incorporated before June 30, 2004, under section 452.25. The
joint venture, and any municipal gas agency which is a member of
the joint venture, may provide gas utility service.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 14. Minnesota Statutes 2004, section 469.015,
subdivision 4, is amended to read:
Subd. 4. [EXCEPTIONS.] (a) An authority need not require
competitive bidding in the following circumstances:
(1) in the case of a contract for the acquisition of a
low-rent housing project:
(i) for which financial assistance is provided by the
federal government;
(ii) which does not require any direct loan or grant of
money from the municipality as a condition of the federal
financial assistance; and
(iii) for which the contract provides for the construction
of the project upon land that is either owned by the authority
for redevelopment purposes or not owned by the authority at the
time of the contract but the contract provides for the
conveyance or lease to the authority of the project or
improvements upon completion of construction;
(2) with respect to a structured parking facility:
(i) constructed in conjunction with, and directly above or
below, a development; and
(ii) financed with the proceeds of tax increment or parking
ramp general obligation or revenue bonds; and
(3) until August 1, 2009, with respect to a facility built
for the purpose of facilitating the operation of public transit
or encouraging its use:
(i) constructed in conjunction with, and directly above or
below, a development; and
(ii) financed with the proceeds of parking ramp general
obligation or revenue bonds or with at least 60 percent of the
construction cost being financed with funding provided by the
federal government; and
(4) in the case of any building in which at least 75
percent of the usable square footage constitutes a housing
development project if:
(i) the project is financed with the proceeds of bonds
issued under section 469.034 or from nongovernmental sources;
(ii) the project is either located on land that is owned or
is being acquired by the authority only for development
purposes, or is not owned by the authority at the time the
contract is entered into but the contract provides for
conveyance or lease to the authority of the project or
improvements upon completion of construction; and
(iii) the authority finds and determines that elimination
of the public bidding requirements is necessary in order for the
housing development project to be economical and feasible.
(b) An authority need not require a performance bond for
the following projects:
(1) a contract described in paragraph (a), clause (1);
(2) a construction change order for a housing project in
which 30 percent of the construction has been completed;
(3) a construction contract for a single-family housing
project in which the authority acts as the general construction
contractor; or
(4) a services or materials contract for a housing project.
For purposes of this paragraph, "services or materials
contract" does not include construction contracts.
Sec. 15. Minnesota Statutes 2004, section 469.034,
subdivision 2, is amended to read:
Subd. 2. [GENERAL OBLIGATION REVENUE BONDS.] (a) An
authority may pledge the general obligation of the general
jurisdiction governmental unit as additional security for bonds
payable from income or revenues of the project or the
authority. The authority must find that the pledged revenues
will equal or exceed 110 percent of the principal and interest
due on the bonds for each year. The proceeds of the bonds must
be used for a qualified housing development project or
projects. The obligations must be issued and sold in the manner
and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors, and the
maturities may extend to not more than 30 35 years from the
estimated date of completion of the project for obligations sold
to finance housing for the elderly and 40 years for other
obligations issued under this subdivision. The authority is the
municipality for purposes of chapter 475.
(b) The principal amount of the issue must be approved by
the governing body of the general jurisdiction governmental unit
whose general obligation is pledged. Public hearings must be
held on issuance of the obligations by both the authority and
the general jurisdiction governmental unit. The hearings must
be held at least 15 days, but not more than 120 days, before the
sale of the obligations.
(c) The maximum amount of general obligation bonds that may
be issued and outstanding under this section equals the greater
of (1) one-half of one percent of the taxable market value of
the general jurisdiction governmental unit whose general
obligation which includes a tax on property is pledged, or (2)
$3,000,000. In the case of county or multicounty general
obligation bonds, the outstanding general obligation bonds of
all cities in the county or counties issued under this
subdivision must be added in calculating the limit under clause
(1).
(d) "General jurisdiction governmental unit" means the city
in which the housing development project is located. In the
case of a county or multicounty authority, the county or
counties may act as the general jurisdiction governmental unit.
In the case of a multicounty authority, the pledge of the
general obligation is a pledge of a tax on the taxable property
in each of the counties.
(e) "Qualified housing development project" means a housing
development project providing housing either for the elderly or
for individuals and families with incomes not greater than 80
percent of the median family income as estimated by the United
States Department of Housing and Urban Development for the
standard metropolitan statistical area or the nonmetropolitan
county in which the project is located, and will. The project
must be owned for the term of the bonds either by the
authority for the term of the bonds. or by a limited partnership
or other entity in which the authority or another entity under
the sole control of the authority is the sole general partner
and the partnership or other entity must receive (1) an
allocation from the Department of Finance or an entitlement
issuer of tax-exempt bonding authority for the project and a
preliminary determination by the Minnesota Housing Finance
Agency or the applicable suballocator of tax credits that the
project will qualify for four percent low-income housing tax
credits or (2) a reservation of nine percent low-income housing
tax credits from the Minnesota Housing Finance Agency or a
suballocator of tax credits for the project. A qualified
housing development project may admit nonelderly individuals and
families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing
unanticipated vacancies resulting in insufficient revenues,
because of changes in population or other unforeseen
circumstances that occurred after the initial finding of
adequate revenues; and
(3) the authority finds a tax levy or payment from general
assets of the general jurisdiction governmental unit will be
necessary to pay debt service on the bonds if higher income
individuals or families are not admitted.
Sec. 16. Minnesota Statutes 2004, section 469.158, is
amended to read:
469.158 [MANNER OF ISSUANCE OF BONDS; INTEREST RATE.]
Bonds authorized under sections 469.152 to 469.165 must be
issued in accordance with the provisions of chapter 475 relating
to bonds payable from income of revenue producing conveniences,
except that public sale is not required, the provisions of
sections 475.62 and 475.63 do not apply, and the bonds may
mature at the time or times, in the amount or amounts, within 30
40 years from date of issue, and may be sold at a price equal to
the percentage of the par value thereof, plus accrued interest,
and bearing interest at the rate or rates agreed by the
contracting party, the purchaser, and the municipality or
redevelopment agency, notwithstanding any limitation of interest
rate or cost or of the amounts of annual maturities contained in
any other law. Bonds issued to refund bonds previously issued
pursuant to sections 469.152 to 469.165 may be issued in amounts
determined by the municipality or redevelopment agency
notwithstanding the provisions of section 475.67, subdivision 3.
Sec. 17. Minnesota Statutes 2004, section 469.1813,
subdivision 6, is amended to read:
Subd. 6. [DURATION LIMIT.] (a) A political subdivision may
grant an abatement for a period no longer than ten 15 years,
except as provided under paragraph (b). The subdivision may
specify in the abatement resolution a shorter duration. If the
resolution does not specify a period of time, the abatement is
for eight years. If an abatement has been granted to a parcel
of property and the period of the abatement has expired, the
political subdivision that granted the abatement may not grant
another abatement for eight years after the expiration of the
first abatement. This prohibition does not apply to
improvements added after and not subject to the first abatement.
(b) A political subdivision proposing to abate taxes for a
parcel may request, in writing, that the other political
subdivisions in which the parcel is located grant an abatement
for the property. If one of the other political subdivisions
declines, in writing, to grant an abatement or if 90 days pass
after receipt of the request to grant an abatement without a
written response from one of the political subdivisions, the
duration limit for an abatement for the parcel by the requesting
political subdivision and any other participating political
subdivision is increased to 15 20 years. If the political
subdivision which declined to grant an abatement later grants an
abatement for the parcel, the 15-year 20-year duration limit is
reduced by one year for each year that the declining political
subdivision grants an abatement for the parcel during the period
of the abatement granted by the requesting political
subdivision. The duration limit may not be reduced below the
limit under paragraph (a).
Sec. 18. Minnesota Statutes 2004, section 473.197,
subdivision 4, is amended to read:
Subd. 4. [DEBT RESERVE; LEVY.] To provide money to pay
debt service on bonds issued under the credit enhancement
program if pledged revenues are insufficient to pay debt service
in repealed subdivision 1 of Minnesota Statutes 2004, section
473.197, the council must maintain a debt reserve fund in the
manner and with the effect provided by section 118A.04 for
public funds until such a reserve is no longer pledged or
otherwise needed to pay debt service on such bonds. To provide
funds for the debt reserve fund, the council may use up to
$3,000,000 of the proceeds of solid waste bonds issued by the
council under section 473.831 before its repeal. To provide
additional funds for the debt reserve fund, the council may levy
a tax on all taxable property in the metropolitan area and must
levy the tax If sums in the debt reserve fund are insufficient
to cure any deficiency in the debt service fund established for
the bonds, the council must levy a tax on all taxable property
in the metropolitan area in the amount needed to cure the
deficiency. The tax authorized by this section does not affect
the amount or rate of taxes that may be levied by the council
for other purposes and is not subject to limit as to rate or
amount.
Sec. 19. Minnesota Statutes 2004, section 473.39, is
amended by adding a subdivision to read:
Subd. 1k. [OBLIGATIONS.] After July 1, 2005, in addition
to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, 1h, 1i,
and 1j, the council may issue certificates of indebtedness,
bonds, or other obligations under this section in an amount not
exceeding $64,000,000 for capital expenditures as prescribed in
the council's regional transit master plan and transit capital
improvement program and for related costs, including the costs
of issuance and sale of the obligations.
Sec. 20. Minnesota Statutes 2004, section 473.39, is
amended by adding a subdivision to read:
Subd. 2a. [USES OF INVESTMENT INCOME.] Interest or other
investment earnings on the proceeds of bonds issued under this
section and on a debt service account for bonds issued under
this section must be used only to:
(1) pay capital expenditures and related expenses for which
the obligations were authorized by this section;
(2) to pay debt service on the obligations or to reduce the
council's property tax levy imposed to pay debt service on
obligations issued under this section;
(3) pay rebate or yield reduction payments for the bonds to
the United States;
(4) redeem or purchase the bonds; or
(5) make other payments with respect to the bonds that are
necessary or desirable to comply with federal tax rules
applicable to the bonds or to comply with covenants made with
respect to the bonds.
[EFFECTIVE DATE.] This section is effective for investment
earnings received after June 30, 2005.
Sec. 21. Minnesota Statutes 2004, section 474A.061,
subdivision 2c, is amended to read:
Subd. 2c. [PUBLIC FACILITIES POOL ALLOCATION.] From the
beginning of the calendar year and continuing for a period of
120 days, the commissioner shall reserve $3,000,000 $5,000,000
of the available bonding authority from the public facilities
pool for applications for public facilities projects to be
financed by the Western Lake Superior Sanitary District.
Commencing on the second Tuesday in January and continuing on
each Monday through the last Monday in July, the commissioner
shall allocate available bonding authority from the public
facilities pool to applications for eligible public facilities
projects received on or before the Monday of the preceding
week. If there are two or more applications for public
facilities projects from the pool and there is insufficient
available bonding authority to provide allocations for all
projects in any one week, the available bonding authority shall
be awarded by lot unless otherwise agreed to by the respective
issuers.
Sec. 22. Minnesota Statutes 2004, section 474A.131,
subdivision 1, is amended to read:
Subdivision 1. [NOTICE OF ISSUE.] Each issuer that issues
bonds with an allocation received under this chapter shall
provide a notice of issue to the department on forms provided by
the department stating:
(1) the date of issuance of the bonds;
(2) the title of the issue;
(3) the principal amount of the bonds;
(4) the type of qualified bonds under federal tax law;
(5) the dollar amount of the bonds issued that were subject
to the annual volume cap; and
(6) for entitlement issuers, whether the allocation is from
current year entitlement authority or is from carryforward
authority.
For obligations that are issued as a part of a series of
obligations, a notice must be provided for each series. A
penalty of one-half of the amount of the application deposit not
to exceed $5,000 shall apply to any issue of obligations for
which a notice of issue is not provided to the department within
five business days after issuance or before the last Monday 4:30
p.m. on the last business day in December, whichever occurs
first. Within 30 days after receipt of a notice of issue the
department shall refund a portion of the application deposit
equal to one percent of the amount of the bonding authority
actually issued if a one percent application deposit was made,
or equal to two percent of the amount of the bonding authority
actually issued if a two percent application deposit was made,
less any penalty amount.
Sec. 23. Minnesota Statutes 2004, section 475.51,
subdivision 4, is amended to read:
Subd. 4. [NET DEBT.] "Net debt" means the amount remaining
after deducting from its gross debt the amount of current
revenues which are applicable within the current fiscal year to
the payment of any debt and the aggregate of the principal of
the following:
(1) Obligations issued for improvements which are payable
wholly or partly from the proceeds of special assessments levied
upon property specially benefited thereby, including those which
are general obligations of the municipality issuing them, if the
municipality is entitled to reimbursement in whole or in part
from the proceeds of the special assessments.
(2) Warrants or orders having no definite or fixed maturity.
(3) Obligations payable wholly from the income from revenue
producing conveniences.
(4) Obligations issued to create or maintain a permanent
improvement revolving fund.
(5) Obligations issued for the acquisition, and betterment
of public waterworks systems, and public lighting, heating or
power systems, and of any combination thereof or for any other
public convenience from which a revenue is or may be derived.
(6) Debt service loans and capital loans made to a school
district under the provisions of sections 126C.68 and 126C.69.
(7) Amount of all money and the face value of all
securities held as a debt service fund for the extinguishment of
obligations other than those deductible under this subdivision.
(8) Obligations to repay loans made under section 216C.37.
(9) Obligations to repay loans made from money received
from litigation or settlement of alleged violations of federal
petroleum pricing regulations.
(10) Obligations issued to pay pension fund liabilities
under section 475.52, subdivision 6, or any charter authority.
(11) Obligations issued to pay judgments against the
municipality under section 475.52, subdivision 6, or any charter
authority.
(12) All other obligations which under the provisions of
law authorizing their issuance are not to be included in
computing the net debt of the municipality.
Sec. 24. Minnesota Statutes 2004, section 475.52,
subdivision 1, is amended to read:
Subdivision 1. [STATUTORY CITIES.] Any statutory city may
issue bonds or other obligations for the acquisition or
betterment of public buildings, means of garbage disposal,
hospitals, nursing homes, homes for the aged, schools,
libraries, museums, art galleries, parks, playgrounds, stadia,
sewers, sewage disposal plants, subways, streets, sidewalks,
warning systems; for any utility or other public convenience
from which a revenue is or may be derived; for a permanent
improvement revolving fund; for changing, controlling or
bridging streams and other waterways; for the acquisition and
betterment of bridges and roads within two miles of the
corporate limits; for the acquisition of development rights in
the form of conservation easements under chapter 84C; and for
acquisition of equipment for snow removal, street construction
and maintenance, or fire fighting. Without limitation by the
foregoing the city may issue bonds to provide money for any
authorized corporate purpose except current expenses.
Sec. 25. Minnesota Statutes 2004, section 475.52,
subdivision 3, is amended to read:
Subd. 3. [COUNTIES.] Any county may issue bonds for the
acquisition or betterment of courthouses, county administrative
buildings, health or social service facilities, correctional
facilities, law enforcement centers, jails, morgues, libraries,
parks, and hospitals, for roads and bridges within the county or
bordering thereon and for road equipment and machinery and for
ambulances and related equipment; for the acquisition of
development rights in the form of conservation easements under
chapter 84C, and for capital equipment for the administration
and conduct of elections providing the equipment is uniform
countywide, except that the power of counties to issue bonds in
connection with a library shall not exist in Hennepin County.
Sec. 26. Minnesota Statutes 2004, section 475.52,
subdivision 4, is amended to read:
Subd. 4. [TOWNS.] Any town may issue bonds for the
acquisition and betterment of town halls, town roads and
bridges, nursing homes and homes for the aged, and for
acquisition of equipment for snow removal, road construction or
maintenance, and fire fighting; for the acquisition of
development rights in the form of conservation easements under
chapter 84C; and for the acquisition and betterment of any
buildings to house and maintain town equipment.
Sec. 27. Minnesota Statutes 2004, section 475.521,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For purposes of this
section, the following terms have the meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment
of public lands, buildings or other improvements for the purpose
of a city hall, town hall, library, public safety facility, and
public works facility. An improvement must have an expected
useful life of five years or more to qualify. Capital
improvement does not include light rail transit or any activity
related to it, or a park, library, road, bridge, administrative
building other than a city or town hall, or land for any of
those facilities.
(c) "City" "Municipality" means a home rule charter or
statutory city or a town described in section 368.01,
subdivision 1 or 1a.
Sec. 28. Minnesota Statutes 2004, section 475.521,
subdivision 2, is amended to read:
Subd. 2. [ELECTION REQUIREMENT.] (a) Bonds issued by a
city municipality to finance capital improvements under an
approved capital improvements plan are not subject to the
election requirements of section 475.58. The bonds are subject
to the net debt limits under section 475.53. The bonds must be
approved by an affirmative vote of three-fifths of the members
of a five-member city council governing body. In the case of
a city council governing body having more or less than five
members, the bonds must be approved by a vote of at least
two-thirds of the city council members of the governing body.
(b) Before the issuance of bonds qualifying under this
section, the city municipality must publish a notice of its
intention to issue the bonds and the date and time of the
hearing to obtain public comment on the matter. The notice must
be published in the official newspaper of the city municipality
or in a newspaper of general circulation in the city
municipality. Additionally, the notice may be posted on the
official Web site, if any, of the city municipality. The notice
must be published at least 14 but not more than 28 days before
the date of the hearing.
(c) A city municipality may issue the bonds only after
obtaining the approval of a majority of the voters voting on the
question of issuing the obligations, if a petition requesting a
vote on the issuance is signed by voters equal to five percent
of the votes cast in the city municipality in the last general
election and is filed with the city clerk within 30 days after
the public hearing. The commissioner of revenue shall prepare a
suggested form of the question to be presented at the election.
Sec. 29. Minnesota Statutes 2004, section 475.521,
subdivision 3, is amended to read:
Subd. 3. [CAPITAL IMPROVEMENT PLAN.] (a) A city
municipality may adopt a capital improvement plan. The plan
must cover at least a five-year period beginning with the date
of its adoption. The plan must set forth the estimated
schedule, timing, and details of specific capital improvements
by year, together with the estimated cost, the need for the
improvement, and sources of revenue to pay for the improvement.
In preparing the capital improvement plan, the city council
governing body must consider for each project and for the
overall plan:
(1) the condition of the city's municipality's existing
infrastructure, including the projected need for repair or
replacement;
(2) the likely demand for the improvement;
(3) the estimated cost of the improvement;
(4) the available public resources;
(5) the level of overlapping debt in the city municipality;
(6) the relative benefits and costs of alternative uses of
the funds;
(7) operating costs of the proposed improvements; and
(8) alternatives for providing services most efficiently
through shared facilities with other cities municipalities or
local government units.
(b) The capital improvement plan and annual amendments to
it must be approved by the city council governing body after
public hearing.
Sec. 30. Minnesota Statutes 2004, section 475.521,
subdivision 4, is amended to read:
Subd. 4. [LIMITATIONS ON AMOUNT.] A city municipality may
not issue bonds under this section if the maximum amount of
principal and interest to become due in any year on all the
outstanding bonds issued under this section, including the bonds
to be issued, will equal or exceed 0.05367 0.16 percent of the
taxable market value of property in the county municipality.
Calculation of the limit must be made using the taxable market
value for the taxes payable year in which the obligations are
issued and sold. In the case of a municipality with a
population of 2,500 or more, the bonds are subject to the net
debt limits under section 475.53. In the case of a shared
facility in which more than one municipality participates, upon
compliance by each participating municipality with the
requirements of subdivision 2, the limitations in this
subdivision and the net debt represented by the bonds shall be
allocated to each participating municipality in proportion to
its required financial contribution to the financing of the
shared facility, as set forth in the joint powers agreement
relating to the shared facility. This section does not limit
the authority to issue bonds under any other special or general
law.
Sec. 31. Minnesota Statutes 2004, section 475.58,
subdivision 3b, is amended to read:
Subd. 3b. [STREET RECONSTRUCTION.] (a) A municipality may,
without regard to the election requirement under subdivision 1,
issue and sell obligations for street reconstruction, if the
following conditions are met:
(1) the streets are reconstructed under a street
reconstruction plan that describes the streets to be
reconstructed, the estimated costs, and any planned
reconstruction of other streets in the municipality over the
next five years, and the plan and issuance of the obligations
has been approved by a vote of all of the members of the
governing body following a public hearing for which notice has
been published in the official newspaper at least ten days but
not more than 28 days prior to the hearing; and
(2) if a petition requesting a vote on the issuance is
signed by voters equal to five percent of the votes cast in the
last municipal general election and is filed with the municipal
clerk within 30 days of the public hearing, the municipality may
issue the bonds only after obtaining the approval of a majority
of the voters voting on the question of the issuance of the
obligations.
(b) Obligations issued under this subdivision are subject
to the debt limit of the municipality and are not excluded from
net debt under section 475.51, subdivision 4.
(c) For purposes of this subdivision, street reconstruction
includes utility replacement and relocation and other activities
incidental to the street reconstruction, but turn lanes and
other improvements having a substantial public safety function,
realignments, other modifications to intersect with state and
county roads, and the local share of state and county road
projects.
(d) Except in the case of turn lanes, safety improvements,
realignments, intersection modifications, and the local share of
state and county road projects, street reconstruction does not
include the portion of project cost allocable to widening a
street or adding curbs and gutters where none previously existed.
Sec. 32. Minnesota Statutes 2004, section 477A.013, is
amended by adding a subdivision to read:
Subd. 10. [LEVY ADJUSTMENTS FOR AID
DECREASES.] Notwithstanding any local ordinance or charter
provision, a city whose certified aid under subdivision 9 is
less than the amount it received in the previous year under the
same subdivision may increase its levy payable in the same year
as the certified aid is paid by an amount equal to the aid
decrease for that year.
[EFFECTIVE DATE.] This section is effective beginning with
property tax levies payable in 2006 and thereafter.
Sec. 33. Laws 1996, chapter 412, article 5, section 24, is
amended to read:
Sec. 24. [BONDS PAID FROM TACONITE PRODUCTION TAX
REVENUES.]
Subdivision 1. [REFUNDING BONDS.] The appropriation of
funds from the distribution of taconite production tax revenues
to the taconite environmental protection tax fund and the
northeast Minnesota economic protection fund made by Laws 1988,
chapter 718, article 7, sections 62 and 63, Laws 1989, chapter
329, article 5, section 20, Laws 1990, chapter 604, article 8,
section 13, Laws 1992, chapter 499, article 5, section 29, and
by sections 18 to 20 Laws 1996, chapter 412, article 5, sections
20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to
26, shall continue to apply to bonds issued under Minnesota
Statutes, chapter 475, to refund bonds originally issued
pursuant to those chapters.
Subd. 2. [LOCAL PAYMENTS.] School districts that are
required in Laws 1988, chapter 718, article 7, sections 62 and
63, Laws 1989, chapter 329, article 5, section 20, Laws 1990,
chapter 604, article 8, section 13, Laws 1992, chapter 499,
article 5, section 29, and by sections 18 to 20 Laws 1996,
chapter 412, article 5, sections 20 to 22, and Laws 2000,
chapter 489, article 5, sections 24 to 26, to impose levies to
pay debt service on the bonds issued under those provisions to
the extent the principal and interest on the bonds is not paid
by distributions from the taconite environmental protection fund
and the northeast Minnesota economic protection trust, may pay
their portion of the principal and interest from any funds
available to them. To the extent a school district uses funds
other than the proceeds of a property tax levy to pay its share
of the principal and interest on the bonds, the requirement to
impose a property tax to pay the local share does not apply to
the school district.
Sec. 34. Laws 2003, chapter 127, article 12, section 38,
is amended to read:
Sec. 38. [MEMBERS MUST AUTHORITY TO LEVY TAXES FOR
AUTHORITY.]
(a) A member shall, at the request of the authority, levy a
tax in any year for the benefit of the authority. The authority
is a special taxing district as defined in Minnesota Statutes,
section 275.066, clause (13), with the power to adopt and
certify a property tax levy to the county auditor. The
authority may levy a tax in any year for the benefit of the
authority. The tax is, for each member, is a pro rata portion
of the total amount of tax requested by the authority based on
the taxable market value within a the member's jurisdiction, but
in no event may the tax in any year exceed 0.01813 percent of
taxable market value. For purposes of this section, "taxable
market value" has the meaning as given in Minnesota Statutes,
section 273.032.
(b) The treasurer of each member city or town shall, within
15 days after receiving the property tax settlements from the
county treasurer, pay to the treasurer of the authority the
amount collected for this purpose. The money must be used by
the authority for the purposes provided by sections 35 to 41.
[EFFECTIVE DATE.] This section is effective for taxes
levied in 2005, payable in 2006, and thereafter.
Sec. 35. [CITY OF BEMIDJI; DURATION EXTENSION FOR TAX
ABATEMENT.]
Notwithstanding the limitation in Minnesota Statutes,
section 469.1813, subdivision 6, the city of Bemidji may extend
the duration of the tax abatement given to support development
within the fairgrounds district of the city for an additional
four years beyond the duration permitted under that section.
Sec. 36. [TOWN OF WHITE; OBLIGATIONS AUTHORIZED.]
Subdivision 1. [OBLIGATIONS.] Notwithstanding any
provision of law or charter to the contrary, the town of White
may pledge its general obligation, as defined in Minnesota
Statutes, section 475.51, subdivision 10, to secure the
financing of local improvements as provided in this section.
Subd. 2. [SPECIAL RULES.] (a) The obligations are subject
to the provisions of Minnesota Statutes, chapter 429, except as
provided in this subdivision.
(b) The obligations must be issued to finance:
(1) the cost of local improvements described in Minnesota
Statutes, section 429.021, located within the area referred to
in Laws 2003, chapter 119, section 2;
(2) any reserves required to market the obligation; and
(3) the costs of issuing the obligations.
(c) The obligations must be additionally secured by special
assessments levied or to be levied by the city of Biwabik within
the area referred to in paragraph (b).
(d) The pledge of special assessments by the city of
Biwabik for the payment of the obligations must be made by
written agreement by and between the town of White and the city
of Biwabik and must be filed with the county auditor.
(e) Notwithstanding Minnesota Statutes, section 475.58, no
election is required to approve the obligations.
(f) The obligations are not included in computing any debt
limitation applicable to the town of White or the city of
Biwabik, and the levy of taxes under Minnesota Statutes, section
475.61, to pay principal of and interest on the obligations is
not subject to any levy limitation.
[EFFECTIVE DATE.] This section is effective upon local
approval by the town of White and the city of Biwabik in
compliance with the requirements of Minnesota Statutes, section
645.021.
Sec. 37. [SAUK RIVER WATERSHED DISTRICT.]
Notwithstanding Minnesota Statutes, section 103D.905,
subdivision 3, the Sauk River Watershed District may annually
levy up to 0.01 percent of taxable market value for its general
fund.
[EFFECTIVE DATE.] This section is effective, without local
approval, beginning with the taxes levied in 2005, payable in
2006.
Sec. 38. [CITY OF ST. PAUL; RIVERCENTRE COMPLEX
OPERATION.]
Subdivision 1. [DEFINITIONS.] (a) For the purposes of this
section, the terms defined in this subdivision have the meanings
given them.
(b) "City" means the city of St. Paul, its mayor, city
council, and any other board, authority, commission, or officer
authorized by law, charter, or ordinance to exercise city powers
of the nature referred to in this section.
(c) "RiverCentre complex" means collectively the
auditorium; convention, conference and education center; arena;
and parking ramp facilities presently and commonly known as the
Roy Wilkins Auditorium, St. Paul RiverCentre, Xcel Energy
Center, and RiverCentre Parking Ramp, including all property,
real or personal, tangible or intangible, located in the city,
intended to be used as part of the RiverCentre complex or
additions to or extensions of it.
Subd. 2. [CREATION OF NONPROFIT ORGANIZATION.] As required
under Minnesota Statutes, section 465.717, and notwithstanding
any other law, city charter provision, or ordinance to the
contrary, the city of St. Paul may participate in the creation
of a nonprofit organization for the purposes provided in this
section.
Subd. 3. [GOVERNING BOARD.] (a) The mayor of the city,
subject to approval by the city council, shall appoint a
majority of the members of the governing board of the nonprofit
organization performing all or a part of the activities
necessary to carry out the purposes specified in this section.
The mayor may designate any officer or employee of the city to
serve as a member of the governing board of any nonprofit
organization.
(b) In addition to the appointments made by the mayor under
paragraph (a), the mayor shall designate three members of the
city council to serve on the governing board of the nonprofit
organization.
(c) Notwithstanding any provision contained in the articles
of incorporation and bylaws of the nonprofit organization, any
member of the governing board appointed by the mayor may be
removed only by the mayor for cause.
(d) The governing board of the nonprofit organization shall
select, subject to the approval of the mayor, a president to
serve as chief executive officer and general manager of the
nonprofit organization.
(e) The procedures in Minnesota Statutes, section 317A.255,
subdivision 1, paragraph (b), relating to director conflicts of
interest, are not required if the contract or other transaction
is between the city and the nonprofit organization.
Subd. 4. [RIVERCENTRE MANAGEMENT; AUTHORITY TO CONTRACT
WITH NONPROFIT ORGANIZATION.] The city may enter into an
agreement with the nonprofit organization created in subdivision
2 to equip, maintain, manage, and operate all or a portion of
the RiverCentre complex and to manage and operate a convention
bureau to market and promote the city as a tourist or convention
center. Except as otherwise provided in this section, the
nonprofit organization may only contract and utilize and expend
funds for these purposes under the direction of its governing
board, subject to the accounting, financial reporting, and other
conditions that the city may prescribe in a contract made under
this section between the city and the nonprofit organization.
The nonprofit organization may use the services of the office of
the city attorney and the city's purchasing department. All
activities performed to carry out these purposes are deemed to
be for a public purpose.
Subd. 5. [BONDHOLDERS' RIGHTS AND RIVERCENTRE COMPLEX TAX
EXEMPTIONS PRESERVED.] (a) The city must protect the rights of
holders of bonds issued for the RiverCentre complex, including
preserving the tax-exempt status of the bonds.
(b) The use and operation of the RiverCentre complex by the
nonprofit organization with which the city contracts under this
act is a use, lease, or occupancy for public, governmental, and
municipal purposes, and the complex is exempt from taxation by
the state or any political subdivision of the state during such
use, to the extent it would be exempt if the complex was
equipped, maintained, managed, and operated by the city.
(c) Gross receipts of tickets and admissions to events at
the RiverCentre complex sponsored by the nonprofit organization
created in this section do not qualify for the sales tax
exemption under Minnesota Statutes, section 297A.70, subdivision
10.
Subd. 6. [APPLICABLE GENERAL LAWS.] The following statutes
apply to the nonprofit organization with which the city
contracts under this section the same as they apply to the city:
(1) Minnesota Statutes, chapter 13D, the Minnesota Open
Meeting Law; and
(2) Minnesota Statutes, chapter 13, the Government Data
Practices Act.
Subd. 7. [SUCCESSION.] The nonprofit organization with
which the city contracts under this section is the successor to
all powers, rights, assets, privileges, and interests held and
enjoyed by the RiverCentre authority on the effective date of
this section, and established by the provisions of Laws 1967,
chapter 459, sections 1, 2, 4, and 8, subdivisions 2 and 3,
clause (3), as amended; Laws 1982, chapter 523, article 25,
sections 4 and 5; Laws 1998, chapter 404, sections 81 and 82;
and Minnesota Statutes, section 297A.98. On the effective date
of the contract between the city and the nonprofit organization
authorized by this section, the RiverCentre authority ceases to
exist for only so long as the contract is in effect, and all
other laws or provisions specifically relating to the
RiverCentre authority and the RiverCentre complex that are not
otherwise referenced in this section, do not apply to the
nonprofit organization.
Subd. 8. [LIABILITY.] The nonprofit organization with
which the city contracts under this section is a "municipality,"
and the officers, directors, employees, and agents of the
nonprofit organization are "employees, officers, or agents,"
under Minnesota Statutes, chapter 466, relating to tort
liability. The city must defend, save harmless, and indemnify
the nonprofit organization, including the nonprofit's officers,
directors, employees, and agents, against any claim or demand
arising out of the nonprofit organization's performance under
the contract.
[EFFECTIVE DATE.] This section is effective the day after
the city council and the chief clerical officer of the city of
St. Paul have timely completed their compliance with Minnesota
Statutes, section 645.023, subdivisions 2 and 3.
Sec. 39. [IRON RANGE RESOURCES AND REHABILITATION
COMMISSIONER; BONDS AUTHORIZED.]
Subdivision 1. [ISSUANCE; PURPOSE.] Notwithstanding any
provision of Minnesota Statutes, chapter 298, to the contrary,
the commissioner of Iron Range resources and rehabilitation may
issue revenue bonds in a principal amount of $15,000,000 in one
or more series, and bonds to refund those bonds. The proceeds
of the bonds must be used to make grants to school districts
located in the taconite tax relief area defined in Minnesota
Statutes, section 273.134, or the taconite assistance area
defined in Minnesota Statutes, section 273.1341, to be used by
the school districts to pay for health, safety, and maintenance
improvements but only if the school district has levied the
maximum amount allowable under law for those purposes.
Subd. 2. [APPROPRIATION.] There is annually appropriated
from the distribution of taconite production tax revenues to the
taconite environmental protection fund pursuant to Minnesota
Statutes, section 298.28, subdivision 11, and to the Douglas J.
Johnson economic protection trust pursuant to Minnesota
Statutes, section 298.28, subdivisions 9 and 11, in equal
shares, an amount sufficient to pay when due the principal and
interest on the bonds issued pursuant to subdivision 1. If the
annual distribution to the Douglas J. Johnson economic
protection trust is insufficient to pay its share after
fulfilling any obligations of the trust under Minnesota
Statutes, section 298.225 or 298.293, the deficiency is
appropriated from the taconite environmental protection fund.
The appropriation under this subdivision terminates upon payment
or maturity of the last of the bonds issued under this section.
Subd. 3. [CREDIT ENHANCEMENT.] The bonds issued under this
section are "debt obligations" and the commissioner of Iron
Range resources and rehabilitation is a "district" for purposes
of Minnesota Statutes, section 126C.55, provided that advances
made under Minnesota Statutes, section 126C.55, subdivision 2,
are not subject to Minnesota Statutes, section 126C.55,
subdivisions 4 to 7.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 40. [CROW WING COUNTY SEWER DISTRICT; PILOT PROJECT.]
Subdivision 1. [POWERS.] In addition to the powers granted
in Minnesota Statutes, chapter 116A, the county board for Crow
Wing County, by resolution, may grant the following powers to a
sewer district created by the county board under Minnesota
Statutes, chapter 116A:
(1) provide that an authorized representative of the
district, after presentation of credentials, may enter at
reasonable times any premise to inspect or maintain an
individual sewage treatment system, as defined in Minnesota
Statutes, section 115.55, subdivision 1, paragraph (g);
(2) include areas of the county within the sewer district
that are not contiguous and establish different systems for
wastewater treatment in specific areas of the county;
(3) provide that each special service area that is managed
by the sewer system or combination thereof constitutes a system
under Minnesota Statutes, chapter 116A;
(4) delegate to the sewer district, by resolution, all or a
portion of its administrative and enforcement obligations with
respect to individual sewage treatment systems under Minnesota
Statutes, chapter 115, and rules adopted by the Pollution
Control Agency;
(5) modify any individual sewage treatment system to
provide reasonable access to it for inspection and maintenance;
and
(6) neither the approval nor the waiver of the county
board, nor confirmation by order of the district court, is
required for the sewer commission to exercise the powers set
forth in Minnesota Statutes, section 116A.24.
Subd. 2. [REPORT.] If the Crow Wing County Board exercises
the powers granted under subdivision 1, the county shall report
by January 15, 2009, to the senate and house committees with
jurisdiction over environmental policy and taxes on the
establishment and operation of the sewer district. The report
must include:
(1) a description of the implementation of the additional
powers granted under subdivision 1;
(2) available information on the effectiveness of the
additional powers to control pollution in the county; and
(3) any recommendations for changes to Minnesota Statutes,
chapter 116A, to broaden the authority for sewer districts to
include any of the additional powers granted under subdivision 1.
[EFFECTIVE DATE.] This section is effective the day
following compliance with Minnesota Statutes, section 645.021,
subdivision 2.
Sec. 41. [CITY OF WHITE BEAR LAKE.]
Subdivision 1. [PAYMENT REQUIRED.] The commissioner of
revenue must make payments of $52,482 on each of July 20, 2005,
and December 26, 2005, to the city of White Bear Lake.
Subd. 2. [APPROPRIATION.] $104,964 is appropriated from
the general fund to the commissioner of revenue to make the
payments required in this section.
Sec. 42. [APPLICATION.]
Sections 18, 19, 20, and 43 apply in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 43. [REPEALER.]
Minnesota Statutes 2004, sections 473.197, subdivisions 1,
2, 3, and 5; and 473.39, subdivision 1f, are repealed.
Sec. 44. [EFFECTIVE DATE.]
(a) Section 1 is effective the day after the city council
and the chief clerical officer of the city of St. Paul have
timely completed their compliance with Minnesota Statutes,
section 645.023, subdivisions 2 and 3.
(b) Except as otherwise provided, this article is effective
the day following final enactment.
ARTICLE 2
TAX INCREMENT FINANCING
Section 1. Minnesota Statutes 2004, section 116J.556, is
amended to read:
116J.556 [LOCAL MATCH REQUIREMENT.]
(a) In order to qualify for a grant under sections 116J.551
to 116J.557, the municipality must pay for at least one-quarter
of the project costs as a local match. The municipality shall
pay an amount of the project costs equal to at least 12 percent
of the cleanup costs from the municipality's general fund, a
property tax levy for that purpose, or other unrestricted money
available to the municipality (excluding tax increments). These
unrestricted moneys may be spent for project costs, other than
cleanup costs, and qualify for the local match payment equal to
12 percent of cleanup costs. The rest of the local match may be
paid with tax increments, regional, state, or federal money
available for the redevelopment of brownfields or any other
money available to the municipality.
(b) If the development authority establishes a tax
increment financing district or hazardous substance subdistrict
on the site to pay for part of the local match requirement, the
district or subdistrict must be decertified when an amount of
tax increments equal to no more than three times the costs of
implementing the response action plan for the site and the
administrative costs for the district or subdistrict have been
received, after deducting the amount of the state grant.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2004, section 272.02,
subdivision 64, is amended to read:
Subd. 64. [JOB OPPORTUNITY BUILDING ZONE PROPERTY.] (a)
Improvements to real property, and personal property, classified
under section 273.13, subdivision 24, and located within a job
opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.
(b) Improvements to real property, and tangible personal
property, of an agricultural production facility located within
an agricultural processing facility zone, designated under
section 469.314, is exempt from ad valorem taxes levied under
chapter 275.
(c) For property to qualify for exemption under paragraph
(a), the occupant must be a qualified business, as defined in
section 469.310.
(d) The exemption applies beginning for the first
assessment year after designation of the job opportunity
building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that
begins during the duration of the job opportunity building zone
and to property occupied by July 1 of the assessment year by a
qualified business. This exemption does not apply to:
(1) the levy under section 475.61 or similar levy
provisions under any other law to pay general obligation bonds;
or
(2) a levy under section 126C.17, if the levy was approved
by the voters before the designation of the job opportunity
building zone.
(e) This subdivision does not apply to captured net tax
capacity in a tax increment financing district to the extent
necessary to meet the debt repayment obligations of the
authority if the property is also located within an agricultural
processing zone.
[EFFECTIVE DATE.] This section is effective beginning for
taxes payable in 2006.
Sec. 3. Minnesota Statutes 2004, section 272.0212,
subdivision 1, is amended to read:
Subdivision 1. [EXEMPTION.] All qualified property in a
zone is exempt to the extent and for a period up to the duration
provided by the zone designation and under sections 469.1731 to
469.1735.
[EFFECTIVE DATE.] This section is effective for development
agreements approved after the day following final enactment and
beginning for property taxes payable in 2006.
Sec. 4. Minnesota Statutes 2004, section 272.0212,
subdivision 2, is amended to read:
Subd. 2. [LIMITS ON EXEMPTION.] (a) Property in a zone is
not exempt under this section from the following:
(1) special assessments;
(2) ad valorem property taxes specifically levied for the
payment of principal and interest on debt obligations; and
(3) all taxes levied by a school district, except school
referendum levies as defined in section 126C.17.
(b) The city may limit the property tax exemption to a
shorter period than the duration of the zone or to a percentage
of the property taxes payable or both.
[EFFECTIVE DATE.] This section is effective for development
agreements approved after the day following final enactment and
beginning for property taxes payable in 2006.
Sec. 5. Minnesota Statutes 2004, section 469.174,
subdivision 11, is amended to read:
Subd. 11. [HOUSING DISTRICT.] "Housing district" means a
type of tax increment financing district which consists of a
project, or a portion of a project, intended for occupancy, in
part, by persons or families of low and moderate income, as
defined in chapter 462A, Title II of the National Housing Act of
1934, the National Housing Act of 1959, the United States
Housing Act of 1937, as amended, Title V of the Housing Act of
1949, as amended, any other similar present or future federal,
state, or municipal legislation, or the regulations promulgated
under any of those acts. A district does not qualify as a
housing district under this subdivision if the fair market value
of the improvements which are constructed in the district for
commercial uses or for uses other than low and moderate income
housing consists of more than 20 percent of the total fair
market value of the planned improvements in the development plan
or agreement. The fair market value of the improvements may be
determined using the cost of construction, capitalized income,
or other appropriate method of estimating market value, and that
satisfies the requirements of section 469.1761. Housing project
means a project, or a portion of a project, that meets all of
the qualifications of a housing district under this subdivision,
whether or not actually established as a housing district.
[EFFECTIVE DATE.] This section is effective for districts
for which the request for certification was filed with the
county auditor after October 5, 1989, except (1) the new
language is effective for requests for certification made after
June 30, 2005, and (2) the fair market value of the improvements
which are constructed for commercial uses in a district for
which the request for certification was filed with the county
auditor after October 5, 1989, and before July 1, 2005, may not
exceed more than 20 percent of total fair market value of the
planned improvements in the development plan or agreement.
Sec. 6. Minnesota Statutes 2004, section 469.174,
subdivision 25, is amended to read:
Subd. 25. [INCREMENT.] "Increment," "tax increment," "tax
increment revenues," "revenues derived from tax increment," and
other similar terms for a district include:
(1) taxes paid by the captured net tax capacity, but
excluding any excess taxes, as computed under section 469.177;
(2) the proceeds from the sale or lease of property,
tangible or intangible, to the extent the property was purchased
by the authority with tax increments;
(3) principal and interest received on loans or other
advances made by the authority with tax increments; and
(4) interest or other investment earnings on or from tax
increments;
(5) repayments or return of tax increments made to the
authority under agreements for districts for which the request
for certification was made after August 1, 1993; and
(6) the market value homestead credit paid to the authority
under section 273.1384.
[EFFECTIVE DATE.] This section is effective for tax
increment financing districts, regardless of when the request
for certification was made, including districts for which the
request for certification was made before August 1, 1979,
provided that the amendment to clause (2) applies only to the
extent that the underlying provisions of clause (2) apply to the
district and to the sale or lease under prior law. This
effective date does not affect the application of clause (1),
(3), or (4).
Sec. 7. Minnesota Statutes 2004, section 469.175,
subdivision 1, is amended to read:
Subdivision 1. [TAX INCREMENT FINANCING PLAN.] A tax
increment financing plan shall contain:
(1) a statement of objectives of an authority for the
improvement of a project;
(2) a statement as to the development program for the
project, including the property within the project, if any, that
the authority intends to acquire, identified by parcel number,
identifiable property name, block, or other appropriate means
indicating the area in which the authority intends to acquire
properties;
(3) a list of any development activities that the plan
proposes to take place within the project, for which contracts
have been entered into at the time of the preparation of the
plan, including the names of the parties to the contract, the
activity governed by the contract, the cost stated in the
contract, and the expected date of completion of that activity;
(4) identification or description of the type of any other
specific development reasonably expected to take place within
the project, and the date when the development is likely to
occur;
(5) estimates of the following:
(i) cost of the project, including administrative expenses,
except that if part of the cost of the project is paid or
financed with increment from the tax increment financing
district, the tax increment financing plan for the district must
contain an estimate of the amount of the cost of the project,
including administrative expenses, that will be paid or financed
with tax increments from the district;
(ii) amount of bonded indebtedness to be incurred;
(iii) sources of revenue to finance or otherwise pay public
costs;
(iv) the most recent net tax capacity of taxable real
property within the tax increment financing district and within
any subdistrict;
(v) the estimated captured net tax capacity of the tax
increment financing district at completion; and
(vi) the duration of the tax increment financing district's
and any subdistrict's existence;
(6) statements of the authority's alternate estimates of
the impact of tax increment financing on the net tax capacities
of all taxing jurisdictions in which the tax increment financing
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 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 district or
subdistrict;
(7) identification and description of studies and analyses
used to make the determination set forth in subdivision 3,
clause (2); and
(8) identification of all parcels to be included in the
district or any subdistrict.
[EFFECTIVE DATE.] This section is effective for tax
increment financing plans and amendments to tax increment
financing plans approved after June 30, 2005.
Sec. 8. Minnesota Statutes 2004, section 469.175,
subdivision 2, is amended to read:
Subd. 2. [CONSULTATIONS; COMMENT AND FILING.] (a) Before
formation of a tax increment financing district, the authority
shall provide the county auditor and clerk of the school board
with the proposed tax increment financing plan for the district
and the authority's estimate of the fiscal and economic
implications of the proposed tax increment financing district.
The authority must provide the proposed tax increment financing
plan and the information on the fiscal and economic implications
of the plan to the county auditor and the clerk of the school
district board at least 30 days before the public hearing
required by subdivision 3. The information on the fiscal and
economic implications may be included in or as part of the tax
increment financing plan. The county auditor and clerk of the
school board shall provide copies to the members of the boards,
as directed by their respective boards. The 30-day requirement
is waived if the boards of the county and school district submit
written comments on the proposal and any modification of the
proposal to the authority after receipt of the information.
(b) For purposes of this subdivision, "fiscal and economic
implications of the proposed tax increment financing district"
includes:
(1) an estimate of the total amount of tax increment that
will be generated over the life of the district;
(2) a description of the probable impact of the district on
city-provided services such as police and fire protection,
public infrastructure, and borrowing costs attributable to the
district;
(3) the estimated amount of tax increments over the life of
the district that would be attributable to school district
levies, assuming the school district's share of the total local
tax rate for all taxing jurisdictions remained the same;
(4) the estimated amount of tax increments over the life of
the district that would be attributable to county levies,
assuming the county's share of the total local tax rate for all
taxing jurisdictions remained the same; and
(5) any additional information requested by the county or
the school district that would enable it to determine additional
costs that will accrue to it due to the development proposed for
the district.
[EFFECTIVE DATE.] This section is effective for all
districts for which certification is requested after December
31, 2005.
Sec. 9. Minnesota Statutes 2004, section 469.175,
subdivision 4a, is amended to read:
Subd. 4a. [FILING PLAN WITH STATE.] (a) The authority must
file a copy of the tax increment financing plan and amendments
to the plan with the commissioner of revenue and the state
auditor. The authority must also file a copy of the development
plan or the project plan for the project area with the
commissioner of revenue. The commissioner of revenue shall
provide a copy of a plan to the state auditor upon request and
the state auditor.
(b) Filing under this subdivision must be made within 60
days after the latest of:
(1) the filing of the request for certification of the
district;
(2) approval of the plan by the municipality; or
(3) adoption of the plan by the authority.
[EFFECTIVE DATE.] This section is effective for plans and
amendments approved after June 30, 2005.
Sec. 10. Minnesota Statutes 2004, section 469.175,
subdivision 5, is amended to read:
Subd. 5. [ANNUAL DISCLOSURE.] An annual statement showing
for each district the information required to be reported under
subdivision 6, paragraph (c), clauses (1), (2), (3), (11),
(12), (20), and (21) (18), and (19); the amounts of tax
increment received and expended in the reporting period; and any
additional information the authority deems necessary must be
published in a newspaper of general circulation in the
municipality that approved the tax increment financing plan.
The annual statement must inform readers that additional
information regarding each district may be obtained from the
authority, and must explain how the additional information may
be requested. The authority must publish the annual statement
for a year no later than August 15 of the next year. The
authority must identify the newspaper of general circulation in
the municipality to which the annual statement has been or will
be submitted for publication and provide a copy of the annual
statement to the county board, the county auditor, the school
board, the state auditor, and, if the authority is other than
the municipality, the governing body of the municipality on or
before August 1 of the year in which the statement must be
published.
The disclosure requirements imposed by this subdivision
apply to districts certified before, on, or after August 1, 1979.
[EFFECTIVE DATE.] This section is effective for reports
required to be filed after December 31, 2005.
Sec. 11. Minnesota Statutes 2004, section 469.175,
subdivision 6, is amended to read:
Subd. 6. [ANNUAL FINANCIAL REPORTING.] (a) The state
auditor shall develop a uniform system of accounting and
financial reporting for tax increment financing districts. The
system of accounting and financial reporting shall, as nearly as
possible:
(1) provide for full disclosure of the sources and uses of
public funds in the district;
(2) permit comparison and reconciliation with the affected
local government's accounts and financial reports;
(3) permit auditing of the funds expended on behalf of a
district, including a single district that is part of a
multidistrict project or that is funded in part or whole through
the use of a development account funded with tax increments from
other districts or with other public money;
(4) be consistent with generally accepted accounting
principles.
(b) The authority must annually submit to the state auditor
a financial report in compliance with paragraph (a). Copies of
the report must also be provided to the county auditor and to
the governing body of the municipality, if the authority is not
the municipality. To the extent necessary to permit compliance
with the requirement of financial reporting, the county and any
other appropriate local government unit or private entity must
provide the necessary records or information to the authority or
the state auditor as provided by the system of accounting and
financial reporting developed pursuant to paragraph (a). The
authority must submit the annual report for a year on or before
August 1 of the next year.
(c) The annual financial report must also include the
following items:
(1) the original net tax capacity of the district and any
subdistrict under section 469.177, subdivision 1;
(2) the net tax capacity for the reporting period of the
district and any subdistrict;
(3) the captured net tax capacity of the district;
(4) any fiscal disparity deduction from the captured net
tax capacity under section 469.177, subdivision 3;
(5) the captured net tax capacity retained for tax
increment financing under section 469.177, subdivision 2,
paragraph (a), clause (1);
(6) any captured net tax capacity distributed among
affected taxing districts under section 469.177, subdivision 2,
paragraph (a), clause (2);
(7) the type of district;
(8) the date the municipality approved the tax increment
financing plan and the date of approval of any modification of
the tax increment financing plan, the approval of which requires
notice, discussion, a public hearing, and findings under
subdivision 4, paragraph (a);
(9) the date the authority first requested certification of
the original net tax capacity of the district and the date of
the request for certification regarding any parcel added to the
district;
(10) the date the county auditor first certified the
original net tax capacity of the district and the date of
certification of the original net tax capacity of any parcel
added to the district;
(11) the month and year in which the authority has received
or anticipates it will receive the first increment from the
district;
(12) the date the district must be decertified;
(13) for the reporting period and prior years of the
district, the actual amount received from, at least, the
following categories:
(i) tax increments paid by the captured net tax capacity
retained for tax increment financing under section 469.177,
subdivision 2, paragraph (a), clause (1), but excluding any
excess taxes;
(ii) tax increments that are interest or other investment
earnings on or from tax increments;
(iii) tax increments that are proceeds from the sale or
lease of property, tangible or intangible, purchased by the
authority with tax increments;
(iv) tax increments that are repayments of loans or other
advances made by the authority with tax increments;
(v) bond or loan proceeds;
(vi) special assessments;
(vii) grants; and
(viii) transfers from funds not exclusively associated with
the district; and
(ix) the market value homestead credit paid to the
authority under section 273.1384;
(14) for the reporting period and for the prior years of
the district, the actual amount expended for, at least, the
following categories:
(i) acquisition of land and buildings through condemnation
or purchase;
(ii) site improvements or preparation costs;
(iii) installation of public utilities, parking facilities,
streets, roads, sidewalks, or other similar public improvements;
(iv) administrative costs, including the allocated cost of
the authority;
(v) public park facilities, facilities for social,
recreational, or conference purposes, or other similar public
improvements; and
(vi) transfers to funds not exclusively associated with the
district;
(15) for properties sold to developers, the total cost of
the property to the authority and the price paid by the
developer;
(16) the amount of any payments and the value of any
in-kind benefits, such as physical improvements and the use of
building space, that are paid or financed with tax increments
and are provided to another governmental unit other than the
municipality during the reporting period;
(17) the amount of any payments for activities and
improvements located outside of the district that are paid for
or financed with tax increments;
(18) (16) the amount of payments of principal and interest
that are made during the reporting period on any nondefeased:
(i) general obligation tax increment financing bonds;
(ii) other tax increment financing bonds; and
(iii) notes and pay-as-you-go contracts;
(19) (17) the principal amount, at the end of the reporting
period, of any nondefeased:
(i) general obligation tax increment financing bonds;
(ii) other tax increment financing bonds; and
(iii) notes and pay-as-you-go contracts;
(20) (18) the amount of principal and interest payments
that are due for the current calendar year on any nondefeased:
(i) general obligation tax increment financing bonds;
(ii) other tax increment financing bonds; and
(iii) notes and pay-as-you-go contracts;
(21) (19) if the fiscal disparities contribution under
chapter 276A or 473F for the district is computed under section
469.177, subdivision 3, paragraph (a), the amount of increased
property taxes imposed on other properties in the municipality
that approved the tax increment financing plan as a result of
the fiscal disparities contribution;
(22) whether the tax increment financing plan or other
governing document permits increment revenues to be expended:
(i) to pay bonds, the proceeds of which were or may be
expended on activities outside of the district;
(ii) for deposit into a common bond fund from which money
may be expended on activities located outside of the district;
or
(iii) to otherwise finance activities located outside of
the tax increment financing district;
(23) (20) the estimate, if any, contained in the tax
increment financing plan of the amount of the cost of the
project, including administrative expenses, that will be paid or
financed with tax increment; and
(24) (21) any additional information the state auditor may
require.
(d) The commissioner of revenue shall prescribe the method
of calculating the increased property taxes under paragraph (c),
clause (21) (19), and the form of the statement disclosing this
information on the annual statement under subdivision 5.
(e) The reporting requirements imposed by this subdivision
apply to districts certified before, on, and after August 1,
1979.
[EFFECTIVE DATE.] This section is effective for reports
required to be filed after December 31, 2005.
Sec. 12. Minnesota Statutes 2004, section 469.176,
subdivision 2, is amended to read:
Subd. 2. [EXCESS INCREMENTS.] (a) The authority shall
annually determine the amount of excess increments for a
district, if any. This determination must be based on the tax
increment financing plan in effect on December 31 of the year
and the increments and other revenues received as of December 31
of the year. The authority must spend or return the excess
increments under paragraph (c) within nine months after the end
of the year.
(b) For purposes of this subdivision, "excess increments"
equals the excess of:
(1) total increments collected from the district since its
certification, reduced by any excess increments paid under
paragraph (c), clause (4), for a prior year, over
(2) the total costs authorized by the tax increment
financing plan to be paid with increments from the district,
reduced, but not below zero, by the sum of:
(i) the amounts of those authorized costs that have been
paid from sources other than tax increments from the district;
(ii) revenues, other than tax increments from the district,
that are dedicated for or otherwise required to be used to pay
those authorized costs and that the authority has received and
that are not included in item (i); and
(iii) the amount of principal and interest obligations due
on outstanding bonds after December 31 of the year and not
prepaid under paragraph (c) in a prior year; and
(iv) increased by the sum of the transfers of increments
made under section 469.1763, subdivision 6, to reduce deficits
in other districts made by December 31 of the year.
(c) The authority shall use excess increment only to do one
or more of the following:
(1) prepay any outstanding bonds;
(2) discharge the pledge of tax increment for any
outstanding bonds;
(3) pay into an escrow account dedicated to the payment of
any outstanding bonds; or
(4) return the excess amount to the county auditor who
shall distribute the excess amount to the city or town, county,
and school district in which the tax increment financing
district is located in direct proportion to their respective
local tax rates.
(d) For purposes of a district for which the request for
certification was made prior to August 1, 1979, excess
increments equal the amount of increments on hand on December
31, less the principal and interest obligations due on
outstanding bonds or advances, qualifying under subdivision 1c,
clauses (1), (2), and (5), after December 31 of the year and not
prepaid under paragraph (c).
(e) The county auditor must report to the commissioner of
education the amount of any excess tax increment distributed to
a school district within 30 days of the distribution.
(f) For purposes of this subdivision, "outstanding bonds"
means bonds which are secured by increments from the district.
[EFFECTIVE DATE.] This section is effective for districts,
regardless of when the request for certification was made, and
applies to calculations of excess increments beginning in
calendar year 2005.
Sec. 13. Minnesota Statutes 2004, section 469.176,
subdivision 4d, is amended to read:
Subd. 4d. [HOUSING DISTRICTS.] Revenue derived from tax
increment from a housing district must be used solely to finance
the cost of housing projects as defined in section sections
469.174, subdivision 11, and 469.1761. The cost of public
improvements directly related to the housing projects and the
allocated administrative expenses of the authority may be
included in the cost of a housing project.
[EFFECTIVE DATE.] This section is effective for all
districts to which the provisions of Minnesota Statutes, section
469.1761, apply.
Sec. 14. Minnesota Statutes 2004, section 469.1761,
subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENT IMPOSED.] (a) In order for a
tax increment financing district to qualify as a housing
district,:
(1) the income limitations provided in this section must be
satisfied; and
(2) no more than 20 percent of the square footage of
buildings that receive assistance from tax increments may
consist of commercial, retail, or other nonresidential uses.
(b) The requirements imposed by this section apply to
residential property receiving assistance financed with tax
increments, including interest reduction, land transfers at less
than the authority's cost of acquisition, utility service or
connections, roads, parking facilities, or other subsidies. The
provisions of this section do not apply to districts located in
a targeted area as defined in section 462C.02, subdivision 9,
clause (e).
[EFFECTIVE DATE.] This section is effective for districts
for which the request for certification was made after June 30,
2005.
Sec. 15. Minnesota Statutes 2004, section 469.1761,
subdivision 3, is amended to read:
Subd. 3. [RENTAL PROPERTY.] For residential rental
property, the property must satisfy the income requirements for
a qualified residential rental project as defined in section
142(d) of the Internal Revenue Code. A property also satisfies
the requirements of section 142(d) if 50 percent of the
residential units in the project are occupied by individuals
whose income is 80 percent or less of area median gross income.
The requirements of this subdivision apply for the duration of
the tax increment financing district.
[EFFECTIVE DATE.] This section is effective for districts
for which the request for certification was made after June 30,
2004.
Sec. 16. Minnesota Statutes 2004, section 469.1763,
subdivision 2, is amended to read:
Subd. 2. [EXPENDITURES OUTSIDE DISTRICT.] (a) For each tax
increment financing district, an amount equal to at least 75
percent of the total revenue derived from tax increments paid by
properties in the district must be expended on activities in the
district or to pay bonds, to the extent that the proceeds of the
bonds were used to finance activities in the district or to pay,
or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the
request for certification was made after June 30, 1995, the
in-district percentage for purposes of the preceding sentence is
80 percent. Not more than 25 percent of the total revenue
derived from tax increments paid by properties in the district
may be expended, through a development fund or otherwise, on
activities outside of the district but within the defined
geographic area of the project except to pay, or secure payment
of, debt service on credit enhanced bonds. For districts, other
than redevelopment districts for which the request for
certification was made after June 30, 1995, the pooling
percentage for purposes of the preceding sentence is 20
percent. The revenue derived from tax increments for the
district that are expended on costs under section 469.176,
subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and
without the district.
(b) In the case of a housing district, a housing project,
as defined in section 469.174, subdivision 11, is an activity in
the district.
(c) All administrative expenses are for activities outside
of the district, except that if the only expenses for activities
outside of the district under this subdivision are for the
purposes described in paragraph (d), administrative expenses
will be considered as expenditures for activities in the
district.
(d) The authority may elect, in the tax increment financing
plan for the district, to increase by up to ten percentage
points the permitted amount of expenditures for activities
located outside the geographic area of the district under
paragraph (a). As permitted by section 469.176, subdivision 4k,
the expenditures, including the permitted expenditures under
paragraph (a), need not be made within the geographic area of
the project. Expenditures that meet the requirements of this
paragraph are legally permitted expenditures of the district,
notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the
expenditures must:
(1) be used exclusively to assist housing that meets the
requirement for a qualified low-income building, as that term is
used in section 42 of the Internal Revenue Code;
(2) not exceed the qualified basis of the housing, as
defined under section 42(c) of the Internal Revenue Code, less
the amount of any credit allowed under section 42 of the
Internal Revenue Code; and
(3) be used to:
(i) acquire and prepare the site of the housing;
(ii) acquire, construct, or rehabilitate the housing; or
(iii) make public improvements directly related to the
housing.
(e) For a district created within a biotechnology and
health sciences industry zone as defined in section 469.330,
subdivision 6, tax increment derived from such a district may be
expended outside of the district but within the zone only for
expenditures required for the construction of public
infrastructure necessary to support the activities of the zone.
Sec. 17. Minnesota Statutes 2004, section 469.1763,
subdivision 6, is amended to read:
Subd. 6. [POOLING PERMITTED FOR DEFICITS.] (a) This
subdivision applies only to districts for which the request for
certification was made before August 1, 2001, and without regard
to whether the request for certification was made prior to
August 1, 1979.
(b) The municipality for the district may transfer
available increments from another tax increment financing
district located in the municipality, if the transfer is
necessary to eliminate a deficit in the district to which the
increments are transferred. A deficit in the district for
purposes of this subdivision means the lesser of the following
two amounts:
(1)(i) the amount due during the calendar year to pay
preexisting obligations of the district; minus
(ii) the total increments collected or to be collected from
properties located within the district that are available for
the calendar year including amounts collected in prior years
that are currently available; plus
(iii) total increments from properties located in other
districts in the municipality including amounts collected in
prior years that are available to be used to meet the district's
obligations under this section, excluding this subdivision, or
other provisions of law (but excluding a special tax under
section 469.1791 and the grant program under Laws 1997, chapter
231, article 1, section 19, or Laws 2001, First Special Session
chapter 5); or
(2) the reduction in increments collected from properties
located in the district for the calendar year as a result of the
changes in class rates in Laws 1997, chapter 231, article 1;
Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243,
and Laws 2001, First Special Session chapter 5, or the
elimination of the general education tax levy under Laws 2001,
First Special Session chapter 5.
The authority may compute the deficit amount under clause
(1) only (without regard to the limit under clause (2)) if the
authority makes an irrevocable commitment, by resolution, to use
increments from the district to which increments are to be
transferred and any transferred increments are only used to pay
preexisting obligations and administrative expenses for the
district that are required to be paid under section 469.176,
subdivision 4h, paragraph (a).
(c) A preexisting obligation means:
(1) bonds issued and sold before August 1, 2001, or bonds
issued pursuant to a binding contract requiring the issuance of
bonds entered into before July 1, 2001, and bonds issued to
refund such bonds or to reimburse expenditures made in
conjunction with a signed contractual agreement entered into
before August 1, 2001, to the extent that the bonds are secured
by a pledge of increments from the tax increment financing
district; and
(2) binding contracts entered into before August 1, 2001,
to the extent that the contracts require payments secured by a
pledge of increments from the tax increment financing district.
(d) The municipality may require a development authority,
other than a seaway port authority, to transfer available
increments including amounts collected in prior years that are
currently available for any of its tax increment financing
districts in the municipality to make up an insufficiency in
another district in the municipality, regardless of whether the
district was established by the development authority or another
development authority. This authority applies notwithstanding
any law to the contrary, but applies only to a development
authority that:
(1) was established by the municipality; or
(2) the governing body of which is appointed, in whole or
part, by the municipality or an officer of the municipality or
which consists, in whole or part, of members of the governing
body of the municipality. The municipality may use this
authority only after it has first used all available increments
of the receiving development authority to eliminate the
insufficiency and exercised any permitted action under section
469.1792, subdivision 3, for preexisting districts of the
receiving development authority to eliminate the insufficiency.
(e) The authority under this subdivision to spend tax
increments outside of the area of the district from which the
tax increments were collected:
(1) is an exception to the restrictions under section
469.176, subdivision subdivisions 4b, 4c, 4d, 4e, 4i, and 4j;
the expenditure limits under section 469.176, subdivision 1c;
and the other provisions of this section,; and the percentage
restrictions under subdivision 2 must be calculated after
deducting increments spent under this subdivision from the total
increments for the district; and
(2) applies notwithstanding the provisions of the Tax
Increment Financing Act in effect for districts for which the
request for certification was made before June 30, 1982, or any
other law to the contrary.
(f) If a preexisting obligation requires the development
authority to pay an amount that is limited to the increment from
the district or a specific development within the district and
if the obligation requires paying a higher amount to the extent
that increments are available, the municipality may determine
that the amount due under the preexisting obligation equals the
higher amount and may authorize the transfer of increments under
this subdivision to pay up to the higher amount. The existence
of a guarantee of obligations by the individual or entity that
would receive the payment under this paragraph is disregarded in
the determination of eligibility to pool under this
subdivision. The authority to transfer increments under this
paragraph may only be used to the extent that the payment of all
other preexisting obligations in the municipality due during the
calendar year have been satisfied.
(g) For transfers of increments made in calendar year 2005
and later, the reduction in increments as a result of the
elimination of the general education tax levy for purposes of
paragraph (b), clause (2), for a taxes payable year equals the
general education tax rate for the school district under
Minnesota Statutes 2000, section 273.1382, subdivision 1, for
taxes payable in 2001, multiplied by the captured tax capacity
of the district for the current taxes payable year.
[EFFECTIVE DATE.] This section applies to transfers of
increments made after the effective date of the original
enactment of Minnesota Statutes, section 469.1763, subdivision 6.
Sec. 18. Minnesota Statutes 2004, section 469.177,
subdivision 1, is amended to read:
Subdivision 1. [ORIGINAL NET TAX CAPACITY.] (a) Upon or
after adoption of a tax increment financing plan, the auditor of
any county in which the district is situated shall, upon request
of the authority, certify the original net tax capacity of the
tax increment financing district and that portion of the
district overlying any subdistrict as described in the tax
increment financing plan and shall certify in each year
thereafter the amount by which the original net tax capacity has
increased or decreased as a result of a change in tax exempt
status of property within the district and any subdistrict,
reduction or enlargement of the district or changes pursuant to
subdivision 4.
(b) If the classification under section 273.13 of property
located in a district changes to a classification that has a
different assessment ratio, the original net tax capacity of
that property must be redetermined at the time when its use is
changed as if the property had originally been classified in the
same class in which it is classified after its use is changed.
(c) The amount to be added to the original net tax capacity
of the district as a result of previously tax exempt real
property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant
to section 273.18 or, if that assessment was made more than one
year prior to the date of title transfer rendering the property
taxable, the net tax capacity assessed by the assessor at the
time of the transfer. If improvements are made to tax exempt
property after certification of the district and before the
parcel becomes taxable, the assessor shall, at the request of
the authority, separately assess the estimated market value of
the improvements. If the property becomes taxable, the county
auditor shall add to original net tax capacity, the net tax
capacity of the parcel, excluding the separately assessed
improvements. If substantial taxable improvements were made to
a parcel after certification of the district and if the property
later becomes tax exempt, in whole or part, as a result of the
authority acquiring the property through foreclosure or exercise
of remedies under a lease or other revenue agreement or as a
result of tax forfeiture, the amount to be added to the original
net tax capacity of the district as a result of the property
again becoming taxable is the amount of the parcel's value that
was included in original net tax capacity when the parcel was
first certified. The amount to be added to the original net tax
capacity of the district as a result of enlargements equals the
net tax capacity of the added real property as most recently
certified by the commissioner of revenue as of the date of
modification of the tax increment financing plan pursuant to
section 469.175, subdivision 4.
(d) If the net tax capacity of a property increases because
the property no longer qualifies under the Minnesota
Agricultural Property Tax Law, section 273.111; the Minnesota
Open Space Property Tax Law, section 273.112; or the
Metropolitan Agricultural Preserves Act, chapter 473H, or
because platted, unimproved property is improved or three years
pass market value is increased after approval of the plat under
section 273.11, subdivision 1 14, 14a, or 14b, the increase in
net tax capacity must be added to the original net tax capacity.
(e) The amount to be subtracted from the original net tax
capacity of the district as a result of previously taxable real
property within the district becoming tax exempt, or a reduction
in the geographic area of the district, shall be the amount of
original net tax capacity initially attributed to the property
becoming tax exempt or being removed from the district. If the
net tax capacity of property located within the tax increment
financing district is reduced by reason of a court-ordered
abatement, stipulation agreement, voluntary abatement made by
the assessor or auditor or by order of the commissioner of
revenue, the reduction shall be applied to the original net tax
capacity of the district when the property upon which the
abatement is made has not been improved since the date of
certification of the district and to the captured net tax
capacity of the district in each year thereafter when the
abatement relates to improvements made after the date of
certification. The county auditor may specify reasonable form
and content of the request for certification of the authority
and any modification thereof pursuant to section 469.175,
subdivision 4.
(f) If a parcel of property contained a substandard
building that was demolished or removed and if the authority
elects to treat the parcel as occupied by a substandard building
under section 469.174, subdivision 10, paragraph (b), the
auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of
the parcel, or (2) the estimated market value of the parcel for
the year in which the building was demolished or removed, but
applying the class rates for the current year.
(g) For a redevelopment district qualifying under section
469.174, subdivision 10, paragraph (a), clause (4), as a
qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the
district that contains a building that suffered substantial
damage as a result of the disaster or emergency.
[EFFECTIVE DATE.] This section is effective for land
platted on or after August 1, 1991.
Sec. 19. Minnesota Statutes 2004, section 469.1771,
subdivision 5, is amended to read:
Subd. 5. [DISPOSITION OF PAYMENTS.] If the authority does
not have sufficient increments or other available money to make
a payment required by this section, the municipality that
approved the district must use any available money to make the
payment including the levying of property taxes. Money received
by the county auditor under this section must be distributed as
excess increments under section 469.176, subdivision 2,
paragraph (a) (c), clause (4), except that if the county auditor
receives the payment after (1) 60 days from a municipality's
receipt of the state auditor's notification under subdivision 1,
paragraph (c), of noncompliance requiring the payment, or (2)
the commencement of an action by the county attorney to compel
the payment, then no distributions may be made to the
municipality that approved the tax increment financing district.
[EFFECTIVE DATE.] This section is effective at the same
time as the amendments to Minnesota Statutes, section 469.176,
subdivision 2, by Laws 2003, chapter 127, article 10, section 11.
Sec. 20. Minnesota Statutes 2004, section 469.178,
subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] Notwithstanding any other law,
no bonds, payment for which tax increment is pledged, shall be
issued in connection with any project for which tax increment
financing has been undertaken except as authorized in this
section. The proceeds from the bonds shall be used only in
accordance with section 469.176, subdivision subdivisions 4 to
4l, as if the proceeds were tax increment, except that a tax
increment financing plan need not be adopted for any project for
which tax increment financing has been undertaken prior to
August 1, 1979, pursuant to laws not requiring a tax increment
financing plan. The bonds are not included for purposes of
computing the net debt of any municipality.
[EFFECTIVE DATE.] This section is effective for tax
increment financing districts for which the request for
certification was made after August 1, 1979.
Sec. 21. Laws 1998, chapter 389, article 11, section 19,
subdivision 3, is amended to read:
Subd. 3. [DURATION OF DISTRICT.] Notwithstanding the
provisions of Minnesota Statutes, section 469.176, subdivision
1b, no tax increment may be paid to the authority or the city
after 18 years from the date of receipt by the authority of the
first increment generated from the final phase of
redevelopment. In no case may increments be paid to the
authority after 30 years from approval of the tax increment
plan. "Final phase of redevelopment" means that phase of
redevelopment activity which completes the rehabilitation of the
Lake Street site.
[EFFECTIVE DATE.] This section is effective upon compliance
with Minnesota Statutes, sections 469.1782, subdivision 2, and
645.021, subdivision 2.
Sec. 22. [EXTENSION OF TIME TO EXPEND TAX INCREMENT.]
Notwithstanding any contrary provision of law or charter,
for tax increment financing district number 3, established on
December 19, 1994, by Brooklyn Center Resolution No. 94-273,
Minnesota Statutes, section 469.1763, subdivision 3, applies to
the district by permitting a period of 13 years for commencement
of activities within the district.
[EFFECTIVE DATE.] This section is effective upon approval
by the governing body of the city of Brooklyn Center and
compliance with Minnesota Statutes, section 645.021, subdivision
3.
Sec. 23. [FAIRMONT; ABATEMENT AUTHORITY.]
The city of Fairmont, Martin County, and Independent School
District No. 2752, Fairmont Area Schools, may each grant an
abatement under Minnesota Statutes, sections 469.1812 to
469.1815, for property located in tax increment financing
district No. 20 in the city of Fairmont, notwithstanding any law
to the contrary. The total amount of the abatement for each
political subdivision may not exceed the taxes paid by the
original tax capacity of the district for each year of its
existence. Notwithstanding Minnesota Statutes, section 471.87,
or any other law governing conflicts of interest, a local
elected official may have a financial interest in and benefit
from the tax abatement authorized in this section if the
official discloses the interest and potential benefit on the
record, and abstains from voting on the matter.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 24. [WABASHA TAX INCREMENT FINANCING DISTRICT.]
Subdivision 1. [DISTRICT EXTENSION.] The governing body of
the city of Wabasha may elect to compute the duration of its
redevelopment tax increment financing district number 3 without
regard to any increment received for taxes payable in 2001.
Subd. 2. [FIVE-YEAR RULE.] The requirements of Minnesota
Statutes, section 469.1763, subdivision 3, that activities must
be undertaken within a five-year period from the date of
certification of a tax increment financing district must be
considered to be met for the city of Wabasha redevelopment tax
increment district number 3, if the activities are undertaken
within ten years from the date of certification of the district.
Subd. 3. [NATIONAL EAGLE CENTER.] Notwithstanding the
provisions of Minnesota Statutes, section 469.176, subdivision
4l, or any other law, the city of Wabasha may spend the proceeds
of tax increment bonds issued prior to January 1, 2000, to pay
the costs of acquiring and constructing a National Eagle Center
in the city. The city of Wabasha may also use tax increment
from its tax increment districts to pay the debt service on such
bonds, or any bonds issued to refund such bonds, subject to
legal restrictions on the pooling of tax increment. These bonds
may not be treated as preexisting obligations under Minnesota
Statutes, section 469.1794.
[EFFECTIVE DATE.] Subdivision 1 is effective upon
compliance with Minnesota Statutes, sections 469.1782,
subdivision 2, and 645.021. Subdivisions 2 and 3 are effective
upon compliance by the governing body of the city of Wabasha
with Minnesota Statutes, section 645.021.
Sec. 25. [CITY OF RICHFIELD; TAX INCREMENT FINANCING
DISTRICT.]
Subdivision 1. [AUTHORIZATION.] The city of Richfield may
create a tax increment financing district consisting of an area
lying west of Trunk Highway 77 extending: to 16th Avenue
between Crosstown Highway 62 and 66th Street; to 17th Avenue
between 66th and 69th Streets; and to 18th Avenue between 69th
and 72nd Streets. The city or its housing and redevelopment
authority may be the authority for the purposes of Minnesota
Statutes, sections 469.174 to 469.179.
Subd. 2. [DISTRICT IS REDEVELOPMENT DISTRICT.] The
redevelopment tax increment district created pursuant to
subdivision 1 is deemed to be a redevelopment district and is
subject to Minnesota Statutes, sections 469.174 to 469.179,
except that:
(1) expenditures for activities as defined in Minnesota
Statutes, section 469.1763, subdivision 1, paragraph (b),
anywhere in the district are deemed to be the costs of
correcting conditions that allow the designation of
redevelopment districts pursuant to Minnesota Statutes, section
469.174, subdivision 10; and
(2) the five-year rule under Minnesota Statutes, section
469.1763, subdivision 3, does not apply.
[EFFECTIVE DATE.] This section is effective upon local
approval by the city of Richfield in compliance with Minnesota
Statutes, section 645.021.
Sec. 26. [CITY OF MOUNDS VIEW; TAX INCREMENT FINANCING
DISTRICT.]
Subdivision 1. [ESTABLISHMENT.] (a) The city of Mounds
View may establish within the corporate boundaries of the city
one or more economic development tax increment financing
districts subject to the special rules under subdivision 2. The
districts must be located on property that is exempt from
taxation for property taxes payable in 2005 and within the area
defined in paragraph (b).
(b) For purposes of this section, "area" is bounded by, and
including, on the north County Road J west of Coral Sea Street
and 82nd Lane NE east of Coral Sea Street, on the east Coral Sea
Street north of 82nd Lane NE and Interstate Highway 35W south of
82nd Lane NE, on the south and southwest U.S. Highway 10, and on
the west the western boundary of Outlot A, Sysco, according to
the recorded plat thereof, and situated in Ramsey County,
Minnesota.
Subd. 2. [SPECIAL RULES.] (a) If the city elects upon the
adoption of the tax increment financing plan for the district,
the rules under this section apply to the district.
(b) The duration limit under Minnesota Statutes, section
469.176, subdivision 1b, clause (3), is extended to 25 years
after receipt of the first increment.
(c) The five-year rule under Minnesota Statutes, section
469.1763, subdivision 3, is extended to a ten-year period.
(d) The limitations on spending increment outside of the
district under Minnesota Statutes, section 469.1763, subdivision
2, and on spending increment for developments more than 15
percent of the square footage of which is used for purposes
other than those listed in Minnesota Statutes, section 469.176,
subdivision 4c, do not apply. Except as provided in paragraph
(e), increments may only be expended within the area defined in
subdivision 1, paragraph (b), and related to development
occurring within the area defined in subdivision 1, paragraph
(b), whether or not included in a tax increment financing
district. Increments may only be spent on one or more of the
following costs, improvements, or activities:
(1) acquisition and removal of existing billboards;
(2) acquisition of land and easements, if the parcel is
occupied by a building constructed before 1990;
(3) sanitary sewer, sewer, and water improvements;
(4) road improvements;
(5) parking, including structured parking;
(6) administrative expenses;
(7) wetland mitigation;
(8) soils correction; and
(9) environmental cleanup.
(e) Increments may be expended on costs, improvements, or
activities outside the area defined in subdivision 1, paragraph
(b), wherever located, whether or not included in a tax
increment financing district, for sanitary sewer, sewer, and
water improvements and improvements to Coral Sea Street, Airport
Road, 82nd Lane NE, County Road J, U.S. Highway 10, and
Interstate Highway 35W so long as the improvements are related
to development within the area defined in subdivision 1,
paragraph (b).
(f) The limitation on the ability to elect the method of
computation under Minnesota Statutes, section 469.177,
subdivision 3, for an economic development district does not
apply and the city or authority may elect the method of
computation under paragraph (a) or (b) of section 469.177,
subdivision 3.
Subd. 3. [EXPIRATION.] The authority to approve tax
increment financing plans to establish a tax increment financing
district under this section expires on December 31, 2015.
[EFFECTIVE DATE.] This section is effective upon approval
by the governing body of the city of Mounds View and upon
compliance by the city with Minnesota Statutes, sections
469.1782, subdivision 2, and 645.021, subdivision 3.
Sec. 27. [CONVEYANCE OF STATE INTEREST IN REAL PROPERTY TO
CITY OF MOUNDS VIEW.]
(a) Notwithstanding Minnesota Statutes, section 16B.281,
16B.282, 92.45, or any other law to the contrary, the
commissioner of transportation shall convey to the city of
Mounds View all right, title, and interest of the state of
Minnesota created by corrective deed dated March 16, 1989, in
the land located in Ramsey County, described as:
The South Half of the Northeast Quarter of Section 5,
Township 30 North, Range 23 West, Ramsey County, Minnesota;
which lies northerly and westerly of the following
described line: Commencing at the center of said Section
5; thence north on an azimuth of 359 degrees 23 minutes 10
seconds (azimuth oriented to Minnesota State Plane
Coordinate System) along the north and south quarter line
of said Section 5 for 781.42 feet to the point of beginning
of the line to be described; thence on an azimuth of 108
degrees 12 minutes 41 seconds, 231.14 feet; thence on an
azimuth of 98 degrees 27 minutes 03 seconds, 1486.78 feet;
thence run northeasterly for 447.16 feet on a nontangential
curve, concave to the northwest, having a radius of 720
feet, a delta angle of 35 degrees 35 minutes 02 seconds and
a chord azimuth of 76 degrees 55 minutes 11 seconds; thence
on an azimuth of 59 degrees 07 minutes 40 seconds, 192.89
feet; thence run northerly 398.14 feet on a nontangential
curve, concave to the northwest, having a radius of 850
feet, a delta angle of 26 degrees 50 minutes 15 seconds and
a chord azimuth of 29 degrees 26 minutes 05 seconds; thence
on an azimuth of 16 degrees 00 minutes 57 seconds, 303.65
feet to the north line of said Tract A and there
terminating;
Containing 40.41 acres, more or less.
(b) The conveyance shall be for consideration according to
paragraph (d) in a form approved by the attorney general.
(c) This property was acquired by the Department of
Transportation for construction of a new portion of Trunk
Highway 10 west of Interstate Highway 35W. The property was not
needed for highway purposes. In 1988, the commissioner of
transportation deeded the property to the city of Mounds View
subject to a right of reverter.
(d) If the city of Mounds View enters into a fully executed
development agreement to redevelop the land described in
paragraph (a) by January 1, 2007, the city shall pay the
commissioner of transportation $1,000,000 for deposit in the
trunk highway fund. If the city of Mounds View does not enter
into a fully executed development agreement to redevelop the
land described in paragraph (a) by January 1, 2007, all right,
title, and interest in the land shall revert back to the
Department of Transportation unless the land is still used for a
public purpose. If the land is not subject to a fully executed
development agreement and is still used for a public purpose on
or after January 1, 2007, the land may continue to be used for
such public purpose by the city of Mounds View, subject to a
right of reverter if the land ceases to be used for a public
purpose.
Sec. 28. [ST. PAUL; HOUSING AND REDEVELOPMENT AUTHORITY.]
Subdivision 1. [HOUSING AND REDEVELOPMENT
SUBDISTRICTS.] For its tax increment financing districts
identified in subdivision 2, the Housing and Redevelopment
Authority of the city of St. Paul may establish subdistricts up
to the number set forth for each tax increment financing
district in subdivision 2. The subdistricts shall be treated as
set forth in subdivision 3, notwithstanding the provisions of
any other law to the contrary.
Subd. 2. [DIVISION INTO SUBDISTRICTS; AUTHORITY.] The tax
increment financing districts with the following Ramsey County
identification numbers may be divided into a number of
subdistricts not to exceed the number set forth as follows: No.
224/233, six subdistricts; No. 225, six subdistricts; No. 228,
three subdistricts; and No. 234, two subdistricts.
Subd. 3. [DESIGNATION OF PARCELS.] All parcels in a tax
increment financing district listed in subdivision 2 must be
assigned to a subdistrict. Each subdistrict established
pursuant to this section shall consist of those parcels in the
tax increment financing district which are designated by the
commissioners of the Housing and Redevelopment Authority of the
city of St. Paul by resolution, which parcels need not be
contiguous. For purposes of determining tax increments and the
parcels treated as paying tax increments, each subdistrict shall
be treated as a separate tax increment district.
[EFFECTIVE DATE.] This section is effective the day after
the governing body of the city of St. Paul and its chief
clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
Sec. 29. [CITY OF BROOKLYN PARK TAX INCREMENT FINANCING
DISTRICT EXTENSION.]
Notwithstanding Minnesota Statutes, section 469.176,
subdivision 1b, or any other law to the contrary, the duration
limit that applies to the economic development tax increment
financing district established under Laws 1994, chapter 587,
article 9, section 20, is extended to December 31, 2006. The
city and county may prepare a plan for submission to the
legislature by February 1, 2006, providing for expenditure of
increment resulting from an additional duration extension of the
district. The plan must specify the proposed duration
extension, as well the planned uses of the increment.
Sec. 30. [CITY OF FERGUS FALLS; ECONOMIC DEVELOPMENT
PROPERTY.]
The provisions of Minnesota Statutes, section 272.02,
subdivision 39, apply to property located in the city of Fergus
Falls as if the city had a population of 5,000 or less.
[EFFECTIVE DATE.] This section is effective for taxes
levied in 2005, payable in 2006, and thereafter.
Sec. 31. [REPEALER.]
Minnesota Statutes 2004, sections 469.176, subdivision 1a;
and 469.1766 are repealed.
Laws 1994, chapter 587, article 9, section 20, subdivision
4, is repealed.
[EFFECTIVE DATE.] The repeal of Minnesota Statutes, section
469.1766, is effective for districts for which the request for
certification was made after August 1, 1993. The repeal of
Minnesota Statutes, section 469.176, subdivision 1a, is
effective the day following final enactment, provided that
Minnesota Statutes, section 469.176, subdivision 1a, is
satisfied for any district to which it applies, if bonds have
been issued, property acquired, or public improvements
constructed before the end of the three-year period, regardless
of whether the action was undertaken before or after
certification of the district.
Presented to the governor May 31, 2005
Signed by the governor June 2, 2005, 1:45 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes