.................... moves to amend H.F. No. 6 as follows:
Page 4, after line 32, insert:
"Sec. 6. Minnesota Statutes 2014, section 469.40, subdivision 11, is amended to read:
Subd. 11. Public infrastructure project.
(a) "Public infrastructure project" means
a project financed in part or in whole with public money in order to support the medical
business entity's development plans, as identified in the DMCC development plan. A
public infrastructure project may:
(1) acquire real property and other assets associated with the real property;
(2) demolish, repair, or rehabilitate buildings;
(3) remediate land and buildings as required to prepare the property for acquisition
(4) install, construct, or reconstruct elements of public infrastructure required
support the overall development of the destination medical center development district
including, but not limited to, streets, roadways, utilities systems and related facilities,
utility relocations and replacements, network and communication systems, streetscape
improvements, drainage systems, sewer and water systems, subgrade structures and
associated improvements, landscaping, façade construction and restoration, wayfinding
and signage, and other components of community infrastructure;
(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
to encourage intermodal transportation and public transit;
(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
recreational facilities, facilities to promote tourism and hospitality, conferencing
conventions, and broadcast and related multimedia infrastructure;
(7) make related site improvements including, without limitation, excavation,
earth retention, soil stabilization and correction, and site improvements to support
destination medical center development district;
(8) prepare land for private development and to sell or lease land;
(9) provide costs of relocation benefits to occupants of acquired properties; and
(10) construct and equip all or a portion of one or more suitable structures on land
owned by the city for sale or lease to private development; provided, however, that
portion of any structure directly financed by the city as a public infrastructure
not be sold or leased to a medical business entity.
(b) A public infrastructure project is not a business subsidy under section
2.7(c) Public infrastructure project includes the preparation and modification of
2.8the development plan under section 469.43, and the cost of that preparation and any
2.9modification is a capital cost of the public infrastructure project.
Sec. 7. Minnesota Statutes 2014, section 469.44, subdivision 5, is amended to read:
Subd. 5. Project implementation before plan adoption.
The city may exercise the
powers under subdivision 3 with respect to any public infrastructure project commenced
within the area that will be in the destination medical center development district
22, 2013, but before the development plan is adopted subject to approval by the corporation.
Actions taken under this authority must be approved by the corporation to be credited
against the local contribution required under section
469.47, subdivision 4, or to qualify
2.17for reimbursement of the city out of state aid paid under section 469.47, subdivision
3 or 5
Sec. 8. Minnesota Statutes 2014, section 469.47, subdivision 1, is amended to read:
Subdivision 1. Definitions.
(a) For purposes of this section, the following terms
have the meanings given them.
(b) "Commissioner" means the commissioner of employment and economic
(c) "Construction projects" means:
(1) for expenditures by a medical business entity, construction of buildings in the
city for which the building permit was issued after June 30, 2013; and
(2) for any other expenditures, construction of privately owned buildings and other
improvements that are undertaken pursuant to or as part of the development plan and
located within a medical center development district.
(d) "Expenditures" means expenditures made by a medical business entity or by an
individual or private entity on construction projects for the capital cost of the
including, but not limited to:
(1) design and predesign, including architectural, engineering, and similar services;
(2) legal, regulatory, and other compliance costs of the project;
(3) land acquisition, demolition of existing improvements, and other site preparation
(4) construction costs, including all materials and supplies of the project; and
(5) equipment and furnishings that are attached to or become part of the real property.
Expenditures excludes supplies and other items with a useful life of less than a
year that are not used or consumed in constructing improvements to real property or
are otherwise chargeable to capital costs.
(e) "Qualified expenditures
" has the following meaning. In the first year in
3.9 which aid is paid under this section, qualified expenditures for the year"
total certified expenditures since June 30, 2013, through the end of the preceding
For subsequent years, qualified expenditures means the certified
3.12 expenditures for the preceding year.
(f) "Transit costs" means the portions of a public infrastructure project that are
public transit intended primarily to serve the district, such as transit stations,
rights-of-way, and similar costs.
Sec. 9. Minnesota Statutes 2014, section 469.47, subdivision 3, is amended to read:
Subd. 3. General state infrastructure aid.
General state infrastructure aid may
3.18 not be paid out under this section until total expenditures exceed $200,000,000.
The amount of the general state infrastructure aid for a
year equals the
qualified expenditures for the year, as certified by the commissioner
, multiplied by 2.75
percent. The maximum amount of state aid payable in any year is limited to no more
If the aid entitlement for the year exceeds the maximum annual limit,
3.23 the excess is an aid carryover to later years. The carryover aid must be paid in the
3.24 year in which the aid entitlement for the current year is less than the maximum annual
3.25 limit, but only to the extent the carryover, when added to the current year aid, is
3.26 than the maximum annual limit.
If the commissioner determines that the city has made
the required matching local contribution under subdivision 4, the commissioner must
to the city the amount of general state infrastructure aid for the year by September
3.29the commissioner determines that the city has not made the full required matching
3.30contribution for the year, the commissioner must pay only the aid permitted under
3.31agreement for the matching contribution made and any unpaid amount is a carryover
3.32The carryover aid must be paid in the first year after the required matching contribution
3.33is made and in which the aid entitlement for the current year is less than the maximum
3.34annual limit, but only to the extent the carryover, when added to the current year
3.35less than the maximum annual limit.
The city must use general state infrastructure aid it receives under this
subdivision for improvements and other capital costs related to the public infrastructure
projects approved or adopted
by the corporation, other than transit costs. The city must
maintain appropriate records to document the use of the funds under this requirement.
The commissioner, in consultation with the commissioner of management
and budget, and representatives of the city and the corporation, must establish a
on the amount of state aid payable under this subdivision that will be adequate to
in combination with the local contribution, $455,000,000 of general public infrastructure
Sec. 10. Minnesota Statutes 2014, section 469.47, subdivision 4, is amended to read:
Subd. 4. General aid; local matching contribution.
In order to qualify for general
state infrastructure aid, the city must enter a written agreement with the commissioner
that requires the city to make a qualifying local matching contribution to pay for
$128,000,000 of the cost of public infrastructure projects approved by the corporation,
including financing costs, using funds other than state aid received under this section.
The $128,000,000 required local matching contribution is reduced by one-half of the
amounts the city pays for operating and administrative costs of the corporation up
maximum amount agreed to by the board and the city. The agreement must provide for
manner, timing, and amounts of the city contributions, including the city's commitment
for each year. Notwithstanding any law to the contrary, the agreement may provide
the city contributions for public infrastructure project principal costs may be made
20-year period at a rate not greater than $1 from the city for each $2.55 from the
The local match contribution may be provided by the city from any source identified
and any other local tax proceeds or other funds from the city and may
include providing funds to prepare the development plan,
to assist developers undertaking
projects in accordance with the development plan,
or by the city directly undertaking
public infrastructure projects in accordance with the development plan, provided the
projects have been approved by the corporation. City contributions that are in excess
this ratio carry forward and are credited toward subsequent years. The commissioner
city may agree to amend the agreement at any time in light of new information or other
appropriate factors. The city may enter into arrangements with the county to pay for
otherwise meet the local matching contribution requirement. Any public infrastructure
project within the area that will be in the destination medical center development
whose implementation is started or funded by the city after June 22, 2013, but before
the development plan is adopted, as provided by section
469.46, subdivision 5 469.43,
, will be included for the purposes of determining the amount the city has
contributed as required by this section and the agreement with the commissioner, subject
to approval by the corporation.
Sec. 11. Minnesota Statutes 2014, section 469.47, subdivision 5, is amended to read:
Subd. 5. State transit aid.
(a) The city qualifies for state transit aid under this section
if the county contributes the required local matching contribution under subdivision
6 or the
city or county has agreed to make an equivalent contribution out of other funds for
(b) If the city qualifies for aid under paragraph (a), the commissioner must pay the
city the state transit aid in the amount calculated under this paragraph. The amount
state transit aid for a
year equals the
qualified expenditures for the year
certified by the commissioner
for the prior year
, multiplied by 0.75 percent, reduced by
the amount of the local contribution under subdivision 6. The maximum amount of state
transit aid payable in any year is limited to no more than $7,500,000.
If the aid entitlement
5.14 for the year exceeds the maximum annual limit, the excess is an aid carryover to later
5.15 years. The carryover aid must be paid in the first year in which the aid entitlement
5.16 current year is less than the maximum annual limit, but only to the extent the carryover,
5.17 when added to the current year aid, is less than the maximum annual limit. If the
5.18commissioner determines that the city or county has not made the full required matching
5.19local contribution for the year, the commissioner must pay state aid only in proportion
5.20the amount of the matching contribution made for the year and any unpaid amount is
5.21carryover aid. The carryover aid must be paid in the first year after the required
5.22contribution for that prior year is made and in which the aid entitlement for the
5.23year is less than the maximum annual limit, but only to the extent the carryover,
5.24added to the current year aid, is less than the maximum annual limit.
(c) The commissioner, in consultation with the commissioner of management and
budget, and representatives of the city and the corporation, must establish a total
the amount of state aid payable under this subdivision that will be adequate to finance,
combination with the local contribution, $116,000,000 of transit costs.
(d) The city must use state transit aid it receives under this subdivision for transit
costs. The city must maintain appropriate records to document the use of the funds
Page 5, after line 4, insert:
"Sec. 14. EFFECTIVE DATE.
5.34Sections 6 to 11 are effective after the governing body of the city of Rochester
5.35and its chief clerical officer timely comply with Minnesota Statutes, section 645.021,
6.1subdivisions 2 and 3, and apply retroactively to the original effective dates of the
6.2provisions of law that are amended.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly