2007 Minnesota Statutes

475.525 MUNICIPAL DISTRICT HEATING BONDS.
    Subdivision 1. General obligation bonds. A municipality may, by resolution, authorize,
issue and sell general obligation bonds or obligations to finance any expenditure by the
municipality for the acquisition, construction, expansion, modification or operation of a district
heating system and for the purpose of loaning the proceeds of the bonds or obligations to any
person, firm or public or private corporation to acquire, construct, expand or modify a district
heating system. Except with regard to the net debt limit as provided in section 465.74, subdivision
4 , the general obligation bonds or obligations authorized by this subdivision shall be authorized,
issued and sold in the same manner and subject only to the same conditions as those provided in
chapter 475. When revenues from the operation of a district heating system are pledged to the
repayment of the bonds or obligations, the estimated collections of said revenues so pledged may
be deducted from the taxes otherwise required to be levied before the issuance of the bonds
or obligations under section 475.61, subdivision 1, or the collections thereof may be certified
annually to reduce or cancel the initial tax levies in accordance with section 475.61, subdivision 1
or 3.
    Subd. 2. Revenue bonds. Notwithstanding any other law, general or special, or the
provisions of any home rule charter to the contrary, a municipality may, by resolution, authorize,
issue and sell revenue bonds or obligations payable solely from all or a portion of revenues
derived from a district heating system located wholly or partially within a municipality to finance
the acquisition, construction, expansion, modification, or operation of a district heating system
and for the purpose of loaning the proceeds of the bonds or obligations to any person, firm or
public or private corporation to acquire, construct, expand or modify a district heating system.
The bonds or obligations shall mature as determined by resolution of the municipality and may
be issued in one or more series and shall bear such date or dates, bear interest at such rate or
rates, be in such denomination or denominations, be in such form either coupon or registered,
carry such conversion or registration privileges, have such rank or priority, be executed in such
manner, be payable in medium of payment at such place or places, and be subject to such terms of
redemption, with or without premium, as such resolution, its trust indenture or mortgage may
provide. The bonds or obligations may be sold at public or private sale at the price or prices as
the municipality by resolution shall determine, and any provision of any law to the contrary
notwithstanding, shall be fully negotiable. In any suit, action, or proceedings involving the
validity or enforceability of any bonds or obligations of the municipality or the security therefor,
any bond or obligation reciting in substance that it has been issued by the municipality to aid in
the acquisition, construction, expansion, modification or operation of a district heating system
shall be conclusively deemed to have been issued for such purpose. Neither the municipality nor
any council member, officer, employee or agent of the municipality nor any person executing
the bonds or obligations shall be liable personally on the bonds or obligations by reason of the
issuance thereof. The bonds or obligations may be further secured by a pledge and mortgage of
all or any portion of the property in aid of which the bonds or obligations are issued and such
covenants as the municipality shall deem by such resolution to be necessary and proper to secure
payment of the bonds or obligations. The bonds or obligations, and the bonds or obligations
shall so state on their face, shall not be payable from nor charged upon any funds other than
the revenues and property pledged or mortgaged to the payment thereof, nor shall the issuing
municipality be subject to any liability thereon or have the powers to obligate itself to pay or
pay the bonds or obligations from funds other than the revenues and properties pledged and
mortgaged and no holder or holders of the bonds or obligations shall ever have the right to compel
any exercise of any taxing power of the issuing municipality or any other public body to pay
the principal of or interest on any such bonds or obligations, nor to enforce payment thereof
against any property of the municipality or other public body other than that expressly pledged or
mortgaged for the payment thereof.
    Subd. 3. Redevelopment agency. A municipality may itself, or by ordinance authorize any
redevelopment agency as defined in section 469.153, subdivision 3, acting for the municipality,
to exercise any and all of the powers granted to the municipality under subdivision 2 and to the
redevelopment agency under any other law for the purpose of financing all or any portion of the
district heating system and any conversion facilities for modifying the user's heating or water
system to use the heat energy converted from the steam or hot water furnished by the district
heating system including, but without limitation, the payment of interest during construction and
for a reasonable time thereafter and the establishment of reserves for bond payment and for
working capital, in which event if the issuer is a redevelopment agency the sources of revenue
that may be pledged to the payment of revenue bonds or obligations shall include any revenues
of the redevelopment agency. The proceeds of bonds or obligations issued by the municipality
or redevelopment agency may be used to make or purchase loans for facilities which the issuer
estimates will require such financing, and, for the purpose of making or purchasing such loans the
issuer shall have power to enter into loan agreements and other related agreements, both before
and after the issuance of the obligations, with such persons, firms, public or private corporations,
federal or state agencies, governmental units, and under such terms and conditions as the issuer
shall deem appropriate; and any governmental unit in the state shall have the power to apply,
contract for, and receive the loans without limitation under any other provisions of this chapter.
History: 1981 c 334 s 7; 1Sp1981 c 4 art 4 s 4,5; 1987 c 291 s 239