1.1                                        A bill for an act
1.2     relating to higher education; providing a process for state support of a football 
1.3     stadium at the University of Minnesota; requiring a report; appropriating money;
1.4     amending Minnesota Statutes 2004, sections 297A.71, by adding a subdivision; 
1.5     340A.404, subdivision 4a; proposing coding for new law in Minnesota Statutes, 
1.6     chapter 473.
1.7     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8         Section 1. DEFINITIONS.
1.9         Subdivision 1. Applicability. The definitions in this section apply to sections 2 to 8.
1.10        Subd. 2. Commissioner. "Commissioner" means the commissioner of finance.
1.11        Subd. 3. Stadium. "Stadium" means an athletic stadium suitable for intercollegiate 
1.12    National Collegiate Athletic Association (NCAA) Division I football games and related 
1.13    infrastructure improvements constructed on the University of Minnesota's east bank 
1.14    campus in the city of Minneapolis.
1.15        Subd. 4. Board. "Board" means the Board of Regents of the University of 
1.16    Minnesota.
1.17        Subd. 5. Commission. "Commission" means the Metropolitan Sports Facilities 
1.18    Commission.

1.19        Sec. 2. ACTIVITIES; CONTRACTS.
1.20    The legislature recognizes that the board has all powers necessary or convenient for 
1.21    designing, constructing, equipping, improving, controlling, operating, and maintaining the 
1.22    stadium and may enter into contracts that are, in its judgment, in the best interests of the 
1.23    public for those purposes. Notwithstanding contrary law, the board may adopt the fair 
1.24    and competitive design and construction procurement procedures in connection with 
2.1     the stadium that it considers to be in the public interest. The total cost of the stadium, 
2.2     including the costs of issuing bonds and purchasing bond insurance or other credit 
2.3     enhancements or funding reserves, plus the costs of mitigation required by section 6, must 
2.4     not exceed $248,000,000. The board must ensure to the greatest extent practicable, that 
2.5     materials derived from American-made steel are used in the construction of the stadium. 
2.6     Minnesota Statutes, sections 16B.33 and 16B.335, do not apply to the stadium.

2.7         Sec. 3. ENVIRONMENTAL REVIEW.
2.8     The commissioner must not make an annual payment required by this act until the 
2.9     board has completed an environmental review of the stadium project and the commissioner 
2.10    determines that the board is performing the duties of the responsible governmental unit 
2.11    as prescribed in the Minnesota Environmental Policy Act, Minnesota Statutes, chapter 
2.12    116D, and the rules adopted under that chapter. The legislature ratifies the Environmental 
2.13    Quality Board's designation of the board as a responsible governmental unit.

2.14        Sec. 4. CONDITIONS FOR PAYMENT TO THE UNIVERSITY.
2.15        Subdivision 1. Nonstate revenues required. Before the commissioner may make 
2.16    the first payment to the board authorized in this section, the commissioner must certify 
2.17    that the board has received at least $75,300,000 in pledges, gifts, sponsorships, and other 
2.18    nonstate general fund revenue support for the construction of the stadium.
2.19        Subd. 2. Prohibited funding sources. No part of the money required to be obtained 
2.20    by the board under subdivision 1 may be derived from:
2.21    (1) increased fees or charges imposed on students attending the University of 
2.22    Minnesota; or
2.23    (2) money paid by any nonpublic entity as consideration for the right to determine 
2.24    the name of the stadium.
2.25        Subd. 3. Annual state payments; appropriation. On July 1 of each year after 
2.26    certification by the commissioner, but no earlier than July 1, 2007, and for so long 
2.27    thereafter as any bonds issued by the board for the construction of the stadium are 
2.28    outstanding, the state must transfer to the board up to $12,900,000 to reimburse the board 
2.29    for its stadium costs, provided that bonds issued to pay the state's share of the costs shall 
2.30    not exceed $172,700,000.
2.31    Up to $12,900,000 is appropriated annually from the general fund for the purpose 
2.32    of this section. The board must certify to the commissioner the amount of the annual 
2.33    payments of principal and interest required to service bonds issued by the university for 
2.34    the construction of the stadium, and the actual amount of the state's annual payment to the 
3.1     university must equal the amount required to service the bonds representing the state's 
3.2     share of the costs. Except to the extent of the annual appropriation described in this section, 
3.3     the state is not required to pay any part of the cost of designing or constructing the stadium.
3.4         Subd. 4. Affordable student access. Before the first payment is made under 
3.5     subdivision 3, the board must certify to the commissioner that a provision for affordable 
3.6     access for university students to the university sporting events held at the football stadium 
3.7     has been made.
3.8         Subd. 5. Name of stadium. No payment may be made under this section unless the 
3.9     board agrees that the name of the stadium is "Veterans' Memorial Stadium."

3.10        Sec. 5. NO FULL FAITH AND CREDIT.
3.11    Any bonds or other obligations issued by the board under this act are not public debt 
3.12    of the state, and the full faith and credit and the taxing powers of the state are not pledged 
3.13    for their payment, or of any payments that the state agrees to make under this act.

3.14        Sec. 6. MITIGATION FUND.
3.15    The Board of Regents is requested to cooperate with the reconstituted stadium 
3.16    area advisory group described in the University of Minnesota On-Campus Football 
3.17    Stadium-Final EIS, dated February 13, 2006, to mitigate the impact of the construction 
3.18    and operation of the stadium. The board shall also establish a mitigation fund for the 
3.19    support of community initiatives that relate to the impacts of the operation of the stadium. 
3.20    On July 1, 2007, the university shall deposit $1,000,000 into a fund to be managed by the 
3.21    board. Income from the fund shall be made available exclusively to pay for mitigation 
3.22    activities. The use of the funds must be coordinated through the reconstituted stadium 
3.23    area advisory group.

3.24        Sec. 7. NEIGHBORHOOD IMPACT REPORT.
3.25    The Board of Regents and the city of Minneapolis are requested to work with the 
3.26    reconstituted stadium area advisory group described in the University of Minnesota 
3.27    On-Campus Football Stadium-Final EIS, dated February 13, 2006, to assess and prepare a 
3.28    report of the impact of the university on the surrounding community and the relationship 
3.29    of the community to the university. The report shall include, but not be limited to, an 
3.30    assessment of:
3.31    (1) the direct and indirect impacts of the university on the surrounding community, 
3.32    addressing issues of public safety, transportation, and housing quality, availability, and 
3.33    affordability;
4.1     (2) opportunities and strategies to improve coordination between the university, 
4.2     surrounding residential and business areas, and the city of Minneapolis;
4.3     (3) strategies for strengthening and revitalizing the neighborhoods and commercial 
4.4     business areas and supporting economic development; and 
4.5     (4) identification of the best practices and strategies for building partnerships among 
4.6     the stakeholders.
4.7     The report shall include consensus recommendations from the University of 
4.8     Minnesota, the city of Minneapolis, and the reconstituted stadium area advisory group for 
4.9     short- and long-term solutions to ongoing issues and concerns and shall include projected 
4.10    costs and benefits of the recommendations made. The report shall be submitted to the 
4.11    governor and the legislature by January 15, 2007.

4.12        Sec. 8. EMINENT DOMAIN.
4.13    The board may not acquire the fire station number 19 building for the construction 
4.14    of the stadium and related infrastructure, either directly or indirectly, through the exercise 
4.15    of the power of eminent domain.

4.16        Sec. 9. Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision 
4.17    to read:
4.18        Subd. 37. Construction materials; University of Minnesota football stadium.
 4.19    Materials, supplies, or equipment used or consumed in connection with the construction, 
4.20    equipping, or improvement of a football stadium constructed for use by the University 
4.21    of Minnesota are exempt. This subdivision expires one year after substantial completion 
4.22    of the football stadium.

4.23        Sec. 10. Minnesota Statutes 2004, section 340A.404, subdivision 4a, is amended to 
4.24    read:
4.25        Subd. 4a. State-owned recreation; entertainment facilities. Notwithstanding any 
4.26    other law, local ordinance, or charter provision, the commissioner may issue on-sale 
4.27    intoxicating liquor licenses:
4.28    (1) to the state agency administratively responsible for, or to an entity holding a 
4.29    concession or facility management contract with such agency for beverage sales at, the 
4.30    premises of any Giants Ridge Recreation Area building or recreational improvement area 
4.31    owned by the state in the town of White, St. Louis County;
4.32    (2) to the state agency administratively responsible for, or to an entity holding a 
4.33    concession or facility management contract with such agency for beverage sales at, the 
5.1     premises of any Ironworld Discovery Center building or facility owned by the state at 
5.2     Chisholm; and
5.3     (3) to the Board of Regents of the University of Minnesota for events at Northrop 
5.4     Auditorium and spectator suites and club facilities in any intercollegiate football stadium 
5.5     constructed by the university on its Minneapolis campus.
5.6     The commissioner shall charge a fee for licenses issued under this subdivision in an 
5.7     amount comparable to the fee for comparable licenses issued in surrounding cities.

5.8         Sec. 11. [473.5955] TERMINATION OF LEASE.
5.9     The lease between the Board of Regents of the University of Minnesota and the 
5.10    commission dated May 19, 1982, that requires the University of Minnesota football team 
5.11    to play its home football games at the Hubert H. Humphrey Metrodome until July 1, 
5.12    2012, may be terminated by the board and the commission effective on or after the date 
5.13    designated by the board as the date of completion of the stadium on the University of 
5.14    Minnesota's east bank campus in the city of Minneapolis.

5.15        Sec. 12. EFFECTIVE DATE.
5.16    Sections 1 to 11 are effective the day following final enactment.