SF5175

Purpose

The bill would provide state funding to support infrastructure for East Grand Forks’ industrial park. It would appropriate money from the bond proceeds fund to help design and construct municipal infrastructure (like streets and utilities) for the industrial park located south of U.S. Highway 2 and east of 5th Avenue Northeast. It would also authorize the sale of state bonds up to the same amount to fund this project.

Main Provisions

• Subdivision 1 — Appropriation:

  • Amount: 6,419,000 dollars from the bond proceeds fund.
  • Source and recipient: The funds go to the commissioner of employment and economic development as a grant to the city of East Grand Forks.
  • Use: To design and construct improvements to municipal infrastructure to support the city’s industrial park.
  • Scope: Infrastructure improvements include street and utility replacement and repair and are located south of U.S. Highway 2 and east of 5th Avenue Northeast.

• Subdivision 2 — Bond sale:

  • Action: The commissioner of management and budget must sell and issue state bonds to provide up to 6,419,000 dollars.
  • Compliance: Bond sale must follow Minnesota Statutes 16A.631 to 16A.675 and the Minnesota Constitution, Article XI, sections 4 to 7.

Significance and Changes to Law

• New financing mechanism for East Grand Forks infrastructure: The bill creates a specific appropriation and authorizes the issuance of state bonds to fund infrastructure improvements for a municipal industrial park.
• Funding source and limitations: Uses the bond proceeds fund and ties the financing to existing statutory and constitutional requirements for bond issuance.

What this means in plain terms

• The state would provide a grant (via the commissioner of employment and economic development) to East Grand Forks to plan and build streets and utilities for an industrial park.
• The project would be paid for with up to 6.419 million dollars in state bonds issued by the state treasurer, following applicable laws.

Relevant Terms - East Grand Forks - industrial park - municipal infrastructure - grant - design and construct improvements - street replacement - utility replacement/repair - bond proceeds fund - bonds / bond sale - commissioner of employment and economic development - commissioner of management and budget - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI, sections 4 to 7 - U.S. Highway 2 - 5th Avenue Northeast