Minnesota Legislature
HF 1175
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to state finance; modifying aircraft facilities state financing to allow
flexibility in obtaining a new lessee for the facility; amending Minnesota
Statutes 2006, sections 116R.02, subdivision 5; 116R.03; 116R.12, by adding a
subdivision; repealing Minnesota Statutes 2006, sections 116R.02, subdivisions
3, 6, 7, 9; 116R.16.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 116R.02, subdivision 5, is amended to read:
Subd. 5.
Use of proceeds; aircraft maintenance facility.
The proceeds of the
bonds issued in a principal amount not to exceed $250,000,000 may be used to finance
the costs related to the planning, construction, improvement, or equipping of a heavy
maintenance facility for aircraft and facilities subordinate and related to the facility to be
located at the Duluth International Airport and any costs of issuance, reserves, credit
enhancement, or an initial period of interest payments related to the bonds or the facility.
The bond proceeds are appropriated to the commissioner for the purposes specified in this
subdivision. deleted text begin The facility may be owned by the Metropolitan Airports Commission and
leased for the benefit of one or more airline companies for use as a heavy maintenance
base.deleted text end With the approval of the commissioner, the owner of the facility may place a
mortgage or security interest lien on the facility or any interest in or part of the facility.
The mortgage is exempt from the mortgage registry tax imposed under chapter 287. In
the event of a default under the loan, lease agreement, or other revenue agreement, the
facility, or any part of the facility, may be leased or sold to another person for any lawful
purpose, subject to the approval of the commissioner. The approval of the commissioner
is not required if the bond trustee has taken control of the facility as a result of a default.
The ownership of the facility by the owner may create no liability of the owner for
payment of the debt service on the bonds if so determined by the commissioner. The
owner may require as a condition of entering into the lease of the facility that the lessee or
other party pay all costs, expenses, or any other obligations of ownership of the facility.
No revenues derived from the lease of the project may be used other than for a
purpose related to the project, including its operation, administration, maintenance,
improvement, or financing.
Sec. 2.
Minnesota Statutes 2006, section 116R.03, is amended to read:
116R.03 GENERAL POWERS.
For the purpose of exercising the specific powers authorized under sections 116R.01
to 116R.16 and effectuating the other purposes of sections 116R.01 to 116R.16, the
commissioner may:
(1) acquire, hold, pledge, assign, new text begin lease, new text end or dispose of real or personal property or
any interest in property, including a mortgage or security interest in a facility described in
section 116R.02, subdivision 5 or 6;
(2) enter into agreements, contracts, or other transactions with any federal or state
agency, any person and any domestic or foreign partnership, corporation, association, or
organization, including contracts or agreements for administration and implementation of
all or part of sections 116R.01 to 116R.16;
(3) acquire real property, or an interest therein, by purchase or foreclosure, where
the acquisition is necessary or appropriate;
(4) enter into agreements with lenders, borrowers, or the issuers of securities for the
purpose of regulating the development and management of any facility financed in whole
or in part by the proceeds of bonds or loans;
(5) enter into agreements with other appropriate federal, state, or local governmental
units; deleted text begin and
deleted text end
(6) contract with, use, or employ any federal, state, regional, or local public or
private agency or organization, legal counsel, financial advisors, investment bankers or
others, upon terms the commissioner considers necessary or desirable, to assist in the
exercise of any of the powers authorized under sections 116R.01 to 116R.16 and to carry
out the objectives of sections 116R.01 to 116R.16 and may pay for the services from bond
proceeds or otherwise available department moneydeleted text begin .deleted text end new text begin ; andnew text end
new text begin
(7) in the event of a default under the loan, lease agreement, or other revenue
agreement, the facility, or any part of the facility, may be leased or sold to another person
for any lawful purpose, subject to the approval of the commissioner. The approval of the
commissioner is not required if the bond trustee has taken control of the facility as a
result of a default.
new text end
Sec. 3.
Minnesota Statutes 2006, section 116R.12, is amended by adding a subdivision
to read:
new text begin Subd. 4. new text end
new text begin Approval. new text end
new text begin
The approval of the commissioner is not required if the bond
trustee has taken control of the facility as a result of a default.
new text end
Sec. 4. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2006, sections 116R.02, subdivisions 3, 6, 7, and 9; and 116R.16,
new text end
new text begin
are repealed.
new text end