HF 2425

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state and local government operations;
providing a process for developing a new baseball
stadium; establishing a metropolitan stadium
authority; providing for the membership and powers of
the authority; authorizing the Metropolitan Council to
issue bonds; providing powers of the host communities;
proposing coding for new law in Minnesota Statutes,
chapter 473; repealing Minnesota Statutes 2004,
sections 473I.01; 473I.02; 473I.03; 473I.04; 473I.05;
473I.06; 473I.07; 473I.08; 473I.09; 473I.10; 473I.11;
473I.12; 473I.13.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [473.75] PROCESS FOR NEW STADIUMS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of this act is to
provide a process to result in the location, construction,
financing, and long-term use of a new stadium for the use of the
Minnesota Twins.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) As used in this act, the
following terms have the meanings given in this subdivision.
new text end

new text begin (b) "Host community" means a city or a county or any joint
powers entity comprised of one or more cities or counties, or
both, which is organized for the purpose of providing financial
or other support for one or more stadiums.
new text end

new text begin (c) "Public infrastructure" means all property and
facilities determined by the host community to facilitate the
use of the stadium, including, but not limited to, property and
facilities for parking, pedestrian needs, transit, skyways,
lighting, landscaping, utilities, streets, and land acquired and
prepared for private redevelopment in a manner related to the
use of the stadium.
new text end

new text begin Subd. 3. new text end

new text begin Location. new text end

new text begin (a) The stadium must be located in
the metropolitan area as defined in section 473.121, subdivision
2.
new text end

new text begin (b) A city and county may cooperate to host the stadium
under a joint powers agreement under section 471.59 or as
otherwise provided by law.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota stadium authority duties. new text end

new text begin The
Minnesota Stadium Authority is established to choose sites for
the stadium from proposals submitted by the franchise owner and
the proposed host communities. The authority may consider or
propose other arrangements for sites and terms if the authority
is not satisfied with proposals submitted by the franchise owner
and the proposed host communities. The authority's
determination of sites for the stadium is final. The authority
may enter into contracts for and take all actions necessary or
desirable to select or acquire a site, design, construct,
furnish, equip, and provide for the operation, maintenance, and
improvement of stadium facilities.
new text end

Sec. 2.

new text begin [473.751] MINNESOTA STADIUM AUTHORITY
ORGANIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Composition. new text end

new text begin (a) The Minnesota Stadium
Authority consists of:
new text end

new text begin (1) six members, appointed by the governor, four from the
following Metropolitan Council districts established by section
473.123: one from districts 1, 2, 3, and 4; one from districts
5, 6, 7, and 8; one from districts 9, 10, 11, and 12; one from
districts 13, 14, 15, and 16; one from northern Greater
Minnesota; and one from southern Greater Minnesota;
new text end

new text begin (2) one member appointed by and serving at the pleasure of
each of the following: the speaker of the house of
representatives; the majority leader of the senate; and the
minority leaders of the house of representatives and the senate;
and
new text end

new text begin (3) a chair appointed by the governor.
new text end

new text begin (b) All members appointed under paragraph (a), clauses (1)
and (3), including the chair, serve at the pleasure of the
governor.
new text end

new text begin (c) All members must be appointed no later than 30 days
after the enactment of this act.
new text end

new text begin Subd. 2. new text end

new text begin Chair. new text end

new text begin The chair shall preside at all meetings
of the commission, if present, and shall perform all other
assigned duties and functions. The commission may appoint from
among its members a vice-chair to act for the chair during the
temporary absence or disability of the chair.
new text end

new text begin Subd. 3. new text end

new text begin Successor authority. new text end

new text begin On completion of the
construction of the stadium, the authority must recommend to the
legislature and the governor a reconstituted authority or
authorities to oversee the ongoing maintenance, operation, and
improvements of the stadium. Public entities that provide
substantial financial support to the stadium construction and
operation must receive appropriate representation on any
reconstituted authority.
new text end

Sec. 3.

new text begin [473.752] POWERS OF AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin The authority has all powers
necessary or convenient to discharge the duties imposed by law,
including those specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Actions. new text end

new text begin The authority may sue and be sued, and
is a public body within the meaning of chapter 562.
new text end

new text begin Subd. 3. new text end

new text begin Acquisition of property. new text end

new text begin The authority may
acquire by lease, purchase, gift, or devise all necessary right,
title, and interest in and to real or personal property deemed
necessary to the purposes contemplated by this act.
new text end

new text begin Subd. 4. new text end

new text begin Exemption of property. new text end

new text begin Any real or personal
property acquired, owned, leased, controlled, used, or occupied
by the authority for any of the purposes of this act is declared
to be acquired, owned, leased, controlled, used, and occupied
for public, governmental, and municipal purposes, and is exempt
from ad valorem taxation by the state or any political
subdivision of the state. The properties are subject to special
assessments levied by a political subdivision for a local
improvement in amounts proportionate to and not exceeding the
special benefit received by the properties from the
improvement. No use of any of the properties in any manner
different from their use under this act at the time when the
assessment is levied may be considered in determining the
special benefit received by the properties. All assessments are
subject to final confirmation by the Metropolitan Council, whose
determination of the benefits is conclusive upon the political
subdivision levying the assessment. Notwithstanding section
272.01, subdivision 2, or 273.19, real or personal property
leased by the authority to another person for uses related to
the purposes of this act, including the operation of the stadium
facilities, is exempt from taxation regardless of the length of
the lease. Separate real and personal property used by a team
for training or corporate offices are not exempt.
new text end

new text begin Subd. 5. new text end

new text begin Facility operation. new text end

new text begin The authority may equip,
improve, operate, manage, maintain, and control the sports
facilities constructed, remodeled, or acquired under this act.
new text end

new text begin Subd. 6. new text end

new text begin Disposition of property. new text end

new text begin The authority may
sell, lease, or otherwise dispose of any real or personal
property acquired by it which is no longer required for
accomplishment of its purposes. The property must be sold in
accordance with the procedures provided by section 469.065,
insofar as practical and consistent with this act.
new text end

new text begin Subd. 7. new text end

new text begin Employees; contracts for services. new text end

new text begin (a) The
authority may employ persons and contract for services necessary
to carry out its functions.
new text end

new text begin (b) The authority may negotiate an agreement with the
Metropolitan Sports Facilities Commission that would enable
employees of the commission to provide assistance to the
authority to enable it to accomplish the purposes of this act.
The commission must cooperate to the extent feasible.
new text end

new text begin (c) The authority may employ on such terms as it deems
advisable persons or firms to provide traffic officers to direct
traffic on property under the control of the authority and on
the city streets in the general area of the property controlled
by the authority. The traffic officers are not peace officers
and do not have authority to make arrests for violations of
traffic rules.
new text end

new text begin Subd. 8. new text end

new text begin Gifts and grants. new text end

new text begin The authority may accept
gifts of money, property, or services, may apply for and accept
grants or loans of money or other property from the United
States, the state, any subdivision of the state, or any person
for any of its purposes, may enter into any agreement required
in connection therewith, and may hold, use, and dispose of such
money, property, or services according to the terms of the gift,
grant, loan, or agreement. In evaluating proposed gifts,
grants, loans, and agreements required in connection therewith,
the authority shall examine the possible short-range and
long-range impact on authority revenues and authority operating
expenditures.
new text end

new text begin Subd. 9. new text end

new text begin Research. new text end

new text begin The authority may conduct research
studies and programs, collect and analyze data, prepare reports,
maps, charts, and tables, and conduct all necessary hearings and
investigations in connection with its functions.
new text end

new text begin Subd. 10. new text end

new text begin Use agreements. new text end

new text begin The authority may enter into
agreements and may fix, alter, charge, and collect rentals,
fees, and charges to all persons for the use, occupation, and
availability of part or all of any premises, property, or
facilities under its ownership, operation, or control for
purposes that will provide athletic, educational, cultural,
commercial or other entertainment, instruction, or activity for
the citizens of the metropolitan area and visitors. Any such
use agreement may provide that the other contracting party has
exclusive use of the premises at the times agreed upon.
new text end

new text begin Subd. 11. new text end

new text begin Insurance. new text end

new text begin The authority may require any
employee to obtain and file with it an individual bond or
fidelity insurance policy. It may procure insurance in the
amounts it considers necessary against liability of the
authority or its officers and employees for personal injury or
death and property damage or destruction, with the force and
effect stated in chapter 466, and against risks of damage to or
destruction of any of its facilities, equipment, or other
property.
new text end

new text begin Subd. 12. new text end

new text begin Creating a condominium. new text end

new text begin The authority may, by
itself or together with any other entity, as to real or personal
property comprising or appurtenant or ancillary to the sports
facilities operated under this act or other law, act as a
declarant and establish a condominium or leasehold condominium
under chapter 515A, or a common interest community or leasehold
common interest community under chapter 515B, and may grant,
establish, create, or join in other or related easements,
agreements, and similar benefits and burdens that the authority
may consider necessary or appropriate, and exercise any and all
rights and privileges and assume obligations under them as a
declarant, unit owner or otherwise, insofar as practical and
consistent with this act. The authority may be a member of an
association and the chair, any commissioners and any officers
and employees of the authority may serve on the board of an
association under chapter 515A or 515B or other law.
new text end

new text begin Subd. 13. new text end

new text begin Exemption from council review. new text end

new text begin The acquisition
and betterment of sports facilities by the authority must be
conducted pursuant to this act and must not be affected by the
provisions of sections 473.165 and 473.173.
new text end

Sec. 4.

new text begin [473.753] CRITERIA AND CONDITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Binding and enforceable. new text end

new text begin In entering into
contracts and making decisions necessary to complete the stadium
process, the authority must follow and enforce the criteria and
conditions in this section.
new text end

new text begin Subd. 2. new text end

new text begin Development agreement. new text end

new text begin Following selection of a
site, the authority shall negotiate with the host community and
the team that will occupy the stadium concerning the terms and
conditions under which the host community and the team will make
contributions of funds, future revenues, interests in property
for the site and public infrastructure, the method of completing
design and construction, which may include the design-build
process, the terms of the use agreement with the team, the
integration of the stadium and related infrastructure with
surrounding development, and other matters relating to the
stadium, its operation, maintenance, and financing. Prior to
execution, the agreement must be reviewed and approved by the
commissioner of finance and the Metropolitan Council as being
consistent with the requirements of this act. Following
execution of the agreement, the authority shall request that the
Metropolitan Council issue bonds under section 473.754 and shall
proceed to carry out the terms of the agreement and its
obligations under this act. In the event the authority does not
reach agreement with the host community and team or if for
environmental or other reasons the chosen site is determined by
the authority to be unsuitable, the authority may select another
site and commence the process again. The authority shall hold
public hearings with respect to site selection and the agreement
with the host community and team.
new text end

new text begin Subd. 3. new text end

new text begin Total public investment toward project
costs. new text end

new text begin The authority must set a maximum total public investment
toward project costs for each stadium, including the host
community's revenue contributions.
new text end

new text begin Subd. 4. new text end

new text begin Team and fan contributions. new text end

new text begin (a) The authority
must set the amount of anticipated contributions from the team
towards the total cost for the stadium. Team contributions may
include, but are not limited to, initial cash contributions,
guaranteed annual payments, assignments of naming rights and
permanent seat licenses, and payments of operating and
maintenance expenses for the team's stadium. The authority may
attempt to structure the team's investment to maximize benefits
both to the public and to the team. In addition to any other
team contribution, the team must assume and pay when due all
cost overruns for its stadium.
new text end

new text begin (b) The authority may negotiate to receive, for transfer to
the Metropolitan Council, fan contributions imposed, assessed,
and collected by the authority and the host communities for
deposit in the stadiums' debt service account. Fan
contributions may include ticket taxes, parking surcharges,
personal seat licenses, private placement bonds, sports cable
television surcharges, commemorative stadium stock or bricks,
team license plates, and similar items.
new text end

new text begin (c) The team and fan contributions must be deposited in the
state treasury and are appropriated to the Metropolitan Council
for payment of principal and interest on the revenue bonds
issued under this act and chapter 475.
new text end

new text begin Subd. 5. new text end

new text begin Site selection criteria. new text end

new text begin In selecting the site
for the stadium, the authority must consider factors including:
new text end

new text begin (1) tax and other revenues that the host community will
make available to finance the stadium; and
new text end

new text begin (2) the cost of necessary public infrastructure
improvements related to transportation and other services.
new text end

new text begin The authority may consider colocation of the stadium constructed
under this act with existing sports facilities.
new text end

new text begin Subd. 6. new text end

new text begin Architect selection. new text end

new text begin The authority must
consider retaining an internationally known architect to design
the stadium to be constructed under this act, providing that it
is feasible under the expenditure limits imposed in this act.
new text end

new text begin Subd. 7. new text end

new text begin Sustainable building guidelines. new text end

new text begin The
construction process used for a stadium constructed under this
act must, to the extent feasible, follow sustainable building
guidelines established under section 16B.325.
new text end

new text begin Subd. 8. new text end

new text begin Reserve for capital improvements. new text end

new text begin The authority
must require that a reserve fund for capital improvements to the
stadium be set up and must negotiate with the team and the host
community's government in order to determine the amount, manner,
and terms of the team's and the host community's contributions
to the fund.
new text end

new text begin Subd. 9. new text end

new text begin Use agreements. new text end

new text begin The authority must negotiate a
long-term use agreement with the team for its use of the
stadium. The team must schedule and play all regular season and
postseason home games at the stadium. Preseason games may also
be scheduled and played at the stadium. The use agreements must
be for a term of at least 30 years. The use agreements must
include terms for default, termination, and breach of the
agreement. The use agreements must require specific performance
and must not include escape clauses or buyout provisions.
new text end

new text begin Subd. 10. new text end

new text begin Guarantee of payment of all obligations. new text end

new text begin The
authority must ensure that a guarantee of payment of each
obligation due under the use agreement is in place at the time
of execution of the obligation in a form satisfactory to the
authority. The guarantee may be in the form of a letter of
credit, personal guarantees, or other surety as determined by
the authority.
new text end

new text begin Subd. 11. new text end

new text begin League agreement. new text end

new text begin The authority must execute
an agreement with professional major league baseball that
guarantees the continuance of the franchise in the metropolitan
area for the period of the agreements referred to in subdivision
8.
new text end

new text begin Subd. 12. new text end

new text begin Enforceable financial commitments. new text end

new text begin The
authority must determine before construction begins that all
public and private funding sources for construction and
operation of the stadium are committed in writing and
enforceable. The committed funds must be adequate to site,
design, construct, furnish, equip, and service the facilities'
debt, as well as to pay for the ongoing operation and
maintenance of the baseball facilities.
new text end

new text begin Subd. 13. new text end

new text begin Community ownership option. new text end

new text begin (a) The lease or
use agreement for the baseball facility must provide that if the
owner of the baseball franchise seeks to sell the franchise
during the term of the agreement, the franchise must first be
offered for sale to the entity formed in compliance with
paragraph (b). The offer to sell the franchise to this entity
must remain open for at least one year. The amounts that would
otherwise be returned to the public under subdivision 12 may be
used by an entity created under paragraph (b) to offset the cost
of acquiring the baseball franchise.
new text end

new text begin (b) The governor and the Metropolitan Sports Facilities
Commission must attempt to facilitate the formation of a
corporation to acquire the baseball franchise and to identify an
individual private managing owner of the corporation. The
corporation formed to acquire the franchise shall have a capital
structure in compliance with all of the following provisions:
new text end

new text begin (1) there may be two classes of capital stock: common
stock and preferred stock. Both classes of stock must give
holders voting rights with respect to any relocation or
contraction of the franchise;
new text end

new text begin (2) the private managing owner must own no less than 25
percent and no more than 35 percent of the common stock. For
purposes of this restriction, shares of common stock owned by
the private managing owner include shares of common stock owned
by any related taxpayer as defined in section 1313(c) of the
Internal Revenue Code of 1986, as amended. Other than the
rights of all other holders of common stock and preferred stock
with respect to relocation of the franchise or voluntary
contraction, the private managing owner must control all aspects
of the operation of the corporation;
new text end

new text begin (3) other than the private managing owner, no individual or
entity may own more than five percent of the common stock of the
corporation;
new text end

new text begin (4) at least 50 percent of the ownership of the common
stock must be sold to members of the general public in a general
solicitation and no person or entity must own more than one
percent of common stock of the corporation; and
new text end

new text begin (5) the articles of incorporation, bylaws, and other
governing documents must provide that the franchise may not move
outside of the state or agree to voluntary contraction without
approval of at least 75 percent of the shares of common stock
and at least 75 percent of the shares of preferred stock.
Notwithstanding any law to the contrary, these 75 percent
approval requirements shall not be amended by the shareholders
or by any other means.
new text end

new text begin (c) Except as specifically provided by this act, no state
agency may spend money from any state fund for the purpose of
generating revenue under this subdivision or for the purpose of
providing operating support or defraying operating losses of a
professional baseball franchise.
new text end

new text begin Subd. 14. new text end

new text begin Environmental requirements. new text end

new text begin The authority must
ensure compliance with all environmental requirements imposed by
regulatory agencies for the stadium, site, and structure.
new text end

new text begin Subd. 15. new text end

new text begin Public infrastructure. new text end

new text begin The authority must
ensure that all necessary and reasonably appropriate public
infrastructure is financed and constructed by the time of
completion of the baseball facilities.
new text end

new text begin Subd. 16. new text end

new text begin Price, completion date, performance, payment
bonds. new text end

new text begin Before construction begins for the stadium, the
authority must have executed contracts certifying construction
price and completion date that include performance and payment
bonds that cover any costs over the certified price for the
facility. All contracts related to construction of the stadium
must require payment of the prevailing wage rate as defined in
section 177.42 to all construction workers.
new text end

new text begin Subd. 17. new text end

new text begin Public share of value added by stadium upon
sale. new text end

new text begin The authority must include a provision in the use
agreement that provides that if the franchise is sold during the
period beginning January 1, 2006, and ending 20 years after the
date the stadium is initially occupied by the team, a portion of
the sale price must be paid to the Metropolitan Council for
deposit in a reserve fund for early retirement of debt related
to the stadium. If the team is sold at any time between June 1,
2006, and the date that is five years after the team's initial
occupancy of the stadium, the amount to be paid under this
subdivision is 15 percent of the total value of all compensation
paid to purchase the team. For each 12-month period after that
date before the team is sold, the 15-percent factor is reduced
by one percentage point.
new text end

new text begin Subd. 18. new text end

new text begin Finance commissioner approval. new text end

new text begin The
commissioner of finance must approve the financing documents and
the use agreement before they are final.
new text end

new text begin Subd. 19. new text end

new text begin Use for amateur sports. new text end

new text begin The authority must
ensure that the use agreements for the stadium provide for a
reasonable amount of use for amateur sports.
new text end

new text begin Subd. 20. new text end

new text begin Affordable access. new text end

new text begin The authority must ensure
that the use agreements provide for affordable access to the
professional sporting events held in the facilities.
new text end

new text begin Subd. 21. new text end

new text begin Use of bond proceeds. new text end

new text begin The authority must
ensure and confirm to the Metropolitan Council that all bond
proceeds from bonds authorized by this act must be used to site,
design, construct, or furnish the facilities.
new text end

new text begin Subd. 22. new text end

new text begin No strikes. new text end

new text begin The authority must negotiate an
agreement to prevent strikes that would halt, delay, or impede
construction of the baseball facilities.
new text end

Sec. 5.

new text begin [473.754] SECURITY.
new text end

new text begin Subdivision 1. new text end

new text begin Bonds. new text end

new text begin The Metropolitan Council, on
behalf of the Minnesota Stadium Authority, may by resolution
authorize the sale and issuance of its bonds for any or all of
the following purposes:
new text end

new text begin (1) to provide funds to predesign, design, construct,
furnish, equip, and otherwise better the sports facility owned
or to be owned by the authority pursuant to this act;
new text end

new text begin (2) to refund bonds issued hereunder; and
new text end

new text begin (3) to fund judgments entered by any court against the
authority or against the council in matters relating to the
authority's functions related to the sports facilities.
new text end

new text begin Subd. 2. new text end

new text begin Procedure. new text end

new text begin The bonds shall be sold, issued, and
secured in the manner provided in chapter 475, for bonds payable
solely from revenues, except as otherwise provided in this act,
and the council shall have the same powers and duties as a
municipality and its governing body in issuing bonds under that
chapter. The bonds may be sold at any price and at public or
private sale as determined by the council. They shall be
payable solely from tax and other revenues referred to in this
act. The bonds shall not be a general obligation or debt of the
council or of the authority, and shall not be included in the
net debt of any city, county, or other subdivision of the state
for the purpose of any net debt limitation. No election shall
be required.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin The principal amount of the bonds
issued pursuant to subdivision 1, clause (1), shall not exceed
the amounts authorized in this subdivision. The principal
amount of bonds issued pursuant to subdivision 1, clause (1),
shall be limited to $........ The council shall issue its bonds
and construction of sports facilities may commence when the
council has made the following determinations:
new text end

new text begin (a) the authority has executed long-term use agreements
with the team for its use of the stadium, as provided in section
473.753, subdivision 9;
new text end

new text begin (b) the proceeds of bonds provided for in this subdivision
will be sufficient, together with other capital funds that may
be available to the authority for expenditures on the sports
facilities, to carry out the projects for which the proceeds
were intended as proposed by the authority, including the
appropriate professional fees and charges but excluding, except
as otherwise provided in this subdivision, the acquisition,
clearance, relocation, and legal costs referred to in paragraphs
(c) and (d);
new text end

new text begin (c) the authority has acquired, without cost to the
authority or the council except as provided in this subdivision,
title to all real property including all easements, air rights,
and other appurtenances needed for the construction and
operation of the stadium facility or has received a grant of
funds or has entered into agreements sufficient in the judgment
of the council to assure the receipt of funds, at the time and
in the amount required, to make any payment upon which the
authority's acquisition of title and possession of the real
property is conditioned;
new text end

new text begin (d) the authority has received a grant of funds or entered
into agreements sufficient in the judgment of the council to
assure the receipt of funds, at the time and in the amount
required, to pay all costs, except as provided in this
subdivision, of clearing the real property needed for the
construction and operation of all sports facilities, railroad
tracks, and other structures, including, without limitation, all
relocation costs, all utility relocation costs, and all legal
costs;
new text end

new text begin (e) the authority has executed agreements to prevent
strikes that would halt, delay, or impede construction of the
baseball facility;
new text end

new text begin (f) the authority has executed agreements that will provide
for the construction of the sports facility for a certified
construction price and completion date and which include
performance bonds in an amount at least equal to 100 percent of
the certified price to cover any costs that may be incurred over
and above the certified price, including but not limited to
costs incurred by the authority or loss of revenues resulting
from incomplete construction on the completion date;
new text end

new text begin (g) the anticipated revenue from the operation of the
sports facility plus any additional available revenue of the
authority will be an amount sufficient to pay when due all debt
service plus all administration, operating, and maintenance
expenses; and
new text end

new text begin (h) the validity of any bonds issued under subdivision 1,
clause (1), and the obligations of the council and authority
related to them, shall not be conditioned upon or impaired by
the council's determinations made pursuant to this subdivision.
For purposes of issuing the bonds the determinations made by the
council shall be deemed conclusive, and the council shall be and
remain obligated for the security and payment of the bonds
irrespective of determinations that may be erroneous,
inaccurate, or otherwise mistaken.
new text end

new text begin Subd. 4. new text end

new text begin Security. new text end

new text begin To the extent and in the manner
provided in this act, the taxes described in this act, the tax
and other revenues of the authority described in this act, and
any other revenues of the authority attributable to the sports
facility, including the team's and host community's
contributions, shall be and remain pledged and appropriated to
the authority or to the Metropolitan Council, as appropriate for
the payment of all necessary and reasonable expenses of the
operation, administration, maintenance, and debt service of the
sports facility until all bonds and certificates issued pursuant
to this section are fully paid or discharged in accordance with
law. Bonds issued pursuant to this section may be secured by a
bond resolution, or by a trust indenture entered into by the
council with a corporate trustee within or outside the state,
which shall define the tax, team, and fan contributions, and
other sports facility revenues pledged for the payment and
security of the bonds. The pledge shall be a valid charge on
the tax and other revenues referred to in this act from the date
when bonds are first issued or secured under the resolution or
indenture and shall secure the payment of principal and interest
and redemption premiums when due and the maintenance at all
times of a reserve securing such payments. No mortgage of or
security interest in any tangible real or personal property
shall be granted to the bondholders or the trustee, but they
shall have a valid security interest in all tax and other
revenues received and accounts receivable by the authority or
council hereunder, as against the claims of all other persons in
tort, contract, or otherwise, irrespective of whether such
parties have notice thereof, and without possession or filing as
provided in the Uniform Commercial Code or any other law. In
the bond resolution or trust indenture the council may make such
covenants, which shall be binding upon the authority, as are
determined to be usual and reasonably necessary for the
protection of the bondholders. No pledge, mortgage, covenant,
or agreement securing bonds may be impaired, revoked, or amended
by law or by action of the council, authority, site city, or
county, except in accordance with the terms of the resolution or
indenture under which the bonds are issued, until the
obligations of the council thereunder are fully discharged.
new text end

new text begin Subd. 5. new text end

new text begin Conditional arbitraged endowment account. new text end

new text begin (a)
If, as a part of a negotiated agreement with a team and its host
local community, the option to use an arbitrage model to raise
revenue is agreed to under this act, the authority, with the
approval of the commissioner of finance may issue up to $.......
of revenue bonds for this purpose. The proceeds of the bonds
must be deposited in an endowment account to be invested as
provided in paragraphs (b) and (c) after the amount necessary to
pay when due the debt service on the bonds issued under this
section is deposited in a debt service account. The balance on
hand in the endowment account after all the bonds issued under
this section have been retired or defeased may be used for
retiring of the debt incurred for stadium purposes under this
act, for stadium improvements, or for other stadium-related
purposes as agreed to by the parties. Other revenue from gifts
or grants for those purposes, or as otherwise authorized by law,
may be deposited in the endowment fund for investment and
disposition as provided in this section.
new text end

new text begin (b) The State Board of Investment shall contract with the
investment advisors specified by the team to invest money in the
endowment account. The account must be invested in authorized
investments under section 11A.24, except (1) corporate
obligations described in section 11A.24, subdivision 3,
paragraph (b), and (2) investments described in section 11A.24,
subdivision 6, paragraph (a), clauses (1) to (4).
new text end

new text begin (c) The commissioner of finance shall review the investment
performance of the account at the end of the second year after
each stadium begins operations and every four years thereafter.
The commissioner shall require the authority as owner of the
stadium to impose a surcharge on admissions to events at the
stadium in one-half of one percent increments, not to exceed
five percent, in an amount sufficient to equal the money that
would be in the fund, if an 8.5 percent annual rate of return
had been earned. Notwithstanding the preceding sentence, the
commissioner shall set the required rate of return for the first
four years after the account is established. If the rate of
return on the fund during the period exceeded 8.5 percent, the
commissioner may use the excess to retire or defease the
Metropolitan Council's bonds for the stadium issued as
authorized in this act.
new text end

new text begin Subd. 6. new text end

new text begin No full faith and credit. new text end

new text begin Any bonds or other
obligations issued by the council under this act are not public
debt of the state, and the full faith and credit and taxing
powers of the state are not pledged for their payment or of any
payments that the state agrees to make under this act.
new text end

new text begin Subd. 7. new text end

new text begin Taxability of interest on bonds. new text end

new text begin The bonds
authorized by this act may be issued whether or not the interest
to be paid on them is gross income for federal tax purposes,
provided that the authority must make an effort to arrange the
financing for the project in a manner that would allow the
interest to be tax-exempt to the greatest extent practicable.
new text end

Sec. 6.

new text begin [473.755] HOST COMMUNITY POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin If the host community is
authorized in the development agreement to operate and maintain,
or to manage the operation and maintenance of a stadium, or to
acquire the land for the stadium, the host community shall have
the powers necessary to carry out those duties, including,
without limitation, those enumerated in section 473.752.
new text end

new text begin Subd. 2. new text end

new text begin Local development authorities. new text end

new text begin If the host
community deems it necessary to carry out its duties under the
development agreement, it may create a housing and redevelopment
authority under sections 469.001 to 469.047, a community
development agency, or an economic development authority under
sections 469.090 to 469.1082. If such authorities exist in the
host community prior to completion of the development agreement,
the host community may request the participation of one or more
authorities in implementing the development agreement.
new text end

Sec. 7.

new text begin [473.756] NEGOTIATION DEADLINE.
new text end

new text begin The authority to negotiate and enter into agreements with
the teams and host communities under this act expires December
31, 2005.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 473I.01; 473I.02;
473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09;
473I.10; 473I.11; 473I.12; and 473I.13, are repealed.
new text end