HF 2513

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to a baseball park; financing a major league 
  1.3             professional baseball park; requiring private funding; 
  1.4             providing for an interest-free loan; providing for a 
  1.5             temporary tax-free zone on certain retail sales; 
  1.6             providing for disposition of the metrodome and the 
  1.7             land it occupies under certain conditions; 
  1.8             transferring funds from the assigned risk plan; 
  1.9             requiring enhanced revenue sharing by major league 
  1.10            baseball for act to take effect; appropriating money; 
  1.11            amending Minnesota Statutes 2000, sections 272.02, by 
  1.12            adding a subdivision; 297A.67, by adding a 
  1.13            subdivision; 297A.71, by adding a subdivision; 
  1.14            proposing coding for new law in Minnesota Statutes, 
  1.15            chapter 116J. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  [FINDINGS AND INTENT.] 
  1.18     The legislature finds that major league baseball has value 
  1.19  to the citizens and economy of this state.  The legislature 
  1.20  further finds that this value can and should be protected 
  1.21  through the construction of a new baseball park to ensure the 
  1.22  successful continuation of major league baseball in Minnesota.  
  1.23  The legislature finds that this goal requires a public/private 
  1.24  partnership.  It is therefore the intention of the legislature 
  1.25  to support the construction of a baseball park to be 
  1.26  substantially financed with private support. 
  1.27     Sec. 2.  [PURPOSE.] 
  1.28     This act is designed to provide tax incentives to encourage 
  1.29  and stimulate private investment in a publicly owned baseball 
  1.30  park.  The goal of this act is to limit the total cost of public 
  2.1   assistance in this act, including the tax-free zone and interest 
  2.2   foregone on the interest-free loan, to an amount less than the 
  2.3   increased revenues to the state from enhanced income tax 
  2.4   payments from major league baseball over the life of the 
  2.5   baseball park.  It is a further purpose of this act to move 
  2.6   major league baseball towards a revenue sharing agreement and an 
  2.7   economic system that makes baseball more competitive and 
  2.8   protects the financial interest of teams with below average 
  2.9   revenues.  Therefore, this act shall not become effective until 
  2.10  a determination is made that major league baseball and the major 
  2.11  league baseball players' association have created a new 
  2.12  financial structure requiring the league to ensure 
  2.13  competitiveness among all major league baseball teams and 
  2.14  thereby enhancing the viability of any new baseball park.  
  2.15     Sec. 3.  [116J.425] [SELECTION PROCESS; BASEBALL PARK.] 
  2.16     (a) The commissioner of trade and economic development 
  2.17  shall select a unit of local government to provide a site for 
  2.18  the new baseball park. 
  2.19     (b) The required elements of the selection process are: 
  2.20     (1) the commissioner of trade and economic development 
  2.21  shall accept bids from any interested unit of local government 
  2.22  within the geographical boundaries of the metropolitan council; 
  2.23     (2) acceptable bids must provide, at a minimum, for the 
  2.24  provision of land, in a condition appropriate for development, 
  2.25  and the provision of sufficient adjacent parking facilities to 
  2.26  be made available for use by the team; 
  2.27     (3) bids may include other subsidies and private or public 
  2.28  improvements for the enhancement of the baseball park; 
  2.29     (4) the bid must specify the intent of the unit of local 
  2.30  government to own and operate the baseball park and demonstrate 
  2.31  a reasonable capacity to do so; 
  2.32     (5) in selecting a site, the commissioner of trade and 
  2.33  economic development shall consider public infrastructure costs 
  2.34  and significant potential development advantages; and 
  2.35     (6) the commissioner of trade and economic development 
  2.36  shall end the acceptance of bids three months after this act is 
  3.1   made effective by the determination under section 116J.4291 and 
  3.2   shall select a site for a new baseball park within five months 
  3.3   after this act is made effective by that determination.  
  3.4      Sec. 4.  [116J.426] [FINANCING.] 
  3.5      Subdivision 1.  [PRIVATE FUNDING.] At least one-half of the 
  3.6   cost of the baseball park must be funded by the owner of the 
  3.7   major league professional baseball team or through other private 
  3.8   sector funding.  The local unit of government and private 
  3.9   investors shall jointly own the baseball park, and the major 
  3.10  league professional baseball team shall be a tenant in the 
  3.11  baseball park for a term of not less than 30 years.  The total 
  3.12  cost of the baseball park, not including land and parking 
  3.13  development, shall not exceed $300,000,000. 
  3.14     Subd 2.  [INTEREST-FREE LOAN.] (a) The commissioner of 
  3.15  trade and economic development shall provide an interest-free 
  3.16  loan, in the amount of $140,000,000, from the baseball park 
  3.17  revolving loan fund created under section 116J.427 to the unit 
  3.18  of local government selected to own the new baseball park to be 
  3.19  repaid by the owner of the major league professional baseball 
  3.20  team into the baseball park revolving loan fund.  The 
  3.21  commissioner shall provide these funds to the unit of local 
  3.22  government when funds from the professional baseball team 
  3.23  specified under subdivision 1 are made available to that unit of 
  3.24  government. 
  3.25     (b) Scheduled dates for the repayment of the loan shall 
  3.26  begin one year after the first baseball game is played in the 
  3.27  new baseball park or two years from the date of substantial 
  3.28  completion, whichever is later, and shall be repaid under terms 
  3.29  to be agreed to in a contract to be signed with the major league 
  3.30  baseball team and the commissioner of trade and economic 
  3.31  development.  The loan shall be guaranteed by the full faith and 
  3.32  credit of the major league baseball team and must be repaid 
  3.33  within 30 years after the date the first payment is due. 
  3.34     (c) If insufficient funds exist in the baseball park 
  3.35  revolving loan fund to make the full loan under this 
  3.36  subdivision, the commissioner shall make a partial loan of such 
  4.1   funds as are available and shall complete the loan with funds 
  4.2   received by the baseball park fund at a later date, including, 
  4.3   if necessary, funds available under section 116J.427, 
  4.4   subdivision 3. 
  4.5      Subd. 3.  [CONSTRUCTION.] The major league professional 
  4.6   baseball team shall construct the baseball park and shall be 
  4.7   responsible for all cost overruns that may occur.  All funds 
  4.8   appropriated to the unit of local government under this act 
  4.9   shall be managed by the unit of local government and made 
  4.10  available to the team as the team deems necessary for 
  4.11  construction purposes. 
  4.12     Sec. 5.  [116J.427] [BASEBALL PARK REVOLVING LOAN FUND.] 
  4.13     Subdivision 1.  [CREATION.] A baseball park revolving loan 
  4.14  fund is created as an account within the special revenue fund. 
  4.15     Subd. 2.  [ASSIGNED RISK PLAN TRANSFER.] The commissioner 
  4.16  of finance shall transfer $73,000,000 from the assigned risk 
  4.17  plan created under section 79.252 to the baseball park revolving 
  4.18  loan fund one week after this act is made effective under 
  4.19  section 116J.431.  In January each year, and in July 2005, the 
  4.20  commissioner of finance shall continue to transfer to the 
  4.21  baseball park fund any excess reserves that accrue to the 
  4.22  assigned risk plan until June 30, 2005.  Any unreserved balance 
  4.23  in excess of $48,000,000 in the assigned risk plan as of 
  4.24  December 31 each year and as of June 30, 2005, is defined as 
  4.25  excess reserves for purposes of this subdivision.  Funds from 
  4.26  the repayment of the loan made under section 116J.426, 
  4.27  subdivision 2, are to be transferred to the assigned risk plan 
  4.28  by the commissioner to repay all funds transferred from the 
  4.29  assigned risk plan under this section. 
  4.30     Subd. 3.  [STATE TRANSFER.] On January 15, 2004, the 
  4.31  commissioner of finance shall transfer from the general fund to 
  4.32  the baseball park revolving loan fund any necessary funds 
  4.33  required to complete the no-interest loan under section 
  4.34  116J.426, subdivision 2.  The commissioner shall assess the 
  4.35  amount of funds in the baseball park revolving loan fund on that 
  4.36  date, and the amount of the partial no-interest loan already 
  5.1   made under this act, and shall transfer the minimum necessary to 
  5.2   allow the commissioner of trade and economic development to 
  5.3   complete the loan on that date. 
  5.4      Subd. 4.  [NAMING RIGHTS.] Naming rights from the major 
  5.5   league baseball park shall be sold by the unit of local 
  5.6   government that owns the baseball park.  Revenues from that sale 
  5.7   are to be retained by the unit of local government and must be 
  5.8   used for operating costs of the baseball park.  Any excess 
  5.9   revenues after operating costs are compensated for must be held 
  5.10  by the unit of government in a reserve account, and used for 
  5.11  long-term refurbishment of the baseball park. 
  5.12     Sec. 6.  [116J.428] [OBLIGATIONS; MAJOR LEAGUE PROFESSIONAL 
  5.13  BASEBALL TEAM.] 
  5.14     Subdivision 1.  [OBLIGATIONS PRIOR TO STATE 
  5.15  ASSISTANCE.] (a) The major league professional baseball team 
  5.16  must fully and completely do its part to accomplish the 
  5.17  requirements of paragraph (b) before it receives any state 
  5.18  assistance. 
  5.19     (b) The requirements are that: 
  5.20     (1) a signed lease for not less than 30 years between the 
  5.21  unit of local government selected by the council and the major 
  5.22  league professional baseball team must be completed, with no 
  5.23  escape clauses; 
  5.24     (2) the commissioner of finance must certify that the major 
  5.25  league professional baseball team can and will make available 
  5.26  $150,000,000 in private cash support to the local unit of 
  5.27  government for the construction of a baseball park; and 
  5.28     (3) the major league baseball team has signed an agreement 
  5.29  with the unit of local government agreeing to allow the baseball 
  5.30  park to be available on nongame days for potential use by the 
  5.31  University of Minnesota, Minnesota state colleges and 
  5.32  universities, private colleges, and the state high school league.
  5.33     Subd. 2.  [OBLIGATIONS DURING CONSTRUCTION.] (a) The major 
  5.34  league professional baseball team has the obligations in 
  5.35  paragraph (b) during the period of construction of a baseball 
  5.36  park. 
  6.1      (b) The obligations are: 
  6.2      (1) the payment of prevailing wage levels as defined under 
  6.3   section 177.42 to all construction workers; 
  6.4      (2) the provision to the commissioner of trade and economic 
  6.5   development of a signed agreement between the professional 
  6.6   baseball team and the construction unions that will work on the 
  6.7   new baseball park that mandates a no-strike and no-lockout 
  6.8   period during construction of the baseball park; and 
  6.9      (3) the payment of any cost overruns that occur during the 
  6.10  construction period. 
  6.11     Sec. 7.  [116J.429] [OBLIGATIONS; DEPARTMENT OF TRADE AND 
  6.12  ECONOMIC DEVELOPMENT.] 
  6.13     The commissioner of trade and economic development shall 
  6.14  negotiate and sign a contract, on behalf of the state, to 
  6.15  include: 
  6.16     (1) a schedule for repayment of the loan made under section 
  6.17  116J.426, subdivision 2; and 
  6.18     (2) a guarantee by the state, enforceable in a court of 
  6.19  law, that the state will provide the remaining loan funds 
  6.20  specified under section 116J.427, subdivision 3. 
  6.21     Sec. 8.  [116J.4291] [ACT NOT MADE EFFECTIVE UNTIL 
  6.22  DETERMINATION.] 
  6.23     (a) The governor shall appoint a special panel consisting 
  6.24  of three retired state court judges.  This special panel shall 
  6.25  receive and review any information from major league baseball 
  6.26  and shall make the determination under paragraph (b). 
  6.27     (b) Sections 1 to 10 of this act are effective the day 
  6.28  following the delivery to the governor by the special panel of a 
  6.29  statement that in the view of a majority of the panel, major 
  6.30  league baseball and the major league baseball players' 
  6.31  association have agreed upon a new economic system including 
  6.32  enhanced revenue sharing that makes baseball more competitive, 
  6.33  protects the financial interest of teams with below average 
  6.34  revenues, and enhances the viability of any new baseball park. 
  6.35     Sec. 9.  Minnesota Statutes 2000, section 272.02, is 
  6.36  amended by adding a subdivision to read: 
  7.1      Subd. 45.  [BASEBALL PARK.] Real or personal property 
  7.2   acquired, owned, leased, controlled, used, or occupied as a 
  7.3   baseball park site by a major league professional baseball team 
  7.4   is exempt from taxation but the property is subject to special 
  7.5   assessments levied by a political subdivision for a local 
  7.6   improvement in amounts proportionate to and not exceeding the 
  7.7   special benefit received by the property from the improvement.  
  7.8   A use of the property in any manner different from its use under 
  7.9   sections 116J.425 to 116J.4291 at the time must not be 
  7.10  considered in determining the special benefit received by the 
  7.11  properties.  Notwithstanding section 272.01, subdivision 2, or 
  7.12  273.19, real or personal property at the site of the baseball 
  7.13  park leased by the local unit of government that operates the 
  7.14  baseball park to another person for uses related to the purposes 
  7.15  of sections 116J.425 to 116J.4291 is exempt from taxation 
  7.16  regardless of the length of the lease.  This subdivision shall 
  7.17  expire one month after repayment of the loan made under section 
  7.18  116J.426, subdivision 2. 
  7.19     Sec. 10.  Minnesota Statutes 2000, section 297A.67, is 
  7.20  amended by adding a subdivision to read: 
  7.21     Subd. 26.  [BASEBALL PARK TAX-FREE ZONE.] Sales of 
  7.22  admissions, tangible personal property, novelties, food, 
  7.23  beverages, parking services, club seats and suites, advertising, 
  7.24  and other retail sales at the site of the baseball park 
  7.25  constructed under section 116J.426 are exempt from all state and 
  7.26  local sales taxes.  This subdivision shall expire one month 
  7.27  after repayment of the loan made under section 116J.426, 
  7.28  subdivision 2. 
  7.29     Sec. 11.  Minnesota Statutes 2000, section 297A.71, is 
  7.30  amended by adding a subdivision to read: 
  7.31     Subd. 23.  [CONSTRUCTION MATERIALS; BASEBALL 
  7.32  PARK.] Materials, supplies, or equipment used or consumed in the 
  7.33  construction, equipment, or improvement of the baseball park 
  7.34  constructed under sections 116J.425 to 116J.4291, are exempt. 
  7.35     Sec. 12.  [REFERENCE TO EFFECTIVE DATE.] 
  7.36     This act is effective as provided in Minnesota Statutes, 
  8.1   section 116J.4291.