Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2002, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 390-S.F.No. 2572
An act relating to public financing; providing for
appointment of commissioners in eminent domain
proceedings; modifying a notice for proposed property
taxes; modifying terminology; delaying the expiration
of a mortgage registry and deed tax in Ramsey and
Hennepin counties; modifying terms for loans to
political subdivisions and general obligation revenue
bonds and revenue bonds; requiring notice and hearing
on certain proposed acquisitions by condemnation;
establishing limits on bond issuance for
extraterritorial projects; providing for distribution
of certain funds by the metropolitan council;
authorizing the issuance of additional obligations by
the metropolitan council with certain restrictions;
authorizing municipal obligations without an election
to pay to reconstruct streets under certain
conditions; providing for distribution of proceeds
from certain tax-forfeited lands sales in Koochiching
and Itasca counties; changing the maximum amount and
extending the period in which the city of St. Paul may
issue certain bonds; adding authority for borrowing
money; modifying provision for bonds issued for
erection of a county jail; allowing levy for and
issuance of bonds by Southwest Regional Development
Commission; defining territory of Cook county as a
hospital district and making it generally subject to
chapter 447; authorizing the city of South St. Paul to
convey parcels of real estate for construction of
single family housing; authorizing the region nine
development commission to incorporate; allowing Anoka
county to issue capital improvement bonds for a
specific purpose; establishing the Lakes Area economic
authority; providing the authority with power to levy
taxes; authorizing the city of St. Paul to establish
an independent library agency; authorizing the library
agency to issue bonds; providing for the distribution
and apportionment of certain tax-forfeited land
proceeds; amending Minnesota Statutes 2000, sections
117.075; 383A.80, subdivision 4; 383B.80, subdivision
4; 465.73; 469.012, subdivision 1; 469.034,
subdivision 2; 469.102, subdivision 2; 469.153, by
adding a subdivision; 469.155, subdivisions 3, 4, 8;
469.157; 473.252, subdivision 3; 473.39, by adding a
subdivision; 475.58, by adding a subdivision; 641.23;
Minnesota Statutes 2001 Supplement, section 275.065,
subdivision 3; Laws 1965, chapter 326, section 1,
subdivision 5, as amended; Laws 1967, chapter 170,
section 1, subdivision 5, as amended; Laws 1971,
chapter 773, section 1, subdivision 2, as amended;
Laws 1989, chapter 211, section 8, as amended;
proposing coding for new law in Minnesota Statutes,
chapter 471.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2000, section 117.075, is
amended to read:
117.075 [COURT TO APPOINT COMMISSIONERS.]
Upon proof being filed of the service of such notice, the
court, at the time and place therein fixed or to which the
hearing may be adjourned, shall hear all competent evidence
offered for or against the granting of the petition, regulating
the order of proof as it may deem best. If the proposed taking
shall appear to be necessary and such as is authorized by law,
the court by an order shall appoint three disinterested
commissioners, and at least two alternates, residents of the
county, to ascertain and report the amount of damages that will
be sustained by the several owners on account of such taking.
Before appointing a commissioner, the court shall inquire
whether each prospective commissioner has any relationship,
business or otherwise, to any of the parties in the proceeding,
or any interest in the proceeding which may constitute a
conflict of interest, or which may create the appearance of
impropriety should that person be appointed. Responses to this
inquiry must be either written or on the record and made
available by the court to any party in the proceeding before and
after appointment. No person who might have difficulty in
rendering an unbiased decision may be appointed to serve. The
court, in its discretion, may appoint one registered, practicing
attorney to the commission who is knowledgeable in eminent
domain matters. All other commissioners appointed must be
persons actively engaged in the occupation of real estate sales
or real estate appraising or persons knowledgeable in real
estate values. The order shall fix the time and place of the
first meeting of the three commissioners and prescribe their
compensation. At the first meeting at the office of the court
administrator of district court the appointees must be sworn by
the court administrator or an authorized deputy and shall take
and sign the following oath before assuming their duties as
commissioners:
(TITLE OF PROCEEDING)
................................. does swear under penalty
of perjury as follows:
I will faithfully and justly perform to the best of my
ability, all the duties of the office and trust which I now
assume as commissioner in the above entitled proceeding. I
further swear that, except as disclosed in writing or on
the record, I have no interest in any of the lands in the
above proceeding or any present or past relationship,
business or personal, with any of the parties to the above
proceeding or any other actual or potential conflict of
interest, and that I will render fair and impartial
decisions, so help me God.
The order may, in the discretion of the court, limit the
title or easement to be acquired by the petitioner by defining
the rights and privileges which the owner of any of the lands
may exercise therein in subordination to the public uses to
which it is appropriated. In case any commissioner fails to act
or fails to meet the qualifications required by this section,
the court without further notice may appoint another in that
commissioner's place.
The court administrator of court in each county shall post
in the courthouse in a prominent place a notice that a qualified
person may apply to have the person's name placed upon a list of
potential commission appointees for eminent domain proceedings.
The notice must contain the language of the oath which the
commissioners are required to take upon appointment and shall
list the other qualifications set forth in this section. The
court shall give due consideration to the names appearing on the
list, but is not bound to make appointments from the list.
Sec. 2. Minnesota Statutes 2001 Supplement, section
275.065, subdivision 3, is amended to read:
Subd. 3. [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The
county auditor shall prepare and the county treasurer shall
deliver after November 10 and on or before November 24 each
year, by first class mail to each taxpayer at the address listed
on the county's current year's assessment roll, a notice of
proposed property taxes.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority proposes to
collect for taxes payable the following year. In the case of a
town, or in the case of the state determined portion of the
school district levy, the final tax amount will be its proposed
tax. In the case of taxing authorities required to hold a
public meeting under subdivision 6, the notice must clearly
state that each taxing authority, including regional library
districts established under section 134.201, and including the
metropolitan taxing districts as defined in paragraph (i), but
excluding all other special taxing districts and towns, will
hold a public meeting to receive public testimony on the
proposed budget and proposed or final property tax levy, or, in
case of a school district, on the current budget and proposed
property tax levy. It must clearly state the time and place of
each taxing authority's meeting, a telephone number for the
taxing authority that taxpayers may call if they have questions
related to the notice, and an address where comments will be
received by mail.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under
section 273.11, and used for computing property taxes payable in
the following year and for taxes payable in the current year as
each appears in the records of the county assessor on November 1
of the current year; and, in the case of residential property,
whether the property is classified as homestead or
nonhomestead. The notice must clearly inform taxpayers of the
years to which the market values apply and that the values are
final values;
(2) the items listed below, shown separately by county,
city or town, state determined school tax net of the education
homestead credit under section 273.1382, voter approved school
levy, other local school levy, and the sum of the special taxing
districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year;
(ii) the tax change due to spending factors, defined as the
proposed tax minus the constant spending tax amount;
(iii) the tax change due to other factors, defined as the
constant spending tax amount minus the actual current year tax;
and
(iv) the proposed tax amount.
In the case of a town or the state determined school tax,
the final tax shall also be its proposed tax unless the town
changes its levy at a special town meeting under section
365.52. If a school district has certified under section
126C.17, subdivision 9, that a referendum will be held in the
school district at the November general election, the county
auditor must note next to the school district's proposed amount
that a referendum is pending and that, if approved by the
voters, the tax amount may be higher than shown on the notice.
In the case of the city of Minneapolis, the levy for the
Minneapolis library board and the levy for Minneapolis park and
recreation shall be listed separately from the remaining amount
of the city's levy. In the case of the city of St. Paul, the
levy for the St. Paul library agency must be listed separately
from the remaining amount of the city's levy. In the case of a
parcel where tax increment or the fiscal disparities areawide
tax under chapter 276A or 473F applies, the proposed tax levy on
the captured value or the proposed tax levy on the tax capacity
subject to the areawide tax must each be stated separately and
not included in the sum of the special taxing districts; and
(3) the increase or decrease between the total taxes
payable in the current year and the total proposed taxes,
expressed as a percentage.
For purposes of this section, the amount of the tax on
homesteads qualifying under the senior citizens' property tax
deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax
amount.
(e) The notice must clearly state that the proposed or
final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the
proposed taxes are certified, including bond referenda, school
district levy referenda, and levy limit increase referenda;
(3) amounts necessary to pay cleanup or other costs due to
a natural disaster occurring after the date the proposed taxes
are certified;
(4) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed
taxes are certified; and
(5) the contamination tax imposed on properties which
received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the
notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the
tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead, and satisfactory
documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the
homestead classification in that assessment year, the assessor
shall reclassify the property to homestead for taxes payable in
the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the
taxpayer must either:
(1) mail or deliver a copy of the notice of proposed
property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice,
whichever is later. A taxpayer may notify the county treasurer
of the address of the taxpayer, agent, caretaker, or manager of
the premises to which the notice must be mailed in order to
fulfill the requirements of this paragraph.
(i) For purposes of this subdivision, subdivisions 5a and
6, "metropolitan special taxing districts" means the following
taxing districts in the seven-county metropolitan area that levy
a property tax for any of the specified purposes listed below:
(1) metropolitan council under section 473.132, 473.167,
473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) metropolitan airports commission under section 473.667,
473.671, or 473.672; and
(3) metropolitan mosquito control commission under section
473.711.
For purposes of this section, any levies made by the
regional rail authorities in the county of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and
shall be discussed at that county's public hearing.
(j) If a statutory or home rule charter city or a town has
exercised the local levy option provided by section 473.388,
subdivision 7, it may include in the notice of its proposed
taxes the amount of its proposed taxes attributable to its
exercise of the option. In the first year of the city or town's
exercise of this option, the statement shall include an estimate
of the reduction of the metropolitan council's tax on the parcel
due to exercise of that option. The metropolitan council's levy
shall be adjusted accordingly.
[EFFECTIVE DATE.] This section is effective for notices
prepared after the day following final enactment.
Sec. 3. Minnesota Statutes 2000, section 383A.80,
subdivision 4, is amended to read:
Subd. 4. [EXPIRATION.] The authority to impose the tax
under this section expires January 1, 2003 2008.
Sec. 4. Minnesota Statutes 2000, section 383B.80,
subdivision 4, is amended to read:
Subd. 4. [EXPIRATION.] The authority to impose the tax
under this section expires January 1, 2003 2008.
Sec. 5. Minnesota Statutes 2000, section 465.73, is
amended to read:
465.73 [TOWN HALLS; FIRE HALLS OR RESCUE EQUIPMENT; LOANS
TO POLITICAL SUBDIVISIONS FUNDED OR SECURED UNDER UNITED STATES
AGRICULTURE DEPARTMENT PROGRAMS.]
For purposes of constructing, repairing, or acquiring city
halls, town halls, fire halls or fire or rescue equipment any,
or libraries or child care facilities if otherwise authorized by
law, a city, county, or town may borrow up not to
$250,000 exceed $450,000 from (i) funds granted to a rural
electric cooperative organized under chapter 308A by, the United
States Department of Agriculture Rural Business-Cooperative
Service or (ii) directly from or in the form of funds guaranteed
by the Farmers Home Administration Rural Housing Service or
other agency of the United States Department of Agriculture on
by a note secured by a mortgage or other security agreement on
the property purchased with the borrowed funds. The city,
county, or town may pledge its full faith and credit and assign
or pledge the revenues, if any, from the town halls, fire or
rescue department, or fire hall or facilities or equipment so
financed together with any other properly available funds,
including taxes levied pursuant to section 475.61 to the Farmers
Home Administration or other agency of the United States
Department of Agriculture or its guaranteed lender or a rural
electric cooperative organized under chapter 308A as its grantee
to repay to secure the loan. The amount of the obligation shall
not be obligation of the note is not to be included when
computing the net debt of the city, county, or town. An
election shall not be required to authorize the note and
mortgage or assignment of revenues, nor is the approval of the
voters required for the issuance of the note.
Sec. 6. Minnesota Statutes 2000, section 469.012,
subdivision 1, is amended to read:
Subdivision 1. [SCHEDULE OF POWERS.] An authority shall be
a public body corporate and politic and shall have all the
powers necessary or convenient to carry out the purposes of
sections 469.001 to 469.047, except that the power to levy and
collect taxes or special assessments is limited to the power
provided in sections 469.027 to 469.033. Its powers include the
following powers in addition to others granted in sections
469.001 to 469.047:
(1) to sue and be sued; to have a seal, which shall be
judicially noticed, and to alter it; to have perpetual
succession; and to make, amend, and repeal rules consistent with
sections 469.001 to 469.047;
(2) to employ an executive director, technical experts, and
officers, agents, and employees, permanent and temporary, that
it requires, and determine their qualifications, duties, and
compensation; for legal services it requires, to call upon the
chief law officer of the city or to employ its own counsel and
legal staff; so far as practicable, to use the services of local
public bodies in its area of operation, provided that those
local public bodies, if requested, shall make the services
available;
(3) to delegate to one or more of its agents or employees
the powers or duties it deems proper;
(4) within its area of operation, to undertake, prepare,
carry out, and operate projects and to provide for the
construction, reconstruction, improvement, extension,
alteration, or repair of any project or part thereof;
(5) subject to the provisions of section 469.026, to give,
sell, transfer, convey, or otherwise dispose of real or personal
property or any interest therein and to execute leases, deeds,
conveyances, negotiable instruments, purchase agreements, and
other contracts or instruments, and take action that is
necessary or convenient to carry out the purposes of these
sections;
(6) within its area of operation, to acquire real or
personal property or any interest therein by gifts, grant,
purchase, exchange, lease, transfer, bequest, devise, or
otherwise, and by the exercise of the power of eminent domain,
in the manner provided by chapter 117, to acquire real property
which it may deem necessary for its purposes, after the adoption
by it of a resolution declaring that the acquisition of the real
property is necessary to eliminate one or more of the conditions
found to exist in the resolution adopted pursuant to section
469.003 or to provide decent, safe, and sanitary housing for
persons of low and moderate income, or is necessary to carry out
a redevelopment project. Real property needed or convenient for
a project may be acquired by the authority for the project by
condemnation pursuant to this section. This includes Prior to
adoption of a resolution authorizing acquisition of property by
condemnation, the governing body of the authority must hold a
public hearing on the proposed acquisition after published
notice in a newspaper of general circulation in the
municipality, which must be made at least one time not less than
ten days nor more than 30 days prior to the date of the
hearing. The notice must reasonably describe the property to be
acquired and state that the purpose of the hearing is to
consider acquisition by exercise of the authority's powers of
eminent domain. Not less than ten days before the hearing,
notice of the hearing must also be mailed to the owner of each
parcel proposed to be acquired, but failure to give mailed
notice or any defects in the notice does not invalidate the
acquisition. For the purpose of giving mailed notice, owners
are determined in accordance with section 429.031, subdivision
1, paragraph (a). Property acquired by condemnation under this
section may include any property devoted to a public use,
whether or not held in trust, notwithstanding that the property
may have been previously acquired by condemnation or is owned by
a public utility corporation, because the public use in
conformity with the provisions of sections 469.001 to 469.047
shall be deemed a superior public use. Property devoted to a
public use may be so acquired only if the governing body of the
municipality has approved its acquisition by the authority. An
award of compensation shall not be increased by reason of any
increase in the value of the real property caused by the
assembly, clearance or reconstruction, or proposed assembly,
clearance or reconstruction for the purposes of sections 469.001
to 469.047 of the real property in an area;
(7) within its area of operation, and without the adoption
of an urban renewal plan, to acquire, by all means as set forth
in clause (6) but without the adoption of a resolution provided
for in clause (6), real property, and to demolish, remove,
rehabilitate, or reconstruct the buildings and improvements or
construct new buildings and improvements thereon, or to so
provide through other means as set forth in Laws 1974, chapter
228, or to grade, fill, and construct foundations or otherwise
prepare the site for improvements. The authority may dispose of
the property pursuant to section 469.029, provided that the
provisions of section 469.029 requiring conformance to an urban
renewal plan shall not apply. The authority may finance these
activities by means of the redevelopment project fund or by
means of tax increments or tax increment bonds or by the methods
of financing provided for in section 469.033 or by means of
contributions from the municipality provided for in section
469.041, clause (9), or by any combination of those means. Real
property with buildings or improvements thereon shall only be
acquired under this clause when the buildings or improvements
are substandard. The exercise of the power of eminent domain
under this clause shall be limited to real property which
contains, or has contained within the three years immediately
preceding the exercise of the power of eminent domain and is
currently vacant, buildings and improvements which are vacated
and substandard. Notwithstanding the prior sentence, in cities
of the first class the exercise of the power of eminent domain
under this clause shall be limited to real property which
contains, or has contained within the three years immediately
preceding the exercise of the power of eminent domain, buildings
and improvements which are substandard. For the purpose of this
clause, substandard buildings or improvements mean hazardous
buildings as defined in section 463.15, subdivision 3, or
buildings or improvements that are dilapidated or obsolescent,
faultily designed, lack adequate ventilation, light, or sanitary
facilities, or any combination of these or other factors that
are detrimental to the safety or health of the community. The
exercise of the power of eminent domain under this clause is
subject to the notice and hearing requirements described in
clause (6);
(8) within its area of operation, to determine the level of
income constituting low or moderate family income. The
authority may establish various income levels for various family
sizes. In making its determination, the authority may consider
income levels that may be established by the Department of
Housing and Urban Development or a similar or successor federal
agency for the purpose of federal loan guarantees or subsidies
for persons of low or moderate income. The authority may use
that determination as a basis for the maximum amount of income
for admissions to housing development projects or housing
projects owned or operated by it;
(9) to provide in federally assisted projects any
relocation payments and assistance necessary to comply with the
requirements of the Federal Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, and any
amendments or supplements thereto;
(10) to make an agreement with the governing body or bodies
creating the authority which provides exemption from all ad
valorem real and personal property taxes levied or imposed by
the body or bodies creating the authority. In the case of
low-rent public housing that received financial assistance under
the United States Housing Act of 1937, or successor federal
legislation, an authority may make an agreement with the
governing body or bodies creating the authority to provide
exemption from all real and personal property taxes levied or
imposed by the state, city, county, or other political
subdivision, for which the authority shall make payments in lieu
of taxes to the state, city, county, or other political
subdivisions as provided in section 469.040. The governing body
shall agree on behalf of all the applicable governing bodies
affected that local cooperation as required by the federal
government shall be provided by the local governing body or
bodies in whose jurisdiction the project is to be located, at no
cost or at no greater cost than the same public services and
facilities furnished to other residents;
(11) to cooperate with or act as agent for the federal
government, the state or any state public body, or any agency or
instrumentality of the foregoing, in carrying out any of the
provisions of sections 469.001 to 469.047 or of any other
related federal, state, or local legislation; and upon the
consent of the governing body of the city to purchase, lease,
manage, or otherwise take over any housing project already owned
and operated by the federal government;
(12) to make plans for carrying out a program of voluntary
repair and rehabilitation of buildings and improvements, and
plans for the enforcement of laws, codes, and regulations
relating to the use of land and the use and occupancy of
buildings and improvements, and to the compulsory repair,
rehabilitation, demolition, or removal of buildings and
improvements. The authority may develop, test, and report
methods and techniques, and carry out demonstrations and other
activities for the prevention and elimination of slums and
blight;
(13) to borrow money or other property and accept
contributions, grants, gifts, services, or other assistance from
the federal government, the state government, state public
bodies, or from any other public or private sources;
(14) to include in any contract for financial assistance
with the federal government any conditions that the federal
government may attach to its financial aid of a project, not
inconsistent with purposes of sections 469.001 to 469.047,
including obligating itself (which obligation shall be
specifically enforceable and not constitute a mortgage,
notwithstanding any other laws) to convey to the federal
government the project to which the contract relates upon the
occurrence of a substantial default with respect to the
covenants or conditions to which the authority is subject; to
provide in the contract that, in case of such conveyance, the
federal government may complete, operate, manage, lease, convey,
or otherwise deal with the project until the defaults are cured
if the federal government agrees in the contract to reconvey to
the authority the project as then constituted when the defaults
have been cured;
(15) to issue bonds for any of its corporate purposes and
to secure the bonds by mortgages upon property held or to be
held by it or by pledge of its revenues, including grants or
contributions;
(16) to invest any funds held in reserves or sinking funds,
or any funds not required for immediate disbursement, in
property or securities in which savings banks may legally invest
funds subject to their control or in the manner and subject to
the conditions provided in section 118A.04 for the deposit and
investment of public funds;
(17) within its area of operation, to determine where
blight exists or where there is unsafe, unsanitary, or
overcrowded housing;
(18) to carry out studies of the housing and redevelopment
needs within its area of operation and of the meeting of those
needs. This includes study of data on population and family
groups and their distribution according to income groups, the
amount and quality of available housing and its distribution
according to rentals and sales prices, employment, wages,
desirable patterns for land use and community growth, and other
factors affecting the local housing and redevelopment needs and
the meeting of those needs; to make the results of those studies
and analyses available to the public and to building, housing,
and supply industries;
(19) if a local public body does not have a planning agency
or the planning agency has not produced a comprehensive or
general community development plan, to make or cause to be made
a plan to be used as a guide in the more detailed planning of
housing and redevelopment areas;
(20) to lease or rent any dwellings, accommodations, lands,
buildings, structures, or facilities included in any project
and, subject to the limitations contained in sections 469.001 to
469.047 with respect to the rental of dwellings in housing
projects, to establish and revise the rents or charges therefor;
(21) to own, hold, and improve real or personal property
and to sell, lease, exchange, transfer, assign, pledge, or
dispose of any real or personal property or any interest
therein;
(22) to insure or provide for the insurance of any real or
personal property or operations of the authority against any
risks or hazards;
(23) to procure or agree to the procurement of government
insurance or guarantees of the payment of any bonds or parts
thereof issued by an authority and to pay premiums on the
insurance;
(24) to make expenditures necessary to carry out the
purposes of sections 469.001 to 469.047;
(25) to enter into an agreement or agreements with any
state public body to provide informational service and
relocation assistance to families, individuals, business
concerns, and nonprofit organizations displaced or to be
displaced by the activities of any state public body;
(26) to compile and maintain a catalog of all vacant, open
and undeveloped land, or land which contains substandard
buildings and improvements as that term is defined in clause
(7), that is owned or controlled by the authority or by the
governing body within its area of operation and to compile and
maintain a catalog of all authority owned real property that is
in excess of the foreseeable needs of the authority, in order to
determine and recommend if the real property compiled in either
catalog is appropriate for disposal pursuant to the provisions
of section 469.029, subdivisions 9 and 10;
(27) to recommend to the city concerning the enforcement of
the applicable health, housing, building, fire prevention, and
housing maintenance code requirements as they relate to
residential dwelling structures that are being rehabilitated by
low- or moderate-income persons pursuant to section 469.029,
subdivision 9, for the period of time necessary to complete the
rehabilitation, as determined by the authority;
(28) to recommend to the city the initiation of municipal
powers, against certain real properties, relating to repair,
closing, condemnation, or demolition of unsafe, unsanitary,
hazardous, and unfit buildings, as provided in section 469.041,
clause (5);
(29) to 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;
(30) within its area of operation, to acquire and sell real
property that is benefited by federal housing assistance
payments, other rental subsidies, interest reduction payments,
or interest reduction contracts for the purpose of preserving
the affordability of low- and moderate-income multifamily
housing;
(31) to apply for, enter into contracts with the federal
government, administer, and carry out a section 8 program.
Authorization by the governing body creating the authority to
administer the program at the authority's initial application is
sufficient to authorize operation of the program in its area of
operation for which it was created without additional local
governing body approval. Approval by the governing body or
bodies creating the authority constitutes approval of a housing
program for purposes of any special or general law requiring
local approval of section 8 programs undertaken by city, county,
or multicounty authorities; and
(32) to secure a mortgage or loan for a rental housing
project by obtaining the appointment of receivers or assignments
of rents and profits under sections 559.17 and 576.01, except
that the limitation relating to the minimum amounts of the
original principal balances of mortgages specified in sections
559.17, subdivision 2, clause (2); and 576.01, subdivision 2,
does not apply.
Sec. 7. Minnesota Statutes 2000, section 469.034,
subdivision 2, is amended to read:
Subd. 2. [GENERAL OBLIGATION REVENUE BONDS.] (a) An
authority may pledge the general obligation of the general
jurisdiction governmental unit as additional security for bonds
payable from income or revenues of the project or the
authority. The authority must find that the pledged revenues
will equal or exceed 110 percent of the principal and interest
due on the bonds for each year. The proceeds of the bonds must
be used for a qualified housing development project or
projects. The obligations must be issued and sold in the manner
and following the procedures provided by chapter 475, except the
obligations are not subject to approval by the electors and the
maturities may extend to not more than 30 years from the
estimated date of completion of the project. The authority is
the municipality for purposes of chapter 475.
(b) The principal amount of the issue must be approved by
the governing body of the general jurisdiction governmental unit
whose general obligation is pledged. Public hearings must be
held on issuance of the obligations by both the authority and
the general jurisdiction governmental unit. The hearings must
be held at least 15 days, but not more than 120 days, before the
sale of the obligations.
(c) The maximum amount of general obligation bonds that may
be issued and outstanding under this section equals the greater
of (1) one-half of one percent of the taxable market value of
the general jurisdiction governmental unit whose general
obligation which includes a tax on property is pledged, or (2)
$3,000,000. In the case of county or multicounty general
obligation bonds, the outstanding general obligation bonds of
all cities in the county or counties issued under this
subdivision must be added in calculating the limit under clause
(1).
(d) "General jurisdiction governmental unit" means the city
in which the housing development project is located. In the
case of a county or multicounty authority, the county or
counties may act as the general jurisdiction governmental unit.
In the case of a multicounty authority, the pledge of the
general obligation is a pledge of a tax on the taxable property
in each of the counties.
(e) "Qualified housing development project" means a housing
development project providing housing either for the elderly or
for individuals and families with incomes not greater than 80
percent of the median family income as estimated by the United
States Department of Housing and Urban Development for the
standard metropolitan statistical area or the nonmetropolitan
county in which the project is located, and will be owned by the
authority for the term of the bonds. A qualified housing
development project may admit nonelderly individuals and
families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing
unanticipated vacancies resulting in insufficient revenues,
because of changes in population or other unforeseen
circumstances that occurred after the initial finding of
adequate revenues; and
(3) the authority finds a tax levy or payment from general
assets of the general jurisdiction governmental unit will be
necessary to pay debt service on the bonds if higher income
individuals or families are not admitted.
Sec. 8. Minnesota Statutes 2000, section 469.102,
subdivision 2, is amended to read:
Subd. 2. [DETAIL; MATURITY.] The authority with the
consent of its city's council shall set the date, denominations,
place of payment, form, and details of the bonds. The bonds
must mature serially. The first installment is due in not more
than three years and the last in not more than 20 30 years from
the date of issuance.
Sec. 9. Minnesota Statutes 2000, section 469.153, is
amended by adding a subdivision to read:
Subd. 13. [RELATED PUBLIC IMPROVEMENTS.] "Related public
improvements" means any public improvements described in section
429.021, that are acquired and constructed in connection with
the project and are financed by the contracting party under the
revenue agreement.
Sec. 10. Minnesota Statutes 2000, section 469.155,
subdivision 3, is amended to read:
Subd. 3. [REVENUE BONDS.] (a) It may issue revenue bonds,
in anticipation of the collection of revenues of a project to be
situated within the state, to finance, in whole or in part, the
cost of the acquisition, construction, reconstruction,
improvement, betterment, or extension thereof and of any related
public improvements.
(b) It may issue revenue bonds to purchase the obligations
of local government units located in whole or in part within the
boundaries of the municipality. The proceeds of bonds issued to
purchase obligations as provided under this paragraph may be
disbursed or otherwise used to pay underwriter's or placement
fees, expenses, or other costs of issuance and sale for the
bonds only on a pro rata basis determined with respect to the
portion of the proceeds that are used to purchase the
obligations. The municipality may not pay the underwriter's or
placement fees, expenses, or other costs of issuance and sale
out of other money.
Sec. 11. Minnesota Statutes 2000, section 469.155,
subdivision 4, is amended to read:
Subd. 4. [REFINANCING NONPROFIT FACILITIES.] It may issue
revenue bonds to pay, purchase, or discharge all or any part of
the outstanding indebtedness of a contracting party that is an a
qualifying organization described in section 501(c)(3) of the
Internal Revenue Code primarily engaged in health care-related
activities or in activities for mentally or physically disabled
persons or that is engaged primarily in the operation of one or
more nonprofit hospitals or nursing homes previously incurred in
the acquisition or betterment of its existing facilities to the
extent deemed necessary by the governing body of the
municipality or redevelopment agency; this may include any
unpaid interest on the indebtedness accrued or to accrue to the
date on which the indebtedness is finally paid, and any premium
the governing body of the municipality or redevelopment agency
determines to be necessary to be paid to pay, purchase, or
defease the outstanding indebtedness. If revenue bonds are
issued for this purpose, the refinancing and the existing
properties of the contracting party shall be deemed to
constitute a project under section 469.153, subdivision 2,
clause (b), (c), or (d).
For purposes of this subdivision, "qualifying organization"
means an organization that is primarily engaged in one or more
of the following:
(1) health care related activities;
(2) activities for mentally or physically disabled persons;
(3) the operation of one or more nonprofit hospitals or
nursing homes;
(4) educational activities as an elementary, secondary, or
post-secondary school;
(5) presentation of artistic performances or arts
education, such as theaters and museums; or
(6) providing social services, such as providing assistance
to the poor, distressed, or underprivileged.
Sec. 12. Minnesota Statutes 2000, section 469.155,
subdivision 8, is amended to read:
Subd. 8. [IMPLEMENTATION OF POWERS AND COVENANTS;
CONSTRUCTION AND ACQUISITION BY CONTRACTING PARTY.] It may make
all contracts, execute all instruments, and do all things
necessary or convenient in the exercise of the powers granted in
sections 469.152 to 469.165, or in the performance of its
covenants or duties, or in order to secure the payment of its
bonds. It may enter into a revenue agreement authorizing the
contracting party, subject to any terms and conditions the
municipality or redevelopment agency finds necessary or
desirable and proper, to provide for the construction,
acquisition, and installation of the buildings, improvements,
and equipment to be included in the project and any related
public improvements by any means legally available to the
contracting party and in the manner determined by the
contracting party and without advertisement for bids unless
advertisement by the contracting party is otherwise required by
law.
Sec. 13. Minnesota Statutes 2000, section 469.157, is
amended to read:
469.157 [DETERMINATION OF COST OF PROJECT.]
In determining the cost of a project, the governing body
may include all cost and estimated cost of the acquisition,
construction, reconstruction, improvement, betterment, and
extension of the project and any related public improvements,
all engineering, inspection, fiscal, legal, administrative, and
printing expense, the interest which it is estimated will accrue
during the construction period and for six months thereafter on
money borrowed or which it is estimated will be borrowed
pursuant to sections 469.152 to 469.165, and bond reserves and
premiums for insurance of lease rentals pledged to pay the bonds.
Sec. 14. [471.656] [LIMITS ON BOND ISSUANCE FOR
EXTRATERRITORIAL PROJECTS.]
Subdivision 1. [GENERAL RULE.] Notwithstanding any law to
the contrary, neither a municipality nor an authority may issue
obligations to finance the acquisition or improvement of real
property located outside of the corporate boundaries of the
issuer.
Subd. 2. [EXEMPTIONS.] Subdivision 1 does not apply if:
(1) the issuing governmental unit is the owner of the
property to be financed; or
(2) for property or two or more properties constituting a
single project located in a city, the governing body of the city
consents, by resolution, to issuance of the obligations; or
(3) for property or two or more properties constituting a
single project located outside of a city or in two or more
cities or towns, the governing body of the county in which the
property is located consents, by resolution, to issuance of the
obligations; or
(4) the obligations are issued under a joint powers
agreement, whether issued by a joint powers board or by one or
more of the parties to the joint powers agreement, and the
property is located entirely within the boundaries of one or
more of the parties to the joint powers agreement; or
(5) the issuer is a municipality or municipalities acting
under a joint powers agreement and the financing is for the
acquisition or improvement of property, facilities, or rights of
use or access thereto which are necessary or useful in the
operation of municipal public utilities; or
(6) the issuer is a municipal power agency established
under chapter 453 or a municipal gas agency established under
chapter 453A.
Subd. 3. [DEFINITIONS.] (a) The definitions in section
475.51 apply to this section and the following terms have the
meanings given in this subdivision.
(b) "Authority" means, whether created under general or
special law:
(1) a housing and redevelopment authority;
(2) an economic development authority;
(3) a port authority;
(4) a rural development financing authority; or
(5) other similar local government entities that are
authorized by law to issue obligations.
(c) "Municipal public utilities" means the provision by a
municipality of electricity, natural gas, water, waste water
removal and treatment, telecommunications, district heating, or
cable television and related services.
(d) "Owner of the property" means the entity or entities
that are the fee or equitable owners and that are economically
at risk with regard to the property.
(e) "Real property" includes an easement and improvements
made to a leasehold of real property.
[EFFECTIVE DATE.] This section is effective for obligations
issued or sold after June 30, 2002.
Sec. 15. Minnesota Statutes 2000, section 473.252,
subdivision 3, is amended to read:
Subd. 3. [DISTRIBUTION OF FUNDS.] (a) The council must use
the funds in the account to make grants to municipalities or
development authorities for the cleanup of polluted land in the
metropolitan area. A grant to a metropolitan county or a
development authority must be used for a project in a
participating municipality. The council shall prescribe and
provide the grant application form to municipalities. The
council must consider the probability of funding from other
sources when making grants under this section.
(b)(1) The legislature expects that applications for grants
will exceed the available funds and the council will be able to
provide grants to only some of the applicant municipalities. If
applications for grants for qualified sites exceed the available
funds, the council shall make grants that provide the highest
return in public benefits for the public costs incurred, that
encourage commercial and industrial development that will lead
to the preservation or growth of living-wage jobs or the
production of affordable housing, and that enhance the tax base
of the recipient municipality.
(2) In making grants, the council shall establish regular
application deadlines in which grants will be awarded from the
available money in the account. If the council provides for
application cycles of less than six-month intervals, the council
must reserve at least 40 percent of the receipts of the account
for a year for application deadlines that occur in the second
half of the year. If the applications for grants exceed the
available funds for an application cycle, no more than one-half
of the funds may be granted to projects in a statutory or home
rule charter city and no more than three-quarters of the funds
may be granted to projects located in cities of the first class.
(c) A municipality may use the grant to provide a portion
of the local match requirement for project costs that qualify
for a grant under sections 116J.551 to 116J.557.
Sec. 16. Minnesota Statutes 2000, section 473.39, is
amended by adding a subdivision to read:
Subd. 1i. [OBLIGATIONS.] After July 1, 2002, in addition
to the authority in subdivisions 1a, 1b, 1c, 1d, 1e, 1g, and 1h,
the council may issue certificates of indebtedness, bonds, or
other obligations under this section in an amount not exceeding
$54,000,000 for capital expenditures as prescribed in the
council's regional transit master plan and transit capital
improvement program and for related costs, including the costs
of issuance and sale of the obligations, but not for computer
software, or for construction, maintenance, or operation of
light rail transit or commuter rail.
Sec. 17. [APPLICATION.]
Sections 15 and 16 apply in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 18. Minnesota Statutes 2000, section 475.58, is
amended by adding a subdivision to read:
Subd. 3b. [STREET RECONSTRUCTION.] (a) A municipality may,
without regard to the election requirement under subdivision 1,
issue and sell obligations for street reconstruction, if the
following conditions are met:
(1) the streets are reconstructed under a street
reconstruction plan that describes the streets to be
reconstructed, the estimated costs, and any planned
reconstruction of other streets in the municipality over the
next five years, and the plan and issuance of the obligations
has been approved by a vote of all of the members of the
governing body following a public hearing for which notice has
been published in the official newspaper at least ten days but
not more than 28 days prior to the hearing; and
(2) if a petition requesting a vote on the issuance is
signed by voters equal to five percent of the votes cast in the
last municipal general election and is filed with the municipal
clerk within 30 days of the public hearing, the municipality may
issue the bonds only after obtaining the approval of a majority
of the voters voting on the question of the issuance of the
obligations.
(b) Obligations issued under this subdivision are subject
to the debt limit of the municipality and are not excluded from
net debt under section 475.51, subdivision 4.
Sec. 19. Minnesota Statutes 2000, section 641.23, is
amended to read:
641.23 [FUNDS, HOW PROVIDED.]
Before any contract is made for the erection of a county
jail, sheriff's residence, or both, the county board shall
either levy a sufficient tax to provide the necessary funds, or
issue county bonds therefor in accordance with the provisions of
chapter 475, provided that, unless the issuance of the bonds is
approved by the majority of voters voting on the question of
their issuance, no election is required if the amount of all
bonds issued for this purpose and interest on them which are due
and payable in any year shall does not exceed an amount equal to
0.09671 percent of market value of taxable property within the
county, as last determined before the bonds are issued.
Sec. 20. Laws 1965, chapter 326, section 1, subdivision 5,
as amended by Laws 1975, chapter 110, section 1, Laws 1985,
chapter 87, section 3, and Laws 1998, chapter 389, article 11,
section 11, is amended to read:
Subd. 5. [PROMOTION OF TOURIST, AGRICULTURAL AND
INDUSTRIAL DEVELOPMENT.] Promotion of tourist, agricultural and
industrial development. The amount to be spent annually for the
purposes of this subdivision shall not exceed $4 $10 per capita
of the county's population.
Sec. 21. Laws 1967, chapter 170, section 1, subdivision 5,
as amended by Laws 1985, chapter 87, section 6, and Laws 1998,
chapter 389, article 11, section 12, is amended to read:
Subd. 5. Promotion of tourist, agricultural and industrial
developments. The amount to be spent annually for the purposes
of this subdivision shall not exceed $4 $10 per capita of the
county's population.
Sec. 22. [SOUTHWEST REGIONAL DEVELOPMENT COMMISSION; LEVY;
DEBT.]
(a) In addition to other levies authorized by law, the
Southwest Regional Development Commission may levy in each year
through 2010, for taxes payable through 2011, an additional
amount sufficient to retire its remaining debt in connection
with the Prairie Expo project located in Worthington not to
exceed $232,080 annually.
(b) The commission may issue bonds or other obligations
under Minnesota Statutes, chapter 475, in an aggregate principal
amount not to exceed $1,632,224, to retire the debt sooner. In
that case the levy authorized in paragraph (a) may be used for
debt service on the bonds or other obligations, issued to retire
the debt.
[EFFECTIVE DATE; LOCAL APPROVAL.] (a) This section is only
effective as to all affected government bodies on the day after
the last act of compliance under paragraphs (b) and (c) is
timely completed.
(b) The governing body of the Southwest Regional
Development Commission and its chief clerical officer have
timely completed their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
(c) The governing body of each county in the development
region and its chief clerical officer have timely completed
their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 23. Laws 1971, chapter 773, section 1, subdivision 2,
as amended by Laws 1974, chapter 351, section 5, Laws 1976,
chapter 234, sections 1 and 7, Laws 1978, chapter 788, section
1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302,
section 1, Laws 1988, chapter 513, section 1, Laws 1992, chapter
511, article 9, section 23, and Laws 1998, chapter 389, article
3, section 27, is amended to read:
Subd. 2. For each of the years through 2003 to 2013, the
city of St. Paul is authorized to issue bonds in the aggregate
principal amount of $15,000,000 $20,000,000 for each year; or in
an amount equal to one-fourth of one percent of the assessors
estimated market value of taxable property in St. Paul,
whichever is greater, provided that no more than $15,000,000 of
bonds is authorized to be issued in any year, unless St. Paul's
local general obligation debt as defined in this section is less
than six percent of market value calculated as of December 31 of
the preceding year; but at no time shall the aggregate principal
amount of bonds authorized exceed $18,000,000 in 1998,
$18,000,000 in 1999, $19,000,000 in 2000, $19,000,000 in 2001,
$19,500,000 in 2002, and $20,000,000 in 2003.
Sec. 24. Laws 1989, chapter 211, section 8, as amended by
Laws 1992, chapter 505, section 3, is amended to read:
Sec. 8. [COOK COUNTY; HOSPITAL DISTRICT.]
Subdivision 1. [CREATION; REFERENDUM.] The board of
commissioners of Cook county may by resolution create a Cook
county hospital district. The resolution providing for creation
of the district must be published in the official newspaper of
the county. If within ten days after the publication a petition
is filed with the county board that is signed by qualified
voters of the county at least equal in number to ten percent of
the number of voters voting at the most recent election of
county commissioners, requesting a referendum on the resolution,
it shall not be effective until it is approved by a majority of
qualified voters voting on the question at a special or general
election.
Subd. 2. [OPERATION OF DISTRICT.] A hospital district
created under this section shall be subject to Minnesota
Statutes, sections 397.06 to 397.102 447.32, except subdivision
1, to 447.41, and except as provided otherwise in this act.
Subd. 3. [BOARD.] Notwithstanding Minnesota Statutes,
section 397.06 447.32, the board of the district shall be
comprised of one member from each county commissioner district
elected by the voters at the first general election in the
county after the resolution has become effective. At the 1992
general election, the board members from districts one, three,
and five shall be elected to two-year terms and board members
from districts two and four to four-year terms. Their
successors shall be elected to regular four-year terms in 1994,
1996, and thereafter. Terms shall begin on the first day of
January following the election.
If members are elected in 1990, their terms shall be two
years. When the district is first created, the county
commissioner from each district shall appoint a member of the
board to serve until the commencement of the term of a successor.
When a vacancy occurs, the county commissioner from the
district affected majority of the remaining members of the board
of the hospital district shall appoint a member to serve until
January 1 following the next general election in the county,
when at which a successor shall be elected for a full regular
term if the full regular term of the seat that had the vacancy
is expiring on that January 1 or otherwise, for the unexpired
remainder of the regular that seat's term.
Subd. 4. [TAX LEVY.] The tax levied under Minnesota
Statutes, section 397.09 447.34, shall not exceed $300,000 in
any year, and its proceeds may be used for all purposes of the
hospital district.
Subd. 5. [TERRITORY.] The territory of the entire county
of Cook is the hospital district.
Subd. 6. [REFERENCES.] The county acts in the place of
cities and towns for purposes of Minnesota Statutes, sections
447.32, except subdivision 1, to 447.41; and all references made
to hospital districts in Minnesota Statutes, sections 447.32,
except subdivision 1, to 447.41, apply to the Cook county
hospital district.
Subd. 7. [APPLICATION.] Minnesota Statutes, section
447.38, subdivision 2, does not apply to the hospital district
created under this section.
[EFFECTIVE DATE.] For purposes of Minnesota Statutes,
section 645.021, subdivisions 2 and 3, Cook county and the Cook
county hospital district are the local governmental units
affected. This section is effective the day after the latter of
the governing bodies of:
(1) Cook county and its chief clerical officer; and
(2) the Cook county hospital district and its chief
clerical officer;
timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
Sec. 25. [SOUTH ST. PAUL; SINGLE-FAMILY HOUSING.]
Due to the shortage of single-family housing in the city of
South St. Paul, the legislature finds and declares that it is a
public purpose for the city to facilitate the construction of
single-family homes to the greatest extent possible. The city
of South St. Paul may convey to a private person, firm,
partnership, corporation, or other entity a parcel of real
estate acquired from the Minnesota department of transportation
by quit claim deed, that parcel described as: "That part of the
Southwest Quarter of the Northwest Quarter of Section 28,
Township 28 North, Range 22 West, Dakota County, Minnesota,
described as follows:
Beginning at the West Quarter corner of said Section 28;
thence East on the East and West Quarter line of said Section 28
a distance of 570 feet; thence run Northwesterly to a point on
the East line of the West 221.5 feet of said Southwest Quarter
of the Northwest Quarter, distant 280 feet North of its
intersection with the East and West Quarter line of said Section
28; thence run Northwesterly to a point on the West line of said
Section 28, distant 375 feet North of the West Quarter corner
thereof; thence run South on said West section line 375 feet to
the point of beginning."
The legislature declares that the conveyance to a private
person, firm, partnership, corporation, or other entity for the
construction of single-family residential dwellings is a public
purpose.
[EFFECTIVE DATE.] This section is effective without local
approval on the day following its final enactment.
Sec. 26. [REGION NINE DEVELOPMENT COMMISSION; NONPROFIT
CORPORATION ESTABLISHED.]
Subdivision 1. [AUTHORIZATION.] The region nine
development commission may incorporate and authorize the
incorporation of a nonprofit corporation to reduce dependence on
tax dollars in filling regional service gaps and funding rural
programs by improving the region's access to other funding
sources.
Subd. 2. [BOARD OF DIRECTORS.] The corporation must be
governed by a board of nine directors. The directors must be
named by the region nine development commission. No more than
five of the directors may be persons currently serving on the
region nine development commission. Board members must not be
compensated for their services but may be reimbursed for
reasonable expenses incurred in connection with their duties as
board members.
Subd. 3. [ARTICLES AND BYLAWS.] The entity must be
incorporated under Minnesota Statutes, chapter 317A, and
otherwise must comply with Minnesota Statutes, chapter 317A,
except to the extent Minnesota Statutes, chapter 317A, is
inconsistent with this section.
Subd. 4. [EMPLOYEES.] Persons employed by the nonprofit
corporation are not public employees and must not participate in
retirement, deferred compensation, insurance, or other plans
that apply to public employees generally.
Subd. 5. [CONTRACTING.] The region nine development
commission may enter into management contracts or lease
agreements, or both, with a nonprofit corporation that is
established according to this act.
Subd. 6. [STATUTORY COMPLIANCE.] (a) Minnesota Statutes,
section 16A.695, applies to a management contract or lease
agreement entered into by the region nine development commission
and a nonprofit corporation established according to this act.
(b) The nonprofit corporation must comply with Minnesota
Statutes, section 465.719, subdivisions 9, 10, 11, 12, 13, and
14.
Sec. 27. [ANOKA COUNTY DEBT AUTHORITY.]
Subdivision 1. [AUTHORITY TO INCUR DEBT.] (a) To finance
the cost of designing, constructing, and acquiring public safety
communication system infrastructure and equipment, the governing
body of Anoka county may issue:
(1) capital improvement bonds under the provisions of
Minnesota Statutes, section 373.40, as if the infrastructure and
equipment qualified as a "capital improvement" within the
meaning of Minnesota Statutes, section 373.40, subdivision 1,
paragraph (b); and
(2) capital notes under the provisions of Minnesota
Statutes, section 373.01, subdivision 3, as if the equipment
qualified as "capital equipment" within the meaning of section
373.01, subdivision 3.
(b) The original principal amount of the bonds and the
capital notes issued under this section may not exceed
$12,500,000.
Subd. 2. [TREATMENT OF LEVY.] Notwithstanding Minnesota
Statutes, sections 275.065, subdivision 3, and 276.04, the
county may report the tax attributable to any levy to pay
principal and interest on bonds or notes issued under this
section as a separate line item on the proposed property tax
notice and the property tax statement.
Subd. 3. [EXPIRATION.] This section expires ten years
after the first year in which the county issues a note or bond
under this section. The county may not issue a bond or note
under this section with a maturity or payment date after the
expiration date of this section. No property tax may be levied
under this section for taxes payable in a calendar year after
the calendar year in which this section expires. Expiration of
this section does not affect the obligation to pay or the
authority to collect taxes levied under this section before its
expiration.
[EFFECTIVE DATE.] This section is effective without local
approval the day following its final enactment.
Sec. 28. [LEGISLATIVE PURPOSE AND POLICY.]
The legislature determines that in the area in and around
the city of Alexandria, there are economic development issues
that can be more effectively dealt with by a single entity on a
coordinated basis rather than by multiple existing government
units. The legislature, therefore, declares that for a
coordinated approach to economic development in the area, it is
necessary to establish for the area an economic development
authority with the responsibility of exercising the powers of an
economic development authority in order to advance the economic
vitality of the area.
Sec. 29. [DEFINITIONS.]
Subdivision 1. [DEFINITIONS.] For the purposes of sections
28 to 35, the terms defined in this section have the following
meanings.
Subd. 2. [LAKES AREA ECONOMIC DEVELOPMENT
AUTHORITY.] "Lakes area economic development authority" or
"authority" means the lakes area economic authority established
as provided in section 30.
Subd. 3. [PERSON.] "Person" means an individual,
partnership, corporation, cooperative, or other organization or
entity, public or private.
Subd. 4. [MEMBER.] "Member" means the city of Alexandria
or the townships of Alexandria, Carlos, or La Grand, or any
other municipality, the geographic area of which is included
within the jurisdiction of the authority.
Subd. 5. [MUNICIPALITY.] "Municipality" means a statutory
or home rule charter city or town located in Douglas county.
Sec. 30. [LAKES AREA ECONOMIC DEVELOPMENT AUTHORITY.]
Subdivision 1. [ESTABLISHMENT.] A lakes area economic
development authority with jurisdiction over the geographic area
of its members is established as a public corporation and
political subdivision of the state with perpetual succession and
all the rights, powers, privileges, immunities, and duties that
may be validly granted to or imposed upon a municipal
corporation, as provided in sections 28 to 35.
Subd. 2. [BOARD OF COMMISSIONERS.] The authority is
governed by a board of commissioners to be selected as follows:
the mayor of each member city, and the chair of the town board
of each member town shall appoint one commissioner, subject to
the approval of the respective city council or town board. The
terms of the commissioner are as provided in subdivision 5.
Subd. 3. [TIME LIMITS FOR SELECTION, ALTERNATIVE
APPOINTMENT BY DISTRICT JUDGE.] The initial appointment of
commissioners must be made no later than 60 days after sections
28 to 35 become effective. Subsequent appointments must be made
within 60 days before the expiration of a term in the same
manner as the predecessor was selected. A vacancy on the board
must be filled within 60 days after it occurs. If a selection
is not made within the prescribed time, the chief judge of the
seventh judicial district of the Minnesota district court on
application by an interested person shall appoint an eligible
person to the board.
Subd. 4. [VACANCIES.] If a vacancy occurs in the office of
commissioner, the vacancy must be filled for the unexpired term
in a like manner as provided for selection of the commissioner
who vacated the office. The office must be considered vacant
under the conditions specified in Minnesota Statutes, section
351.02.
Subd. 5. [TERMS OF OFFICE.] The terms of the initial
appointees to the board of commissioners are for two, three,
four, five, and six years and must be established by lot among
the initial five commissioners. The mayor or town board chair
of any new member added under section 33 shall designate the
term, not to exceed six years, of the first commissioner
selected to represent the member. Succeeding terms of all
commissioners are six years, except that each commissioner
serves until a successor has been duly selected and qualified.
Subd. 6. [REMOVAL.] A commissioner may be removed by the
unanimous vote of the appointing governing body, with or without
cause.
Subd. 7. [QUALIFICATIONS.] A commissioner may, but need
not, be a resident of the territory of the member appointing
that commissioner.
Subd. 8. [COMPENSATION.] A commissioner must be paid a per
diem compensation for attending a regular or special meeting in
an amount determined by the board. A commissioner must be
reimbursed for all reasonable expenses incurred in the
performance of the commissioner's duties as determined by the
board.
Sec. 31. [POWERS; APPLICATION OF EDA LAW.]
Subdivision 1. [USE OF EDA POWERS.] Except as otherwise
provided in sections 28 to 35, the authority may exercise any of
the powers of an economic development authority (EDA) provided
by Minnesota Statutes, sections 469.090 to 469.1082, and for
this purpose the term "city" means a member. Minnesota
Statutes, sections 469.096 to 469.101, 469.103 to 469.106, and
469.108 to 469.1081 apply to the authority, except that the
authority's fiscal year is the calendar year.
Subd. 2. [LAW THAT IS NOT APPLICABLE.] The provisions in:
(1) Minnesota Statutes, section 469.091, subdivision 1,
expressly relating to:
(i) the adoption of an enabling resolution;
(ii) Minnesota Statutes, section 469.092; or
(iii) housing and redevelopment authorities; and
(2) Minnesota Statutes, sections 469.093, 469.095, 469.102,
and 469.107;
do not apply to the authority.
Sec. 32. [MEMBERS MUST LEVY TAXES FOR AUTHORITY.]
A member shall, at the request of the authority, levy a tax
in any year for the benefit of the authority. The tax is, for
each member, a pro rata portion of the total amount of tax
requested by the authority based on the taxable market value
within a member's jurisdiction, but in no event may the tax in
any year exceed 0.01813 percent of taxable market value. For
purposes of this section, "taxable market value" has the meaning
as given in Minnesota Statutes, section 273.032.
The treasurer of each member city or town shall, within 15
days after receiving the property tax settlements from the
county treasurer, pay to the treasurer of the authority the
amount collected for this purpose. The money must be used by
the authority for the purposes provided by sections 28 to 35.
Sec. 33. [ADDITION AND WITHDRAWAL OF MEMBERS.]
Subdivision 1. [ADDITIONS.] A municipality upon a
resolution adopted by a four-fifths vote of all of its governing
body may petition the authority to be included within the
jurisdiction of the authority and, if approved by the authority,
the geographic area of the municipality must be included within
the jurisdiction of the authority and subject to the
jurisdiction of the authority under sections 28 to 35.
Subd. 2. [WITHDRAWALS.] A municipality may withdraw from
the authority by resolution of its governing body. The
municipality must notify the board of commissioners of the
authority of the withdrawal by providing a copy of the
resolution at least two years in advance of the proposed
withdrawal. Unless the authority and the withdrawing member
agree otherwise by action of their governing bodies, the taxable
property of the withdrawing member is subject to the property
tax levy under section 32 for two taxes payable years following
the notification of the withdrawal and the withdrawing member
retains any rights, obligations, and liabilities obtained or
incurred during its participation.
Sec. 34. [CONTRACTS WITH NONPROFIT CORPORATIONS.]
The authority may enter into contracts with one or more
nonprofit corporations to make, from funds of and under
guidelines set by the authority, loans or grants for projects
the authority may undertake under sections 28 to 35. Minnesota
Statutes, section 465.719, does not apply so long as the
nonprofit corporation is not described in Minnesota Statutes,
section 465.719, subdivision 1, paragraph (b)(i) or (b)(ii).
Sec. 35. [RELATION TO EXISTING LAWS.]
Sections 28 to 35 must be given full effect notwithstanding
any law or charter that is inconsistent with them.
Sec. 36. [ST. PAUL LIBRARY AGENCY.]
(a) Notwithstanding any law or charter to the contrary, the
city council of the city of St. Paul may, by ordinance,
establish an independent library agency, a public body corporate
and politic, which is a governmental subdivision of the state of
Minnesota. The library agency is responsible for all libraries
and library operations within the city of St. Paul. The actions
of the city council as library board are subject to mayoral veto
and override of that veto in the same manner as other actions of
the city council.
(b) All employees of the library agency are employees of
the city of St. Paul.
(c) The city may transfer any real or personal property
used or to be used for library purposes to the library agency.
(d) The library board shall designate among its members a
chair, secretary, and treasurer, and may adopt bylaws.
(e) The director of the library agency shall be appointed
by the mayor.
[EFFECTIVE DATE.] This section is effective the day after
the governing body of St. Paul and its chief clerical officer
timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
Sec. 37. [ST. PAUL LIBRARY AGENCY TAX LEVIES; FISCAL
MATTERS.]
Subdivision 1. [BUDGET TO CITY.] Annually, at a time fixed
by charter, resolution, or ordinance of the city, the library
board shall send its budget to the city council. The budget
must include a detailed written estimate of the amount of money
that the library board expects to need from the city to operate
the library agency during the next fiscal year in excess of any
expected receipts from other sources.
Subd. 2. [FISCAL YEAR.] The fiscal year of the library
agency must be the same as the fiscal year of the city.
Subd. 3. [CITY LEVY.] The city shall, at the request of
the library board, levy a tax in any year for the benefit of the
library agency. The amount collected pursuant to the levy must
be held by the city treasurer exclusively for operations of the
library agency.
[EFFECTIVE DATE.] This section is effective the day after
the governing body of St. Paul and its chief clerical officer
timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
Sec. 38. [ST. PAUL LIBRARY AGENCY GENERAL OBLIGATION
BONDS.]
Subdivision 1. [POWER; PROCEDURE.] The library agency may
issue bonds in the principal amount authorized by the city
council. The bonds may be issued in anticipation of income from
any source. The bonds may be issued:
(1) to secure funds needed by the library agency to pay for
acquired real or personal property; or
(2) for capital improvements to property owned or used by
the library.
The bonds must be in the amount and form and bear interest
at the rate set by the city council. Except as otherwise
provided in this section, the issuance of the bonds is governed
by Minnesota Statutes, chapter 475. The library agency when
issuing the bonds is a municipality under Minnesota Statutes,
chapter 475. Notwithstanding any city charter provision or any
general or special law to the contrary, the bonds may be issued
and sold without submission of the question to the electors of
the city, provided that the ordinance of the city council
authorizing issuance of the bonds by the library agency is
subject to provisions in the city charter pertaining to the
procedure for referendum on ordinances enacted by the city
council.
Subd. 2. [OUTSIDE DEBT LIMIT.] Bonds issued by the library
agency must not be included in the net debt of the city of St.
Paul. Money received under this section must not be included in
a per capita limit on taxing or spending in the city charter.
The library agency is also exempt from the limit.
Subd. 3. [PLEDGE.] The bonds must be secured by the pledge
of the full faith, credit, and resources of the city of St.
Paul. The city council must first decide whether the issuance
of the bonds by the library agency is proper in each case and,
if so, the amount of bonds to issue. The city council shall
give specific consent in an ordinance to the pledge of the
city's full faith, credit, and resources. The city shall pay
the principal amount of the bonds and the interest on them from
taxes levied under this section to make the payment or from
library board income from any source.
[EFFECTIVE DATE.] This section is effective the day after
the governing body of St. Paul and its chief clerical officer
timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
Sec. 39. [ST. LOUIS COUNTY; FORFEITED LAND; PROCEEDS.]
Subdivision 1. [AUTHORITY; PURPOSES.] Notwithstanding the
provisions of Minnesota Statutes, section 282.08, clause (4),
the county board of St. Louis county, out of the proceeds from
the sale or rental of any parcel of forfeited land, or from the
sale of any products from that land after making the payments
directed by Minnesota Statutes, section 282.08, clauses (1),
(2), and (3), may annually by resolution apportion the balance
including undistributed receipts remaining in the fund on the
effective date of this section as provided in subdivisions 2 to
5.
Subd. 2. [TIMBER DEVELOPMENT; MEMORIAL FORESTS.] No more
than 30 percent of the balance is to be used for timber
development on tax-forfeited land and dedicated memorial forests
to be expended under the supervision of the county board on
projects approved by the commissioner of natural resources.
Subd. 3. [OTHER PURPOSES.] No more than 20 percent of the
balance is to be used for the following purposes:
(1) acquisition and maintenance of county parks or
recreational areas as defined in Minnesota Statutes, sections
398.31 to 398.36;
(2) land use planning programs being carried on in the
county including the enforcement of any controls developed in
said program; and
(3) no more than $4 per capita of the county's population
on the promotion of tourist, agricultural, and economic
development.
Subd. 4. [USE FOR STATE OR FEDERAL PROGRAMS.] Any funds
set aside by the county board pursuant to subdivisions 2 and 3
may be used by the county board as the county's share in any
state or federal aid program relating to the purposes stated in
subdivisions 2 and 3.
Subd. 5. [APPORTIONMENT.] Any balance must be apportioned
as follows: county, 40 percent; town or city, 20 percent; and
school district, 40 percent. But in unorganized territories,
the portion that should have accrued to the township must be
administered by the county board of commissioners.
[EFFECTIVE DATE; LOCAL APPROVAL.] This section is effective
the day after the governing body of St. Louis county and its
chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 40. [EFFECTIVE DATE; LOCAL APPROVAL.]
Sections 28 to 35 are only effective as to all affected
governing bodies on the day after the last of the governing
bodies of the city of Alexandria and the towns of Alexandria,
Carlos, and La Grand in Douglas county and the chief clerical
officer of each of them timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
The rest of this act, unless otherwise specifically stated,
is effective the day following its final enactment.
Presented to the governor May 18, 2002
Signed by the governor May 22, 2002, 1:20 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes