469.033 PUBLIC REDEVELOPMENT COST; PROCEEDS; FINANCING.
Subdivision 1. Financing plans authorized.
The entire cost of a project as defined in section
469.002, subdivision 12
, including administrative expense of the authority allocable to the project
and debt charges and all other costs authorized to be incurred by the authority in sections
, shall be known as the public redevelopment cost. The proceeds from the sale or lease
of property in a project shall be known as the capital proceeds. The capital proceeds from land
sold may pay back only a portion of the public redevelopment cost. An authority may finance the
projects in any one or by any combination of the following methods.
Subd. 2. Federal grants.
The authority may accept grants or other financial assistance
from the federal government as provided in sections
. Before it uses other
financial methods authorized by this section, the authority shall use all federal funds for which
the project qualifies.
Subd. 3. Bond issue.
An authority may issue its bonds or other obligations as provided in
Subd. 4. Revenue pool; use.
The authority may provide that all revenues received from its
redevelopment areas be placed in a pool for the payment of interest and principal on all bonds
issued for any redevelopment project, and the revenue from all such areas shall be paid into the
pool until all outstanding bonds have been fully paid.
Subd. 5. Special benefit tax fund.
If the authority issues bonds to finance a redevelopment
project, it may, with the consent of the governing body obtained at the time of the approval of the
redevelopment plan as required in section
, notify the county treasurer to set aside in a
special fund, for the retirement of the bonds and interest on them, all or part of the real estate tax
revenues derived from the real property in the redevelopment area which is in excess of the tax
revenue derived therefrom in the tax year immediately preceding the acquisition of the property
by the authority. The county treasurer shall do so. This setting aside of funds shall continue until
the bonds have been retired. This subdivision applies only to property that the governing body has
by resolution designated for inclusion in a project prior to August 1, 1979.
Subd. 6. Operation area as taxing district, special tax.
All of the territory included within
the area of operation of any authority shall constitute a taxing district for the purpose of levying
and collecting special benefit taxes as provided in this subdivision. All of the taxable property,
both real and personal, within that taxing district shall be deemed to be benefited by projects to
the extent of the special taxes levied under this subdivision. Subject to the consent by resolution
of the governing body of the city in and for which it was created, an authority may levy a tax upon
all taxable property within that taxing district. The tax shall be extended, spread, and included
with and as a part of the general taxes for state, county, and municipal purposes by the county
auditor, to be collected and enforced therewith, together with the penalty, interest, and costs. As
the tax, including any penalties, interest, and costs, is collected by the county treasurer it shall be
accumulated and kept in a separate fund to be known as the "housing and redevelopment project
fund." The money in the fund shall be turned over to the authority at the same time and in the
same manner that the tax collections for the city are turned over to the city, and shall be expended
only for the purposes of sections
. It shall be paid out upon vouchers signed
by the chair of the authority or an authorized representative. The amount of the levy shall be an
amount approved by the governing body of the city, but shall not exceed 0.0144 percent of taxable
market value for the current levy year, notwithstanding section
. The authority shall each
year formulate and file a budget in accordance with the budget procedure of the city in the same
manner as required of executive departments of the city or, if no budgets are required to be filed,
by August 1. The amount of the tax levy for the following year shall be based on that budget.
Subd. 7. Inactive authorities; transfer of funds; dissolution.
The authority may transfer
to the city in and for which it was created all property, assets, cash or other funds held or used
by the authority which were derived from the special benefit tax for redevelopment levied
pursuant to subdivision 6 prior to March 6, 1953, whenever collected. Upon any such transfer,
an authority shall not thereafter levy the tax or exercise the redevelopment powers of sections
. All cash or other funds transferred to the city shall be used exclusively for
permanent improvements in the city or the retirement of debts or bonds incurred for permanent
improvements in the city. An authority which transfers its property, assets, cash, or other funds
derived from the special benefit tax for redevelopment and which has not entered into a contract
with the federal government with respect to any low-rent public housing project prior to March
6, 1953, shall be dissolved as herein provided. After a public hearing after ten days' published
notice thereof in a newspaper of general circulation in the city, the governing body of a city in
and for which an authority has been created may dissolve the authority if the authority has not
entered into any contract with the federal government or any agency or instrumentality thereof for
a loan or a grant with respect to any urban redevelopment or low-rent public housing project. The
resolution or ordinance dissolving the authority shall be published in the same manner in which
ordinances are published in the city and the authority shall be dissolved when the resolution or
ordinance becomes finally effective. The clerk of the governing body of the municipality shall
furnish to the commissioner of employment and economic development a certified copy of the
resolution or ordinance of the governing body dissolving the authority. All property, records,
assets, cash, or other funds held or used by an authority shall be transferred to and become the
property of the municipality and cash or other funds shall be used as herein provided. Upon
dissolution of an authority, all rights of an authority against any person, firm, or corporation shall
accrue to and be enforced by the municipality.
History: 1987 c 291 s 33; 1987 c 312 art 1 s 26 subd 2; 1988 c 719 art 5 s 84; 1989 c
209 art 2 s 1; 1989 c 277 art 4 s 61; 1Sp1989 c 1 art 5 s 35; art 9 s 63; 1993 c 320 s 5; 1994
c 416 art 1 s 47; 1994 c 614 s 9; 1997 c 7 art 1 s 142; 1997 c 231 art 2 s 43; 1Sp2003 c 4 s
1; 1Sp2005 c 3 art 1 s 28