HF1216 Summary

• Establishes the Duluth Regional Exchange District, a geographic area largely within Duluth's medical district, to facilitate repurposing of vacant land, private investment, and development by anchor institutions like hospitals and universities.

• Authorizes the state to issue up to $164,000,000 in appropriation bonds to finance public infrastructure projects within the district, with state debt service payments of up to $13,470,000 annually through fiscal year 2055.

• Creates a 9-member Regional Exchange District Advisory Board to oversee development planning and project approval, with representation from the city, medical institutions, downtown council, building trades, and gubernatorial appointees.

• Provides sales tax exemptions for construction materials and equipment used in public infrastructure projects within the district and allows Duluth to impose an additional local sales and use tax for district improvements.

• Modifies tax abatement and tax increment financing rules to allow the city and county greater flexibility in financing public infrastructure, and establishes a system where state payments to the city are based on certified private investment expenditures of $75,000,000 or more.