469.059 DEVELOPMENT DISTRICT POWERS.
Subdivision 1. In general.
A port authority, or a city authorized by law to exercise the
powers of a port authority, may use the powers in this section for the purposes in section
Subd. 2. Acquire property.
The port authority may acquire by lease, purchase, gift, devise,
or condemnation proceedings the needed right, title, and interest in property to create industrial
development districts. A port authority may lease property in or out of its port district if it believes
the property is suitable and proper to use to carry out its duties and responsibilities. It shall pay for
the property out of money it receives under sections
. It may hold and dispose
of the property subject to the limits and conditions in sections
. The title to property acquired by condemnation or purchase must be in fee simple,
absolute. The port authority may accept an interest in property acquired in another way subject to
any condition of the grantor or donor. The condition must be consistent with the proper use of the
property under sections
. Property acquired, owned,
leased, controlled, used, or occupied by the port authority for any of the purposes of this section is
for public governmental and municipal purposes and is exempt from taxation by the state or by its
political subdivisions. The exemption applies only while the port authority holds property for its
own purpose. When property is sold it begins to be taxed again.
Subd. 3. Options.
The port authority may sign options to purchase, sell, or lease property.
Subd. 4. Eminent domain.
The port authority may exercise the power of eminent domain
under chapter 117, or under its city's charter to acquire property it is authorized to acquire by
condemnation. The port authority may acquire in this way property acquired by its owner by
eminent domain or property already devoted to a public use only if its city's council approves.
The port authority may take possession of property to be condemned after it files a petition in
condemnation proceedings describing the property. The authority may abandon the condemnation
before taking possession.
Subd. 5. Contracts.
The port authority may make contracts for an industrial development
purpose within the powers given it in sections
Subd. 6. Partner.
The port authority may be a limited partner.
Subd. 7. Rights; easements.
The port authority may acquire rights or an easement for a term
of years or perpetually for development of an industrial district.
Subd. 8. Supplies; materials.
The port authority may buy the supplies and materials it
needs to carry out this section.
Subd. 9. Receive public property.
The port authority may accept land, money, or other
assistance, whether by gift, loan or otherwise, in any form from the federal or state government,
or an agency of either, or a local subdivision of state government to carry out sections
and to acquire and develop an industrial development district and its facilities under
Subd. 10. Tax-forfeited land.
The port authority may use the power of a governmental
subdivision under section
to acquire land for and develop an industrial development
district. The authority may exercise the power of a city of the first class under that section to
acquire land forfeited to the state for nonpayment of taxes.
Subd. 11. Procedure.
Tax-forfeited lands in an industrial development district that are
vested in the state shall be conveyed to the port authority that is developing the district for one
dollar per tract. The port authority may use and later resell the land for purposes of sections
In conveying tax-forfeited land to a port authority, the state may not retain a possibility of
reverter or right of reentry as it does under section
282.01, subdivision 1e
The commissioner of revenue shall convey tax-forfeited parcels in an industrial development
district to the port authority, if the authority petitions for conveyance under sections
and pays $1 per tract.
The attorney general shall approve the form of the deed of conveyance. The port authority
shall receive absolute title to the tract, subject only to a reservation of minerals and mineral rights,
. The deed of conveyance must not contain a restriction on the use of the
premises. The conveyance divests the state of all further right, title, claim or interest in the tracts,
except for the reservation of minerals and mineral rights.
Subd. 12. Development district power.
The port authority may sell or lease land held by
it for river, harbor or industrial development in industrial development districts. The authority
may, if in the public interest, build suitable buildings or structures on land owned by it. The
authority may furnish capital equipment to be located permanently or used exclusively on the
lands or in the buildings if necessary to the purposes of the buildings or structures. The port
authority must intend that the buildings, structures, and equipment be leased or sold to private
persons to further develop the industrial district.
The authority may acquire, develop, sell, or lease single or multiple tracts of land regardless
of size, to be developed as a part of the industrial development of the district under sections
Subd. 13. Tax increment.
The port authority may request that the county auditor of the
county of its industrial development district certify the latest net tax capacity of the legally
described taxable real property in the request or of all the taxable real property in the district. The
auditor shall make the certification. Valuation that is contributed to an areawide tax base under
chapter 473F must be excluded from the certification. Each year the auditor shall certify to the
authority the amounts and percentages of increase or decrease in the certified net tax capacity. The
part of the change that is contributed to an areawide tax base under chapter 473F must be excluded.
The auditor shall compute the local tax rates of taxes against the original certified net tax
capacity. The auditor shall also extend the rates against any increased net tax capacity. The auditor
shall then send the resulting tax increment to the port authority. The procedure to be used for
computing and sending the increments is provided in section
469.042, subdivisions 2 and 3
The port authority shall keep tax increments received for a district in a special account on its
official books and records.
The auditor shall send the tax increments to the port authority until the cost, including
interest, of redevelopment of the marginal property within the district has been fully reimbursed.
The port authority shall report to the auditor when the cost is fully reimbursed. After that the
auditor shall compute and extend the local tax rates against the entire net tax capacity of the
property and send the taxes to all taxing districts. The city council may direct that part or all of the
tax collected from the property be pledged and appropriated to pay general obligation bonds of the
authority. After the auditor has certified the base net tax capacity used to compute tax increments
and while the tax increment is kept in a separate account, the auditor must not include increases in
the net tax capacity of the property in the net tax capacity of a taxing district to compute its debt or
levy limit or to compute the amount of its state or federal aid. This subdivision applies to projects
for which the port authority requested a certification on the project before August 2, 1979.
Subd. 14. Foreign trade zone.
The port authority may apply to the board defined in United
States Code, title 19, section 81a, for the right to use the powers provided in United States Code,
title 19, sections 81a to 81u. If the right is granted, the authority may use the powers in or out of
its port district. One authority may apply with another port authority.
Subd. 15. Extension of other authorities' powers.
The port authority may exercise powers
and duties of a redevelopment agency under sections
, for a purpose in
. The port authority may also exercise the
powers and duties in sections
, for a purpose in
Subd. 16. Parking and other facilities.
The port authority may operate and maintain a
public parking or other public facility to promote development in a development district.
Subd. 17. Secondary market.
The port authority may sell, at private or public sale, at the
price or prices determined by the authority, any note, mortgage, lease, sublease, lease purchase, or
other instrument or obligation evidencing or securing a loan made for the purpose of economic
development, job creation, redevelopment, or community revitalization by a public agency to a
business, for-profit or nonprofit organization, or an individual.
History: 1987 c 291 s 60; 1988 c 580 s 4; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20;
1Sp1989 c 1 art 2 s 11; 1990 c 481 s 1; 1990 c 604 art 3 s 40; 2006 c 214 s 20