Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them.

(b) "City" means the city of Minneapolis.

(c) "County" means Hennepin County.

(d) "District" means the areas certified by the city under subdivision 2 for collection of
value capture taxes.

(e) "Project area" means the area including one city block on either side of a streetcar
new text begin or bus rapid transit new text endline designated by the city to serve the downtown and adjacent
neighborhoods of the city.

Subd. 2.

Authority to establish district.

(a) The governing body of the city may, by
resolution, establish a value capture district consisting of some or all of the taxable parcels
located within one or more of the following areas of the city, as described in the resolution:

(1) the area bounded by Nicollet Avenue on the west, 16th Street East on the south, First
Avenue South on the east, and 14th Street East on the north;

(2) the area bounded by Spruce Place on the west, 14th Street West on the south, LaSalle
Avenue on the east, and Grant Street West on the north;

(3) the area bounded by Nicollet Avenue or Mall on the west, Fifth Street South on the
south, Marquette Avenue on the east, and Fourth Street South on the north;

(4) the area bounded by First Avenue North on the west, Washington Avenue on the
south, Hennepin Avenue on the east, and Second Street North on the north; and

(5) the area bounded by Fifth Street North East on the west, Central Avenue North East
on the southeast, Sixth Street North East on the east, Hennepin Avenue East on the south,
and First Avenue North East on the north.

(b) The city may establish the district and the project area only after holding a public
hearing on its proposed creation after publishing notice of the hearing and the proposal at
least once not less than ten days nor more than 30 days before the date of the hearing.

Subd. 3.

Calculation of value capture district; administrative provisions.

(a) If the
city establishes a value capture district under subdivision 2, the city shall request the county
auditor to certify the district for calculation of the district's tax revenues.

(b) For purposes of calculating the tax revenues of the district, the county auditor shall
treat the district as if it were a request for certification of a tax increment financing district
under the provisions of Minnesota Statutes, section 469.177, subdivision 1, and shall calculate
the tax revenues of the district for each year of its duration under subdivision 5 as equaling
the amount of tax increment that would be computed by applying the provisions of Minnesota
Statutes, section 469.177, subdivisions 1, 2, and 3, to determine captured tax capacity and
multiplying by the current tax rate, excluding the state general tax rate. The city shall provide
the county auditor with the necessary information to certify the district, including the option
for calculating revenues derived from the areawide tax rate under Minnesota Statutes, chapter
473F.

(c) The county auditor shall pay to the city at the same times provided for settlement of
taxes and payment of tax increments the tax revenues of the district. The city must use the
tax revenues as provided under subdivision 4.

Subd. 4.

Permitted uses of district tax revenues.

(a) In addition to paying for reasonable
administrative costs of the district, the city may spend tax revenues of the district for property
acquisition, improvements, and equipment to be used for operations within the project area,
along with related costs, for:

(1) planning, design, and engineering services related to the construction of deleted text beginthedeleted text endnew text begin anew text end streetcar
new text begin or bus rapid transit new text endline;

(2) acquiring property for, constructing, and installing a streetcar new text beginor bus rapid transit
new text end line;

(3) acquiring and maintaining equipment and rolling stock and related facilities, such
as maintenance facilities, which need not be located in the project area;

(4) acquiring, constructing, or improving transit stations; and

(5) acquiring or improving public space, including the construction and installation of
improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
related to deleted text beginthedeleted text endnew text begin anew text end streetcar new text beginor bus rapid transit new text endline.

(b) The city may issue bonds or other obligations under Minnesota Statutes, chapter
475, without an election, to fund acquisition or improvement of property of a capital nature
authorized by this section, including any costs of issuance. The city may also issue bonds
or other obligations to refund those bonds or obligations. Payment of principal and interest
on the bonds or other obligations issued under this paragraph is a permitted use of the
district's tax revenues.

(c) Tax revenues of the district may not be used for the operation of deleted text beginthedeleted text endnew text begin anew text end streetcar new text beginor
bus rapid transit new text endline.

Subd. 5.

Duration of the district.

A district established under this section is limited to
the lesser of (1) 25 years of tax revenues, or (2) the time necessary to collect tax revenues
equal to the amount of the capital costs permitted under subdivision 4 or the amount needed
to pay or defease bonds or other obligations issued under subdivision 4, whichever is later.