Subdivision 1. Establishment.
An economic development authority may create and define
the boundaries of economic development districts at any place or places within the city if the
district satisfies the requirements of section
469.174, subdivision 10
, except that the district
boundaries must be contiguous, and may use the powers granted in sections
carry out its purposes. First the authority must hold a public hearing on the matter. At least ten
days before the hearing, the authority shall publish notice of the hearing in a daily newspaper of
general circulation in the city. Also, the authority shall find that an economic development district
is proper and desirable to establish and develop within the city.
Subd. 2. Acquire property.
The economic development authority may acquire by lease,
purchase, gift, devise, or condemnation proceedings the needed right, title, and interest in property
to create economic development districts. It shall pay for the property out of money it receives
. 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 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
acquired, owned, leased, controlled, used, or occupied by the 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, except to the extent that the property is subject to the sales
and use tax under chapter 297A. The exemption applies only while the authority holds property
for its own purpose. The exemption is subject to the provisions of section
. When the property is sold it becomes subject to taxation.
Subd. 3. Options.
The economic development authority may sign options to purchase,
sell, or lease property.
Subd. 4. Eminent domain.
The economic development 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 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 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 economic development authority may make contracts for the
purpose of economic development within the powers given it in sections
The authority may contract or arrange with the federal government, or any of its departments,
with persons, public corporations, the state, or any of its political subdivisions, commissions, or
agencies, for separate or joint action, on any matter related to using the authority's powers or
performing its duties. The authority may contract to purchase and sell real and personal property.
An obligation or expense must not be incurred unless existing appropriations together with the
reasonably expected revenue of the authority from other sources are sufficient to discharge the
obligation or pay the expense when due. The state and its municipal subdivisions are not liable on
Subd. 6. Limited partner.
The economic development authority may be a limited partner in
a partnership whose purpose is consistent with the authority's purpose.
Subd. 7. Rights; easements.
The economic development authority may acquire rights or an
easement for a term of years or perpetually for development of an economic development district.
Subd. 8. Supplies; materials.
The economic development authority may buy the supplies
and materials it needs to carry out this section.
Subd. 9. Receive public property.
The economic development 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
and to acquire and develop an economic development district
and its facilities under this section.
Subd. 10. Development district authority.
The economic development authority may sell or
lease land held by it for economic development in economic development districts. The authority
may acquire, sell, or lease single or multiple tracts of land regardless of size, to be developed as a
part of the economic development of the district under sections
Subd. 11. Foreign trade zone.
The economic development 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. One authority may apply with another authority.
Subd. 12. Relation to other redevelopment powers.
The economic development authority
may exercise powers and duties of a redevelopment agency under sections
for a purpose in sections
. The authority may also use
the powers and duties in sections
for a purpose in
Subd. 13. Public facilities.
The authority may operate and maintain a public parking facility
or other public facility to promote development in an economic development district.
Subd. 14. Government agent.
An economic development authority may cooperate with
or act as agent for the federal or the state government, or a state public body, or an agency or
instrumentality of a government or a public body to carry out sections
other related federal, state, or local law in the area of economic development district improvement.
Subd. 15. Studies, analysis, research.
An authority may study and analyze economic
development needs in the city, and ways to meet the needs. An authority may study the desirable
patterns for land use for economic development and community growth and other factors affecting
local economic development in the city and make the result of the studies available to the public
and to industry in general. An authority may engage in research and disseminate information on
economic development within the city.
Subd. 16. Public relations.
To further an authorized purpose, an authority may (1) join an
official, industrial, commercial, or trade association, or another organization concerned with
the purpose, (2) have a reception of officials who may contribute to advancing the city and its
economic development, and (3) carry out other public relations activities to promote the city and
its economic development. Activities under this subdivision have a public purpose.
Subd. 17. Accept public land.
An authority may accept conveyances of land from all
other public agencies, commissions, or other units of government, if the land can be properly
used by the authority in an economic development district, to carry out the purposes of sections
Subd. 18. Economic development.
An authority may carry out the law on economic
development districts to develop and improve the lands in an economic development district to
make it suitable and available for economic development uses and purposes. An authority may
fill, grade, and protect the property and do anything necessary and expedient, after acquiring the
property, to make it suitable and attractive as a tract for economic development. An authority
may lease some or all of its lands or property and may set up local improvement districts in all
or part of an economic development district.
Subd. 19. Loans in anticipation of bonds.
After authorizing bonds under sections
, an authority may borrow to provide money immediately required for the bond
purpose. The loans must not exceed the amount of the bonds. The authority shall by resolution
decide the terms of the loans. The loans must be evidenced by negotiable notes due in not more
than 12 months from the date of the loan payable to the order of the lender or to bearer, to be
repaid with interest from the proceeds of the bonds when the bonds are issued and delivered to
the bond purchasers. The loan must not be obtained from any commissioner of the authority or
from any corporation, association, or other institution of which an authority commissioner is a
stockholder or officer.
Subd. 20. Use of proceeds.
The proceeds of obligations issued by an authority under section
and temporary loans obtained under subdivision 19 may be used to make or purchase
loans for economic development facilities that the authority believes will require financing. To
make or purchase the loans, the authority may enter into loan and related agreements, both before
and after issuing the obligations, with persons, firms, public or private corporations, federal
or state agencies, and governmental units under terms and conditions the authority considers
appropriate. A governmental unit in the state may apply, contract for, and receive the loans.
Chapter 475 does not apply to the loans.
Subd. 21.[Repealed, 2000 c 490 art 11 s 44
Subd. 22. Secondary market.
An 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.
Subd. 23. Supplying small business capital.
Notwithstanding any contrary law, the
authority may participate with public or private corporations or other entities, whose purpose is to
provide seed or venture capital to small businesses that have facilities located or to be located
in the district. For that purpose the authority may use not more than ten percent of available
annual net income or $1,000,000 annually, whichever is less, to invest in equities or acquire
equity-type investments. These investments can be made directly in eligible corporations or
entities or acquired through participation in a public or private seed or venture capital fund. The
participation by the authority may not exceed in any year 25 percent of the total amount of
funds provided for venture or seed capital purposes by all of the participants. The corporation,
entity, or fund shall report in writing each six months to the commissioners of the authority all
investments and other action taken by it since the last report. Funds contributed to the corporation
or entity must be invested pro rata with each contributor of capital taking proportional risks on
each investment. As used in this subdivision, the term "small business" has the meaning given it
645.445, subdivision 2
History: 1987 c 291 s 102; 1988 c 580 s 5; 1991 c 295 s 2; 1992 c 363 art 1 s 13; 2000 c
418 art 2 s 7; 2006 c 214 s 20