1.1                          A bill for an act 
  1.2             relating to sports stadiums; providing for a process 
  1.3             to build stadiums for the use of the Minnesota Twins 
  1.4             and the Minnesota Vikings; establishing the Minnesota 
  1.5             Stadium Authority; authorizing revenue bonds; 
  1.6             authorizing certain taxes and revenues; appropriating 
  1.7             money; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 473; repealing Minnesota Statutes 
  1.9             2002, sections 473I.01; 473I.02; 473I.03; 473I.04; 
  1.10            473I.05; 473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 
  1.11            473I.11; 473I.12; 473I.13. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [473.75] [PURPOSE.] 
  1.14     Subdivision 1.  [PROCESS FOR NEW STADIUMS.] The purpose of 
  1.15  this act is to provide a process to result in the location, 
  1.16  construction, financing, and long-term use of two new stadiums 
  1.17  primarily for the use of the Minnesota Twins and the Minnesota 
  1.18  Vikings. 
  1.19     Subd. 2.  [LOCATION.] (a) The stadiums must be located in 
  1.20  the metropolitan area as defined in section 473.121, subdivision 
  1.21  2. 
  1.22     (b) Both stadiums may, but need not be, located in the same 
  1.23  city or county. 
  1.24     (c) A city and its county may cooperate to host one or both 
  1.25  stadiums under a joint powers agreement under section 471.59 or 
  1.26  as otherwise provided by law. 
  1.27     Subd. 3.  [MINNESOTA STADIUM AUTHORITY.] (a) To achieve the 
  1.28  purposes of this act, the Minnesota Stadium Authority is 
  2.1   established to independently choose sites for the two stadiums 
  2.2   from proposals submitted by the franchise owners and their 
  2.3   proposed host communities.  The authority may consider or 
  2.4   propose other arrangements for sites and terms if the authority 
  2.5   is not satisfied with proposals submitted by the franchise 
  2.6   owners and their proposed host cities.  The authority's 
  2.7   determination of sites for the two stadiums is final.  The 
  2.8   authority must set an ample time frame for site selection, 
  2.9   negotiations, and construction of the two stadiums.  The 
  2.10  authority must have title to all land and air rights needed for 
  2.11  construction and operation of the stadium facilities.  The 
  2.12  authority may enter into contracts for and take all actions 
  2.13  necessary or desirable to site, design, construct, furnish, 
  2.14  equip, and provide for the operation, maintenance, and 
  2.15  improvement of stadium facilities and anything incident to their 
  2.16  enumerated potential actions.  On completion of the construction 
  2.17  of the second stadium, the authority must recommend to the 
  2.18  legislature and the governor, a reconstituted authority or 
  2.19  authorities to oversee the ongoing maintenance and operation and 
  2.20  improvements of the stadiums to ensure that those public 
  2.21  entities that provide substantial financial support receive 
  2.22  appropriate representation.  The authority must also recommend 
  2.23  to the legislature and the governor a proposed disposition of 
  2.24  the Metrodome facility and of the Metropolitan Sports Facilities 
  2.25  Commission and of its financial reserves, if any. 
  2.26     (b) The authority must consider and make recommendations 
  2.27  with regard to alternative proposals for the continuation of 
  2.28  professional baseball and football in Minnesota.  Such proposals 
  2.29  may include, but are not limited to, full private financing of 
  2.30  stadium facilities and community ownership of professional 
  2.31  sports franchises. 
  2.32     Sec. 2.  [473.751] [MINNESOTA STADIUM AUTHORITY.] 
  2.33     Subdivision 1.  [COMPOSITION.] (a) The Minnesota Stadium 
  2.34  Authority consists of: 
  2.35     (1) six members, appointed by the governor; 
  2.36     (2) one member appointed by and serving at the pleasure of 
  3.1   each of the following:  the speaker of the house of 
  3.2   representatives; the majority leader of the senate; and the 
  3.3   minority leaders of the house of representatives and the senate; 
  3.4   and 
  3.5      (3) a chair appointed by the governor. 
  3.6      (b) All members appointed under paragraph (a), clauses (1) 
  3.7   and (3), including the chair, serve at the pleasure of the 
  3.8   governor. 
  3.9      Subd. 2.  [CHAIR.] The chair shall preside at all meetings 
  3.10  of the commission, if present, and shall perform all other 
  3.11  assigned duties and functions.  The commission may appoint from 
  3.12  among its members a vice-chair to act for the chair during the 
  3.13  temporary absence or disability of the chair. 
  3.14     Sec. 3.  [473.752] [POWERS OF AUTHORITY.] 
  3.15     Subdivision 1.  [GENERAL.] The authority has all powers 
  3.16  necessary or convenient to discharge the duties imposed by law, 
  3.17  including but not limited to those specified in this section.  
  3.18  Except to the extent otherwise explicitly provided in sections 
  3.19  473.75 to 473.758, the authority is a metropolitan agency and is 
  3.20  governed by the laws applicable to metropolitan agencies.  The 
  3.21  authority is not a state agency. 
  3.22     Subd. 2.  [ACTIONS.] The authority may sue and be sued, and 
  3.23  is a public body within the meaning of chapter 562. 
  3.24     Subd. 3.  [ACQUISITION OF PROPERTY.] The authority may 
  3.25  acquire by lease, purchase, monetary or land contribution, or 
  3.26  devise all necessary right, title, and interest in and to real 
  3.27  or personal property deemed necessary to the purposes 
  3.28  contemplated by this act. 
  3.29     Subd. 4.  [EXEMPTION OF PROPERTY.] Any real or personal 
  3.30  property acquired, owned, leased, controlled, used, or occupied 
  3.31  by the authority for any of the purposes of this act is declared 
  3.32  to be acquired, owned, leased, controlled, used, and occupied 
  3.33  for public, governmental, and municipal purposes, and is exempt 
  3.34  from ad valorem taxation by the state or any political 
  3.35  subdivision of the state.  But the properties are subject to 
  3.36  special assessments levied by a political subdivision for a 
  4.1   local improvement in amounts proportionate to and not exceeding 
  4.2   the special benefit received by the properties from the 
  4.3   improvement.  No possible use of any of the properties in any 
  4.4   manner different from their use under this act at the time may 
  4.5   be considered in determining the special benefit received by the 
  4.6   properties.  All assessments are subject to final confirmation 
  4.7   by the Metropolitan Council, whose determination of the benefits 
  4.8   is conclusive upon the political subdivision levying the 
  4.9   assessment.  Notwithstanding section 272.01, subdivision 2, or 
  4.10  273.19, real or personal property leased by the authority to 
  4.11  another person for uses related to the purposes of this act, 
  4.12  including the operation of the two stadium facilities, is exempt 
  4.13  from taxation regardless of the length of the lease.  This 
  4.14  subdivision, insofar as it requires exemption or special 
  4.15  treatment, does not apply to any real property that is leased by 
  4.16  the authority for residential, business, or commercial 
  4.17  development or other purposes different from those contemplated 
  4.18  in this act. 
  4.19     Subd. 5.  [FACILITY OPERATION.] The authority may equip, 
  4.20  improve, operate, manage, maintain, and control the sports 
  4.21  facilities constructed, remodeled, or acquired under this act. 
  4.22     Subd. 6.  [DISPOSITION OF PROPERTY.] The authority may 
  4.23  sell, lease, or otherwise dispose of any real or personal 
  4.24  property acquired by it which is no longer required for 
  4.25  accomplishment of its purposes.  The property must be sold in 
  4.26  accordance with the procedures provided by section 469.065, 
  4.27  insofar as practical and consistent with this act. 
  4.28     Subd. 7.  [EMPLOYEES; CONTRACTS FOR SERVICES.] The 
  4.29  authority may employ persons and contract for services necessary 
  4.30  to carry out its functions.  The authority may employ on such 
  4.31  terms as it deems advisable persons or firms to provide traffic 
  4.32  officers to direct traffic on property under the control of the 
  4.33  authority and on the city streets in the general area of the 
  4.34  property controlled by the authority.  The traffic officers are 
  4.35  not peace officers and do not have authority to make arrests for 
  4.36  violations of traffic rules. 
  5.1      Subd. 8.  [GIFTS AND GRANTS.] The authority may accept 
  5.2   monetary contributions, property, or services, may apply for and 
  5.3   accept grants or loans of money or other property from the 
  5.4   United States, the state, any subdivision of the state, or any 
  5.5   person for any of its purposes, may enter into any agreement 
  5.6   required in connection therewith, and may hold, use, and dispose 
  5.7   of such money, property, or services according to the terms of 
  5.8   the monetary contributions, grant, loan, or agreement.  In 
  5.9   evaluating proposed monetary contributions, grants, loans, and 
  5.10  agreements required in connection therewith, the authority shall 
  5.11  examine the possible short-range and long-range impact on 
  5.12  authority revenues and authority operating expenditures. 
  5.13     Subd. 9.  [RESEARCH.] The authority may conduct research 
  5.14  studies and programs, collect and analyze data, prepare reports, 
  5.15  maps, charts, and tables, and conduct all necessary hearings and 
  5.16  investigations in connection with its functions. 
  5.17     Subd. 10.  [USE AGREEMENTS.] The authority may lease, 
  5.18  license, or enter into agreements and may fix, alter, charge, 
  5.19  and collect rentals, fees, and charges to all persons for the 
  5.20  use, occupation, and availability of part or all of any 
  5.21  premises, property, or facilities under its ownership, 
  5.22  operation, or control for purposes that will provide athletic, 
  5.23  educational, cultural, commercial or other entertainment, 
  5.24  instruction, or activity for the citizens of the metropolitan 
  5.25  area and visitors.  Any such use agreement may provide that the 
  5.26  other contracting party has exclusive use of the premises at the 
  5.27  times agreed upon. 
  5.28     Subd. 11.  [INSURANCE.] The authority may require any 
  5.29  employee to obtain and file with it an individual bond or 
  5.30  fidelity insurance policy.  It may procure insurance in the 
  5.31  amounts it considers necessary against liability of the 
  5.32  authority or its officers and employees for personal injury or 
  5.33  death and property damage or destruction, with the force and 
  5.34  effect stated in chapter 466, and against risks of damage to or 
  5.35  destruction of any of its facilities, equipment, or other 
  5.36  property. 
  6.1      Subd. 12.  [CREATING A CONDOMINIUM.] The authority may, by 
  6.2   itself or together with any other entity, as to real or personal 
  6.3   property comprising or appurtenant or ancillary to the sports 
  6.4   facilities operated under this act or other law, act as a 
  6.5   declarant and establish a condominium or leasehold condominium 
  6.6   under chapter 515A, or a common interest community or leasehold 
  6.7   common interest community under chapter 515B, and may grant, 
  6.8   establish, create, or join in other or related easements, 
  6.9   agreements and similar benefits and burdens that the authority 
  6.10  may consider necessary or appropriate, and exercise any and all 
  6.11  rights and privileges and assume obligations under them as a 
  6.12  declarant, unit owner or otherwise, insofar as practical and 
  6.13  consistent with this act.  The authority may be a member of an 
  6.14  association and the chair, any commissioners and any officers 
  6.15  and employees of the authority may serve on the board of an 
  6.16  association under chapter 515A or 515B or other law. 
  6.17     Subd. 13.  [EXEMPTION FROM COUNCIL REVIEW.] The acquisition 
  6.18  and betterment of sports facilities by the authority must be 
  6.19  conducted pursuant to this act and must not be affected by the 
  6.20  provisions of sections 473.165 and 473.173. 
  6.21     Sec. 4.  [473.753] [CRITERIA AND CONDITIONS.] 
  6.22     Subdivision 1.  [BINDING AND ENFORCEABLE.] In setting 
  6.23  parameters and making decisions necessary to complete the 
  6.24  stadium process, the authority must follow and enforce the 
  6.25  criteria and conditions in subdivisions 2 to 19. 
  6.26     Subd. 2.  [TOTAL PUBLIC INVESTMENT TOWARD PROJECT 
  6.27  COSTS.] The authority must set a total public investment maximum 
  6.28  toward project costs for each stadium, including the host site's 
  6.29  government's revenue contributions. 
  6.30     Subd. 3.  [TEAM AND FAN CONTRIBUTIONS.] (a) The authority 
  6.31  must set the amount of anticipated contributions from each team 
  6.32  towards the total cost for its stadium.  Team contributions may 
  6.33  include, but are not limited to, up-front cash contributions, 
  6.34  guaranteed annual payments, and assignments of naming rights and 
  6.35  permanent seat licenses.  Each team's contribution must be no 
  6.36  less than one third of its team's stadium's project costs.  The 
  7.1   authority may attempt to structure each team's investment to 
  7.2   maximize benefits both to the public and to the teams.  In 
  7.3   addition to any other team contribution, each team must assume 
  7.4   and pay when due all cost overruns for its stadium.  
  7.5      (b) The authority may negotiate to receive, for 
  7.6   pass-through to the Metropolitan Council, fan contributions 
  7.7   imposed, assessed, and collected by the authority and the host 
  7.8   communities for deposit in the stadiums' debt service account.  
  7.9   Fan contributions may include ticket taxes, parking surcharges, 
  7.10  personal seat licenses, private placement bonds, sports cable 
  7.11  television surcharges, commemorative stadium stock or bricks, 
  7.12  team license plates, and the like. 
  7.13     (c) The team and fan contributions must be deposited in the 
  7.14  state treasury and are appropriated to the Metropolitan Council 
  7.15  for payment of principal and interest on the revenue bonds 
  7.16  issued under this act and chapter 475. 
  7.17     Subd. 4.  [RESERVE FOR CAPITAL IMPROVEMENTS.] The authority 
  7.18  may require that a reserve fund for capital improvements to the 
  7.19  stadium be set up and may require the teams and the host 
  7.20  communities' governments to contribute to the fund in a manner 
  7.21  and on the terms the authority determines. 
  7.22     Subd. 5.  [LEASE OR USE AGREEMENTS.] The authority must 
  7.23  negotiate long-term lease or use agreements with each team for 
  7.24  its use of one of the stadiums.  Each team must schedule and 
  7.25  play all regular season and postseason home games at its 
  7.26  stadium.  Preseason games may also be scheduled and played at 
  7.27  the stadium.  The lease or use agreements must be for a term of 
  7.28  the lesser of 30 years or until the last of the bonds issued to 
  7.29  fund the stadium are retired or defeased.  The lease must 
  7.30  include terms for default, termination, and breach of the 
  7.31  facility lease.  The leases must require specific performance 
  7.32  and must not include escape clauses or buyout provisions. 
  7.33     Subd. 6.  [GUARANTEE OF PAYMENT OF ALL OBLIGATIONS.] The 
  7.34  authority must ensure that a guarantee of payment of each 
  7.35  obligation due under the lease or use agreement is in place at 
  7.36  the time of execution of the obligation in a form satisfactory 
  8.1   to the authority.  The guarantee may be in the form of a letter 
  8.2   of credit, personal guarantees, or other surety as determined by 
  8.3   the authority.  
  8.4      Subd. 7.  [TITLE TO ALL LAND AND AIR RIGHTS.] The authority 
  8.5   must have title to all land and air rights needed for 
  8.6   construction and operation of the facilities. 
  8.7      Subd. 8.  [ENFORCEABLE FINANCIAL COMMITMENTS.] The 
  8.8   Minnesota Stadium Authority must determine before construction 
  8.9   begins that all public and private funding sources for 
  8.10  construction and operation of each stadium are officially 
  8.11  committed in writing and enforceable.  The committed funds must 
  8.12  be adequate to site, design, construct, furnish, equip, and 
  8.13  service the facilities' debt, as well as to pay for the ongoing 
  8.14  operation and maintenance of the respective baseball and 
  8.15  football facilities. 
  8.16     Subd. 9.  [ENVIRONMENTAL REQUIREMENTS.] The authority must 
  8.17  ensure that environmental requirements imposed by appropriate 
  8.18  regulatory agencies for each stadium, site, and structure are 
  8.19  complied with.  
  8.20     Subd. 10.  [PUBLIC INFRASTRUCTURE.] In making 
  8.21  determinations about the location of the stadiums, the authority 
  8.22  must determine and consider the estimated cost to the public in 
  8.23  constructing necessary public infrastructure for each location 
  8.24  under consideration.  The authority must ensure that all 
  8.25  necessary and reasonably appropriate public infrastructure is 
  8.26  financed and constructed by the time of completion of the 
  8.27  respective baseball and football facilities.  
  8.28     Subd. 11.  [PRICE, COMPLETION DATE, PERFORMANCE, PAYMENT 
  8.29  BONDS.] Before construction begins, the authority must have 
  8.30  executed contracts in hand certifying construction price and 
  8.31  completion date that include performance and payment bonds that 
  8.32  cover any costs over the certified price for the facility 
  8.33  contracted for. 
  8.34     Subd. 12.  [PUBLIC SHARE OF VALUE ADDED BY STADIUM UPON 
  8.35  SALE.] (a) The lease or use agreements must provide that if the 
  8.36  franchise is sold during the term of the agreement, then any 
  9.1   portion of the sale price that is attributable to enactment of 
  9.2   this act or to public money spent to develop the stadium used by 
  9.3   the franchise's team must be returned to the public for deposit 
  9.4   in a reserve fund for improvements to the stadium. 
  9.5      (b) The lease or use agreement must provide that the 
  9.6   franchise cannot be sold during the term of the agreement 
  9.7   without approval of the authority unless: 
  9.8      (1) the franchise owner agrees with the authority on the 
  9.9   portion of the sales price that will be returned to the public 
  9.10  under paragraph (a); or 
  9.11     (2) the franchise owner agrees that the amount that will be 
  9.12  returned to the public under paragraph (a) will be determined by 
  9.13  a neutral party, selected by a method specified in the lease or 
  9.14  use agreement. 
  9.15     Subd. 13.  [ACCESS TO BOOKS AND RECORDS.] The authority 
  9.16  must seek a provision in the lease or use agreements that 
  9.17  provides the authority access to those financial books and 
  9.18  records of the franchise that the authority deems necessary to 
  9.19  carry out its duties under this act and to enforce the terms of 
  9.20  any lease or use agreements entered into under this section. Any 
  9.21  financial information obtained by the authority under this 
  9.22  subdivision is nonpublic data under section 13.02, subdivision 9.
  9.23     Subd. 14.  [FINANCE COMMISSIONER APPROVAL.] The authority 
  9.24  must transmit the financing documents and lease or use agreement 
  9.25  to the commissioner of finance and the commissioner of finance 
  9.26  must approve the financing document and the lease or use 
  9.27  agreements before the issuance of any bonds to finance the 
  9.28  construction of the stadiums. 
  9.29     Subd. 15.  [USE FOR AMATEUR SPORTS.] The authority must 
  9.30  ensure that the lease or use agreements for the stadiums provide 
  9.31  for a reasonable amount of use for amateur sports. 
  9.32     Subd. 16.  [AFFORDABLE ACCESS.] The authority must ensure 
  9.33  that the lease or use agreements provide for affordable access 
  9.34  to the respective professional sporting events held in these 
  9.35  facilities. 
  9.36     Subd. 17.  [ATTENDANCE INCENTIVES.] The authority may 
 10.1   negotiate a provision in the lease or use agreements that 
 10.2   provide incentives for the teams to increase attendance at their 
 10.3   sporting events. 
 10.4      Subd. 18.  [SELLOUT SPONSOR IF POSSIBLE.] The authority 
 10.5   must make reasonable efforts to seek a sponsoring organization 
 10.6   to purchase all football game tickets not sold shortly before a 
 10.7   home game.  
 10.8      Subd. 19.  [USE OF BOND PROCEEDS.] The authority must 
 10.9   ensure and confirm to the Metropolitan Council that all bond 
 10.10  proceeds from bonds authorized by this act must be used to site, 
 10.11  design, construct, or furnish the facilities.  
 10.12     Subd. 20.  [NO STRIKES.] The authority must negotiate an 
 10.13  agreement to prevent strikes that would halt, delay, or impede 
 10.14  construction of the respective baseball and football facilities. 
 10.15     Subd. 21.  [SITE SELECTION COSTS.] To cover the authority's 
 10.16  startup and site selection costs, the authority may assess each 
 10.17  professional team up to $400,000.  The Metropolitan Sports 
 10.18  Facilities Commission may provide staff and other assistance to 
 10.19  the authority. 
 10.20     Sec. 5.  [473.754] [LOCAL TAXES.] 
 10.21     A local government that is a host community to a stadium 
 10.22  may impose a ticket tax; a tax on restaurants, places of 
 10.23  amusement, alcoholic beverages, or prepared food; or a tax on 
 10.24  lodging; or any of them; a tax on sports memorabilia sold within 
 10.25  the stadium facilities; or may add to a general sales and use 
 10.26  tax on goods and services within its jurisdiction 
 10.27  notwithstanding section 477A.016 if approved by the authority 
 10.28  and subject to subsequent enactment of a law complying with 
 10.29  section 297A.99; all to provide local government revenues to 
 10.30  finance a stadium project under this act.  
 10.31     Sec. 6.  [473.755] [LOCAL TAX INCREMENT FINANCING; 
 10.32  DEVELOPMENT RIGHTS.] 
 10.33     A local unit of government that is a host community for a 
 10.34  stadium may use local tax increment financing or sale of 
 10.35  development rights as otherwise provided by law to help complete 
 10.36  the stadium project. 
 11.1      Sec. 7.  [473.756] [STADIUM TAX INCREMENT COMPUTATION.] 
 11.2      (a) The authority may negotiate with the teams for the 
 11.3   capture of stadium tax increments as provided in this section.  
 11.4      (b) For any year during which major league baseball or 
 11.5   National Football League games are played in one or the other 
 11.6   new stadium, the commissioner of revenue may, by March 1 of each 
 11.7   year, certify the amount of stadium taxes collected in the 
 11.8   previous calendar year and the amount by which those taxes are 
 11.9   in excess of a baseline tax amount.  A negotiated amount, no 
 11.10  greater than the amount of stadium taxes that are certified by 
 11.11  the commissioner as being in excess of the baseline tax amount 
 11.12  must be deposited in a debt service account in the state 
 11.13  treasury and is appropriated each year to the Metropolitan 
 11.14  Council to pay principal and interest on revenue bonds issued 
 11.15  for each of the new stadiums.  Any stadium taxes in excess of 
 11.16  the negotiated amount must be deposited in the state's general 
 11.17  fund. 
 11.18     (c) For baseball, the stadium taxes are the taxes collected 
 11.19  for events at the new baseball stadium.  Each year baseball 
 11.20  stadium taxes equal the sum of (1) the withholding taxes due in 
 11.21  a calendar year pursuant to section 290.92 by major league 
 11.22  baseball teams, and (2) the sales tax on ticket sales for 
 11.23  admission to baseball-related events at the baseball stadium and 
 11.24  sales tax remitted by vendors and concessionaires for sales at 
 11.25  professional baseball-related events occurring at the baseball 
 11.26  stadium in a calendar year.  For baseball, the baseline tax 
 11.27  amount is the average annual amount of stadium taxes as 
 11.28  determined in this paragraph for professional baseball games or 
 11.29  related events held in the Metrodome in the three calendar years 
 11.30  before the opening of the new stadium.  The sales tax for 
 11.31  baseball-related events occurring at the baseball stadium must 
 11.32  be reported in the manner prescribed by the commissioner of 
 11.33  revenue. 
 11.34     (d) For football, the stadium taxes are the taxes collected 
 11.35  at the designated football stadium district.  Each year, 
 11.36  football stadium taxes equal the sum of (1) the withholding 
 12.1   taxes due in a calendar year pursuant to section 290.92 by 
 12.2   National Football League teams, and (2) the sales tax on ticket 
 12.3   sales for admission to professional football-related events at 
 12.4   the football stadium and sales tax remitted by vendors and 
 12.5   concessionaires for sales at professional football-related 
 12.6   events occurring at the football stadium in a calendar year.  
 12.7   For football, the baseline tax amount is the average amount of 
 12.8   stadium taxes as determined in this paragraph for professional 
 12.9   football games or related events held in the Metrodome in the 
 12.10  three calendar-year period before opening of the new stadium.  
 12.11  The sales tax for football-related events occurring at the 
 12.12  football stadium must be reported in the manner prescribed by 
 12.13  the commissioner of revenue. 
 12.14     (e) In the event that the excess stadium tax revenue is 
 12.15  less than the negotiated amount, the team shall pay the amount 
 12.16  of the deficiency. 
 12.17     Sec. 8.  [473.757] [SECURITY.] 
 12.18     Subdivision 1.  [BONDS.] The Metropolitan Council, on 
 12.19  behalf of the Minnesota Stadium Authority, may by resolution 
 12.20  authorize the sale and issuance of its bonds for any or all of 
 12.21  the following purposes: 
 12.22     (1) to provide funds to predesign, design, construct, 
 12.23  furnish, equip, and otherwise better the sports facilities owned 
 12.24  or to be owned by the authority pursuant to this act; 
 12.25     (2) to refund bonds issued hereunder; and 
 12.26     (3) to fund judgments entered by any court against the 
 12.27  authority or against the council in matters relating to the 
 12.28  authority's functions related to the sports facilities. 
 12.29     Subd. 2.  [PROCEDURE.] The bonds shall be sold, issued, and 
 12.30  secured in the manner provided in chapter 475, for bonds payable 
 12.31  solely from revenues, except as otherwise provided in this act, 
 12.32  and the council shall have the same powers and duties as a 
 12.33  municipality and its governing body in issuing bonds under that 
 12.34  chapter.  The bonds may be sold at any price and at public or 
 12.35  private sale as determined by the council.  They shall be 
 12.36  payable solely from tax and other revenues referred to in this 
 13.1   act.  The bonds shall not be a general obligation or debt of the 
 13.2   council or of the authority, and shall not be included in the 
 13.3   net debt of any city, county, or other subdivision of the state 
 13.4   for the purpose of any net debt limitation.  No election shall 
 13.5   be required.  
 13.6      Subd. 3.  [LIMITATIONS.] The principal amount of the bonds 
 13.7   issued pursuant to subdivision 1, clause (1), shall not exceed 
 13.8   the amounts hereinafter authorized.  If the authority's proposal 
 13.9   and the construction contracts referred to in this act provide 
 13.10  for the construction of two major league sports stadiums as 
 13.11  provided in this act, the principal amount of bonds issued 
 13.12  pursuant to subdivision 1, clause (1), shall be limited to 
 13.13  $........  The council shall issue its bonds and construction of 
 13.14  sports facilities may commence when the council has made the 
 13.15  determinations in this subdivision.  The bonds may be issued 
 13.16  separately for each stadium or in other segments as necessary or 
 13.17  desirable to accomplish the projects.  Bonds may be issued for 
 13.18  only one stadium facility after one stadium project is agreed to 
 13.19  by the parties involved so long as the amount of bonds issued 
 13.20  does not exceed the cost of the project for which they are 
 13.21  issued.  Bonds for the second stadium project may be issued when 
 13.22  and if agreement is reached as to the second stadium project.  
 13.23     (a) The authority has executed long-term lease or use 
 13.24  agreements with each team for its use of one of the stadiums.  
 13.25  Each team must schedule and play all regular season and 
 13.26  postseason home games at its stadium.  Preseason games may also 
 13.27  be scheduled and played at the stadium.  The lease or use 
 13.28  agreements must be for a term of the lesser of 30 years or until 
 13.29  the last of the bonds issued to fund the stadium are retired or 
 13.30  defeased.  The lease must include terms for default, 
 13.31  termination, and breach of the facility lease.  The leases must 
 13.32  require specific performance and must not include escape clauses 
 13.33  or buyout provisions.  
 13.34     (b) The authority has executed agreements with professional 
 13.35  baseball and football major leagues which guarantee the 
 13.36  continuance of franchises in the metropolitan area for the 
 14.1   period of the agreements referred to in paragraph (a).  
 14.2      (c) The proceeds of bonds provided for in this subdivision 
 14.3   will be sufficient, together with other capital funds that may 
 14.4   be available to the authority for expenditures on the sports 
 14.5   facilities, to carry out the projects for which the proceeds 
 14.6   were intended as proposed by the authority, including the 
 14.7   appropriate professional fees and charges but excluding, except 
 14.8   as otherwise provided in this subdivision, the acquisition, 
 14.9   clearance, relocation, and legal costs referred to in paragraphs 
 14.10  (d) and (e).  
 14.11     (d) The authority has acquired, without cost to the 
 14.12  authority or the council except as provided in this subdivision, 
 14.13  title to all real property including all easements and other 
 14.14  appurtenances needed for the construction and operation of the 
 14.15  stadium facilities or has received a grant of funds or has 
 14.16  entered into agreements sufficient in the judgment of the 
 14.17  council to assure the receipt of funds, at the time and in the 
 14.18  amount required, to make any payment upon which the authority's 
 14.19  acquisition of title and possession of the real property is 
 14.20  conditioned.  
 14.21     (e) The authority has received a grant of funds or entered 
 14.22  into agreements sufficient in the judgment of the council to 
 14.23  assure the receipt of funds, at the time and in the amount 
 14.24  required, to pay all costs, except as provided in this 
 14.25  subdivision, of clearing the real property needed for the 
 14.26  construction and operation of all sports facilities, railroad 
 14.27  tracks and other structures, including, without limitation, all 
 14.28  relocation costs, all utility relocation costs, and all legal 
 14.29  costs.  
 14.30     (f) The authority has executed agreements to prevent 
 14.31  strikes that would halt, delay, or impede construction of the 
 14.32  respective baseball and football facilities. 
 14.33     (g) The authority has executed agreements which will 
 14.34  provide for the construction of the sports facilities for a 
 14.35  certified construction price and completion date and which 
 14.36  include performance bonds in an amount at least equal to 100 
 15.1   percent of the certified price to cover any costs which may be 
 15.2   incurred over and above the certified price, including but not 
 15.3   limited to costs incurred by the authority or loss of revenues 
 15.4   resulting from incomplete construction on the completion date.  
 15.5      (h) The anticipated revenue from the operation of the 
 15.6   sports facilities plus any additional available revenue of the 
 15.7   authority will be an amount sufficient to pay when due all debt 
 15.8   service plus all administration, operating and maintenance 
 15.9   expense.  
 15.10     (i) The validity of any bonds issued under subdivision 1, 
 15.11  clause (a), and the obligations of the council and authority 
 15.12  related to them, shall not be conditioned upon or impaired by 
 15.13  the council's determinations made pursuant to this subdivision.  
 15.14  For purposes of issuing the bonds the determinations made by the 
 15.15  council shall be deemed conclusive, and the council shall be and 
 15.16  remain obligated for the security and payment of the bonds 
 15.17  irrespective of determinations which may be erroneous, 
 15.18  inaccurate, or otherwise mistaken.  
 15.19     Subd. 4.  [SECURITY.] To the extent and in the manner 
 15.20  provided in this act, the taxes described in this act, the tax 
 15.21  and other revenues of the authority described in this act, and 
 15.22  any other revenues of the authority attributable to the sports 
 15.23  facilities, including team and local host's communities 
 15.24  contributions, shall be and remain pledged and appropriated to 
 15.25  the authority or to the Metropolitan Council, as appropriate for 
 15.26  the payment of all necessary and reasonable expenses of the 
 15.27  operation, administration, maintenance, and debt service of the 
 15.28  sports facilities until all bonds and certificates issued 
 15.29  pursuant to this section are fully paid or discharged in 
 15.30  accordance with law.  Bonds issued pursuant to this section may 
 15.31  be secured by a bond resolution, or by a trust indenture entered 
 15.32  into by the council with a corporate trustee within or outside 
 15.33  the state, which shall define the tax, team and fan 
 15.34  contributions, and other sports facility revenues pledged for 
 15.35  the payment and security of the bonds.  The pledge shall be a 
 15.36  valid charge on the tax and other revenues referred to in this 
 16.1   act from the date when bonds are first issued or secured under 
 16.2   the resolution or indenture and shall secure the payment of 
 16.3   principal and interest and redemption premiums when due and the 
 16.4   maintenance at all times of a reserve securing such payments.  
 16.5   No mortgage of or security interest in any tangible real or 
 16.6   personal property shall be granted to the bondholders or the 
 16.7   trustee, but they shall have a valid security interest in all 
 16.8   tax and other revenues received and accounts receivable by the 
 16.9   authority or council hereunder, as against the claims of all 
 16.10  other persons in tort, contract, or otherwise, irrespective of 
 16.11  whether such parties have notice thereof, and without possession 
 16.12  or filing as provided in the Uniform Commercial Code or any 
 16.13  other law.  In the bond resolution or trust indenture the 
 16.14  council may make such covenants, which shall be binding upon the 
 16.15  authority, as are determined to be usual and reasonably 
 16.16  necessary for the protection of the bondholders.  No pledge, 
 16.17  mortgage, covenant, or agreement securing bonds may be impaired, 
 16.18  revoked, or amended by law or by action of the council, 
 16.19  authority, site city or county, except in accordance with the 
 16.20  terms of the resolution or indenture under which the bonds are 
 16.21  issued, until the obligations of the council thereunder are 
 16.22  fully discharged. 
 16.23     Subd. 5.  [CONDITIONAL ARBITRAGED ENDOWMENT ACCOUNT.] (a) 
 16.24  If, as a part of a negotiated agreement with a team and its host 
 16.25  local communities, the option to use an arbitrage model to raise 
 16.26  revenue is agreed to under this act, the authority, with the 
 16.27  approval of the commissioner of finance may issue up to $....... 
 16.28  of revenue bonds for this purpose.  The proceeds of the bonds 
 16.29  must be deposited in an endowment account to be invested as 
 16.30  provided in paragraphs (b) and (c) after the amount necessary to 
 16.31  pay when due the debt service on the bonds issued under this 
 16.32  section is deposited in a debt service account.  The balance on 
 16.33  hand in the endowment account after all the bonds issued under 
 16.34  this section have been retired or defeased may be used for 
 16.35  retiring of the debt incurred for stadium purposes under this 
 16.36  act, for stadium improvements, or for other stadium-related 
 17.1   purposes as agreed to by the parties.  Other revenue from gifts 
 17.2   or grants for those purposes, or as otherwise authorized by law, 
 17.3   may be deposited in the endowment fund for investment and 
 17.4   disposition as provided in this section. 
 17.5      (b) The State Board of Investment shall contract with the 
 17.6   investment advisors specified by the team to invest money in the 
 17.7   endowment account.  The account must be invested in authorized 
 17.8   investments under section 11A.24, except (1) corporate 
 17.9   obligations described in section 11A.24, subdivision 3, 
 17.10  paragraph (b), and (2) investments described in section 11A.24, 
 17.11  subdivision 6, paragraph (a), clauses (1) to (4). 
 17.12     (c) The commissioner of finance shall review the investment 
 17.13  performance of the account at the end of the second year after 
 17.14  each stadium begins operations and every four years thereafter.  
 17.15  The commissioner shall require the authority as owner of the 
 17.16  stadium to impose a surcharge on admissions to events at the 
 17.17  stadium in one-half of one percent increments, not to exceed 
 17.18  five percent, in an amount sufficient to equal the money that 
 17.19  would be in the fund, if an 8.5 percent annual rate of return 
 17.20  had been earned.  Notwithstanding the preceding sentence, the 
 17.21  commissioner shall set the required rate of return for the first 
 17.22  four years after the account is established.  If the rate of 
 17.23  return on the fund during the period exceeded 8.5 percent, the 
 17.24  commissioner may use the excess to retire or defease the 
 17.25  Metropolitan Council's bonds for the stadium issued as 
 17.26  authorized in this act. 
 17.27     Subd. 6.  [NO FULL FAITH AND CREDIT.] Any bonds or other 
 17.28  obligations issued by the council under this act are not public 
 17.29  debt of the state, and the full faith and credit and taxing 
 17.30  powers of the state are not pledged for their payment or of any 
 17.31  payments that the state agrees to make under this act. 
 17.32     Subd. 7.  [AUTHORITY NOT AFFECTED BY TAXABILITY OF 
 17.33  INTEREST.] The bonds authorized by this act may be issued 
 17.34  without regard to whether the interest to be paid on them is 
 17.35  gross income for federal tax purposes. 
 17.36     Sec. 9.  [473.758] [NEGOTIATION DEADLINE.] 
 18.1      The authority to negotiate and enter into agreements with 
 18.2   the teams and host communities under this act expires December 
 18.3   31, 2004, for baseball and December 31, 2006, for football. 
 18.4      Sec. 10.  [REPEALER.] 
 18.5      Minnesota Statutes 2002, sections 473I.01; 473I.02; 
 18.6   473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09; 
 18.7   473I.10; 473I.11; 473I.12; and 473I.13, are repealed.