1.1                          A bill for an act 
  1.2             relating to a stadium; financing a major league 
  1.3             professional baseball stadium; requiring private 
  1.4             funding; providing for an interest-free loan; 
  1.5             providing for a temporary tax-free zone on certain 
  1.6             retail sales; creating a site selection commission; 
  1.7             providing for the issuance of bonds; providing for 
  1.8             disposition of the metrodome and the land it occupies 
  1.9             under certain conditions; transferring funds from the 
  1.10            assigned risk plan; requiring enhanced revenue sharing 
  1.11            by major league baseball for act to take effect; 
  1.12            appropriating money; amending Minnesota Statutes 2000, 
  1.13            sections 272.02, by adding a subdivision; 297A.67, by 
  1.14            adding a subdivision; 297A.71, by adding a 
  1.15            subdivision; proposing coding for new law in Minnesota 
  1.16            Statutes, chapter 4A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  [FINDINGS AND INTENT.] 
  1.19     The legislature finds that major league baseball has value 
  1.20  to the citizens and economy of this state.  The legislature 
  1.21  further finds that this value can and should be protected 
  1.22  through the construction of a new baseball park to ensure the 
  1.23  successful continuation of major league baseball in Minnesota.  
  1.24  The legislature finds that this goal requires a public/private 
  1.25  partnership.  It is therefore the intention of the legislature 
  1.26  to support the construction of a baseball park to be 
  1.27  substantially financed with private support. 
  1.28     Sec. 2.  [PURPOSE.] 
  1.29     This act is designed to provide tax incentives to encourage 
  1.30  and stimulate private investment in a publicly owned baseball 
  1.31  park.  The goal of this act is to limit the total cost of public 
  2.1   assistance in this act, including the tax-free zone and interest 
  2.2   foregone on the interest-free loan, to an amount less than the 
  2.3   increased revenues to the state from enhanced income tax 
  2.4   payments from major league baseball over the life of the 
  2.5   stadium.  It is a further purpose of this act to move major 
  2.6   league baseball towards a revenue sharing agreement and an 
  2.7   economic system that makes baseball more competitive and 
  2.8   protects the financial interest of teams with below average 
  2.9   revenues.  Therefore, this act shall not become effective until 
  2.10  a determination is made that major league baseball and the major 
  2.11  league baseball players' association have created a new 
  2.12  financial structure requiring the league to ensure 
  2.13  competitiveness among all major league baseball teams and 
  2.14  thereby enhancing the viability of any new baseball park.  
  2.15     Sec. 3.  [4A.11] [SELECTION PROCESS; BASEBALL PARK.] 
  2.16     Subdivision 1.  [BASEBALL PARK.] The strategic and 
  2.17  long-range planning office shall assist the baseball site 
  2.18  commission formed under subdivision 2 in a process to provide 
  2.19  for the construction of an open-air baseball park to be built to 
  2.20  the specifications of the major league professional baseball 
  2.21  team and the unit of local government selected as a site for the 
  2.22  stadium. 
  2.23     Subd. 2.  [BASEBALL SITE COMMISSION.] The governor shall 
  2.24  appoint nine persons to serve on a baseball stadium site 
  2.25  selection commission and shall make these appointments within 15 
  2.26  days of the date the determination is made under section 4A.16.  
  2.27  One person shall be appointed from each of Minnesota's eight 
  2.28  congressional districts.  The ninth person shall be the director 
  2.29  of the strategic and long-range planning office who shall serve 
  2.30  as chair.  Members of the commission shall not receive 
  2.31  compensation for their service but may be compensated for 
  2.32  expenses by the strategic and long-range planning office.  The 
  2.33  commission shall select a stadium site.  
  2.34     Subd. 3.  [SELECTION PROCESS.] (a) The baseball site 
  2.35  commission shall select a unit of local government to provide a 
  2.36  site for the new baseball park. 
  3.1      (b) The required elements of the selection process are: 
  3.2      (1) the baseball site commission shall accept bids from any 
  3.3   interested unit of local government within the geographical 
  3.4   boundaries of the metropolitan council; 
  3.5      (2) acceptable bids must provide, at a minimum, for the 
  3.6   provision of land, in a condition appropriate for development, 
  3.7   and the provision of sufficient adjacent parking facilities to 
  3.8   be made available for use by the team; 
  3.9      (3) bids may include other subsidies and private or public 
  3.10  improvements for the enhancement of the baseball park; 
  3.11     (4) the bid must specify the intent of the unit of local 
  3.12  government to own and operate the stadium and demonstrate a 
  3.13  reasonable capacity to do so; 
  3.14     (5) in selecting a site, the baseball site commission shall 
  3.15  consider public infrastructure costs and significant potential 
  3.16  development advantages; and 
  3.17     (6) the baseball site commission shall end the acceptance 
  3.18  of bids three months after this act is made effective by the 
  3.19  determination under section 4A.16 and shall select a site for a 
  3.20  new baseball stadium within five months after this act is made 
  3.21  effective by that determination.  
  3.22     Sec. 4.  [4A.12] [FINANCING.] 
  3.23     Subdivision 1.  [PRIVATE FUNDING.] At least one-half of the 
  3.24  cost of the baseball park must be funded by the owner of the 
  3.25  major league professional baseball team or through other private 
  3.26  sector funding.  The local unit of government shall be the owner 
  3.27  of the baseball park and shall enter into an agreement with a 
  3.28  major league baseball team that provides for other private 
  3.29  investors and a long-term lease of not less than 30 years.  The 
  3.30  total cost of the baseball stadium, not including land and 
  3.31  parking development, shall not exceed $300,000,000. 
  3.32     Subd 2.  [INTEREST-FREE LOAN.] (a) The commissioner of 
  3.33  finance shall provide an interest-free loan, in the amount of 
  3.34  $100,000,000, from the revolving stadium loan fund created under 
  3.35  section 4A.13 to the unit of local government selected to own 
  3.36  the new stadium to be repaid by the owner of the major league 
  4.1   professional baseball team into the revolving stadium loan 
  4.2   fund.  The commissioner shall provide these funds to the unit of 
  4.3   local government when funds from the professional baseball team 
  4.4   specified under subdivision 1 are made available to that unit of 
  4.5   government. 
  4.6      (b) Scheduled dates for the repayment of the loan shall 
  4.7   begin one year after the first baseball game is played in the 
  4.8   new stadium or two years from the date of substantial 
  4.9   completion, whichever is later, and shall be repaid under terms 
  4.10  to be agreed to in a contract to be signed with the major league 
  4.11  baseball team and the director of the strategic and long-range 
  4.12  planning office.  The loan shall be guaranteed by the full faith 
  4.13  and credit of the major league baseball team. 
  4.14     (c) If insufficient funds exist in the revolving stadium 
  4.15  loan account to make the full loan under this subdivision, the 
  4.16  commissioner shall make a partial loan of such funds as are 
  4.17  available and shall complete the loan with funds received by the 
  4.18  stadium fund at a later date. 
  4.19     Subd. 3.  [BONDS.] Revenues from the bonds sold under 
  4.20  section 4A.13, subdivision 5, are appropriated to the local unit 
  4.21  of government selected under this act for the construction of 
  4.22  the stadium. 
  4.23     Subd. 4.  [CONSTRUCTION.] The major league professional 
  4.24  baseball team shall construct the baseball stadium and shall be 
  4.25  responsible for all cost overruns that may occur.  All funds 
  4.26  appropriated to the unit of local government under this act 
  4.27  shall be managed by the unit of local government and made 
  4.28  available to the team as the team deems necessary for 
  4.29  construction purposes. 
  4.30     Sec. 5.  [4A.13] [REVOLVING STADIUM LOAN FUND.] 
  4.31     Subdivision 1.  [CREATION.] A revolving stadium loan fund 
  4.32  is created as an account within the special revenue fund. 
  4.33     Subd. 2.  [RIVERCENTRE PAYMENT.] Notwithstanding Laws 1998, 
  4.34  chapter 404, section 23, subdivision 6, paragraph (b), the 
  4.35  commissioner shall deposit the repayments under that same 
  4.36  paragraph (b) in the revolving stadium loan fund to be 
  5.1   maintained by the commissioner for use in the construction of 
  5.2   stadiums in the metropolitan area. 
  5.3      Subd 3.  [METRODOME LAND.] Upon completion of a new 
  5.4   baseball stadium for the Minnesota Twins, and a new football 
  5.5   stadium for the Minnesota Vikings, or upon expiration of the 
  5.6   relevant leases for these teams, the metrodome and all land 
  5.7   under the metrodome are transferred to the state of Minnesota as 
  5.8   an asset of the revolving stadium loan fund.  The commissioner 
  5.9   of finance shall attempt to sell this asset for its highest 
  5.10  market value and deposit any net funds in the stadium account. 
  5.11     Subd. 4.  [ASSIGNED RISK PLAN TRANSFER.] The commissioner 
  5.12  of finance shall transfer $100,000,000 from the assigned risk 
  5.13  plan created under section 79.252 to the revolving stadium loan 
  5.14  fund one week after this act is made effective under section 
  5.15  4A.16.  Funds from the repayment of the loan made under section 
  5.16  4A.12, subdivision 2, are to be transferred to the assigned risk 
  5.17  plan by the commissioner to repay all funds transferred from the 
  5.18  assigned risk plan under this section. 
  5.19     Subd. 5.  [BONDS.] The metropolitan council shall issue 20 
  5.20  year revenue bonds in an amount not to exceed $40,000,000.  Debt 
  5.21  service for these bonds shall be paid from the revolving stadium 
  5.22  loan fund.  Each year the commissioner of finance shall transfer 
  5.23  the amount necessary from the revolving stadium loan fund to the 
  5.24  metropolitan council to cover the cost of bonds issued under 
  5.25  this subdivision.  Funds raised from these bonds shall be used 
  5.26  to pay construction costs of the new stadium. 
  5.27     Subd. 6.  [NAMING RIGHTS.] Naming rights from the major 
  5.28  league baseball stadium shall be sold by the unit of local 
  5.29  government that owns the stadium.  Revenues from that sale are 
  5.30  to be retained by the unit of local government and must be used 
  5.31  for operating costs of the stadium.  Any excess revenues after 
  5.32  operating costs are compensated for must be held by the unit of 
  5.33  local government in a reserve account, and used for long-term 
  5.34  refurbishment of the stadium. 
  5.35     Sec. 6.  [4A.14] [OBLIGATIONS; MAJOR LEAGUE PROFESSIONAL 
  5.36  BASEBALL TEAM.] 
  6.1      Subdivision 1.  [OBLIGATIONS PRIOR TO STATE 
  6.2   ASSISTANCE.] (a) The major league professional baseball team 
  6.3   must fully and completely do its part to accomplish the 
  6.4   requirements of paragraph (b) before it receives any state 
  6.5   assistance. 
  6.6      (b) The requirements are that: 
  6.7      (1) a signed lease for not less than 30 years between the 
  6.8   unit of local government selected by the council and the major 
  6.9   league professional baseball team must be completed, with no 
  6.10  escape clauses; 
  6.11     (2) the commissioner of finance must certify that the major 
  6.12  league professional baseball team can and will make available 
  6.13  $150,000,000 in private cash support to the local unit of 
  6.14  government for the construction of a baseball stadium; and 
  6.15     (3) the major league baseball team has signed an agreement 
  6.16  with the unit of local government agreeing to allow the stadium 
  6.17  to be available on nongame days for potential use by the 
  6.18  University of Minnesota, Minnesota state colleges and 
  6.19  universities, private colleges, and the state high school league.
  6.20     Subd. 2.  [OBLIGATIONS DURING CONSTRUCTION.] (a) The major 
  6.21  league professional baseball team has the obligations in 
  6.22  paragraph (b) during the period of construction of a baseball 
  6.23  stadium. 
  6.24     (b) The obligations are: 
  6.25     (1) the payment of prevailing wage levels as defined under 
  6.26  section 177.42 to all construction workers; 
  6.27     (2) the provision to the strategic and long-range planning 
  6.28  office of a signed agreement between the professional baseball 
  6.29  team and the construction unions that will work on the new 
  6.30  stadium that mandates a no-strike and no-lockout period during 
  6.31  construction of the baseball stadium; and 
  6.32     (3) the payment of any cost overruns that occur during the 
  6.33  construction period. 
  6.34     Sec. 7.  [4A.15] [OBLIGATIONS; STRATEGIC AND LONG-RANGE 
  6.35  PLANNING OFFICE.] 
  6.36     The director of the strategic and long-range planning 
  7.1   office shall negotiate and sign a contract, on behalf of the 
  7.2   state, to include a schedule for repayment of the loan made 
  7.3   under section 4A.12, subdivision 2.  
  7.4      Sec. 8.  [4A.16] [ACT NOT MADE EFFECTIVE UNTIL 
  7.5   DETERMINATION.] 
  7.6      (a) The governor shall appoint a special panel consisting 
  7.7   of three retired state court judges.  This special panel shall 
  7.8   receive and review any information from major league baseball 
  7.9   and shall make the determination under paragraph (b). 
  7.10     (b) Sections 1 to 10 of this act are effective the day 
  7.11  following the delivery to the governor by the special panel of a 
  7.12  statement that in the view of a majority of the panel, major 
  7.13  league baseball and the major league baseball players' 
  7.14  association have agreed upon a new economic system including 
  7.15  enhanced revenue sharing that makes baseball more competitive, 
  7.16  protects the financial interest of teams with below average 
  7.17  revenues, and enhances the viability of any new baseball park. 
  7.18     Sec. 9.  Minnesota Statutes 2000, section 272.02, is 
  7.19  amended by adding a subdivision to read: 
  7.20     Subd. 45.  [BASEBALL PARK.] Real or personal property 
  7.21  acquired, owned, leased, controlled, used, or occupied as a 
  7.22  stadium site by a major league professional baseball team is 
  7.23  exempt from taxation but the property is subject to special 
  7.24  assessments levied by a political subdivision for a local 
  7.25  improvement in amounts proportionate to and not exceeding the 
  7.26  special benefit received by the property from the improvement.  
  7.27  A use of the property in any manner different from its use under 
  7.28  sections 4A.11 to 4A.16 at the time must not be considered in 
  7.29  determining the special benefit received by the properties.  
  7.30  Notwithstanding section 272.01, subdivision 2, or 273.19, real 
  7.31  or personal property at the site of the baseball park leased by 
  7.32  the local unit of government that operates the baseball park to 
  7.33  another person for uses related to the purposes of sections 
  7.34  4A.11 to 4A.16 is exempt from taxation regardless of the length 
  7.35  of the lease.  This subdivision shall expire one month after 
  7.36  repayment of the loan made under section 4A.12, subdivision 2. 
  8.1      Sec. 10.  Minnesota Statutes 2000, section 297A.67, is 
  8.2   amended by adding a subdivision to read: 
  8.3      Subd. 26.  [BASEBALL PARK TAX-FREE ZONE.] Sales of 
  8.4   admissions, tangible personal property, novelties, food, 
  8.5   beverages, parking services, club seats and suites, advertising, 
  8.6   and other retail sales at the site of the baseball park 
  8.7   constructed under section 4A.12 are exempt from all state and 
  8.8   local sales taxes.  This subdivision shall expire one month 
  8.9   after repayment of the loan made under section 4A.12, 
  8.10  subdivision 2. 
  8.11     Sec. 11.  Minnesota Statutes 2000, section 297A.71, is 
  8.12  amended by adding a subdivision to read: 
  8.13     Subd. 23.  [CONSTRUCTION MATERIALS; BASEBALL 
  8.14  PARK.] Materials, supplies, or equipment used or consumed in the 
  8.15  construction, equipment, or improvement of the baseball park 
  8.16  constructed under sections 4A.11 to 4A.16, are exempt. 
  8.17     Sec. 12.  [REFERENCE TO EFFECTIVE DATE.] 
  8.18     This act is effective as provided in Minnesota Statutes, 
  8.19  section 4A.16.