1.1 A bill for an act 1.2 relating to economic development; establishing the Rondo Restorative Development 1.3 Authority for the operations of a land bridge in the Rondo neighborhood of St. 1.4 Paul; proposing coding for new law in Minnesota Statutes, chapter 116J. 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.6 Section 1. PURPOSE. 1.7 (a) The purpose of this act is to provide for the transfer of state real estate interests, 1.8including right-of-way air rights, construction, development, financing, community 1.9ownership, formation of and ownership of private development entities, transfer of 1.10developments, and long-term operations of the land bridge in the Rondo neighborhood of 1.11the city of St. Paul. 1.12 (b) The legislature finds and declares that the establishment of the authority and the 1.13expenditure of public money for this purpose are necessary and serve a public purpose and 1.14that property acquired by the authority for the construction and development of the land 1.15bridge is acquired for a public use or public purpose under Minnesota Statutes, chapter 117. 1.16 (c) The legislature further finds and declares that government assistance to facilitate the 1.17land bridge provides to the state, its citizens, and the citizens of the Rondo community 1.18highly valued intangible benefits that help address historic racial inequities that led to the 1.19destruction of the Rondo neighborhood by the routing of an interstate highway through the 1.20neighborhood in the 1950s, causing the loss of approximately 700 homes and 300 businesses 1.21with inadequate compensation and leading to significant loss of generational wealth. 1Section 1. 25-05055 as introduced03/24/25 REVISOR SS/EN SENATE STATE OF MINNESOTA S.F. No. 3219NINETY-FOURTH SESSION (SENATE AUTHORS: PAPPAS) OFFICIAL STATUSD-PGDATE Introduction and first reading04/02/2025 Referred to Jobs and Economic Development 2.1 Sec. 2. [116J.382] DEFINITIONS. 2.2 Subdivision 1.Definitions.As used in sections 116J.382 to 116J.384, the terms in this 2.3section have the meanings given. 2.4 Subd. 2.Authority."Authority" means the Rondo Restorative Development Authority. 2.5 Subd. 3.City."City" means the city of St. Paul. 2.6 Subd. 4.Land bridge."Land bridge" means one or more projects of the authority 2.7undertaken in accordance with this chapter within the Rondo community land bridge area. 2.8 Subd. 5.Rondo community land bridge area."Rondo community land bridge area" 2.9means the freeway right-of-way over marked Interstate Highway 94 in a portion of the 2.10segment from Lexington Avenue to Rice Street in the city. 2.11 Sec. 3. [116J.383] RONDO RESTORATIVE DEVELOPMENT AUTHORITY. 2.12 Subdivision 1.Establishment.(a) The Rondo Restorative Development Authority is 2.13established as a public body, corporate and politic, and political subdivision of the state. 2.14The authority is not a joint powers entity or an agency or instrumentality of the city. The 2.15powers conveyed to the authority apply within the Rondo community land bridge area. 2.16 (b) The authority is authorized to fund infrastructure improvements and acquire real 2.17property outside of the Rondo community land bridge area that serves the purposes of 2.18sections 116J.382 to 116J.384. 2.19 Subd. 2.Membership.(a) The authority shall be managed by a 17-member board of 2.20commissioners who may name a chair or co-chairs from among the commissioners. 2.21 (b) The commissioners shall be appointed to four-year terms, beginning January 1, 2026, 2.22as follows: 2.23 (1) five representatives appointed by ReConnect Rondo or its successor in interest; 2.24 (2) four representatives appointed by Rondo Roundtable or its successor in interest; 2.25 (3) two representatives appointed by the mayor of the city of St. Paul; 2.26 (4) one representative appointed by Saint Paul Public Schools; 2.27 (5) one representative appointed by the governor; 2.28 (6) one representative appointed by the Metropolitan Council from the Metropolitan 2.29Council district in which the Rondo community land bridge area is located; 2Sec. 3. 25-05055 as introduced03/24/25 REVISOR SS/EN 3.1 (7) one representative appointed by Ramsey County from the county commissioner 3.2district in which the Rondo community land bridge area is located; 3.3 (8) one representative appointed by the senate from the senate district in which the Rondo 3.4community land bridge area is located; and 3.5 (9) one representative appointed by the house of representatives from the house district 3.6in which the Rondo community land bridge area is located. 3.7Each commissioner serves until a successor is appointed and takes office. Commissioners 3.8of the authority are public officials under chapter 10A and subject to all applicable 3.9requirements of chapter 10A. 3.10 Subd. 3.Compensation.The authority may compensate its members, other than the 3.11chair, as provided in section 15.0575, subdivision 3. The chair shall receive, unless otherwise 3.12provided by other law, a salary in an amount fixed by the authority and shall be reimbursed 3.13for reasonable expenses to the same extent as a member. 3.14 Subd. 4.Chair.The chair presides at all meetings of the authority, if present, and 3.15performs all other assigned duties and functions. The authority may appoint from among 3.16its members a vice-chair to act for the chair during the temporary absence or disability of 3.17the chair and any other officers the authority determines are necessary or convenient. 3.18 Subd. 5.Removal.A commissioner may be removed by the respective appointing 3.19authority only for misfeasance, malfeasance, or nonfeasance in office upon written charges 3.20and after an opportunity to be heard in defense of the charges. 3.21 Subd. 6.Bylaws.The authority shall adopt bylaws to establish rules of procedure, the 3.22powers and duties of its officers, and other matters relating to the governance of the authority 3.23and the exercise of its powers. 3.24 Subd. 7.Audit.The legislative auditor shall audit the books and accounts of the authority 3.25once each year or as often as the legislative auditor's funds and personnel permit. The 3.26authority shall pay the total cost of the audit pursuant to section 3.9741. 3.27 Subd. 8.Executive director; employees.The authority may appoint an executive director 3.28to serve as the chief executive officer of the authority. The executive director serves at the 3.29pleasure of the authority and receives compensation as determined by the authority. The 3.30executive director is responsible for the operation, management, and promotion of activities 3.31of the authority, as prescribed by the authority. The executive director has the powers 3.32necessary to perform the duties required and powers granted by the authority, but does not 3.33have authority to incur liability or make expenditures on behalf of the authority without 3Sec. 3. 25-05055 as introduced03/24/25 REVISOR SS/EN 4.1general or specific directions by the authority, as shown by the bylaws or minutes of a 4.2meeting of the authority. The executive director is responsible for the hiring, supervision, 4.3and dismissal of all other employees of the authority. The executive director is a public 4.4official under chapter 10A. 4.5 Subd. 9.Quorum; approvals.Any nine members shall constitute a quorum to conduct 4.6business, and action may be taken upon the vote of a majority of members present at a 4.7meeting duly called and held. 4.8 Sec. 4. [116J.384] POWERS; DUTIES OF THE AUTHORITY. 4.9 Subdivision 1.Actions.The authority may sue and be sued. The authority is a public 4.10body, and the Rondo community land bridge and related improvements outside the Rondo 4.11community land bridge area are public improvements under chapter 562. The authority is 4.12a municipality under chapter 466. 4.13 Subd. 2.Acquisition of property.The authority may acquire from any public or private 4.14entity by lease, purchase, gift, or devise all necessary right, title, and interest in and to real 4.15property, air rights, and personal property deemed necessary to the purposes contemplated 4.16by this chapter. The authority may acquire other real property, air rights, personal property, 4.17and other right, title, and interest in property, except property of the state. Any lease of air 4.18rights for the Rondo community land bridge from the state or a political subdivision shall 4.19be for a minimum of 99 years, with renewal options, unless a shorter period is agreed to by 4.20the authority. 4.21 Subd. 3.Disposition of property.The authority may sell, lease, or otherwise dispose 4.22of any real or personal property acquired by the authority that is no longer required for 4.23accomplishment of the authority's purposes. The property may be sold in accordance with 4.24the procedures provided by section 469.065, subdivisions 1 to 5, to the extent the authority 4.25deems it to be practical and consistent with this chapter. 4.26 Subd. 4.Data practices; open meetings.The authority is subject to chapters 13 and 4.2713D. 4.28 Subd. 5.Land bridge operation.The authority may develop, construct, equip, improve, 4.29own, operate, manage, maintain, finance, and control the land bridge or may delegate such 4.30duties through one or more agreements, including a statutory trust under subdivision 6, 4.31paragraph (b), subject to the rights and obligations transferred to and assumed by the 4.32authority, other user, third-party manager, or program manager, under the terms of a lease, 4.33use agreement, or development agreement. The authority may enter into agreements with 4Sec. 4. 25-05055 as introduced03/24/25 REVISOR SS/EN 5.1the state or other governmental units regarding respective ownership and operation of any 5.2portion of the land bridge. 5.3 Subd. 6.Land bridge development authority.(a) In addition to the other powers 5.4granted in this section and other law, the authority, for purposes of fostering community 5.5development, may spend any money made available to the agency by direct appropriation 5.6to acquire real or personal property or interests therein by gift, purchase, or lease and may 5.7convey by lease, sale, sublease, assignment, or other means of conveyance or commitment 5.8any or all property interests owned or administered by the authority. 5.9 (b) In furtherance of development of the land bridge, the authority may establish and 5.10participate in charitable foundations, nonprofit limited liability companies, statutory trusts, 5.11and nonprofit corporations, including a corporation under section 317A.011, subdivision 5.126. 5.13 Subd. 7.Design, construction, and maintenance.The authority may contract for 5.14materials, supplies, and equipment in accordance with section 471.345, except that the 5.15authority may employ or contract with persons, firms, or corporations to perform one or 5.16more or all of the functions of architect, engineer, construction manager, or program manager, 5.17or other government entity with respect to all or any part of the design, construction, 5.18financing, operation, maintenance, and use of the land bridge under the traditional separate 5.19design and build, integrated design-build, construction manager at risk, structures, or a 5.20combination thereof. The construction of a land bridge is a "project" as that term is defined 5.21in section 177.42, subdivision 2, and is subject to the prevailing wage law under section 5.22177.41 to 177.43. 5.23 Subd. 8.Employees; contracts for services.The authority may employ persons and 5.24contract for services necessary to carry out its functions, including the utilization of 5.25employees and consultants retained by other governmental entities. 5.26 Subd. 9.Gifts, grants, and loans.The authority may accept monetary contributions, 5.27property, services, and grants or loans of money or other property from the United States, 5.28the state, any subdivision of the state, any agency of those entities, or any person for any 5.29of its purposes and may enter into any agreement required in connection with the gifts, 5.30grants, or loans. The authority shall hold, use, and dispose of the money, property, or services 5.31according to the terms of the monetary contributions, grant, loan, or agreement. 5.32 Subd. 10.Exemption from Metropolitan Council review; Business Subsidy Act.The 5.33acquisition and betterment of a land bridge by the authority must be conducted pursuant to 5.34this chapter and are not subject to sections 473.165 and 473.173. Section 116J.994 does not 5Sec. 4. 25-05055 as introduced03/24/25 REVISOR SS/EN 6.1apply to any transactions of the authority or other governmental entity related to the land 6.2bridge or to any tenant or other users of the land bridge. 6.3 Subd. 11.Incidental powers.In addition to the powers expressly granted in sections 6.4116J.382 to 116J.384, the authority has all powers necessary or incidental thereto. 6Sec. 4. 25-05055 as introduced03/24/25 REVISOR SS/EN