HF 36

1st 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 baseball; providing for a process to 
  1.3             construct, fund, maintain, and govern a major league 
  1.4             baseball park; providing for community ownership of 
  1.5             the baseball team; providing for powers and duties of 
  1.6             the metropolitan sports facilities commission; 
  1.7             authorizing certain taxes, revenue distributions, 
  1.8             bonds and other debt obligations, and allocations; 
  1.9             appropriating money; amending Minnesota Statutes 1996, 
  1.10            sections 473.551, subdivisions 3, 8, and by adding 
  1.11            subdivisions; 473.552; 473.553, subdivisions 1, 2, 3, 
  1.12            4, 5, and by adding a subdivision; and 473.556, 
  1.13            subdivisions 3, 4, 5, and by adding subdivisions; 
  1.14            proposing coding for new law in Minnesota Statutes, 
  1.15            chapter 473; proposing coding for new law as Minnesota 
  1.16            Statutes, chapter 473I; repealing Minnesota Statutes 
  1.17            1996, sections 473.553, subdivision 14; and 473.561. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1 
  1.20                     BASEBALL PARK CONSTRUCTION 
  1.21     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.22  subdivision 8, is amended to read: 
  1.23     Subd. 8.  [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 
  1.24  facility" or "sports facilities" means real or personal property 
  1.25  comprising a stadium, stadiums, baseball parks, or arenas 
  1.26  suitable for university or major league professional baseball, 
  1.27  for university or major league professional football and soccer, 
  1.28  or for both, or for university or major league hockey or 
  1.29  basketball, or for both, together with adjacent parking 
  1.30  facilities, including on the effective date of Laws 1994, 
  1.31  chapter 648, the metrodome, the baseball park, the met center, 
  2.1   and, upon acquisition by the commission, the basketball and 
  2.2   hockey arena. 
  2.3      Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 18.  [BASEBALL PARK.] "Baseball park" means a park 
  2.6   owned by the commission and designed for playing major league 
  2.7   professional baseball, as specified in section 473.5991. 
  2.8      Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 19.  [BASEBALL PARK REVENUE.] "Baseball park revenue" 
  2.11  means all revenue received by or payable to the commission 
  2.12  arising from its ownership and operation of the baseball park 
  2.13  including, but not limited to, revenues from admission taxes or 
  2.14  other special taxes, appropriations, bond proceeds, fees, 
  2.15  lottery proceeds, loans, and gifts. 
  2.16     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.17  amended by adding a subdivision to read: 
  2.18     Subd. 20.  [BASEBALL TEAM.] "Baseball team" means the legal 
  2.19  entity which owns and operates the assets comprising a major 
  2.20  league professional baseball team. 
  2.21     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.22  amended by adding a subdivision to read: 
  2.23     Subd. 21.  [CITY.] "City" when referring to anything 
  2.24  involving the baseball park means the city in which the baseball 
  2.25  park is located. 
  2.26     Sec. 6.  Minnesota Statutes 1996, section 473.551, is 
  2.27  amended by adding a subdivision to read: 
  2.28     Subd. 22.  [COUNTY.] "County" when referring to anything 
  2.29  involving the baseball park means the county in which the 
  2.30  baseball park is located. 
  2.31     Sec. 7.  Minnesota Statutes 1996, section 473.551, is 
  2.32  amended by adding a subdivision to read: 
  2.33     Subd. 23.  [OWNER.] "Owner" means all individuals or 
  2.34  persons who directly or indirectly own an interest in the 
  2.35  baseball team on the date of enactment of this article and prior 
  2.36  to any transfer to a nonprofit corporation pursuant to section 
  3.1   473.5992, subdivision 3. 
  3.2      Sec. 8.  Minnesota Statutes 1996, section 473.552, is 
  3.3   amended to read: 
  3.4      473.552 [LEGISLATIVE POLICY; PURPOSE.] 
  3.5      The legislature finds that: 
  3.6      (a) (1) the population in the metropolitan area has a need 
  3.7   for sports facilities and that this need cannot be met 
  3.8   adequately by the activities of individual municipalities, by 
  3.9   agreements among municipalities, or by the private efforts of 
  3.10  the people in the metropolitan area,; 
  3.11     (b) (2) the commission's ownership and operation of the 
  3.12  metrodome and met center has met in part the foregoing need and 
  3.13  has promoted the economic and social interests of the 
  3.14  metropolitan area, of the state, and of the public, and; 
  3.15     (c) (3) the commission's acquisition of the basketball and 
  3.16  hockey arena on the terms and conditions provided in sections 
  3.17  473.598 and 473.599 shall similarly and more fully meet the 
  3.18  foregoing needs and promote these interests; and 
  3.19     (4) the commission's construction and operation of the 
  3.20  baseball park by reasonable methods that the legislature and the 
  3.21  commission may devise to secure the long-term commitment of the 
  3.22  baseball team, including, but not limited to, nonprofit and 
  3.23  community ownership of the baseball team as provided in section 
  3.24  473.5992, subdivision 3, and the assignment of the operation of 
  3.25  the baseball park to a private entity, all of which may further 
  3.26  secure and promote these public purposes, will likewise meet the 
  3.27  foregoing needs and promote these interests. 
  3.28  It is therefore necessary for the public health, safety and 
  3.29  general welfare to establish a procedure for the acquisition and 
  3.30  betterment of sports facilities and to create a metropolitan 
  3.31  sports facilities commission. 
  3.32     Sec. 9.  Minnesota Statutes 1996, section 473.553, 
  3.33  subdivision 1, is amended to read: 
  3.34     Subdivision 1.  [GENERAL.] The metropolitan sports 
  3.35  facilities commission is established and as a public corporation 
  3.36  and political subdivision of the state that may exercise its 
  4.1   powers in the metropolitan area, as provided by law.  The 
  4.2   commission shall be organized, structured, and administered as 
  4.3   provided in this section. 
  4.4      Sec. 10.  Minnesota Statutes 1996, section 473.556, 
  4.5   subdivision 3, is amended to read: 
  4.6      Subd. 3.  [ACQUISITION OF PROPERTY.] The commission may 
  4.7   acquire by lease, purchase, gift, or devise all necessary right, 
  4.8   title, and interest in and to real or personal property deemed 
  4.9   necessary to the purposes contemplated by sections 473.551 to 
  4.10  473.599 within the limits of the metropolitan area.  The city or 
  4.11  county may exercise the right of eminent domain under chapter 
  4.12  117, subject to any limits on spending in a charter for the city 
  4.13  or county, to acquire a site for the baseball park and, from 
  4.14  time to time, such other property, real, personal, and 
  4.15  intangible, as are essential and integral to the successful 
  4.16  operation of the baseball park. 
  4.17     Sec. 11.  Minnesota Statutes 1996, section 473.556, 
  4.18  subdivision 4, is amended to read: 
  4.19     Subd. 4.  [EXEMPTION OF PROPERTY.] (a) Except as provided 
  4.20  in paragraph (b), any real or personal property acquired, owned, 
  4.21  leased, controlled, used, or occupied by the commission for any 
  4.22  of the purposes of sections 473.551 to 473.599 is declared to be 
  4.23  acquired, owned, leased, controlled, used and occupied for 
  4.24  public, governmental, and municipal purposes, and shall be 
  4.25  exempt from ad valorem taxation by the state or any political 
  4.26  subdivision of the state, provided that such properties shall be 
  4.27  subject to special assessments levied by a political subdivision 
  4.28  for a local improvement in amounts proportionate to and not 
  4.29  exceeding the special benefit received by the properties from 
  4.30  the improvement.  No possible use of any such properties in any 
  4.31  manner different from their use under sections 473.551 to 
  4.32  473.599 at the time shall be considered in determining the 
  4.33  special benefit received by the properties.  All assessments 
  4.34  shall be subject to final confirmation by the council, whose 
  4.35  determination of the benefits shall be conclusive upon the 
  4.36  political subdivision levying the assessment.  Notwithstanding 
  5.1   the provisions of section 272.01, subdivision 2, or 273.19, real 
  5.2   or personal property leased by the commission to another person 
  5.3   for uses related to the purposes of sections 473.551 to 473.599, 
  5.4   including the operation of the metrodome, baseball park, met 
  5.5   center, and, if acquired by the commission, the basketball and 
  5.6   hockey arena shall be exempt from taxation regardless of the 
  5.7   length of the lease.  The provisions of this subdivision, 
  5.8   insofar as they require exemption or special treatment, shall 
  5.9   not apply to any real property comprising the met center which 
  5.10  is leased by the commission for residential, business, or 
  5.11  commercial development or other purposes different from those 
  5.12  contemplated in sections 473.551 to 473.599. 
  5.13     (b) The exemption from ad valorem taxation does not apply 
  5.14  to restaurants, lodging, or other facilities primarily engaged 
  5.15  in making retail sales to the public without regard to whether 
  5.16  there is an event at the sports facility. 
  5.17     Sec. 12.  Minnesota Statutes 1996, section 473.556, 
  5.18  subdivision 5, is amended to read: 
  5.19     Subd. 5.  [FACILITY OPERATION.] The commission may equip, 
  5.20  improve, operate, manage, maintain, and control the 
  5.21  metrodome, baseball park, met center, basketball and hockey 
  5.22  arena and sports facilities constructed, remodeled, or acquired 
  5.23  under the provisions of sections 473.551 to 473.599. 
  5.24     Sec. 13.  Minnesota Statutes 1996, section 473.556, is 
  5.25  amended by adding a subdivision to read: 
  5.26     Subd. 18.  [PRIVATE CONTRIBUTIONS.] Notwithstanding the 
  5.27  requirements of subdivision 9, the commission may accept grants, 
  5.28  gifts, or loans to further its public purposes with respect to 
  5.29  the baseball park.  The contributions may be used by the 
  5.30  commission for any purpose related to the baseball park under 
  5.31  sections 473.5991 to 473.5995, including, but not limited to, 
  5.32  payment of revenue bonds or revenue anticipation certificates 
  5.33  issued under section 473.5993, or reducing or eliminating any 
  5.34  ownership, operations, or other obligations or liabilities of 
  5.35  the commission under sections 473.5991 to 473.5995. 
  5.36     Sec. 14.  Minnesota Statutes 1996, section 473.556, is 
  6.1   amended by adding a subdivision to read: 
  6.2      Subd. 19.  [BASEBALL PARK REVENUE.] The commission may 
  6.3   spend baseball park revenue for the purposes of section 473.5993 
  6.4   to pay any reasonable expenses necessary to acquire, construct, 
  6.5   administer, operate, improve, or maintain the baseball park or 
  6.6   to pay debt service on bonds or other obligations sold for 
  6.7   purposes of the baseball park in accordance with sections 
  6.8   473.551 to 473.5995.  Baseball park revenue must be segregated 
  6.9   from other revenue of the commission. 
  6.10     Sec. 15.  Minnesota Statutes 1996, section 473.556, is 
  6.11  amended by adding a subdivision to read: 
  6.12     Subd. 20.  [LOANS.] Notwithstanding the requirements of 
  6.13  subdivision 9, the commission may borrow funds or enter into 
  6.14  loans or other security or debt instruments or make other 
  6.15  arrangements sufficient for construction of the baseball park 
  6.16  under sections 473.5991 to 473.5995. 
  6.17     Sec. 16.  [473.5991] [BASEBALL PARK.] 
  6.18     Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  6.19  park must be designed for playing major league baseball and no 
  6.20  other major league spectator sport that uses a surface or 
  6.21  seating configuration different from major league baseball.  The 
  6.22  baseball park shall be designed to have a retractable roof, but 
  6.23  no roof shall be constructed unless funding becomes available.  
  6.24  The baseball park may include parking or other transit 
  6.25  facilities for patrons, performers, and employees and may 
  6.26  include other amenities to enhance or make the use of the 
  6.27  baseball park enjoyable, convenient, and predictably accessible 
  6.28  to all.  
  6.29     Subd. 2.  [DESIGN.] The commission shall determine the 
  6.30  program elements of the baseball park, in consultation with the 
  6.31  baseball team, including, but not limited to, capacity, suites, 
  6.32  club seats, clubs, and amenities.  The commission shall also 
  6.33  determine the baseball park design, and the selection of the 
  6.34  project construction team, including the architect and general 
  6.35  contractor.  The baseball park design must be comparable in 
  6.36  quality to other recently built major league professional 
  7.1   baseball parks. 
  7.2      Subd. 3.  [SITE.] The commission shall design a process to 
  7.3   select a site within the metropolitan area and request site 
  7.4   proposals from any municipality.  The process to select a site 
  7.5   must include a procedure to set minimum specifications for the 
  7.6   site, including the necessary or desirable appropriate economic 
  7.7   development possibilities on adjacent properties.  The process 
  7.8   must consider the capture and use of incremental revenue paid to 
  7.9   or enjoyed by public entities, as a result of or in anticipation 
  7.10  of the baseball park, as revenue sources for funding the 
  7.11  baseball park.  
  7.12     Subd. 4.  [RELATED INFRASTRUCTURE.] The commission shall 
  7.13  negotiate with the appropriate government entities, including 
  7.14  the city, the county, and the council for necessary or 
  7.15  appropriate infrastructure improvements to support the existence 
  7.16  and operation of the baseball park, the movement of patrons to 
  7.17  and from the baseball park, and their comfort, safety, and 
  7.18  convenience while in and around the baseball park. 
  7.19     Subd. 5.  [CONSTRUCTION METHODS.] The commission may 
  7.20  contract for construction materials, supplies, and equipment in 
  7.21  accordance with section 471.345, may construct the baseball park 
  7.22  by a design-build method, and may employ persons, firms, or 
  7.23  corporations to perform one or more or all of the functions of 
  7.24  architect, engineer, construction manager, or contractor for 
  7.25  both design and construction, with respect to all or part of a 
  7.26  project to build or remodel sports facilities.  Contractors 
  7.27  shall be selected through the process of public bidding under 
  7.28  section 471.345, except that the commission may narrow the 
  7.29  listing of eligible bidders to those the commission determines 
  7.30  to possess sufficient expertise to perform the intended 
  7.31  functions, and the commission may negotiate with the three 
  7.32  lowest responsible bidders to achieve the best and final offer.  
  7.33  The commission may require a construction manager to certify a 
  7.34  construction price and completion date to the commission.  The 
  7.35  commission may require the posting of a bond in an amount 
  7.36  determined by the commission to cover any costs that may be 
  8.1   incurred over and above the certified price, including, but not 
  8.2   limited to, costs incurred by the commission or loss of revenues 
  8.3   resulting from incomplete construction on the completion date 
  8.4   and any other obligations the commission may require the 
  8.5   construction manager to bear.  The commission shall secure 
  8.6   surety bonds as required in section 574.26 securing payment of 
  8.7   just claims in connection with all public work undertaken by 
  8.8   it.  Persons entitled to the protection of the bonds may enforce 
  8.9   them as provided in sections 574.28 to 574.32 and are not 
  8.10  entitled to a lien on any property of the commission under 
  8.11  sections 514.01 to 514.16. 
  8.12     Subd. 6.  [CONSTRUCTION MATERIALS; SALES TAX 
  8.13  EXEMPTION.] Purchases of materials and supplies used or consumed 
  8.14  in constructing or incorporated into the construction of the 
  8.15  baseball park are exempt from the taxes imposed under chapter 
  8.16  297A and from any sales and use tax imposed by a local unit of 
  8.17  government notwithstanding any ordinance or charter provision.  
  8.18  This exemption applies regardless of whether the materials and 
  8.19  supplies are purchased by the commission, the owner or 
  8.20  subsequent owners, or by a contractor or subcontractor.  
  8.21     Sec. 17.  [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 
  8.22     Subdivision 1.  [WHEN.] The metropolitan council must 
  8.23  determine that others have done what they are required to do 
  8.24  under this section in all material respects before it authorizes 
  8.25  the sale of bonds under section 473.5993, subdivision 1, clauses 
  8.26  (1) to (3). 
  8.27     Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The commission must 
  8.28  have executed agreements with the owner and the baseball team to 
  8.29  use the baseball park for all scheduled regular season and all 
  8.30  postseason division, league, and world series championship 
  8.31  play-off home games for no less than 30 years, without an escape 
  8.32  clause for the owner and all subsequent owners. 
  8.33     (b) The agreements shall afford to the commission, or to 
  8.34  another public entity as the commission deems appropriate, the 
  8.35  rights and remedies that are deemed necessary and appropriate to 
  8.36  provide reasonable assurances that the baseball team and the 
  9.1   owner will comply with the agreements throughout the 30-year 
  9.2   term.  The remedies must include liquidated damages in an amount 
  9.3   equal to the costs of site preparation, construction, and 
  9.4   interest, payable by the baseball team and the owner jointly and 
  9.5   severally to the commission in the event the team relocates to 
  9.6   another ball park within the 30-year period, less 1/30 of the 
  9.7   amount, and all remaining interest payments, for each year the 
  9.8   team has met its obligation to play in the baseball park.  The 
  9.9   remedies shall include specific performance and injunctive 
  9.10  relief and any other equitable remedies, and any additional 
  9.11  remedies or ownership, voting, or other security arrangements 
  9.12  the commission reasonably determines to be effective in ensuring 
  9.13  the baseball team will play the required games in the baseball 
  9.14  park throughout the 30-year term.  In the enforcement of the 
  9.15  agreements, the commission may elect from among the rights and 
  9.16  remedies provided for in this paragraph, and that election does 
  9.17  not extinguish the commission's other rights and remedies except 
  9.18  as may otherwise be provided by law.  It is the intent of the 
  9.19  legislature that a material breach of an agreement between the 
  9.20  commission and other public bodies and professional athletic 
  9.21  teams that commit to the long-term playing of major league games 
  9.22  at public facilities is deemed to cause irreparable harm for 
  9.23  which no adequate remedy at law is available and that the grant 
  9.24  of equitable relief to remedy the breach is in the public 
  9.25  interest and shall be liberally so construed.  
  9.26     (c) The agreements must confer exclusive jurisdiction for 
  9.27  judicial enforcement of the agreements on Minnesota state courts 
  9.28  and provide that disputes arising under the agreement be 
  9.29  governed by Minnesota law.  
  9.30     Subd. 3.  [NONPROFIT, COMMUNITY OWNERSHIP.] (a) The owner 
  9.31  must have transferred ownership of the baseball team to a 
  9.32  nonprofit corporation through transfer by gift of all ownership 
  9.33  interests, voting and nonvoting.  The transfer agreement must 
  9.34  provide that the owner guarantee the debt of the baseball team, 
  9.35  determined as of the date of the transfer of ownership of the 
  9.36  team to the nonprofit corporation.  The transfer agreement must 
 10.1   provide that if the proceeds of the sale of the baseball team to 
 10.2   a subsequent owner are not sufficient to pay the debt amount, 
 10.3   the owner must pay for it.  The transfer agreement must provide 
 10.4   that any amount received by the nonprofit corporation on the 
 10.5   subsequent transfer of the baseball team will be distributed in 
 10.6   the following order of priority: 
 10.7      (1) an amount equal to the debt of the baseball team, as 
 10.8   previously determined, must be paid to the holder of the debt; 
 10.9      (2) an amount equal to the costs incurred by the nonprofit 
 10.10  corporation related to the baseball team must be retained by the 
 10.11  nonprofit corporation; 
 10.12     (3) an amount equal to one-half the costs incurred by the 
 10.13  city under subdivision 9, and one-half the costs incurred by the 
 10.14  city to construct a parking facility for the baseball park if 
 10.15  provided by the city, must be paid to the city; and 
 10.16     (4) the remainder must be paid first to the commission to 
 10.17  defease the bonds issued under section 473.5993, subdivision 8, 
 10.18  and then to the council to pay or defease the bonds issued under 
 10.19  section 473.5993, subdivision 1. 
 10.20     The transfer agreement must provide that between the time 
 10.21  of the transfer by gift to the nonprofit corporation and the 
 10.22  subsequent transfer of ownership of the baseball team by the 
 10.23  nonprofit corporation, the owner is responsible for the 
 10.24  operation and management of the baseball team and for all 
 10.25  operating costs, including any losses. 
 10.26     (b) The commission must have executed an agreement with the 
 10.27  nonprofit corporation that provides for the following: 
 10.28     (1) Within five years after the transfer of the baseball 
 10.29  team to the nonprofit corporation, the nonprofit corporation 
 10.30  must offer for sale to individuals full voting shares in the 
 10.31  baseball team according to a plan approved by the commission.  
 10.32  The plan must provide for purchase of shares by small investors, 
 10.33  with the provision that no individual or entity, other than the 
 10.34  managing owner, may own more than one percent of the shares with 
 10.35  full voting rights.  The managing owner may own up to 25 percent 
 10.36  of the shares with full voting rights. 
 11.1      (2) The transfer agreement under clause (1) must provide 
 11.2   that any subsequent owners must assume the obligations of the 
 11.3   owner to use the baseball park for the 30-year period, as 
 11.4   provided in subdivision 2. 
 11.5      (3) The articles of incorporation, or other organizing 
 11.6   charter or agreement, bylaws, and other governing documents of 
 11.7   the baseball team must provide that the baseball team may not 
 11.8   move outside of the state without approval of 80 percent of the 
 11.9   shares held by persons other than the managing owner.  
 11.10  Notwithstanding any law to the contrary, the 80 percent approval 
 11.11  requirement may not be amended by the shareholders or by any 
 11.12  other means. 
 11.13     Subd. 4.  [COMMISSION APPROVAL OF NONPROFIT 
 11.14  CORPORATION.] The commission must have approved the selection of 
 11.15  the nonprofit corporation with which the owner has an agreement 
 11.16  under subdivision 3.  The commission must have determined, at a 
 11.17  minimum, that there is no conflict of interest between the owner 
 11.18  and the board of the nonprofit corporation, and that the 
 11.19  nonprofit corporation's mission is broad and provides assistance 
 11.20  statewide. 
 11.21     Subd. 5.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
 11.22  and the owner must have provided information sufficient to 
 11.23  satisfy the commission of the baseball team's and the owner's 
 11.24  ability to comply with the terms of the 30-year agreements. 
 11.25     Subd. 6.  [PRIVATE SECTOR SUPPORT.] The businesses and 
 11.26  individuals must have entered into enforceable contracts to 
 11.27  purchase or lease: 
 11.28     (1) at least 80 percent of the private suites provided for 
 11.29  in the proposal for the baseball park for at least ten years; 
 11.30     (2) at least 80 percent of the club seats provided for in 
 11.31  the proposal for the baseball park for at least ten years; 
 11.32     (3) season tickets, above the 1997 season ticket base, as 
 11.33  follows:  2,000 additional season tickets to be purchased in 
 11.34  each of the 1998, 1999, 2000, and 2001 baseball seasons, and an 
 11.35  additional 5,000 season tickets in 2002, for a total amount of 
 11.36  20,000 season tickets to be purchased for the opening season and 
 12.1   for each of the succeeding nine years; and 
 12.2      (4) personal seat licenses sufficient to raise $500,000 per 
 12.3   year for at least ten years. 
 12.4      Subd. 7.  [PRIVATE SECTOR CAPITAL PLAN.] The commission 
 12.5   must have developed a private sector capital plan that includes 
 12.6   the sale or lease of some or all promotional rights in the 
 12.7   baseball park. 
 12.8      Subd. 8.  [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The 
 12.9   commission and the owner must have entered into an agreement 
 12.10  that provides that the owner will use its best efforts to obtain 
 12.11  construction money for the baseball park from major league 
 12.12  baseball. 
 12.13     Subd. 9.  [LOCAL GOVERNMENT CONTRIBUTION.] The commission 
 12.14  must have executed an agreement with the city, county, or both, 
 12.15  under which the city, county, or both will:  (1) provide to the 
 12.16  commission title to all real property, including all easements 
 12.17  and other appurtenances needed for the construction and 
 12.18  operation of the baseball park; and (2) prepare the site for 
 12.19  construction and operation of the baseball park, including 
 12.20  clearing the property of all improvements on it which would 
 12.21  interfere with the construction and operation of the baseball 
 12.22  park. 
 12.23     Subd. 10.  [GUARANTEED MAXIMUM PRICE.] The commission must 
 12.24  have executed agreements that provide for the construction of 
 12.25  the baseball park for a guaranteed maximum price and a specified 
 12.26  substantial completion date of opening day or April 1, 2002, 
 12.27  whichever is earlier, and that requires performance bonds in an 
 12.28  amount at least equal to 100 percent of the guaranteed maximum 
 12.29  price to cover any costs incurred over and above the guaranteed 
 12.30  maximum price, including, but not limited to, costs incurred by 
 12.31  the commission and loss of revenues resulting from incomplete 
 12.32  construction on the substantial completion date. 
 12.33     Subd. 11.  [NO STRIKES OR LOCKOUTS.] The commission must 
 12.34  have executed agreements with appropriate labor organizations 
 12.35  and construction contractors that provide that no labor strikes 
 12.36  or management lockouts will delay construction. 
 13.1      Subd. 12.  [UNIVERSITY OF MINNESOTA.] The commission must 
 13.2   have consulted with and considered the needs of the University 
 13.3   of Minnesota for baseball facilities for the next 20 years. 
 13.4      Subd. 13.  [REVENUES TO BE SUFFICIENT.] The commission must 
 13.5   have determined that the anticipated baseball park revenue will 
 13.6   be sufficient to pay when due all debt service on the revenue 
 13.7   bonds issued under section 473.5993, loans, and all 
 13.8   administrative expenses of the commission and the council 
 13.9   relating to the baseball park.  The commission must have 
 13.10  determined that the anticipated revenue to the baseball team 
 13.11  will be sufficient to pay all operating and maintenance expenses 
 13.12  of the baseball team and baseball park. 
 13.13     Subd. 14.  [LEAGUE, MAJOR LEAGUE BASEBALL GUARANTEE.] The 
 13.14  commission must have entered into an agreement with the major 
 13.15  league of which the baseball team is a member and with major 
 13.16  league baseball that provides as follows: 
 13.17     (1) the consideration for the agreement is, among other 
 13.18  things, the commission making available a publicly financed 
 13.19  facility in which major league professional baseball games are 
 13.20  anticipated to receive increased broadcasting, advertising, and 
 13.21  other revenues for major league professional baseball; 
 13.22     (2) the major league of which the baseball team is a member 
 13.23  and major league baseball agree to guarantee the continuance of 
 13.24  a franchise in the metropolitan area for a 30-year period 
 13.25  beginning with the first home game played in the baseball park; 
 13.26     (3) the commission is entitled to specific performance of 
 13.27  the agreement, and both the major league of which the baseball 
 13.28  team is a member and major league baseball agree not to contest 
 13.29  the availability of specific performance; and 
 13.30     (4) jurisdiction and enforcement of the agreement is 
 13.31  exclusively in Minnesota state court. 
 13.32     Subd. 15.  [AFFORDABLE TICKETS.] The commission must have 
 13.33  obtained a guarantee from the owner that at least ten percent of 
 13.34  the tickets in the baseball park available for major league 
 13.35  professional baseball games will be available at prices that do 
 13.36  not exceed 25 percent of the highest priced seats in the 
 14.1   baseball park or a maximum of $5 per ticket, whichever is 
 14.2   lower.  Premium seating, such as seats requiring personal seat 
 14.3   licenses, luxury boxes, and similar seating, must be excluded in 
 14.4   determining the highest priced seats in the baseball park.  The 
 14.5   maximum price of affordable tickets may be adjusted periodically 
 14.6   for inflation.  Not less than 20 percent of the tickets subject 
 14.7   to the guarantee under this subdivision must be made available 
 14.8   for sale only on the day of the game.  This subdivision does not 
 14.9   apply to a postseason division, league, or world series 
 14.10  championship game.  
 14.11     Subd. 16.  [AGREEMENT WITH COUNCIL.] The commission must 
 14.12  have executed an agreement with the council providing for the 
 14.13  timely transfer of funds for payment of debt service and any 
 14.14  other obligations arising out of the issuance of bonds under 
 14.15  section 473.5593. 
 14.16     Subd. 17.  [MAJOR LEAGUE BASEBALL APPROVAL.] Major league 
 14.17  baseball must have approved the proposed ownership structure and 
 14.18  transfers required by this section. 
 14.19     Subd. 18.  [ASSIGNMENT OF AGREEMENTS WITH CURRENT 
 14.20  OWNER.] The agreements entered into by the owner under 
 14.21  subdivisions 2, 5, 15, and 19, must have provided that the 
 14.22  owner's obligations and liabilities be assigned to and assumed 
 14.23  by the nonprofit corporation and any subsequent owner. 
 14.24     Subd. 19.  [YOUTH BASEBALL.] The commission must have 
 14.25  negotiated a plan with the owner that expands opportunities for 
 14.26  children and youth to participate in baseball at the baseball 
 14.27  park and in their local communities. 
 14.28     Subd. 20.  [GOVERNOR'S DETERMINATION REGARDING REVENUE 
 14.29  SHARING AGREEMENT.] The governor must certify in a written 
 14.30  report to the legislature that major league baseball has 
 14.31  completed a revenue sharing agreement between owners of major 
 14.32  league baseball teams and major league professional baseball 
 14.33  players.  The governor must certify that the agreement is 
 14.34  sufficient to ensure that the total gross revenues of baseball 
 14.35  teams in all markets, from all sources, will be equalized.  As 
 14.36  used in this subdivision, "equalized" means that small market 
 15.1   teams are projected to have revenues no less than 50 percent of 
 15.2   the revenues of the major league baseball team that has the 
 15.3   highest amount of revenue. 
 15.4      Subd. 21.  [OTHER CONTRIBUTIONS.] The commission has 
 15.5   received at least $1,000,000 in contributions for which the 
 15.6   contributors will be recognized in a visible place in the 
 15.7   baseball stadium.  The recognition may be in the form of the 
 15.8   contributor's name on a brick in the baseball stadium 
 15.9   structure.  The contributions must be deposited in the state 
 15.10  treasury and credited to the baseball park account.  
 15.11     Sec. 18.  [473.5993] [DEBT OBLIGATIONS FOR BASEBALL PARK.] 
 15.12     Subdivision 1.  [PURPOSES.] The council may by resolution 
 15.13  authorize the sale and issuance of its revenue bonds for the 
 15.14  following purposes after making the determinations in section 
 15.15  473.5992, subdivision 1: 
 15.16     (1) to pay the costs of the acquisition and betterment of a 
 15.17  baseball park; 
 15.18     (2) to reimburse the commission and the council for their 
 15.19  costs in complying with and making the determinations required 
 15.20  by section 473.5992, whenever incurred; 
 15.21     (3) to pay issuance costs, interest costs during 
 15.22  construction, and costs of bond insurance or other credit 
 15.23  enhancement for the bonds and to establish necessary reserves 
 15.24  for operating and debt service costs; 
 15.25     (4) to refund bonds issued under this section; and 
 15.26     (5) to fund judgments entered by any court against the 
 15.27  council or commission in matters relating to the council's or 
 15.28  commission's functions related to the baseball park. 
 15.29     Subd. 2.  [AMOUNT.] The principal amount of the bonds 
 15.30  issued for the purpose specified in subdivision 1, clause (1), 
 15.31  exclusive of any original issue discount, must not exceed 
 15.32  $185,000,000. 
 15.33     Subd. 3.  [TAXABILITY.] The bonds may be issued as 
 15.34  tax-exempt revenue bonds or as taxable revenue bonds in the 
 15.35  proportions that the council may determine. 
 15.36     Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
 16.1   secured in the manner provided in chapter 475 for bonds payable 
 16.2   solely from revenues and the council has the same powers and 
 16.3   duties as a municipality and its governing body in issuing bonds 
 16.4   under that chapter.  The bonds may be sold at any price and at 
 16.5   public or private sale as determined by the council.  An 
 16.6   election is not required.  
 16.7      Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 16.8   are special obligations of the council secured by and payable 
 16.9   solely from baseball park revenues.  The bonds are not a general 
 16.10  or moral obligation of the council, the commission, any other 
 16.11  political subdivision of the state, or the state, and must not 
 16.12  be included in the net debt of any city, county, or other 
 16.13  subdivision of the state for the purpose of any net debt 
 16.14  limitation. 
 16.15     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 16.16  under this section, the council must enter into an agreement 
 16.17  with the brokerage firm to be used in connection with the sale 
 16.18  and issuance of the bonds or revenue anticipation certificates 
 16.19  under this section, guaranteeing that fees and charges payable 
 16.20  to the brokerage firm under the agreement, including any 
 16.21  underwriting discounts, do not exceed fees and charges 
 16.22  customarily payable in connection with the sale and issuance of 
 16.23  bonds or revenue anticipation certificates. 
 16.24     Subd. 7.  [SECURITY.] (a) Bonds issued under this section 
 16.25  may be secured by a bond resolution, or by a trust indenture 
 16.26  entered into by the council with a corporate trustee within or 
 16.27  outside the state.  In the resolution or the trust indenture, 
 16.28  the council must establish covenants for the payment and 
 16.29  security of the bonds and pledge the baseball park revenues to 
 16.30  be received by it from the state or the commission, other than 
 16.31  amounts paid to it for administrative costs, for this purpose.  
 16.32  In particular, but without limitation, the council may covenant 
 16.33  and agree to enforce, or authorize the bondholders or their 
 16.34  trustee to enforce, all agreements entered into by the council 
 16.35  with this state or the commission relating to the payment of 
 16.36  baseball park revenues and other money, if any, to the council 
 17.1   for the payment and security of the bonds. 
 17.2      (b) The pledge of baseball park revenues for the payment 
 17.3   and security of the council's revenue bonds is a valid charge on 
 17.4   the baseball park revenues from the date when bonds are first 
 17.5   issued or secured under the resolution or indenture and secure 
 17.6   the payment of principal and interest and redemption premiums 
 17.7   when due and the maintenance at all times of a reserve securing 
 17.8   the payments.  No mortgage of or security interest in any 
 17.9   tangible real or personal property is granted to the bondholders 
 17.10  or the trustee, but they have a valid, binding, and enforceable 
 17.11  first lien and security interest in all baseball park revenues 
 17.12  pledged to the payment of the bonds by the council, as against 
 17.13  the claims of all other persons in tort, contract, or otherwise, 
 17.14  irrespective of whether the parties have notice of the claims, 
 17.15  and without possession or filing as provided in the Uniform 
 17.16  Commercial Code or any other law. 
 17.17     Subd. 8.  [COMMISSION FINANCING.] The commission may by 
 17.18  resolution authorize the sale and issuance of its revenue bonds 
 17.19  for the purposes specified in subdivision 1.  The principal 
 17.20  amount of the bonds issued for the purpose specified in 
 17.21  subdivision 1, clause (1), exclusive of any original issue 
 17.22  discount, must not exceed $75,000,000.  The bonds are special 
 17.23  obligations of the commission secured by and payable solely from 
 17.24  baseball park revenues not required to be paid to the council 
 17.25  under the agreement described in subdivision 11; and, to the 
 17.26  extent determined by the commission, other revenues and money of 
 17.27  the commission not pledged for another purpose.  The bonds are 
 17.28  not general or moral obligations of the commission, any other 
 17.29  political subdivision of the state, or the state, and must not 
 17.30  be included in the net debt of any city, county, or other 
 17.31  subdivision of the state for the purpose of any debt 
 17.32  limitation.  The bonds may be issued as tax-exempt revenue bonds 
 17.33  or as taxable revenue bonds in the proportions that the 
 17.34  commission may determine.  The bonds shall be sold, issued, and 
 17.35  secured in the manner provided in chapter 475 for bonds payable 
 17.36  solely from revenues and the commission has the same powers and 
 18.1   duties as a municipality and its governing body in issuing bonds 
 18.2   under that chapter.  The bonds may be sold at any price and at 
 18.3   public or private sale as determined by the commission.  An 
 18.4   election is not required. 
 18.5      Subd. 9.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
 18.6   upon final adoption by the commission of an annual budget of the 
 18.7   commission including the baseball park revenues, and in 
 18.8   anticipation of the receipt of baseball park revenues and other 
 18.9   receipts of the commission, the commission may authorize the 
 18.10  issuance and sale, in the form and manner and upon the terms it 
 18.11  may determine, of revenue anticipation certificates.  The terms 
 18.12  and provisions of the certificates and the security for their 
 18.13  payment shall be consistent with and not violate the terms of 
 18.14  any agreement entered into by the commission pursuant to 
 18.15  subdivision 12 and any bond resolution or indenture adopted or 
 18.16  entered into by the council under subdivision 7.  The 
 18.17  certificates must mature not later than three months after the 
 18.18  close of the budget year.  So much of the anticipated baseball 
 18.19  park revenues and other money as may be needed for the payment 
 18.20  of the certificates and interest thereon shall be paid into a 
 18.21  special debt service fund established for the certificates in 
 18.22  the commission's financial records.  The proceeds of the 
 18.23  certificates may be used for any purpose for which the 
 18.24  anticipated revenues may be used or for any purpose for which 
 18.25  bond proceeds under subdivision 8 may be used. 
 18.26     Subd. 10.  [APPROPRIATION; AGREEMENTS AMONG PARTIES.] In 
 18.27  addition to the appropriation of money in the baseball park 
 18.28  account contained in section 473I.02, there is appropriated to 
 18.29  the commissioner of finance for payment to the commission for 
 18.30  the payment and security of bonds issued by the council under 
 18.31  subdivision 1, the amount of money on hand in the special 
 18.32  revenue fund established in section 16A.67, subdivision 3, other 
 18.33  than health care cost reimbursements described in section 
 18.34  246.18, subdivision 7, and the net proceeds of the lottery under 
 18.35  section 349A.10, subdivision 5, that is necessary to pay the 
 18.36  principal of and interest on the council's bonds issued under 
 19.1   subdivision 1 when due and to maintain any debt service reserve 
 19.2   established for payment of the bonds at its required balance.  
 19.3   This pledge is subordinate to the pledge and appropriation of 
 19.4   the revenues in the special revenue fund from the payment and 
 19.5   security of the state's outstanding revenue bonds series 1996A 
 19.6   and any other similar bonds issued under section 16A.67, and the 
 19.7   commissioner of finance shall transfer money from the special 
 19.8   revenue fund to the baseball park account and the commission 
 19.9   only after transfers sufficient to pay debt service on the 
 19.10  outstanding bonds under section 16A.67 payable from the revenues 
 19.11  have been made.  This appropriation shall be used only in the 
 19.12  event other baseball park revenues available for the purposes 
 19.13  specified above are inadequate for those purposes.  Money paid 
 19.14  to the commission under this subdivision shall be repaid to the 
 19.15  state with interest at a rate determined by the commissioner of 
 19.16  finance to be comparable to the rate earned by the state on 
 19.17  invested treasurer's cash and deposited in the special revenue 
 19.18  fund from baseball park revenues received by the commission in 
 19.19  excess of the requirements of the commission under sections 
 19.20  473.5991 to 473.5995. 
 19.21     Subd. 11.  [AGREEMENT BY COMMISSIONER OF FINANCE.] (a) The 
 19.22  commissioner of finance, on behalf of the state, shall enter 
 19.23  into an agreement with the council and the commission obligating 
 19.24  the state to pay to the commission the money appropriated by 
 19.25  subdivision 10 and section 473I.02, at the times and in the 
 19.26  amounts determined by the commission to be necessary or 
 19.27  desirable to enable the council and the commission to carry out 
 19.28  their powers and duties under sections 473.5991 to 473.5995.  In 
 19.29  the agreement, the commissioner shall also covenant and agree on 
 19.30  behalf of the state that, so long as any bonds or other 
 19.31  obligations issued by the council or the commission under this 
 19.32  section are outstanding and not discharged in accordance with 
 19.33  the resolutions authorizing their issuance: 
 19.34     (1) the state will maintain the special revenue fund 
 19.35  established by section 16A.67, subdivision 3, and the baseball 
 19.36  park account established in section 473I.02; 
 20.1      (2) the state will not reduce or repeal the appropriations 
 20.2   made in subdivision 10 and section 473I.02; 
 20.3      (3) the state will not direct or appropriate to another 
 20.4   fund or account money now required to be deposited in the 
 20.5   special revenue fund established in section 16A.67, subdivision 
 20.6   3, or the baseball park account, provided that the state retains 
 20.7   authority to provide for the deposit of health care 
 20.8   reimbursements described in section 246.18 and the net proceeds 
 20.9   of the lottery under section 349A.10, subdivision 5 directly to 
 20.10  the general fund or another fund of the state, and to alter, 
 20.11  reduce, eliminate, dedicate to another fund, or add to the state 
 20.12  license and service fees or departmental earnings described in 
 20.13  sections 16A.1285 and 16A.6701; and 
 20.14     (4) the state will provide information necessary to enable 
 20.15  the council and the commission to comply with federal securities 
 20.16  laws, rules, and regulations applicable to bonds issued under 
 20.17  subdivision 8.  The agreement may also contain such other 
 20.18  covenants and agreements as the commissioner shall deem 
 20.19  necessary which are not inconsistent with any other existing 
 20.20  law, but such covenants may not include a covenant to continue 
 20.21  to operate the state lottery. 
 20.22     (b) The agreement shall be enforceable against the state in 
 20.23  the district court for Ramsey county.  The state waives immunity 
 20.24  from suit in connection with the agreement and confers 
 20.25  jurisdiction on the district court to determine the matter in 
 20.26  the manner provided for civil actions in the district court.  
 20.27  Section 3.751, subdivisions 3 and 4, apply. 
 20.28     Subd. 12.  [AGREEMENT BETWEEN COUNCIL AND 
 20.29  COMMISSION.] Prior to the issuance of bonds pursuant to 
 20.30  subdivision 1, the council and the commission must enter into an 
 20.31  agreement relating to the following matters: 
 20.32     (1) identifying all types of baseball park revenues, 
 20.33  establishing priorities for their use, identifying baseball park 
 20.34  revenues to be paid to the council and pledged by it for the 
 20.35  payment and security of its bonds, and establishing the dates on 
 20.36  and amounts in which baseball park revenues will be paid to the 
 21.1   council to pay debt service on the council's bonds and to 
 21.2   maintain a debt service reserve and to pay the council's 
 21.3   administrative expenses incurred pursuant to sections 473.5991 
 21.4   to 473.5995 which are not paid from council revenue bond 
 21.5   proceeds; 
 21.6      (2) identifying baseball park revenues to be retained by 
 21.7   the commission and used to secure and pay debt service on bonds 
 21.8   issued by the commission pursuant to subdivision 8, which may 
 21.9   include baseball park revenue derived from signage, concessions, 
 21.10  naming rights, and advertising; 
 21.11     (3) establishing the terms and conditions on which the 
 21.12  commission may issue revenue anticipation certificates pursuant 
 21.13  to subdivision 9 and use baseball park revenues of the types 
 21.14  pledged for payment and security of the council's bonds to pay 
 21.15  principal and interest on the certificates; 
 21.16     (4) establishing the obligations of the parties with 
 21.17  respect to compliance with state and federal securities laws 
 21.18  applicable to their bonds; 
 21.19     (5) establishing the obligations of the commission with 
 21.20  respect to the administration and enforcement of any agreements 
 21.21  entered into by the commission with the state, any local 
 21.22  governmental unit, or any other person or entity relating to the 
 21.23  baseball park or baseball park revenues; and 
 21.24     (6) any other matters relating to their powers and duties 
 21.25  under this act that the parties deem appropriate. 
 21.26     Subd. 13.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 21.27  bonds issued under this section and the obligations of the 
 21.28  council related to them must not be conditioned upon or impaired 
 21.29  by the council's determinations made under section 473.5992.  
 21.30  For the purposes of issuing bonds, the determinations made by 
 21.31  the council are conclusive, and the council is obligated for the 
 21.32  security and payment of the bonds, but only from the sources 
 21.33  pledged thereto, irrespective of determinations that may be 
 21.34  erroneous, inaccurate, or otherwise mistaken. 
 21.35     Sec. 19.  [473.5994] [OPERATIONS.] 
 21.36     Subdivision 1.  [DEFINITION.] For the purposes of this 
 22.1   section, "owner" includes the nonprofit corporation or any 
 22.2   subsequent owner. 
 22.3      Subd. 2.  [BASEBALL TEAM TO OPERATE BASEBALL PARK.] (a) The 
 22.4   commission must enter into agreements with the owner and the 
 22.5   baseball team that provide for operation and maintenance of the 
 22.6   baseball park at the expense of the owner and the baseball team. 
 22.7      (b) The agreements may provide that: 
 22.8      (1) the baseball team will manage, maintain, operate, and 
 22.9   repair the baseball park and may contract with one or more 
 22.10  entities to operate part or all of the baseball park all subject 
 22.11  to the approval of the commission; and 
 22.12     (2) the baseball team shall contract with one or more 
 22.13  concessionaires to provide food and beverages for the baseball 
 22.14  park subject to the approval of the commission.  All contracts 
 22.15  for food and beverage services must be advertised and 
 22.16  competitively bid and negotiated in order to maximize revenues 
 22.17  from those contracts. 
 22.18     (c) The agreements must provide criteria for maintenance 
 22.19  and operation of the baseball park and remedies as referred to 
 22.20  in section 473.5992, subdivision 2, paragraphs (b) and (c), that 
 22.21  may be exercised by the commission to ensure that the criteria 
 22.22  are met.  The agreements must also require that the owner with 
 22.23  respect to the baseball team, the baseball team, and its 
 22.24  affiliates and subsidiaries that are involved in the maintenance 
 22.25  and operation provide annually audited financial statements to 
 22.26  the commission.  
 22.27     (d) The agreements must provide for the allocation of game 
 22.28  day and nongame day revenues and expenses and provide for the 
 22.29  scheduling of nonbaseball events at the baseball park. 
 22.30     Subd. 3.  [COMMISSION PARTICIPATION IN BASEBALL TEAM 
 22.31  CONTRACTS.] The commission must have an agreement that provides 
 22.32  that the commission may participate in the negotiations of any 
 22.33  contracts or agreements pertinent to the operation and 
 22.34  maintenance of the baseball park between the baseball team and 
 22.35  any other third party. 
 22.36     Subd. 4.  [BASEBALL TEAM OPERATING EXPENSES; LOSS.] The 
 23.1   owner shall assume all risk for and timely pay all operating 
 23.2   expenses of the baseball team and the baseball park as provided 
 23.3   in sections 473.5991 to 473.5995 and in agreements authorized by 
 23.4   sections 473.5991 to 473.5995.  The baseball team shall be 
 23.5   organized so that under Minnesota law, the commission is not 
 23.6   liable for any operating loss, liability, or obligation of the 
 23.7   baseball team, or baseball park.  The commission shall have no 
 23.8   duty to reimburse the owner or any creditor of the owner, the 
 23.9   baseball team, or the baseball park for any operating loss, 
 23.10  liability, or obligation of the baseball team or baseball park, 
 23.11  and shall be indemnified by the owner against losses or claims. 
 23.12     Sec. 20.  [473.5995] [BASEBALL PARK JOBS PROGRAM.] 
 23.13     The commission must implement a jobs program that meets or 
 23.14  exceeds the reasonable goals established by the commission for 
 23.15  the participation of minority, women, and disadvantaged 
 23.16  employees and small business in the construction of the baseball 
 23.17  park.  The owner must establish a jobs program that meets or 
 23.18  exceeds the reasonable goals established by the commission for 
 23.19  the participation of minority, women, and disadvantaged 
 23.20  employees and small business in the operation and maintenance of 
 23.21  the baseball park.  
 23.22     Sec. 21.  [INTERSTATE COMPETITION.] 
 23.23     The commission may cooperate and contract with other 
 23.24  political entities in the United States to petition or form an 
 23.25  entity to petition the United States Congress to enact 
 23.26  legislation to prevent injurious or uneconomic practices of 
 23.27  governmental entities in seeking sports, exposition, and 
 23.28  entertainment franchises and facilities.  The attorney general 
 23.29  may participate in appropriate litigation to prevent the 
 23.30  injurious or uneconomic practices. 
 23.31     Sec. 22.  [CURRENT USE AGREEMENT; BEST EFFORTS.] 
 23.32     The commission and the baseball team must renegotiate the 
 23.33  use agreement in effect at the metrodome as of the date of 
 23.34  enactment on terms and conditions mutually agreeable.  The 
 23.35  agreement must provide that the owner and the baseball team will 
 23.36  use their best efforts to field a competitive team during its 
 24.1   remaining baseball seasons at the metrodome. 
 24.2      Sec. 23.  [INSTRUCTION TO REVISOR.] 
 24.3      In the next edition of Minnesota Statutes, the revisor of 
 24.4   statutes shall change references to sections 473.551 to 473.599 
 24.5   to read 473.551 to 473.5995. 
 24.6      Sec. 24.  [REPEALER.] 
 24.7      Minnesota Statutes 1996, section 473.561, is repealed. 
 24.8      Sec. 25.  [APPLICATION.] 
 24.9      This article applies in the counties of Anoka, Carver, 
 24.10  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 24.11     Sec. 26.  [EFFECTIVE DATE; CONTINGENT EXPIRATION.] 
 24.12     This article is effective the day following final 
 24.13  enactment.  If bonds have not been issued as authorized in 
 24.14  Minnesota Statutes, section 473.5993, by December 31, 1999, this 
 24.15  article expires on January 1, 2000. 
 24.16                             ARTICLE 2
 24.17                    BASEBALL PARK SPECIAL TAXES
 24.18     Section 1.  [473I.01] [DEFINITIONS.] 
 24.19     Subdivision 1.  [APPLICATION.] The definitions in this 
 24.20  section and sections 473.121 and 473.551 apply to this chapter. 
 24.21     Subd. 2.  [BASEBALL PARK.] "Baseball park" means the 
 24.22  baseball park described in section 473.5991. 
 24.23     Sec. 2.  [473I.02] [BASEBALL PARK ACCOUNT.] 
 24.24     The baseball park account is established in the special 
 24.25  revenue fund in the state treasury.  All money credited to the 
 24.26  baseball park account is appropriated to the commissioner of 
 24.27  finance for payment to the commission for purposes of the 
 24.28  baseball park.  The commission shall use all receipts from the 
 24.29  baseball park account to acquire, construct, improve, 
 24.30  administer, operate, and maintain the baseball park and to pay 
 24.31  debt service on bonds or other obligations sold for purposes of 
 24.32  the baseball park. 
 24.33     Sec. 3.  [473I.03] [BASEBALL PARK DISTRICT; TAXES AND 
 24.34  FEES.] 
 24.35     The legislature finds that the construction of the baseball 
 24.36  park is a public improvement that has regional and statewide 
 25.1   economic benefits.  In addition, the baseball park will 
 25.2   specifically benefit retail and service businesses within the 
 25.3   surrounding area.  The legislature finds that the designation by 
 25.4   the commission, in consultation with the city, of the area 
 25.5   surrounding the baseball park as a baseball park district and 
 25.6   the imposition of taxes or fees within the district will more 
 25.7   equitably apportion the burdens of funding the baseball park 
 25.8   among those benefiting from the baseball park. 
 25.9      Sec. 4.  [473I.04] [ADMISSION TAX; TICKET SURCHARGE.] 
 25.10     The commission may by resolution impose and maintain a tax 
 25.11  upon the sales or use, within the metropolitan area, of the 
 25.12  granting by any private or public person, association, or 
 25.13  corporation, of the privilege of admission to activities at the 
 25.14  baseball park.  The commission may impose this tax as a 
 25.15  percentage of the sales prices or as a fixed dollar ticket 
 25.16  surcharge per admission or both.  No other tax, surcharge, or 
 25.17  governmental imposition, except the taxes imposed by chapter 
 25.18  297A or under section 473I.05, may be levied by any other unit 
 25.19  of government upon that sale or distribution.  A tax or 
 25.20  surcharge under this section is included in the sale price for 
 25.21  purposes of the tax under chapter 297A.  If the commission 
 25.22  imposes a ticket surcharge, it must be at least $1 per ticket 
 25.23  for the seats affected.  The commission and the baseball team 
 25.24  may by mutual agreement exempt sections of the baseball park 
 25.25  from the tax based on the sales price, the ticket surcharge, or 
 25.26  both.  The tax must be stated and charged separately from the 
 25.27  sales price so far as practicable.  The resolution of the 
 25.28  commission may require the tax to be collected by the grantor, 
 25.29  issuer, seller, or distributor from the person admitted.  The 
 25.30  tax is a debt from that person to the grantor, issuer, seller, 
 25.31  or distributor, and the tax required to be collected is a debt 
 25.32  owed by the grantor, issuer, seller, or distributor to the 
 25.33  commission.  The debt is recoverable at law in the same manner 
 25.34  as other debts.  Every person who grants, issues, sells, or 
 25.35  distributes tickets for the admissions may be required, as 
 25.36  provided in resolutions of the commission to secure a permit, to 
 26.1   file returns, to deposit security for the payment of the tax, 
 26.2   and to pay penalties for nonpayment and interest on late 
 26.3   payments, that are considered necessary or expedient to ensure 
 26.4   the prompt and uniform collection of the tax.  Receipts from the 
 26.5   admission tax must be deposited in the state treasury and 
 26.6   credited to the baseball park account in the special revenue 
 26.7   fund. 
 26.8      Sec. 5.  [473I.05] [SPORTS FACILITIES SALES TAX.] 
 26.9      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 26.10  subdivision and chapter 297A apply to this section. 
 26.11     (b) "Sports facilities sale" means any transaction, 
 26.12  including a transfer of tangible personal property, granting of 
 26.13  the privilege of admission, or provision of other taxable 
 26.14  services, that: 
 26.15     (1) occurs on the premises of the baseball park or the 
 26.16  metrodome as defined in section 473.551, subdivision 9; 
 26.17     (2) that would be taxable under chapter 297A but for the 
 26.18  exemption under section 297A.25, subdivision 73; and 
 26.19     (3) are made at or in connection with a major league 
 26.20  baseball game or a national football league game.  
 26.21     Subd. 2.  [TAX IMPOSED.] (a) The commission may by 
 26.22  resolution impose a tax on sports facilities sales at the rate 
 26.23  of 3.5 percent. 
 26.24     (b) The tax imposed under this section is in lieu of all 
 26.25  other state and local taxes imposed on sports facilities sales, 
 26.26  except taxes under section 473I.03 and chapter 297A. 
 26.27     Subd. 3.  [COLLECTION.] The tax imposed by this section 
 26.28  must be collected in the manner provided for taxes imposed under 
 26.29  chapter 297A and in accordance with an agreement between the 
 26.30  commission and the commissioner of revenue. 
 26.31     Subd. 4.  [DISPOSITION OF PROCEEDS.] All revenues, 
 26.32  including interest and penalties, derived from the tax must be 
 26.33  deposited in the state treasury.  An amount that equals the 
 26.34  direct department costs necessary to administer, audit, and 
 26.35  collect this tax must be credited to the general fund.  The 
 26.36  balance must be credited to the baseball park account in the 
 27.1   special revenue fund.  
 27.2      Sec. 6.  [473I.06] [PARKING TAX.] 
 27.3      Subdivision 1.  [TAX IMPOSED.] The commission may by 
 27.4   resolution impose a parking tax of not less than $1 per vehicle 
 27.5   per event at the baseball park.  A tax imposed under this 
 27.6   section is included in the sale price for purposes of the tax 
 27.7   under chapter 297A.  The commission shall consult with the city 
 27.8   about the definition of event parking and the rate of the tax 
 27.9   before imposing or adjusting the tax.  
 27.10     Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 27.11  in the area providing event parking, as mutually agreed by the 
 27.12  city and the commission, except for parking at a parking meter. 
 27.13     Subd. 3.  [COLLECTION.] The tax imposed under this section 
 27.14  must be reported and paid to the commissioner of revenue with 
 27.15  the taxes imposed in chapter 297A and in accordance with an 
 27.16  agreement between the commission and the commissioner of 
 27.17  revenue.  It is subject to the same interest, penalty, and other 
 27.18  provisions provided for sales and use taxes under chapters 289A 
 27.19  and 297A.  The commissioner has the same powers to assess and 
 27.20  collect the tax that are given the commissioner in chapters 270, 
 27.21  289A, and 297A to assess and collect sales and use tax. 
 27.22     Subd. 4.  [DISPOSITION OF PROCEEDS.] All revenues, 
 27.23  including interest and penalties, derived from the tax must be 
 27.24  deposited in the state treasury.  An amount that equals the 
 27.25  direct department costs necessary to administer, audit, and 
 27.26  collect this tax must be credited to the general fund.  The 
 27.27  balance must be credited to the baseball park account in the 
 27.28  special revenue fund.  
 27.29     Sec. 7.  [473I.07] [BASEBALL PARK INCOME SURTAX.] 
 27.30     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 27.31  resolution impose a tax on the taxable baseball park income of a 
 27.32  qualified employee of a sports organization that uses the 
 27.33  baseball park or the metrodome, as defined in section 473.551, 
 27.34  subdivision 9.  The tax equals four percent of taxable baseball 
 27.35  park income for the taxable year. 
 27.36     Subd. 2.  [DEFINITIONS.] (a) The definitions in this 
 28.1   subdivision and chapter 290 apply to this section. 
 28.2      (b) "Taxable baseball park income" means wages, salaries, 
 28.3   or other compensation derived from the performance of personal 
 28.4   services for a sports organization in the metropolitan area.  
 28.5   For both residents and nonresidents, the amount attributable to 
 28.6   performance of personal services for a sports organization is 
 28.7   determined by first subtracting $150,000 from total compensation 
 28.8   for the performance of personal services and then applying the 
 28.9   allocation rules under section 290.17, subdivision 2, paragraph 
 28.10  (a), clauses (1) and (2), except the services performed and the 
 28.11  days or performances in the metropolitan area are to be used 
 28.12  instead of services, days, or performances in Minnesota.  The 
 28.13  amount may not be less than zero. 
 28.14     (c) A "qualified employee" means an employee who derives 
 28.15  wages, salaries, or other compensation of at least $150,000 for 
 28.16  the performance of personal services from a sports organization 
 28.17  for the taxable year. 
 28.18     (d) A "sports organization" means any organization that 
 28.19  operates a major league baseball franchise.  A sports 
 28.20  organization includes a visiting team regardless of whether it 
 28.21  has a direct agreement with the owner or operator of the 
 28.22  baseball park. 
 28.23     Subd. 3.  [COLLECTION.] The tax imposed by this section 
 28.24  must be collected in the manner provided for individual income 
 28.25  taxes imposed under chapter 290 and in accordance with an 
 28.26  agreement between the commission and the commissioner of revenue.
 28.27     Subd. 4.  [DISPOSITION OF PROCEEDS.] All revenues, 
 28.28  including interest and penalties, derived from the tax must be 
 28.29  deposited in the state treasury.  An amount that equals the 
 28.30  direct department costs necessary to administer, audit, and 
 28.31  collect this tax must be credited to the general fund.  The 
 28.32  balance must be credited to the baseball park account in the 
 28.33  special revenue fund.  
 28.34     Sec. 8.  [473I.08] [ADDITIONAL BASEBALL REVENUES.] 
 28.35     After the outstanding debt on the metrodome has been 
 28.36  defeased under article 3, section 8, the following amounts must 
 29.1   be deposited in the state treasury and credited to the baseball 
 29.2   park account in the special revenue fund: 
 29.3      (1) the admissions tax under section 473.595, subdivision 
 29.4   1, on major league baseball games; and 
 29.5      (2) rent paid for use of the metrodome and the baseball 
 29.6   park by a major league baseball franchise of not less than 
 29.7   $3,500,000 per year for the term of the lease agreement. 
 29.8      Sec. 9.  [473I.09] [BROADCAST FEES.] 
 29.9      The commission shall impose fees on the use by the 
 29.10  broadcast media of the baseball park to broadcast major league 
 29.11  baseball games.  These fees must not be less than $10,000 per 
 29.12  game per broadcast outlet for video broadcasting, including 
 29.13  cable television broadcasting, and $5,000 per game per radio 
 29.14  outlet for radio or other audio only broadcasting.  Revenues 
 29.15  from these fees must be deposited in the state treasury and 
 29.16  credited to the baseball park account in the special revenue 
 29.17  fund. 
 29.18     Sec. 10.  [APPLICATION.] 
 29.19     Sections 1 and 2 to 9 apply in the counties of Anoka, 
 29.20  Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 
 29.21     Sec. 11.  [EFFECTIVE DATE.] 
 29.22     This article is effective the day following final 
 29.23  enactment.  If bonds have not been issued as authorized in this 
 29.24  act by December 31, 1999, this article expires on January 1, 
 29.25  2000.  If the article expires under this authority, any 
 29.26  unexpected appropriations of the baseball park account revenues 
 29.27  cancel and the amounts revert to the state general fund. 
 29.28                             ARTICLE 3 
 29.29                             GOVERNANCE 
 29.30     Section 1.  Minnesota Statutes 1996, section 473.551, 
 29.31  subdivision 3, is amended to read: 
 29.32     Subd. 3.  [COMMISSION.] "Commission" means the metropolitan 
 29.33  Minnesota sports facilities commission. 
 29.34     Sec. 2.  Minnesota Statutes 1996, section 473.553, 
 29.35  subdivision 1, is amended to read: 
 29.36     Subdivision 1.  [GENERAL.] The metropolitan Minnesota 
 30.1   sports facilities commission is established and as a public 
 30.2   corporation and political subdivision of the state that may 
 30.3   exercise its powers in the metropolitan area, as provided by 
 30.4   law.  The commission shall be organized, structured, and 
 30.5   administered as provided in this section. 
 30.6      Sec. 3.  Minnesota Statutes 1996, section 473.553, 
 30.7   subdivision 2, is amended to read: 
 30.8      Subd. 2.  [MEMBERSHIP.] The commission shall consist of six:
 30.9      (1) eight voting members, appointed by the city council of 
 30.10  the city in which the stadium is located plus governor, one from 
 30.11  each congressional district; 
 30.12     (2) a chair appointed as provided in subdivision 3.; 
 30.13     (3) two voting members for each facility to be appointed by 
 30.14  the mayor of each city with a major league professional sports 
 30.15  organization with a long-term use agreement to use a publicly 
 30.16  owned, major league professional sports facility located in that 
 30.17  city; and 
 30.18     (4) four nonvoting members appointed as provided in 
 30.19  subdivision 2a. 
 30.20     Members appointed by the governor, shall be appointed as 
 30.21  provided in section 15.0597.  The governor's appointments to the 
 30.22  commission are subject to the advice and consent of the senate 
 30.23  as provided in section 15.066.  
 30.24     Sec. 4.  Minnesota Statutes 1996, section 473.553, is 
 30.25  amended by adding a subdivision to read: 
 30.26     Subd. 2a.  [NONVOTING MEMBERS.] Four legislators shall 
 30.27  serve as nonvoting members of the commission.  One state 
 30.28  representative shall be appointed by the speaker of the house 
 30.29  and one state representative shall be appointed by the house 
 30.30  minority caucus leader.  Two state senators shall be appointed 
 30.31  by the subcommittee on committees of the senate committee on 
 30.32  rules and administration, one from the majority caucus, and one 
 30.33  from the minority caucus. 
 30.34     Sec. 5.  Minnesota Statutes 1996, section 473.553, 
 30.35  subdivision 3, is amended to read: 
 30.36     Subd. 3.  [CHAIR.] The chair shall be appointed by the 
 31.1   governor as the ninth voting member and shall meet all of the 
 31.2   qualifications of a member, except the chair need only reside 
 31.3   outside the city of Minneapolis elected by and from among the 
 31.4   members of the commission.  The chair shall preside at all 
 31.5   meetings of the commission, if present, and shall perform all 
 31.6   other duties and functions assigned by the commission or by 
 31.7   law.  The commission may appoint from among its members a 
 31.8   vice-chair to act for the chair during temporary absence or 
 31.9   disability. 
 31.10     Sec. 6.  Minnesota Statutes 1996, section 473.553, 
 31.11  subdivision 4, is amended to read: 
 31.12     Subd. 4.  [QUALIFICATIONS.] A member shall not during a 
 31.13  term of office hold the office of metropolitan council 
 31.14  member or, be a member of another metropolitan agency or hold 
 31.15  any judicial office or office of state or local government.  
 31.16  None of the members appointed by the city council of the city in 
 31.17  which the stadium is located shall be an elected public official 
 31.18  of that city or of another political subdivision any part of 
 31.19  whose territory is shared with that city.  Each member shall 
 31.20  qualify by taking and subscribing the oath of office prescribed 
 31.21  by the Minnesota Constitution, article V, section 6.  The oath, 
 31.22  duly certified by the official administering it, shall be filed 
 31.23  with the chair of the metropolitan council secretary of state.  
 31.24     Sec. 7.  Minnesota Statutes 1996, section 473.553, 
 31.25  subdivision 5, is amended to read: 
 31.26     Subd. 5.  [TERMS.] The initial terms of three the members 
 31.27  shall end the first Monday in January in the year ending in the 
 31.28  numeral "5" from the first, third, fifth, and seventh 
 31.29  congressional districts are for two years.  The initial terms of 
 31.30  the other members appointed by the governor and the chair shall 
 31.31  end the first Monday in January in the year ending in the 
 31.32  numeral "7" are for four years.  Thereafter, the term of each 
 31.33  member appointed by the governor and the chair shall be four 
 31.34  years.  The terms shall continue until a successor is appointed 
 31.35  and qualified.  Members may be removed only for cause.  The 
 31.36  other members serve at the pleasure of the respective appointing 
 32.1   authorities. 
 32.2      Sec. 8.  [SALE OF MET CENTER; DEFEASANCE OF METRODOME 
 32.3   BONDS.] 
 32.4      Subdivision 1.  [SALE.] The commission shall sell the met 
 32.5   center by March 1, 1998 for the full appraised value.  
 32.6      Subd. 2.  [DEFEASANCE OF METRODOME BONDS.] Upon the sale of 
 32.7   the met center, the commission shall escrow money or securities 
 32.8   sufficient to defease the outstanding debt on the metrodome. 
 32.9      Subd. 3.  [USE OF PROPERTY.] The commission shall include 
 32.10  in the contract for sale of the met center a provision that 
 32.11  prohibits use by the purchaser or any other party of the 
 32.12  property for a convention center. 
 32.13     Sec. 9.  [TRANSITION.] 
 32.14     Members of the metropolitan sports facilities commission 
 32.15  shall serve as members of the Minnesota sports facilities 
 32.16  commission until members have been appointed and qualified as 
 32.17  provided in this article. 
 32.18     Sec. 10.  [REVISOR INSTRUCTION.] 
 32.19     The revisor of statutes shall replace "metropolitan sports 
 32.20  facilities commission" with "Minnesota sports facilities 
 32.21  commission" wherever it appears in the next edition of Minnesota 
 32.22  Statutes. 
 32.23     Sec. 11.  [REPEALER.] 
 32.24     Minnesota Statutes 1996, section 473.553, subdivision 14, 
 32.25  is repealed. 
 32.26     Sec. 12.  [APPLICATION; EFFECTIVE DATE.] 
 32.27     This article applies in the counties of Anoka, Carver, 
 32.28  Dakota, Hennepin, Ramsey, Scott, and Washington, and is 
 32.29  effective May 1, 1998.