H.F. No. 2480, 5th Engrossment - 84th Legislative Session (2005-2006)
Posted on Apr 27, 2006
1.1 A bill for an act
1.2 relating to a ballpark for major league baseball; providing for the financing,
1.3 construction, operation, and maintenance of the ballpark and related facilities;
1.4 establishing the Minnesota Ballpark Authority; providing powers and duties
1.5 of the authority; providing a community ownership option; authorizing
1.6 Hennepin County to issue bonds and to contribute to ballpark costs and to
1.7 engage in ballpark and related activities; authorizing local sales and use taxes
1.8 and revenues; exempting Minnesota State High School League events from
1.9 sales taxes; requiring the Minnesota State High School League to transfer
1.10 tax savings to a foundation to promote extracurricular activities; exempting
1.11 building materials used for certain local government projects from certain taxes;
1.12 amending Minnesota Statutes 2004, sections 297A.70, subdivision 11; 297A.71,
1.13 by adding subdivisions; Minnesota Statutes 2005 Supplement, section 10A.01,
1.14 subdivision 35; repealing Minnesota Statutes 2004, sections 473I.01; 473I.02;
1.15 473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 473I.11;
1.16 473I.12; 473I.13.
1.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.18 Section 1. Minnesota Statutes 2005 Supplement, section 10A.01, subdivision 35,
1.19 is amended to read:
1.20 Subd. 35. Public official. "Public official" means any:
1.21 (1) member of the legislature;
1.22 (2) individual employed by the legislature as secretary of the senate, legislative
1.23 auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or
1.24 attorney in the Office of Senate Counsel and Research or House Research;
1.25 (3) constitutional officer in the executive branch and the officer's chief administrative
1.26 deputy;
1.27 (4) solicitor general or deputy, assistant, or special assistant attorney general;
2.1 (5) commissioner, deputy commissioner, or assistant commissioner of any state
2.2 department or agency as listed in section 15.01 or 15.06, or the state chief information
2.3 officer;
2.4 (6) member, chief administrative officer, or deputy chief administrative officer of a
2.5 state board or commission that has either the power to adopt, amend, or repeal rules under
2.6 chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
2.7 (7) individual employed in the executive branch who is authorized to adopt, amend,
2.8 or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
2.9 (8) executive director of the State Board of Investment;
2.10 (9) deputy of any official listed in clauses (7) and (8);
2.11 (10) judge of the Workers' Compensation Court of Appeals;
2.12 (11) administrative law judge or compensation judge in the State Office of
2.13 Administrative Hearings or referee in the Department of Employment and Economic
2.14 Development;
2.15 (12) member, regional administrator, division director, general counsel, or operations
2.16 manager of the Metropolitan Council;
2.17 (13) member or chief administrator of a metropolitan agency;
2.18 (14) director of the Division of Alcohol and Gambling Enforcement in the
2.19 Department of Public Safety;
2.20 (15) member or executive director of the Higher Education Facilities Authority;
2.21 (16) member of the board of directors or president of Minnesota Technology, Inc.; or
2.22 (17) member of the board of directors or executive director of the Minnesota State
2.23 High School League; or
2.24 (18) member of the Minnesota Ballpark Authority established in section 7.
2.25 Sec. 2. Minnesota Statutes 2004, section 297A.70, subdivision 11, is amended to read:
2.26 Subd. 11. School tickets or admissions. Tickets or admissions to regular season
2.27 school games, events, and activities, and to games, events, and activities sponsored by the
2.28 Minnesota State High School League under chapter 128C, are exempt. For purposes of
2.29 this subdivision, "school" has the meaning given it in section 120A.22, subdivision 4.
2.30 EFFECTIVE DATE.This section is effective for sales after June 30, 2006.
2.31 Sec. 3. Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision
2.32 to read:
2.33 Subd. 37. Building materials; exemption. Materials and supplies used or
2.34 consumed in, and equipment incorporated into, the construction or improvement of the
3.1 ballpark and public infrastructure constructed pursuant to sections 6 to 15 are exempt.
3.2 This subdivision expires one year after the date that the first major league baseball game
3.3 is played in the ballpark for materials, supplies, and equipment used in the ballpark, and
3.4 five years after the issuance of the first bonds under section 9 for materials, supplies, and
3.5 equipment used in the public infrastructure.
3.6 Sec. 4. Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision
3.7 to read:
3.8 Subd. 38. Local government; building materials exemption. Materials and
3.9 supplies used or consumed in, and equipment incorporated into the construction or
3.10 improvement of a building or other capital project by a local government when the
3.11 building or project will be for public purposes is exempt.
3.12 EFFECTIVE DATE.This section is effective for purchases made after June 30,
3.13 2009.
3.14 Sec. 5. HIGH SCHOOL LEAGUE; FUNDS TRANSFER.
3.15 Beginning July 1, 2007, the Minnesota State High School League shall annually
3.16 determine the sales tax savings attributable to Minnesota Statutes, section 297A.70,
3.17 subdivision 11, and annually transfer that amount to a nonprofit charitable foundation
3.18 created for the purpose of promoting high school extracurricular activities. The funds must
3.19 be used by the foundation to make grants to fund, assist, recognize, or promote high school
3.20 students' participation in extracurricular activities. This section expires June 30, 2017.
3.21 Sec. 6. CONSTRUCTION AND FINANCING OF MAJOR LEAGUE
3.22 BALLPARK.
3.23 Subdivision 1. Purpose; findings. The purpose of this act is to provide for the
3.24 construction, financing, and long-term use of a ballpark primarily as a venue for major
3.25 league baseball. It is hereby found and declared that the expenditure of public funds for
3.26 this purpose is necessary and serves a public purpose. It is further found and declared
3.27 that any provision in a lease or use agreement with a major league team, that requires
3.28 the team to play its home games in such a ballpark for the duration of the lease or use
3.29 agreement, serves a unique public purpose for which the remedies of specific performance
3.30 and injunctive relief are essential to its enforcement. It is further found and declared
3.31 that government assistance to facilitate the presence of major league baseball provides
3.32 to Hennepin County, the state of Minnesota, and its citizens highly valued intangible
3.33 benefits that are virtually impossible to quantify and, therefore, not recoverable even if
4.1 the government receives monetary damages in the event of a team's breach of contract.
4.2 Minnesota courts are, therefore, charged with protecting those benefits through the use
4.3 of specific performance and injunctive relief as provided herein and in the lease and
4.4 use agreements.
4.5 Subd. 2. Definitions. As used in this act, the following terms have the meanings
4.6 given in this subdivision:
4.7 (a) "Authority" means the Minnesota Ballpark Authority established under section 7.
4.8 (b) "Ballpark" means the stadium suitable for major league baseball to be constructed
4.9 and financed under this act.
4.10 (c) "Ballpark costs" means, unless the context otherwise indicates, the cost of
4.11 designing, constructing, and equipping a ballpark suitable for major league baseball.
4.12 "Ballpark costs" excludes the cost of land acquisition, site improvements, utilities, site
4.13 demolition, environmental remediation, railroad crash wall, site furnishings, landscaping,
4.14 railroad right-of-way development, district energy, site graphics and artwork and other
4.15 site improvements identified by the authority, public infrastructure, capital improvement
4.16 reserves, bond reserves, capitalized interest, and financing costs.
4.17 (d) "County" means Hennepin County.
4.18 (e) "Development area" means the area in the city of Minneapolis bounded
4.19 by marked Interstate Highway 394, vacated Holden Street, the Burlington Northern
4.20 right-of-way, Seventh Street North, Sixth Avenue North, Fifth Street North, the Burlington
4.21 Northern right-of-way, and the Interstate Highway 94 exit ramp.
4.22 (f) "Public infrastructure" means all property, facilities, and improvements
4.23 determined by the authority or the county to facilitate the development and use of
4.24 the ballpark, including but not limited to property and improvements for drainage,
4.25 environmental remediation, parking, roadways, walkways, skyways, pedestrian bridges,
4.26 bicycle paths, and transit improvements to facilitate public access to the ballpark, lighting,
4.27 landscaping, utilities, streets, and streetscapes.
4.28 (g) "Streetscape" means improvements to streets and sidewalks or other public
4.29 right-of-way for the purpose of enhancing the movement, safety, convenience, or
4.30 enjoyment of ballpark patrons and other pedestrians, including decorative lighting and
4.31 surfaces, plantings, display and exhibit space, adornments, seating, and transit and bus
4.32 shelters, which are designated as streetscape by the county.
4.33 (h) "Team" means the owner and operator of the baseball team currently known
4.34 as the Minnesota Twins or any team owned and operated by someone who purchases
4.35 or otherwise takes ownership or control of or reconstitutes the baseball team currently
4.36 known as the Minnesota Twins.
5.1 Subd. 3. Location. The ballpark must be located in the city of Minneapolis at a
5.2 site within the development area.
5.3 Subd. 4. Property tax exemption; special assessments. Any real or personal
5.4 property acquired, owned, leased, controlled, used, or occupied by the authority or county
5.5 for any of the purposes of this act is declared to be acquired, owned, leased, controlled,
5.6 used, and occupied for public, governmental, and municipal purposes, and is exempt from
5.7 ad valorem taxation by the state or any political subdivision of the state; provided that
5.8 the properties are subject to special assessments levied by a political subdivision for
5.9 a local improvement in amounts proportionate to and not exceeding the special benefit
5.10 received by the properties from the improvement. No possible use of any of the properties
5.11 in any manner different from their use under this act at the time may be considered in
5.12 determining the special benefit received by the properties. Notwithstanding Minnesota
5.13 Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
5.14 lease or use agreement between the authority or county and another person for uses related
5.15 to the purposes of this act, including the operation of the ballpark and related parking
5.16 facilities, is exempt from taxation regardless of the length of the lease or use agreement.
5.17 This subdivision, insofar as it provides an exemption or special treatment, does not apply
5.18 to any real property that is leased for residential, business, or commercial development or
5.19 other purposes different from those contemplated in this act.
5.20 Subd. 5. Employees and vendors. (a) The Minnesota Ballpark Authority shall
5.21 make good faith efforts to have entry-level middle management and upper management
5.22 staffed by minority and female employees. The authority shall also make best efforts to
5.23 employ women and members of minority communities. The authority shall make good
5.24 faith efforts to utilize minority and female-owned businesses in Hennepin County. Best
5.25 efforts shall be made to use vendors of goods and services provided by minority and
5.26 female-owned businesses from Hennepin County.
5.27 (b) The authority shall contract with an employment assistance firm, preferably
5.28 minority owned, to create an employment program to recruit, hire, and retain minorities
5.29 for the stadium facility. The authority shall hold a job fair and recruit and advertise at
5.30 Minneapolis Urban League, Sabathani, American Indian OIC, Youthbuild organizations,
5.31 and other such organizations.
5.32 (c) The authority shall report the efforts made in paragraphs (a) and (b) to the
5.33 attorney general.
5.34 Sec. 7. MINNESOTA BALLPARK AUTHORITY.
6.1 Subdivision 1. Establishment. To achieve the purposes of this act, the Minnesota
6.2 Ballpark Authority is established as a public body, corporate and politic, and political
6.3 subdivision of the state. The authority is not a joint powers entity or an agency or
6.4 instrumentality of the county.
6.5 Subd. 2. Composition. (a) The Minnesota Ballpark Authority shall be governed
6.6 by a commission consisting of:
6.7 (1) two members appointed by the governor;
6.8 (2) two members, including the chair, appointed by the county board; and
6.9 (3) one member appointed by the governing body of the city of Minneapolis.
6.10 (b) All members appointed under paragraph (a), clause (1), serve at the pleasure of
6.11 the governor. All members appointed under paragraph (a), clause (2), serve at the pleasure
6.12 of the county board. The member appointed under paragraph (a), clause (3), serves at the
6.13 pleasure of the governing body of the city of Minneapolis.
6.14 (c) Compensation of members appointed under paragraph (a) is governed by
6.15 Minnesota Statutes, section 15.0575.
6.16 (d) One member appointed under paragraph (a), clause (1), must be a resident of
6.17 a county other than Hennepin. All other members appointed under paragraph (a) must
6.18 be residents of Hennepin County.
6.19 (e) No member of the Minnesota Ballpark Authority may have served as an elected
6.20 official of the city of Minneapolis or Hennepin County for a period of two years prior
6.21 to appointment to the authority.
6.22 (f) The legislature intends that the ballpark be constructed to be operational for
6.23 the team and the public no later than the opening of the 2010 season. Accordingly, the
6.24 appointing authorities must make their appointments to the authority within 30 days
6.25 of enactment of this act, and if the governing bodies of the city of Minneapolis or the
6.26 county should fail to do so, the governor may appoint an interim member to serve until the
6.27 authorized appointment is made. The first meeting of the members shall take place at the
6.28 direction of the chair within 45 days of enactment of this act. Further, the authority must
6.29 proceed with due speed in all of its official organizing activities and in making decisions
6.30 with respect to the development agreement and lease or use agreement authorized by this
6.31 act or any other agreements or matters as necessary to meet the timetables set forth in
6.32 this act. Any three members shall constitute a quorum for the conduct of business and
6.33 action may be taken upon the vote of a majority of members present at a meeting duly
6.34 called and held.
6.35 Subd. 3. Chair. The chair shall preside at all meetings of the commission, if
6.36 present, and shall perform all other assigned duties and functions. The commission may
7.1 appoint from among its members a vice-chair to act for the chair during the temporary
7.2 absence or disability of the chair.
7.3 Subd. 4. Bylaws. The authority shall adopt bylaws to establish rules of procedure,
7.4 the powers and duties of its officers, and other matters relating to the governance of the
7.5 authority and the exercise of its powers. Except as provided in this section, the bylaws
7.6 adopted under this subdivision shall be similar in form and substance to bylaws adopted
7.7 by the Metropolitan Sports Facilities Commission pursuant to Minnesota Statutes, section
7.8 473.553.
7.9 Subd. 5. Executive director. The commission shall appoint an executive director
7.10 to serve as the chief executive officer of the authority, which appointment shall be made
7.11 within 30 days of the first meeting of the members.
7.12 Subd. 6. Web site. The authority shall establish a Web site for purposes of
7.13 providing information to the public concerning all actions taken by the authority. At a
7.14 minimum, the Web site must contain a current version of the authority's bylaws, notices
7.15 of upcoming meetings, minutes of the authority's meetings, and contact telephone and
7.16 facsimile numbers for public comments.
7.17 Sec. 8. POWERS OF AUTHORITY.
7.18 Subdivision 1. Actions. The authority may sue and be sued. The authority is a
7.19 public body and the ballpark and public infrastructure are public improvements within the
7.20 meaning of Minnesota Statutes, chapter 562. The authority is a municipality within the
7.21 meaning of Minnesota Statutes, chapter 466.
7.22 Subd. 2. Acquisition of property. The authority may acquire from any public or
7.23 private entity by lease, purchase, gift, or devise all necessary right, title, and interest in
7.24 and to real property, air rights, and personal property deemed necessary to the purposes
7.25 contemplated by this act.
7.26 Subd. 3. Data practices; open meetings. Except as otherwise provided in this act,
7.27 the authority is subject to Minnesota Statutes, chapters 13 and 13D.
7.28 Subd. 4. Facility operation. The authority may equip, improve, operate, manage,
7.29 maintain, and control the ballpark and related facilities constructed, remodeled, or
7.30 acquired under this act as smoke-free facilities, subject to the rights and obligations
7.31 transferred to and assumed by the team or other user under the terms of a lease or use
7.32 agreement, but in no case may a lease or use agreement permit smoking in the ballpark.
7.33 Subd. 5. Disposition of property. The authority may sell, lease, or otherwise
7.34 dispose of any real or personal property acquired by it that is no longer required for
7.35 accomplishment of its purposes. The property may be sold in accordance with the
8.1 procedures provided by Minnesota Statutes, section 469.065, except subdivisions 6 and 7,
8.2 to the extent the authority deems it to be practical and consistent with this act. Title to the
8.3 ballpark shall not be transferred or sold prior to the effective date of enactment of any
8.4 legislation approving such transfer or sale.
8.5 Subd. 6. Employees; contracts for services. The authority may employ persons
8.6 and contract for services necessary to carry out its functions, including the utilization of
8.7 employees and consultants retained by other governmental entities. The authority shall
8.8 enter into an agreement with the city of Minneapolis regarding traffic control for the
8.9 ballpark.
8.10 Subd. 7. Gifts and grants. The authority may accept monetary contributions,
8.11 property, services, and grants or loans of money or other property from the United States,
8.12 the state, any subdivision of the state, any agency of those entities, or any person for any
8.13 of its purposes, and may enter into any agreement required in connection with them. The
8.14 authority shall hold, use, and dispose of the money, property, or services according to the
8.15 terms of the monetary contributions, grant, loan, or agreement.
8.16 Subd. 8. Research. The authority may conduct research studies and programs;
8.17 collect and analyze data; prepare reports, maps, charts, and tables; and conduct all
8.18 necessary hearings and investigations in connection with its functions.
8.19 Subd. 9. Use agreements. The authority may lease, license, or enter into use
8.20 agreements and may fix, alter, charge, and collect rentals, fees, and charges for the use,
8.21 occupation, and availability of part or all of any premises, property, or facilities under
8.22 its ownership, operation, or control for purposes that will provide athletic, educational,
8.23 cultural, commercial, or other entertainment, instruction, or activity for the citizens of
8.24 Minnesota and visitors. Any such use agreement may provide that the other contracting
8.25 party has exclusive use of the premises at the times agreed upon, as well as the right to
8.26 retain some or all revenues from ticket sales, suite licenses, concessions, advertising,
8.27 naming rights, and other revenues derived from the ballpark. The lease or use agreement
8.28 with a team shall provide for the payment by the team of operating and maintenance costs
8.29 and expenses and provide other terms the authority and team agree to.
8.30 Subd. 10. Insurance. The authority may require any employee to obtain and
8.31 file with it an individual bond or fidelity insurance policy. It may procure insurance in
8.32 the amounts it considers necessary against liability of the authority or its officers and
8.33 employees for personal injury or death and property damage or destruction, consistent
8.34 with Minnesota Statutes, chapter 466, and against risks of damage to or destruction of any
8.35 of its facilities, equipment, or other property.
9.1 Subd. 11. Exemption from council review; business subsidy act. The acquisition
9.2 and betterment of a ballpark by the authority must be conducted pursuant to this act and
9.3 are not subject to Minnesota Statutes, sections 473.165 and 473.173. Minnesota Statutes,
9.4 section 116J.994, does not apply to any transactions of the county, the authority, or other
9.5 governmental entity related to the ballpark or public infrastructure, or to any tenant or
9.6 other users of them.
9.7 Subd. 12. Contracts. The authority may enter into a development agreement with
9.8 the team, the county, or any other entity relating to the construction, financing, and use of
9.9 the ballpark and related facilities and public infrastructure. The authority may contract
9.10 for materials, supplies, and equipment in accordance with section 6, subdivision 5, and
9.11 Minnesota Statutes, section 471.345, except that the authority, with the consent of the
9.12 county, may employ or contract with persons, firms, or corporations to perform one or more
9.13 or all of the functions of architect, engineer, or construction manager with respect to all or
9.14 any part of the ballpark and public infrastructure. Alternatively, at the request of the team
9.15 and with the consent of the county, the authority shall authorize the team to provide for
9.16 the design and construction of the ballpark, subject to terms of this act. The construction
9.17 manager may enter into contracts with contractors for labor, materials, supplies, and
9.18 equipment for the construction of the ballpark through the process of public bidding,
9.19 except that the construction manager may, with the consent of the authority or the team:
9.20 (1) narrow the listing of eligible bidders to those which the construction manager
9.21 determines to possess sufficient expertise to perform the intended functions;
9.22 (2) award contracts to the contractors that the construction manager determines
9.23 provide the best value, which are not required to be the lowest responsible bidder; and
9.24 (3) for work the construction manager determines to be critical to the completion
9.25 schedule, award contracts on the basis of competitive proposals or perform work with
9.26 its own forces without soliciting competitive bids if the construction manager provides
9.27 evidence of competitive pricing.
9.28 The authority may require that the construction manager shall certify, before the contract
9.29 is finally signed, a fixed and stipulated construction price and completion date to the
9.30 authority and shall post a bond in an amount at least equal to 100 percent of the certified
9.31 price, to cover any costs which may be incurred in excess of the certified price, including
9.32 but not limited to costs incurred by the authority or loss of revenues resulting from
9.33 incomplete construction on the completion date. The authority may secure surety bonds
9.34 as provided in Minnesota Statutes, section 574.26, securing payment of just claims in
9.35 connection with all public work undertaken by it. Persons entitled to the protection of the
9.36 bonds may enforce them as provided in Minnesota Statutes, sections 574.28 to 574.32,
10.1 and shall not be entitled to a lien on any property of the authority under the provisions of
10.2 Minnesota Statutes, sections 514.01 to 514.16. Contracts for construction and operation of
10.3 the ballpark must include programs, including Youthbuild, to provide for participation by
10.4 small, local, women, and minority businesses, and the inclusion of women and people
10.5 of color in the workforces of contractors and ballpark operators. The construction of the
10.6 ballpark is a "project" as that term is defined in Minnesota Statutes 2004, section 177.42,
10.7 subdivision 2, and is subject to the prevailing wage law under Minnesota Statutes 2004,
10.8 sections 177.41 to 177.43.
10.9 Subd. 13. Incidental powers. In addition to the powers expressly granted in this
10.10 act, the authority has all powers necessary or incidental thereto.
10.11 Subd. 14. Review of ballpark design. The authority must review and approve the
10.12 ballpark implementation committee's recommendations as they relate to the design and
10.13 construction of the ballpark, after the recommendations are approved by the city council
10.14 as provided in section 10.
10.15 Sec. 9. COUNTY ACTIVITIES; BONDS; TAXES.
10.16 Subdivision 1. Activities; contracts. The county may authorize, by resolution, and
10.17 make one or more grants to the authority for ballpark development and construction,
10.18 public infrastructure, reserves for capital improvements, and other purposes related to the
10.19 ballpark on the terms and conditions agreed to by the county and the authority.
10.20 The amount that the county may grant or expend for ballpark costs shall not exceed
10.21 $260,000,000. The amount of any grant for capital improvement reserves shall not exceed
10.22 $1,000,000 annually, subject to annual increases according to an inflation index acceptable
10.23 to the county. The amount of grants or expenditures for land, site improvements, and
10.24 public infrastructure or other costs incidental and necessary to further the purposes of this
10.25 act shall not exceed $90,000,000, except that the authority to spend money for land,
10.26 site improvements, and public infrastructure is limited to payment of amounts incurred
10.27 or for construction contracts entered into during the five-year period beginning on the
10.28 date of the issuance of the initial series of bonds under this act. Such agreements are
10.29 valid and enforceable notwithstanding that they involve payments in future years and
10.30 they do not constitute a debt of the county within the meaning of any constitutional or
10.31 statutory limitation or for which a referendum is required. The county may acquire by
10.32 purchase, eminent domain, or gift, land, air rights, and other property interests within
10.33 the development area for the ballpark site and public infrastructure and convey it to the
10.34 authority with or without consideration, prepare a site for development as a ballpark, and
10.35 acquire and construct any related public infrastructure. The purchase of property and
11.1 development of public infrastructure financed with revenues under this section is limited
11.2 to infrastructure within the development area or within 1,000 feet of the border of the
11.3 development area. The public infrastructure may include the construction and operation of
11.4 parking facilities within the development area notwithstanding any law imposing limits on
11.5 county parking facilities in the city of Minneapolis. The county may acquire and construct
11.6 property, facilities, and improvements within the stated geographical limits for the
11.7 purpose of drainage and environmental remediation for property within the development
11.8 area, walkways and a pedestrian bridge to link the ballpark to Third Avenue distributor
11.9 ramps, street and road improvements and access easements for the purpose of providing
11.10 access to the ballpark, streetscapes, connections to transit facilities and bicycle trails,
11.11 and any utility modifications which are incidental to any utility modifications within the
11.12 development area. To the extent property parcels or interests acquired are more extensive
11.13 than the public infrastructure requirements, the county may sell or otherwise dispose of
11.14 the excess. The proceeds from sales of excess property must be deposited in the debt
11.15 service reserve fund. The county may review and approve ballpark designs, plans, and
11.16 specifications to the extent provided in a grant agreement and in order to ensure that the
11.17 public purposes of the grant are carried out. The county board may delegate responsibility
11.18 for implementing the terms of an approved grant agreement to the county administrator
11.19 or other designated officers. Public infrastructure designs must optimize area transit
11.20 and bicycle opportunities, including connections to existing trails, as determined by the
11.21 county board. The county may enforce the provisions of any grant agreement by specific
11.22 performance. Except to require compliance with the conditions of the grant or as may
11.23 be mutually agreed to by the county and the authority, the county has no interest in or
11.24 claim to any assets or revenues of the authority. The county may initiate or continue an
11.25 environmental impact statement as the responsible governmental unit under Minnesota
11.26 Statutes, section 116D.04, pay for any costs in connection with the environmental impact
11.27 statement or reimburse others for such costs, and conduct other studies and tests necessary
11.28 to evaluate the suitability of the ballpark site. The county has all powers necessary or
11.29 convenient for those purposes and may enter into any contract for those purposes. The
11.30 county may make expenditures or grants for other costs incidental and necessary to further
11.31 the purposes of this act and may by agreement, reimburse in whole or in part, any entity
11.32 that has granted, loaned, or advanced funds to the county to further the purposes of this
11.33 act. The county shall reimburse a local governmental entity within its jurisdiction or make
11.34 a grant to such a governmental unit for site acquisition, preparation of the site for ballpark
11.35 development, and public infrastructure. Amounts expended by a local governmental unit
11.36 with the proceeds of a grant or under an agreement that provides for reimbursement by the
12.1 county shall not be deemed an expenditure or other use of local governmental resources
12.2 by the governmental unit within the meaning of any law or charter limitation. Exercise by
12.3 the county of its powers under this section shall not affect the amounts that the county is
12.4 otherwise eligible to spend, borrow, tax, or receive under any law.
12.5 It is the intent of the legislature that, except as expressly limited herein, the county
12.6 has the authority to acquire and develop a site for the ballpark, to enter into contracts with
12.7 the authority and other governmental or nongovernmental entities, to appropriate funds,
12.8 and to make employees, consultants, and other revenues available for those purposes.
12.9 Subd. 2. County revenue bonds. The county may, by resolution, authorize, sell,
12.10 and issue revenue bonds to provide funds to make a grant or grants to the authority and
12.11 to finance all or a portion of the costs of site acquisition, site improvements, and other
12.12 activities necessary to prepare a site for development of a ballpark, to construct, improve,
12.13 and maintain the ballpark and to establish and fund any capital improvement reserves, and
12.14 to acquire and construct any related parking facilities and other public infrastructure and
12.15 for other costs incidental and necessary to further the purposes of this act. The county
12.16 may also, by resolution, issue bonds to refund the bonds issued pursuant to this section.
12.17 The bonds must be limited obligations, payable solely from or secured by taxes levied
12.18 under subdivision 3, and any other revenues to become available under this act. The
12.19 bonds may be issued in one or more series and sold without an election. The bonds shall
12.20 be sold in the manner provided by Minnesota Statutes, section 475.60. The bonds shall
12.21 be secured, bear the interest rate or rates or a variable rate, have the rank or priority, be
12.22 executed in the manner, be payable in the manner, mature, and be subject to the defaults,
12.23 redemptions, repurchases, tender options, or other terms, as the county may determine.
12.24 The county may enter into and perform all contracts deemed necessary or desirable by
12.25 it to issue and secure the bonds, including an indenture of trust with a trustee within or
12.26 without the state. The debt represented by the bonds shall not be included in computing
12.27 any debt limitation applicable to the county. Subject to this subdivision, the bonds must be
12.28 issued and sold in the manner provided in Minnesota Statutes, chapter 475. The bonds
12.29 shall recite that they are issued under this act and the recital shall be conclusive as to the
12.30 validity of the bonds and the imposition and pledge of the taxes levied for their payment.
12.31 In anticipation of the issuance of the bonds authorized under this subdivision and the
12.32 collection of taxes levied under subdivision 3, the county may provide funds for the
12.33 purposes authorized by this act through temporary interfund loans from other available
12.34 funds of the county which shall be repaid with interest.
12.35 Subd. 3. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section
12.36 477A.016, or other law, the governing body of the county may by ordinance, impose a
13.1 sales and use tax at the rate of 0.15 percent for the purposes listed in this section. The
13.2 provisions of Minnesota Statutes, section 297A.99, except for subdivisions 2 and 3, apply
13.3 to the imposition, administration, collection, and enforcement of this tax.
13.4 (b) The tax imposed under this section is not included in determining if the total tax
13.5 on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
13.6 chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
13.7 12, section 87, or in determining a tax that may be imposed under any other limitations.
13.8 Subd. 4. Uses of tax. (a) Revenues received from the tax imposed under subdivision
13.9 3 may be used:
13.10 (1) to pay costs of collection;
13.11 (2) to pay or reimburse or secure the payment of any principal of, premium, or
13.12 interest on bonds issued in accordance with this act;
13.13 (3) to pay costs and make expenditures and grants described in subdivision 1,
13.14 including financing costs related to them;
13.15 (4) to maintain reserves for the foregoing purposes deemed reasonable and
13.16 appropriate by the county; and
13.17 (5) to pay for operating costs of the ballpark authority other than the cost of
13.18 operating or maintaining the ballpark;
13.19 and for no other purpose.
13.20 (b) Revenues from the tax designated for use under paragraph (a), clause (5), must
13.21 be deposited in the operating fund of the ballpark authority.
13.22 (c) After completion of the ballpark and public infrastructure, the tax revenues not
13.23 required for current payments of the expenditures described in clauses (1) to (5) shall be
13.24 used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for payment
13.25 of future obligations under grants or other commitments for future expenditures which
13.26 are permitted by subdivision 1. Upon the redemption or defeasance of the bonds and
13.27 the establishment of reserves adequate to meet such future obligations, the taxes shall
13.28 terminate and shall not be reimposed.
13.29 Sec. 10. IMPLEMENTATION.
13.30 Subdivision 1. Environmental review. The county shall be the responsible
13.31 governmental unit for any environmental impact statement for the ballpark and public
13.32 infrastructure prepared under Minnesota Statutes, section 116D.04. Notwithstanding
13.33 Minnesota Statutes, section 116D.04, subdivision 2b, and implementing rules:
13.34 (a) the environmental impact statement shall not be required to consider alternative
13.35 ballpark sites; and
14.1 (b) the environmental impact statement must be determined to be adequate before
14.2 commencing work on the foundation of the ballpark, but the ballpark and public
14.3 infrastructure may otherwise be started and all preliminary and final government decisions
14.4 and actions may be made and taken, including but not limited to acquiring land, obtaining
14.5 financing, imposing the tax under section 9, granting permits or other land use approvals,
14.6 entering into grant, lease, or use agreements, or preparing the site or related public
14.7 infrastructure prior to a determination of the adequacy of the environmental impact
14.8 statement.
14.9 Subd. 2. Ballpark implementation committee. A ballpark implementation
14.10 committee shall be established to advise the authority and the county and make
14.11 recommendations on the design and construction of the ballpark and the public
14.12 infrastructure, including street vacation, parking, roadways, walkways, skyways,
14.13 pedestrian bridges, bicycle paths, transit improvements to facilitate public street access
14.14 to the ballpark and integration into the transportation plan for downtown and the region,
14.15 lighting, landscaping, utilities, streets, drainage, and environmental remediation. The
14.16 ballpark implementation committee shall consist of an equal number of members
14.17 appointed by the county and by the city of Minneapolis, the precise number of members to
14.18 be mutually determined by the county and the city. The county board and the city council
14.19 of Minneapolis shall make their respective appointments to the ballpark implementation
14.20 committee within 30 days of enactment. Recommendations of the committee shall be
14.21 forwarded to the city of Minneapolis planning department for an advisory recommendation
14.22 and then to the city council for approval or disapproval.
14.23 Subd. 3. Site approval; land use jurisdiction. It is hereby found and declared that
14.24 the development area is the ballpark location and that construction of a ballpark within
14.25 the development area is a permitted use and is consistent with the comprehensive plan of
14.26 the city of Minneapolis and the adopted area plan. The legislature further declares that
14.27 the public purpose served by the ballpark and the speed required for construction of the
14.28 ballpark and public infrastructure does not allow for application of Minnesota Statutes,
14.29 sections 462.351 to 462.361. The exercise by the authority and the county of the powers
14.30 provided in this act shall not be subject to regulation by or the jurisdiction of the city
14.31 of Minneapolis and are not subject to Minnesota Statutes, sections 15.99, 462.351 to
14.32 462.361, Minneapolis City Charter, chapter 13, section 4, or municipal zoning ordinances,
14.33 except as specifically provided in this act.
14.34 Subd. 4. Public hearing. The authority and the county shall each hold a public
14.35 hearing on the preliminary design plans for the ballpark and public infrastructure. Such
14.36 hearings may be held separately or jointly by the authority and the county. At least ten
15.1 days' published notice of the hearing shall be given in the official newspaper of the
15.2 county and a newspaper of general circulation in the county. The authority or county,
15.3 as applicable, shall maintain a record of the hearing, including any written statements
15.4 submitted.
15.5 Subd. 5. City review. At least 20 days before the hearing, the applicable preliminary
15.6 design plans shall be submitted to the planning department of the city of Minneapolis
15.7 together with a statement generally describing any aspects of the plans which do not
15.8 conform to implementation committee recommendations which have been approved by
15.9 the city council. In addition to the preliminary design plans, there shall be submitted any
15.10 other information generally required by the city of Minneapolis on the standard land use
15.11 application worksheet and checklist. The city may hold a public hearing if it does so
15.12 within 30 days of the submission. Within 20 days after a hearing under subdivision 4, the
15.13 city shall review and approve or disapprove the preliminary design plans on which the
15.14 hearing was held. If the city disapproves the plans, it shall describe specific amendments
15.15 or conditions to the plans that, if adopted, would cause the city to withdraw its disapproval.
15.16 Failure to approve or disapprove the plans in writing within 30 days after the hearing in
15.17 subdivision 4 is deemed to be approval, unless an extension of time is agreed to by the
15.18 city, county, and the authority. If the city disapproves of the plans, the authority and the
15.19 county shall conduct such further reviews as each deem necessary in its sole discretion
15.20 prior to continuing the planning and design process.
15.21 Subd. 6. Amendments; final design. The authority must approve final design
15.22 plans for the ballpark or adopt amendments or conditions to the design plans at its sole
15.23 discretion. The county must approve final design plans for the public infrastructure or
15.24 adopt amendments or conditions to the design plans at its sole discretion.
15.25 Subd. 7. Subdivision requirements. Any subdivision required in the development
15.26 area shall be subject to the jurisdiction and review procedures of the city of Minneapolis
15.27 established pursuant to Minnesota Statutes, section 462.358, except that the city shall not
15.28 deny or withhold excavation or building permits for the ballpark on the grounds that
15.29 subdivision review and approval has not occurred within the project construction timetable.
15.30 Sec. 11. CRITERIA AND CONDITIONS.
15.31 Subdivision 1. Binding and enforceable. In developing the ballpark and entering
15.32 into related contracts, the authority must follow and enforce the criteria and conditions in
15.33 subdivisions 2 to 15, provided that a determination by the authority that those criteria or
15.34 conditions have been met under any agreement or otherwise shall be conclusive.
16.1 Subd. 2. Team contributions. The team must agree to contribute $130,000,000
16.2 toward ballpark costs, less a proportionate share of any amount by which actual ballpark
16.3 costs may be less than a budgeted amount of $390,000,000. The team contributions must
16.4 be funded in cash during the construction period. The team shall deposit $45,000,000
16.5 to the construction fund to pay for the first ballpark costs. The balance of the team's
16.6 contribution must be used to pay the last costs of the ballpark construction. In addition to
16.7 any other team contribution, the team must agree to assume and pay when due all cost
16.8 overruns for the ballpark costs that exceed the budget.
16.9 Subd. 3. Reserve for capital improvements. The authority shall require that
16.10 a reserve fund for capital improvements to the ballpark be established and funded
16.11 with annual payments of $2,000,000, with the team's share of those payments to be
16.12 approximately $1,000,000, as determined by agreement of the team and county. The
16.13 annual payments shall increase according to an inflation index determined by the authority,
16.14 provided that any portion of the team's contribution that has already been reduced to
16.15 present value shall not increase according to an inflation index. The authority may accept
16.16 contributions from the county or other source for the portion of the funding not required to
16.17 be provided by the team.
16.18 Subd. 4. Lease or use agreements. The authority must agree to a long-term lease
16.19 or use agreement with the team for its use of the ballpark. The team must agree to play
16.20 all regularly scheduled and postseason home games at the ballpark. Preseason games
16.21 may also be scheduled and played at the ballpark. The lease or use agreement must be
16.22 for a term of at least 30 years from the date of ballpark completion. The lease or use
16.23 agreement must include terms for default, termination, and breach of the agreement.
16.24 Recognizing that the presence of major league baseball provides to Hennepin County, the
16.25 state of Minnesota, and its citizens highly valued, intangible benefits that are virtually
16.26 impossible to quantify and, therefore, not recoverable in the event of a team owner's
16.27 breach of contract, the lease and use agreements must provide for specific performance
16.28 and injunctive relief to enforce provisions relating to use of the ballpark for major league
16.29 baseball and must not include escape clauses or buyout provisions. The team must not
16.30 enter into or accept any agreement or requirement with or from Major League Baseball or
16.31 any other entity that is inconsistent with the team's binding commitment to the 30-year
16.32 term of the lease or use agreement or that would in any manner dilute, interfere with, or
16.33 negate the provisions of the lease or use agreement, or of any grant agreement under
16.34 section 9 that includes a specific performance clause, providing for specific performance
16.35 or injunctive relief. The legislature conclusively determines, as a matter of public policy,
16.36 that the lease or use agreement, and any grant agreement under section 9 that includes a
17.1 specific performance clause: (a) explicitly authorize specific performance as a remedy
17.2 for breach; (b) are made for adequate consideration and upon terms which are otherwise
17.3 fair and reasonable; (c) have not been included through sharp practice, misrepresentation,
17.4 or mistake; (d) if specifically enforced, do not cause unreasonable or disproportionate
17.5 hardship or loss to the team or to third parties; and (e) involve performance in such a
17.6 manner and the rendering of services of such a nature and under such circumstances that
17.7 the beneficiary cannot be adequately compensated in damages.
17.8 Subd. 5. Notice requirement for certain events. Until 30 years from the date
17.9 of ballpark completion, the team must provide written notice to the authority not less
17.10 than 90 days prior to any action, including any action imposed upon the team by Major
17.11 League Baseball, which would result in a breach or default of provisions of the lease
17.12 or use agreements required to be included under subdivision 4. If this notice provision
17.13 is violated and the team has already breached or been in default under the required
17.14 provisions, the authority, the county, or the state of Minnesota is authorized to specifically
17.15 enforce the lease or use agreement, and Minnesota courts are authorized and directed to
17.16 fashion equitable remedies so that the team may fulfill the conditions of the lease and use
17.17 agreements, including, but not limited to, remedies against major league baseball.
17.18 Subd. 6. Enforceable financial commitments. The authority must determine
17.19 before ballpark construction begins that all public and private funding sources for
17.20 construction of the ballpark are included in written agreements. The committed funds
17.21 must be adequate to design, construct, furnish, and equip the ballpark.
17.22 Subd. 7. Environmental requirements. The authority must comply with all
17.23 environmental requirements imposed by regulatory agencies for the ballpark, site, and
17.24 structure, except as provided by section 10, subdivision 1.
17.25 Subd. 8. Right of first refusal. The lease or use agreement must provide that, prior
17.26 to any planned sale of the team, the team must offer a corporation formed under section
17.27 15 a right of first refusal to purchase the team at the same price and upon the same terms
17.28 and conditions as are contemplated in the intended sale.
17.29 Subd. 9. Public share upon sale of team. The lease or use agreement must provide
17.30 that, if the team is sold other than to the county under subdivision 8, after the effective
17.31 date of this act, a portion of the sale price must be paid to the county and used to defease
17.32 the bonds issued under section 9, subdivision 2. The portion required to be so paid to the
17.33 county is 18 percent of the gross sale price. Any portion remaining after the defease of the
17.34 bonds must be paid to the authority and deposited in a reserve fund for improvements to
17.35 the ballpark or expended as otherwise directed by the authority.
18.1 Subd. 10. Access to books and records. The lease or use agreement must provide
18.2 the authority access to annual audited financial statements of the team and other financial
18.3 books and records that the authority deems necessary to determine compliance by the
18.4 team with this act and to enforce the terms of any lease or use agreements entered into
18.5 under this act. Any financial information obtained by the authority under this subdivision
18.6 is nonpublic data under Minnesota Statutes, section 13.02, subdivision 9.
18.7 Subd. 11. Affordable access. To the extent determined by the authority or required
18.8 by a grant agreement, any lease or use agreement must provide for affordable access to the
18.9 professional sporting events held in the ballpark.
18.10 Subd. 12. No strikes; lockouts. The authority must negotiate a public sector project
18.11 labor agreement or other agreement to prevent strikes and lockouts that would halt, delay,
18.12 or impede construction of the ballpark and related facilities.
18.13 Subd. 13. Youth and amateur sports. The lease or use agreement must require that
18.14 the team provide or cause to be provided $250,000 annually for the term of the agreement
18.15 for youth activities and amateur sports without reducing the amounts otherwise normally
18.16 provided for and on behalf of the team for those purposes. The amounts shall increase
18.17 according to an inflation factor not to exceed 2.5 percent annually and may be subject to a
18.18 condition that the county fund grants for similar purposes.
18.19 Subd. 14. Name retention. The lease or use agreement must provide that the
18.20 team and league will transfer to the state of Minnesota the Minnesota Twins' heritage
18.21 and records, including the name, logo, colors, history, playing records, trophies, and
18.22 memorabilia in the event of any dissolution or relocation of the Twins franchise.
18.23 Subd. 15. Agreement with major league baseball. The authority shall enter into
18.24 an agreement with major league baseball guaranteeing the continuance of the Minnesota
18.25 Twins in the area for the period of the agreements referred to in subdivision 4.
18.26 Sec. 12. METROPOLITAN SPORTS FACILITIES COMMISSION.
18.27 The Metropolitan Sports Facilities Commission may authorize, by resolution,
18.28 technical, professional, or financial assistance to the county and authority for the
18.29 development and operation of the ballpark upon such terms and conditions as the county
18.30 or authority and the Metropolitan Sports Facilities Commission may agree, including
18.31 reimbursement of financial assistance from the proceeds of the bonds authorized in this
18.32 chapter. Without limiting the foregoing permissive powers, the Metropolitan Sports
18.33 Facilities Commission shall transfer $300,000 from its cash reserves to the county on
18.34 or prior to January 1, 2007, for use in connection with preliminary ballpark and public
19.1 infrastructure costs, which amount shall be repaid by the county from collections of the
19.2 tax authorized by section 9, if any.
19.3 Sec. 13. CITY REQUIREMENTS.
19.4 Subdivision 1. Land conveyance. At the request of the authority or county, the city
19.5 of Minneapolis shall convey to the authority or county, as applicable, at fair market value
19.6 all real property it owns that is located in the development area and is not currently used
19.7 for road, sidewalk, or utility purposes and that the authority or county determines to be
19.8 necessary for ballpark or public infrastructure purposes.
19.9 Subd. 2. Liquor licenses. At the request of the authority, the city of Minneapolis
19.10 shall issue intoxicating liquor licenses that are reasonably requested for the premises of the
19.11 ballpark. These licenses are in addition to the number authorized by law. All provisions of
19.12 Minnesota Statutes, chapter 340A, not inconsistent with this section apply to the licenses
19.13 authorized under this subdivision.
19.14 Subd. 3. Charter limitations. Actions taken by the city of Minneapolis under this
19.15 act in a planning or regulatory capacity, actions for which fair market value reimbursement
19.16 is provided or for which standard fees are collected, and any tax exemptions established
19.17 under this act shall not be deemed to be an expenditure or other use of city resources
19.18 within the meaning of any charter limitation.
19.19 Sec. 14. LOCAL TAXES.
19.20 No new or additional local sales or use tax shall be imposed on sales at the ballpark
19.21 site unless the tax is applicable throughout the taxing jurisdiction. No new or additional
19.22 local tax shall be imposed on sales of tickets and admissions to baseball events at the
19.23 ballpark, notwithstanding any law or ordinance, unless the tax is applicable throughout
19.24 the taxing jurisdiction. The admissions and amusements tax currently imposed by the
19.25 city of Minneapolis pursuant to Laws 1969, chapter 1092, may apply to admissions for
19.26 baseball events at the ballpark.
19.27 Sec. 15. COMMUNITY OWNERSHIP.
19.28 Subdivision 1. Purpose. The legislature determines that:
19.29 (1) a professional baseball franchise is an important asset to the state of Minnesota
19.30 and ensuring that a franchise remains in Minnesota is an important public purpose;
19.31 (2) providing broad-based local ownership of a major league baseball franchise
19.32 develops trust among fans, taxpayers, and the team, and helps ensure this important asset
19.33 will remain in the state;
20.1 (3) providing community ownership of a professional baseball franchise ensures that
20.2 the financial benefits of any increased value of the franchise will accrue to those members
20.3 of the community who own the franchise; and
20.4 (4) enacting legislation providing for community ownership indicates to major
20.5 league baseball continuing support for professional baseball in Minnesota.
20.6 Subd. 2. Acquisition. Subject to the rules of major league baseball, the governor
20.7 and the Metropolitan Sports Facilities Commission must attempt to facilitate the formation
20.8 of a corporation to acquire the baseball franchise and to identify an individual private
20.9 managing owner of the corporation. The corporation formed to acquire the franchise shall
20.10 have a capital structure in compliance with all of the following provisions:
20.11 (1) there may be two classes of capital stock: common stock and preferred stock.
20.12 Both classes of stock must give holders voting rights with respect to any relocation or
20.13 voluntary contraction of the franchise;
20.14 (2) the private managing owner must own no less than 25 percent and no more than
20.15 35 percent of the common stock. For purposes of this restriction, shares of common stock
20.16 owned by the private managing owner include shares of common stock owned by any
20.17 related taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986, as
20.18 amended. Other than the rights of all other holders of common stock and preferred stock
20.19 with respect to relocation or voluntary contraction of the franchise, the private managing
20.20 owner must control all aspects of the operation of the corporation;
20.21 (3) other than the private managing owner, no individual or entity may own more
20.22 than five percent of the common stock of the corporation;
20.23 (4) at least 50 percent of the ownership of the common stock must be sold to
20.24 members of the general public in a general solicitation and a person or entity must not
20.25 own more than one percent of common stock of the corporation; and
20.26 (5) the articles of incorporation, bylaws, and other governing documents must
20.27 provide that the franchise may not move outside of the state or agree to voluntary
20.28 contraction without approval of at least 75 percent of the shares of common stock and at
20.29 least 75 percent of the shares of preferred stock. Notwithstanding any law to the contrary,
20.30 these 75 percent approval requirements shall not be amended by the shareholders or
20.31 by any other means.
20.32 Except as specifically provided by this act, no state agency may spend money from
20.33 any state fund for the purpose of generating revenue under this subdivision or for the
20.34 purpose of providing operating support or defraying operating losses of a professional
20.35 baseball franchise.
21.1 Sec. 16. REVISOR'S INSTRUCTION.
21.2 The revisor of statutes shall codify the provisions of this act in the next edition of
21.3 Minnesota Statutes.
21.4 Sec. 17. REPEALER.
21.5 Minnesota Statutes 2004, sections 473I.01; 473I.02; 473I.03; 473I.04; 473I.05;
21.6 473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 473I.11; 473I.12; and 473I.13, are repealed.
21.7 Sec. 18. EFFECTIVE DATE.
21.8 Sections 1, 3, and 6 to 17 are effective the day following final enactment.
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