HF4854

Purpose

This bill is a capital investment act that authorizes funding for a specific St. Cloud project and the sale of state bonds to pay for it. It appropriates money to support infrastructure improvements related to the 5th Avenue South Campus and Downtown Connection project.

Main provisions

• Appropriation: $3,400,000 is appropriated from the bond proceeds fund to the Commissioner of Employment and Economic Development (DEED) to grant the City of St. Cloud. The funds are to be used to acquire right-of-way and to design, engineer, construct, furnish, and equip public infrastructure improvements for the 5th Avenue South Campus and Downtown Connection project.
• Bond sale: The Commissioner of Management and Budget (MMB) shall sell and issue state bonds up to $3,400,000 from the bond proceeds fund to finance the appropriation, under applicable state law and constitutional provisions.

Significance and changes to law

• This bill does not alter existing statutes beyond approving the capital investment funding and the corresponding bond issuance for this project.
• It creates a new funding mechanism (a grant to a city-funded project) and directs the sale of state bonds to cover that funding.

Key entities and terms involved

• Recipient: City of St. Cloud
• Funding agency: Department of Employment and Economic Development (DEED)
• Bond issuer: State (via the Commissioner of Management and Budget)
• Project focus: 5th Avenue South Campus and Downtown Connection project in St. Cloud
• Legal references for bonds: Minnesota Statutes sections 16A.631 to 16A.675; Minnesota Constitution Article XI sections 4 to 7

Fiscal impact

• Financial scope: $3,400,000 in bond proceeds to be issued for the grant and project costs.
• Funding source: Bond proceeds fund
• Long-term effect: Incurs state debt financed by the sale of bonds, repaid under the state’s bond authority

Potential implications or considerations

• The project funding supports right-of-way acquisition and infrastructure improvements, which may influence local development and public access in the area.
• The use of state bonds ties project funding to future debt service obligations funded through state revenues.

Relevant Terms bond proceeds fund; appropriation; grant; right-of-way; design; engineer; construct; furnish; equip; public infrastructure improvements; 5th Avenue South Campus; Downtown Connection; City of St. Cloud; state bonds; bond sale; Minnesota Statutes sections 16A.631 to 16A.675; Minnesota Constitution article XI sections 4 to 7; Commissioner of Employment and Economic Development; Commissioner of Management and Budget