Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 1917

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to metropolitan government; providing for the 
  1.3             financing, organization, and ownership of certain 
  1.4             athletic organizations; providing conditions for the 
  1.5             use of certain facilities; permitting the issuance of 
  1.6             bonds; appropriating money; proposing coding for new 
  1.7             law as Minnesota Statutes, chapter 473I. 
  1.9      Section 1.  [473I.01] [DEFINITIONS.] 
  1.10     Subdivision 1.  [TERMS.] For the purpose of sections 
  1.11  473I.01 to 473I.08, the following terms have the meanings given 
  1.12  in this section. 
  1.13     Subd. 2.  [AMATEUR SPORTS COMMISSION.] "Amateur sports 
  1.14  commission" means the Minnesota amateur sports commission, 
  1.15  established in chapter 240A. 
  1.16     Subd. 3.  [BASKETBALL AND HOCKEY ARENA.] "Basketball and 
  1.17  hockey arena" means the indoor arena building currently occupied 
  1.18  and utilized for the playing of major league basketball, hockey, 
  1.19  and other purposes, including all its improvements and other 
  1.20  appurtenances, located in the city and owned by the Minneapolis 
  1.21  community development agency. 
  1.22     Subd. 4.  [CITY.] "City" means the city of Minneapolis. 
  1.23     Subd. 5.  [COMMISSION.] "Commission" means the metropolitan 
  1.24  sports facilities commission, established in sections 473.551 to 
  1.25  473.599. 
  1.26     Subd. 6.  [COUNCIL.] "Council" means the metropolitan 
  2.1   council established in sections 473.121 to 473.249. 
  2.2      Subd. 7.  [NHL TEAM.] "NHL team" means the legal entity 
  2.3   which owns and operates a major league professional hockey team 
  2.4   sanctioned by the National Hockey League or any successor 
  2.5   organization which issues major league professional hockey 
  2.6   franchises and governs the operation of the major league 
  2.7   professional hockey league. 
  2.8      Sec. 2.  [473I.02] [LEGISLATIVE POLICY; PURPOSE.] 
  2.9      The legislature finds that: 
  2.10     (a) Obtaining and securing the location of professional 
  2.11  major league athletic teams in the state and within the 
  2.12  metropolitan area and the enhancement of opportunities for the 
  2.13  promotion of amateur sports activities in the state and within 
  2.14  the metropolitan area has and will provide significant economic 
  2.15  development, attract and secure additional employment, maintain 
  2.16  and enhance the tax base upon which the state and its political 
  2.17  subdivisions depend for the financing of other governmental 
  2.18  functions, and provide important social, entertainment, 
  2.19  recreational, and tourism opportunities for the state and its 
  2.20  citizens. 
  2.21     (b) The council and the commission, in providing for the 
  2.22  construction and ownership of the Hubert H. Humphrey Metrodome, 
  2.23  have and will serve and achieve the foregoing public purposes by 
  2.24  promoting major league baseball and football games in the state 
  2.25  and within the metropolitan area. 
  2.26     (c) The city and the Minneapolis community development 
  2.27  agency in the purchase and ownership of the basketball and 
  2.28  hockey arena, have and will serve and achieve the foregoing 
  2.29  purposes by securing, permitting, and providing for the playing 
  2.30  of professional major league basketball in the state and within 
  2.31  the metropolitan area and, as supported by appropriations, 
  2.32  provide for increased opportunities for amateur sports 
  2.33  activities in the state and within the metropolitan area. 
  2.34     (d) The attraction of a NHL team to the state and within 
  2.35  the metropolitan area, by reasonable methods that the commission 
  2.36  may devise to further secure and promote these public purposes, 
  3.1   will locate in the state all of the nation's four major league 
  3.2   professional sports, will further serve and achieve the 
  3.3   foregoing purposes, and will increase and enhance the value and 
  3.4   public benefits afforded to the state and its citizens by the 
  3.5   public's investment in the basketball and hockey arena and by 
  3.6   the public's assurance of a long-term commitment by a NHL team 
  3.7   to remain in the state. 
  3.8      (e) The citizens of the state both within and outside of 
  3.9   the metropolitan area need additional facilities which will 
  3.10  provide increased opportunities for athletic ice sports and 
  3.11  activities and serve as a community resource by permitting and 
  3.12  promoting the conduct of other year-round social, recreational, 
  3.13  business, and entertainment activities. 
  3.14     (f) The expansion of the ice athletic facilities of the 
  3.15  University of Minnesota will provide increased opportunities for 
  3.16  its students and will supplement the ability of the state to 
  3.17  attract and assure the presence of a NHL team in the state and 
  3.18  within the metropolitan area and serve the foregoing public 
  3.19  purposes. 
  3.20     It is therefore necessary for the public health, safety, 
  3.21  and general welfare to aid in the financing of the construction 
  3.22  and renovation of public ice athletic facilities and arenas 
  3.23  throughout the state including the expansion of public ice 
  3.24  athletic facilities of the University of Minnesota and to 
  3.25  attract and secure the long-term commitment of a NHL team to the 
  3.26  basketball and hockey arena, by authorizing financing and other 
  3.27  arrangements as necessary to accomplish that purpose. 
  3.28     Sec. 3.  [473I.03] [COMMISSION AND COUNCIL POWERS.] 
  3.29     Subdivision 1.  [COMMISSION.] In addition to the commission 
  3.30  powers provided under sections 473.551 to 473.599, the 
  3.31  commission may enter into agreements or provide for financial or 
  3.32  economic incentives or make other arrangements sufficient to 
  3.33  attract a NHL team to the metropolitan area and to assure a 
  3.34  long-term commitment of a NHL team to play its home games at the 
  3.35  basketball and hockey arena.  In consideration of that 
  3.36  commitment by a NHL team and other commitments and assurances as 
  4.1   may be necessary or reasonable by the commission to protect the 
  4.2   public interest, the commission, by way of illustration and not 
  4.3   of limitation of the foregoing powers may: 
  4.4      (a) condition its financial or economic incentives or 
  4.5   arrangements upon obtaining an option to purchase the NHL team, 
  4.6   or obtaining covenants assuring a long-term commitment by way of 
  4.7   specific performance or other equitable remedies, or obtaining a 
  4.8   security interest in the NHL team or in any of its assets, 
  4.9   assuring the payment of liquidated damages upon the breach of a 
  4.10  NHL's team's commitments, or other contractual rights or 
  4.11  remedies; 
  4.12     (b) make grants or loans, on terms as the commission 
  4.13  determines; 
  4.14     (c) acquire an interest in a NHL team; 
  4.15     (d) acquire an interest in the basketball and hockey arena 
  4.16  or pay all or a part of the costs of operation or improvement of 
  4.17  the basketball and hockey arena or pay all or a part of the 
  4.18  taxes on it; 
  4.19     (e) take other actions as necessary or convenient to 
  4.20  attract a NHL team to the metropolitan area and assure the 
  4.21  long-term commitment by the NHL team; 
  4.22     (f) be a limited partner in a partnership, a shareholder in 
  4.23  a corporation, a member of a limited liability company or a 
  4.24  partner in a limited liability partnership, for the purposes 
  4.25  provided in this chapter; 
  4.26     (g) sell or syndicate the commission's interest in a NHL 
  4.27  team, if any, through a private or public offering; 
  4.28     (h) form an affiliated legal entity, including but not 
  4.29  limited to a corporation, nonprofit corporation, limited or 
  4.30  general partnership, limited liability company or limited 
  4.31  liability partnership, which may exercise separately or together 
  4.32  with the commission, any part or all of the powers of the 
  4.33  commission provided in this section; and 
  4.34     (i) take all of the foregoing actions by itself or in 
  4.35  concert with the Minneapolis community development agency, which 
  4.36  for those purposes shall have the powers provided by this 
  5.1   chapter to the commission, or in concert with other appropriate 
  5.2   political subdivisions of the state to the extent they are 
  5.3   otherwise authorized by law. 
  5.4      Subd. 2.  [COUNCIL.] The council shall receive the 
  5.5   appropriations under section 473I.07, and, subject to section 
  5.6   473I.04, subdivision 3, paragraph (d), pledge those funds to the 
  5.7   payment of bonds issued by the council under section 473I.04, 
  5.8   or, to the extent not required for those payments or if bonds 
  5.9   are not issued, shall transfer the amounts to the commission for 
  5.10  the purposes provided in subdivision 1.  The council may issue 
  5.11  revenue bonds as provided in section 473I.04, and shall pay the 
  5.12  net proceeds to the commission for the purposes provided in 
  5.13  subdivision 1.  The council shall have no obligation or 
  5.14  authority to see to the use or application of the payments by 
  5.15  the commission, except as provided in section 473.595. 
  5.16     Sec. 4.  [473I.04] [COUNCIL DEBT OBLIGATIONS.] 
  5.17     Subdivision 1.  [BONDS.] The council may by resolution 
  5.18  authorize the sale and issuance of bonds for any of the 
  5.19  following purposes upon its determination that the conditions of 
  5.20  subdivision 3, paragraph (d), have been met: 
  5.21     (1) to provide funds to the commission in order that it may 
  5.22  enter into the arrangements necessary to assure a long-term 
  5.23  commitment of a NHL team; 
  5.24     (2) to refund bonds issued under this section; and 
  5.25     (3) to fund judgments entered by any court against the 
  5.26  council or commission in matters relating to the purposes of 
  5.27  this section. 
  5.28     Subd. 2.  [PROCEDURE.] The bonds may be sold, issued, and 
  5.29  secured in the manner provided in chapter 475 for bonds payable 
  5.30  from revenues, and the council shall have the same powers and 
  5.31  duties as a municipality and its governing body in issuing bonds 
  5.32  under chapter 475.  The council may pledge for the payment of 
  5.33  the bonds the revenues from the appropriation in section 
  5.34  473I.07, or revenues from arrangements and security interests 
  5.35  that may be negotiated as provided in subdivision 3, paragraph 
  5.36  (d), and the admissions tax provided in subdivision 4, or any of 
  6.1   them, as the case may be.  The bonds may be sold at any price 
  6.2   and at public or private sale as determined by the council.  
  6.3   Each bond and note shall contain a statement that its principal 
  6.4   or interest is payable solely from the appropriation, revenues, 
  6.5   or funds as are pledged for its payment.  The bonds and notes 
  6.6   shall not be an obligation or debt of the council or commission 
  6.7   and shall not be included in the net debt of the council or any 
  6.8   city, county, or other subdivision of the state for the purpose 
  6.9   of any net debt limitation.  No election shall be required.  The 
  6.10  principal amount shall not be limited except as provided in 
  6.11  subdivision 3.  Taxes and other revenues of the commission 
  6.12  attributable to the Metrodome or Met Center as provided in 
  6.13  sections 473.556, 473.581, 473.592, and 473.595, or revenues of 
  6.14  the commission attributable to the basketball and hockey arena 
  6.15  shall not be pledged or available for payments of bonds and 
  6.16  notes issued under this section, nor shall any appropriation 
  6.17  under section 473I.07, be pledged or available for bonds and 
  6.18  notes issued under section 473.581. 
  6.19     Subd. 3.  [LIMITATIONS.] (a) The principal amount of the 
  6.20  bonds issued under subdivision 1, exclusive of any original 
  6.21  issue discount, shall not exceed a total amount to be determined 
  6.22  as provided in paragraph (c).  Amounts necessary to pay the 
  6.23  costs of issuance incurred by the council, amounts reimbursed to 
  6.24  the commission for its costs and expenses, and amounts 
  6.25  attributable to any bond insurance or other credit enhancement 
  6.26  may be paid from the bond proceeds but may not increase the 
  6.27  maximum amount provided for in paragraph (c).  The bonds may be 
  6.28  issued as tax-exempt or taxable revenue bonds, in the 
  6.29  proportions that the council may determine. 
  6.30     (b) The proceeds of the bonds issued pursuant to 
  6.31  subdivision 1, paragraph (a), or the payments paid to the 
  6.32  commission under section 473I.03, subdivision 2, shall be paid 
  6.33  to the commission for the purposes of attracting and securing a 
  6.34  long-term commitment by the NHL team to play its home games at 
  6.35  the basketball and hockey arena and for the related purposes 
  6.36  referred to in this chapter.  The commission shall first apply 
  7.1   the proceeds to the reimbursement of any expenses of the 
  7.2   commission related to or arising from the purposes of this 
  7.3   chapter, whenever incurred. 
  7.4      (c) The amount of the bonds that may be sold under 
  7.5   paragraph (a) shall not exceed the amount of indebtedness which 
  7.6   may be amortized over the term of the bonds by estimated tax 
  7.7   receipts of the state attributable to the operations of the NHL 
  7.8   team, reduced by the amount of the appropriation under section 
  7.9   473I.08.  The commissioner of revenue shall make this 
  7.10  determination and certify these amounts to the council and 
  7.11  commission prior to the issuance of bonds.  If bonds are not 
  7.12  issued, then the commissioner shall estimate the amount of tax 
  7.13  receipts of the state attributable to the operations of the NHL 
  7.14  team anticipated in the next calendar year following the date of 
  7.15  enactment of this chapter, and certify this amount to the 
  7.16  legislature prior to any subsequent appropriation following the 
  7.17  appropriation in section 473I.07.  The amount of any subsequent 
  7.18  appropriation, if any be made, shall not exceed the amount so 
  7.19  certified by the commissioner. 
  7.20     (d) The council may issue bonds under subdivision 1, 
  7.21  paragraph (a), when it has received the certification of the 
  7.22  commissioner under paragraph (c) or adopt a resolution 
  7.23  authorizing the transfer provided for in section 473I.03, 
  7.24  subdivision 2, when it has determined that the commission, the 
  7.25  city of Minneapolis, or the Minneapolis community development 
  7.26  agency, or any or all of them, as the commission may deem 
  7.27  appropriate, has executed agreements with the NHL team to use 
  7.28  the basketball and hockey arena for all scheduled regular season 
  7.29  home games and play-off home games, and for at least one of its 
  7.30  exhibition games played each season, or has entered into other 
  7.31  arrangements that will achieve a like purpose.  If the council 
  7.32  does not affirmatively make its determination, any funds 
  7.33  appropriated by the state and paid to the council shall be 
  7.34  repaid to the state by the council.  The agreements or 
  7.35  arrangements shall be for a period of not less than the term of 
  7.36  the bonds or for a greater period as the commission may 
  8.1   determine or, if bonds are not issued, then for a period as the 
  8.2   commission may determine.  The agreements or arrangements may 
  8.3   contain provisions negotiated with the NHL team which provide 
  8.4   for earlier termination of the NHL team's commitment upon 
  8.5   conditions related to the bankruptcy or insolvency of the NHL 
  8.6   team.  The agreements or arrangements may contain provisions 
  8.7   consistent with the Minneapolis community development agency's 
  8.8   ownership and operation of the basketball and hockey arena.  The 
  8.9   agreements or arrangements shall afford to the commission, the 
  8.10  city of Minneapolis, the Minneapolis community development 
  8.11  agency, the council, or the state, or each or all of them, as 
  8.12  the commission deems appropriate, the rights and remedies that 
  8.13  are deemed necessary and appropriate to provide reasonable 
  8.14  assurances that the NHL team shall comply with the agreements.  
  8.15  The rights and remedies may include the payment of liquidated 
  8.16  damages equivalent to direct and consequential damages incurred 
  8.17  by reason of the breach of the agreements, the equitable remedy 
  8.18  of specific performance, and any additional remedies at equity 
  8.19  or law, an option to purchase the NHL team, the assurance of 
  8.20  private ownership by residents of the state or any security or 
  8.21  other arrangements the commission reasonably determines to be 
  8.22  effective in accomplishing the purposes of this chapter.  The 
  8.23  damages payment may be payable in a lump sum or in installments 
  8.24  as the commission may deem appropriate.  The commission may 
  8.25  require that the agreements or arrangements include other terms 
  8.26  and conditions to provide reasonable assurances that the NHL 
  8.27  team or a successor major league professional hockey team will 
  8.28  play the required games at the basketball and hockey arena 
  8.29  during the term provided for in this paragraph, or, in the event 
  8.30  of a breach, to assure the payment of the required damages.  The 
  8.31  agreements or arrangements shall address contingencies that may 
  8.32  arise in the event of a change of ownership of the NHL team.  It 
  8.33  is the intention of the legislature that the rights and remedies 
  8.34  of the commission and of other public bodies which have 
  8.35  contracted or may contract with professional athletic teams for 
  8.36  the use of public facilities be construed liberally and in favor 
  9.1   of the public interest. 
  9.2      Subd. 4.  [COUNCIL ADMISSIONS TAX.] The council may impose 
  9.3   an admissions tax or surcharge or both on tickets sold for 
  9.4   hockey games or events sponsored by the NHL team at the 
  9.5   basketball and hockey arena, upon the recommendation of the 
  9.6   commission.  If the bonds are not issued under subdivision 1, 
  9.7   the proceeds shall be transferred to the commission for the 
  9.8   purposes of this chapter.  
  9.9      Subd. 5.  [SECURITY.] The appropriation provided in section 
  9.10  473I.07 and any funds pledged for payment of the bonds shall be 
  9.11  and remain pledged and appropriated for the purposes specified 
  9.12  in this section until all bonds referred to in subdivision 1 are 
  9.13  fully paid or discharged in accordance with law.  Bonds issued 
  9.14  under this section may be secured by a bond resolution or by a 
  9.15  trust indenture entered into by the council with a corporate 
  9.16  trustee within or outside the state which shall define the 
  9.17  appropriation and other revenues and properties, if any, pledged 
  9.18  for the payment and security of the bonds.  The pledge shall be 
  9.19  a valid charge on the appropriation, if any, and any other funds 
  9.20  pledged for payment of the bonds from the date when bonds are 
  9.21  first issued or secured under the resolution or indenture and 
  9.22  shall secure the payment of principal and interest and 
  9.23  redemption premiums when due and the maintenance at all times of 
  9.24  a reserve securing the payments.  The council, upon 
  9.25  recommendation of the commission, may grant or obtain a mortgage 
  9.26  or security interest in any real or personal property of the NHL 
  9.27  team, or in property of the council or the commission obtained 
  9.28  from the agreements or arrangements entered into under this 
  9.29  chapter, which may be assigned or granted to the trustee for the 
  9.30  further benefit or security of the bondholders.  The trustee 
  9.31  shall have a valid security interest in the pledged revenues or 
  9.32  property, if any, received by the council or commission as 
  9.33  against the claims of all other persons in tort, contract, or 
  9.34  otherwise, irrespective of whether the parties have notice of 
  9.35  them, and without possession or filing as provided in the 
  9.36  Uniform Commercial Code or any other law.  In the bond 
 10.1   resolution or trust indenture, the council may make the 
 10.2   covenants that are determined to be usual and reasonably 
 10.3   necessary for the protection of the bondholders.  No pledge, 
 10.4   mortgage, covenant, or agreement securing bonds may be impaired, 
 10.5   revoked, or amended by law or by action of the council, 
 10.6   commission, or city, except in accordance with the terms of the 
 10.7   resolution or indenture under which the bonds are issued, until 
 10.8   the obligations of the council under the resolution or indenture 
 10.9   are fully discharged.  
 10.10     Sec. 5.  [473I.05] [UNIVERSITY OF MINNESOTA ICE FACILITY.] 
 10.11  The University of Minnesota shall enter into agreements with a 
 10.12  NHL team or with the commission providing that its ice athletic 
 10.13  facility be made available for NHL team practices, at no charge 
 10.14  or cost to the NHL team for the term of the agreements provided 
 10.15  in section 473I.04, subdivision 3, paragraph (d), and upon 
 10.16  additional terms as the commission may determine necessary and 
 10.17  appropriate to promote the purposes of this chapter. 
 10.18     Sec. 6.  [473I.06] [NO PLEDGE OF CREDIT OR TAXING POWER.] 
 10.19     The provisions of this chapter are not a pledge of the 
 10.20  faith, credit, and taxing power of the state or of the council 
 10.21  for the purposes of sections 473I.03 and 473I.04.  The sole 
 10.22  obligation of the state under sections 473I.03 and 473I.04 shall 
 10.23  be to make payments to the council from funds that may be 
 10.24  appropriated.  No provision of this chapter is intended to 
 10.25  create public debt and the appropriation under section 473I.07 
 10.26  is subject to repeal at any time. 
 10.27     Sec. 7.  [473I.07] [APPROPRIATION.] 
 10.28     $....... is annually appropriated from the general fund to 
 10.29  the council for the payment of debt service on bonds issued by 
 10.30  the council under section 473I.04, subdivision 1, or for direct 
 10.31  payment to the commission as provided in section 473I.03, 
 10.32  subdivision 2. 
 10.33     Sec. 8.  [473I.08] [AMATEUR ICE ARENAS; APPROPRIATION.] 
 10.34     $....... is annually appropriated from the general fund to 
 10.35  the amateur sports commission for purposes consistent with the 
 10.36  provisions of sections 240A.09 and 240A.10, and, if any be 
 11.1   authorized by law, for payment of debt service on bonds issued 
 11.2   by the state for those purposes and the reduction of debt 
 11.3   service charges on the bond proceeds fund. 
 11.4      Sec. 9.  [EFFECTIVE DATE; APPLICATION.] 
 11.5      This act is effective the day following final enactment and 
 11.6   applies in the counties of Anoka, Carver, Dakota, Hennepin, 
 11.7   Ramsey, Scott, and Washington.