HF 2214

2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to a baseball park; providing for financing 
  1.3             of a major league baseball park; providing a site 
  1.4             selection process; authorizing state revenue bonds; 
  1.5             establishing a baseball park gift fund; authorizing a 
  1.6             state loan to the site city; requiring local 
  1.7             government body approval; establishing a sports 
  1.8             facilities fund; imposing certain obligations on the 
  1.9             major league baseball team; requiring a use agreement 
  1.10            and a guaranty from major league baseball; providing a 
  1.11            property tax exemption for the baseball park; 
  1.12            exempting sales of construction materials for the park 
  1.13            from the sales tax; requiring payment of the 
  1.14            prevailing wage rate to ballpark construction workers; 
  1.15            requiring the state executive council to select a city 
  1.16            for the site; requiring the legislative commission on 
  1.17            planning and fiscal policy to make a recommendation to 
  1.18            the council; providing an opportunity for community 
  1.19            ownership if the baseball team is sold; requiring a 
  1.20            donation from private sources as a precondition to 
  1.21            issuing bonds or loaning state money; authorizing 
  1.22            certain temporary city taxes and an admission tax if 
  1.23            approved by referendum; authorizing parking 
  1.24            surcharges; authorizing issuance of an additional 
  1.25            liquor license; authorizing a condominium; requiring 
  1.26            evaluation of an olympic bid; amending Minnesota 
  1.27            Statutes 2000, sections 272.02, by adding a 
  1.28            subdivision; 297A.71, by adding a subdivision; 
  1.29            proposing coding for new law in Minnesota Statutes, 
  1.30            chapter 16A. 
  1.31  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.32     Section 1.  [16A.88] [SPORT FACILITIES FUND.] 
  1.33     (a) A sports facilities fund is established in the state 
  1.34  treasury.  The metropolitan sports facilities commission shall 
  1.35  transfer $15,000,000 from its accumulated reserves to the 
  1.36  commissioner of finance for deposit in the fund. 
  1.37     (b) Amounts in the fund may be used to pay the principal 
  1.38  and interest on state revenue bonds issued to finance the 
  2.1   baseball park.  In addition, any available amounts in the fund 
  2.2   may be used, as appropriated by law, to provide financial 
  2.3   assistance to construct a football stadium and to make 
  2.4   improvements to other sports facilities in the state. 
  2.5      Sec. 2.  Minnesota Statutes 2000, section 272.02, is 
  2.6   amended by adding a subdivision to read: 
  2.7      Subd. 50.  [BASEBALL PARK.] Real or personal property 
  2.8   acquired, owned, leased, controlled, used, or occupied as a 
  2.9   baseball park by a major league professional baseball team is 
  2.10  exempt from taxation but the property is subject to special 
  2.11  assessments levied by a political subdivision under chapter 429. 
  2.12  The baseball park includes parking facilities and land necessary 
  2.13  to and part of the use of the baseball park.  A use of the 
  2.14  property in any manner different from its use as a baseball park 
  2.15  must not be considered in determining the special benefit under 
  2.16  chapter 429 received by the properties.  Notwithstanding section 
  2.17  272.01, subdivision 2, or 273.19, real or personal property on 
  2.18  the premises of the baseball park leased by the local government 
  2.19  unit that operates the baseball park to another person or entity 
  2.20  for uses directly related to the operation of the baseball park 
  2.21  is exempt from taxation regardless of the length of the lease.  
  2.22  This subdivision expires one month after repayment of the bonds 
  2.23  issued to finance the baseball park. 
  2.24     Sec. 3.  Minnesota Statutes 2000, section 297A.71, is 
  2.25  amended by adding a subdivision to read: 
  2.26     Subd. 28.  [CONSTRUCTION MATERIALS; BASEBALL 
  2.27  PARK.] Materials, supplies used or consumed in, and equipment 
  2.28  incorporated into the construction or improvement of the 
  2.29  baseball park constructed under sections 4 to 7, are exempt.  
  2.30  This subdivision expires one year after the first major league 
  2.31  baseball game is played in the baseball park. 
  2.32     Sec. 4.  [SITE SELECTION FOR BASEBALL PARK.] 
  2.33     Subdivision 1.  [DEFINITION.] (a) For purposes of sections 
  2.34  4 through 7, the following terms have the meanings given, unless 
  2.35  the context indicates otherwise. 
  2.36     (b) "City" means the statutory or home rule charter city, 
  3.1   designated by the council as the site for the baseball park. 
  3.2      (c) "Commissioner" means the commissioner of finance. 
  3.3      (d) "Council" means the executive council under Minnesota 
  3.4   Statutes, section 9.011. 
  3.5      Subd. 2.  [SITE SELECTION PROCESS.] On or before July 1, 
  3.6   2002, the council shall select a city to provide a site for the 
  3.7   new baseball park.  The required elements of the selection 
  3.8   process are: 
  3.9      (1) the council shall accept bids from any city within the 
  3.10  metropolitan area, as defined in Minnesota Statutes, section 
  3.11  473.121, subdivision 2; 
  3.12     (2) acceptable bids must provide, at a minimum, for the 
  3.13  provision of land of a site that is of adequate size for the 
  3.14  baseball park and adjacent parking facilities to be made 
  3.15  available to the team; 
  3.16     (3) the site must be in a condition appropriate for 
  3.17  development; 
  3.18     (4) the bid must specify the intent of the city to own and 
  3.19  operate the baseball park and demonstrate a reasonable capacity 
  3.20  to do so; 
  3.21     (5) the bid must demonstrate the financial capacity of the 
  3.22  city to make the annual payments under and satisfy any other 
  3.23  conditions of the loan under section 5; and 
  3.24     (6) the legislative commission on planning and fiscal 
  3.25  policy has reviewed the bids and made a recommendation to the 
  3.26  council regarding the proposed host city and site for the 
  3.27  baseball park. 
  3.28     Subd. 3.  [SELECTION CRITERIA.] In selecting a site, the 
  3.29  council shall consider, at least the following: 
  3.30     (1) the adequacy of the size of the site relative to 
  3.31  preferred design for the baseball park; 
  3.32     (2) the adequacy of existing public infrastructure serving 
  3.33  the site, including parking and highway, road, and transit 
  3.34  access to meet the demands created by events at the baseball 
  3.35  park in combination with other uses or events in the area that 
  3.36  create traffic, transit or parking demands; 
  4.1      (3) the costs of any likely infrastructure improvements for 
  4.2   the facility; 
  4.3      (4) potential development advantages including development 
  4.4   of compatible mixed use, commercial, and housing developments in 
  4.5   the area surrounding the baseball park; 
  4.6      (5) compatibility of surrounding uses with the baseball 
  4.7   park; and 
  4.8      (6) appropriate aesthetic considerations. 
  4.9      Subd. 4.  [PRE-CONDITIONS FOR SELECTION.] Before the 
  4.10  council may designate a city as the host city for the baseball 
  4.11  park with the powers granted under sections 5 to 9, the council 
  4.12  must determine that each of the following is met for the 
  4.13  proposed baseball park: 
  4.14     (1) all of the requirements of sections 4 to 7 have been 
  4.15  met by the city, the team, and major league baseball; 
  4.16     (2) the pledged facility and local tax revenues will be 
  4.17  sufficient to pay the debt service on the revenue bonds; 
  4.18     (3) the city has established a baseball park district to 
  4.19  foster the development and continuing growth of compact, 
  4.20  pedestrian-oriented, compatible mixed uses within buildings and 
  4.21  blocks around the baseball park; 
  4.22     (4) the requirements of subdivision 5 have been met; and 
  4.23     (5) the legislative commission on planning and fiscal 
  4.24  policy has approved the site, in its recommendation to the 
  4.25  council. 
  4.26     Subd. 5.  [COMMUNITY OWNERSHIP.] (a) The owner of the major 
  4.27  league baseball team must agree that before the owner sells a 
  4.28  majority ownership interest in the team, the owner will attempt 
  4.29  for a reasonable time to comply with the requirements of 
  4.30  paragraphs (b) and (c). 
  4.31     (b) The owner of the team must work with the governor, the 
  4.32  commissioner, and a community foundation or corporation on a 
  4.33  plan to: 
  4.34     (1) transfer by gift to a foundation or corporation all 
  4.35  ownership interests in the team; 
  4.36     (2) provide for sale of shares in the team by the 
  5.1   foundation or corporation to the community, in a manner such 
  5.2   that up to 49 percent of the voting stock may be dispersed so 
  5.3   that no person owns more than five percent; and 
  5.4      (3) ensure that the franchise may not move from Minnesota 
  5.5   without approval of 75 percent of the shares of voting stock. 
  5.6      (c) The owner of the team must attempt to reach an 
  5.7   agreement on the sale of a majority interest in the team to one 
  5.8   or more Minnesota buyers before attempting to sell the majority 
  5.9   interest to others. 
  5.10     (d) If the owner of the team attempts to sell a majority 
  5.11  interest in the team, the commissioner must report to the 
  5.12  legislature at the beginning of the next legislative session on 
  5.13  efforts to work with the owner of the team to implement this 
  5.14  subdivision. 
  5.15     Sec. 5.  [REVENUE BONDS; BASEBALL PARK.] 
  5.16     Subdivision 1.  [REVENUE BOND AUTHORITY.] (a) The 
  5.17  commissioner may issue state revenue bonds in a principal amount 
  5.18  of up to $330,000,000 to make a loan to the city to finance the 
  5.19  costs of designing, acquiring, constructing, furnishing, and 
  5.20  equipping a baseball park for a major league baseball franchise, 
  5.21  to pay principal interest on the bonds, to establish a reserve 
  5.22  fund or funds, and to pay the cost of issuance of the bonds.  
  5.23  The commissioner may issue and sell the bonds upon the terms and 
  5.24  conditions as the commissioner determines to be in the best 
  5.25  interests of the state.  The bonds may be issued at public or 
  5.26  private sale.  The commissioner may enter any agreements or 
  5.27  pledges the commissioner determines necessary or useful to sell 
  5.28  the bonds that are not inconsistent with this act.  The bonds 
  5.29  are payable only from the following sources: 
  5.30     (1) the principal and any investment earnings on the 
  5.31  proceeds of the baseball fund under subdivision 3; 
  5.32     (2) payments of the city and team under the loan made by 
  5.33  the commissioner; and 
  5.34     (3) other revenues pledged to the payment of the bonds. 
  5.35     (b) The commissioner may issue bonds to refund outstanding 
  5.36  bonds issued under paragraph (a), including the payment of any 
  6.1   redemption premiums on the bonds and any interest accrued or to 
  6.2   accrue to the first redemption date after delivery of the 
  6.3   refunding bonds.  The proceeds of the refunding bonds may, in 
  6.4   the discretion of the commissioner, be applied to the purchases 
  6.5   or payment at maturity of the bonds to be refunded, or the 
  6.6   redemption of the outstanding bonds on the first redemption date 
  6.7   after delivery of the refunding bonds and may, until so used, be 
  6.8   placed in escrow to be applied to such purchase, retirement, or 
  6.9   redemption.  Refunding bonds issued under the provisions of this 
  6.10  paragraph must be issued and secured in the manner provided by 
  6.11  the commissioner. 
  6.12     (c) Bonds issued under this section are not public debt, 
  6.13  and the full faith, credit, and taxing powers of the state are 
  6.14  not pledged for their payment.  The bonds may not be paid, 
  6.15  directly in whole or part from a tax of statewide application on 
  6.16  any class of property, income, transaction, or privilege. 
  6.17     (d) The commissioner may contract with and appoint a 
  6.18  trustee for bond holders.  The trustee has the powers and 
  6.19  authority vested in it by the commissioner under the bond and 
  6.20  trust indentures.  
  6.21     Subd. 2.  [PRE-CONDITIONS TO ISSUING BONDS.] Before issuing 
  6.22  bonds or making a loan under this act, the commissioner must 
  6.23  determine that: 
  6.24     (1) $165,000,000 in cash has been received for the baseball 
  6.25  park gift fund under subdivision 3 from the team or other 
  6.26  private sources; 
  6.27     (2) the city and the team have agreed to make payments on 
  6.28  the ballpark loan at the times and in the amounts provided in 
  6.29  the loan agreement, but not less than $10,000,000 per year; 
  6.30     (3) the commissioner determines the revenues pledged to pay 
  6.31  the bonds from the baseball park gift fund and team and local 
  6.32  tax revenues will be sufficient to pay and make the bonds 
  6.33  marketable; and 
  6.34     (4) the conditions required under section 7, subdivision 1, 
  6.35  have been met. 
  6.36     Subd. 3.  [BASEBALL PARK GIFT FUND.] (a) A baseball park 
  7.1   gift fund is established in the state treasury.  The proceeds of 
  7.2   this fund and its investment earnings are pledged to and may 
  7.3   only be used to pay principal and interest obligations on bonds 
  7.4   issued under this section. 
  7.5      (b) The state board of investment shall contract with the 
  7.6   investment advisors specified by the team to invest money in the 
  7.7   fund.  The fund must be invested in authorized investments under 
  7.8   Minnesota Statutes, section 11A.24, except (i) corporate 
  7.9   obligations described in Minnesota Statutes, section 11A.24, 
  7.10  subdivision 3, paragraph (b) and (ii) investments described in 
  7.11  Minnesota Statutes, section 11A.24, subdivision 6, paragraph 
  7.12  (a), clauses (1) to (4).  
  7.13     (c) The commissioner shall enter an agreement with the team 
  7.14  to review the performance of investment of the fund at least 
  7.15  once every four years.  If the rate of return earned on money in 
  7.16  the fund during the period was less than 8.5 percent per year, 
  7.17  the team must pay the commissioner for deposit in the fund an 
  7.18  amount of money sufficient to equal the money that would be in 
  7.19  the fund, if an 8.5 percent annual rate of return had been 
  7.20  earned.  If the rate of return on the fund during the period 
  7.21  exceeded 8.5 percent, the commissioner may use the excess to 
  7.22  retire or defease the bonds or to pay for other improvements to 
  7.23  the baseball park. 
  7.24     (d) In addition, the commissioner may require, as part of 
  7.25  the loan agreement, that the city exercise its authority under 
  7.26  section 6 to provide funds to the commissioner to make up any 
  7.27  deficiency resulting from a default by the team on its 
  7.28  obligation under paragraph (c).  The city may recover from the 
  7.29  team or its owners, any payments made in this paragraph.  
  7.30     Subd. 4.  [LOCAL GOVERNING BODY APPROVAL.] The governing 
  7.31  body of the city must approve by two-thirds vote a resolution 
  7.32  confirming that it will own the baseball park and agree to the 
  7.33  terms of the state loan. 
  7.34     Subd. 5.  [CONSTRUCTION OF BASEBALL PARK; MAXIMUM 
  7.35  PRICE.] The city must have executed agreements that provide for 
  7.36  the construction of a roof-ready baseball park to be owned by 
  8.1   the city for a guaranteed maximum price not to exceed 
  8.2   $330,000,000, and that requires performance bonds in an amount 
  8.3   at least equal to 100 percent of the guaranteed maximum price to 
  8.4   cover any costs incurred over and above the guaranteed maximum 
  8.5   price, including, but not limited to, costs incurred by the city 
  8.6   and loss of revenues resulting from incomplete construction on 
  8.7   the substantial completion date.  The agreement must include 
  8.8   that at least one-half of the cost of the baseball park must be 
  8.9   financed by the owner of the major league baseball team or by 
  8.10  other private sector financing and that the major league 
  8.11  baseball team is responsible for and must pay all cost overruns. 
  8.12     Subd. 6.  [MANAGER.] The city must have entered into a 
  8.13  contract with a manager to operate the baseball park for the use 
  8.14  of the major league baseball team. 
  8.15     Subd. 7.  [AGREEMENT; TEAM.] The city must have entered 
  8.16  into a use agreement with the major league baseball team that 
  8.17  provides: 
  8.18     (1) the major league baseball team is responsible for and 
  8.19  must pay for all cost overruns incurred in construction of the 
  8.20  baseball park; 
  8.21     (2) the major league baseball team will use the baseball 
  8.22  park for all scheduled home preseason, regular season, and 
  8.23  postseason games that the major league baseball team is entitled 
  8.24  to play at home for not less than 30 years without an escape 
  8.25  clause for the major league baseball team; 
  8.26     (3) that transfer of any portion of ownership or equity in 
  8.27  the major league baseball team does not change any obligations, 
  8.28  responsibilities, or privileges under the agreement, this 
  8.29  section, or section 7; 
  8.30     (4) the major league baseball team will ensure that a 
  8.31  portion of the tickets for its games are accessible and 
  8.32  affordable; 
  8.33     (5) the major league baseball team will receive all revenue 
  8.34  generated at the stadium except as otherwise specifically 
  8.35  provided in this act; 
  8.36     (6) a listing of all revenue streams generated from use of 
  9.1   the baseball park with a specification of what revenues are 
  9.2   available to cover the major league baseball team operations, 
  9.3   which accrue to the city and which are available for repayment 
  9.4   of bonds; 
  9.5      (7) the major league baseball team must operate and 
  9.6   maintain the stadium in excellent condition during the duration 
  9.7   of the agreement.  The city must verify that the team complies 
  9.8   with this requirement; 
  9.9      (8) delineation of the responsibility for repair, 
  9.10  maintenance, and replacement of equipment or property in the 
  9.11  baseball park, including inspections by the city and a 
  9.12  representative of the state; 
  9.13     (9) the major league baseball team shall provide a letter 
  9.14  of credit in an amount that protects the public interest in the 
  9.15  event of a default by the major league baseball team or a 
  9.16  disruption in the season due to a player strike or lockout; 
  9.17     (10) the agreement must afford to the city the rights and 
  9.18  remedies at law and equity that are deemed necessary and 
  9.19  appropriate to provide reasonable assurance that the baseball 
  9.20  team and the owner will comply with the agreements through the 
  9.21  30-year term.  The remedies must include, but not be limited to, 
  9.22  specific performance and injunctive relief, and may include any 
  9.23  other equitable remedies, and any additional remedies or 
  9.24  ownership, voting, or other security arrangements the city 
  9.25  reasonably determines to be effective in ensuring the baseball 
  9.26  team will play the required games in the baseball park 
  9.27  throughout the 30-year term.  The legislature intends that a 
  9.28  material breach of an agreement between the city and 
  9.29  professional athletic teams that commit to the long-term playing 
  9.30  of major league games at public facilities is deemed to cause 
  9.31  irreparable harm for which no adequate remedy at law is 
  9.32  available and that the grant of equitable relief to remedy the 
  9.33  breach is in the public interest and shall be liberally so 
  9.34  construed; 
  9.35     (11) that the major league baseball team has the following 
  9.36  obligations during the period of construction of a baseball 
 10.1   stadium: 
 10.2      (i) the payment of the prevailing wage rate as defined in 
 10.3   Minnesota Statutes, section 177.42, to all construction workers; 
 10.4      (ii) the provision to the city of a signed agreement 
 10.5   between the major league baseball team and the construction 
 10.6   unions that will work on the new stadium that mandates a 
 10.7   no-strike and no-lockout period during construction of a 
 10.8   baseball park; 
 10.9      (iii) all construction materials for the baseball park 
 10.10  produced from or containing steel, so far as practicable, must 
 10.11  use steel produced in the United States from taconite produced 
 10.12  in Minnesota; and 
 10.13     (12) if there is a sale or transfer of ownership of the 
 10.14  major league baseball team, the owner of the team shall pay to 
 10.15  the state an amount equal to the state's share of the 
 10.16  appreciated value of the team.  The state's share must be based 
 10.17  on the value of the state investment in the baseball park and 
 10.18  must be determined according to a formula included in the use 
 10.19  agreement. 
 10.20     Subd. 8.  [AMATEUR SPORTS.] The city must provide that the 
 10.21  baseball park will be available for use by the state high school 
 10.22  and amateur sports leagues when practicable. 
 10.23     Sec. 6.  [FINANCING; CONSTRUCTION.] 
 10.24     Subdivision 1.  [OWNERSHIP; TAX AUTHORITY.] The city shall 
 10.25  own the baseball park and, subject to the restrictions in this 
 10.26  section, may impose one or more of the taxes under this section 
 10.27  to make the payments or meet other obligations under the loan 
 10.28  agreement under section 5.  
 10.29     Subd. 2.  [BASEBALL PARK ADMISSIONS TAX.] Notwithstanding 
 10.30  any other law, the city may impose an admissions tax of up to 
 10.31  ten percent of the sale price upon the granting, issuance, 
 10.32  sales, or distribution, by any private or public person, 
 10.33  association, or corporation, of the privilege of admission to 
 10.34  activities at the baseball park.  No other tax, surcharge, or 
 10.35  governmental imposition, except the taxes collected under 
 10.36  Minnesota Statutes, chapter 297A, may be levied by any other 
 11.1   unit of government upon any such sale or distribution. 
 11.2      The admission tax must be stated and charged separately 
 11.3   from the sales price so far as practicable and must be collected 
 11.4   by the grantor, seller, or distributor from the person 
 11.5   admitted.  The admission tax collected must be used for 
 11.6   repayment of the bonds issued under section 5.  The tax is a 
 11.7   debt from that person to the grantor, issuer, seller, or 
 11.8   distributor, and the tax required to be collected is a debt owed 
 11.9   by the grantor, issuer, seller, or distributor to the local 
 11.10  government unit, recoverable at law in the same manner as other 
 11.11  debts.  Every person granting, issuing, selling, or distributing 
 11.12  tickets for admissions to the ballpark may be required to secure 
 11.13  a permit, to file returns, to deposit security for the payment 
 11.14  of the tax, and to pay the penalties for nonpayment and interest 
 11.15  on late payments, as deemed necessary or expedient to assure the 
 11.16  prompt and uniform collection of the tax. 
 11.17     Subd. 3.  [FOOD AND BEVERAGE TAXES.] Notwithstanding 
 11.18  Minnesota Statutes, section 477A.016, or any other limitation of 
 11.19  law or charter, and in addition to other taxes previously 
 11.20  authorized by law, the city may by ordinance impose liquor and 
 11.21  food taxes not to exceed five percent at a retail level on any 
 11.22  business within the city.  The ordinance must provide for 
 11.23  dedication of the taxes or fees, after payment of collection and 
 11.24  administrative expenses and refunds, to payment of principal and 
 11.25  interest on bonds issued under section 5. 
 11.26     Subd. 4.  [LODGING TAX.] Notwithstanding Minnesota 
 11.27  Statutes, section 477A.016, or any other limitation of law or 
 11.28  charter to the contrary, the city may impose, by ordinance, a 
 11.29  lodging tax at a rate of no more than five percent on the gross 
 11.30  receipts from the furnishing for consideration of lodging as 
 11.31  described in Minnesota Statutes, section 469.190, subdivision 
 11.32  1.  The city may impose this tax on all or part of the city, as 
 11.33  provided in the ordinance and may provide for exempting hotels 
 11.34  or motels based on the number of rooms they have available.  The 
 11.35  ordinance must provide for dedication of the taxes and other 
 11.36  income from the tax, after payment of collection and 
 12.1   administrative expenses and refunds, to payment of the principal 
 12.2   and interest on bonds issued for the baseball park. 
 12.3      Subd. 5.  [PARKING TAX, SURCHARGE, OR BOTH.] The city may, 
 12.4   by ordinance, impose a parking tax or surcharge or both of not 
 12.5   less than $2 per vehicle per event at the baseball park.  The 
 12.6   parking tax and surcharge apply to public and privately owned 
 12.7   parking facilities in the area that the city determines in its 
 12.8   ordinance provide event parking for the baseball park.  The 
 12.9   ordinance must provide for dedication of the taxes and other 
 12.10  income from the tax, after payment of collection and 
 12.11  administrative expenses and refunds, to payment of the principal 
 12.12  and interest on bonds issued for the baseball park. 
 12.13     Subd. 6.  [MAJOR LEAGUE BASEBALL GUARANTY.] Before bonds 
 12.14  are issued under section 5, with the advice of the attorney 
 12.15  general, the city must execute an agreement with the major 
 12.16  league of which the baseball team is a member and with major 
 12.17  league baseball that guarantees the continuance of a major 
 12.18  league franchise in the metropolitan area for the greater of (i) 
 12.19  30 years or (ii) the term of the bonds issued to finance the 
 12.20  baseball park. 
 12.21     Subd. 7.  [REFERENDUM.] (a) Before any city imposes a tax 
 12.22  under this section, the imposition of the tax must be approved 
 12.23  by the voters of the city at a special election held on the 
 12.24  first Tuesday in June 2002. 
 12.25     (b) Notwithstanding any statute, charter provision, or 
 12.26  other law to the contrary, if the tax is approved in a 
 12.27  referendum under this subdivision, an ordinance enacting the tax 
 12.28  is not subject to another vote of the electorate by referendum, 
 12.29  initiative, charter amendment, or in any other manner. 
 12.30     Subd. 8.  [EXPIRATION; LOCAL OPTION TAXES.] When the bonds 
 12.31  issued under section 5 have been defeased or retired, 
 12.32  subdivisions 3 to 5 and the taxes authorized by them expire. 
 12.33     Sec. 7.  [OBLIGATIONS; MAJOR LEAGUE PROFESSIONAL BASEBALL 
 12.34  TEAM.] 
 12.35     Subdivision 1.  [OBLIGATIONS PRIOR TO BOND ISSUANCE.] (a) 
 12.36  The major league professional baseball team must fully and 
 13.1   completely do its part to accomplish the requirements of 
 13.2   paragraphs (b) and (c) before the commissioner may issue bonds 
 13.3   to finance the baseball park. 
 13.4      (b) The requirements are that: 
 13.5      (1) a signed lease for not less than 30 years between the 
 13.6   city and the major league professional baseball team must be 
 13.7   completed with no escape clauses; 
 13.8      (2) the major league professional baseball team has signed 
 13.9   an agreement with the city agreeing to allow the baseball park 
 13.10  to be available on nongame days for potential use by the 
 13.11  University of Minnesota, Minnesota state colleges and 
 13.12  universities, private colleges and universities, the state high 
 13.13  school league, the city for community events, and the Minnesota 
 13.14  amateur sports commission; 
 13.15     (3) the major league of which the baseball team is a member 
 13.16  and major league baseball have both executed an agreement with 
 13.17  the city that guarantees the continuance of a major league 
 13.18  franchise in the metropolitan area for the greater of (i) 30 
 13.19  years from the date of the agreement or (ii) the term of the 
 13.20  bonds under section 5; 
 13.21     (4) the major league professional baseball team and major 
 13.22  league baseball have signed an agreement with the city to 
 13.23  cooperate in maintaining the facility as a smoke-free facility; 
 13.24  and 
 13.25     (5) the major league professional baseball team has agreed 
 13.26  to make all reasonable efforts to ensure that businesses owned 
 13.27  by socially disadvantaged persons are awarded contracts for 
 13.28  construction and operation of the baseball park in proportion to 
 13.29  the number of qualified businesses owned by socially 
 13.30  disadvantaged persons in the metropolitan area.  In addition, 
 13.31  the team has agreed to make all reasonable efforts to ensure 
 13.32  that employment of socially disadvantaged persons for the 
 13.33  construction or operation of the baseball park will be 
 13.34  proportionate to the number of qualified workers who are 
 13.35  socially disadvantaged persons in the metropolitan area.  For 
 13.36  the purposes of this clause, "socially disadvantaged persons" is 
 14.1   as defined in Minnesota Rules, part 1230.0150, subpart 24.  The 
 14.2   city must report to the legislature annually on the 
 14.3   implementation of this clause. 
 14.4      (c) The major league baseball team must sign, as a 
 14.5   condition of receiving any public assistance, a contract with 
 14.6   the city under which the city would obtain from the team the 
 14.7   rights to the control and use of the team name and logo in the 
 14.8   event that the team relocates to another state.  Under such a 
 14.9   contract, the team must notify the city within 24 hours of 
 14.10  signing an agreement to relocate, and at midnight immediately 
 14.11  following notification, all income from existing contracts for 
 14.12  the use of the team name and logo and all team property with the 
 14.13  team name and logo, other than personal property of team members 
 14.14  and principals, will become the property of the city.  This 
 14.15  agreement and the requirement that it be entered may not be 
 14.16  construed as authorizing or permitting the team to relocate 
 14.17  before the end of the lease and use agreements with the city.  
 14.18     Subd. 2.  [DESIGN AND CONSTRUCTION.] (a) The major league 
 14.19  professional baseball team shall design and construct the 
 14.20  baseball park.  Before the design process is complete and 
 14.21  construction begins, the city and the team must hold at least 
 14.22  one public hearing on the proposed design.  All funds 
 14.23  appropriated to the city under this act must be managed by the 
 14.24  city and made available to the team as the team deems necessary 
 14.25  for construction purposes. 
 14.26     (b) All construction materials for the baseball park 
 14.27  produced from or containing steel, so far as practicable, must 
 14.28  use steel produced in the United States from taconite produced 
 14.29  in Minnesota.  The city shall establish and impose on the major 
 14.30  league professional baseball team appropriate compliance 
 14.31  procedures. 
 14.32     Subd. 3.  [OBLIGATIONS DURING CONSTRUCTION.] The major 
 14.33  league professional baseball team during the period of 
 14.34  construction of a baseball park must: 
 14.35     (1) pay the prevailing wage rate as defined in Minnesota 
 14.36  Statutes, section 177.42, to all construction workers; 
 15.1      (2) provide to the city a signed agreement between the 
 15.2   major league professional baseball team and the construction 
 15.3   unions that will work on the new baseball park that mandates a 
 15.4   no-strike and no-lockout period during construction of the 
 15.5   baseball park; and 
 15.6      (3) pay any cost overruns that occur during the 
 15.7   construction period. 
 15.8      Sec. 8.  [BASEBALL PARK; LIQUOR LICENSE.] 
 15.9      The city in which the baseball park is located may issue an 
 15.10  intoxicating liquor license for the premises of the baseball 
 15.11  park.  This license is in addition to the number authorized by 
 15.12  law.  All provisions of Minnesota Statutes, chapter 340A, not 
 15.13  inconsistent with this section apply to the license authorized 
 15.14  under this section. 
 15.15     Sec. 9.  [CONDOMINIUM.] 
 15.16     The city selected to be the location of the baseball park 
 15.17  may, by itself or together with another owner, and any other 
 15.18  public or private person or entity, as to real or personal 
 15.19  property comprising or appurtenant or ancillary to the baseball 
 15.20  park, act as a declarant and establish a condominium or 
 15.21  leasehold condominium under Minnesota Statutes, chapter 515A, or 
 15.22  as a common interest community or leasehold common interest 
 15.23  community under Minnesota Statutes, chapter 515B, and may grant, 
 15.24  establish, create, or join in other or related easements, 
 15.25  agreements, and similar benefits and burdens that the city may 
 15.26  deem necessary or appropriate, and may exercise any and all 
 15.27  rights and privileges, and assume obligations under them as a 
 15.28  declarant, unit owner, or otherwise, insofar as practical and 
 15.29  consistent with this act.  The city may be a member of an 
 15.30  association and the chair, any members of its governing body, 
 15.31  and any officers and employees of the city may serve on the 
 15.32  board of an association under Minnesota Statutes, chapter 515A 
 15.33  or 515B. 
 15.34     Sec. 10.  [OLYMPIC BID; FACILITY CONSTRUCTION.] 
 15.35     The governor must evaluate:  (1) the feasibility of 
 15.36  Minnesota preparing a bid to host the 2012 or future summer 
 16.1   Olympics; and (2) the possibility that hosting the 2012 or 
 16.2   future summer Olympics may result in sources other than the 
 16.3   state or a local governmental unit constructing facilities that 
 16.4   could be used by Minnesota professional sports teams after 
 16.5   completion of the Olympics. 
 16.6      If the governor determines that preparation of a bid to 
 16.7   host the 2012 or future Olympics could be cost beneficial to the 
 16.8   state, the governor, in consultation with appropriate persons in 
 16.9   the public and private sector, must take steps necessary to 
 16.10  begin bid preparation. 
 16.11     Sec. 11.  [EFFECTIVE DATE.] 
 16.12     Sections 1 to 10 are effective the day following final 
 16.13  enactment.