HF 2214

Conference Committee Report - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1             CONFERENCE COMMITTEE REPORT ON H.F. NO. 2214 
  1.2                          A bill for an act 
  1.3             relating to a baseball park; providing for financing 
  1.4             of a major league baseball park; providing a site 
  1.5             selection process; authorizing state revenue bonds; 
  1.6             establishing a baseball park gift fund; authorizing a 
  1.7             state loan to the site city; requiring local 
  1.8             government body approval; establishing a sports 
  1.9             facilities fund; imposing certain obligations on the 
  1.10            major league baseball team; requiring a use agreement 
  1.11            and a guaranty from major league baseball; providing a 
  1.12            property tax exemption for the baseball park; 
  1.13            exempting sales of construction materials for the park 
  1.14            from the sales tax; requiring payment of the 
  1.15            prevailing wage rate to ballpark construction workers; 
  1.16            requiring the state executive council to select a city 
  1.17            for the site; requiring the legislative commission on 
  1.18            planning and fiscal policy to make a recommendation to 
  1.19            the council; providing an opportunity for community 
  1.20            ownership if the baseball team is sold; requiring a 
  1.21            donation from private sources as a precondition to 
  1.22            issuing bonds or loaning state money; authorizing 
  1.23            certain temporary city taxes and an admission tax if 
  1.24            approved by referendum; authorizing parking 
  1.25            surcharges; authorizing issuance of an additional 
  1.26            liquor license; authorizing a condominium; requiring 
  1.27            evaluation of an olympic bid; appropriating money; 
  1.28            amending Minnesota Statutes 2000, sections 272.02, by 
  1.29            adding a subdivision; 297A.71, by adding a 
  1.30            subdivision; proposing coding for new law in Minnesota 
  1.31            Statutes, chapter 16A. 
  1.32                                                 May 18, 2002
  1.33  The Honorable Steve Sviggum 
  1.34  Speaker of the House of Representatives
  1.36  The Honorable Don Samuelson 
  1.37  President of the Senate
  1.39     We, the undersigned conferees for H.F. No. 2214, report 
  1.40  that we have agreed upon the items in dispute and recommend as 
  1.41  follows: 
  2.1      
  2.2      That the Senate recede from its amendments and that H.F. No.
  2.3   2214 be further amended as follows: 
  2.4      Delete everything after the enacting clause and insert: 
  2.5      "Section 1.  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. 2.  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 473I.01 to 473I.10, are 
  2.30  exempt.  This subdivision expires one year after the first major 
  2.31  league baseball game is played in the baseball park. 
  2.32     Sec. 3.  Minnesota Statutes 2000, section 473.553, 
  2.33  subdivision 14, is amended to read: 
  2.34     Subd. 14.  [MEMBERSHIP CHANGE.] If the basketball and 
  2.35  hockey arena is acquired pursuant to section 473.598, and an 
  2.36  appropriation is made pursuant to section 240A.08, then the 
  3.1   number of members of the commission shall change, as follows.  
  3.2   On January 1 next following the initial appropriation pursuant 
  3.3   to section 240A.08, the commission shall consist of eight 
  3.4   members plus a chair appointed as provided in subdivision 3.  
  3.5   Six members shall be the members appointed by the Minneapolis 
  3.6   city council under subdivision 2 and subject to subdivision 5.  
  3.7   Two additional members, other than the chair, shall be appointed 
  3.8   by the governor; neither of those members shall reside in the 
  3.9   city of Minneapolis, and one of those members must reside 
  3.10  outside the metropolitan area.  If the commissioner of finance 
  3.11  determines, as provided in section 473I.11, that the commission 
  3.12  shall own the baseball park, the membership of the commission 
  3.13  will change as follows:  on January 1 next, following the 
  3.14  determination by the commissioner, the commission consists of 
  3.15  eight members plus a chair, three members appointed by the city 
  3.16  council of the municipality where the baseball park is located; 
  3.17  and six members appointed by the governor, three members from 
  3.18  the metropolitan area, and three members from outside the 
  3.19  metropolitan area.  The governor shall appoint the chair from 
  3.20  the nine members of the commission.  The term of one three of 
  3.21  the members appointed under this subdivision by the governor 
  3.22  shall end the first Monday in January 1996 2005 and the term of 
  3.23  the other member three members appointed by the governor shall 
  3.24  end the first Monday in January 1998 2006.  Thereafter, their 
  3.25  terms are as determined under subdivision 5. 
  3.26     Sec. 4.  [473.5995] [FOOTBALL STADIUM ACCOUNT.] 
  3.27     Subdivision 1.  [CREATION.] A football stadium account is 
  3.28  created in the special revenue fund in the state treasury.  On 
  3.29  July 1, 2002, the metropolitan sports facilities commission must 
  3.30  deposit $500,000 from its cash reserves in the football stadium 
  3.31  account. 
  3.32     Subd. 2.  [TRANSFER; SALE OF THE METRODOME.] Upon sale of 
  3.33  the metrodome, the metropolitan sports facilities commission 
  3.34  must transfer the net sales proceeds to the football stadium 
  3.35  account. 
  3.36     Sec. 5. [473I.01] [DEFINITIONS.] 
  4.1      Subdivision 1.  [APPLICATION.] The definitions in this 
  4.2   section apply to sections 473I.01 to 473I.13. 
  4.3      Subd. 2.  [MUNICIPALITY.] "Municipality" means a statutory 
  4.4   or home rule charter city in the metropolitan area, as defined 
  4.5   in section 473.121, subdivision 2. 
  4.6      Subd. 3.  [COMMISSION.] "Commission" means the metropolitan 
  4.7   sports facilities commission as defined in section 473.551. 
  4.8      Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
  4.9   commissioner of finance. 
  4.10     Sec. 6.  [473I.02] [SITE SELECTION FOR BASEBALL PARK.] 
  4.11     In selecting a site to be proposed to the team for the new 
  4.12  baseball park, the municipality shall consider at least the 
  4.13  following: 
  4.14     (1) the adequacy of the size of the site relative to the 
  4.15  preferred design for the baseball park; 
  4.16     (2) the adequacy of existing public infrastructure serving 
  4.17  the site, including parking and highway, road, and transit 
  4.18  access, to meet the demands created by events at the baseball 
  4.19  park in combination with other uses or events in the area that 
  4.20  create traffic, transit, or parking demands; 
  4.21     (3) the costs of any likely infrastructure improvements for 
  4.22  the facility; 
  4.23     (4) potential development advantages, including development 
  4.24  of compatible mixed use, commercial, and housing developments, 
  4.25  in the area surrounding the baseball park; 
  4.26     (5) compatibility of surrounding uses with the baseball 
  4.27  park; and 
  4.28     (6) appropriate aesthetic considerations. 
  4.29     Sec. 7.  [473I.03] [PRECONDITIONS TO ISSUING BONDS.] 
  4.30     Subdivision 1.  [MONEY AVAILABLE.] Before issuing bonds 
  4.31  under section 473I.06, the commissioner must determine that: 
  4.32     (1) $120,000,000 in cash from the team or other private 
  4.33  sources has been paid to the commissioner for deposit in a 
  4.34  construction account for leasehold improvement of the baseball 
  4.35  park; 
  4.36     (2) the municipality and the team have agreed to make 
  5.1   payments on the ballpark loan, to be credited to the baseball 
  5.2   park debt service account under section 473I.04, at the times 
  5.3   and in the amounts provided in the loan agreement, but not less 
  5.4   than $12,000,000 per year unless the commissioner of finance 
  5.5   determines otherwise; 
  5.6      (3) the revenues pledged to pay principal and interest on 
  5.7   the bonds will be sufficient to make all debt service payments 
  5.8   as they come due and make the bonds marketable; 
  5.9      (4) the bid demonstrates the financial capacity of the 
  5.10  municipality to make the annual payments under and satisfy any 
  5.11  other conditions of the loan under section 473I.05; and 
  5.12     (5) the other conditions required in this section have been 
  5.13  met. 
  5.14     Subd. 2.  [MAJOR LEAGUE BASEBALL GUARANTY.] The 
  5.15  commissioner of finance determines that the major league of 
  5.16  which the baseball team is a member and major league baseball 
  5.17  have both executed an agreement with the city that guarantees 
  5.18  the continuance of a major league franchise in the metropolitan 
  5.19  area for the greater of (1) 30 years from the date of the 
  5.20  agreement or (2) the term of the bonds under sections 473I.06 
  5.21  and 473I.11. 
  5.22     Subd. 3.  [BASEBALL ECONOMIC REFORM.] (a) The executive 
  5.23  council shall review information from major league baseball and 
  5.24  assess: 
  5.25     (1) whether major league baseball and the major league 
  5.26  baseball players' association are making a good faith effort to 
  5.27  agree upon a new economic system for major league baseball to 
  5.28  enhance the competitiveness of small market teams; and 
  5.29     (2) the prospects for adoption of changes to major league 
  5.30  baseball providing increased revenues for small market teams and 
  5.31  enhancing the viability of a new baseball park. 
  5.32     (b) The executive council shall assess whether, in its 
  5.33  opinion, there is reasonable basis for concluding that major 
  5.34  league baseball and the major league baseball players 
  5.35  association will agree to a system in the foreseeable future, 
  5.36  which, after full implementation and considering all of its 
  6.1   elements, will reduce the disparity in team revenues. 
  6.2      (c) The commissioner may issue bonds under section 473I.06 
  6.3   only after the executive council determines that there are 
  6.4   reasonable prospects for changes in the revenue sharing 
  6.5   structure of major league baseball that will provide sufficient 
  6.6   revenues for the major league baseball team to make the proposed 
  6.7   baseball park a financially viable facility for the term of the 
  6.8   bonds to be issued under sections 473I.06 and 473I.11.  The 
  6.9   executive council must make the determination within 30 days 
  6.10  after a referendum conducted under section 473I.07, subdivision 
  6.11  2, has passed, but no later than September 30, 2002.  The 
  6.12  determination of the executive council under this paragraph is 
  6.13  conclusive and is not subject to judicial review. 
  6.14     Subd. 4.  [CONSTRUCTION OF BASEBALL PARK; MAXIMUM 
  6.15  PRICE.] The municipality must have executed agreements that 
  6.16  provide for the construction of a roof-ready baseball park to be 
  6.17  owned by the municipality for a guaranteed maximum price not to 
  6.18  exceed $330,000,000, and that require performance bonds in an 
  6.19  amount at least equal to 100 percent of the guaranteed maximum 
  6.20  price to cover any costs incurred over and above the guaranteed 
  6.21  maximum price, including, but not limited to, costs incurred by 
  6.22  the municipality and loss of revenues resulting from incomplete 
  6.23  construction on the substantial completion date.  The major 
  6.24  league baseball team is responsible for and must pay all cost 
  6.25  overruns. 
  6.26     Subd. 5.  [CONSTRUCTION OF BASEBALL PARK; LABOR AND 
  6.27  MATERIALS.] The municipality must have entered into an agreement 
  6.28  with the major league baseball team that the major league 
  6.29  baseball team has the following obligations during the period of 
  6.30  construction of the baseball park: 
  6.31     (1) the payment of the prevailing wage rate as defined in 
  6.32  section 177.42 to all construction workers; 
  6.33     (2) the provision to the municipality of a signed agreement 
  6.34  between the major league baseball team and the construction 
  6.35  unions that will work on the baseball park that mandates a 
  6.36  no-strike and no-lockout period during construction of the 
  7.1   baseball park; and 
  7.2      (3) all construction materials for the baseball park 
  7.3   produced from or containing steel, so far as practicable, must 
  7.4   use steel produced in the United States from taconite produced 
  7.5   in Minnesota. 
  7.6      Subd. 6.  [SOCIALLY DISADVANTAGED PERSONS.] The major 
  7.7   league baseball team must have entered into an agreement with 
  7.8   the municipality to make all reasonable efforts to ensure that 
  7.9   businesses owned by socially disadvantaged persons are awarded 
  7.10  contracts for construction and operation of the baseball park in 
  7.11  proportion to the number of qualified businesses owned by 
  7.12  socially disadvantaged persons in the metropolitan area.  The 
  7.13  agreement must provide that the team will make all reasonable 
  7.14  efforts to ensure that employment of socially disadvantaged 
  7.15  persons for the construction or operation of the baseball park 
  7.16  will be proportionate to the number of qualified workers who are 
  7.17  socially disadvantaged persons in the metropolitan area.  For 
  7.18  the purposes of this clause, "socially disadvantaged persons" is 
  7.19  as defined in Minnesota Rules, part 1230.0150, subpart 24.  The 
  7.20  municipality must report to the legislature annually on the 
  7.21  implementation of this subdivision. 
  7.22     Subd. 7.  [USE AGREEMENT; TEAM.] The municipality must have 
  7.23  entered into a use agreement with the major league baseball team 
  7.24  that provides: 
  7.25     (1) the major league baseball team will use the baseball 
  7.26  park for all scheduled home preseason, regular season, and 
  7.27  postseason games that the major league baseball team is entitled 
  7.28  to play at home for not less than 30 years without an escape 
  7.29  clause for the major league baseball team; 
  7.30     (2) the baseball park will be available on nongame days for 
  7.31  potential use by the University of Minnesota, Minnesota state 
  7.32  colleges and universities, private colleges and universities, 
  7.33  the state high school league, the municipality for community 
  7.34  events, and the Minnesota amateur sports commission; 
  7.35     (3) the major league baseball team will ensure that a 
  7.36  portion of the tickets for its games are accessible and 
  8.1   affordable; 
  8.2      (4) the major league baseball team and the municipality 
  8.3   will cooperate in maintaining the facility as a smoke-free 
  8.4   facility; 
  8.5      (5) an American flag manufactured in the United States will 
  8.6   be publicly displayed at all baseball games and other events 
  8.7   conducted at the baseball park; 
  8.8      (6) the major league baseball team will receive all revenue 
  8.9   generated at the stadium, except as otherwise specifically 
  8.10  provided in this section; 
  8.11     (7) a listing of all revenue streams generated from use of 
  8.12  the baseball park with a specification of what revenues are 
  8.13  available to cover the major league baseball team operations, 
  8.14  what revenues accrue to the municipality, and what revenues are 
  8.15  available to repay the bonds; 
  8.16     (8) the major league baseball team is responsible for 
  8.17  repair, maintenance, and replacement of equipment or property in 
  8.18  the baseball park, including inspections by the municipality and 
  8.19  a representative of the state, as rent; 
  8.20     (9) the agreement must afford to the municipality the 
  8.21  rights and remedies at law and equity that are deemed necessary 
  8.22  and appropriate to provide reasonable assurance that the 
  8.23  baseball team and the owner will comply with the agreements 
  8.24  through the 30-year term.  The remedies must include specific 
  8.25  performance and injunctive relief and may include any other 
  8.26  equitable remedies, and any additional remedies or ownership, 
  8.27  voting, or other security arrangements the municipality 
  8.28  reasonably determines to be effective in ensuring the baseball 
  8.29  team will play the required games in the baseball park 
  8.30  throughout the 30-year term.  The legislature finds that a 
  8.31  material breach of an agreement between a municipality and a 
  8.32  professional athletic team that commits to the long-term playing 
  8.33  of major league games at public facilities causes irreparable 
  8.34  harm for which no adequate remedy at law is available and that 
  8.35  the grant of equitable relief to remedy the breach is in the 
  8.36  public interest and shall be liberally so construed; 
  9.1      (10) that transfer of any portion of ownership or equity in 
  9.2   the major league baseball team does not change any obligations, 
  9.3   responsibilities, or privileges under the agreement, this 
  9.4   section, or section 473I.07; and 
  9.5      (11) if there is a sale or transfer of ownership of the 
  9.6   major league baseball team, the owner of the team will pay to 
  9.7   the state an amount equal to the state's share of the 
  9.8   appreciated value of the team.  The state's share must be based 
  9.9   on the value of the state investment in the baseball park and 
  9.10  must be determined according to a formula included in the use 
  9.11  agreement. 
  9.12     Subd. 8.  [COMMUNITY OWNERSHIP OF TEAM.] The owner of the 
  9.13  team must attempt to reach an agreement on the sale of a 
  9.14  majority interest in the team to one or more buyers who will 
  9.15  keep the team in this state before attempting to sell the 
  9.16  majority interest to others. 
  9.17     Subd. 9.  [USE OF TEAM NAME AND LOGO.] The major league 
  9.18  baseball team must have entered into an agreement with the 
  9.19  municipality under which the municipality will obtain from the 
  9.20  team the rights to the control and use of the team name and logo 
  9.21  if the team relocates to another state.  Under the agreement, 
  9.22  the team must notify the municipality within 24 hours of signing 
  9.23  an agreement to relocate, and at midnight immediately following 
  9.24  notification, all income from existing contracts for the use of 
  9.25  the team name and logo and all team property with the team name 
  9.26  and logo, other than personal property of team members and 
  9.27  principals, will become the property of the municipality.  This 
  9.28  agreement and the requirement that it be entered into may not be 
  9.29  construed as authorizing or permitting the team to relocate 
  9.30  before the end of the lease and use agreements with the 
  9.31  municipality.  
  9.32     Subd. 10.  [COMPLIANCE WITH DISCOVERY ORDERS.] The 
  9.33  commissioner of finance determines with regard to a case in 
  9.34  Hennepin county district court, entitled Metropolitan Sports 
  9.35  Facilities Commission v. Minnesota Twins Partnership and Major 
  9.36  League Baseball, No. 0116998 (Hennepin County District Court), 
 10.1   that one of the following has occurred: 
 10.2      (1) disclosure to the metropolitan sports facilities 
 10.3   commission by the Minnesota Twins and the office of the 
 10.4   commissioner of major league baseball of all documents relating 
 10.5   to the Twins' finances, including tax records of the team and 
 10.6   its owners, deals between the commissioner and the Twins' owner, 
 10.7   contraction plans developed by team owners, and all other 
 10.8   documents covered by all applicable discovery orders issued by 
 10.9   the Hennepin county district court; 
 10.10     (2) the Hennepin county district court approves a 
 10.11  settlement agreement signed by the metropolitan sports 
 10.12  facilities commission and the Minnesota Twins; or 
 10.13     (3) the court has dismissed the case. 
 10.14     Sec. 8. [473I.04] [SPORTS FACILITIES FUND.] 
 10.15     Subdivision 1.  [CREATION.] The sports facilities fund is 
 10.16  established as a special account in the state treasury.  
 10.17     Subd. 2.  [BASEBALL PARK REVENUE BOND PROCEEDS ACCOUNT.] A 
 10.18  baseball park revenue bond proceeds account is established in 
 10.19  the sports facilities fund.  The proceeds of any bonds issued 
 10.20  under section 473I.06 must be credited to the account.  The 
 10.21  amount necessary to make the loan under section 473I.05 is 
 10.22  appropriated from the account to the commissioner.  
 10.23     Subd. 3.  [BASEBALL PARK DEBT SERVICE ACCOUNT.] (a) A 
 10.24  baseball park debt service account is established in the sports 
 10.25  facilities fund.  The assets of the account and its investment 
 10.26  earnings are pledged to and may only be used to pay principal 
 10.27  and interest on bonds issued under section 473I.06. 
 10.28     (b) The state board of investment shall contract with the 
 10.29  investment advisors specified by the team to invest money in the 
 10.30  endowment account.  The account must be invested in authorized 
 10.31  investments under section 11A.24, except (1) corporate 
 10.32  obligations described in section 11A.24, subdivision 3, 
 10.33  paragraph (b), and (2) investments described in section 11A.24, 
 10.34  subdivision 6, paragraph (a), clauses (1) to (4).  
 10.35     (c) The commissioner shall review the investment 
 10.36  performance of the account at the end of the second year after 
 11.1   the baseball park begins operations and every four years 
 11.2   thereafter.  The commissioner shall require the owner of the 
 11.3   baseball park to impose a surcharge on admissions to events at 
 11.4   the baseball park, in one-half of one percent increments, not to 
 11.5   exceed five percent, in an amount sufficient to equal the money 
 11.6   that would be in the fund, if an 8.5 percent annual rate of 
 11.7   return had been earned.  Notwithstanding the preceding sentence, 
 11.8   the commissioner shall set the required rate of return for the 
 11.9   first four years after the account is established.  If the rate 
 11.10  of return on the fund during the period exceeded 8.5 percent, 
 11.11  the commissioner may use the excess to retire or defease the 
 11.12  bonds.  In making the determination under this paragraph, the 
 11.13  commissioner must assume that the municipality has timely made 
 11.14  all payments required under the loan agreement, regardless of 
 11.15  whether the payments were made.  
 11.16     (d) In addition, the commissioner may require, as part of 
 11.17  the loan agreement, that the municipality exercise its authority 
 11.18  under section 473I.07 to provide money to the commissioner to 
 11.19  make up any deficiency that is not eliminated under paragraph 
 11.20  (c).  The municipality may recover from the team any payments 
 11.21  made under this paragraph. 
 11.22     (e) Money in the debt service account is appropriated to 
 11.23  the commissioner to pay principal and interest on bonds issued 
 11.24  under section 473I.06. 
 11.25     Sec. 9. [473I.05] [LOAN AGREEMENT.] 
 11.26     After making the determinations required by section 
 11.27  473I.03, the commissioner shall provide a loan to the 
 11.28  municipality from money in the baseball park bond proceeds 
 11.29  account, in an amount up to $330,000,000.  The proceeds of the 
 11.30  loan must be used by the municipality to acquire and prepare a 
 11.31  site for and to design, construct, furnish, and equip the 
 11.32  baseball park.  The commissioner shall specify the terms of the 
 11.33  loan agreement. 
 11.34     Sec. 10.  [473I.06] [BASEBALL PARK REVENUE BONDS.] 
 11.35     Subdivision 1.  [PURPOSES.] After making the determinations 
 11.36  required by section 473I.03, the commissioner may sell and issue 
 12.1   revenue bonds to make the loan to the municipality, to establish 
 12.2   a reserve fund or funds, and to pay the cost of issuance of the 
 12.3   bonds.  
 12.4      Subd. 2.  [AMOUNT.] The principal amount of the bonds 
 12.5   issued for the purposes specified in subdivision 1 must not 
 12.6   exceed $330,000,000.  The commissioner shall deposit an amount 
 12.7   of the proceeds equal to the contributions under section 
 12.8   473I.03, subdivision 1, clause (1), from the team and other 
 12.9   private sources, in the baseball debt service account. 
 12.10     Subd. 3.  [PROCEDURE.] The commissioner may sell and issue 
 12.11  the bonds on the terms and conditions the commissioner 
 12.12  determines to be in the best interests of the state.  The bonds 
 12.13  may be sold at public or private sale.  The commissioner may 
 12.14  enter any agreements or pledges the commissioner determines 
 12.15  necessary or useful to sell the bonds that are not inconsistent 
 12.16  with sections 473I.01 to 473I.07.  Sections 16A.672 to 16A.675 
 12.17  apply to the bonds.  The metropolitan sports facilities 
 12.18  commission shall transfer an amount, not to exceed one percent 
 12.19  of the principal amount of the bonds, from its accumulated 
 12.20  reserves to the commissioner to pay for the cost of issuance of 
 12.21  the bonds.  
 12.22     Subd. 4.  [REVENUE SOURCES.] The bonds are payable only 
 12.23  from the following sources: 
 12.24     (1) the principal and any investment earnings on the assets 
 12.25  of the debt service account; 
 12.26     (2) payments of the municipality and team under the loan 
 12.27  made by the commissioner; and 
 12.28     (3) other revenues pledged to the payment of the bonds. 
 12.29     Subd. 5.  [REFUNDING BONDS.] The commissioner may issue 
 12.30  bonds to refund outstanding bonds issued under subdivision 1, 
 12.31  including the payment of any redemption premiums on the bonds 
 12.32  and any interest accrued or to accrue to the first redemption 
 12.33  date after delivery of the refunding bonds.  The proceeds of the 
 12.34  refunding bonds may, in the discretion of the commissioner, be 
 12.35  applied to the purchases or payment at maturity of the bonds to 
 12.36  be refunded, or the redemption of the outstanding bonds on the 
 13.1   first redemption date after delivery of the refunding bonds and 
 13.2   may, until so used, be placed in escrow to be applied to the 
 13.3   purchase, retirement, or redemption.  Refunding bonds issued 
 13.4   under this subdivision must be issued and secured in the manner 
 13.5   provided by the commissioner. 
 13.6      Subd. 6.  [NOT A GENERAL OR MORAL OBLIGATION.] Bonds issued 
 13.7   under this section are not public debt, and the full faith, 
 13.8   credit, and taxing powers of the state are not pledged for their 
 13.9   payment.  The bonds may not be paid, directly in whole or part 
 13.10  from a tax of statewide application on any class of property, 
 13.11  income, transaction, or privilege.  Payment of the bonds is 
 13.12  limited to the revenues explicitly authorized to be pledged 
 13.13  under this section and section 473I.07 and the legislature 
 13.14  intends that no state money will be used to pay the bonds.  The 
 13.15  state neither makes nor has a moral obligation to pay the bonds, 
 13.16  if the pledged revenues and other legal security for them is 
 13.17  insufficient. 
 13.18     Subd. 7.  [TRUSTEE.] The commissioner may contract with and 
 13.19  appoint a trustee for bond holders.  The trustee has the powers 
 13.20  and authority vested in it by the commissioner under the bond 
 13.21  and trust indentures.  
 13.22     Subd. 8.  [PLEDGES.] Any pledge made by the commissioner is 
 13.23  valid and binding from the time the pledge is made.  The money 
 13.24  or property pledged and later received by the commissioner is 
 13.25  immediately subject to the lien of the pledge without any 
 13.26  physical delivery of the property or money or further act, and 
 13.27  the lien of any pledge is valid and binding as against all 
 13.28  parties having claims of any kind in tort, contract, or 
 13.29  otherwise against the commissioner, whether or not those parties 
 13.30  have notice of the lien or pledge.  Neither the order nor any 
 13.31  other instrument by which a pledge is created need be recorded. 
 13.32     Subd. 9.  [BONDS; PURCHASE AND CANCELLATION.] The 
 13.33  commissioner, subject to agreements with bondholders that may 
 13.34  then exist, may, out of any money available for the purpose, 
 13.35  purchase bonds of the commissioner at a price not exceeding (1) 
 13.36  if the bonds are then redeemable, the redemption price then 
 14.1   applicable plus accrued interest to the next interest payment 
 14.2   date thereon, or (2) if the bonds are not redeemable, the 
 14.3   redemption price applicable on the first date after the purchase 
 14.4   upon which the bonds become subject to redemption plus accrued 
 14.5   interest to that date. 
 14.6      Subd. 10.  [STATE PLEDGE AGAINST IMPAIRMENT OF 
 14.7   CONTRACTS.] The state pledges and agrees with the holders of any 
 14.8   bonds that the state will not limit or alter the rights vested 
 14.9   in the commissioner to fulfill the terms of any agreements made 
 14.10  with the bondholders, or in any way impair the rights and 
 14.11  remedies of the holders until the bonds, together with interest 
 14.12  on them, with interest on any unpaid installments of interest, 
 14.13  and all costs and expenses in connection with any action or 
 14.14  proceeding by or on behalf of the bondholders, are fully met and 
 14.15  discharged.  The commissioner may include this pledge and 
 14.16  agreement of the state in any agreement with the holders of 
 14.17  bonds issued under this section. 
 14.18     Sec. 11.  [473I.07] [LOCAL TAXING AUTHORITY.] 
 14.19     Subdivision 1.  [USE OF PROCEEDS.] (a) Subject to the 
 14.20  restrictions in this section, the municipality may impose one or 
 14.21  more of the taxes under this section to make the payments or 
 14.22  meet other obligations under the loan agreement under section 
 14.23  473I.05.  The taxes authorized in this section are in addition 
 14.24  to taxes authorized under other law.  The municipality may repay 
 14.25  the state ballpark loan using only revenues from the ballpark 
 14.26  and the taxes imposed under this section.  
 14.27     (b) The municipality may not use property taxes or other 
 14.28  money, other than ballpark revenues and taxes imposed under this 
 14.29  section, to pay for the cost of acquiring, improving, or 
 14.30  operating the ballpark.  The municipality may not expend more 
 14.31  than $50,000,000 for the cost of public infrastructure related 
 14.32  to the ballpark.  Public infrastructure related to the ballpark 
 14.33  means parking, street improvements, interstate highway 
 14.34  connections, sewer, water, and other utilities that are required 
 14.35  under an agreement with the major league baseball team or as 
 14.36  condition for financing of the baseball park. 
 15.1      (c) If the commissioner determines the money in the debt 
 15.2   service accounts is sufficient to pay the bonds in full, the 
 15.3   commissioner shall order a temporary or permanent reduction in 
 15.4   the taxes imposed under subdivisions 5, 6, and 7 in the order of 
 15.5   priority and as the commissioner determines appropriate. 
 15.6      Subd. 2.  [REFERENDUM.] (a) Before the municipality imposes 
 15.7   a tax under subdivision 5 or 6, the imposition of the tax must 
 15.8   be approved by the voters of the municipality at an election 
 15.9   held on a Tuesday before September 30, 2002. 
 15.10     (b) Notwithstanding any statute, charter provision, or 
 15.11  other law to the contrary, if the tax is approved in a 
 15.12  referendum under this subdivision, an ordinance enacting the tax 
 15.13  or authorizing expenditures of the proceeds of the tax is not 
 15.14  subject to another vote of the electorate by referendum, 
 15.15  initiative, charter amendment, or in any other manner. 
 15.16     Subd. 3.  [EXPIRATION; LOCAL OPTION TAXES.] When the bonds 
 15.17  issued under section 473I.06 have been defeased or retired, 
 15.18  subdivisions 4 to 7 and the taxes authorized by them expire. 
 15.19     Subd. 4.  [BASEBALL PARK ADMISSION TAX.] Notwithstanding 
 15.20  any other law and only upon the request of the commissioner 
 15.21  under section 473I.04, subdivision 3, paragraph (c), the city 
 15.22  shall impose an admission tax of up to five percent of the sale 
 15.23  price upon the granting, issuance, sale, or distribution, by any 
 15.24  private or public person, association, or corporation, of the 
 15.25  privilege of admission to activities at the baseball park.  No 
 15.26  other tax, surcharge, or governmental imposition, except the 
 15.27  taxes collected under chapter 297A, may be levied by any other 
 15.28  unit of government upon the sale or distribution. 
 15.29     The admission tax must be stated and charged separately 
 15.30  from the sales price so far as practicable and must be collected 
 15.31  by the grantor, seller, or distributor from the person 
 15.32  admitted.  The admission tax collected must be used for 
 15.33  repayment of the bonds issued under section 473I.06 or to pay 
 15.34  for improvements to the baseball park.  The tax is a debt from 
 15.35  that person to the grantor, issuer, seller, or distributor, and 
 15.36  the tax required to be collected is a debt owed by the grantor, 
 16.1   issuer, seller, or distributor to the municipality, recoverable 
 16.2   at law in the same manner as other debts.  Every person 
 16.3   granting, issuing, selling, or distributing tickets for 
 16.4   admissions to the ballpark may be required to secure a permit, 
 16.5   to file returns, to deposit security for the payment of the tax, 
 16.6   and to pay the penalties for nonpayment and interest on late 
 16.7   payments, as deemed necessary or expedient to ensure the prompt 
 16.8   and uniform collection of the tax. 
 16.9      Subd. 5.  [FOOD AND BEVERAGE TAXES.] Notwithstanding 
 16.10  section 477A.016, or any other limitation of law or charter, the 
 16.11  municipality may by ordinance impose taxes on sales of food, as 
 16.12  defined in section 297A.61, subdivision 31, and alcoholic 
 16.13  beverages, as defined in section 297G.01, not to exceed five 
 16.14  percent at a retail level on any business within the 
 16.15  municipality.  The municipality may impose this tax on all or 
 16.16  part of the municipality, as provided in the ordinance.  The 
 16.17  ordinance must provide for dedication of the taxes or fees, 
 16.18  after payment of collection and administrative expenses and 
 16.19  refunds, to payment of principal and interest on bonds issued 
 16.20  for the baseball park. 
 16.21     Subd. 6.  [LODGING TAX.] Notwithstanding section 477A.016, 
 16.22  or any other limitation of law or charter to the contrary, the 
 16.23  municipality may impose, by ordinance, a lodging tax at a rate 
 16.24  of no more than five percent on the gross receipts from the 
 16.25  furnishing for consideration of lodging as described in section 
 16.26  469.190, subdivision 1.  The municipality may impose this tax on 
 16.27  all or part of the municipality, as provided in the ordinance 
 16.28  and may provide for exempting hotels or motels based on the 
 16.29  number of rooms they have available.  The ordinance must provide 
 16.30  for dedication of the taxes and other income from the tax, after 
 16.31  payment of collection and administrative expenses and refunds, 
 16.32  to payment of the principal and interest on bonds issued for the 
 16.33  baseball park. 
 16.34     Subd. 7.  [PARKING TAX, SURCHARGE, OR BOTH.] The 
 16.35  municipality may, by ordinance, impose a parking tax or 
 16.36  surcharge or both of not less than $2 per vehicle per event at 
 17.1   the baseball park.  The parking tax and surcharge apply to 
 17.2   public and privately owned parking facilities in the area that 
 17.3   the municipality determines in its ordinance provide event 
 17.4   parking for the baseball park.  The ordinance must provide for 
 17.5   dedication of the taxes and other income from the tax, after 
 17.6   payment of collection and administrative expenses and refunds, 
 17.7   to payment of the principal and interest on bonds issued for the 
 17.8   baseball park. 
 17.9      Sec. 12.  [473I.08] [DESIGN AND CONSTRUCTION.] 
 17.10     The major league professional baseball team shall design 
 17.11  and construct the baseball park.  Before the design process is 
 17.12  complete and construction begins, the municipality and the team 
 17.13  must hold at least one public hearing on the proposed design.  
 17.14  All money paid to the municipality under section 473I.05 must be 
 17.15  managed by the municipality and made available to the team as 
 17.16  the team deems necessary for construction purposes. 
 17.17     Sec. 13.  [473I.09] [BASEBALL PARK; LIQUOR LICENSE.] 
 17.18     The city in which the baseball park is located may issue an 
 17.19  intoxicating liquor license for the premises of the baseball 
 17.20  park.  This license is in addition to the number authorized by 
 17.21  law.  All provisions of chapter 340A not inconsistent with this 
 17.22  section apply to the license authorized under this section. 
 17.23     Sec. 14.  [473I.10] [CONDOMINIUM.] 
 17.24     The municipality selected to be the location of the 
 17.25  baseball park may, by itself or together with another owner, and 
 17.26  any other public or private person or entity, as to real or 
 17.27  personal property comprising or appurtenant or ancillary to the 
 17.28  baseball park, act as a declarant and establish a condominium or 
 17.29  leasehold condominium under chapter 515A or as a common interest 
 17.30  community or leasehold common interest community under chapter 
 17.31  515B, and may grant, establish, create, or join in other or 
 17.32  related easements, agreements, and similar benefits and burdens 
 17.33  that the municipality may deem necessary or appropriate, and may 
 17.34  exercise any and all rights and privileges, and assume 
 17.35  obligations under them as a declarant, unit owner, or otherwise, 
 17.36  insofar as practical and consistent with this section.  The 
 18.1   municipality may be a member of an association and the chair, 
 18.2   any members of its governing body, and any officers and 
 18.3   employees of the municipality may serve on the board of an 
 18.4   association under chapter 515A or 515B. 
 18.5      Sec. 15.  [473I.11] [ALTERNATIVE BONDING AUTHORITY.] 
 18.6      Subdivision 1.  [COMMISSIONER DETERMINATION.] If the 
 18.7   commissioner determines that all or a portion of the bonds could 
 18.8   be issued by the municipality at a lower rate of interest than 
 18.9   the bonds under section 473I.06, the municipality that is the 
 18.10  site for the baseball park may issue a portion of the bonds 
 18.11  under this section and chapter 475.  The commissioner shall file 
 18.12  the determination, in writing, with the secretary of state and 
 18.13  the provisions of section 473.553, subdivision 14, take effect. 
 18.14     Subd. 2.  [ALTERNATIVE OWNERSHIP OF BALLPARK.] (a) If the 
 18.15  commissioner determines to authorize the municipality to issue 
 18.16  bonds under this section: 
 18.17     (1) the ownership of the baseball park must be in the 
 18.18  commission; and 
 18.19     (2) the commission has all of the powers and 
 18.20  responsibilities of the municipality under the provisions of 
 18.21  sections 473I.03; 437I.04; 473I.05; 473I.06; 473I.07, 
 18.22  subdivision 4; 473I.08; and 473I.10. 
 18.23     (b) The commission shall segregate and maintain separate 
 18.24  accounts and records of the revenue and expenditures for the 
 18.25  baseball park and may not use baseball park money for its 
 18.26  operations and costs related to other sports facilities. 
 18.27     Subd. 3.  [AUTHORIZATION REDUCTION.] The principal amount 
 18.28  of any bonds issued under this section must be deducted from the 
 18.29  principal amount of the bonds authorized under section 473I.06. 
 18.30     Subd. 4.  [TAXABILITY.] The bonds must be issued as 
 18.31  tax-exempt revenue bonds. 
 18.32     Subd. 5.  [PROCEDURE.] If the municipality issues bonds 
 18.33  under this section, the bonds must be sold, issued, and secured 
 18.34  in the manner provided in chapter 475 for bonds payable solely 
 18.35  from revenues and the municipality has the same powers and 
 18.36  duties as a municipality and its governing body in issuing bonds 
 19.1   under that chapter.  The bonds may be sold at any price and at 
 19.2   public or private sale as determined by the municipality.  The 
 19.3   bonds may be sold in one or more series.  Different series may 
 19.4   be backed by different revenue sources.  An election is not 
 19.5   required.  The municipality may enter any agreements or 
 19.6   arrangements it deems necessary or useful to issue the bonds.  
 19.7   The municipality must give the proceeds of the bonds, less the 
 19.8   cost of issuance, to the commission to be used for the purposes 
 19.9   of acquiring and constructing the ballpark. 
 19.10     Subd. 6.  [SECURITY.] The municipality may pledge to the 
 19.11  payment of and the bonds are payable from the taxes imposed by 
 19.12  the municipality under section 473I.07, except subdivision 4. 
 19.13     Sec. 16.  [473I.12] [BASEBALL PARK DISTRICT.] 
 19.14     The municipality may establish a baseball park district to 
 19.15  foster the development and continuing growth of compact, 
 19.16  pedestrian-oriented, compatible mixed uses within buildings and 
 19.17  blocks around the baseball park.  Before establishing the 
 19.18  district, the municipality must: 
 19.19     (1) give public notice of the creation and boundaries of 
 19.20  the district, including reasons that support the boundaries set 
 19.21  by the municipality; and 
 19.22     (2) hold at least one public hearing on the proposed 
 19.23  establishment of the district. 
 19.24     Sec. 17.  [473I.13] [JOINT POWERS AGREEMENT.] 
 19.25     Two or more cities may enter a joint powers agreement under 
 19.26  section 471.59 to serve as a municipality for purposes of 
 19.27  sections 473I.01 to 473I.12.  If a joint powers agreement is 
 19.28  entered for this purpose, the obligations and powers of and the 
 19.29  limitations on a municipality under sections 473I.01 to 473I.12 
 19.30  apply to each of the cities. 
 19.31     Sec. 18.  [AGREEMENT ON FOOTBALL STADIUM.] 
 19.32     Subdivision 1.  [PARTIES TO AGREEMENT.] The board of 
 19.33  regents of the University of Minnesota is requested to meet with 
 19.34  the Minnesota Vikings Football Club, Inc., and to consult with 
 19.35  the chair of the metropolitan sports facilities commission for 
 19.36  the purpose of developing an agreement relating to a football 
 20.1   stadium to be constructed on the University of Minnesota campus, 
 20.2   owned by the University of Minnesota, and used by the University 
 20.3   of Minnesota football team and the Minnesota Vikings. 
 20.4      Subd. 2.  [STADIUM PREDESIGN.] The agreement must include a 
 20.5   predesign proposal for a joint-use football stadium.  The 
 20.6   agreement must reflect the joint recommendations of the parties 
 20.7   relating to facility program, site, parking, utilities and 
 20.8   transportation requirements, environmental remediation, 
 20.9   schedule, design guidelines, project delivery method, mitigation 
 20.10  of neighborhood impacts, and project costs.  The agreement 
 20.11  should assume that legislation authorizing the financing and 
 20.12  construction of the stadium will be enacted by March 1, 2003, in 
 20.13  order to take advantage of the National Football League's 
 20.14  stadium construction program contribution. 
 20.15     Subd. 3.  [MEMORANDUM OF UNDERSTANDING.] The agreement must 
 20.16  include a memorandum of understanding addressing all material 
 20.17  issues related to the design, construction, governance, and 
 20.18  ongoing operation of a joint-use football stadium and related 
 20.19  parking structures.  The memorandum of understanding must 
 20.20  incorporate provisions recognizing the unique requirements and 
 20.21  constraints inherent in locating a football stadium on the Twin 
 20.22  Cities campus of the University of Minnesota and the obligation 
 20.23  of the University of Minnesota to assure that the stadium is 
 20.24  designed, managed, and used in a manner consistent with the 
 20.25  mission of the university. 
 20.26     Subd. 4.  [REPORT TO THE LEGISLATURE.] The agreement must 
 20.27  be presented to the majority leader and minority leader of the 
 20.28  Senate and the speaker and minority leader of the house of 
 20.29  representatives by December 1, 2002. 
 20.30     Subd. 5.  [APPROPRIATION.] Up to $500,000 is appropriated 
 20.31  on July 2, 2002, from the football stadium account created in 
 20.32  section 473.5995 to the University of Minnesota to be used, in 
 20.33  consultation with the Minnesota Vikings and the commissioner of 
 20.34  finance, to meet the cost of developing the agreement described 
 20.35  in this section. 
 20.36     Sec. 19.  [METRODOME REVENUES.] 
 21.1      The metropolitan sports facilities commission shall meet 
 21.2   with the sports teams who are tenants in its metrodome facility 
 21.3   to discuss terms and conditions of the teams' respective use 
 21.4   agreements in order to enhance the teams' revenue streams. 
 21.5      Sec. 20.  [EFFECTIVE DATE.] 
 21.6      Sections 1 to 19 are effective the day following final 
 21.7   enactment." 
 21.8      Amend the title accordingly