SF3377 Summary

• Establishes a Regional Exchange District in Duluth's medical district area with an 8-member advisory board to develop and oversee public infrastructure projects.

• Exempts construction materials, equipment, and supplies used in buildings and infrastructure projects within the district from sales tax for projects completed between June 30, 2018, and July 1, 2035.

• Authorizes the city to issue bonds without voter approval and provides special tax abatement and tax increment financing rules that waive normal restrictions to finance district infrastructure projects.

• Provides up to $184,000,000 in state appropriation support payments based on qualified construction expenditures reaching $360,000,000, with declining percentage rates as spending increases, capped at $15,000,000 annually until fiscal year 2054.

• Authorizes Duluth to impose an additional one-half percent sales and use tax (approved by voters in November 2017) to fund street, bridge, and district infrastructure improvements, with at least $20,000,000 required for improvements within the district.