HF4589

Purpose

• Provide funding to build and operate a regional housing and senior nutrition services facility in Hibbing, Minnesota. The facility is intended to serve low-income and disadvantaged individuals and seniors in the northeast region of the state.

Key Provisions

• Subdivision 1 – Appropriation:
  • Appropriates 7,000,000 from the bond proceeds fund as a grant to the city of Hibbing.
  • The grant is for acquiring property and for predesign, design, construction, renovation, furnishing, and equipping a regional housing and senior nutrition services facility.
  • The facility will serve low-income and disadvantaged individuals and seniors in the northeast region of Minnesota.
  • The city may enter into a lease or management agreement for the programming in the facility, under Minnesota Statutes section 16A.695.
• Subdivision 2 – Bond Sale:
  • Requires the commissioner of management and budget to sell and issue bonds of the state up to 7,000,000 to fund the appropriation.
  • Bond issuance must follow Minnesota Statutes sections 16A.631 to 16A.675 and the Minnesota Constitution, Article XI, sections 4 to 7.

Financing and Implementation

• The funding comes from the bond proceeds fund and is dedicated to both property acquisition and the full development lifecycle (predesign, design, construction, renovation, furnishing, and equipping) of the regional facility.
• The state’s debt authorities will be used to finance the project through bonds authorized up to 7,000,000.

Implications and Policy Context

• Establishes a new regional facility aimed at expanding housing and senior nutrition services for targeted populations in the northeast region.
• Allows the city of Hibbing to manage or lease the programming, leveraging existing statutory processes for facility operations.
• Creates a defined state capital investment and debt-issuance framework for financing the project.

Changes to Existing Law

• Introduces a new appropriation and bond authority specifically for Hibbing to develop a regional housing and senior nutrition services facility.
• Authorizes a lease or management arrangement for programming, subject to existing statutes (16A.695).
• Establishes the debt-issuance requirements under standard state bond laws and constitutional provisions (16A.631–16A.675; Article XI).

Relevant Terms - Hibbing - Hibbing Regional Housing and Senior Nutrition Services Facility - low-income - disadvantaged - seniors - northeast region of Minnesota - grant - acquire property - predesign - design - construct - renovate - furnish - equip - lease - management agreement - Minnesota Statutes section 16A.695 - bond proceeds fund - bonds - debt financing - Minnesota Management and Budget - 16A.631 to 16A.675 - Minnesota Constitution Article XI