1.1 	A bill for an act
1.2 	relating to economic development; modifying Minnesota
1.3 	redevelopment accounts; amending Minnesota Statutes
1.4 	2004, sections 116J.571; 116J.572; 116J.574; 116J.575;
1.5 	repealing Minnesota Statutes 2004, section 116J.573.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 116J.571, is
1.8 	amended to read:
1.9 	116J.571 CREATION OF ACCOUNTS.
1.10 	Two greater Minnesota redevelopment accounts are created,
1.11 	one in the general fund and one in the bond proceeds fund.
1.12 	Money in the accounts may be used to make grants as provided in
1.13 	section 116J.575.  Money in the bond proceeds fund may only be
1.14 	used for eligible costs for publicly owned property.  Money in
1.15 	the general fund may be used and to pay for the commissioner's
1.16 	costs in reviewing the applications and making grants.

1.17 	Sec. 2. Minnesota Statutes 2004, section 116J.572, is
1.18 	amended to read:
1.19 	116J.572 DEFINITIONS.
1.20 		Subdivision 1.Scope of application. For purposes of
1.21 	sections 116J.571 to 116J.575, the terms in this section have
1.22 	the meanings given.
1.23 		Subd. 2.Development authority. "Development authority"
1.24 	includes a statutory or home rule charter city, county, housing
1.25 	and redevelopment authority, economic development authority, or
2.1 	port authority located outside .
2.2 		Subd. 2a.Metropolitan area. "Metropolitan area" means 
2.3 	the seven-county metropolitan area, as defined in section
2.4 	473.121, subdivision 2.
2.5 		Subd. 2b.Municipality. "Municipality" means the
2.6 	statutory or home rule charter city, town, or, in the case of
2.7 	unorganized territory, county in which the redevelopment is
2.8 	located.
2.9 		Subd. 3.eligible redevelopment costs or costs.
 2.10 	" Eligible Redevelopment costs" or "costs" means the costs of
2.11 	land acquisition, stabilizing unstable soils when infill is
2.12 	required, demolition, infrastructure improvements, and ponding
2.13 	or other environmental infrastructure; building construction,
2.14 	design and engineering;and costs necessary for adaptive reuse
2.15 	of buildings, including remedial activities. Eligible costs do
2.16 	not include project administration and legal fees.
2.17 		Subd. 4.Redevelopment. "Redevelopment" means recycling
2.18 	obsolete, abandoned, or underutilized properties for new
2.19 	industrial, commercial, or residential uses.

2.20 	Sec. 3. Minnesota Statutes 2004, section 116J.574, is
2.21 	amended to read:
2.22 	116J.574 GRANT APPLICATIONS.
2.23 		Subdivision 1.Application required. To obtain a
2.24 	redevelopment grant, a development authority shall apply to the
2.25 	commissioner. The governing body of the municipality must
2.26 	approve the application by resolution.
2.27 		Subd. 2.Required content. The commissioner shall
2.28 	prescribe and provide the application form.  The application
2.29 	must include at least the following information:
2.30 	(1) identification of the site;
2.31 	(2) a redevelopment plan for the site;
2.32 	(3) a detailed budget estimate, including along with 
2.33 	necessary supporting evidence, of the total redevelopment costs
2.34 	for the site including the total eligible redevelopment costs;
2.35 	(3) a complete (4) an assessment of the development
2.36 	potential or likely use of the site after completion of the 
3.1 	redevelopment plan, including any specific commitments from
3.2 	third parties to construct improvements on the site;
3.3 	(4) a complete financing plan, including (5) the manner in
3.4 	which the development authority uses innovative financial
3.5 	partnerships between government, private for-profit, and
3.6 	nonprofit sectors municipality will meet the local match
3.7 	requirement; and
3.8 	(5) (6) any additional information or material that the
3.9 	commissioner prescribes.

3.10 	Sec. 4. Minnesota Statutes 2004, section 116J.575, is
3.11 	amended to read:
3.12 	116J.575 GRANTS.
3.13 		Subdivision 1.Commissioner discretion. The commissioner
3.14 	may make a grant for up to 50 percent of the eligible costs of a
3.15 	project. The commissioner shall, in each grant cycle, make
3.16 	grants so that 50 percent of the dollar value of grants for that
3.17 	cycle are for projects located outside of the seven-county
3.18 	metropolitan area as defined in section 473.121, subdivision 2,
3.19 	and 50 percent are for projects located within the seven-county
3.20 	metropolitan area.  This allocation of grant funds does not
3.21 	apply for any grant cycle in which the applications received by
3.22 	the application deadline are insufficient to permit the equal
3.23 	division of grants between metropolitan and nonmetropolitan
3.24 	projects.The determination of whether to make a grant for a
3.25 	site is within the discretion of the commissioner, subject to
3.26 	this section and sections 116J.571 to 116J.574 and available
3.27 	unencumbered money in the greater Minnesota redevelopment
3.28 	account.  The commissioner's decisions and application of the
3.29 	priorities under this section are not subject to judicial
3.30 	review, except for abuse of discretion.
3.31 		Subd. 1a.Priorities. (a) If applications for grants
3.32 	exceed the available appropriations, grants shall be made for
3.33 	sites that, in the commissioner's judgment, provide the highest
3.34 	return in public benefits for the public costs incurred.
3.35 	"Public benefits" include job creation, environmental benefits
3.36 	to the state and region, efficient use of public transportation,
4.1 	efficient use of existing infrastructure, provision of
4.2 	affordable housing, multiuse development that constitutes
4.3 	community rebuilding rather than single-use development, crime
4.4 	reduction, blight reduction, community stabilization, and
4.5 	property tax base maintenance or improvement.  In making this
4.6 	judgment, the commissioner shall give priority to redevelopment
4.7 	projects with one or more of the following characteristics:
4.8 	(1) the need for redevelopment in conjunction with
4.9 	contamination remediation needs;
4.10 	(2) the redevelopment project meets current tax increment
4.11 	financing requirements for a redevelopment district and tax
4.12 	increments will contribute to the project;
4.13 	(3) the redevelopment potential within the municipality;
4.14 	(4) proximity to public transit if located in the
4.15 	metropolitan area; and 
4.16 	(5) multijurisdictional projects that take into account the
4.17 	need for affordable housing, transportation, and environmental
4.18 	impact.
4.19 	(b) The factors in paragraph (a) are not listed in a rank
4.20 	order of priority; rather, the commissioner may weigh each
4.21 	factor, depending upon the facts and circumstances, as the
4.22 	commissioner considers appropriate.
4.23 		Subd. 2.Application cycles. In making grants, the
4.24 	commissioner shall establish semiannual application deadlines in
4.25 	which grants will be authorized from all or part of the
4.26 	available money in the account.
4.27 		Subd. 3.Match required. In order to qualify for a grant
4.28 	under sections 116J.571 to 116J.575, the municipality must pay
4.29 	for at least one-half of the redevelopment costs as a local
4.30 	match from any money available to the municipality.

4.31 	Sec. 5. REPEALER.
 4.32 	Minnesota Statutes 2004, section 116J.573, is repealed.