SF 9

Introduction - 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 sports; authorizing and specifying terms 
  1.3             of a limited partnership to construct, own, and 
  1.4             provide for the operation of a major league baseball 
  1.5             stadium; authorizing bonds and taxes and tax 
  1.6             exemptions; appropriating money; amending Minnesota 
  1.7             Statutes 1997 Supplement, section 297A.44, subdivision 
  1.8             1; proposing coding for new law in Minnesota Statutes, 
  1.9             chapters 16A; and 473. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1 
  1.12                        LIMITED PARTNERSHIP 
  1.13     Section 1.  [473.5729] [FINDINGS; PUBLIC PURPOSE.] 
  1.14     The legislature finds that: 
  1.15     (1) obtaining and securing the retention and location of 
  1.16  professional major league sports teams in the state and within 
  1.17  the metropolitan area provides economic development, attracts 
  1.18  and secures additional employment, maintains and enhances the 
  1.19  tax base upon which the state and its political subdivisions 
  1.20  depend for the financing of other governmental functions, and 
  1.21  provides important social, entertainment, recreational, and 
  1.22  tourism opportunities for the state and its citizens; 
  1.23     (2) the retention of major league professional baseball and 
  1.24  the construction of an additional baseball facility in the state 
  1.25  and within the metropolitan area, by reasonable methods that the 
  1.26  legislature and the commission may devise to further secure and 
  1.27  promote these public purposes, will increase and enhance the 
  2.1   value and public benefits afforded to the state and its 
  2.2   citizens; and 
  2.3      (3) it is therefore necessary for the general welfare of 
  2.4   the public to aid in the financing of the acquisition, 
  2.5   construction, and operation of a new baseball facility and to 
  2.6   retain and secure the long-term commitment of a major league 
  2.7   professional baseball team by reasonable means, including a 
  2.8   unique public-private investment partnership, and by authorizing 
  2.9   other financing and other arrangements as necessary to 
  2.10  accomplish that purpose.  It is hereby determined and declared 
  2.11  that the purposes of this act are public and governmental. 
  2.12     Sec. 2.  [473.573] [PARTICIPATION IN STADIUM PARTNERSHIP.] 
  2.13     The public authority as defined in section 3 may 
  2.14  participate in a limited partnership that has as its purpose to 
  2.15  construct and own a baseball stadium to be leased to the 
  2.16  Minnesota Twins major league baseball team on a 20-year lease.  
  2.17  Included in the lease must be the option for the team to play 
  2.18  April and after September 15 regular season and post-season 
  2.19  games in the existing metrodome and and other regular season 
  2.20  games that could be canceled by inclement weather if the 
  2.21  metrodome facility is available. 
  2.22     The limited partnership is subject to an agreement 
  2.23  detailing the rights and responsibilities of the various 
  2.24  partners and is contingent on an agreement which is acceptable 
  2.25  to all partners. 
  2.26     Sec. 3.  [473.574] [PUBLIC AUTHORITY.] 
  2.27     In this act, the public authority means the metropolitan 
  2.28  sports facilities commission or its successor organization. 
  2.29     The public authority is the general partner and is 
  2.30  responsible for the management of the partnership. 
  2.31     Sec. 4.  [473.575] [STADIUM PARTNERSHIP.] 
  2.32     Subdivision 1.  [INVESTMENT INTERESTS.] (a) The public 
  2.33  authority's participation in the limited partnership under 
  2.34  section 2 is contingent upon each of the limited partners 
  2.35  formally committing by November 30, 1997, to making the 
  2.36  contributions to the partnership to construct a new major league 
  3.1   baseball stadium set out in this section.  The limited partners 
  3.2   are:  
  3.3      (1) the public authority, with an investment of 
  3.4   $80,000,000; 
  3.5      (2) the owners of the Minnesota Twins major league baseball 
  3.6   team, with an investment of $80,000,000; and 
  3.7      (3) another limited partner as defined in section 322A.01, 
  3.8   clause (8), made up of private sector investors, with an 
  3.9   investment of $80,000,000. 
  3.10     (b) The initial duration of the partnership is 20 years.  
  3.11  The participation of the public authority in the partnership as 
  3.12  a limited and general partner is further contingent upon the 
  3.13  Minnesota Twins major league baseball team entering into an 
  3.14  agreement with the public authority to use the stadium for all 
  3.15  scheduled regular season and post-season games for 20 years. 
  3.16     Subd. 2.  [STATE BONDS.] The state shall contribute 
  3.17  $80,000,000 from the proceeds of bonds issued and sold pursuant 
  3.18  to section 16A.663 towards the construction of the major league 
  3.19  baseball stadium, title to which must remain in the public 
  3.20  authority until the bonds are retired or defeased, though it may 
  3.21  be leased to the partnership as provided in section 16A.695. 
  3.22     Sec. 5.  [473.576] [OPTIONS AT END OF INITIAL PARTNERSHIP.] 
  3.23     At the end of the initial 20-year partnership, three 
  3.24  options are available to the partnership: 
  3.25     (1) renew the partnership for a term to be agreed upon; 
  3.26     (2) negotiate a buy out of the partnership by one or more 
  3.27  of the limited partners; or 
  3.28     (3) sale of the stadium to a nonpartner. 
  3.29     Sec. 6.  [473.5761] [SITE.] 
  3.30     Except as provided in section 11, the city of Minneapolis 
  3.31  and Hennepin county are responsible for making a site available 
  3.32  by means of a 20-year land lease to the public authority with an 
  3.33  option for the authority to renew the lease or purchase the site 
  3.34  at its 1997 value as determined in 1997 by one appraiser 
  3.35  appointed by each party and a third chosen by the other two 
  3.36  appraisers, and for preparation including required 
  4.1   infrastructure. 
  4.2      Sec. 7.  [473.5762] [ADDITIONAL AUTHORITY, TERMS, 
  4.3   CONDITIONS.] 
  4.4      Subdivision 1.  [JOINT POWERS.] The public authority may 
  4.5   jointly or cooperatively exercise powers under section 471.59, 
  4.6   according to the terms of that section, with any other 
  4.7   governmental unit that may make use of section 471.59 with 
  4.8   another entity. 
  4.9      Subd. 2.  [PROPERTY TAX EXEMPTION.] Any real or personal 
  4.10  property acquired, owned, leased, controlled, used, or occupied 
  4.11  by the public authority for any of the purposes of this act is 
  4.12  declared to be acquired, owned, leased, controlled, used, and 
  4.13  occupied for public, governmental, and municipal purposes and is 
  4.14  exempt from ad valorem taxation by the state or any political 
  4.15  subdivision of the state.  The properties are subject to special 
  4.16  assessments levied by a political subdivision for a local 
  4.17  improvement in amounts proportionate to and not exceeding the 
  4.18  special benefit received by the properties from the 
  4.19  improvement.  A possible use of the properties in any manner 
  4.20  different from their use under this act at the time must not be 
  4.21  considered in determining the special benefit received by the 
  4.22  properties.  Notwithstanding section 272.01, subdivision 2, or 
  4.23  273.19, real or personal property comprising all or part of the 
  4.24  baseball stadium leased by the limited partnership described in 
  4.25  this act or by its general partner to another for the operation 
  4.26  of the baseball facility is exempt from taxation regardless of 
  4.27  the length of the lease. 
  4.28     Subd. 3.  [CAPITAL REPAIR; IMPROVEMENTS.] The public 
  4.29  authority is responsible for capital repairs, improvements, and 
  4.30  enhancements and betterments necessary to maintain the baseball 
  4.31  stadium as a state-of-the-art facility.  A capital improvement 
  4.32  fund must be established by the public authority. 
  4.33     Subd. 4.  [OPERATING COSTS.] (a) The team owner shall fund 
  4.34  the operating expenses of the baseball stadium.  The public 
  4.35  authority or the limited partnership is not liable for any 
  4.36  operating loss of the team.  The public authority shall not 
  5.1   reimburse the owner or any creditor of the team for any 
  5.2   operating loss of the team. 
  5.3      (b) Except when precluded by the Twins scheduled games 
  5.4   including post-season games, the operator of the stadium must 
  5.5   make the stadium reasonably available at its costs for 
  5.6   appropriate University of Minnesota and other amateur sports 
  5.7   events that are anticipated to attract a crowd that cannot be 
  5.8   expected to be accommodated in any other available facility. 
  5.9      Subd. 5.  [RECOMMENDATIONS ON GOVERNING BODY.] The public 
  5.10  authority shall make recommendations to the legislature with 
  5.11  respect to a new or broadened membership structure for itself or 
  5.12  for its replacement by another public entity that will 
  5.13  adequately represent the interests of the public with respect to 
  5.14  the stadium and its other duties and responsibilities.  The 
  5.15  recommendations must be delivered to the chairs of the house 
  5.16  local government and metropolitan affairs committee and the 
  5.17  senate local and metropolitan government committee by February 
  5.18  1, 1998. 
  5.19     Sec. 8.  [473.5763] [ADMISSION TAX OR TICKET SURCHARGE.] 
  5.20     The public authority shall by resolution impose and 
  5.21  maintain an admission tax or ticket surcharge upon the granting, 
  5.22  issuance, sale, or distribution, by any private or public 
  5.23  person, association, or corporation, of the privilege of 
  5.24  admission to activities at the baseball facility.  No other tax, 
  5.25  surcharge, or governmental imposition, except the taxes imposed 
  5.26  by chapter 297A, may be levied by any other unit of government 
  5.27  upon any such sale or distribution.  The admission tax or ticket 
  5.28  surcharge must be stated and charged separately from the sales 
  5.29  price so far as practicable and must be collected by the 
  5.30  grantor, seller, or distributor from the person admitted and is 
  5.31  a debt from that person to the grantor, issuer, seller, or 
  5.32  distributor, and the tax required to be collected is a debt owed 
  5.33  by the grantor, issuer, seller, or distributor to the public 
  5.34  authority.  The debt is recoverable at law in the same manner as 
  5.35  other debts.  Every person who grants, issues, sells, or 
  5.36  distributes tickets for the admissions may be required, as 
  6.1   provided in resolutions of the public authority to secure a 
  6.2   permit, to file returns, to deposit security for the payment of 
  6.3   the tax, and to pay penalties for nonpayment and interest on 
  6.4   late payments, that are considered necessary or expedient to 
  6.5   ensure the prompt and uniform collection of the tax. 
  6.6      Sec. 9.  [473.5764] [REVENUE TO PARTNERSHIP.] 
  6.7      (a) The public authority shall collect the following 
  6.8   revenue for the partnership: 
  6.9      (1) rent from the Minnesota Twins; 
  6.10     (2) a tax on the price of admission to Minnesota Twins 
  6.11  baseball games and other events at the stadium as provided in 
  6.12  section 8; and 
  6.13     (3) proceeds from the sale or lease of naming rights to the 
  6.14  stadium facility itself, or parts of it. 
  6.15     (b) This revenue must be used for capital improvements and 
  6.16  other expenses of the general partner. 
  6.17     Sec. 10.  [473.5765] [CONSTRUCTION MATERIALS; SALES TAX 
  6.18  EXEMPTION.] 
  6.19     Purchases of materials and supplies used or consumed in 
  6.20  constructing or incorporated into the construction of the 
  6.21  baseball stadium described in section 2, are exempt from the 
  6.22  taxes imposed under chapter 297A, and from any sales and use tax 
  6.23  imposed by a local unit of government notwithstanding any 
  6.24  ordinance or charter provision.  This exemption applies 
  6.25  regardless of whether the materials and supplies are purchased 
  6.26  by the owner of the baseball facility, the construction 
  6.27  managers, or by a contractor or subcontractor. 
  6.28     Sec. 11.  [473.5766] [ALTERNATE SITE.] 
  6.29     If the city of Minneapolis declines or is unable to make a 
  6.30  site available for lease and provide the required infrastructure 
  6.31  as provided in this article, the major league baseball stadium 
  6.32  may be located in Bloomington on land owned or acquired by the 
  6.33  public authority. 
  6.34     Sec. 12.  [APPROPRIATION.] 
  6.35     The proceeds of the bonds issued under article 2 are 
  6.36  appropriated from the bond proceeds fund to the commissioner of 
  7.1   trade and economic development for a grant to the public 
  7.2   authority for construction of the major league baseball stadium 
  7.3   as provided in this act. 
  7.4                              ARTICLE 2 
  7.5                             STATE BONDS 
  7.6      Section 1.  [16A.663] [GENERAL OBLIGATION SPECIAL TAX 
  7.7   BONDS.] 
  7.8      Subdivision 1.  [AUTHORITY.] In accordance with the 
  7.9   constitution, article XI, sections 5 and 7, the commissioner may 
  7.10  by order sell and issue general obligation special tax bonds of 
  7.11  the state evidencing public debt incurred for any purpose stated 
  7.12  in article 1 in an amount up to $80,000,000.  The bonds are 
  7.13  payable primarily from the proceeds of special taxes 
  7.14  appropriated to special tax bond debt service account No. 2 
  7.15  established in subdivision 3 and other money on hand in that 
  7.16  fund from time to time; however, the bonds are general 
  7.17  obligations of the state, and the full faith and credit of the 
  7.18  state are pledged for their payment. 
  7.19     Subd. 2.  [MANNER OF ISSUANCE; MATURITIES.] The bonds must 
  7.20  be issued and sold in accordance with section 16A.641, except 
  7.21  that the maturities of the bonds must not exceed 15 years from 
  7.22  the date of issue.  Sections 16A.672 and 16A.675 apply to the 
  7.23  bonds.  
  7.24     Subd. 3.  [ESTABLISHMENT OF DEBT SERVICE FUND; 
  7.25  APPROPRIATION OF DEBT SERVICE FUND MONEY.] There is established 
  7.26  within the state bond fund a separate and special account 
  7.27  designated as general obligation special tax bond debt service 
  7.28  account No. 2.  There must be credited to this debt service 
  7.29  account in each fiscal year from the sports and health club 
  7.30  sales tax revenue fund established in section 297A.44 an amount 
  7.31  sufficient to increase the balance on hand in the debt service 
  7.32  account on each December 1 to an amount equal to the full amount 
  7.33  of principal and interest to come due on all outstanding bonds 
  7.34  whose debt service is payable primarily from proceeds of the tax 
  7.35  to and including the second following July 1.  The money on hand 
  7.36  in the debt service account must be used solely for the payment 
  8.1   of the principal of, and interest on, the bonds, and is 
  8.2   appropriated for this purpose.  This appropriation does not 
  8.3   cancel as long as any of the bonds remain outstanding. 
  8.4      Subd. 4.  [APPROPRIATION FROM GENERAL FUND.] There is 
  8.5   annually appropriated to the general obligation special tax bond 
  8.6   debt service account No. 2 from the general fund the amount 
  8.7   that, added to the amount in the general obligation special tax 
  8.8   bond debt service account No. 2 on December 1 each year, after 
  8.9   giving effect to subdivision 3, is equal to the full amount of 
  8.10  principal and interest to come due on all bonds to and including 
  8.11  July 1 in the second ensuing year. 
  8.12     Subd. 5.  [CONSTITUTIONAL TAX LEVY.] Under the 
  8.13  constitution, article XI, section 7, the state auditor must levy 
  8.14  each year on all taxable property within the state a tax 
  8.15  sufficient, with the amount then on hand in the general 
  8.16  obligation special tax bond debt service account No. 2, to pay 
  8.17  all principal and interest on the bonds due and to become due to 
  8.18  and including July 1 in the second ensuing year.  The tax is not 
  8.19  subject to limit as to rate or amount.  However, the amount of 
  8.20  money appropriated from other sources as provided in 
  8.21  subdivisions 3 and 4, and actually received and on hand before 
  8.22  the levy in any year, reduces the amount of the tax otherwise 
  8.23  required to be levied.  The proceeds of the tax must be credited 
  8.24  to general obligation special tax bond debt service account No. 
  8.25  2. 
  8.26     Subd. 6.  [APPLICATION AND APPROPRIATION OF PROCEEDS.] The 
  8.27  proceeds of the bonds must be deposited and spent as provided in 
  8.28  this subdivision and are appropriated for those purposes.  Any 
  8.29  accrued interest and any premium received on the sale of the 
  8.30  bonds, and any amount of bond proceeds determined by the 
  8.31  commissioner to be needed to pay interest payable on the bonds 
  8.32  up to 18 months following their issuance, must be credited to 
  8.33  general obligation special tax bond debt service account No. 2.  
  8.34  Except as otherwise required by law, the balance of the bond 
  8.35  proceeds shall be credited to the bond proceeds fund and spent 
  8.36  for the purposes specified in this act.  So much of the proceeds 
  9.1   as is necessary must be used to pay costs incurred in issuing 
  9.2   and selling the bonds. 
  9.3      Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  9.4   297A.44, subdivision 1, is amended to read: 
  9.5      Subdivision 1.  (a) Except as provided in paragraphs (b) 
  9.6   and (c), all revenues, including interest and penalties, derived 
  9.7   from the excise and use taxes imposed by sections 297A.01 to 
  9.8   297A.44 shall be deposited by the commissioner in the state 
  9.9   treasury and credited to the general fund.  
  9.10     (b) All excise and use taxes derived from sales and use of 
  9.11  property and services purchased for the construction and 
  9.12  operation of an agricultural resource project, from and after 
  9.13  the date on which a conditional commitment for a loan guaranty 
  9.14  for the project is made pursuant to section 41A.04, subdivision 
  9.15  3, shall be deposited in the Minnesota agricultural and economic 
  9.16  account in the special revenue fund.  The commissioner of 
  9.17  finance shall certify to the commissioner the date on which the 
  9.18  project received the conditional commitment.  The amount 
  9.19  deposited in the loan guaranty account shall be reduced by any 
  9.20  refunds and by the costs incurred by the department of revenue 
  9.21  to administer and enforce the assessment and collection of the 
  9.22  taxes.  
  9.23     (c) All revenues, including interest and penalties, derived 
  9.24  from the excise and use taxes imposed on sales and purchases 
  9.25  included in section 297A.01, subdivision 3, paragraphs (d) and 
  9.26  (k), clauses (1) and (2), must be deposited by the commissioner 
  9.27  in the state treasury, and credited as follows: 
  9.28     (1) first to the general obligation special tax bond debt 
  9.29  service account in each fiscal year the amount required by 
  9.30  section 16A.661, subdivision 3, paragraph (b); and 
  9.31     (2) then to general obligation special tax bond debt 
  9.32  service account No. 2 in each fiscal year the amount required by 
  9.33  section 16A.663, subdivision 3; and 
  9.34     (3) after the requirements of clause clauses (1) and (2) 
  9.35  have been met, the balance must be credited to the general fund. 
  9.36                             ARTICLE 3
 10.1                            EFFECTIVE DATE
 10.2      Section 1.  [EFFECTIVE DATE.] 
 10.3      This act is effective the day after its final enactment.