1.1                          A bill for an act 
  1.2             relating to the city of Brooklyn Park; authorizing the 
  1.3             Brooklyn Park economic development authority to 
  1.4             establish, maintain, and operate a redevelopment 
  1.5             account. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [DEFINITIONS.] 
  1.8      Subdivision 1.  [SCOPE.] As used in section 2, the terms 
  1.9   defined in this section have the meanings given them. 
  1.10     Subd. 2.  [AUTHORITY.] "Authority" means the Brooklyn Park 
  1.11  economic development authority. 
  1.12     Subd. 3.  [CITY.] "City" means the city of Brooklyn Park. 
  1.13     Subd. 4.  [COUNTY.] "County" means Hennepin county. 
  1.14     Subd. 5.  [DEMOLITION.] "Demolition" means the destruction 
  1.15  and removal of structures and other improvements from a property 
  1.16  when the cost of bringing such structures and other improvements 
  1.17  into compliance with the uniform building code applicable to new 
  1.18  buildings is estimated by the authority to exceed 50 percent of 
  1.19  their estimated market value, as last finally determined by the 
  1.20  assessor prior to the issuance of a demolition permit by the 
  1.21  city. 
  1.22     Subd. 6.  [DISTRICT.] "District" means an economic 
  1.23  development tax increment financing district, as defined in 
  1.24  Minnesota Statutes, section 469.174, subdivision 12, the request 
  1.25  for certification of which is forwarded to the county by the 
  2.1   authority after the effective date of this act. 
  2.2      Subd. 7.  [REDEVELOPMENT ACCOUNT.] "Redevelopment account" 
  2.3   means a segregated account on the authority's books and records 
  2.4   into which redevelopment funds must be deposited and from which 
  2.5   redevelopment funds must be expended. 
  2.6      Subd. 8.  [REDEVELOPMENT FUNDS OR FUNDS.] "Redevelopment 
  2.7   funds" or "funds" means tax increment paid to the authority by 
  2.8   the county with respect to a district which is deposited into 
  2.9   the redevelopment account under section 2, subdivision 2. 
  2.10     Subd. 9.  [REDEVELOPMENT PROPERTIES; PROPERTY; OR 
  2.11  PROPERTIES.] "Redevelopment properties," "property," or 
  2.12  "properties" means buildings or improvements with respect to 
  2.13  which: 
  2.14     (1) the authority finds are blighted, as defined in 
  2.15  Minnesota Statutes, section 469.002, subdivision 11; 
  2.16     (2) are not and shall not be located within a tax increment 
  2.17  district, as defined in Minnesota Statutes, section 469.174, 
  2.18  subdivision 9; and 
  2.19     (3) are found by the authority to be in need of substantial 
  2.20  rehabilitation or demolition. 
  2.21     Subd. 10.  [SUBSTANTIAL REHABILITATION.] "Substantial 
  2.22  rehabilitation" means the bringing of structures and other 
  2.23  improvements on property into compliance with the Uniform 
  2.24  Building Code when the cost to do so is 25 percent or more of 
  2.25  the estimated market value of the structures and other 
  2.26  improvements, as last finally determined by the assessor prior 
  2.27  to the issuance of a building permit by the city for the 
  2.28  substantial rehabilitation. 
  2.29     Subd. 11.  [TAX INCREMENT.] "Tax increment" means payments 
  2.30  to the authority from the county under Minnesota Statutes, 
  2.31  sections 469.174 to 469.179, with respect to a district. 
  2.32     Subd. 12.  [WATERWAY.] "Waterway" means that portion of a 
  2.33  river, creek, or marsh over which the Minnesota department of 
  2.34  natural resources has jurisdiction and which is located within 
  2.35  or adjacent to a redevelopment property. 
  2.36     Sec. 2.  [ESTABLISHMENT OF THE REDEVELOPMENT ACCOUNT.] 
  3.1      Subdivision 1.  [CREATION.] The authority may establish a 
  3.2   redevelopment account on its official books and records. 
  3.3      Subd. 2.  [DEPOSITS.] Upon receipt of each tax increment 
  3.4   payment from the county with respect to each district, the 
  3.5   authority may elect to deposit into its redevelopment account up 
  3.6   to 15 percent of the gross amount of the payment.  The authority 
  3.7   may deposit such other public or private funds in the 
  3.8   redevelopment account as may be legally expended for any of the 
  3.9   purposes described in subdivision 3, and after deposit of the 
  3.10  funds shall not be legally required to independently account for 
  3.11  the expenditure of such other funds. 
  3.12     Subd. 3.  [USE.] (a) After deposit into the redevelopment 
  3.13  account under subdivision 2, redevelopment funds, including 
  3.14  investment income earned on the funds, shall no longer be 
  3.15  considered tax increment and, except as expressly stated in this 
  3.16  section, Minnesota Statutes, sections 469.174 to 469.179, shall 
  3.17  no longer apply and the use of the funds shall be exclusively 
  3.18  governed by this section and section 1.  The deposit or 
  3.19  expenditure of redevelopment funds as authorized in this section 
  3.20  shall not be considered to lengthen the duration limit of the 
  3.21  district as described in Minnesota Statutes, section 469.1782. 
  3.22     (b) The authority may expend redevelopment funds for the 
  3.23  following purposes: 
  3.24     (1) acquiring title to or an ownership interest in a 
  3.25  property; 
  3.26     (2) relocation of owners, tenants, or occupants from the 
  3.27  property; 
  3.28     (3) demolition of all or part of a property; 
  3.29     (4) substantial rehabilitation of a property; 
  3.30     (5) public improvements associated with the substantial 
  3.31  rehabilitation or demolition of properties; 
  3.32     (6) site improvements; 
  3.33     (7) public improvements associated with a waterway; and 
  3.34     (8) principal and interest on obligations issued under 
  3.35  paragraph (c). 
  3.36     (c) The authority may pay all or a portion of the costs 
  4.1   described in paragraph (b) directly, through the issuance and 
  4.2   sale of obligations pursuant to Minnesota Statutes, section 
  4.3   469.178, as if they were tax increment bonds, by means of loans 
  4.4   or grants to the owners of such properties, or through the 
  4.5   exercise of any authority contained in Minnesota Statutes, 
  4.6   sections 469.090 to 469.1081. 
  4.7      (d) Any funds deposited by the authority into the 
  4.8   redevelopment account that are at any time deemed by the 
  4.9   authority to be in excess of that needed to pay the costs 
  4.10  described in paragraph (b), shall be deposited into the housing 
  4.11  account established by the authority pursuant to Laws 1994, 
  4.12  chapter 587, article 9, section 20. 
  4.13     Sec. 3.  [EFFECTIVE DATE.] 
  4.14     Sections 1 and 2 are effective the day following final 
  4.15  enactment and upon compliance by the governing body of Brooklyn 
  4.16  Park with Minnesota Statutes, section 645.021.