Subdivision 1. Terms. Loans to development authorities for demolition costs may be made by the commissioner subject to the following terms and conditions:
(1) the agreement to repay the loan may be a general obligation of the development authority, payable primarily from a dedicated source of revenue, or other security subject to review and approval by the commissioner, and the development authority must deliver its bond or note to the commissioner to secure the loan;
(2) the term of the loan may not exceed 15 years;
(3) the loan shall bear interest at a rate equal to two percent, but interest will not accrue during the first two years of the loan term;
(4) the development authority shall make semiannual interest payments and annual principal payments beginning in the third year of the loan until the end of the term;
(5) the principal amount of a loan may not exceed $1,000,000;
(6) loan proceeds shall be disbursed for eligible demolition costs as incurred or paid by the borrower and upon submission of invoices and other supporting documentation satisfactory to the commissioner; and
(7) an eligible borrower shall establish a dedicated source of revenue for repayment of the loan.
Subd. 2. Modification of loan terms. The commissioner has the discretion to consent to the modification of the rate of interest, time of payment, installment of principal or interest, or other term of a loan made under sections 116J.5761 to 116J.5764.
Subd. 3. Forgiveness. The commissioner may forgive principal of the loan and interest accrued but unpaid thereon, if any, up to 50 percent of the original loan amount, not to exceed the costs of demolition, upon completion of the redevelopment plan, if the project would otherwise have received grant funding in the most recent semiannual grant round, based on the priorities in section 116J.575.
2012 c 288 s 8; 2013 c 64 s 1
Structure Minnesota Statutes
Chapters 116J - 116O — Economic Development And Planning
Chapter 116J — Employment And Economic Development
Section 116J.01 — Department Of Employment And Economic Development.
Section 116J.0124 — Plain Language In Written Materials.
Section 116J.0125 — Annual Report To Legislature.
Section 116J.013 — Cost-of-living Study; Annual Report.
Section 116J.014 — Cooperation With Other State Agencies.
Section 116J.03 — Definitions.
Section 116J.035 — Powers Of Commissioner; Rules.
Section 116J.401 — Designation; Duties; Data.
Section 116J.4011 — Labor Market Information Data Production Requirement.
Section 116J.407 — Dairy Modernization.
Section 116J.39 — Office Of Broadband Development.
Section 116J.391 — Coordination Of Broadband Infrastructure Development.
Section 116J.394 — Definitions.
Section 116J.395 — Border-to-border Broadband Development Grant Program.
Section 116J.3951 — Broadband Line Extension Program.
Section 116J.396 — Border-to-border Broadband Fund.
Section 116J.397 — Updated Broadband Deployment Data And Maps.
Section 116J.398 — Broadband Prevailing Wage Exemption.
Section 116J.399 — Broadband Easements.
Section 116J.411 — Definitions.
Section 116J.412 — Account Allocation.
Section 116J.415 — Challenge Grant Program.
Section 116J.417 — Greater Minnesota Child Care Facility Capital Grant Program.
Section 116J.421 — Rural Policy And Development Center.
Section 116J.4221 — Rural Policy And Development Center Fund.
Section 116J.423 — Minnesota 21st Century Fund.
Section 116J.424 — Iron Range Resources And Rehabilitation Contribution.
Section 116J.431 — Greater Minnesota Business Development Public Infrastructure Grant Program.
Section 116J.435 — Innovative Business Development Public Infrastructure Grant Program.
Section 116J.436 — Transportation Economic Development Infrastructure Program.
Section 116J.437 — Coordinating Economic Development And Environmental Policy.
Section 116J.438 — Minnesota Green Enterprise Assistance.
Section 116J.439 — Airport Infrastructure Renewal (air) Grant Program.
Section 116J.548 — Host Community Economic Development Grants.
Section 116J.5491 — Energy Transition Office.
Section 116J.5492 — Energy Transition Advisory Committee.
Section 116J.5493 — Minnesota Energy Transition Plan.
Section 116J.55 — Community Energy Transition Grants.
Section 116J.571 — Creation Of Accounts.
Section 116J.572 — Definitions.
Section 116J.574 — Grant Applications.
Section 116J.5762 — Loan Applications.
Section 116J.5763 — Priorities.
Section 116J.5764 — Loan Terms And Conditions.
Section 116J.5765 — Nonliability.
Section 116J.578 — Bioscience Subsidy.
Section 116J.60 — Promotional Expenses.
Section 116J.617 — Tourism Loan Program.
Section 116J.63 — Sale Of Pamphlets And Publications; Fees; Advertising.
Section 116J.64 — Loans To Indians.
Section 116J.658 — Minnesota Science And Technology Economic Development Project.
Section 116J.871 — Financial Assistance Limitations; Prevailing Wage.
Section 116J.872 — Economic Response Team.
Section 116J.8731 — Minnesota Investment Fund.
Section 116J.8732 — Seed Capital Investment Credit; Commissioner's Responsibilities.
Section 116J.8737 — Small Business Investment Tax Credit.
Section 116J.8738 — Qualified Expansions Of Greater Minnesota Businesses.
Section 116J.8745 — Microenterprise Entrepreneurial Assistance.
Section 116J.8747 — Job Training Program Grant.
Section 116J.8748 — Minnesota Job Creation Fund.
Section 116J.8749 — Main Street Economic Revitalization Program.
Section 116J.551 — Creation Of Accounts.
Section 116J.552 — Definitions.
Section 116J.553 — Grant Applications.
Section 116J.555 — Priorities.
Section 116J.556 — Local Match Requirement.
Section 116J.557 — Cost Recovery Actions.
Section 116J.558 — Effect Of Issuance Of Grants.
Section 116J.66 — Business Assistance.
Section 116J.68 — Bureau Of Small Business.
Section 116J.69 — Uniform Business Licensing Policy.
Section 116J.70 — Definitions.
Section 116J.71 — New Licenses.
Section 116J.72 — Existing Licenses.
Section 116J.73 — Bureau Of Business Licenses; Declaration Of Purpose.
Section 116J.74 — Definitions.
Section 116J.76 — General Functions; Powers And Duties.
Section 116J.77 — Assistance Of Other Agencies.
Section 116J.78 — Comprehensive License Information.
Section 116J.79 — Preapplication Conferences.
Section 116J.80 — Master Application Procedure.
Section 116J.81 — License Coordination And Assistance To Applicants.
Section 116J.82 — Consolidated Hearings.
Section 116J.83 — License Authority Retained.
Section 116J.84 — Services Provided At No Charge.
Section 116J.85 — Federal And Local Government Participation.
Section 116J.86 — Compilation And Maintenance Of Statistical Data.
Section 116J.876 — Definitions.
Section 116J.8761 — Capital Access Program; Creation; Administration.
Section 116J.8762 — Commissioner; Duties.
Section 116J.8763 — Eligible Loans.
Section 116J.8764 — Enrollment Of Loans In Program.
Section 116J.8765 — Reserve Fund; Premiums.
Section 116J.8766 — Claims By Lender To Reserve Fund.
Section 116J.8767 — Subrogation Of Claims.
Section 116J.8768 — Excess Reserve Funds.
Section 116J.8769 — Termination.
Section 116J.8770 — Equity Investments.
Section 116J.881 — Small Business Loan Guarantee Program.
Section 116J.955 — Rural Rehabilitation Revolving Account.
Section 116J.966 — Commissioner's Trade Promotion Duties.
Section 116J.976 — State Approval Of Government Procurement Agreements.
Section 116J.978 — Minnesota Trade Offices In Foreign Markets.
Section 116J.9781 — Invest Minnesota.
Section 116J.979 — Minnesota Step Grants.
Section 116J.980 — Community Development.
Section 116J.982 — Community Development Corporations.
Section 116J.9922 — Central Minnesota Opportunity Grant Program.
Section 116J.9923 — Telecommuter Forward! Certification.
Section 116J.9924 — Targeted Community Capital Project Grant Program.
Section 116J.993 — Definitions.
Section 116J.994 — Regulating Local And State Business Subsidies.
Section 116J.995 — Economic Grants.
Section 116J.996 — Military Reservist Economic Injury And Veteran-owned Small Business Loans.