1.1 	A bill for an act
1.2 	relating to counties; permitting counties to issue
1.3 	capital improvement bonds for rehabilitation or
1.4 	demolition of tax-forfeited commercial property;
1.5 	amending Minnesota Statutes 2004, section 373.40,
1.6 	subdivision 1, by adding a subdivision.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 373.40,
1.9 	subdivision 1, is amended to read:
1.10 		Subdivision 1.Definitions.  For purposes of this
1.11 	section, the following terms have the meanings given.
1.12 	(a) "Bonds" means an obligation as defined under section
1.13 	475.51.
1.14 	(b) "Capital improvement" means acquisition or betterment
1.15 	of public lands, development rights in the form of conservation
1.16 	easements under chapter 84C, buildings, or other improvements
1.17 	within the county for the purpose of a county courthouse,
1.18 	administrative building, health or social service facility,
1.19 	correctional facility, jail, law enforcement center, hospital,
1.20 	morgue, library, park, qualified indoor ice arena, and roads and
1.21 	bridges. Capital improvement also means rehabilitation or
1.22 	demolition of tax-forfeited commercial buildings, as provided in
1.23 	subdivision 8.An improvement must have an expected useful life
1.24 	of five years or more to qualify.  "Capital improvement" does
1.25 	not include light rail transit or any activity related to it or
1.26 	a recreation or sports facility building (such as, but not
2.1 	limited to, a gymnasium, ice arena, racquet sports facility,
2.2 	swimming pool, exercise room or health spa), unless the building
2.3 	is part of an outdoor park facility and is incidental to the
2.4 	primary purpose of outdoor recreation.
2.5 	(c) "Commissioner" means the commissioner of employment and
2.6 	economic development.
2.7 	(d) "Metropolitan county" means a county located in the
2.8 	seven-county metropolitan area as defined in section 473.121 or
2.9 	a county with a population of 90,000 or more.
2.10 	(e) "Population" means the population established by the
2.11 	most recent of the following (determined as of the date the
2.12 	resolution authorizing the bonds was adopted):
2.13 	(1) the federal decennial census,
2.14 	(2) a special census conducted under contract by the United
2.15 	States Bureau of the Census, or
2.16 	(3) a population estimate made either by the Metropolitan
2.17 	Council or by the state demographer under section 4A.02.
2.18 	(f) "Qualified indoor ice arena" means a facility that
2.19 	meets the requirements of section 373.43.
2.20 	(g) "Tax capacity" means total taxable market value, but
2.21 	does not include captured market value.

2.22 	Sec. 2. Minnesota Statutes 2004, section 373.40, is
2.23 	amended by adding a subdivision to read:
2.24 		Subd. 8.Financing tax-forfeited commercial property
2.25 	rehabilitation or demolition. A county with an approved capital
2.26 	improvement plan under this section may issue bonds to establish
2.27 	a fund to finance rehabilitation or demolition of tax-forfeited
2.28 	commercial buildings within the county.  The county may make
2.29 	low-interest loans from the fund to cities and towns to pay for
2.30 	rehabilitation or demolition of the tax-forfeited commercial
2.31 	buildings located within their jurisdiction.  If the city or
2.32 	town in which the building is located does not rehabilitate or
2.33 	demolish it, the county may demolish it in order to eliminate
2.34 	hazards and possible liabilities related to the building.