2007 Minnesota Statutes

469.118 LOANS TO REDEVELOPMENT AGENCIES.
    Subdivision 1. Conditions for making. When it has been determined by the department
upon application of a local agency that the establishment of a particular redevelopment project
in a redevelopment area has accomplished or will accomplish the public purposes of sections
469.109 to 469.123, the department may contract to loan the local agency an amount not in
excess of 20 percent of the cost or estimated cost of the redevelopment project, subject to the
following conditions:
(a) In the case of a redevelopment project to be established:
(1) the department shall have first determined that the local agency holds funds in an
amount equal to, or property of a value equal to not less than, ten percent of the estimated cost
of establishing the redevelopment project, which funds or property are available for and shall
be applied to the establishment of the project. If a public facility within the redevelopment area
has been or may be constructed and will benefit a redevelopment project, the imputed value of
the benefit of the facility to the redevelopment project may be determined and the estimated
cost thereof credited to the local agency for the purpose of satisfying the requirements of this
subparagraph. For purposes of this section, a public facility includes utility installations, street
improvements, public buildings, parks, playgrounds, schools, recreational buildings, and parking
facilities;
(2) the department shall have also determined that the local agency has obtained from other
sources, by gift, grant, or loan from private or other state or federal sources, a firm commitment
for all other funds, over and above the loan of the state agency, and such funds or property as the
redevelopment agency may hold, necessary for payment of all the estimated cost of establishing
the redevelopment project, and that the sum of all these funds, together with the machinery and
equipment to be provided by the owner or operator of the redevelopment project is adequate to
ensure completion and operation of the plant, enterprise, or facility.
(b) In the case of a redevelopment project established without initial state or local agency
participation:
(1) the state agency shall have first determined that the local or area redevelopment agency
has expended funds in an amount equal to, or has applied property of a value equal to, not less
than ten percent of the cost of establishing the redevelopment project. If a public facility within
the redevelopment area has been or may be constructed and will benefit a redevelopment project,
the imputed value of the benefit of the facility to the redevelopment project may be determined
and the estimated cost thereof credited to the local agency for the purpose of satisfying the
requirements of this subparagraph;
(2) the department shall have also determined that the local agency has obtained from other
public or private sources other funds necessary for payment of all the cost of establishing the
redevelopment project, and that the local agency participation and these funds, together with
the machinery and equipment provided by the owner or operator of the redevelopment project
has been adequate to ensure completion and operation of the plant, enterprise, or facility. The
proceeds of any loan made by the department to a local agency pursuant to this paragraph shall
be used only for the establishment of additional redevelopment projects in furtherance of the
public purposes of sections 469.109 to 469.123.
    Subd. 2. Terms. Any such loan of the department shall be for the period of time and shall
bear interest at the rate determined by the department. It may be secured by a mortgage on the
redevelopment project for which the loan was made. The mortgage may be second and subordinate
only to the mortgage securing the first lien obligation, if any, issued to secure the commitment of
funds from a private or public source and used in the financing of the redevelopment project.
    Subd. 3.[Repealed, 1987 c 291 s 244; 1987 c 386 art 2 s 24]
    Subd. 4. Deposit of payments. All payments of interest on the loans and repayments of
principal shall be deposited by the department in the Minnesota account and shall be available to
be applied and reapplied to carry out the purposes of sections 469.109 to 469.123.
    Subd. 5.[Repealed, 1987 c 291 s 244; 1987 c 386 art 2 s 24]
    Subd. 6.[Repealed, 1987 c 291 s 244; 1987 c 386 art 2 s 24]
    Subd. 7.[Repealed, 1987 c 291 s 244; 1987 c 386 art 2 s 24]
    Subd. 8.[Repealed, 1987 c 291 s 244; 1987 c 386 art 2 s 24]
    Subd. 9.[Repealed, 1987 c 291 s 244; 1987 c 386 art 2 s 24]
History: 1987 c 291 s 119; 2002 c 379 art 1 s 90-92