MN SF1758

Rochester may extend its one-half of one percent sales and use tax with voter approval for four categories of projects: an economic vitality fund ($50-60 million), street reconstruction ($50 million), flood control and water quality ($40 million), and a Regional Community and Recreation Complex ($65 million).

Rochester Area Economic Development Incorporated receives $15 million from the economic vitality fund, with $5 million for grants and loans in Rochester and $10 million for the Rochester metropolitan statistical area, with authority to charge up to five percent service fees.

City may issue up to $215 million in bonds (or $205 million under an alternative authorization structure) to finance the projects, with bonds exempt from debt limitations and levy limits, and no separate voter election required for bond approval.

The extended tax expires at the earlier of 18 years after first imposition or when sufficient revenues are collected to pay project costs and bond issuance expenses, with any remaining funds placed in the city's general fund.

Tax extension requires voter approval at a general election and city compliance with Minnesota Statutes section 645.021 before taking effect.