SF 2460

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to higher education; providing a process for state support of a football
stadium at the University of Minnesota; requiring a report; appropriating money;
amending Minnesota Statutes 2004, sections 297A.71, by adding a subdivision;
340A.404, subdivision 4a; proposing coding for new law in Minnesota Statutes,
chapter 473.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to sections 2 to 8.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of finance.
new text end

new text begin Subd. 3. new text end

new text begin Stadium. new text end

new text begin "Stadium" means an athletic stadium suitable for intercollegiate
National Collegiate Athletic Association (NCAA) Division I football games and related
infrastructure improvements constructed on the University of Minnesota's east bank
campus in the city of Minneapolis.
new text end

new text begin Subd. 4. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Regents of the University of
Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Commission. new text end

new text begin "Commission" means the Metropolitan Sports Facilities
Commission.
new text end

Sec. 2. new text begin ACTIVITIES; CONTRACTS.
new text end

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

Sec. 3. new text begin ENVIRONMENTAL REVIEW.
new text end

new text begin The commissioner must not make an annual payment required by this act until the
board has completed an environmental review of the stadium project and the commissioner
determines that the board is performing the duties of the responsible governmental unit
as prescribed in the Minnesota Environmental Policy Act, Minnesota Statutes, chapter
116D, and the rules adopted under that chapter. The legislature ratifies the Environmental
Quality Board's designation of the board as a responsible governmental unit.
new text end

Sec. 4. new text begin CONDITIONS FOR PAYMENT TO THE UNIVERSITY.
new text end

new text begin Subdivision 1. new text end

new text begin Nonstate revenues required. new text end

new text begin Before the commissioner may make
the first payment to the board authorized in this section, the commissioner must certify
that the board has received at least $75,300,000 in pledges, gifts, sponsorships, and other
nonstate general fund revenue support for the construction of the stadium.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited funding sources. new text end

new text begin No part of the money required to be obtained
by the board under subdivision 1 may be derived from:
new text end

new text begin (1) increased fees or charges imposed on students attending the University of
Minnesota; or
new text end

new text begin (2) money paid by any nonpublic entity as consideration for the right to determine
the name of the stadium.
new text end

new text begin Subd. 3. new text end

new text begin Annual state payments; appropriation. new text end

new text begin On July 1 of each year after
certification by the commissioner, but no earlier than July 1, 2007, and for so long
thereafter as any bonds issued by the board for the construction of the stadium are
outstanding, the state must transfer to the board up to $12,900,000 to reimburse the board
for its stadium costs, provided that bonds issued to pay the state's share of the costs shall
not exceed $172,700,000.
new text end

new text begin Up to $12,900,000 is appropriated annually from the general fund for the purpose
of this section. The board must certify to the commissioner the amount of the annual
payments of principal and interest required to service bonds issued by the university for
the construction of the stadium, and the actual amount of the state's annual payment to the
university must equal the amount required to service the bonds representing the state's
share of the costs. Except to the extent of the annual appropriation described in this section,
the state is not required to pay any part of the cost of designing or constructing the stadium.
new text end

new text begin Subd. 4. new text end

new text begin Affordable student access. new text end

new text begin Before the first payment is made under
subdivision 3, the board must certify to the commissioner that a provision for affordable
access for university students to the university sporting events held at the football stadium
has been made.
new text end

new text begin Subd. 5. new text end

new text begin Name of stadium. new text end

new text begin No payment may be made under this section unless the
board agrees that the name of the stadium is "Veterans' Memorial Stadium."
new text end

Sec. 5. new text begin NO FULL FAITH AND CREDIT.
new text end

new text begin Any bonds or other obligations issued by the board under this act are not public debt
of the state, and the full faith and credit and the taxing powers of the state are not pledged
for their payment, or of any payments that the state agrees to make under this act.
new text end

Sec. 6. new text begin MITIGATION FUND.
new text end

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

Sec. 7. new text begin NEIGHBORHOOD IMPACT REPORT.
new text end

new text begin The Board of Regents and the city of Minneapolis are requested to work with the
reconstituted stadium area advisory group described in the University of Minnesota
On-Campus Football Stadium-Final EIS, dated February 13, 2006, to assess and prepare a
report of the impact of the university on the surrounding community and the relationship
of the community to the university. The report shall include, but not be limited to, an
assessment of:
new text end

new text begin (1) the direct and indirect impacts of the university on the surrounding community,
addressing issues of public safety, transportation, and housing quality, availability, and
affordability;
new text end

new text begin (2) opportunities and strategies to improve coordination between the university,
surrounding residential and business areas, and the city of Minneapolis;
new text end

new text begin (3) strategies for strengthening and revitalizing the neighborhoods and commercial
business areas and supporting economic development; and
new text end

new text begin (4) identification of the best practices and strategies for building partnerships among
the stakeholders.
new text end

new text begin The report shall include consensus recommendations from the University of
Minnesota, the city of Minneapolis, and the reconstituted stadium area advisory group for
short- and long-term solutions to ongoing issues and concerns and shall include projected
costs and benefits of the recommendations made. The report shall be submitted to the
governor and the legislature by January 15, 2007.
new text end

Sec. 8. new text begin EMINENT DOMAIN.
new text end

new text begin The board may not acquire the fire station number 19 building for the construction
of the stadium and related infrastructure, either directly or indirectly, through the exercise
of the power of eminent domain.
new text end

Sec. 9.

Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Construction materials; University of Minnesota football stadium.
new text end

new text begin Materials, supplies, or equipment used or consumed in connection with the construction,
equipping, or improvement of a football stadium constructed for use by the University
of Minnesota are exempt. This subdivision expires one year after substantial completion
of the football stadium.
new text end

Sec. 10.

Minnesota Statutes 2004, section 340A.404, subdivision 4a, is amended to
read:

Subd. 4a.

State-owned recreation; entertainment facilities.

Notwithstanding any
other law, local ordinance, or charter provision, the commissioner may issue on-sale
intoxicating liquor licenses:

(1) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Giants Ridge Recreation Area building or recreational improvement area
owned by the state in the town of White, St. Louis County;

(2) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Ironworld Discovery Center building or facility owned by the state at
Chisholm; and

(3) to the Board of Regents of the University of Minnesota for events at Northrop
Auditorium new text begin and spectator suites and club facilities in any intercollegiate football stadium
constructed by the university on its Minneapolis campus new text end .

The commissioner shall charge a fee for licenses issued under this subdivision in an
amount comparable to the fee for comparable licenses issued in surrounding cities.

Sec. 11.

new text begin [473.5955] TERMINATION OF LEASE.
new text end

new text begin The lease between the Board of Regents of the University of Minnesota and the
commission dated May 19, 1982, that requires the University of Minnesota football team
to play its home football games at the Hubert H. Humphrey Metrodome until July 1,
2012, may be terminated by the board and the commission effective on or after the date
designated by the board as the date of completion of the stadium on the University of
Minnesota's east bank campus in the city of Minneapolis.
new text end

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective the day following final enactment.
new text end