2002 Minnesota Statutes

     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 469.058, subdivision 1.  

    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 469.059 to 469.068.  It may 
 hold and dispose of the property subject to the limits and 
 conditions in sections 469.049, 469.050, and 469.058 to 
 469.068.  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 469.049, 469.050, and 469.058 to 469.068.  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 right 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 469.049, 469.050, and 469.058 to 
 469.068. 

    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 469.048 to 469.068 and to 
 acquire and develop an industrial development district and its 
 facilities under this section.  

    Subd. 10.    Tax-forfeited land.  The port authority may 
 use the power of a governmental subdivision under section 282.01 
 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 469.048 to 
 469.068.  

    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 469.048 to 469.068 and pays one dollar 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, under section 282.12.  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 469.048 to 469.068.  

    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 469.152 to 469.165, for a 
 purpose in sections 469.001 to 469.047 or 469.048 to 469.068.  
 The port authority may also exercise the powers and duties in 
 sections 469.001 to 469.047 and 469.048 to 469.068, for a 
 purpose in sections 469.152 to 469.165.  

    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. 

    HIST: 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