language to be deleted (2) new language
relating to economic development; modifying loans to development authorities;
amending Minnesota Statutes 2012, section 116J.5764, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Loans to development authorities for demolition costs may be made by the commissioner subject to the following terms and conditions:
(1) the agreement to repay the loan must be a general obligation of the development authority, payable primarily from a dedicated source of revenue, and the development authority must deliver its bond or note to the commissioner to secure the loan;
(2) the term of the loan may not exceed 15 years;
(3) the loan shall bear interest at a rate equal to two percent, but interest will not accrue during the first two years of the loan term;
(4) the development authority shall make semiannual interest payments and annual principal payments beginning in the third year of the loan until the end of the term;
(5) the principal amount of a loan may not exceed $1,000,000;
(6) loan proceeds shall be disbursed for eligible demolition costs as incurred or paid by the borrower and upon submission of invoices and other supporting documentation satisfactory to the commissioner; and
(7) an eligible borrower shall establish a dedicated source of revenue for repayment of the loan.
Presented to the governor May 13, 2013
Signed by the governor May 16, 2013, 5:33 p.m.