Subdivision 1. Authority; procedure. An economic development authority may issue general obligation bonds in the principal amount authorized by two-thirds majority vote of its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (1) to secure funds needed by the authority to pay for acquired property or (2) for other purposes in sections 469.090 to 469.108. The bonds must be in the amount and form and bear interest at the rate set by the city council. Except as otherwise provided in sections 469.090 to 469.108, the issuance of the bonds is governed by chapter 475. The authority when issuing the bonds is a municipal corporation under chapter 475.
Subd. 2. Detail; maturity. The authority with the consent of its city's council shall set the date, denominations, place of payment, form, and details of the bonds. The bonds must mature serially. The first installment is due in not more than three years and the last in not more than 30 years from the date of issuance.
Subd. 3. Signatures; coupons; liability. The bonds must be signed by the president of the authority, be attested by its secretary, and be countersigned by its treasurer; the signatures may be facsimile signatures. The interest coupons if any, must be attached to the bonds. The coupons must be executed and authenticated by the printed, engrossed, or lithographed facsimile signature of the authority's president and secretary. The bonds do not impose any personal liability on a member of the authority.
Subd. 4. Pledge. The bonds must be secured by the pledge of the full faith, credit, and resources of the issuing authority's city. The authority may pledge the full faith, credit, and resources of the city only if the city specifically authorizes the authority to do so. The city council must first decide whether the issuance of the bonds by the authority is proper in each case and if so, the amount of bonds to issue. The city council shall give specific consent in an ordinance to the pledge of the city's full faith, credit, and resources. The authority shall pay the principal amount of the bonds and the interest on it from taxes levied under this section to make the payment or from authority income from any source.
Subd. 5. Tax levy. An authority that issues bonds under this section, shall, before issuing them, levy a tax for each year on the taxable property in the authority's city. The tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature. The tax must be levied annually until the principal and interest are paid in full. After the bonds have been delivered to the purchasers, the tax must not be repealed until the debt is paid. After the bonds are issued, the authority need not take any more action to authorize extending, assessing, and collecting the tax. On or before September 15, the authority's secretary shall send a certified copy of the levy to the county auditor, together with full information on the bonds for which the tax is levied. The county auditor shall extend and assess the levied tax annually until the principal and interest are paid in full. The authority shall transfer the surplus from the excess levy in this section to a sinking fund after the principal and interest for which the tax was levied and collected is paid. The authority may direct its secretary to send a certificate to the county auditor before September 15 in a year. The certificate must state how much available income, including the amount in the sinking fund, the authority will use to pay principal or interest or both on each specified issue of the authority's bonds. The auditor shall then reduce the bond levy for that year by that amount. The authority shall then set aside the certified amount and may not use it for any purpose except to pay the principal and interest on the bonds. The taxes in this section shall be collected and sent to the authority by the county treasurer as provided in chapter 276. The taxes must be used only to pay the bonds when due.
Subd. 6. Authorized securities. Bonds legally issued under this chapter are authorized securities under section 50.14. A savings bank, trust company, or insurance company may invest in them. A public or municipal corporation may invest its sinking funds in them. The bonds may be pledged by a bank or trust company as security for the deposit of public money in place of a surety bond.
The authority's bonds are instrumentalities of a public governmental agency.
1987 c 291 s 103; 1994 c 416 art 1 s 49; 1995 c 256 s 9; 2002 c 390 s 8
Structure Minnesota Statutes
Chapters 466A - 470 — Local Economic Development
Chapter 469 — Economic Development
Section 469.002 — Definitions.
Section 469.003 — City Housing And Redevelopment Authority.
Section 469.004 — County And Multicounty Authorities.
Section 469.005 — Area Of Operation.
Section 469.006 — Appointment, Qualifications, Tenure Of Commissioners.
Section 469.007 — Powers Of County And Multicounty Authorities.
Section 469.008 — Effect Upon City Housing And Redevelopment Authorities.
Section 469.009 — Conflict Of Interest; Penalties For Failure To Disclose.
Section 469.010 — Removal; Hearing; Notice.
Section 469.011 — Authority Operations.
Section 469.012 — Public Body; Powers, Duties, Programs; Taxes Limited.
Section 469.014 — Liable In Contract Or Tort.
Section 469.015 — Letting Of Contracts; Performance Bonds.
Section 469.016 — Low-rent Housing.
Section 469.017 — Housing Development Projects.
Section 469.0171 — Housing Plan, Program, And Review.
Section 469.019 — Rentals, Tenant Admissions.
Section 469.020 — Discrimination Prohibited, Displaced Families.
Section 469.021 — Preferences.
Section 469.022 — Establishment Of Income Restriction.
Section 469.023 — Periodic Investigation Of Tenant.
Section 469.024 — Power Of Authority.
Section 469.025 — Demolition Of Unsafe Or Unsanitary Buildings.
Section 469.026 — Existing Buildings; Acquisition, Repair.
Section 469.027 — Redevelopment Plan.
Section 469.028 — Municipal Governing Body.
Section 469.029 — Disposal Of Property.
Section 469.030 — Temporary Relocation Of Displaced Families.
Section 469.0305 — Report On Loss Of Housing.
Section 469.031 — Provisional Acceptance By Authority Of Fund, Property.
Section 469.033 — Public Redevelopment Cost; Proceeds; Financing.
Section 469.034 — Bond Issue For Corporate Purposes.
Section 469.035 — Manner Of Bond Issuance; Sale.
Section 469.036 — When Bond Allocation Act Applies.
Section 469.037 — Enforcement By Obligee Of Contracts.
Section 469.038 — Bonds, A Legal Investment.
Section 469.039 — Exemption From Process.
Section 469.041 — State Public Bodies, Powers As To Projects.
Section 469.042 — Agreement On Tax Increments; Equivalents.
Section 469.044 — Bond Pending Litigation.
Section 469.045 — Appearance Of Public Corporation; Bond.
Section 469.046 — Advance Of Litigation On Calendar.
Section 469.047 — Suit For Civil Damages.
Section 469.048 — Definitions.
Section 469.049 — Establishment; Characteristics.
Section 469.050 — Commissioners; Terms, Vacancies, Pay, Continuity.
Section 469.051 — Officers; Duties; Organizational Matters.
Section 469.052 — Depositories; Default; Collateral.
Section 469.0521 — Liable In Contract Or Tort.
Section 469.053 — Tax Levies; Fiscal Matters.
Section 469.054 — Use Of City Property, Services By Authority.
Section 469.055 — Powers And Duties.
Section 469.056 — Employees; Contracts; Audits.
Section 469.057 — Port Control By Others; Petition; Intervention.
Section 469.058 — Industrial Development Districts.
Section 469.059 — Development District Powers.
Section 469.060 — General Obligation Bonds.
Section 469.061 — Revenue Bonds; Pledge; Covenants.
Section 469.062 — Other Bonds.
Section 469.063 — When Bond Allocation Act Applies.
Section 469.064 — Port Authority Activities.
Section 469.065 — Sale Of Property.
Section 469.066 — Advances By Port Authority.
Section 469.067 — Finding Land Is Marginal Is Prima Facie Evidence.
Section 469.0671 — No State Bailout Of Port Authorities.
Section 469.068 — Bid Law For Construction Contracts.
Section 469.071 — Bloomington.
Section 469.072 — Breckenridge.
Section 469.0721 — Cannon Falls; Redwood Falls; Port Authority.
Section 469.0722 — Limitation Of Powers.
Section 469.0723 — Procedural Requirement.
Section 469.0724 — General Obligation Bonds.
Section 469.0726 — Removal Of Commissioners For Cause.
Section 469.073 — Detroit Lakes.
Section 469.075 — Fergus Falls.
Section 469.076 — Granite Falls.
Section 469.0772 — Koochiching County; Port Authority.
Section 469.0775 — Mankato; Port Authority.
Section 469.078 — Minneapolis.
Section 469.079 — North Mankato.
Section 469.0813 — Rosemount; Port Authority.
Section 469.082 — Roseville; Port Authority.
Section 469.085 — South Saint Paul.
Section 469.0856 — Ortonville.
Section 469.088 — White Bear Lake.
Section 469.090 — Definitions.
Section 469.091 — Economic Development Authority.
Section 469.092 — Limit Of Powers.
Section 469.093 — Procedural Requirement.
Section 469.094 — Transfer Of Authority.
Section 469.095 — Commissioners; Appointment, Terms, Vacancies, Pay, Removal.
Section 469.096 — Officers; Duties; Organizational Matters.
Section 469.097 — Employees; Services; Supplies.
Section 469.098 — Conflict Of Interest.
Section 469.099 — Depositories; Default; Collateral.
Section 469.100 — Obligations.
Section 469.102 — General Obligation Bonds.
Section 469.103 — Revenue Bonds; Pledge; Covenants.
Section 469.104 — Sections That Apply If Federal Limit Applies.
Section 469.105 — Sale Of Property.
Section 469.106 — Advances By Authority.
Section 469.107 — City May Levy Taxes For Economic Development Authority.
Section 469.108 — Special Law; Optional Use.
Section 469.1081 — Liable In Contract Or Tort.
Section 469.110 — Definitions.
Section 469.111 — Local Or Area Agencies; Establishment.
Section 469.112 — Municipalities May Join Together.
Section 469.113 — Conflict Of Interest.
Section 469.114 — Agencies; Meetings, Expenses.
Section 469.115 — Powers Of Agencies.
Section 469.116 — Bond Issue For Redevelopment Purposes.
Section 469.117 — Eminent Domain Proceedings.
Section 469.118 — Loans To Redevelopment Agencies.
Section 469.119 — Loan Application Requirements.
Section 469.122 — Limitation Of Powers.
Section 469.123 — Examination And Audit Of Local Agency.
Section 469.125 — Definitions.
Section 469.126 — Authority Granted.
Section 469.130 — Maintenance And Operation.
Section 469.131 — Administration.
Section 469.132 — Advisory Board.
Section 469.141 — Regulation To Protect Mined Underground Space.
Section 469.143 — Definitions.
Section 469.144 — Establishment; Board.
Section 469.145 — Financing Projects And Facilities.
Section 469.146 — Issuance Of Bonds And Notes.
Section 469.147 — Processing Agreement.
Section 469.148 — Applications For Loan Guaranties.
Section 469.149 — Agreements For Reservation Of Tax Increments.
Section 469.151 — State And County Not Liable On Bonds.
Section 469.153 — Definitions.
Section 469.154 — Department Of Employment And Economic Development Duties.
Section 469.156 — Authorization Of Projects And Bonds.
Section 469.157 — Determination Of Cost Of Project.
Section 469.158 — Manner Of Issuance Of Bonds; Interest Rate.
Section 469.159 — Temporary Loans.
Section 469.160 — Validity Of Bonds; Presumption.
Section 469.161 — Limitation Of Powers By Resolution Or Ordinance.
Section 469.162 — Source Of Payment For Bonds.
Section 469.163 — Bondholders' Rights And Remedies.
Section 469.164 — Powers Added To Application Of Existing Laws And Rules.
Section 469.165 — Applicability Of Hra Provisions.
Section 469.1655 — Qualified Green Building And Sustainable Design Projects.
Section 469.166 — Definitions.
Section 469.167 — Border City Enterprise Zone; Duration.
Section 469.169 — Additional Border City Zone Allocations.
Section 469.171 — Border City Enterprise Zones; State Tax Reductions.
Section 469.172 — Development And Redevelopment Powers.
Section 469.173 — Administration.
Section 469.1731 — Border City Development Zones.
Section 469.1732 — Tax Incentives Within Development Zones.
Section 469.1733 — Disqualified Taxpayers.
Section 469.1734 — Tax Incentives Outside Zones.
Section 469.1735 — Limit On Tax Reductions; Applications Required.
Section 469.174 — Definitions.
Section 469.175 — Establishing, Changing Plan, Annual Accounts.
Section 469.176 — Limitations.
Section 469.1761 — Income Requirements; Housing Districts.
Section 469.1762 — Arbitration Of Disputes Over County Costs.
Section 469.1763 — Restrictions On Pooling; Five-year Limit.
Section 469.177 — Computation Of Tax Increment.
Section 469.1771 — Violations.
Section 469.178 — Tax Increment Bonding.
Section 469.1781 — Required Spending For Neighborhood Revitalization.
Section 469.1782 — Special Law Provisions.
Section 469.179 — Existing Projects; Effective Dates Of Amendments.
Section 469.1792 — Special Deficit Authority.
Section 469.1793 — Developer Obligations Continued.
Section 469.1794 — Duration Extension To Offset Deficits.
Section 469.180 — Development Pacts With Entities Of Other States.
Section 469.1811 — Property Tax Exempt; Agricultural Processing Facility.
Section 469.1812 — Definitions.
Section 469.1813 — Abatement Authority.
Section 469.1814 — Bonding Authority.
Section 469.1815 — Administrative.
Section 469.182 — Employment Bureaus; First Class Cities.
Section 469.183 — Bonds For Municipal Market; First Class Cities.
Section 469.1831 — Neighborhood Revitalization Program; First Class City.
Section 469.184 — Municipal Commercial Rehabilitation Loan Program.
Section 469.185 — Conveying Land To Promote Industry, Employment.
Section 469.186 — Bureau Of Information And Publicity; Statutory Cities.
Section 469.187 — First Class City Spending For Publicity; Publicity Board.
Section 469.188 — 2nd, 3rd Class City May Levy To Advertise Its Resources.
Section 469.189 — Spend To Advertise City; Statutory, 2nd, 3rd, 4th Class City.
Section 469.190 — Local Lodging Tax.
Section 469.191 — Contributions To Regional Or Local Organizations.
Section 469.192 — Economic Development Loans.
Section 469.193 — Foreign Trade Zones.
Section 469.194 — Lewis And Clark Water Project Bonding.
Section 469.201 — Definitions.
Section 469.202 — Designation Of Targeted Communities.
Section 469.203 — Targeted Community Revitalization And Financing.
Section 469.204 — Payment; Revolving Fund.
Section 469.205 — City Powers; Uses Of Targeted Community Money.
Section 469.206 — Hazardous Property Penalty.
Section 469.207 — Annual Audit And Report.
Section 469.309 — Rural Job Creation Grants.
Section 469.310 — Definitions.
Section 469.311 — Development Plan.
Section 469.312 — Job Opportunity Building Zones; Limitations.
Section 469.313 — Application For Designation.
Section 469.314 — Designation Of Job Opportunity Building Zones.
Section 469.315 — Tax Incentives Available In Zones.
Section 469.316 — Individual Income Tax Exemption.
Section 469.317 — Corporate Franchise Tax Exemption.
Section 469.318 — Jobs Credit.
Section 469.3181 — Create Automotive Recovery Jobs Credit.
Section 469.319 — Repayment Of Tax Benefits By Businesses That No Longer Operate In A Zone.
Section 469.3191 — Breach Of Agreements By Businesses That Continue To Operate In Zone.
Section 469.3192 — Prohibition Against Amendments To Business Subsidy Agreement.
Section 469.3193 — Certification Of Continuing Eligibility For Jobz Benefits.
Section 469.320 — Zone Performance; Remedies.
Section 469.35 — Transit Improvement Area Accounts.
Section 469.351 — Transit Improvement Area Loan Program.
Section 469.41 — Destination Medical Center Corporation Established.
Section 469.42 — Officers; Duties; Organizational Matters.
Section 469.43 — Development Plan.
Section 469.44 — City Powers, Duties; Authority To Issue Bonds.
Section 469.45 — City Tax Authority.
Section 469.46 — County Tax Authority.
Section 469.47 — State Infrastructure Aid.
Section 469.51 — Regional Exchange District.
Section 469.52 — City Powers; Duties.
Section 469.53 — Regional Exchange District Public Infrastructure Projects.