H.F. No. 2480, as introduced - 84th Legislative Session (2005-2006)
Posted on Apr 25, 2005
1.1 A bill for an act
1.2 relating to state and local government operations;
1.3 providing a process for developing a new baseball
1.4 stadium; establishing a metropolitan stadium
1.5 authority; providing for the membership and powers of
1.6 the authority; authorizing the Metropolitan Council to
1.7 issue bonds; providing powers of the host communities;
1.8 proposing coding for new law in Minnesota Statutes,
1.9 chapter 473; repealing Minnesota Statutes 2004,
1.10 sections 473I.01; 473I.02; 473I.03; 473I.04; 473I.05;
1.11 473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 473I.11;
1.12 473I.12; 473I.13.
1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.14 Section 1. [473.75] [PROCESS FOR NEW STADIUMS.]
1.15 Subdivision 1. [PURPOSE.] The purpose of this act is to
1.16 provide a process to result in the location, construction,
1.17 financing, and long-term use of a new stadium for the use of the
1.18 Minnesota Twins.
1.19 Subd. 2. [DEFINITIONS.] (a) As used in this act, the
1.20 following terms have the meanings given in this subdivision.
1.21 (b) "Host community" means a city or a county or any joint
1.22 powers entity comprised of one or more cities or counties, or
1.23 both, which is organized for the purpose of providing financial
1.24 or other support for one or more stadiums.
1.25 (c) "Public infrastructure" means all property and
1.26 facilities determined by the host community to facilitate the
1.27 use of the stadium, including, but not limited to, property and
1.28 facilities for parking, pedestrian needs, transit, skyways,
1.29 lighting, landscaping, utilities, streets, and land acquired and
2.1 prepared for private redevelopment in a manner related to the
2.2 use of the stadium.
2.3 Subd. 3. [LOCATION.] (a) The stadium must be located in
2.4 the metropolitan area as defined in section 473.121, subdivision
2.5 2.
2.6 (b) A city and county may cooperate to host the stadium
2.7 under a joint powers agreement under section 471.59 or as
2.8 otherwise provided by law.
2.9 Subd. 4. [MINNESOTA STADIUM AUTHORITY DUTIES.] The
2.10 Minnesota Stadium Authority is established to choose sites for
2.11 the stadium from proposals submitted by the franchise owner and
2.12 the proposed host communities. The authority may consider or
2.13 propose other arrangements for sites and terms if the authority
2.14 is not satisfied with proposals submitted by the franchise owner
2.15 and the proposed host communities. The authority's
2.16 determination of sites for the stadium is final. The authority
2.17 may enter into contracts for and take all actions necessary or
2.18 desirable to select or acquire a site, design, construct,
2.19 furnish, equip, and provide for the operation, maintenance, and
2.20 improvement of stadium facilities.
2.21 Sec. 2. [473.751] [MINNESOTA STADIUM AUTHORITY
2.22 ORGANIZATION.]
2.23 Subdivision 1. [COMPOSITION.] (a) The Minnesota Stadium
2.24 Authority consists of:
2.25 (1) six members, appointed by the governor, four from the
2.26 following Metropolitan Council districts established by section
2.27 473.123: one from districts 1, 2, 3, and 4; one from districts
2.28 5, 6, 7, and 8; one from districts 9, 10, 11, and 12; one from
2.29 districts 13, 14, 15, and 16; one from northern Greater
2.30 Minnesota; and one from southern Greater Minnesota;
2.31 (2) one member appointed by and serving at the pleasure of
2.32 each of the following: the speaker of the house of
2.33 representatives; the majority leader of the senate; and the
2.34 minority leaders of the house of representatives and the senate;
2.35 and
2.36 (3) a chair appointed by the governor.
3.1 (b) All members appointed under paragraph (a), clauses (1)
3.2 and (3), including the chair, serve at the pleasure of the
3.3 governor.
3.4 (c) All members must be appointed no later than 30 days
3.5 after the enactment of this act.
3.6 Subd. 2. [CHAIR.] The chair shall preside at all meetings
3.7 of the commission, if present, and shall perform all other
3.8 assigned duties and functions. The commission may appoint from
3.9 among its members a vice-chair to act for the chair during the
3.10 temporary absence or disability of the chair.
3.11 Subd. 3. [SUCCESSOR AUTHORITY.] On completion of the
3.12 construction of the stadium, the authority must recommend to the
3.13 legislature and the governor a reconstituted authority or
3.14 authorities to oversee the ongoing maintenance, operation, and
3.15 improvements of the stadium. Public entities that provide
3.16 substantial financial support to the stadium construction and
3.17 operation must receive appropriate representation on any
3.18 reconstituted authority.
3.19 Sec. 3. [473.752] [POWERS OF AUTHORITY.]
3.20 Subdivision 1. [GENERAL.] The authority has all powers
3.21 necessary or convenient to discharge the duties imposed by law,
3.22 including those specified in this section.
3.23 Subd. 2. [ACTIONS.] The authority may sue and be sued, and
3.24 is a public body within the meaning of chapter 562.
3.25 Subd. 3. [ACQUISITION OF PROPERTY.] The authority may
3.26 acquire by lease, purchase, gift, or devise all necessary right,
3.27 title, and interest in and to real or personal property deemed
3.28 necessary to the purposes contemplated by this act.
3.29 Subd. 4. [EXEMPTION OF PROPERTY.] Any real or personal
3.30 property acquired, owned, leased, controlled, used, or occupied
3.31 by the authority for any of the purposes of this act is declared
3.32 to be acquired, owned, leased, controlled, used, and occupied
3.33 for public, governmental, and municipal purposes, and is exempt
3.34 from ad valorem taxation by the state or any political
3.35 subdivision of the state. The properties are subject to special
3.36 assessments levied by a political subdivision for a local
4.1 improvement in amounts proportionate to and not exceeding the
4.2 special benefit received by the properties from the
4.3 improvement. No use of any of the properties in any manner
4.4 different from their use under this act at the time when the
4.5 assessment is levied may be considered in determining the
4.6 special benefit received by the properties. All assessments are
4.7 subject to final confirmation by the Metropolitan Council, whose
4.8 determination of the benefits is conclusive upon the political
4.9 subdivision levying the assessment. Notwithstanding section
4.10 272.01, subdivision 2, or 273.19, real or personal property
4.11 leased by the authority to another person for uses related to
4.12 the purposes of this act, including the operation of the stadium
4.13 facilities, is exempt from taxation regardless of the length of
4.14 the lease. Separate real and personal property used by a team
4.15 for training or corporate offices are not exempt.
4.16 Subd. 5. [FACILITY OPERATION.] The authority may equip,
4.17 improve, operate, manage, maintain, and control the sports
4.18 facilities constructed, remodeled, or acquired under this act.
4.19 Subd. 6. [DISPOSITION OF PROPERTY.] The authority may
4.20 sell, lease, or otherwise dispose of any real or personal
4.21 property acquired by it which is no longer required for
4.22 accomplishment of its purposes. The property must be sold in
4.23 accordance with the procedures provided by section 469.065,
4.24 insofar as practical and consistent with this act.
4.25 Subd. 7. [EMPLOYEES; CONTRACTS FOR SERVICES.] (a) The
4.26 authority may employ persons and contract for services necessary
4.27 to carry out its functions.
4.28 (b) The authority may negotiate an agreement with the
4.29 Metropolitan Sports Facilities Commission that would enable
4.30 employees of the commission to provide assistance to the
4.31 authority to enable it to accomplish the purposes of this act.
4.32 The commission must cooperate to the extent feasible.
4.33 (c) The authority may employ on such terms as it deems
4.34 advisable persons or firms to provide traffic officers to direct
4.35 traffic on property under the control of the authority and on
4.36 the city streets in the general area of the property controlled
5.1 by the authority. The traffic officers are not peace officers
5.2 and do not have authority to make arrests for violations of
5.3 traffic rules.
5.4 Subd. 8. [GIFTS AND GRANTS.] The authority may accept
5.5 gifts of money, property, or services, may apply for and accept
5.6 grants or loans of money or other property from the United
5.7 States, the state, any subdivision of the state, or any person
5.8 for any of its purposes, may enter into any agreement required
5.9 in connection therewith, and may hold, use, and dispose of such
5.10 money, property, or services according to the terms of the gift,
5.11 grant, loan, or agreement. In evaluating proposed gifts,
5.12 grants, loans, and agreements required in connection therewith,
5.13 the authority shall examine the possible short-range and
5.14 long-range impact on authority revenues and authority operating
5.15 expenditures.
5.16 Subd. 9. [RESEARCH.] The authority may conduct research
5.17 studies and programs, collect and analyze data, prepare reports,
5.18 maps, charts, and tables, and conduct all necessary hearings and
5.19 investigations in connection with its functions.
5.20 Subd. 10. [USE AGREEMENTS.] The authority may enter into
5.21 agreements and may fix, alter, charge, and collect rentals,
5.22 fees, and charges to all persons for the use, occupation, and
5.23 availability of part or all of any premises, property, or
5.24 facilities under its ownership, operation, or control for
5.25 purposes that will provide athletic, educational, cultural,
5.26 commercial or other entertainment, instruction, or activity for
5.27 the citizens of the metropolitan area and visitors. Any such
5.28 use agreement may provide that the other contracting party has
5.29 exclusive use of the premises at the times agreed upon.
5.30 Subd. 11. [INSURANCE.] The authority may require any
5.31 employee to obtain and file with it an individual bond or
5.32 fidelity insurance policy. It may procure insurance in the
5.33 amounts it considers necessary against liability of the
5.34 authority or its officers and employees for personal injury or
5.35 death and property damage or destruction, with the force and
5.36 effect stated in chapter 466, and against risks of damage to or
6.1 destruction of any of its facilities, equipment, or other
6.2 property.
6.3 Subd. 12. [CREATING A CONDOMINIUM.] The authority may, by
6.4 itself or together with any other entity, as to real or personal
6.5 property comprising or appurtenant or ancillary to the sports
6.6 facilities operated under this act or other law, act as a
6.7 declarant and establish a condominium or leasehold condominium
6.8 under chapter 515A, or a common interest community or leasehold
6.9 common interest community under chapter 515B, and may grant,
6.10 establish, create, or join in other or related easements,
6.11 agreements, and similar benefits and burdens that the authority
6.12 may consider necessary or appropriate, and exercise any and all
6.13 rights and privileges and assume obligations under them as a
6.14 declarant, unit owner or otherwise, insofar as practical and
6.15 consistent with this act. The authority may be a member of an
6.16 association and the chair, any commissioners and any officers
6.17 and employees of the authority may serve on the board of an
6.18 association under chapter 515A or 515B or other law.
6.19 Subd. 13. [EXEMPTION FROM COUNCIL REVIEW.] The acquisition
6.20 and betterment of sports facilities by the authority must be
6.21 conducted pursuant to this act and must not be affected by the
6.22 provisions of sections 473.165 and 473.173.
6.23 Sec. 4. [473.753] [CRITERIA AND CONDITIONS.]
6.24 Subdivision 1. [BINDING AND ENFORCEABLE.] In entering into
6.25 contracts and making decisions necessary to complete the stadium
6.26 process, the authority must follow and enforce the criteria and
6.27 conditions in this section.
6.28 Subd. 2. [DEVELOPMENT AGREEMENT.] Following selection of a
6.29 site, the authority shall negotiate with the host community and
6.30 the team that will occupy the stadium concerning the terms and
6.31 conditions under which the host community and the team will make
6.32 contributions of funds, future revenues, interests in property
6.33 for the site and public infrastructure, the method of completing
6.34 design and construction, which may include the design-build
6.35 process, the terms of the use agreement with the team, the
6.36 integration of the stadium and related infrastructure with
7.1 surrounding development, and other matters relating to the
7.2 stadium, its operation, maintenance, and financing. Prior to
7.3 execution, the agreement must be reviewed and approved by the
7.4 commissioner of finance and the Metropolitan Council as being
7.5 consistent with the requirements of this act. Following
7.6 execution of the agreement, the authority shall request that the
7.7 Metropolitan Council issue bonds under section 473.754 and shall
7.8 proceed to carry out the terms of the agreement and its
7.9 obligations under this act. In the event the authority does not
7.10 reach agreement with the host community and team or if for
7.11 environmental or other reasons the chosen site is determined by
7.12 the authority to be unsuitable, the authority may select another
7.13 site and commence the process again. The authority shall hold
7.14 public hearings with respect to site selection and the agreement
7.15 with the host community and team.
7.16 Subd. 3. [TOTAL PUBLIC INVESTMENT TOWARD PROJECT
7.17 COSTS.] The authority must set a maximum total public investment
7.18 toward project costs for each stadium, including the host
7.19 community's revenue contributions.
7.20 Subd. 4. [TEAM AND FAN CONTRIBUTIONS.] (a) The authority
7.21 must set the amount of anticipated contributions from the team
7.22 towards the total cost for the stadium. Team contributions may
7.23 include, but are not limited to, initial cash contributions,
7.24 guaranteed annual payments, assignments of naming rights and
7.25 permanent seat licenses, and payments of operating and
7.26 maintenance expenses for the team's stadium. The authority may
7.27 attempt to structure the team's investment to maximize benefits
7.28 both to the public and to the team. In addition to any other
7.29 team contribution, the team must assume and pay when due all
7.30 cost overruns for its stadium.
7.31 (b) The authority may negotiate to receive, for transfer to
7.32 the Metropolitan Council, fan contributions imposed, assessed,
7.33 and collected by the authority and the host communities for
7.34 deposit in the stadiums' debt service account. Fan
7.35 contributions may include ticket taxes, parking surcharges,
7.36 personal seat licenses, private placement bonds, sports cable
8.1 television surcharges, commemorative stadium stock or bricks,
8.2 team license plates, and similar items.
8.3 (c) The team and fan contributions must be deposited in the
8.4 state treasury and are appropriated to the Metropolitan Council
8.5 for payment of principal and interest on the revenue bonds
8.6 issued under this act and chapter 475.
8.7 Subd. 5. [SITE SELECTION CRITERIA.] In selecting the site
8.8 for the stadium, the authority must consider factors including:
8.9 (1) tax and other revenues that the host community will
8.10 make available to finance the stadium; and
8.11 (2) the cost of necessary public infrastructure
8.12 improvements related to transportation and other services.
8.13 The authority may consider colocation of the stadium constructed
8.14 under this act with existing sports facilities.
8.15 Subd. 6. [ARCHITECT SELECTION.] The authority must
8.16 consider retaining an internationally known architect to design
8.17 the stadium to be constructed under this act, providing that it
8.18 is feasible under the expenditure limits imposed in this act.
8.19 Subd. 7. [SUSTAINABLE BUILDING GUIDELINES.] The
8.20 construction process used for a stadium constructed under this
8.21 act must, to the extent feasible, follow sustainable building
8.22 guidelines established under section 16B.325.
8.23 Subd. 8. [RESERVE FOR CAPITAL IMPROVEMENTS.] The authority
8.24 must require that a reserve fund for capital improvements to the
8.25 stadium be set up and must negotiate with the team and the host
8.26 community's government in order to determine the amount, manner,
8.27 and terms of the team's and the host community's contributions
8.28 to the fund.
8.29 Subd. 9. [USE AGREEMENTS.] The authority must negotiate a
8.30 long-term use agreement with the team for its use of the
8.31 stadium. The team must schedule and play all regular season and
8.32 postseason home games at the stadium. Preseason games may also
8.33 be scheduled and played at the stadium. The use agreements must
8.34 be for a term of at least 30 years. The use agreements must
8.35 include terms for default, termination, and breach of the
8.36 agreement. The use agreements must require specific performance
9.1 and must not include escape clauses or buyout provisions.
9.2 Subd. 10. [GUARANTEE OF PAYMENT OF ALL OBLIGATIONS.] The
9.3 authority must ensure that a guarantee of payment of each
9.4 obligation due under the use agreement is in place at the time
9.5 of execution of the obligation in a form satisfactory to the
9.6 authority. The guarantee may be in the form of a letter of
9.7 credit, personal guarantees, or other surety as determined by
9.8 the authority.
9.9 Subd. 11. [LEAGUE AGREEMENT.] The authority must execute
9.10 an agreement with professional major league baseball that
9.11 guarantees the continuance of the franchise in the metropolitan
9.12 area for the period of the agreements referred to in subdivision
9.13 8.
9.14 Subd. 12. [ENFORCEABLE FINANCIAL COMMITMENTS.] The
9.15 authority must determine before construction begins that all
9.16 public and private funding sources for construction and
9.17 operation of the stadium are committed in writing and
9.18 enforceable. The committed funds must be adequate to site,
9.19 design, construct, furnish, equip, and service the facilities'
9.20 debt, as well as to pay for the ongoing operation and
9.21 maintenance of the baseball facilities.
9.22 Subd. 13. [COMMUNITY OWNERSHIP OPTION.] (a) The lease or
9.23 use agreement for the baseball facility must provide that if the
9.24 owner of the baseball franchise seeks to sell the franchise
9.25 during the term of the agreement, the franchise must first be
9.26 offered for sale to the entity formed in compliance with
9.27 paragraph (b). The offer to sell the franchise to this entity
9.28 must remain open for at least one year. The amounts that would
9.29 otherwise be returned to the public under subdivision 12 may be
9.30 used by an entity created under paragraph (b) to offset the cost
9.31 of acquiring the baseball franchise.
9.32 (b) The governor and the Metropolitan Sports Facilities
9.33 Commission must attempt to facilitate the formation of a
9.34 corporation to acquire the baseball franchise and to identify an
9.35 individual private managing owner of the corporation. The
9.36 corporation formed to acquire the franchise shall have a capital
10.1 structure in compliance with all of the following provisions:
10.2 (1) there may be two classes of capital stock: common
10.3 stock and preferred stock. Both classes of stock must give
10.4 holders voting rights with respect to any relocation or
10.5 contraction of the franchise;
10.6 (2) the private managing owner must own no less than 25
10.7 percent and no more than 35 percent of the common stock. For
10.8 purposes of this restriction, shares of common stock owned by
10.9 the private managing owner include shares of common stock owned
10.10 by any related taxpayer as defined in section 1313(c) of the
10.11 Internal Revenue Code of 1986, as amended. Other than the
10.12 rights of all other holders of common stock and preferred stock
10.13 with respect to relocation of the franchise or voluntary
10.14 contraction, the private managing owner must control all aspects
10.15 of the operation of the corporation;
10.16 (3) other than the private managing owner, no individual or
10.17 entity may own more than five percent of the common stock of the
10.18 corporation;
10.19 (4) at least 50 percent of the ownership of the common
10.20 stock must be sold to members of the general public in a general
10.21 solicitation and no person or entity must own more than one
10.22 percent of common stock of the corporation; and
10.23 (5) the articles of incorporation, bylaws, and other
10.24 governing documents must provide that the franchise may not move
10.25 outside of the state or agree to voluntary contraction without
10.26 approval of at least 75 percent of the shares of common stock
10.27 and at least 75 percent of the shares of preferred stock.
10.28 Notwithstanding any law to the contrary, these 75 percent
10.29 approval requirements shall not be amended by the shareholders
10.30 or by any other means.
10.31 (c) Except as specifically provided by this act, no state
10.32 agency may spend money from any state fund for the purpose of
10.33 generating revenue under this subdivision or for the purpose of
10.34 providing operating support or defraying operating losses of a
10.35 professional baseball franchise.
10.36 Subd. 14. [ENVIRONMENTAL REQUIREMENTS.] The authority must
11.1 ensure compliance with all environmental requirements imposed by
11.2 regulatory agencies for the stadium, site, and structure.
11.3 Subd. 15. [PUBLIC INFRASTRUCTURE.] The authority must
11.4 ensure that all necessary and reasonably appropriate public
11.5 infrastructure is financed and constructed by the time of
11.6 completion of the baseball facilities.
11.7 Subd. 16. [PRICE, COMPLETION DATE, PERFORMANCE, PAYMENT
11.8 BONDS.] Before construction begins for the stadium, the
11.9 authority must have executed contracts certifying construction
11.10 price and completion date that include performance and payment
11.11 bonds that cover any costs over the certified price for the
11.12 facility. All contracts related to construction of the stadium
11.13 must require payment of the prevailing wage rate as defined in
11.14 section 177.42 to all construction workers.
11.15 Subd. 17. [PUBLIC SHARE OF VALUE ADDED BY STADIUM UPON
11.16 SALE.] The authority must include a provision in the use
11.17 agreement that provides that if the franchise is sold during the
11.18 period beginning January 1, 2006, and ending 20 years after the
11.19 date the stadium is initially occupied by the team, a portion of
11.20 the sale price must be paid to the Metropolitan Council for
11.21 deposit in a reserve fund for early retirement of debt related
11.22 to the stadium. If the team is sold at any time between June 1,
11.23 2006, and the date that is five years after the team's initial
11.24 occupancy of the stadium, the amount to be paid under this
11.25 subdivision is 15 percent of the total value of all compensation
11.26 paid to purchase the team. For each 12-month period after that
11.27 date before the team is sold, the 15-percent factor is reduced
11.28 by one percentage point.
11.29 Subd. 18. [FINANCE COMMISSIONER APPROVAL.] The
11.30 commissioner of finance must approve the financing documents and
11.31 the use agreement before they are final.
11.32 Subd. 19. [USE FOR AMATEUR SPORTS.] The authority must
11.33 ensure that the use agreements for the stadium provide for a
11.34 reasonable amount of use for amateur sports.
11.35 Subd. 20. [AFFORDABLE ACCESS.] The authority must ensure
11.36 that the use agreements provide for affordable access to the
12.1 professional sporting events held in the facilities.
12.2 Subd. 21. [USE OF BOND PROCEEDS.] The authority must
12.3 ensure and confirm to the Metropolitan Council that all bond
12.4 proceeds from bonds authorized by this act must be used to site,
12.5 design, construct, or furnish the facilities.
12.6 Subd. 22. [NO STRIKES.] The authority must negotiate an
12.7 agreement to prevent strikes that would halt, delay, or impede
12.8 construction of the baseball facilities.
12.9 Sec. 5. [473.754] [SECURITY.]
12.10 Subdivision 1. [BONDS.] The Metropolitan Council, on
12.11 behalf of the Minnesota Stadium Authority, may by resolution
12.12 authorize the sale and issuance of its bonds for any or all of
12.13 the following purposes:
12.14 (1) to provide funds to predesign, design, construct,
12.15 furnish, equip, and otherwise better the sports facility owned
12.16 or to be owned by the authority pursuant to this act;
12.17 (2) to refund bonds issued hereunder; and
12.18 (3) to fund judgments entered by any court against the
12.19 authority or against the council in matters relating to the
12.20 authority's functions related to the sports facilities.
12.21 Subd. 2. [PROCEDURE.] The bonds shall be sold, issued, and
12.22 secured in the manner provided in chapter 475, for bonds payable
12.23 solely from revenues, except as otherwise provided in this act,
12.24 and the council shall have the same powers and duties as a
12.25 municipality and its governing body in issuing bonds under that
12.26 chapter. The bonds may be sold at any price and at public or
12.27 private sale as determined by the council. They shall be
12.28 payable solely from tax and other revenues referred to in this
12.29 act. The bonds shall not be a general obligation or debt of the
12.30 council or of the authority, and shall not be included in the
12.31 net debt of any city, county, or other subdivision of the state
12.32 for the purpose of any net debt limitation. No election shall
12.33 be required.
12.34 Subd. 3. [LIMITATIONS.] The principal amount of the bonds
12.35 issued pursuant to subdivision 1, clause (1), shall not exceed
12.36 the amounts authorized in this subdivision. The principal
13.1 amount of bonds issued pursuant to subdivision 1, clause (1),
13.2 shall be limited to $........ The council shall issue its bonds
13.3 and construction of sports facilities may commence when the
13.4 council has made the following determinations:
13.5 (a) the authority has executed long-term use agreements
13.6 with the team for its use of the stadium, as provided in section
13.7 473.753, subdivision 9;
13.8 (b) the proceeds of bonds provided for in this subdivision
13.9 will be sufficient, together with other capital funds that may
13.10 be available to the authority for expenditures on the sports
13.11 facilities, to carry out the projects for which the proceeds
13.12 were intended as proposed by the authority, including the
13.13 appropriate professional fees and charges but excluding, except
13.14 as otherwise provided in this subdivision, the acquisition,
13.15 clearance, relocation, and legal costs referred to in paragraphs
13.16 (c) and (d);
13.17 (c) the authority has acquired, without cost to the
13.18 authority or the council except as provided in this subdivision,
13.19 title to all real property including all easements, air rights,
13.20 and other appurtenances needed for the construction and
13.21 operation of the stadium facility or has received a grant of
13.22 funds or has entered into agreements sufficient in the judgment
13.23 of the council to assure the receipt of funds, at the time and
13.24 in the amount required, to make any payment upon which the
13.25 authority's acquisition of title and possession of the real
13.26 property is conditioned;
13.27 (d) the authority has received a grant of funds or entered
13.28 into agreements sufficient in the judgment of the council to
13.29 assure the receipt of funds, at the time and in the amount
13.30 required, to pay all costs, except as provided in this
13.31 subdivision, of clearing the real property needed for the
13.32 construction and operation of all sports facilities, railroad
13.33 tracks, and other structures, including, without limitation, all
13.34 relocation costs, all utility relocation costs, and all legal
13.35 costs;
13.36 (e) the authority has executed agreements to prevent
14.1 strikes that would halt, delay, or impede construction of the
14.2 baseball facility;
14.3 (f) the authority has executed agreements that will provide
14.4 for the construction of the sports facility for a certified
14.5 construction price and completion date and which include
14.6 performance bonds in an amount at least equal to 100 percent of
14.7 the certified price to cover any costs that may be incurred over
14.8 and above the certified price, including but not limited to
14.9 costs incurred by the authority or loss of revenues resulting
14.10 from incomplete construction on the completion date;
14.11 (g) the anticipated revenue from the operation of the
14.12 sports facility plus any additional available revenue of the
14.13 authority will be an amount sufficient to pay when due all debt
14.14 service plus all administration, operating, and maintenance
14.15 expenses; and
14.16 (h) the validity of any bonds issued under subdivision 1,
14.17 clause (1), and the obligations of the council and authority
14.18 related to them, shall not be conditioned upon or impaired by
14.19 the council's determinations made pursuant to this subdivision.
14.20 For purposes of issuing the bonds the determinations made by the
14.21 council shall be deemed conclusive, and the council shall be and
14.22 remain obligated for the security and payment of the bonds
14.23 irrespective of determinations that may be erroneous,
14.24 inaccurate, or otherwise mistaken.
14.25 Subd. 4. [SECURITY.] To the extent and in the manner
14.26 provided in this act, the taxes described in this act, the tax
14.27 and other revenues of the authority described in this act, and
14.28 any other revenues of the authority attributable to the sports
14.29 facility, including the team's and host community's
14.30 contributions, shall be and remain pledged and appropriated to
14.31 the authority or to the Metropolitan Council, as appropriate for
14.32 the payment of all necessary and reasonable expenses of the
14.33 operation, administration, maintenance, and debt service of the
14.34 sports facility until all bonds and certificates issued pursuant
14.35 to this section are fully paid or discharged in accordance with
14.36 law. Bonds issued pursuant to this section may be secured by a
15.1 bond resolution, or by a trust indenture entered into by the
15.2 council with a corporate trustee within or outside the state,
15.3 which shall define the tax, team, and fan contributions, and
15.4 other sports facility revenues pledged for the payment and
15.5 security of the bonds. The pledge shall be a valid charge on
15.6 the tax and other revenues referred to in this act from the date
15.7 when bonds are first issued or secured under the resolution or
15.8 indenture and shall secure the payment of principal and interest
15.9 and redemption premiums when due and the maintenance at all
15.10 times of a reserve securing such payments. No mortgage of or
15.11 security interest in any tangible real or personal property
15.12 shall be granted to the bondholders or the trustee, but they
15.13 shall have a valid security interest in all tax and other
15.14 revenues received and accounts receivable by the authority or
15.15 council hereunder, as against the claims of all other persons in
15.16 tort, contract, or otherwise, irrespective of whether such
15.17 parties have notice thereof, and without possession or filing as
15.18 provided in the Uniform Commercial Code or any other law. In
15.19 the bond resolution or trust indenture the council may make such
15.20 covenants, which shall be binding upon the authority, as are
15.21 determined to be usual and reasonably necessary for the
15.22 protection of the bondholders. No pledge, mortgage, covenant,
15.23 or agreement securing bonds may be impaired, revoked, or amended
15.24 by law or by action of the council, authority, site city, or
15.25 county, except in accordance with the terms of the resolution or
15.26 indenture under which the bonds are issued, until the
15.27 obligations of the council thereunder are fully discharged.
15.28 Subd. 5. [CONDITIONAL ARBITRAGED ENDOWMENT ACCOUNT.] (a)
15.29 If, as a part of a negotiated agreement with a team and its host
15.30 local community, the option to use an arbitrage model to raise
15.31 revenue is agreed to under this act, the authority, with the
15.32 approval of the commissioner of finance may issue up to $.......
15.33 of revenue bonds for this purpose. The proceeds of the bonds
15.34 must be deposited in an endowment account to be invested as
15.35 provided in paragraphs (b) and (c) after the amount necessary to
15.36 pay when due the debt service on the bonds issued under this
16.1 section is deposited in a debt service account. The balance on
16.2 hand in the endowment account after all the bonds issued under
16.3 this section have been retired or defeased may be used for
16.4 retiring of the debt incurred for stadium purposes under this
16.5 act, for stadium improvements, or for other stadium-related
16.6 purposes as agreed to by the parties. Other revenue from gifts
16.7 or grants for those purposes, or as otherwise authorized by law,
16.8 may be deposited in the endowment fund for investment and
16.9 disposition as provided in this section.
16.10 (b) The State Board of Investment shall contract with the
16.11 investment advisors specified by the team to invest money in the
16.12 endowment account. The account must be invested in authorized
16.13 investments under section 11A.24, except (1) corporate
16.14 obligations described in section 11A.24, subdivision 3,
16.15 paragraph (b), and (2) investments described in section 11A.24,
16.16 subdivision 6, paragraph (a), clauses (1) to (4).
16.17 (c) The commissioner of finance shall review the investment
16.18 performance of the account at the end of the second year after
16.19 each stadium begins operations and every four years thereafter.
16.20 The commissioner shall require the authority as owner of the
16.21 stadium to impose a surcharge on admissions to events at the
16.22 stadium in one-half of one percent increments, not to exceed
16.23 five percent, in an amount sufficient to equal the money that
16.24 would be in the fund, if an 8.5 percent annual rate of return
16.25 had been earned. Notwithstanding the preceding sentence, the
16.26 commissioner shall set the required rate of return for the first
16.27 four years after the account is established. If the rate of
16.28 return on the fund during the period exceeded 8.5 percent, the
16.29 commissioner may use the excess to retire or defease the
16.30 Metropolitan Council's bonds for the stadium issued as
16.31 authorized in this act.
16.32 Subd. 6. [NO FULL FAITH AND CREDIT.] Any bonds or other
16.33 obligations issued by the council under this act are not public
16.34 debt of the state, and the full faith and credit and taxing
16.35 powers of the state are not pledged for their payment or of any
16.36 payments that the state agrees to make under this act.
17.1 Subd. 7. [TAXABILITY OF INTEREST ON BONDS.] The bonds
17.2 authorized by this act may be issued whether or not the interest
17.3 to be paid on them is gross income for federal tax purposes,
17.4 provided that the authority must make an effort to arrange the
17.5 financing for the project in a manner that would allow the
17.6 interest to be tax-exempt to the greatest extent practicable.
17.7 Sec. 6. [473.755] [HOST COMMUNITY POWERS.]
17.8 Subdivision 1. [AUTHORIZATION.] If the host community is
17.9 authorized in the development agreement to operate and maintain,
17.10 or to manage the operation and maintenance of a stadium, or to
17.11 acquire the land for the stadium, the host community shall have
17.12 the powers necessary to carry out those duties, including,
17.13 without limitation, those enumerated in section 473.752.
17.14 Subd. 2. [LOCAL DEVELOPMENT AUTHORITIES.] If the host
17.15 community deems it necessary to carry out its duties under the
17.16 development agreement, it may create a housing and redevelopment
17.17 authority under sections 469.001 to 469.047, a community
17.18 development agency, or an economic development authority under
17.19 sections 469.090 to 469.1082. If such authorities exist in the
17.20 host community prior to completion of the development agreement,
17.21 the host community may request the participation of one or more
17.22 authorities in implementing the development agreement.
17.23 Sec. 7. [473.756] [NEGOTIATION DEADLINE.]
17.24 The authority to negotiate and enter into agreements with
17.25 the teams and host communities under this act expires December
17.26 31, 2005.
17.27 Sec. 8. [REPEALER.]
17.28 Minnesota Statutes 2004, sections 473I.01; 473I.02;
17.29 473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09;
17.30 473I.10; 473I.11; 473I.12; and 473I.13, are repealed.
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