HF333

Purpose

This bill would provide state funding for redevelopment work on the Lot D site in the city of Duluth. It authorizes an appropriation of 10,850,000 from the bond proceeds fund to support a grant to Duluth for improving publicly owned infrastructure as part of Lot D redevelopment.

Key Provisions

• Subdivision 1 – Appropriation:
  • Appropriates 10,850,000 from the bond proceeds fund.
  • The money goes to the commissioner of Employment and Economic Development (DEED) as a grant to the city of Duluth.
  • The grant is for constructing and equipping improvements to publicly owned infrastructure to support the Lot D redevelopment.
  • Eligible improvements include seawall repairs, utility connections, demolition and debris removal, transportation facilities upgrades, site preparation (including soil correction), and other capital-type improvements and betterments.
• Subdivision 2 – Bond Sale:
  • The commissioner of management and budget must sell and issue state bonds up to 10,850,000 to fund the appropriation.
  • Bond issuance must follow Minnesota law (statutes 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4 to 7).

Funding and Financing

• Source: Bond proceeds fund.
• Mechanism: State bonds will be issued to raise the 10,850,000 needed for the grant.
• Oversight: Funded through standard state bonding processes and constitutional/statutory requirements.

What This Means in Practice

• The city of Duluth would receive a grant from DEED to upgrade infrastructure on Lot D for redevelopment.
• Improvements focus on transportation, utilities, seawalls, site prep, and related capital upgrades.
• The state would issue bonds to cover the cost, committing future debt to fund the project.

Significant Changes to Existing Law

• Adds a new appropriation of 10,850,000 from the bond proceeds fund for Duluth’s Lot D redevelopment.
• Creates authorization to issue up to 10,850,000 in state bonds for this purpose, subject to existing bonding laws and constitutional provisions.

Relevant Terms - Lot D redevelopment - Duluth - appropriation - bond proceeds fund - grant - city of Duluth - publicly owned infrastructure - seawall repairs - connection of utilities - demolition and removal of debris - transportation facilities upgrades - site preparation - soil correction - capital nature improvements - bond sale - bonds of the state - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI (sections 4 to 7)