HF 2214

3rd 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; appropriating money; 
  1.27            amending Minnesota Statutes 2000, sections 272.02, by 
  1.28            adding a subdivision; 297A.71, by adding a 
  1.29            subdivision; proposing coding for new law in Minnesota 
  1.30            Statutes, 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.  The amounts so used are appropriated to the 
  2.2   commissioner of finance to make the payments.  In addition, any 
  2.3   available amounts in the fund may be used, as appropriated by 
  2.4   law, to provide financial assistance to construct a football 
  2.5   stadium and to make improvements to other sports facilities in 
  2.6   the state.  On June 30, 2003, the commissioner shall transfer 
  2.7   from the sports facilities fund to the general fund an amount 
  2.8   equal to the loss in net general fund tax revenues during fiscal 
  2.9   years 2002 and 2003 as a result of the sales tax exemption under 
  2.10  section 297A.71, subdivision 28, with the remainder to be 
  2.11  allocated to the baseball park gift fund in section 5, 
  2.12  subdivision 3, to be used for debt service. 
  2.13     Sec. 2.  Minnesota Statutes 2000, section 272.02, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 50.  [BASEBALL PARK.] Real or personal property 
  2.16  acquired, owned, leased, controlled, used, or occupied as a 
  2.17  baseball park by a major league professional baseball team is 
  2.18  exempt from taxation but the property is subject to special 
  2.19  assessments levied by a political subdivision under chapter 429. 
  2.20  The baseball park includes parking facilities and land necessary 
  2.21  to and part of the use of the baseball park.  A use of the 
  2.22  property in any manner different from its use as a baseball park 
  2.23  must not be considered in determining the special benefit under 
  2.24  chapter 429 received by the properties.  Notwithstanding section 
  2.25  272.01, subdivision 2, or 273.19, real or personal property on 
  2.26  the premises of the baseball park leased by the local government 
  2.27  unit that operates the baseball park to another person or entity 
  2.28  for uses directly related to the operation of the baseball park 
  2.29  is exempt from taxation regardless of the length of the lease.  
  2.30  This subdivision expires one month after repayment of the bonds 
  2.31  issued to finance the baseball park. 
  2.32     Sec. 3.  Minnesota Statutes 2000, section 297A.71, is 
  2.33  amended by adding a subdivision to read: 
  2.34     Subd. 28.  [CONSTRUCTION MATERIALS; BASEBALL 
  2.35  PARK.] Materials, supplies used or consumed in, and equipment 
  2.36  incorporated into the construction or improvement of the 
  3.1   baseball park constructed under sections 4 to 7, are exempt.  
  3.2   This subdivision expires one year after the first major league 
  3.3   baseball game is played in the baseball park. 
  3.4      Sec. 4.  [SITE SELECTION FOR BASEBALL PARK.] 
  3.5      Subdivision 1.  [DEFINITION.] (a) For purposes of sections 
  3.6   4 through 7, the following terms have the meanings given, unless 
  3.7   the context indicates otherwise. 
  3.8      (b) "City" means the statutory or home rule charter city, 
  3.9   designated by the council as the site for the baseball park. 
  3.10     (c) "Commissioner" means the commissioner of finance. 
  3.11     (d) "Council" means the executive council under Minnesota 
  3.12  Statutes, section 9.011. 
  3.13     Subd. 2.  [SITE SELECTION PROCESS.] On or before July 1, 
  3.14  2002, the council shall select a city to provide a site for the 
  3.15  new baseball park.  The required elements of the selection 
  3.16  process are: 
  3.17     (1) the council shall accept bids from any city within the 
  3.18  metropolitan area, as defined in Minnesota Statutes, section 
  3.19  473.121, subdivision 2; 
  3.20     (2) acceptable bids must provide, at a minimum, for the 
  3.21  provision of land of a site that is of adequate size for the 
  3.22  baseball park and adjacent parking facilities to be made 
  3.23  available to the team; 
  3.24     (3) the site must be in a condition appropriate for 
  3.25  development; 
  3.26     (4) the bid must specify the intent of the city to own and 
  3.27  operate the baseball park and demonstrate a reasonable capacity 
  3.28  to do so; 
  3.29     (5) the bid must demonstrate the financial capacity of the 
  3.30  city to make the annual payments under and satisfy any other 
  3.31  conditions of the loan under section 5; and 
  3.32     (6) the legislative commission on planning and fiscal 
  3.33  policy has reviewed the bids and made a recommendation to the 
  3.34  council regarding the proposed host city and site for the 
  3.35  baseball park. 
  3.36     Subd. 3.  [SELECTION CRITERIA.] In selecting a site, the 
  4.1   council shall consider, at least the following: 
  4.2      (1) the adequacy of the size of the site relative to 
  4.3   preferred design for the baseball park; 
  4.4      (2) the adequacy of existing public infrastructure serving 
  4.5   the site, including parking and highway, road, and transit 
  4.6   access to meet the demands created by events at the baseball 
  4.7   park in combination with other uses or events in the area that 
  4.8   create traffic, transit or parking demands; 
  4.9      (3) the costs of any likely infrastructure improvements for 
  4.10  the facility; 
  4.11     (4) potential development advantages including development 
  4.12  of compatible mixed use, commercial, and housing developments in 
  4.13  the area surrounding the baseball park; 
  4.14     (5) compatibility of surrounding uses with the baseball 
  4.15  park; and 
  4.16     (6) appropriate aesthetic considerations. 
  4.17     Subd. 4.  [PRE-CONDITIONS FOR SELECTION.] Before the 
  4.18  council may designate a city as the host city for the baseball 
  4.19  park with the powers granted under sections 5 to 9, the council 
  4.20  must determine that each of the following is met for the 
  4.21  proposed baseball park: 
  4.22     (1) all of the requirements of sections 4 to 7 have been 
  4.23  met by the city, the team, and major league baseball; 
  4.24     (2) the pledged revenues from the ballpark and local tax 
  4.25  revenues will be sufficient to pay the debt service on the 
  4.26  revenue bonds; 
  4.27     (3) the city has established a baseball park district to 
  4.28  foster the development and continuing growth of compact, 
  4.29  pedestrian-oriented, compatible mixed uses within buildings and 
  4.30  blocks around the baseball park; 
  4.31     (4) the requirements of subdivision 5 have been met; and 
  4.32     (5) the legislative commission on planning and fiscal 
  4.33  policy has approved the site, in its recommendation to the 
  4.34  council. 
  4.35     Subd. 5.  [COMMUNITY OWNERSHIP.] (a) The owner of the major 
  4.36  league baseball team must agree that before the owner sells a 
  5.1   majority ownership interest in the team, the owner will attempt 
  5.2   for a reasonable time to comply with the requirements of 
  5.3   paragraphs (b) and (c). 
  5.4      (b) The owner of the team must work with the governor, the 
  5.5   commissioner, and a community foundation or corporation on a 
  5.6   plan to: 
  5.7      (1) transfer by gift or sale to a foundation or corporation 
  5.8   all ownership interests in the team; 
  5.9      (2) provide for sale of shares in the team by the 
  5.10  foundation or corporation to the community, in a manner such 
  5.11  that up to 49 percent of the voting stock may be dispersed so 
  5.12  that no person owns more than five percent; and 
  5.13     (3) ensure that the franchise may not move from Minnesota 
  5.14  without approval of 75 percent of the shares of voting stock. 
  5.15     (c) The owner of the team must attempt to reach an 
  5.16  agreement on the sale of a majority interest in the team to one 
  5.17  or more Minnesota buyers before attempting to sell the majority 
  5.18  interest to others. 
  5.19     (d) If the owner of the team attempts to sell a majority 
  5.20  interest in the team, the commissioner must report to the 
  5.21  legislature at the beginning of the next legislative session on 
  5.22  efforts to work with the owner of the team to implement this 
  5.23  subdivision. 
  5.24     Sec. 5.  [REVENUE BONDS; BASEBALL PARK.] 
  5.25     Subdivision 1.  [REVENUE BOND AUTHORITY.] (a) The 
  5.26  commissioner may issue state revenue bonds in a principal amount 
  5.27  of up to $330,000,000 to make a loan to the city to finance the 
  5.28  costs of designing, acquiring, constructing, furnishing, and 
  5.29  equipping a baseball park for a major league baseball franchise, 
  5.30  to pay principal interest on the bonds, to establish a reserve 
  5.31  fund or funds, and to pay the cost of issuance of the bonds.  
  5.32  The proceeds of the bonds must be deposited in a ballpark 
  5.33  revenue bond proceeds fund in the state treasury.  The amount 
  5.34  necessary to make the loan described in this section and to make 
  5.35  other payments authorized by law from the fund are appropriated 
  5.36  from the ballpark revenue bond proceeds fund in the state 
  6.1   treasury to the commissioner to make the loan and the other 
  6.2   payments.  The commissioner may issue and sell the bonds upon 
  6.3   the terms and conditions as the commissioner determines to be in 
  6.4   the best interests of the state.  The bonds may be issued at 
  6.5   public or private sale.  The commissioner may enter any 
  6.6   agreements or pledges the commissioner determines necessary or 
  6.7   useful to sell the bonds that are not inconsistent with this 
  6.8   act.  Minnesota Statutes, sections 16A.672 to 16A.675, apply to 
  6.9   the bonds.  The bonds are payable only from the following 
  6.10  sources: 
  6.11     (1) the principal and any investment earnings on the 
  6.12  proceeds of the baseball fund under subdivision 3; 
  6.13     (2) payments of the city and team under the loan made by 
  6.14  the commissioner; and 
  6.15     (3) other revenues pledged to the payment of the bonds. 
  6.16     (b) The commissioner may issue bonds to refund outstanding 
  6.17  bonds issued under paragraph (a), including the payment of any 
  6.18  redemption premiums on the bonds and any interest accrued or to 
  6.19  accrue to the first redemption date after delivery of the 
  6.20  refunding bonds.  The proceeds of the refunding bonds may, in 
  6.21  the discretion of the commissioner, be applied to the purchases 
  6.22  or payment at maturity of the bonds to be refunded, or the 
  6.23  redemption of the outstanding bonds on the first redemption date 
  6.24  after delivery of the refunding bonds and may, until so used, be 
  6.25  placed in escrow to be applied to such purchase, retirement, or 
  6.26  redemption.  Refunding bonds issued under the provisions of this 
  6.27  paragraph must be issued and secured in the manner provided by 
  6.28  the commissioner. 
  6.29     (c) Bonds issued under this section are not public debt, 
  6.30  and the full faith, credit, and taxing powers of the state are 
  6.31  not pledged for their payment.  The bonds may not be paid, 
  6.32  directly in whole or part from a tax of statewide application on 
  6.33  any class of property, income, transaction, or privilege.  
  6.34  Payment of the bonds is limited to the revenues explicitly 
  6.35  authorized to be pledged under this act and the legislature 
  6.36  intends that no state money will be used to pay the bonds.  The 
  7.1   state neither makes nor has a moral obligation to pay the bonds, 
  7.2   if the pledged revenues and other legal security for them is 
  7.3   insufficient. 
  7.4      (d) The commissioner may contract with and appoint a 
  7.5   trustee for bond holders.  The trustee has the powers and 
  7.6   authority vested in it by the commissioner under the bond and 
  7.7   trust indentures.  
  7.8      Subd. 2.  [PRE-CONDITIONS TO ISSUING BONDS.] Before issuing 
  7.9   bonds or making a loan under this act, the commissioner must 
  7.10  determine that: 
  7.11     (1) $165,000,000 in cash has been received for the baseball 
  7.12  park gift fund under subdivision 3 from the team or other 
  7.13  private sources; 
  7.14     (2) the city and the team have agreed to make payments on 
  7.15  the ballpark loan at the times and in the amounts provided in 
  7.16  the loan agreement, but not less than $10,000,000 per year; 
  7.17     (3) the commissioner determines the revenues pledged to pay 
  7.18  the bonds from the baseball park gift fund and team and local 
  7.19  tax revenues will be sufficient to pay and make the bonds 
  7.20  marketable; and 
  7.21     (4) the conditions required under subdivision 14 and 
  7.22  section 7, subdivision 1, have been met. 
  7.23     Subd. 3.  [BASEBALL PARK GIFT FUND.] (a) A baseball park 
  7.24  gift fund is established in the state treasury.  The proceeds of 
  7.25  this fund and its investment earnings are pledged to and may 
  7.26  only be used to pay principal and interest obligations on bonds 
  7.27  issued under this section.  The money described in subdivision 2 
  7.28  that is received by the commissioner, and all income from it, as 
  7.29  well as other revenue available to the commissioner for the 
  7.30  purpose of the gift fund, must be deposited in this ballpark 
  7.31  revenue bond debt service gift fund in the state treasury.  
  7.32  Money in this gift fund necessary to make all debt service 
  7.33  payments, when due, on the state revenue bonds issued under this 
  7.34  act are appropriated to the commissioner of finance to make the 
  7.35  payments. 
  7.36     (b) The state board of investment shall contract with the 
  8.1   investment advisors specified by the team to invest money in the 
  8.2   fund.  The fund must be invested in authorized investments under 
  8.3   Minnesota Statutes, section 11A.24, except (i) corporate 
  8.4   obligations described in Minnesota Statutes, section 11A.24, 
  8.5   subdivision 3, paragraph (b) and (ii) investments described in 
  8.6   Minnesota Statutes, section 11A.24, subdivision 6, paragraph 
  8.7   (a), clauses (1) to (4).  
  8.8      (c) The commissioner shall enter an agreement with the team 
  8.9   to review the performance of investment of the fund at least 
  8.10  once every four years.  If the rate of return earned on money in 
  8.11  the fund during the period was less than 8.5 percent per year, 
  8.12  the team must pay the commissioner for deposit in the fund an 
  8.13  amount of money sufficient to equal the money that would be in 
  8.14  the fund, if an 8.5 percent annual rate of return had been 
  8.15  earned.  If the rate of return on the fund during the period 
  8.16  exceeded 8.5 percent, the commissioner may use the excess to 
  8.17  retire or defease the bonds or to pay for other improvements to 
  8.18  the baseball park. 
  8.19     (d) In addition, the commissioner may require, as part of 
  8.20  the loan agreement, that the city exercise its authority under 
  8.21  section 6 to provide funds to the commissioner to make up any 
  8.22  deficiency resulting from a default by the team on its 
  8.23  obligation under paragraph (c).  The city may recover from the 
  8.24  team or its owners, any payments made in this paragraph.  
  8.25     Subd. 4.  [LOAN AGREEMENT.] Upon satisfaction of the 
  8.26  conditions under this act, the commissioner shall provide a loan 
  8.27  to the city, in an amount up to $330,000,000, from the bond 
  8.28  proceeds fund.  The proceeds of this loan may be used for the 
  8.29  costs of designing, acquiring, constructing, furnishing, and 
  8.30  equipping the baseball park.  The commissioner shall specify the 
  8.31  terms of the loan agreement. 
  8.32     Subd. 5.  [PLEDGES.] Any pledge made by the commissioner is 
  8.33  valid and binding from the time the pledge is made.  The money 
  8.34  or property pledged and later received by the commissioner is 
  8.35  immediately subject to the lien of the pledge without any 
  8.36  physical delivery of the property or money or further act, and 
  9.1   the lien of any pledge is valid and binding as against all 
  9.2   parties having claims of any kind in tort, contract, or 
  9.3   otherwise against the commissioner, whether or not those parties 
  9.4   have notice of the lien or pledge.  Neither the order nor any 
  9.5   other instrument by which a pledge is created need be recorded. 
  9.6      Subd. 6.  [BONDS; NONLIABILITY OF INDIVIDUALS.] The 
  9.7   commissioner and the commissioner's staff and any person 
  9.8   executing the bonds are not personally liable on the bonds or 
  9.9   subject to any personal liability or accountability by reason of 
  9.10  their issuance. 
  9.11     Subd. 7.  [BONDS; PURCHASE AND CANCELLATION.] The 
  9.12  commissioner, subject to agreements with bondholders which may 
  9.13  then exist, may out of any funds available for the purpose to 
  9.14  purchase bonds of the commissioner at a price not exceeding (i) 
  9.15  if the bonds are then redeemable, the redemption price then 
  9.16  applicable plus accrued interest to the next interest payment 
  9.17  date thereon, or (ii) if the bonds are not redeemable, the 
  9.18  redemption price applicable on the first date after the purchase 
  9.19  upon which the bonds become subject to redemption plus accrued 
  9.20  interest to that date. 
  9.21     Subd. 8.  [STATE PLEDGE AGAINST IMPAIRMENT OF 
  9.22  CONTRACTS.] The state pledges and agrees with the holders of any 
  9.23  bonds that the state will not limit or alter the rights vested 
  9.24  in the commissioner to fulfill the terms of any agreements made 
  9.25  with the bondholders, or in any way impair the rights and 
  9.26  remedies of the holders until the bonds, together with interest 
  9.27  on them, with interest on any unpaid installments of interest, 
  9.28  and all costs and expenses in connection with any action or 
  9.29  proceeding by or on behalf of the bondholders, are fully met and 
  9.30  discharged.  The commissioner may include this pledge and 
  9.31  agreement of the state in any agreement with the holders of 
  9.32  bonds issued under this section. 
  9.33     Subd. 9.  [LOCAL GOVERNING BODY APPROVAL.] The governing 
  9.34  body of the city must approve by two-thirds vote a resolution 
  9.35  confirming that it will own the baseball park and agree to the 
  9.36  terms of the state loan. 
 10.1      Subd. 10.  [CONSTRUCTION OF BASEBALL PARK; MAXIMUM 
 10.2   PRICE.] The city must have executed agreements that provide for 
 10.3   the construction of a roof-ready baseball park to be owned by 
 10.4   the city for a guaranteed maximum price not to exceed 
 10.5   $330,000,000, and that requires performance bonds in an amount 
 10.6   at least equal to 100 percent of the guaranteed maximum price to 
 10.7   cover any costs incurred over and above the guaranteed maximum 
 10.8   price, including, but not limited to, costs incurred by the city 
 10.9   and loss of revenues resulting from incomplete construction on 
 10.10  the substantial completion date.  The major league baseball team 
 10.11  is responsible for and must pay all cost overruns. 
 10.12     Subd. 11.  [MANAGER.] The city must have entered into a 
 10.13  contract with a manager to operate the baseball park for the use 
 10.14  of the major league baseball team. 
 10.15     Subd. 12.  [AGREEMENT; TEAM.] The city must have entered 
 10.16  into a use agreement with the major league baseball team that 
 10.17  provides: 
 10.18     (1) the major league baseball team is responsible for and 
 10.19  must pay for all cost overruns incurred in construction of the 
 10.20  baseball park; 
 10.21     (2) the major league baseball team will use the baseball 
 10.22  park for all scheduled home preseason, regular season, and 
 10.23  postseason games that the major league baseball team is entitled 
 10.24  to play at home for not less than 30 years without an escape 
 10.25  clause for the major league baseball team; 
 10.26     (3) that transfer of any portion of ownership or equity in 
 10.27  the major league baseball team does not change any obligations, 
 10.28  responsibilities, or privileges under the agreement, this 
 10.29  section, or section 7; 
 10.30     (4) the major league baseball team will ensure that a 
 10.31  portion of the tickets for its games are accessible and 
 10.32  affordable; 
 10.33     (5) the major league baseball team will receive all revenue 
 10.34  generated at the stadium except as otherwise specifically 
 10.35  provided in this act; 
 10.36     (6) a listing of all revenue streams generated from use of 
 11.1   the baseball park with a specification of what revenues are 
 11.2   available to cover the major league baseball team operations, 
 11.3   which accrue to the city and which are available for repayment 
 11.4   of bonds; 
 11.5      (7) delineation of the responsibility for repair, 
 11.6   maintenance, and replacement of equipment or property in the 
 11.7   baseball park, including inspections by the city and a 
 11.8   representative of the state; 
 11.9      (8) the major league baseball team shall provide a letter 
 11.10  of credit in an amount that protects the public interest in the 
 11.11  event of a default by the major league baseball team or a 
 11.12  disruption in the season due to a player strike or lockout; 
 11.13     (9) the agreement must afford to the city the rights and 
 11.14  remedies at law and equity that are deemed necessary and 
 11.15  appropriate to provide reasonable assurance that the baseball 
 11.16  team and the owner will comply with the agreements through the 
 11.17  30-year term.  The remedies must include, but not be limited to, 
 11.18  specific performance and injunctive relief, and may include any 
 11.19  other equitable remedies, and any additional remedies or 
 11.20  ownership, voting, or other security arrangements the city 
 11.21  reasonably determines to be effective in ensuring the baseball 
 11.22  team will play the required games in the baseball park 
 11.23  throughout the 30-year term.  The legislature intends that a 
 11.24  material breach of an agreement between the city and 
 11.25  professional athletic teams that commit to the long-term playing 
 11.26  of major league games at public facilities is deemed to cause 
 11.27  irreparable harm for which no adequate remedy at law is 
 11.28  available and that the grant of equitable relief to remedy the 
 11.29  breach is in the public interest and shall be liberally so 
 11.30  construed; 
 11.31     (10) that the major league baseball team has the following 
 11.32  obligations during the period of construction of a baseball 
 11.33  stadium: 
 11.34     (i) the payment of the prevailing wage rate as defined in 
 11.35  Minnesota Statutes, section 177.42, to all construction workers; 
 11.36     (ii) the provision to the city of a signed agreement 
 12.1   between the major league baseball team and the construction 
 12.2   unions that will work on the new stadium that mandates a 
 12.3   no-strike and no-lockout period during construction of a 
 12.4   baseball park; 
 12.5      (iii) all construction materials for the baseball park 
 12.6   produced from or containing steel, so far as practicable, must 
 12.7   use steel produced in the United States from taconite produced 
 12.8   in Minnesota; 
 12.9      (11) if there is a sale or transfer of ownership of the 
 12.10  major league baseball team, the owner of the team shall pay to 
 12.11  the state an amount equal to the state's share of the 
 12.12  appreciated value of the team.  The state's share must be based 
 12.13  on the value of the state investment in the baseball park and 
 12.14  must be determined according to a formula included in the use 
 12.15  agreement; and 
 12.16     (12) the city may reserve all or part of the revenue from 
 12.17  the sale of personal seat licenses and naming rights to make 
 12.18  payments on the state loan. 
 12.19     Subd. 13.  [AMATEUR SPORTS.] The city must provide that the 
 12.20  baseball park will be available for use by the state high school 
 12.21  and amateur sports leagues when practicable. 
 12.22     Subd. 14.  [BASEBALL ECONOMIC REFORM.] (a) The governor 
 12.23  shall appoint a special panel consisting of three retired state 
 12.24  court judges.  The special panel shall review information from 
 12.25  major league baseball to determine if major league baseball and 
 12.26  the major league baseball players' association have agreed upon 
 12.27  a new economic system, including enhanced revenue sharing that 
 12.28  makes baseball more competitive, protects the financial interest 
 12.29  of teams with below average revenues, and enhances the viability 
 12.30  of any new baseball park.  The special panel shall provide its 
 12.31  determination to the legislative commission on planning and 
 12.32  fiscal policy. 
 12.33     (b) The panel may not make the findings under paragraph 
 12.34  (a), unless the agreement between major league baseball and the 
 12.35  major league baseball players' association is estimated to 
 12.36  result in an increase in revenue sharing among major league 
 13.1   baseball teams that is estimated, after full implementation of 
 13.2   the agreement, which may be no later than five years after the 
 13.3   date of enactment of this act, to reduce the disparity in team 
 13.4   revenues from all services so that the revenues of the team with 
 13.5   the highest revenue may be no more than 35 percent higher than 
 13.6   the revenues of the team with the lowest revenue.  The estimates 
 13.7   under this paragraph must be made by either the commissioner of 
 13.8   finance or an independent consultant retained by the 
 13.9   commissioner of finance. 
 13.10     (c) The legislative commission on planning and fiscal 
 13.11  policy shall review the determination and make its 
 13.12  recommendation to the commissioner on whether to authorize the 
 13.13  commissioner to issue bonds under this act.  The commissioner 
 13.14  may issue bonds under this act only after receiving a positive 
 13.15  recommendation from the legislative commission on planning and 
 13.16  fiscal policy with the determination that major league baseball 
 13.17  and the major league baseball players' association have agreed 
 13.18  upon a new economic system, including enhanced revenue sharing 
 13.19  that makes baseball more competitive, protects the financial 
 13.20  interests of teams with below average revenues, and enhances the 
 13.21  viability of any new baseball park. 
 13.22     Sec. 6.  [FINANCING; CONSTRUCTION.] 
 13.23     Subdivision 1.  [OWNERSHIP; TAX AUTHORITY.] The city shall 
 13.24  own the baseball park and, subject to the restrictions in this 
 13.25  section, may impose one or more of the taxes under this section 
 13.26  to make the payments or meet other obligations under the loan 
 13.27  agreement under section 5.  The city may repay the state 
 13.28  ballpark loan using only revenues from the ballpark and the 
 13.29  taxes imposed under this section.  The city may not use property 
 13.30  taxes or other moneys, other than ballpark revenues and taxes 
 13.31  imposed under this section, to pay for cost of acquiring, 
 13.32  improving, or operating the ballpark or to pay for the city's 
 13.33  cost of public infrastructure improvements on the ballpark site. 
 13.34     Subd. 2.  [BASEBALL PARK ADMISSIONS TAX.] Notwithstanding 
 13.35  any other law, the city may impose an admissions tax of up to 
 13.36  ten percent of the sale price upon the granting, issuance, 
 14.1   sales, or distribution, by any private or public person, 
 14.2   association, or corporation, of the privilege of admission to 
 14.3   activities at the baseball park.  No other tax, surcharge, or 
 14.4   governmental imposition, except the taxes collected under 
 14.5   Minnesota Statutes, chapter 297A, may be levied by any other 
 14.6   unit of government upon any such sale or distribution. 
 14.7      The admission tax must be stated and charged separately 
 14.8   from the sales price so far as practicable and must be collected 
 14.9   by the grantor, seller, or distributor from the person 
 14.10  admitted.  The admission tax collected must be used for 
 14.11  repayment of the bonds issued under section 5 or to pay for 
 14.12  improvements to the baseball park.  The tax is a debt from that 
 14.13  person to the grantor, issuer, seller, or distributor, and the 
 14.14  tax required to be collected is a debt owed by the grantor, 
 14.15  issuer, seller, or distributor to the local government unit, 
 14.16  recoverable at law in the same manner as other debts.  Every 
 14.17  person granting, issuing, selling, or distributing tickets for 
 14.18  admissions to the ballpark may be required to secure a permit, 
 14.19  to file returns, to deposit security for the payment of the tax, 
 14.20  and to pay the penalties for nonpayment and interest on late 
 14.21  payments, as deemed necessary or expedient to assure the prompt 
 14.22  and uniform collection of the tax. 
 14.23     Subd. 3.  [FOOD AND BEVERAGE TAXES.] Notwithstanding 
 14.24  Minnesota Statutes, section 477A.016, or any other limitation of 
 14.25  law or charter, and in addition to other taxes previously 
 14.26  authorized by law, the city may by ordinance impose taxes on 
 14.27  sales of food and alcoholic beverages, as defined in Minnesota 
 14.28  Statutes, section 297G.01, not to exceed five percent at a 
 14.29  retail level on any business within the city.  The ordinance 
 14.30  must provide for dedication of the taxes or fees, after payment 
 14.31  of collection and administrative expenses and refunds, to 
 14.32  payment of principal and interest on bonds issued under section 
 14.33  5. 
 14.34     Subd. 4.  [LODGING TAX.] Notwithstanding Minnesota 
 14.35  Statutes, section 477A.016, or any other limitation of law or 
 14.36  charter to the contrary, the city may impose, by ordinance, a 
 15.1   lodging tax at a rate of no more than five percent on the gross 
 15.2   receipts from the furnishing for consideration of lodging as 
 15.3   described in Minnesota Statutes, section 469.190, subdivision 
 15.4   1.  The city may impose this tax on all or part of the city, as 
 15.5   provided in the ordinance and may provide for exempting hotels 
 15.6   or motels based on the number of rooms they have available.  The 
 15.7   ordinance must provide for dedication of the taxes and other 
 15.8   income from the tax, after payment of collection and 
 15.9   administrative expenses and refunds, to payment of the principal 
 15.10  and interest on bonds issued for the baseball park. 
 15.11     Subd. 5.  [PARKING TAX, SURCHARGE, OR BOTH.] The city may, 
 15.12  by ordinance, impose a parking tax or surcharge or both of not 
 15.13  less than $2 per vehicle per event at the baseball park.  The 
 15.14  parking tax and surcharge apply to public and privately owned 
 15.15  parking facilities in the area that the city determines in its 
 15.16  ordinance provide event parking for the baseball park.  The 
 15.17  ordinance must provide for dedication of the taxes and other 
 15.18  income from the tax, after payment of collection and 
 15.19  administrative expenses and refunds, to payment of the principal 
 15.20  and interest on bonds issued for the baseball park. 
 15.21     Subd. 6.  [MAJOR LEAGUE BASEBALL GUARANTY.] Before bonds 
 15.22  are issued under section 5, with the advice of the attorney 
 15.23  general, the city must execute an agreement with the major 
 15.24  league of which the baseball team is a member and with major 
 15.25  league baseball that guarantees the continuance of a major 
 15.26  league franchise in the metropolitan area for the greater of (i) 
 15.27  30 years or (ii) the term of the bonds issued to finance the 
 15.28  baseball park. 
 15.29     Subd. 7.  [REFERENDUM.] (a) Before any city imposes a tax 
 15.30  under this section, the imposition of the tax must be approved 
 15.31  by the voters of the city at a special election held on the 
 15.32  first Tuesday in June 2002. 
 15.33     (b) Notwithstanding any statute, charter provision, or 
 15.34  other law to the contrary, if the tax is approved in a 
 15.35  referendum under this subdivision, an ordinance enacting the tax 
 15.36  is not subject to another vote of the electorate by referendum, 
 16.1   initiative, charter amendment, or in any other manner. 
 16.2      Subd. 8.  [EXPIRATION; LOCAL OPTION TAXES.] When the bonds 
 16.3   issued under section 5 have been defeased or retired, 
 16.4   subdivisions 3 to 5 and the taxes authorized by them expire. 
 16.5      Sec. 7.  [OBLIGATIONS; MAJOR LEAGUE PROFESSIONAL BASEBALL 
 16.6   TEAM.] 
 16.7      Subdivision 1.  [OBLIGATIONS PRIOR TO BOND ISSUANCE.] (a) 
 16.8   The major league professional baseball team must fully and 
 16.9   completely do its part to accomplish the requirements of 
 16.10  paragraphs (b) and (c) before the commissioner may issue bonds 
 16.11  to finance the baseball park. 
 16.12     (b) The requirements are that: 
 16.13     (1) a signed lease for not less than 30 years between the 
 16.14  city and the major league professional baseball team must be 
 16.15  completed with no escape clauses; 
 16.16     (2) the major league professional baseball team has signed 
 16.17  an agreement with the city agreeing to allow the baseball park 
 16.18  to be available on nongame days for potential use by the 
 16.19  University of Minnesota, Minnesota state colleges and 
 16.20  universities, private colleges and universities, the state high 
 16.21  school league, the city for community events, and the Minnesota 
 16.22  amateur sports commission; 
 16.23     (3) the major league of which the baseball team is a member 
 16.24  and major league baseball have both executed an agreement with 
 16.25  the city that guarantees the continuance of a major league 
 16.26  franchise in the metropolitan area for the greater of (i) 30 
 16.27  years from the date of the agreement or (ii) the term of the 
 16.28  bonds under section 5; 
 16.29     (4) the major league professional baseball team and major 
 16.30  league baseball have signed an agreement with the city to 
 16.31  cooperate in maintaining the facility as a smoke-free facility; 
 16.32  and 
 16.33     (5) the major league professional baseball team has agreed 
 16.34  to make all reasonable efforts to ensure that businesses owned 
 16.35  by socially disadvantaged persons are awarded contracts for 
 16.36  construction and operation of the baseball park in proportion to 
 17.1   the number of qualified businesses owned by socially 
 17.2   disadvantaged persons in the metropolitan area.  In addition, 
 17.3   the team has agreed to make all reasonable efforts to ensure 
 17.4   that employment of socially disadvantaged persons for the 
 17.5   construction or operation of the baseball park will be 
 17.6   proportionate to the number of qualified workers who are 
 17.7   socially disadvantaged persons in the metropolitan area.  For 
 17.8   the purposes of this clause, "socially disadvantaged persons" is 
 17.9   as defined in Minnesota Rules, part 1230.0150, subpart 24.  The 
 17.10  city must report to the legislature annually on the 
 17.11  implementation of this clause. 
 17.12     (c) The major league baseball team must sign, as a 
 17.13  condition of receiving any public assistance, a contract with 
 17.14  the city under which the city would obtain from the team the 
 17.15  rights to the control and use of the team name and logo in the 
 17.16  event that the team relocates to another state.  Under such a 
 17.17  contract, the team must notify the city within 24 hours of 
 17.18  signing an agreement to relocate, and at midnight immediately 
 17.19  following notification, all income from existing contracts for 
 17.20  the use of the team name and logo and all team property with the 
 17.21  team name and logo, other than personal property of team members 
 17.22  and principals, will become the property of the city.  This 
 17.23  agreement and the requirement that it be entered may not be 
 17.24  construed as authorizing or permitting the team to relocate 
 17.25  before the end of the lease and use agreements with the city.  
 17.26     Subd. 2.  [DESIGN AND CONSTRUCTION.] (a) The major league 
 17.27  professional baseball team shall design and construct the 
 17.28  baseball park.  Before the design process is complete and 
 17.29  construction begins, the city and the team must hold at least 
 17.30  one public hearing on the proposed design.  All funds 
 17.31  appropriated to the city under this act must be managed by the 
 17.32  city and made available to the team as the team deems necessary 
 17.33  for construction purposes. 
 17.34     (b) All construction materials for the baseball park 
 17.35  produced from or containing steel, so far as practicable, must 
 17.36  use steel produced in the United States from taconite produced 
 18.1   in Minnesota.  The city shall establish and impose on the major 
 18.2   league professional baseball team appropriate compliance 
 18.3   procedures. 
 18.4      Subd. 3.  [OBLIGATIONS DURING CONSTRUCTION.] The major 
 18.5   league professional baseball team during the period of 
 18.6   construction of a baseball park must: 
 18.7      (1) pay the prevailing wage rate as defined in Minnesota 
 18.8   Statutes, section 177.42, to all construction workers; 
 18.9      (2) provide to the city a signed agreement between the 
 18.10  major league professional baseball team and the construction 
 18.11  unions that will work on the new baseball park that mandates a 
 18.12  no-strike and no-lockout period during construction of the 
 18.13  baseball park; and 
 18.14     (3) pay any cost overruns that occur during the 
 18.15  construction period. 
 18.16     Sec. 8.  [BASEBALL PARK; LIQUOR LICENSE.] 
 18.17     The city in which the baseball park is located may issue an 
 18.18  intoxicating liquor license for the premises of the baseball 
 18.19  park.  This license is in addition to the number authorized by 
 18.20  law.  All provisions of Minnesota Statutes, chapter 340A, not 
 18.21  inconsistent with this section apply to the license authorized 
 18.22  under this section. 
 18.23     Sec. 9.  [CONDOMINIUM.] 
 18.24     The city selected to be the location of the baseball park 
 18.25  may, by itself or together with another owner, and any other 
 18.26  public or private person or entity, as to real or personal 
 18.27  property comprising or appurtenant or ancillary to the baseball 
 18.28  park, act as a declarant and establish a condominium or 
 18.29  leasehold condominium under Minnesota Statutes, chapter 515A, or 
 18.30  as a common interest community or leasehold common interest 
 18.31  community under Minnesota Statutes, chapter 515B, and may grant, 
 18.32  establish, create, or join in other or related easements, 
 18.33  agreements, and similar benefits and burdens that the city may 
 18.34  deem necessary or appropriate, and may exercise any and all 
 18.35  rights and privileges, and assume obligations under them as a 
 18.36  declarant, unit owner, or otherwise, insofar as practical and 
 19.1   consistent with this act.  The city may be a member of an 
 19.2   association and the chair, any members of its governing body, 
 19.3   and any officers and employees of the city may serve on the 
 19.4   board of an association under Minnesota Statutes, chapter 515A 
 19.5   or 515B. 
 19.6      Sec. 10.  [OLYMPIC BID; FACILITY CONSTRUCTION.] 
 19.7      The governor must evaluate:  (1) the feasibility of 
 19.8   Minnesota preparing a bid to host the 2012 or future summer 
 19.9   Olympics; and (2) the possibility that hosting the 2012 or 
 19.10  future summer Olympics may result in sources other than the 
 19.11  state or a local governmental unit constructing facilities that 
 19.12  could be used by Minnesota professional sports teams after 
 19.13  completion of the Olympics. 
 19.14     If the governor determines that preparation of a bid to 
 19.15  host the 2012 or future Olympics could be cost beneficial to the 
 19.16  state, the governor, in consultation with appropriate persons in 
 19.17  the public and private sector, must take steps necessary to 
 19.18  begin bid preparation. 
 19.19     Sec. 11.  [EFFECTIVE DATE.] 
 19.20     Except as otherwise specifically provided, this act is 
 19.21  effective the later of the day following final enactment or the 
 19.22  disclosure to the metropolitan sports facilities commission by 
 19.23  the Minnesota Twins and the office of the commissioner of Major 
 19.24  League Baseball of all documents relating to the Twins' 
 19.25  finances, including tax records of the team and its owners, 
 19.26  deals between the commissioner and the Twins' owner, contraction 
 19.27  plans developed by team owners, and all other documents covered 
 19.28  by the order issued by the Hennepin county district court on 
 19.29  February 15, 2002.