Bill Text: MN HF409 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Medical center development authority established and organization, powers, and duties provided; medical center development districts provided; issuance of revenue obligations, city bonds, and state assistance authorized; funding provided; and money appropriated.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-04 - Committee report, without further rec to amend, re-refer to Capital Investment [HF409 Detail]
Download: Minnesota-2013-HF409-Engrossed.html
1.2relating to economic development; establishing a medical center development
1.3authority and providing for its organization, powers, and duties; providing
1.4for medical center development districts; authorizing the issuance of revenue
1.5obligations by the authority; authorizing city bonds; authorizing state assistance;
1.6appropriating money;proposing coding for new law in Minnesota Statutes,
1.7chapter 469.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [469.40] PURPOSES.
1.10In order to secure Minnesota's status as one of the world's leading global medical
1.11destinations now and in the future, with the city of Rochester as its hub, it is essential to
1.12support state and local investment in the public infrastructure and related development
1.13activities to stimulate significant private investment and development. Market forces are
1.14driving a small number of select medical institutions to emerge worldwide as leaders in:
1.15(1) delivering the highest quality medical care and attracting patients and visitors from
1.16throughout the world; (2) conducting leading research and technology development; and
1.17(3) serving as an educational platform to foster development of clinical practitioners
1.18for the next generation of medical advancement. The city of Rochester is, and intends
1.19to continue to be, one of those leading destination medical centers. Its existing medical
1.20institutions must continue to make strategic capital investments to grow their patient base
1.21and deliver the highest quality care in the world. The city must attract new, medically
1.22related and other businesses as a means of major economic development and job growth
1.23in the state of Minnesota. However, continued success in Minnesota of existing medical
1.24institutions in Rochester is dependent upon the institutions' ability to attract leading
1.25clinicians, and sustain quality access, development, programming, services, and the public
2.1infrastructure necessary to meet the demands of a growing patient, visitor, and resident
2.2base. Investments in public infrastructure and related development activities are needed
2.3in order to support and attract significant private capital investments and the anticipated
2.4growth in patient and visitor traffic to Rochester and the surrounding area.
2.5 Sec. 2. [469.41] DEFINITIONS.
2.6 Subdivision 1. Generally. In sections 469.41 to 469.53, the terms defined in this
2.7section have the meanings given them, unless the context indicates a different meaning.
2.8 Subd. 2. Authority. "Authority" means the Rochester Area Medical Center
2.9Development Authority established in section 469.42.
2.10 Subd. 3. City. "City" means the city of Rochester, Minnesota.
2.11 Subd. 4. County. "County" means Olmsted County, Minnesota.
2.12 Subd. 5. Development; developing. "Development" includes redevelopment,
2.13and "developing" includes redeveloping.
2.14 Subd. 6. Development plan. "Development plan" means the long-range plan for the
2.15development of the medical center development district or districts.
2.16 Subd. 7. Medical business entity. "Medical business entity" means a medical
2.17business entity with its principal place of business in the city of Rochester as of the date of
2.18final enactment of this act that employs more than 30,000 persons in the state as of that date.
2.19 Subd. 8. Medical center development district. "Medical center development
2.20district" means a contiguous or noncontiguous geographic area in the city created to
2.21facilitate one or more projects.
2.22 Subd. 9. Medical center economic development corporation. "Medical center
2.23economic development corporation" means a nonprofit corporation organized and existing
2.24under chapter 317A by any medical business entity, in partnership with representatives of
2.25the city experienced in matters of planning, supporting, and administering development
2.26activities, to assist the authority and the city to secure Minnesota's status as one of the
2.27world's leading global medical destinations with the city as its hub.
2.28 Subd. 10. Project. "Project" means the following works or undertakings for the
2.29purpose of development of a medical center development district:
2.30(1) to acquire real property and other assets associated with the real property;
2.31(2) to demolish, repair, or rehabilitate buildings;
2.32(3) to remediate land and buildings as required to prepare the property for acquisition
2.33or development;
2.34(4) to install, construct, or reconstruct elements of community infrastructure
2.35required to support the overall development of the medical center development district,
3.1including, without limitation, streets, roadways, utilities systems and related facilities,
3.2utility relocations and replacements, network and communication systems, streetscape
3.3improvements, drainage systems, sewer and water systems, subgrade structures and
3.4associated improvements, landscaping, façade construction and restoration, wayfinding
3.5and signage, and other components of community infrastructure;
3.6(5) to acquire, construct or reconstruct, and equip parking facilities and other
3.7facilities to encourage intermodal transportation and public transit;
3.8(6) to install, construct or reconstruct, and equip core elements of community
3.9infrastructure, to promote and encourage economic development and to anchor the medical
3.10center developmental district in accordance with the development plan, including, without
3.11limitation, parks, cultural facilities, community and recreational facilities, facilities to
3.12promote tourism and hospitality, conferencing and conventions, broadcast and related
3.13multimedia infrastructure, destination retail, urban residential housing, and instructional,
3.14educational, and other facilities with the primary purpose of attracting and fostering urban
3.15economic development within the medical center development district;
3.16(7) to make related site improvements, including, without limitation, excavation,
3.17earth retention, soil stabilization and correction, site improvements to support the medical
3.18center development district;
3.19(8) to prepare land for private development and to sell or lease land; and
3.20(9) to build and equip suitable structures on land owned by the authority for sale or
3.21lease for private development, except structures for sale or lease to a medical business
3.22entity.
3.23 Subd. 11. Project cost. (a) "Project cost" with respect to a medical center
3.24development district project means all costs of the project activities described in
3.25subdivision 10, and includes, without limitation:
3.26(1) costs of planning, engineering, legal, marketing, development, insurance,
3.27finance, and other related professional services associated with a project;
3.28(2) costs providing relocation benefits to the occupants of acquired properties;
3.29(3) costs associated with the operational start-up and commissioning of a project; and
3.30(4) the allocated administrative expenses of the authority for the project not to
3.31exceed ...... in any year.
3.32(b) Expenditures for project costs constitute either (1) public improvements to
3.33buildings or lands owned by the state or local government that serve a public purpose and
3.34do not principally benefit a single business or defined group of businesses at the time the
3.35improvements are made or (2) assistance generally available to all businesses or general
4.1classes of similar businesses within a medical center development district, subject to
4.2approval by the authority.
4.3 Sec. 3. [469.42] AUTHORITY ESTABLISHED.
4.4 Subdivision 1. Rochester Area Medical Center Development Authority
4.5established; membership. (a) The Rochester Area Medical Center Development
4.6Authority is established. The authority's governing board consists of eight voting members
4.7and two nonvoting members, as follows:
4.8 (1) the mayor of the city, or the mayor's designee, subject to approval by the city
4.9council;
4.10 (2) the city council president, or the city council president's designee, subject
4.11to approval by the city council;
4.12 (3) a representative of the medical business entity defined in section 469.41,
4.13subdivision 7, appointed by the mayor of the city, subject to approval of the city council;
4.14 (4) the chair of the county board, or the chair's designee, subject to approval by the
4.15county board;
4.16 (5) a representative of the medical business entity defined in section 469.41,
4.17subdivision 7, appointed by the governor;
4.18 (6) a resident of the city and a resident from outside of Olmsted County, appointed
4.19by the governor;
4.20 (7) a representative from a statewide labor organization representing the building
4.21trades, appointed by the governor;
4.22 (8) one member of the house of representatives who represents at least a portion
4.23of the city of Rochester to serve as a nonvoting member, appointed by the speaker of
4.24the house of representatives; and
4.25 (9) one member of the senate who represents at least a portion of the city of
4.26Rochester to serve as a nonvoting member, appointed by the Subcommittee on Committees
4.27of the senate Committee on Rules and Administration.
4.28 (b) Appointing authorities must make their appointments as soon as practicable after
4.29the effective date of this section.
4.30 Subd. 2. Terms. (a) The term of a member first appointed after the effective date
4.31of this section under subdivision 1, paragraph (a), clauses (1), (2), and (4), serves for a
4.32term coterminous with the term of office.
4.33 (b) The term of a member first appointed after the effective date of this section under
4.34subdivision 1, paragraph (a), clauses (3) and (6), serves from the date of appointment until
5.1the first Tuesday after the first Monday in January 2017. Thereafter, members serve
5.2six-year terms.
5.3 (c) The term of a member first appointed after the effective date of this section under
5.4subdivision 1, paragraph (a), clauses (5) and (7), serves from the date of appointment until
5.5the first Tuesday after the first Monday in January 2020. Thereafter, members serve
5.6six-year terms.
5.7 (d) The nonvoting members serve for two years.
5.8 Subd. 3. Vacancies. A vacancy occurs:
5.9 (1) as provided in section 351.02;
5.10 (2) for a member appointed under subdivision 1, paragraph (a), clause (1) or (2),
5.11when the mayor or city council president, respectively, ceases to hold office or ceases
5.12to reside in the city, and under subdivision 1, paragraph (a), clause (4), when the chair
5.13of the county board ceases to hold office;
5.14 (3) for a member appointed under subdivision 1, paragraph (a), clause (6), when
5.15the member ceases to reside in the city;
5.16 (4) for a legislative appointee, if the member ceases to serve in the state legislature; or
5.17 (5) upon a member's removal under subdivision 4.
5.18A vacancy on the authority board must be filled by the appointing authority for the
5.19balance of the term subject to the same approval required for an appointment for a full
5.20term as provided in subdivision 1.
5.21 Subd. 4. Removal. A member may be removed by the board for inefficiency,
5.22neglect of duty, or misconduct in office. A member may be removed only after a hearing
5.23of the board. A copy of the charges must be given to the board member at least ten days
5.24before the hearing. The board member must be given an opportunity to be heard in person
5.25or by counsel at the hearing. When written charges have been submitted against a board
5.26member, the board may temporarily suspend the member. If the board finds that those
5.27charges have not been substantiated, the board member shall be immediately reinstated. If
5.28a board member is removed, a record of the proceedings, together with the charges and
5.29findings, shall be filed with the office of the appointing authority.
5.30 Subd. 5. Pay. Members must be compensated as provided in section 15.0575,
5.31subdivision 3, for each regular or special authority board meeting attended. In addition,
5.32the board members may be reimbursed for actual expenses incurred in doing official
5.33business of the authority. All money paid for compensation or reimbursement must be
5.34paid out of the authority's budget.
5.35 Subd. 6. Conflicts of interest. Except for the members appointed under subdivision
5.361, paragraph (a), clauses (3) and (5), to represent the medical business entity, within one
6.1year prior to or at any time during a member's term of service on the authority's governing
6.2board, a member must not be employed by, be a member of the board of directors of, or
6.3otherwise be a representative of the medical business entity, as defined in section 469.41,
6.4subdivision 7, or the medical center economic development corporation, as defined in
6.5section 469.41, subdivision 9. No member may serve as a lobbyist, as defined under
6.6section 10A.01, subdivision 21.
6.7 Sec. 4. [469.43] CHARACTERISTICS AND JURISDICTION.
6.8 Subdivision 1. Public body characteristics. The authority is a body politic and
6.9corporate and a political subdivision of the state, with the right to sue and be sued in its
6.10own name. The authority carries out an essential government function of the state when it
6.11exercises its power, but the authority is not immune from liability because of this.
6.12 Subd. 2. Boundaries. The boundary for activities and the use of the powers of the
6.13authority must be within a medical center development district. The authority also has the
6.14power to finance activities outside of a medical center development district, if necessary;
6.15provided, however, that the financing of activities outside of a medical center development
6.16district must be included in the development plan and must be approved by, and subject to
6.17the planning, zoning, sanitary and building laws, ordinances, regulations, and land use
6.18plans applicable to, the city, county, or town in which such activities are undertaken.
6.19 Sec. 5. [469.44] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
6.20 Subdivision 1. Bylaws, rules, seal. The authority may adopt bylaws and rules of
6.21procedure and may adopt an official seal.
6.22 Subd. 2. Officers. The authority shall annually elect a president or chair, and a
6.23vice-president or vice-chair, and a treasurer. A member may not serve as president or
6.24chair and vice-president or vice-chair at the same time. The authority shall appoint a
6.25secretary and assistant treasurer. The secretary and assistant treasurer need not, but may,
6.26be members of the board, including the president or chair or vice-president or vice-chair.
6.27 Subd. 3. Duties and powers. The officers have the usual duties and powers of their
6.28offices. They may be given other duties and powers by the authority.
6.29 Subd. 4. Treasurer's duties. The treasurer:
6.30(1) shall receive and is responsible for authority money;
6.31(2) is responsible for the acts of the assistant treasurer;
6.32(3) shall disburse authority money by check or electronic procedures;
6.33(4) shall keep an account of the source of all receipts, and the nature, purpose, and
6.34authority of all disbursements; and
7.1(5) shall file the authority's detailed financial statement with its secretary at least
7.2once a year at times set by the authority.
7.3 Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of
7.4the treasurer if the treasurer is absent or disabled.
7.5 Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned
7.6for the faithful discharge of official duties. The bond must be approved as to form and
7.7surety by the authority and filed with its secretary. The bond must be for twice the amount
7.8of money likely to be on hand at any one time, as determined at least annually by the
7.9authority, except that the bond must not exceed $300,000.
7.10 Subd. 7. Public money. Authority money is public money.
7.11 Subd. 8. Checks. An authority check must be signed by the treasurer and by one
7.12other officer named by the authority in a resolution. The check must state the name of the
7.13payee and the nature of the claim for which the check is issued.
7.14 Subd. 9. Financial statements; filing with state auditor. The financial statements
7.15of the authority must be prepared, audited, filed, and published or posted in the manner
7.16required for the financial statements of the city. The authority shall employ the state
7.17auditor or a certified public accountant to annually examine and audit its books. The
7.18report of the exam and audit must be filed with the state auditor by June 30 of each year.
7.19The state auditor shall review the report and may accept it or, in the public interest, audit
7.20the books of the authority.
7.21 Sec. 6. [469.45] DEPOSITORIES; DEFAULT; COLLATERAL.
7.22 Subdivision 1. Named; bond. Every two years the authority shall name national
7.23or state banks within the state as depositories. Before acting as a depository, a named
7.24bank shall give the authority a bond approved as to form and surety by the authority.
7.25The bond must be conditioned for the safekeeping and prompt repayment of deposits.
7.26The amount of the bond must be at least equal to the maximum sum expected to be on
7.27deposit at any one time.
7.28 Subd. 2. Default; collateral. When authority funds are deposited by the treasurer
7.29in a bonded depository, the treasurer and the surety on the treasurer's official bond are
7.30exempt from liability for the loss of the deposits because of the failure, bankruptcy, or any
7.31other act or default of the depository. The authority may accept assignments of collateral
7.32from its depository to secure deposits in the same manner as assignments of collateral are
7.33permitted by law to secure deposits of the city.
8.1 Sec. 7. [469.47] TAX LEVIES; CITY OR COUNTY APPROPRIATIONS;
8.2OTHER FISCAL MATTERS.
8.3 Subdivision 1. Obligations. The authority must not levy a tax or special assessment,
8.4pledge the credit of the state or the state's municipal corporations or other subdivisions, or
8.5incur an obligation enforceable on property not owned by the authority.
8.6 Subd. 2. Budget. The authority shall annually send its budget to the city, county,
8.7governor, and legislature.
8.8 Subd. 3. Fiscal year. The fiscal year of the authority may be established by the
8.9authority.
8.10 Subd. 4. City or county appropriations; levy. The city council of the city or the
8.11county board of the county may appropriate money for the use of the authority and may
8.12levy the amount of its appropriation in its general levy. The levy is a special levy within
8.13the meaning of, and as if specifically enumerated in, section 275.70, subdivision 5.
8.14 Subd. 5. Outside budget laws. Money appropriated to the authority by the city
8.15or county under this section is not subject to a budget law that applies to the city or
8.16county, respectively.
8.17 Subd. 6. City or county payment. The city or county treasurer shall pay money
8.18appropriated by a city or county under subdivision 4 when and in the manner directed by
8.19the city council or county board, as applicable.
8.20 Subd. 7. Local government tax base not reduced. Nothing in sections 469.41 to
8.21469.53 reduces the tax base or affects the taxes due and payable to the city, the county, or
8.22Independent School District No. 535, including, without limitation, the city's 0.5 percent
8.23local sales tax.
8.24 Sec. 8. [469.48] DEVELOPMENT PLAN; MEDICAL CENTER
8.25DEVELOPMENT DISTRICTS.
8.26 Subdivision 1. Development plan; adoption by authority; notice; findings. The
8.27authority, in consultation with the medical center economic development corporation,
8.28shall prepare a development plan with the city's involvement. The development plan must
8.29be adopted by the board of the authority only after holding a public hearing. At least 45
8.30days before the hearing, the authority shall file a copy of the proposed development plan
8.31with the city. The city shall make copies of the proposed plan available to the public at
8.32the city offices during normal business hours and as otherwise determined appropriate
8.33by city council or city officials. At least ten days before the hearing, the authority shall
8.34publish notice of the hearing in a daily newspaper of general circulation in the city. The
8.35development plan may not be adopted unless the authority finds by resolution that:
9.1(1) the plan provides an outline for the development of the city as a global destination
9.2medical center, and the plan is sufficiently complete, including the identification of planned
9.3and anticipated projects, to indicate its relationship to definite state and local objectives;
9.4(2) the proposed development affords maximum opportunity, consistent with the
9.5needs of the city, county, and state, for the development of the city by private enterprise as
9.6a global destination medical center;
9.7(3) the proposed development conforms to the general plan for the development
9.8of the city; and
9.9(4) the plan includes:
9.10(i) strategic planning consistent with a global destination medical center in the
9.11core areas of commercial research and technology, learning environment, hospitality
9.12and convention, sports and recreation, livable communities, including mixed-use urban
9.13development and neighborhood residential development, retail/dining/entertainment,
9.14and health and wellness;
9.15(ii) estimates of short- and long-range fiscal and economic impacts;
9.16(iii) a framework to identify and prioritize short- and long-term public investment
9.17and infrastructure development and to facilitate private investment and development;
9.18(iv) land use planning;
9.19(v) transportation and transit planning;
9.20(vi) operational planning required to support the medical center development
9.21district; and
9.22(vii) ongoing market research plans.
9.23 Subd. 2. Development plan; approval by city; finding. After adoption by the
9.24authority under subdivision 1, the authority shall submit the development plan to the city
9.25for approval by the city only in accordance with this subdivision. The city shall approve
9.26the development plan by written resolution upon making the finding that the development
9.27plan is consistent with the adopted comprehensive plan of the city. The city shall consider
9.28the approval of the development plan and make its finding regarding consistency with
9.29the adopted comprehensive plan of the city within 45 days of submission of the adopted
9.30development plan. If the city determines, by written resolution, that the development plan
9.31is not consistent with the adopted comprehensive plan of the city, the resolution shall state
9.32the reasons and supporting facts for each determination, and the city shall transmit the
9.33resolution to the authority within seven days of adoption. A revised development plan
9.34may be submitted by the authority for approval by the city in the manner provided in this
9.35subdivision. The city may incorporate the approved development plan into the city's
9.36comprehensive plan.
10.1 Subd. 3. Modification of development plan. The authority may modify the
10.2development plan at any time. The authority shall update the original development plan
10.3not less than every five years. A modification or update under this subdivision must be
10.4prepared with the city's involvement and adopted by the authority upon the notice and
10.5after the public hearing and findings required for the original adoption of the development
10.6plan and upon approval by the city as provided in subdivision 2.
10.7 Subd. 4. Medical center development districts; creation; notice; findings. As
10.8part of the development plan, the authority may create and define the boundaries of
10.9medical center development districts and subdistricts at any place or places within the
10.10city. Projects may be undertaken within defined medical center development districts
10.11consistent with the development plan.
10.12 Subd. 5. Policy. It is state policy in the public interest to have the authority exercise
10.13the power of eminent domain to acquire property for a public use, as defined in section
10.14117.025, and advance and spend money for the purposes in sections 469.41 to 469.53.
10.15 Sec. 9. [469.49] POWERS AND DUTIES.
10.16 Subdivision 1. Powers generally. The authority has the powers of a city under
10.17chapter 462C and the powers of a redevelopment agency under sections 469.152 to
10.18469.1651, in connection with private development in the city for which the authority
10.19has previously undertaken or concurrently undertakes a project financed in whole or in
10.20part with authority revenue or obligations issued pursuant to section 469.50; provided,
10.21however, the authority shall not enter into any revenue agreement pursuant to section
10.22469.155, subdivision 5, with a medical business entity.
10.23 Subd. 2. Projects; project costs. The authority may, within a medical center
10.24development district, undertake projects and finance project costs. The authority must
10.25find by resolution that the project is consistent with and in furtherance of the approved
10.26development plan. Subject to other applicable law, revenue derived by the authority
10.27from any source may be used by the authority to make loans or grants, or to provide
10.28direct or indirect financial support to state public bodies or to private entities in payment
10.29or reimbursement of project costs; provided, however, projects as defined under section
10.30469.41, subdivision 10, clauses (4), (5), and (6), which will be owned, operated, or
10.31maintained by the city, must be approved by written resolution of the city.
10.32 Subd. 3. Medical center economic development corporation. (a) The authority
10.33shall engage a medical center economic development corporation to advise the authority
10.34on matters related to a project. The provisions of section 465.717 do not apply to any
10.35entity serving as the medical center economic development corporation. The medical
11.1center economic development corporation shall assist the authority in the preparation of
11.2the development plan and shall provide services to assist the authority in implementing,
11.3consistent with the development plan, the goals, objectives, and strategies in the
11.4development plan, including, without limitation:
11.5(1) developing and updating the criteria for evaluating and underwriting
11.6development proposals;
11.7(2) implementing the development plan, including soliciting and evaluating
11.8proposals for development and evaluating and making recommendations to the authority
11.9regarding those proposals;
11.10(3) providing transactional services in connection with approved projects;
11.11(4) developing patient, visitor, and community outreach programs for a medical
11.12center development district;
11.13(5) working with the authority to acquire and facilitate the sale, lease, or other
11.14transactions involving land and real property;
11.15(6) seeking financial support for itself, the authority, and a project;
11.16(7) partnering with other development agencies and organizations and the city and
11.17county in joint efforts to promote economic development and establish a destination
11.18medical center;
11.19(8) supporting and administering the planning and development activities required to
11.20implement the development plan;
11.21(9) preparing and supporting the marketing and promotion of the medical center
11.22development district;
11.23(10) preparing and implementing a program for community and public relations in
11.24support of the medical center development district;
11.25(11) assisting the authority and others in applications for federal grants, tax credits,
11.26and other sources of funding to aid both private and public development; and
11.27(12) making other general advisory recommendations to the authority's governing
11.28board, as requested.
11.29(b) The authority may contract with the medical center economic development
11.30corporation to provide administrative services to the authority. The authority may agree to
11.31provide reasonable compensation to the medical center economic development corporation
11.32for the services described in this section. The authority may pay for such services out of
11.33any revenue sources available to it, including amounts received from the city or the county
11.34under section 469.47 or from payments received from the state under section 469.53.
11.35Nothing in sections 469.40 to 469.53 shall relieve the authority's governing board of its
12.1duties and powers to adopt the development plan or to exercise the judgment or discretion
12.2of the authority to finance projects or otherwise expend public funds.
12.3 Subd. 4. Revenue pooling. The authority may deposit all its money from any
12.4source in one bank account.
12.5 Subd. 5. Acquire property; exemption for taxes. (a) The authority may acquire by
12.6lease, purchase, gift, or devise the needed right, title, and interest in property to create
12.7medical center development districts and undertake projects. The authority may exercise
12.8the power of eminent domain to acquire property for a public use, as defined in section
12.9117.025. It shall pay for the property out of money it receives under sections 469.41 to
12.10469.53. It may hold and dispose of the property subject to the limits and conditions in
12.11sections 469.41 to 469.53. The title to property acquired by condemnation or purchase
12.12must be in fee simple, absolute. The authority may accept an interest in property acquired
12.13in another way subject to any condition of the grantor or donor. The condition must
12.14be consistent with the proper use of the property under sections 469.41 to 469.53. The
12.15authority may sign options to purchase, sell, or lease property.
12.16(b) Property acquired, owned, leased, controlled, used, or occupied by the authority
12.17for any of the purposes of this section is for public governmental and municipal purposes
12.18and is exempt from taxation by the state or its political subdivisions, except to the extent
12.19that the property is subject to the sales and use tax under chapter 297A. The exemption in
12.20this paragraph applies only while the authority holds property for its own purpose, and is
12.21subject to section 272.02, subdivisions 38 and 39. When the property is sold it becomes
12.22subject to taxation.
12.23 Subd. 6. Subject to city requirements. All projects and development plans are
12.24subject to the planning, zoning, sanitary, and building laws, ordinances, regulations,
12.25and land use plans applicable to the city.
12.26 Subd. 7. Sale of property. The authority may sell, convey, and exchange any real or
12.27personal property owned or held by it in any manner and on any terms it wishes. Real
12.28property owned by the authority must not be sold, conveyed, exchanged, or have its title
12.29transferred without approval of two-thirds of the members of the board. All members
12.30must have ten days' written notice of a regular or special meeting at which a vote on sale,
12.31conveyance, exchange, or transfer of real property is to be taken. The notice must contain
12.32a complete description of the affected real property. The resolution authorizing the real
12.33property transaction is not effective unless a quorum is present.
12.34 Subd. 8. Contracts. The authority may make contracts for the purpose of economic
12.35development within the powers given it in sections 469.41 to 469.53. The authority
12.36may contract or arrange with the federal government, or any of its departments, with
13.1persons, public corporations, the state, or any of its political subdivisions, commissions, or
13.2agencies, for separate or joint action, on any matter related to using the authority's powers
13.3or performing its duties. The authority may contract to purchase and sell real and personal
13.4property. An obligation or expense must not be incurred by the authority unless existing
13.5appropriations together with the reasonably expected revenue of the authority from other
13.6sources are sufficient to discharge the obligation or pay the expense when due. The state
13.7and its municipal subdivisions are not liable on the obligations of the authority.
13.8 Subd. 9. Contracts for services. The authority may contract for the services of
13.9consultants, including the medical center economic development corporation, and agents,
13.10public accountants, legal counsel, and other persons needed to assist the authority in
13.11performing its duties and exercising its powers. The authority may contract with the city
13.12or county to provide administrative, clerical, and accounting services to the authority.
13.13Nothing in sections 469.40 to 469.53 relieves the authority's governing board of its duties
13.14and powers to adopt the development plan or to exercise the judgment or discretion of the
13.15authority to finance projects or otherwise expend public funds. Any contract for services
13.16between the authority and the medical center development corporation paid, in whole or
13.17in part, with public money shall give the authority and the state auditor the right to audit
13.18the books and records of the medical center development corporation that are necessary
13.19to certify (1) the nature and extent of the services furnished pursuant to the contract,
13.20and (2) that the payment for services and related disbursements complies with all state
13.21laws, regulations, and the terms of the contract. Any contract for services between the
13.22authority and the medical center development corporation paid, in whole or in part, with
13.23public money shall require the authority to maintain, during the term of the contract,
13.24and for a period of at least ... years thereafter, accurate and complete books and records
13.25directly relating to the contract.
13.26 Subd. 10. Supplies. The authority may purchase the supplies and materials it needs
13.27to carry out sections 469.41 to 469.53.
13.28 Subd. 11. City purchasing. The authority may, by agreement with the city, use the
13.29facilities and services of the city's purchasing and public works departments in connection
13.30with construction work and to purchase equipment, supplies, or materials.
13.31 Subd. 12. City facilities, services. The city may furnish offices, structures and
13.32space, and clerical, engineering, or other services or assistance to the authority.
13.33 Subd. 13. Delegation power. The authority may delegate to one or more of its
13.34agents powers or duties as it deems proper.
13.35 Subd. 14. Government agent. The authority may cooperate with or act as agent
13.36for the federal or state government, a state public body, or an agency or instrumentality
14.1of a government or a public body to carry out sections 469.41 to 469.53 or any other
14.2related federal, state, or local law.
14.3 Subd. 15. Studies, analysis, research. The authority may study and analyze
14.4development needs in a medical center development district and ways to meet the needs.
14.5The authority may study the desirable patterns for land use and community growth and
14.6other factors affecting local development in a medical center development district and
14.7make the result of the studies available to the public and to potential developers. The
14.8authority may engage in research and disseminate information on development in its
14.9medical center development districts.
14.10 Subd. 16. Acceptance of public land. The authority may accept conveyances of
14.11land from all other public agencies, commissions, or other units of government, if the land
14.12can be properly used by the authority in a medical center development district, to carry
14.13out the purposes of sections 469.41 to 469.53. The city council of the city may transfer
14.14or cause to be transferred to the authority any property owned or controlled by the city
14.15and located within the jurisdiction of the authority. The transfer must be approved by
14.16majority vote of the city council and may be with or without consideration. The city may
14.17also put the property in the possession or control of the authority by a lease or other
14.18agreement for a limited period or in fee.
14.19 Subd. 17. Loans in anticipation of bonds. After authorizing bonds under section
14.20469.50, the authority may borrow to provide money immediately required for the bond
14.21purposes. The loans may not exceed the amount of the bonds. The authority shall by
14.22resolution decide the terms of the loans. The loans must be evidenced by negotiable
14.23notes due in not more than 12 months from the date of the loan payable to the order of
14.24the lender, to be repaid with interest from the proceeds of the bonds when the bonds are
14.25issued and delivered to the bond purchasers. The loan must not be obtained from any
14.26board member of the authority or from any corporation, association, or other institution of
14.27which an authority board member is a stockholder or officer.
14.28 Subd. 18. Report. By January 15 of each odd-numbered year, the authority shall
14.29report to the chairs and ranking minority members of the legislative committees with
14.30jurisdiction over local and state government operations, economic development, and
14.31capital investment, and to the commissioners of management and budget and employment
14.32and economic development, the city, and the county. The authority shall also submit the
14.33report as provided in section 3.195. The report must include:
14.34(1) the adopted development plan and any proposed changes to the development plan;
14.35(2) progress of projects identified in the development plan;
15.1(3) actual costs and financing sources of projects completed in the previous two
15.2years by the authority, the city, the county, and the medical business entity;
15.3(4) estimated costs and financing sources for projects to be begun in the next two
15.4years by the authority, the city, the county, and the medical business entity; and
15.5(5) debt service schedules for all outstanding obligations of the authority.
15.6 Subd. 19. No tax increment financing powers. The authority is not an authority as
15.7defined in section 469.174, subdivision 2.
15.8 Sec. 10. [469.50] REVENUE OBLIGATIONS; PLEDGE; COVENANTS.
15.9 Subdivision 1. Powers. The authority may decide by resolution to issue its revenue
15.10bonds, notes, or other obligations either at one time or in series from time to time. The
15.11revenue bonds may be issued to provide money to pay project costs. The issued bonds
15.12may include the amount the authority considers necessary to establish an initial reserve to
15.13pay principal of and interest on the bonds, including capitalized interest, and to pay the
15.14costs of issuance. The resolution shall state how the bonds are to be executed.
15.15 Subd. 2. Form. The bonds of each series issued by the authority under this section
15.16must bear interest at the rate or rates, mature at times not later than 30 years from the date
15.17of issuance, and be fully registered bonds in the form determined by the authority. All
15.18bonds issued under this section must be negotiable instruments.
15.19 Subd. 3. Sale. The sale of revenue bonds issued by the authority may be at public or
15.20private sale. The bonds may be sold in the manner and for the amount that the authority
15.21determines to be in the best interest of the authority. The bonds may be made callable upon
15.22terms as determined by the authority and may be refunded as provided in section 475.67.
15.23 Subd. 4. Agreements. The authority may by resolution make an agreement or
15.24covenant with the bondholders or their trustee if it determines that the agreement or
15.25covenant is needed or desirable to carry out the powers given to the authority under this
15.26section and to ensure that the revenue bonds are marketable and promptly paid.
15.27 Subd. 5. Revenue pledge. (a) In issuing bonds under this section, the authority may
15.28secure payment of the principal and interest on the bonds by:
15.29(1) a pledge of and lien on authority revenue. The revenue must come from the
15.30facility to be acquired, constructed, or improved with the bond proceeds or from other
15.31facilities named in the bond-authorizing resolutions. The authority also may secure the
15.32payment with its promise to impose, maintain, and collect enough rentals, rates, and
15.33charges, for the use and occupancy of the facilities and for services furnished in connection
15.34with the use and occupancy, to pay its current expenses to operate and maintain the named
15.35facilities, and to produce and deposit sufficient net revenue in a special fund to meet the
16.1interest and principal requirements of the bonds, and to collect and keep any more money
16.2required by the resolutions. The authority shall decide what constitutes "current" expense
16.3under this subdivision based on what is normal and reasonable under generally accepted
16.4accounting principles. Revenues pledged by the authority must not be used or pledged for
16.5any other authority purpose unless the other use or pledge is specifically authorized in the
16.6bond-authorizing resolutions; or
16.7(2) the payments to be made by the state to the authority under section 469.53.
16.8The aggregate principal amount of bonds issued under this clause may not exceed
16.9$585,000,000, less the principal amount of any city grant, bond, or note given or issued to
16.10finance project costs consistent with the development plan up to $60,000,000.
16.11(b) No bonds may be issued by the authority under this subdivision later than
16.1220 years from the date of final enactment of this act, and no bond issued under this
16.13subdivision may have a maturity later than December 31, 2049.
16.14 Subd. 6. Approval of commissioner of employment and economic development.
16.15(a) Prior to issuance of each series of bonds, notes, or other obligations under subdivision
16.165, clause (2), the authority shall furnish to the commissioner of employment and economic
16.17development, in the form prescribed by the commissioner, the following information
16.18regarding a project:
16.19(1) the amount of bonds to be issued for the project;
16.20(2) the maximum annual debt service payable on the bonds in any year;
16.21(3) the proposed use, location, and ownership of the project;
16.22(4) other sources of funds for the project; and
16.23(5) the specific uses of the proceeds of the bonds.
16.24For purposes of determining the maximum annual debt service under clause (2), for
16.25variable rate obligations, interest rates must be determined as the maximum rate of interest
16.26payable on the obligations in accordance with their terms.
16.27(b) In addition, the authority shall certify that the project is consistent with the
16.28development plan and that debt service in any year on all bonds then outstanding and the
16.29bonds proposed to be issued under subdivision 5, paragraph (a), clause (2), does not
16.30exceed resources available to the authority to pay debt service when due.
16.31(c) Based upon the information provided by the authority, the commissioner of
16.32employment and economic development shall approve the issuance of that series of
16.33authority bonds if consistent with the requirements of sections 469.41 to 469.53, the
16.34maximum debt service payable in any year on the series, and any previously issued bonds
16.35is less than the maximum annual appropriation under section 469.53 and the commissioner
16.36of employment and economic development shall promptly notify the authority and the
17.1commissioner of management and budget of its approval; provided, however, that the
17.2approval is not deemed an approval by the commissioner of employment and economic
17.3development or by the state of the feasibility of the project. The commissioner of
17.4employment and economic development shall keep a record of the information, which
17.5shall be available to the public at times the department prescribes.
17.6 Subd. 7. Not city, county, or state debt. Revenue bonds, notes, or other obligations
17.7issued under this section are not a debt of the city, county, or state, nor a pledge of the full
17.8faith and credit of the city, county, or state. All obligations under this section are payable
17.9only from revenues described in subdivision 5. A revenue bond must contain on its face a
17.10statement to the effect that the authority does not have to pay the bond or the interest on it
17.11except from the revenues pledged thereto and that the faith, credit, and taxing power of the
17.12city, the county, and the state are not pledged to pay the principal of or interest on the bond.
17.13 Sec. 11. [469.51] CITY BONDS; PUBLIC IMPROVEMENTS.
17.14The city may issue bonds and appropriate bond proceeds to pay project costs
17.15consistent with the development plan within a medical center development district. The city
17.16may undertake public improvements and infrastructure projects to be owned by the city or
17.17make grants to the authority for such public improvements and infrastructure projects in the
17.18same manner as if the facilities were owned or to be owned or operated solely by the city.
17.19 Sec. 12. [469.52] WHEN BOND ALLOCATION ACT APPLIES.
17.20Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.41 to
17.21469.53 that are limited by a federal tax law as defined in section 474A.02, subdivision 8.
17.22 Sec. 13. [469.53] PAYMENTS TO AUTHORITY.
17.23 Subdivision 1. Appropriation for debt payment. Beginning in fiscal year
17.242016 and continuing to fiscal year 2049, the amount necessary to pay debt service due
17.25on outstanding obligations of the authority issued under section 469.50, subdivision
17.265, paragraph (a), clause (2), is appropriated each year from the general fund to the
17.27commissioner of management and budget for transfer to the authority.
17.28 Subd. 2. Operating and administrative expenses. Beginning in fiscal year
17.292016 and continuing to fiscal year 2049, an amount agreed to by the commissioner of
17.30management and budget and the authority is appropriated each year from the general fund
17.31to the commissioner for transfer to the authority to pay operating and administrative
17.32expenses of the authority.
18.1 Subd. 3. Maximum amount; condition for payment. The total amount
18.2appropriated to the commissioner under this section must not exceed $....... per year.
18.3The commissioner must not transfer money to the authority unless the report required in
18.4section 469.49, subdivision 18, has been submitted.
1.3authority and providing for its organization, powers, and duties; providing
1.4for medical center development districts; authorizing the issuance of revenue
1.5obligations by the authority; authorizing city bonds; authorizing state assistance;
1.6appropriating money;proposing coding for new law in Minnesota Statutes,
1.7chapter 469.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [469.40] PURPOSES.
1.10In order to secure Minnesota's status as one of the world's leading global medical
1.11destinations now and in the future, with the city of Rochester as its hub, it is essential to
1.12support state and local investment in the public infrastructure and related development
1.13activities to stimulate significant private investment and development. Market forces are
1.14driving a small number of select medical institutions to emerge worldwide as leaders in:
1.15(1) delivering the highest quality medical care and attracting patients and visitors from
1.16throughout the world; (2) conducting leading research and technology development; and
1.17(3) serving as an educational platform to foster development of clinical practitioners
1.18for the next generation of medical advancement. The city of Rochester is, and intends
1.19to continue to be, one of those leading destination medical centers. Its existing medical
1.20institutions must continue to make strategic capital investments to grow their patient base
1.21and deliver the highest quality care in the world. The city must attract new, medically
1.22related and other businesses as a means of major economic development and job growth
1.23in the state of Minnesota. However, continued success in Minnesota of existing medical
1.24institutions in Rochester is dependent upon the institutions' ability to attract leading
1.25clinicians, and sustain quality access, development, programming, services, and the public
2.1infrastructure necessary to meet the demands of a growing patient, visitor, and resident
2.2base. Investments in public infrastructure and related development activities are needed
2.3in order to support and attract significant private capital investments and the anticipated
2.4growth in patient and visitor traffic to Rochester and the surrounding area.
2.5 Sec. 2. [469.41] DEFINITIONS.
2.6 Subdivision 1. Generally. In sections 469.41 to 469.53, the terms defined in this
2.7section have the meanings given them, unless the context indicates a different meaning.
2.8 Subd. 2. Authority. "Authority" means the Rochester Area Medical Center
2.9Development Authority established in section 469.42.
2.10 Subd. 3. City. "City" means the city of Rochester, Minnesota.
2.11 Subd. 4. County. "County" means Olmsted County, Minnesota.
2.12 Subd. 5. Development; developing. "Development" includes redevelopment,
2.13and "developing" includes redeveloping.
2.14 Subd. 6. Development plan. "Development plan" means the long-range plan for the
2.15development of the medical center development district or districts.
2.16 Subd. 7. Medical business entity. "Medical business entity" means a medical
2.17business entity with its principal place of business in the city of Rochester as of the date of
2.18final enactment of this act that employs more than 30,000 persons in the state as of that date.
2.19 Subd. 8. Medical center development district. "Medical center development
2.20district" means a contiguous or noncontiguous geographic area in the city created to
2.21facilitate one or more projects.
2.22 Subd. 9. Medical center economic development corporation. "Medical center
2.23economic development corporation" means a nonprofit corporation organized and existing
2.24under chapter 317A by any medical business entity, in partnership with representatives of
2.25the city experienced in matters of planning, supporting, and administering development
2.26activities, to assist the authority and the city to secure Minnesota's status as one of the
2.27world's leading global medical destinations with the city as its hub.
2.28 Subd. 10. Project. "Project" means the following works or undertakings for the
2.29purpose of development of a medical center development district:
2.30(1) to acquire real property and other assets associated with the real property;
2.31(2) to demolish, repair, or rehabilitate buildings;
2.32(3) to remediate land and buildings as required to prepare the property for acquisition
2.33or development;
2.34(4) to install, construct, or reconstruct elements of community infrastructure
2.35required to support the overall development of the medical center development district,
3.1including, without limitation, streets, roadways, utilities systems and related facilities,
3.2utility relocations and replacements, network and communication systems, streetscape
3.3improvements, drainage systems, sewer and water systems, subgrade structures and
3.4associated improvements, landscaping, façade construction and restoration, wayfinding
3.5and signage, and other components of community infrastructure;
3.6(5) to acquire, construct or reconstruct, and equip parking facilities and other
3.7facilities to encourage intermodal transportation and public transit;
3.8(6) to install, construct or reconstruct, and equip core elements of community
3.9infrastructure, to promote and encourage economic development and to anchor the medical
3.10center developmental district in accordance with the development plan, including, without
3.11limitation, parks, cultural facilities, community and recreational facilities, facilities to
3.12promote tourism and hospitality, conferencing and conventions, broadcast and related
3.13multimedia infrastructure, destination retail, urban residential housing, and instructional,
3.14educational, and other facilities with the primary purpose of attracting and fostering urban
3.15economic development within the medical center development district;
3.16(7) to make related site improvements, including, without limitation, excavation,
3.17earth retention, soil stabilization and correction, site improvements to support the medical
3.18center development district;
3.19(8) to prepare land for private development and to sell or lease land; and
3.20(9) to build and equip suitable structures on land owned by the authority for sale or
3.21lease for private development, except structures for sale or lease to a medical business
3.22entity.
3.23 Subd. 11. Project cost. (a) "Project cost" with respect to a medical center
3.24development district project means all costs of the project activities described in
3.25subdivision 10, and includes, without limitation:
3.26(1) costs of planning, engineering, legal, marketing, development, insurance,
3.27finance, and other related professional services associated with a project;
3.28(2) costs providing relocation benefits to the occupants of acquired properties;
3.29(3) costs associated with the operational start-up and commissioning of a project; and
3.30(4) the allocated administrative expenses of the authority for the project not to
3.31exceed ...... in any year.
3.32(b) Expenditures for project costs constitute either (1) public improvements to
3.33buildings or lands owned by the state or local government that serve a public purpose and
3.34do not principally benefit a single business or defined group of businesses at the time the
3.35improvements are made or (2) assistance generally available to all businesses or general
4.1classes of similar businesses within a medical center development district, subject to
4.2approval by the authority.
4.3 Sec. 3. [469.42] AUTHORITY ESTABLISHED.
4.4 Subdivision 1. Rochester Area Medical Center Development Authority
4.5established; membership. (a) The Rochester Area Medical Center Development
4.6Authority is established. The authority's governing board consists of eight voting members
4.7and two nonvoting members, as follows:
4.8 (1) the mayor of the city, or the mayor's designee, subject to approval by the city
4.9council;
4.10 (2) the city council president, or the city council president's designee, subject
4.11to approval by the city council;
4.12 (3) a representative of the medical business entity defined in section 469.41,
4.13subdivision 7, appointed by the mayor of the city, subject to approval of the city council;
4.14 (4) the chair of the county board, or the chair's designee, subject to approval by the
4.15county board;
4.16 (5) a representative of the medical business entity defined in section 469.41,
4.17subdivision 7, appointed by the governor;
4.18 (6) a resident of the city and a resident from outside of Olmsted County, appointed
4.19by the governor;
4.20 (7) a representative from a statewide labor organization representing the building
4.21trades, appointed by the governor;
4.22 (8) one member of the house of representatives who represents at least a portion
4.23of the city of Rochester to serve as a nonvoting member, appointed by the speaker of
4.24the house of representatives; and
4.25 (9) one member of the senate who represents at least a portion of the city of
4.26Rochester to serve as a nonvoting member, appointed by the Subcommittee on Committees
4.27of the senate Committee on Rules and Administration.
4.28 (b) Appointing authorities must make their appointments as soon as practicable after
4.29the effective date of this section.
4.30 Subd. 2. Terms. (a) The term of a member first appointed after the effective date
4.31of this section under subdivision 1, paragraph (a), clauses (1), (2), and (4), serves for a
4.32term coterminous with the term of office.
4.33 (b) The term of a member first appointed after the effective date of this section under
4.34subdivision 1, paragraph (a), clauses (3) and (6), serves from the date of appointment until
5.1the first Tuesday after the first Monday in January 2017. Thereafter, members serve
5.2six-year terms.
5.3 (c) The term of a member first appointed after the effective date of this section under
5.4subdivision 1, paragraph (a), clauses (5) and (7), serves from the date of appointment until
5.5the first Tuesday after the first Monday in January 2020. Thereafter, members serve
5.6six-year terms.
5.7 (d) The nonvoting members serve for two years.
5.8 Subd. 3. Vacancies. A vacancy occurs:
5.9 (1) as provided in section 351.02;
5.10 (2) for a member appointed under subdivision 1, paragraph (a), clause (1) or (2),
5.11when the mayor or city council president, respectively, ceases to hold office or ceases
5.12to reside in the city, and under subdivision 1, paragraph (a), clause (4), when the chair
5.13of the county board ceases to hold office;
5.14 (3) for a member appointed under subdivision 1, paragraph (a), clause (6), when
5.15the member ceases to reside in the city;
5.16 (4) for a legislative appointee, if the member ceases to serve in the state legislature; or
5.17 (5) upon a member's removal under subdivision 4.
5.18A vacancy on the authority board must be filled by the appointing authority for the
5.19balance of the term subject to the same approval required for an appointment for a full
5.20term as provided in subdivision 1.
5.21 Subd. 4. Removal. A member may be removed by the board for inefficiency,
5.22neglect of duty, or misconduct in office. A member may be removed only after a hearing
5.23of the board. A copy of the charges must be given to the board member at least ten days
5.24before the hearing. The board member must be given an opportunity to be heard in person
5.25or by counsel at the hearing. When written charges have been submitted against a board
5.26member, the board may temporarily suspend the member. If the board finds that those
5.27charges have not been substantiated, the board member shall be immediately reinstated. If
5.28a board member is removed, a record of the proceedings, together with the charges and
5.29findings, shall be filed with the office of the appointing authority.
5.30 Subd. 5. Pay. Members must be compensated as provided in section 15.0575,
5.31subdivision 3, for each regular or special authority board meeting attended. In addition,
5.32the board members may be reimbursed for actual expenses incurred in doing official
5.33business of the authority. All money paid for compensation or reimbursement must be
5.34paid out of the authority's budget.
5.35 Subd. 6. Conflicts of interest. Except for the members appointed under subdivision
5.361, paragraph (a), clauses (3) and (5), to represent the medical business entity, within one
6.1year prior to or at any time during a member's term of service on the authority's governing
6.2board, a member must not be employed by, be a member of the board of directors of, or
6.3otherwise be a representative of the medical business entity, as defined in section 469.41,
6.4subdivision 7, or the medical center economic development corporation, as defined in
6.5section 469.41, subdivision 9. No member may serve as a lobbyist, as defined under
6.6section 10A.01, subdivision 21.
6.7 Sec. 4. [469.43] CHARACTERISTICS AND JURISDICTION.
6.8 Subdivision 1. Public body characteristics. The authority is a body politic and
6.9corporate and a political subdivision of the state, with the right to sue and be sued in its
6.10own name. The authority carries out an essential government function of the state when it
6.11exercises its power, but the authority is not immune from liability because of this.
6.12 Subd. 2. Boundaries. The boundary for activities and the use of the powers of the
6.13authority must be within a medical center development district. The authority also has the
6.14power to finance activities outside of a medical center development district, if necessary;
6.15provided, however, that the financing of activities outside of a medical center development
6.16district must be included in the development plan and must be approved by, and subject to
6.17the planning, zoning, sanitary and building laws, ordinances, regulations, and land use
6.18plans applicable to, the city, county, or town in which such activities are undertaken.
6.19 Sec. 5. [469.44] OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
6.20 Subdivision 1. Bylaws, rules, seal. The authority may adopt bylaws and rules of
6.21procedure and may adopt an official seal.
6.22 Subd. 2. Officers. The authority shall annually elect a president or chair, and a
6.23vice-president or vice-chair, and a treasurer. A member may not serve as president or
6.24chair and vice-president or vice-chair at the same time. The authority shall appoint a
6.25secretary and assistant treasurer. The secretary and assistant treasurer need not, but may,
6.26be members of the board, including the president or chair or vice-president or vice-chair.
6.27 Subd. 3. Duties and powers. The officers have the usual duties and powers of their
6.28offices. They may be given other duties and powers by the authority.
6.29 Subd. 4. Treasurer's duties. The treasurer:
6.30(1) shall receive and is responsible for authority money;
6.31(2) is responsible for the acts of the assistant treasurer;
6.32(3) shall disburse authority money by check or electronic procedures;
6.33(4) shall keep an account of the source of all receipts, and the nature, purpose, and
6.34authority of all disbursements; and
7.1(5) shall file the authority's detailed financial statement with its secretary at least
7.2once a year at times set by the authority.
7.3 Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of
7.4the treasurer if the treasurer is absent or disabled.
7.5 Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned
7.6for the faithful discharge of official duties. The bond must be approved as to form and
7.7surety by the authority and filed with its secretary. The bond must be for twice the amount
7.8of money likely to be on hand at any one time, as determined at least annually by the
7.9authority, except that the bond must not exceed $300,000.
7.10 Subd. 7. Public money. Authority money is public money.
7.11 Subd. 8. Checks. An authority check must be signed by the treasurer and by one
7.12other officer named by the authority in a resolution. The check must state the name of the
7.13payee and the nature of the claim for which the check is issued.
7.14 Subd. 9. Financial statements; filing with state auditor. The financial statements
7.15of the authority must be prepared, audited, filed, and published or posted in the manner
7.16required for the financial statements of the city. The authority shall employ the state
7.17auditor or a certified public accountant to annually examine and audit its books. The
7.18report of the exam and audit must be filed with the state auditor by June 30 of each year.
7.19The state auditor shall review the report and may accept it or, in the public interest, audit
7.20the books of the authority.
7.21 Sec. 6. [469.45] DEPOSITORIES; DEFAULT; COLLATERAL.
7.22 Subdivision 1. Named; bond. Every two years the authority shall name national
7.23or state banks within the state as depositories. Before acting as a depository, a named
7.24bank shall give the authority a bond approved as to form and surety by the authority.
7.25The bond must be conditioned for the safekeeping and prompt repayment of deposits.
7.26The amount of the bond must be at least equal to the maximum sum expected to be on
7.27deposit at any one time.
7.28 Subd. 2. Default; collateral. When authority funds are deposited by the treasurer
7.29in a bonded depository, the treasurer and the surety on the treasurer's official bond are
7.30exempt from liability for the loss of the deposits because of the failure, bankruptcy, or any
7.31other act or default of the depository. The authority may accept assignments of collateral
7.32from its depository to secure deposits in the same manner as assignments of collateral are
7.33permitted by law to secure deposits of the city.
8.1 Sec. 7. [469.47] TAX LEVIES; CITY OR COUNTY APPROPRIATIONS;
8.2OTHER FISCAL MATTERS.
8.3 Subdivision 1. Obligations. The authority must not levy a tax or special assessment,
8.4pledge the credit of the state or the state's municipal corporations or other subdivisions, or
8.5incur an obligation enforceable on property not owned by the authority.
8.6 Subd. 2. Budget. The authority shall annually send its budget to the city, county,
8.7governor, and legislature.
8.8 Subd. 3. Fiscal year. The fiscal year of the authority may be established by the
8.9authority.
8.10 Subd. 4. City or county appropriations; levy. The city council of the city or the
8.11county board of the county may appropriate money for the use of the authority and may
8.12levy the amount of its appropriation in its general levy. The levy is a special levy within
8.13the meaning of, and as if specifically enumerated in, section 275.70, subdivision 5.
8.14 Subd. 5. Outside budget laws. Money appropriated to the authority by the city
8.15or county under this section is not subject to a budget law that applies to the city or
8.16county, respectively.
8.17 Subd. 6. City or county payment. The city or county treasurer shall pay money
8.18appropriated by a city or county under subdivision 4 when and in the manner directed by
8.19the city council or county board, as applicable.
8.20 Subd. 7. Local government tax base not reduced. Nothing in sections 469.41 to
8.21469.53 reduces the tax base or affects the taxes due and payable to the city, the county, or
8.22Independent School District No. 535, including, without limitation, the city's 0.5 percent
8.23local sales tax.
8.24 Sec. 8. [469.48] DEVELOPMENT PLAN; MEDICAL CENTER
8.25DEVELOPMENT DISTRICTS.
8.26 Subdivision 1. Development plan; adoption by authority; notice; findings. The
8.27authority, in consultation with the medical center economic development corporation,
8.28shall prepare a development plan with the city's involvement. The development plan must
8.29be adopted by the board of the authority only after holding a public hearing. At least 45
8.30days before the hearing, the authority shall file a copy of the proposed development plan
8.31with the city. The city shall make copies of the proposed plan available to the public at
8.32the city offices during normal business hours and as otherwise determined appropriate
8.33by city council or city officials. At least ten days before the hearing, the authority shall
8.34publish notice of the hearing in a daily newspaper of general circulation in the city. The
8.35development plan may not be adopted unless the authority finds by resolution that:
9.1(1) the plan provides an outline for the development of the city as a global destination
9.2medical center, and the plan is sufficiently complete, including the identification of planned
9.3and anticipated projects, to indicate its relationship to definite state and local objectives;
9.4(2) the proposed development affords maximum opportunity, consistent with the
9.5needs of the city, county, and state, for the development of the city by private enterprise as
9.6a global destination medical center;
9.7(3) the proposed development conforms to the general plan for the development
9.8of the city; and
9.9(4) the plan includes:
9.10(i) strategic planning consistent with a global destination medical center in the
9.11core areas of commercial research and technology, learning environment, hospitality
9.12and convention, sports and recreation, livable communities, including mixed-use urban
9.13development and neighborhood residential development, retail/dining/entertainment,
9.14and health and wellness;
9.15(ii) estimates of short- and long-range fiscal and economic impacts;
9.16(iii) a framework to identify and prioritize short- and long-term public investment
9.17and infrastructure development and to facilitate private investment and development;
9.18(iv) land use planning;
9.19(v) transportation and transit planning;
9.20(vi) operational planning required to support the medical center development
9.21district; and
9.22(vii) ongoing market research plans.
9.23 Subd. 2. Development plan; approval by city; finding. After adoption by the
9.24authority under subdivision 1, the authority shall submit the development plan to the city
9.25for approval by the city only in accordance with this subdivision. The city shall approve
9.26the development plan by written resolution upon making the finding that the development
9.27plan is consistent with the adopted comprehensive plan of the city. The city shall consider
9.28the approval of the development plan and make its finding regarding consistency with
9.29the adopted comprehensive plan of the city within 45 days of submission of the adopted
9.30development plan. If the city determines, by written resolution, that the development plan
9.31is not consistent with the adopted comprehensive plan of the city, the resolution shall state
9.32the reasons and supporting facts for each determination, and the city shall transmit the
9.33resolution to the authority within seven days of adoption. A revised development plan
9.34may be submitted by the authority for approval by the city in the manner provided in this
9.35subdivision. The city may incorporate the approved development plan into the city's
9.36comprehensive plan.
10.1 Subd. 3. Modification of development plan. The authority may modify the
10.2development plan at any time. The authority shall update the original development plan
10.3not less than every five years. A modification or update under this subdivision must be
10.4prepared with the city's involvement and adopted by the authority upon the notice and
10.5after the public hearing and findings required for the original adoption of the development
10.6plan and upon approval by the city as provided in subdivision 2.
10.7 Subd. 4. Medical center development districts; creation; notice; findings. As
10.8part of the development plan, the authority may create and define the boundaries of
10.9medical center development districts and subdistricts at any place or places within the
10.10city. Projects may be undertaken within defined medical center development districts
10.11consistent with the development plan.
10.12 Subd. 5. Policy. It is state policy in the public interest to have the authority exercise
10.13the power of eminent domain to acquire property for a public use, as defined in section
10.14117.025, and advance and spend money for the purposes in sections 469.41 to 469.53.
10.15 Sec. 9. [469.49] POWERS AND DUTIES.
10.16 Subdivision 1. Powers generally. The authority has the powers of a city under
10.17chapter 462C and the powers of a redevelopment agency under sections 469.152 to
10.18469.1651, in connection with private development in the city for which the authority
10.19has previously undertaken or concurrently undertakes a project financed in whole or in
10.20part with authority revenue or obligations issued pursuant to section 469.50; provided,
10.21however, the authority shall not enter into any revenue agreement pursuant to section
10.22469.155, subdivision 5, with a medical business entity.
10.23 Subd. 2. Projects; project costs. The authority may, within a medical center
10.24development district, undertake projects and finance project costs. The authority must
10.25find by resolution that the project is consistent with and in furtherance of the approved
10.26development plan. Subject to other applicable law, revenue derived by the authority
10.27from any source may be used by the authority to make loans or grants, or to provide
10.28direct or indirect financial support to state public bodies or to private entities in payment
10.29or reimbursement of project costs; provided, however, projects as defined under section
10.30469.41, subdivision 10, clauses (4), (5), and (6), which will be owned, operated, or
10.31maintained by the city, must be approved by written resolution of the city.
10.32 Subd. 3. Medical center economic development corporation. (a) The authority
10.33shall engage a medical center economic development corporation to advise the authority
10.34on matters related to a project. The provisions of section 465.717 do not apply to any
10.35entity serving as the medical center economic development corporation. The medical
11.1center economic development corporation shall assist the authority in the preparation of
11.2the development plan and shall provide services to assist the authority in implementing,
11.3consistent with the development plan, the goals, objectives, and strategies in the
11.4development plan, including, without limitation:
11.5(1) developing and updating the criteria for evaluating and underwriting
11.6development proposals;
11.7(2) implementing the development plan, including soliciting and evaluating
11.8proposals for development and evaluating and making recommendations to the authority
11.9regarding those proposals;
11.10(3) providing transactional services in connection with approved projects;
11.11(4) developing patient, visitor, and community outreach programs for a medical
11.12center development district;
11.13(5) working with the authority to acquire and facilitate the sale, lease, or other
11.14transactions involving land and real property;
11.15(6) seeking financial support for itself, the authority, and a project;
11.16(7) partnering with other development agencies and organizations and the city and
11.17county in joint efforts to promote economic development and establish a destination
11.18medical center;
11.19(8) supporting and administering the planning and development activities required to
11.20implement the development plan;
11.21(9) preparing and supporting the marketing and promotion of the medical center
11.22development district;
11.23(10) preparing and implementing a program for community and public relations in
11.24support of the medical center development district;
11.25(11) assisting the authority and others in applications for federal grants, tax credits,
11.26and other sources of funding to aid both private and public development; and
11.27(12) making other general advisory recommendations to the authority's governing
11.28board, as requested.
11.29(b) The authority may contract with the medical center economic development
11.30corporation to provide administrative services to the authority. The authority may agree to
11.31provide reasonable compensation to the medical center economic development corporation
11.32for the services described in this section. The authority may pay for such services out of
11.33any revenue sources available to it, including amounts received from the city or the county
11.34under section 469.47 or from payments received from the state under section 469.53.
11.35Nothing in sections 469.40 to 469.53 shall relieve the authority's governing board of its
12.1duties and powers to adopt the development plan or to exercise the judgment or discretion
12.2of the authority to finance projects or otherwise expend public funds.
12.3 Subd. 4. Revenue pooling. The authority may deposit all its money from any
12.4source in one bank account.
12.5 Subd. 5. Acquire property; exemption for taxes. (a) The authority may acquire by
12.6lease, purchase, gift, or devise the needed right, title, and interest in property to create
12.7medical center development districts and undertake projects. The authority may exercise
12.8the power of eminent domain to acquire property for a public use, as defined in section
12.9117.025. It shall pay for the property out of money it receives under sections 469.41 to
12.10469.53. It may hold and dispose of the property subject to the limits and conditions in
12.11sections 469.41 to 469.53. The title to property acquired by condemnation or purchase
12.12must be in fee simple, absolute. The authority may accept an interest in property acquired
12.13in another way subject to any condition of the grantor or donor. The condition must
12.14be consistent with the proper use of the property under sections 469.41 to 469.53. The
12.15authority may sign options to purchase, sell, or lease property.
12.16(b) Property acquired, owned, leased, controlled, used, or occupied by the authority
12.17for any of the purposes of this section is for public governmental and municipal purposes
12.18and is exempt from taxation by the state or its political subdivisions, except to the extent
12.19that the property is subject to the sales and use tax under chapter 297A. The exemption in
12.20this paragraph applies only while the authority holds property for its own purpose, and is
12.21subject to section 272.02, subdivisions 38 and 39. When the property is sold it becomes
12.22subject to taxation.
12.23 Subd. 6. Subject to city requirements. All projects and development plans are
12.24subject to the planning, zoning, sanitary, and building laws, ordinances, regulations,
12.25and land use plans applicable to the city.
12.26 Subd. 7. Sale of property. The authority may sell, convey, and exchange any real or
12.27personal property owned or held by it in any manner and on any terms it wishes. Real
12.28property owned by the authority must not be sold, conveyed, exchanged, or have its title
12.29transferred without approval of two-thirds of the members of the board. All members
12.30must have ten days' written notice of a regular or special meeting at which a vote on sale,
12.31conveyance, exchange, or transfer of real property is to be taken. The notice must contain
12.32a complete description of the affected real property. The resolution authorizing the real
12.33property transaction is not effective unless a quorum is present.
12.34 Subd. 8. Contracts. The authority may make contracts for the purpose of economic
12.35development within the powers given it in sections 469.41 to 469.53. The authority
12.36may contract or arrange with the federal government, or any of its departments, with
13.1persons, public corporations, the state, or any of its political subdivisions, commissions, or
13.2agencies, for separate or joint action, on any matter related to using the authority's powers
13.3or performing its duties. The authority may contract to purchase and sell real and personal
13.4property. An obligation or expense must not be incurred by the authority unless existing
13.5appropriations together with the reasonably expected revenue of the authority from other
13.6sources are sufficient to discharge the obligation or pay the expense when due. The state
13.7and its municipal subdivisions are not liable on the obligations of the authority.
13.8 Subd. 9. Contracts for services. The authority may contract for the services of
13.9consultants, including the medical center economic development corporation, and agents,
13.10public accountants, legal counsel, and other persons needed to assist the authority in
13.11performing its duties and exercising its powers. The authority may contract with the city
13.12or county to provide administrative, clerical, and accounting services to the authority.
13.13Nothing in sections 469.40 to 469.53 relieves the authority's governing board of its duties
13.14and powers to adopt the development plan or to exercise the judgment or discretion of the
13.15authority to finance projects or otherwise expend public funds. Any contract for services
13.16between the authority and the medical center development corporation paid, in whole or
13.17in part, with public money shall give the authority and the state auditor the right to audit
13.18the books and records of the medical center development corporation that are necessary
13.19to certify (1) the nature and extent of the services furnished pursuant to the contract,
13.20and (2) that the payment for services and related disbursements complies with all state
13.21laws, regulations, and the terms of the contract. Any contract for services between the
13.22authority and the medical center development corporation paid, in whole or in part, with
13.23public money shall require the authority to maintain, during the term of the contract,
13.24and for a period of at least ... years thereafter, accurate and complete books and records
13.25directly relating to the contract.
13.26 Subd. 10. Supplies. The authority may purchase the supplies and materials it needs
13.27to carry out sections 469.41 to 469.53.
13.28 Subd. 11. City purchasing. The authority may, by agreement with the city, use the
13.29facilities and services of the city's purchasing and public works departments in connection
13.30with construction work and to purchase equipment, supplies, or materials.
13.31 Subd. 12. City facilities, services. The city may furnish offices, structures and
13.32space, and clerical, engineering, or other services or assistance to the authority.
13.33 Subd. 13. Delegation power. The authority may delegate to one or more of its
13.34agents powers or duties as it deems proper.
13.35 Subd. 14. Government agent. The authority may cooperate with or act as agent
13.36for the federal or state government, a state public body, or an agency or instrumentality
14.1of a government or a public body to carry out sections 469.41 to 469.53 or any other
14.2related federal, state, or local law.
14.3 Subd. 15. Studies, analysis, research. The authority may study and analyze
14.4development needs in a medical center development district and ways to meet the needs.
14.5The authority may study the desirable patterns for land use and community growth and
14.6other factors affecting local development in a medical center development district and
14.7make the result of the studies available to the public and to potential developers. The
14.8authority may engage in research and disseminate information on development in its
14.9medical center development districts.
14.10 Subd. 16. Acceptance of public land. The authority may accept conveyances of
14.11land from all other public agencies, commissions, or other units of government, if the land
14.12can be properly used by the authority in a medical center development district, to carry
14.13out the purposes of sections 469.41 to 469.53. The city council of the city may transfer
14.14or cause to be transferred to the authority any property owned or controlled by the city
14.15and located within the jurisdiction of the authority. The transfer must be approved by
14.16majority vote of the city council and may be with or without consideration. The city may
14.17also put the property in the possession or control of the authority by a lease or other
14.18agreement for a limited period or in fee.
14.19 Subd. 17. Loans in anticipation of bonds. After authorizing bonds under section
14.20469.50, the authority may borrow to provide money immediately required for the bond
14.21purposes. The loans may not exceed the amount of the bonds. The authority shall by
14.22resolution decide the terms of the loans. The loans must be evidenced by negotiable
14.23notes due in not more than 12 months from the date of the loan payable to the order of
14.24the lender, to be repaid with interest from the proceeds of the bonds when the bonds are
14.25issued and delivered to the bond purchasers. The loan must not be obtained from any
14.26board member of the authority or from any corporation, association, or other institution of
14.27which an authority board member is a stockholder or officer.
14.28 Subd. 18. Report. By January 15 of each odd-numbered year, the authority shall
14.29report to the chairs and ranking minority members of the legislative committees with
14.30jurisdiction over local and state government operations, economic development, and
14.31capital investment, and to the commissioners of management and budget and employment
14.32and economic development, the city, and the county. The authority shall also submit the
14.33report as provided in section 3.195. The report must include:
14.34(1) the adopted development plan and any proposed changes to the development plan;
14.35(2) progress of projects identified in the development plan;
15.1(3) actual costs and financing sources of projects completed in the previous two
15.2years by the authority, the city, the county, and the medical business entity;
15.3(4) estimated costs and financing sources for projects to be begun in the next two
15.4years by the authority, the city, the county, and the medical business entity; and
15.5(5) debt service schedules for all outstanding obligations of the authority.
15.6 Subd. 19. No tax increment financing powers. The authority is not an authority as
15.7defined in section 469.174, subdivision 2.
15.8 Sec. 10. [469.50] REVENUE OBLIGATIONS; PLEDGE; COVENANTS.
15.9 Subdivision 1. Powers. The authority may decide by resolution to issue its revenue
15.10bonds, notes, or other obligations either at one time or in series from time to time. The
15.11revenue bonds may be issued to provide money to pay project costs. The issued bonds
15.12may include the amount the authority considers necessary to establish an initial reserve to
15.13pay principal of and interest on the bonds, including capitalized interest, and to pay the
15.14costs of issuance. The resolution shall state how the bonds are to be executed.
15.15 Subd. 2. Form. The bonds of each series issued by the authority under this section
15.16must bear interest at the rate or rates, mature at times not later than 30 years from the date
15.17of issuance, and be fully registered bonds in the form determined by the authority. All
15.18bonds issued under this section must be negotiable instruments.
15.19 Subd. 3. Sale. The sale of revenue bonds issued by the authority may be at public or
15.20private sale. The bonds may be sold in the manner and for the amount that the authority
15.21determines to be in the best interest of the authority. The bonds may be made callable upon
15.22terms as determined by the authority and may be refunded as provided in section 475.67.
15.23 Subd. 4. Agreements. The authority may by resolution make an agreement or
15.24covenant with the bondholders or their trustee if it determines that the agreement or
15.25covenant is needed or desirable to carry out the powers given to the authority under this
15.26section and to ensure that the revenue bonds are marketable and promptly paid.
15.27 Subd. 5. Revenue pledge. (a) In issuing bonds under this section, the authority may
15.28secure payment of the principal and interest on the bonds by:
15.29(1) a pledge of and lien on authority revenue. The revenue must come from the
15.30facility to be acquired, constructed, or improved with the bond proceeds or from other
15.31facilities named in the bond-authorizing resolutions. The authority also may secure the
15.32payment with its promise to impose, maintain, and collect enough rentals, rates, and
15.33charges, for the use and occupancy of the facilities and for services furnished in connection
15.34with the use and occupancy, to pay its current expenses to operate and maintain the named
15.35facilities, and to produce and deposit sufficient net revenue in a special fund to meet the
16.1interest and principal requirements of the bonds, and to collect and keep any more money
16.2required by the resolutions. The authority shall decide what constitutes "current" expense
16.3under this subdivision based on what is normal and reasonable under generally accepted
16.4accounting principles. Revenues pledged by the authority must not be used or pledged for
16.5any other authority purpose unless the other use or pledge is specifically authorized in the
16.6bond-authorizing resolutions; or
16.7(2) the payments to be made by the state to the authority under section 469.53.
16.8The aggregate principal amount of bonds issued under this clause may not exceed
16.9$585,000,000, less the principal amount of any city grant, bond, or note given or issued to
16.10finance project costs consistent with the development plan up to $60,000,000.
16.11(b) No bonds may be issued by the authority under this subdivision later than
16.1220 years from the date of final enactment of this act, and no bond issued under this
16.13subdivision may have a maturity later than December 31, 2049.
16.14 Subd. 6. Approval of commissioner of employment and economic development.
16.15(a) Prior to issuance of each series of bonds, notes, or other obligations under subdivision
16.165, clause (2), the authority shall furnish to the commissioner of employment and economic
16.17development, in the form prescribed by the commissioner, the following information
16.18regarding a project:
16.19(1) the amount of bonds to be issued for the project;
16.20(2) the maximum annual debt service payable on the bonds in any year;
16.21(3) the proposed use, location, and ownership of the project;
16.22(4) other sources of funds for the project; and
16.23(5) the specific uses of the proceeds of the bonds.
16.24For purposes of determining the maximum annual debt service under clause (2), for
16.25variable rate obligations, interest rates must be determined as the maximum rate of interest
16.26payable on the obligations in accordance with their terms.
16.27(b) In addition, the authority shall certify that the project is consistent with the
16.28development plan and that debt service in any year on all bonds then outstanding and the
16.29bonds proposed to be issued under subdivision 5, paragraph (a), clause (2), does not
16.30exceed resources available to the authority to pay debt service when due.
16.31(c) Based upon the information provided by the authority, the commissioner of
16.32employment and economic development shall approve the issuance of that series of
16.33authority bonds if consistent with the requirements of sections 469.41 to 469.53, the
16.34maximum debt service payable in any year on the series, and any previously issued bonds
16.35is less than the maximum annual appropriation under section 469.53 and the commissioner
16.36of employment and economic development shall promptly notify the authority and the
17.1commissioner of management and budget of its approval; provided, however, that the
17.2approval is not deemed an approval by the commissioner of employment and economic
17.3development or by the state of the feasibility of the project. The commissioner of
17.4employment and economic development shall keep a record of the information, which
17.5shall be available to the public at times the department prescribes.
17.6 Subd. 7. Not city, county, or state debt. Revenue bonds, notes, or other obligations
17.7issued under this section are not a debt of the city, county, or state, nor a pledge of the full
17.8faith and credit of the city, county, or state. All obligations under this section are payable
17.9only from revenues described in subdivision 5. A revenue bond must contain on its face a
17.10statement to the effect that the authority does not have to pay the bond or the interest on it
17.11except from the revenues pledged thereto and that the faith, credit, and taxing power of the
17.12city, the county, and the state are not pledged to pay the principal of or interest on the bond.
17.13 Sec. 11. [469.51] CITY BONDS; PUBLIC IMPROVEMENTS.
17.14The city may issue bonds and appropriate bond proceeds to pay project costs
17.15consistent with the development plan within a medical center development district. The city
17.16may undertake public improvements and infrastructure projects to be owned by the city or
17.17make grants to the authority for such public improvements and infrastructure projects in the
17.18same manner as if the facilities were owned or to be owned or operated solely by the city.
17.19 Sec. 12. [469.52] WHEN BOND ALLOCATION ACT APPLIES.
17.20Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.41 to
17.21469.53 that are limited by a federal tax law as defined in section 474A.02, subdivision 8.
17.22 Sec. 13. [469.53] PAYMENTS TO AUTHORITY.
17.23 Subdivision 1. Appropriation for debt payment. Beginning in fiscal year
17.242016 and continuing to fiscal year 2049, the amount necessary to pay debt service due
17.25on outstanding obligations of the authority issued under section 469.50, subdivision
17.265, paragraph (a), clause (2), is appropriated each year from the general fund to the
17.27commissioner of management and budget for transfer to the authority.
17.28 Subd. 2. Operating and administrative expenses. Beginning in fiscal year
17.292016 and continuing to fiscal year 2049, an amount agreed to by the commissioner of
17.30management and budget and the authority is appropriated each year from the general fund
17.31to the commissioner for transfer to the authority to pay operating and administrative
17.32expenses of the authority.
18.1 Subd. 3. Maximum amount; condition for payment. The total amount
18.2appropriated to the commissioner under this section must not exceed $....... per year.
18.3The commissioner must not transfer money to the authority unless the report required in
18.4section 469.49, subdivision 18, has been submitted.
