HF3710 Summary

• Establishes a regional exchange district in Duluth's medical district area with a Regional Exchange District Advisory Board (REDAB) consisting of 8 members including the mayor, city council member, county board member, Port Authority member, and three medical business entity representatives.

• Exempts sales tax on construction materials, supplies, and equipment used in building construction and infrastructure improvements within the district for sales and purchases between July 1, 2018, and July 1, 2035.

• Authorizes the city to issue general obligation and revenue bonds without voter approval or debt limits to finance public infrastructure projects, with projects requiring public hearing approval before funding.

• Provides state appropriation support payments to the city based on qualified construction expenditures, with payments ranging from 0.02 to 0.01 of expenditures depending on spending levels, capped at $15 million annually and $184 million total through fiscal year 2054.

• Extends the city's existing 0.5% sales tax and hotel tax for 10 additional years if a development plan is adopted, with revenues dedicated to regional exchange district public infrastructure projects.