2001 Minnesota Statutes

     116J.8731 Minnesota investment fund. 

    Subdivision 1.    Purpose.  The Minnesota investment 
 fund is created to provide financial assistance, through 
 partnership with communities, for the creation of new employment 
 or to maintain existing employment, and for business start-up, 
 expansions, and retention.  It shall accomplish these goals by 
 the following means: 

    (1) creation or retention of permanent private-sector jobs 
 in order to create above-average economic growth consistent with 
 environmental protection, which includes investments in 
 technology and equipment that increase productivity and provide 
 for a higher wage; 

    (2) stimulation or leverage of private investment to ensure 
 economic renewal and competitiveness; 

    (3) increasing the local tax base, based on demonstrated 
 measurable outcomes, to guarantee a diversified industry mix; 

    (4) improvement of employment and economic opportunity for 
 citizens in the region to create a reasonable standard of 
 living, consistent with federal and state guidelines on low- to 
 moderate-income persons; and 

    (5) stimulation of productivity growth through improved 
 manufacturing or new technologies, including cold weather 
 testing.  

    Subd. 2.    Administration.  The commissioner shall 
 administer the fund as part of the Small Cities Development 
 Block Grant Program.  Funds shall be made available to local 
 communities and recognized Indian tribal governments in 
 accordance with the rules adopted for economic development 
 grants in the small cities community development block grant 
 program, except that all units of general purpose local 
 government are eligible applicants for Minnesota investment 
 funds.  A home rule charter or statutory city, county, or town 
 may loan or grant money received from repayment of funds awarded 
 under this section to a regional development commission, other 
 regional entity, or statewide community capital fund as 
 determined by the commissioner, to capitalize or to provide the 
 local match required for capitalization of a regional or 
 statewide revolving loan fund. 

    Subd. 3.    Eligible expenditures.  The money 
 appropriated for this section may be used to provide grants for 
 infrastructure, loans, loan guarantees, interest buy-downs, and 
 other forms of participation with private sources of financing, 
 provided that a loan to a private enterprise must be for a 
 principal amount not to exceed one-half of the cost of the 
 project for which financing is sought. 

    Subd. 4.    Eligible projects.  Assistance must be 
 evaluated on the existence of the following conditions: 

    (1) creation of new jobs or retention of existing jobs; 

    (2) increase in the tax base; 

    (3) the project can demonstrate that investment of public 
 dollars induces private funds; 

    (4) the project can demonstrate an excessive public 
 infrastructure or improvement cost beyond the means of the 
 affected community and private participants in the project; 

    (5) the project provides higher wage levels to the 
 community or will add value to current workforce skills; 

    (6) whether assistance is necessary to retain existing 
 business; and 

    (7) whether assistance is necessary to attract out-of-state 
 business.  

    A grant or loan cannot be made based solely on a finding 
 that the conditions in clause (6) or (7) exist.  A finding must 
 be made that a condition in clause (1), (2), (3), (4), or (5) 
 also exists. 

    Applications recommended for funding shall be submitted to 
 the commissioner. 

    Subd. 5.    Grant limits.  A Minnesota investment fund 
 grant may not be approved for an amount in excess of $500,000.  
 This limit covers all money paid to complete the same project, 
 whether paid to one or more grant recipients and whether paid in 
 one or more fiscal years.  The portion of a Minnesota investment 
 fund grant that exceeds $100,000 must be repaid to the state 
 when it is repaid to the local community or recognized Indian 
 tribal government by the person or entity to which it was loaned 
 by the local community or Indian tribal government.  Money 
 repaid to the state must be credited to the general fund.  A 
 grant or loan may not be made to a person or entity for the 
 operation or expansion of a casino or a store which is used 
 solely or principally for retail sales.  Persons or entities 
 receiving grants or loans must pay each employee total 
 compensation, including benefits not mandated by law, that on an 
 annualized basis is equal to at least 110 percent of the federal 
 poverty level for a family of four. 

    Subd. 6.    Sports facility.  A Minnesota investment 
 fund grant or loan cannot be used for a project related to a 
 sports facility.  For the purpose of this subdivision, "sports 
 facility" means a building that has a professional sports team 
 as a principal tenant. 

    Subd. 7.    Contractual obligation.  A business 
 receiving Minnesota investment fund grants must demonstrate why 
 the grant is necessary for a project and enter into an agreement 
 with the local grantor.  The agreement, among other things, must 
 obligate the recipient to pay the minimum compensation set by 
 this section and meet job creation goals.  A recipient that 
 breaches the agreement must repay the grant directly to the 
 commissioner.  Repayments under this subdivision must be 
 deposited in the general fund. 

    HIST: 1996 c 452 s 29; 2001 c 102 s 1; 1Sp2001 c 4 art 2 s 2