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Office of the Revisor of Statutes

    Subdivision 1. Authority. A political subdivision may issue bonds or other obligations to
provide an amount equal to the sum of the abatements granted for a property under section
469.1813. The maximum principal amount of these bonds may not exceed the estimated sum of
the abatements for the property for the years authorized. The bonds may be general obligations of
the political subdivision if the governing body of the political subdivision elects to pledge the full
faith and credit of the subdivision in the resolution issuing the bonds.
    Subd. 2. Chapter 475 applies. Chapter 475 applies to the obligations authorized by this
section, except bonds are excluded from the calculation of the net debt limit.
    Subd. 3. Municipal issue for combined abatements. If two or more political subdivisions
decide to grant abatements for the same property, the municipality in which the property is
located may issue bonds to provide an amount equal to the sum of the abatements for each
of the jurisdictions that agrees. The governing body of each of the other jurisdictions must
guarantee and pledge to pay annually to the municipality the amount of the abatement. This
pledge and guarantee is a binding obligation of the political subdivision and must be included in
the abatement resolution.
    Subd. 4. Bonded abatements not subject to review. If bonds are issued to provide advance
payment of abatements under this section, the amount of abatement is not subject to periodic
review by the political subdivision under section 469.1813, subdivision 7.
    Subd. 5. Use of proceeds. The proceeds of bonds issued under this section may be used to
(1) pay for public improvements that benefit the property, (2) to acquire and convey land or other
property, as provided under this section, (3) to reimburse the property owner for the cost of
improvements made to the property, or (4) to pay the costs of issuance of the bonds.
    Subd. 6. Levy to offset tax changes. (a) This subdivision applies only to abatements
pledged to pay preexisting obligations.
(b) For purposes of this subdivision, "preexisting obligation" means a bond or binding
contract that:
(1) was issued or approved before August 1, 2001;
(2) is secured by abatements approved before August 1, 2001; and
(3) is not a general obligation.
(c) If a political subdivision granted an abatement pledged to pay a preexisting obligation
and if the changes in the property tax class rates enacted in calendar year 2001 reduce the
abatement by an amount sufficient to prevent payment in full of the preexisting obligation, the
political subdivision may add to its levy under section 469.1815 an amount sufficient to provide
an abatement equal to the least of:
(1) the amount of the abatement using the political subdivision's tax rate for the current year
and the class rates for property taxes payable in 2001;
(2) the amount required to pay the amount due on the preexisting obligation for the year
from the political subdivision; or
(3) the maximum dollar amount of the political subdivision's abatement, if any, under the
abatement resolution.
History: 1997 c 231 art 2 s 47; 1999 c 248 s 19; 1Sp2001 c 5 art 15 s 27