SF405

Purpose

This bill is a capital investment measure that funds street reconstruction in the city of Fairmont and authorizes the sale of state bonds to pay for the project. It directs money to a specific local street improvement project and sets up how that funding will be borrowed and managed.

Main Provisions

• Subdivision 1 – Appropriation

  • An amount of $10,538,000 is appropriated from the bond proceeds fund to the commissioner of transportation.
  • The money is for a grant to the city of Fairmont to:
  • construct Kot Street from Charles Street to South Prairie Avenue, and
  • extend Fairlakes Avenue to connect Woodland Avenue with Lake Avenue.
  • The appropriation covers costs for right-of-way and easement acquisition, public utilities, and related street infrastructure.
  • The appropriation is exempt from Minnesota Statutes section 16A86 subdivision 4 (which relates to certain procurement/bidding requirements).

• Subdivision 2 – Bond Sale

  • The commissioner of management and budget must sell and issue state bonds up to $10,538,000 to fund the appropriation.
  • Bond issuance must follow the terms and effects described in Minnesota Statutes sections 16A631 to 16A675 and in the Minnesota Constitution article XI sections 4 to 7.

Significant Changes to Existing Law

• Creates a new, targeted appropriation from the bond proceeds fund to support a local street project in Fairmont.
• Establishes authority to issue up to $10,538,000 in state bonds for this project.
• Provides an exemption from a specific procurement rule (16A86, subdivision 4) for this appropriation, allowing different bid or procurement considerations for the project.

Fiscal/Implementation Notes (Implicit)

• The project funding is provided as a grant to the city of Fairmont, with state funds disbursed via the DOT.
• Implementation involves coordination between the DOT, the city, and state budget/bond authorities (MMB).

Relevant Terms - capital investment - appropriation - bond proceeds fund - grant - city of Fairmont - Kot Street - Fairlakes Avenue - Woodland Avenue - Lake Avenue - right-of-way - easement - public utilities - street infrastructure - exemption from 16A86 subdivision 4 - bond sale - commissioner of transportation - commissioner of management and budget - bonds - Minnesota Statutes 16A631 to 16A675 - Minnesota Constitution article XI sections 4 to 7