HF 2

2nd Engrossment - 80th Legislature, 1997 3rd Special Session

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to public administration; providing for a 
  1.3             process to construct, fund, maintain, and govern a 
  1.4             major league baseball park; providing for powers, 
  1.5             duties, and membership of the metropolitan sports 
  1.6             facilities commission; authorizing certain revenue 
  1.7             distributions, bonds and other debt obligations, and 
  1.8             allocations; proposing an amendment to the Minnesota 
  1.9             Constitution, article XI; amending Minnesota Statutes 
  1.10            1996, sections 473.551, subdivision 1, and by adding 
  1.11            subdivisions; and 473.553, subdivisions 2, 3, 4, and 
  1.12            5; proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 473; repealing Minnesota Statutes 1996, 
  1.14            section 473.553, subdivision 14. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16                             ARTICLE 1 
  1.17                     BASEBALL PARK CONSTRUCTION 
  1.18     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.19  subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [TERMS.] For the purposes of sections 
  1.21  473.551 to 473.599 473.5996, the following terms shall have the 
  1.22  meanings given in this section. 
  1.23     Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  1.24  amended by adding a subdivision to read: 
  1.25     Subd. 18.  [BASEBALL FACILITY.] "Baseball facility" means 
  1.26  the major league professional baseball stadium, constructed 
  1.27  pursuant to this act and owned by the commission. 
  1.28     Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  1.29  amended by adding a subdivision to read: 
  1.30     Subd. 19.  [BASEBALL TEAM.] "Baseball team" means the 
  2.1   professional major league baseball team. 
  2.2      Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 20.  [REVENUES OF THE BASEBALL TEAM.] "Revenues of 
  2.5   the baseball team" means all revenues of the baseball team from 
  2.6   whatever source, including, but not limited to, any revenues 
  2.7   from baseball facility naming rights, sales of personal seat 
  2.8   licenses and club seats, private suite leases, concessions, 
  2.9   signage, parking, and ticket sales. 
  2.10     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 21.  [OWNER.] "Owner" means the individual or 
  2.13  individuals acting in concert, or other legal entity, who 
  2.14  directly or indirectly owns at least a majority or controlling 
  2.15  interest in the baseball team. 
  2.16     Sec. 6.  [473.5991] [BASEBALL FACILITY.] 
  2.17     Subdivision 1.  [LOCATION; OWNERSHIP; OPERATION.] The 
  2.18  commission shall construct a baseball facility that is located 
  2.19  within the metropolitan area, owned by the commission, and 
  2.20  operated by the baseball team and its owner. 
  2.21     Subd. 2.  [SITE SELECTION; DESIGN; CONSTRUCTION TEAM.] The 
  2.22  commission and the owner, by mutual agreement, must select a 
  2.23  site for the baseball facility and must determine the program 
  2.24  elements of the baseball facility, including capacity, suites, 
  2.25  club seats, clubs, and amenities.  The commission and the owner, 
  2.26  by mutual agreement, must also determine the baseball facility 
  2.27  design, including whether or not to include a retractable roof 
  2.28  on the facility, and the selection of the construction team, 
  2.29  including the architect and general contractor. 
  2.30     Subd. 3.  [CAPITAL REPAIR; IMPROVEMENTS.] The commission is 
  2.31  responsible for capital repairs and improvements necessary to 
  2.32  maintain the baseball facility.  To the extent the costs to 
  2.33  maintain the facility exceed the funds in the capital 
  2.34  improvement fund, the commission and the owner shall agree on 
  2.35  the improvements to be made. 
  2.36     Sec. 7.  [473.5992] [DETERMINATIONS REQUIRED BEFORE 
  3.1   CONSTRUCTION BONDS ISSUED.] 
  3.2      Subdivision 1.  [SCOPE.] The commission shall determine 
  3.3   that everything required by this section has been done before it 
  3.4   authorizes the issuance of bonds for construction of the 
  3.5   baseball facility. 
  3.6      Subd. 2.  [30-YEAR USE AGREEMENT; ORGANIZATIONAL 
  3.7   DECISIONS.] (a) The commission must execute agreements with the 
  3.8   owner to use the commission's facilities for all scheduled 
  3.9   regular season and postseason home games for a period of no less 
  3.10  than 30 years, and the owner has agreed to pay baseball team 
  3.11  revenues to the debt service fund as provided in section 10, 
  3.12  subdivision 2.  The agreements shall afford to the commission or 
  3.13  other public entity, as the commission deems appropriate, the 
  3.14  remedies that are deemed necessary and appropriate to provide 
  3.15  reasonable assurances that the team and the owner will comply 
  3.16  with the agreements.  The remedies may include the payment of 
  3.17  liquidated damages equivalent to direct and consequential 
  3.18  damages incurred by reason of the breach of the agreements and 
  3.19  any additional remedies or security arrangements the commission 
  3.20  reasonably determines to be effective in accomplishing the 
  3.21  purpose of this subdivision.  The baseball team and its owner 
  3.22  must provide information sufficient to satisfy the commission of 
  3.23  the team's and the owner's ability to comply with the terms of 
  3.24  the 30-year use agreement. 
  3.25     (b) The commission and the owner must agree to the right of 
  3.26  the commission to approve all major organizational decisions, 
  3.27  including sale of the ownership interest in the team, or a 
  3.28  change in location of the team. 
  3.29     Subd. 3.  [REVENUES TO BE SUFFICIENT.] Two independent, 
  3.30  professional economic analyses must conclude that the 
  3.31  anticipated amount to be deposited in the debt service fund 
  3.32  under section 9 is an amount sufficient to pay when due all debt 
  3.33  service, plus all administrative, operating, and maintenance 
  3.34  expense and the owner must pledge and secure as necessary an 
  3.35  amount sufficient to pay when due all debt service on the 
  3.36  revenue bonds issued under this act. 
  4.1      Subd. 4.  [COMMISSION'S RIGHT TO TITLE OF PROPERTY.] The 
  4.2   commission must acquire, or contract to acquire, title to all 
  4.3   real property including all easements and other appurtenances 
  4.4   needed for the construction and operation of the baseball 
  4.5   facility and enter into agreements sufficient in the judgment of 
  4.6   the commission to ensure the receipt of funds, at the time and 
  4.7   in the amount required, to make any payment upon which the 
  4.8   commission's acquisition of title and possession of the real 
  4.9   property is conditioned. 
  4.10     Subd. 5.  [SUFFICIENT FUNDS FOR CLEARING PROPERTY.] The 
  4.11  commission must enter into agreements sufficient in the judgment 
  4.12  of the commission to ensure the receipt of funds, at the time 
  4.13  and in the amount required, to pay all costs, except as provided 
  4.14  in this section, of clearing the real property needed for the 
  4.15  construction and operation of the baseball facility of all 
  4.16  buildings, railroad tracks, and other structures including, 
  4.17  without limitation, all relocation costs including utility 
  4.18  relocation costs and all legal costs. 
  4.19     Subd. 6.  [NO STRIKES OR LOCKOUTS.] The commission must 
  4.20  execute agreements with appropriate labor organizations and 
  4.21  construction contractors that provide that no labor strikes or 
  4.22  management lockouts will delay construction. 
  4.23     Subd. 7.  [GUARANTEED MAXIMUM PRICE.] The commission must 
  4.24  execute agreements to provide for the construction of the 
  4.25  baseball facility for a guaranteed maximum price and substantial 
  4.26  completion date of April 1, 2001, and that include performance 
  4.27  bonds in an amount at least equal to 100 percent of the 
  4.28  guaranteed maximum price to cover any costs that may be incurred 
  4.29  over and above the guaranteed maximum price, including, but not 
  4.30  limited to, costs incurred by the commission or loss of revenues 
  4.31  resulting from incomplete construction on the substantial 
  4.32  completion date. 
  4.33     Subd. 8.  [OWNER TO OPERATE FACILITY.] The commission and 
  4.34  the owner must execute agreements that provide for the operation 
  4.35  and maintenance of the baseball facility.  The agreements must 
  4.36  provide that: 
  5.1      (1) the owner, in consultation with the commission, must 
  5.2   provide for management of the baseball facility and may contract 
  5.3   with one or more entities to operate part or all of the baseball 
  5.4   facility; and 
  5.5      (2) the owner, in consultation with the commission, may 
  5.6   contract with one or more concessionaires to provide food and 
  5.7   beverages for the baseball facility. 
  5.8      Subd. 9.  [KNOTHOLE DAY.] The commission must obtain 
  5.9   assurance from the owner that knothole day tickets will be 
  5.10  available for every home game.  A knothole day ticket must 
  5.11  permit one free admission of a person age 14 or under when 
  5.12  accompanied by an adult person with a paid admission. 
  5.13     Sec. 8.  [473.5993] [DEBT FINANCING.] 
  5.14     Subdivision 1.  [PURPOSES.] The commission may by 
  5.15  resolution authorize the issuance and sale of its taxable 
  5.16  revenue bonds in a principal amount that does not exceed 
  5.17  $300,000,000 for the following purposes: 
  5.18     (1) to provide funds for site assembly and construction of 
  5.19  the baseball facility by the commission under this section, to 
  5.20  establish necessary debt service reserves, and to pay issuance 
  5.21  costs and costs of credit enhancement for the bonds, if any; 
  5.22     (2) to refund bonds issued under this section; 
  5.23     (3) to fund judgments entered by any court against the 
  5.24  commission or against the commission in matters relating to the 
  5.25  commission's functions related to the baseball facility; and 
  5.26     (4) to fund a debt service reserve, provided that no more 
  5.27  than $50,000,000 of the bond proceeds may be used for this 
  5.28  purpose. 
  5.29     Subd. 2.  [PROCEDURE.] The bonds shall be sold, issued, and 
  5.30  secured in the manner provided in chapter 475 for bonds payable 
  5.31  solely from revenues and the commission shall have the same 
  5.32  powers and duties as a municipality and its governing body in 
  5.33  issuing bonds under that chapter.  The bonds may be sold at any 
  5.34  price and at public or private sale as determined by the 
  5.35  commission.  They shall be payable solely from revenues 
  5.36  described in section 9.  The bonds shall not be a general or 
  6.1   moral obligation or debt of the commission, any other political 
  6.2   subdivision of the state, or the state, and shall not be 
  6.3   included in the net debt of any city, county, or other 
  6.4   subdivision of the state for the purpose of any net debt 
  6.5   limitation.  No election is required. 
  6.6      Subd. 3.  [REVENUE ANTICIPATION CERTIFICATES.] In 
  6.7   anticipation of the revenues of the commission provided for in 
  6.8   this act, but subject to any limitation or prohibition in a bond 
  6.9   resolution or indenture, the council may authorize the issuance, 
  6.10  negotiation, and sale, in the form and manner and upon the terms 
  6.11  as it may determine, of revenue anticipation certificates.  The 
  6.12  principal amount of the certificates outstanding shall at no 
  6.13  time exceed 25 percent of the total amount of the revenues 
  6.14  anticipated.  The certificates shall mature not later than three 
  6.15  months after the close of the budget year.  As much of the 
  6.16  anticipated baseball facility revenues as may be needed for the 
  6.17  payment of the certificates and interest on them shall be paid 
  6.18  into a special debt service fund established for the 
  6.19  certificates in the commission's financial records.  If for any 
  6.20  reason the anticipated revenues are insufficient, the 
  6.21  certificates and interest shall be paid from the first revenues 
  6.22  received, subject to any limitation or prohibition in a bond 
  6.23  resolution or indenture.  The proceeds of the certificates may 
  6.24  be used for any purpose for which the anticipated revenues may 
  6.25  be used or for any purpose for which bond proceeds under 
  6.26  subdivision 1 may be used. 
  6.27     Subd. 4.  [VALIDITY OF DEBT ISSUED.] The validity of any 
  6.28  bonds issued under this section and the obligations of the 
  6.29  commission related to them, must not be conditioned upon or 
  6.30  impaired by the commission's determinations made under section 
  6.31  7.  For the purposes of issuing bonds, the determinations made 
  6.32  by the commission are conclusive, and the commission is 
  6.33  obligated for the security and payment of the bonds, but only 
  6.34  from the sources pledged to them, irrespective of determinations 
  6.35  that may be erroneous, inaccurate, or otherwise mistaken. 
  6.36     Subd. 5.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
  7.1   under this section, the commission must enter into an agreement 
  7.2   with the brokerage firm to be used in connection with the 
  7.3   issuance and sale of the bonds or revenue anticipation 
  7.4   certificates under this section, guaranteeing that fees and 
  7.5   charges payable to the brokerage firm under the agreement, 
  7.6   including any underwriting discounts, do not exceed fees and 
  7.7   charges customarily payable in connection with the issuance and 
  7.8   sale of bonds or revenue anticipation certificates. 
  7.9      Subd. 6.  [NO STATE GENERAL OBLIGATIONS.] Revenue bonds 
  7.10  that are issued, sold, and secured under this act are not an 
  7.11  obligation of the state.  Bonds issued and sold by the 
  7.12  commission under this act are payable solely from revenues of 
  7.13  the baseball facility.  The state shall not assume any 
  7.14  obligation or liability for bonds issued or sold under this act. 
  7.15     Sec. 9.  [473.5994] [USE OF BASEBALL TEAM REVENUES.] 
  7.16     By March 1 of 1998 and each subsequent year, the owner 
  7.17  shall determine the revenues of the baseball team for the 
  7.18  previous calendar year.  To the extent those revenues exceed the 
  7.19  revenues of the baseball team from the 1996 calendar year, 
  7.20  increased by the percentage increase in the most recent consumer 
  7.21  price index for all-urban consumers published by the department 
  7.22  of labor over the index for 1996, the owner must deposit the 
  7.23  excess revenues in the debt service fund, except as provided in 
  7.24  section 10, subdivision 3. 
  7.25     Sec. 10.  [473.5995] [COMMISSION FINANCES RELATED TO 
  7.26  BASEBALL STADIUM.] 
  7.27     Subdivision 1.  [BUDGET; COUNCIL REVIEW AND APPROVAL.] (a) 
  7.28  The commission shall prepare a proposed baseball stadium-related 
  7.29  budget by August 1 of each year.  The budget shall include the 
  7.30  baseball facility revenues and expenditures.  The budget must 
  7.31  show the estimated capital improvement fund revenues and 
  7.32  expenditures, and the debt service costs and outstanding debt of 
  7.33  the commission related to site assembly and construction of the 
  7.34  baseball facility. 
  7.35     (b) Before August 15 of each year, the commission shall 
  7.36  hold a public hearing on a draft of the proposed budget after 
  8.1   reasonable public notice. 
  8.2      (c) The commission shall approve or disapprove the budget 
  8.3   by October 1 of each year. 
  8.4      (d) Before December 15 of each year, the commission shall 
  8.5   by resolution adopt a final budget and file it with the 
  8.6   metropolitan council before December 20. 
  8.7      Subd. 2.  [DEBT SERVICE FUND.] As provided in section 9, 
  8.8   the commission must establish a debt service fund in which to 
  8.9   deposit funds the commission receives to ensure payment of any 
  8.10  debt issued by the metropolitan council under this act. 
  8.11     Subd. 3.  [CAPITAL REPAIR AND IMPROVEMENT FUND.] The 
  8.12  commission must establish a baseball facility capital repair and 
  8.13  improvement account in which to deposit revenues received from 
  8.14  gross revenues of the team not required to be deposited in the 
  8.15  debt service fund, in an amount to be mutually agreed to by the 
  8.16  owner and the commission as sufficient for this purpose.  The 
  8.17  money in this account may be used by the commission to make 
  8.18  capital repairs to and improvements of the baseball facility. 
  8.19     Subd. 4.  [EXCESS REVENUES TO TEAM.] Any revenues of the 
  8.20  baseball team that are not required to be paid into the debt 
  8.21  service fund under subdivision 2 or the capital repair and 
  8.22  improvement fund under subdivision 3, shall remain with the 
  8.23  baseball team. 
  8.24     Sec. 11.  [473.5996] [OPERATION OF BASEBALL FACILITY TO BE 
  8.25  SELF-SUPPORTING.] 
  8.26     (a) The legislature intends that the admissions, rates, 
  8.27  rentals, and other charges imposed in the operation of the 
  8.28  baseball facility permit the baseball facility to be 
  8.29  self-supporting in its construction and operations.  No state or 
  8.30  local government funds shall be contributed to the baseball team 
  8.31  or the commission for the support of the baseball facility. 
  8.32     (b) The legislature intends that, other than agreeing to 
  8.33  the use of increased revenues of the baseball team, the owner is 
  8.34  not required to make any contribution to the cost of 
  8.35  construction of the baseball facility. 
  8.36     Sec. 12.  [EFFECTIVE DATE.] 
  9.1      Sections 1 to 11 are effective the day following final 
  9.2   enactment. 
  9.3                              ARTICLE 2 
  9.4                       CONSTITUTIONAL AMENDMENT 
  9.5      Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  9.6      An amendment is proposed to the Minnesota Constitution, 
  9.7   article XI.  If the amendment is adopted, article XI will be 
  9.8   amended by adding a section to read: 
  9.9      Sec. 15.  A Minnesota sports, recreation, and arts fund is 
  9.10  established in the state treasury.  Money in the fund must be 
  9.11  spent, as provided by law, for facilities for professional 
  9.12  sports and community-based athletic, recreational, and arts 
  9.13  facilities.  Thirty percent of the net proceeds from any 
  9.14  state-operated lottery must be credited to the fund until June 
  9.15  30, 2020. 
  9.16     Sec. 2.  [SUBMISSION TO VOTERS.] 
  9.17     The amendment proposed in section 1 shall be submitted to 
  9.18  the people at the 1998 general election.  The question submitted 
  9.19  shall be: 
  9.20     "Without reducing the 40 percent for the Minnesota 
  9.21  environment and natural resources trust fund, shall the 
  9.22  Minnesota Constitution be amended to require 30 percent of state 
  9.23  lottery revenues to be used to finance facilities for 
  9.24  professional sports, community sports, recreation, and arts 
  9.25  until the year 2020? 
  9.26                                     Yes .......
  9.27                                     No ........
  9.28     Voting yes may result in reductions in funds available for 
  9.29  education funding, nursing homes, or property tax relief." 
  9.30                             ARTICLE 3 
  9.31                             GOVERNANCE 
  9.32     Section 1.  Minnesota Statutes 1996, section 473.553, 
  9.33  subdivision 2, is amended to read: 
  9.34     Subd. 2.  [MEMBERSHIP.] The commission shall consist of six 
  9.35  16 members, plus a chair appointed as provided in subdivision 3, 
  9.36  13 of whom shall be voting members and four of whom shall be 
 10.1   nonvoting members.  
 10.2      (a) Six voting members shall be appointed by the city 
 10.3   council of the city in which the stadium metrodome is located 
 10.4   plus a chair appointed as provided in subdivision 3.  If the 
 10.5   baseball park is located other than in the city of Minneapolis, 
 10.6   then three voting members shall be appointed by the city council 
 10.7   of the city of Minneapolis, and three voting members shall be 
 10.8   appointed by the city council of the city in which the baseball 
 10.9   park is located.  
 10.10     (b) Six voting members from the metropolitan area shall be 
 10.11  appointed by the governor.  The governor's appointees shall 
 10.12  reflect fairly the various interests throughout the metropolitan 
 10.13  area that are affected by the commission's ownership and 
 10.14  operation of the metrodome and baseball park.  
 10.15     (c) Four nonvoting members shall be legislators, two state 
 10.16  representatives and two state senators.  One state 
 10.17  representative shall be appointed by the speaker of the house 
 10.18  and one state representative shall be appointed by the minority 
 10.19  caucus leader.  The two state senators shall be appointed by the 
 10.20  subcommittee on committees of the senate committee on rules and 
 10.21  administration. 
 10.22     Sec. 2.  Minnesota Statutes 1996, section 473.553, 
 10.23  subdivision 3, is amended to read: 
 10.24     Subd. 3.  [CHAIR.] The chair shall be appointed by the 
 10.25  governor as the ninth 13th voting member and shall meet all of 
 10.26  the qualifications of a member, except the chair need only 
 10.27  reside outside the city of Minneapolis.  The chair shall preside 
 10.28  at all meetings of the commission, if present, and shall perform 
 10.29  all other duties and functions assigned by the commission or by 
 10.30  law.  The commission may appoint from among its members a 
 10.31  vice-chair to act for the chair during temporary absence or 
 10.32  disability. 
 10.33     Sec. 3.  Minnesota Statutes 1996, section 473.553, 
 10.34  subdivision 4, is amended to read: 
 10.35     Subd. 4.  [QUALIFICATIONS.] A voting member shall not 
 10.36  during a term of office hold the office of metropolitan council 
 11.1   member or be a member of another metropolitan agency or hold any 
 11.2   judicial office or office of state government.  None of the 
 11.3   members appointed by the city council of the city in which 
 11.4   the stadium metrodome is located shall be an elected public 
 11.5   official of that city or of another political subdivision any 
 11.6   part of whose territory is shared with that city.  Each member 
 11.7   shall qualify by taking and subscribing the oath of office 
 11.8   prescribed by the Minnesota Constitution, article V, section 6.  
 11.9   The oath, duly certified by the official administering it, shall 
 11.10  be filed with the chair of the metropolitan council.  
 11.11     Sec. 4.  Minnesota Statutes 1996, section 473.553, 
 11.12  subdivision 5, is amended to read: 
 11.13     Subd. 5.  [TERMS.] The terms of three the voting members 
 11.14  shall end the first Monday in January in the year ending in the 
 11.15  numeral "5".  The terms of the other members and the chair shall 
 11.16  end the first Monday in January in the year ending in the 
 11.17  numeral "7".  The term of each member and the chair, shall be 
 11.18  four years.  The terms shall continue until a successor is 
 11.19  appointed and qualified.  Members may be removed only for 
 11.20  cause.  Each nonvoting member appointed as provided in 
 11.21  subdivision 2, paragraph (c), shall serve at the pleasure of the 
 11.22  respective appointing authority. 
 11.23     Sec. 5.  [ACCESS FOR WOMEN'S BASEBALL.] 
 11.24     The commission must ensure access for baseball facilities 
 11.25  for a Minnesota women's professional baseball team when it 
 11.26  exists.  
 11.27     Sec. 6.  [REPEALER.] 
 11.28     Minnesota Statutes 1996, section 473.553, subdivision 14, 
 11.29  is repealed.  
 11.30     Sec. 7.  [APPLICATION.] 
 11.31     This article applies in the counties of Anoka, Carver, 
 11.32  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 11.33     Sec. 8.  [EFFECTIVE DATE.] 
 11.34     Sections 1 to 7 are effective the day following final 
 11.35  enactment.