HF 2480

5th Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to a ballpark for major league baseball; providing for the financing,
construction, operation, and maintenance of the ballpark and related facilities;
establishing the Minnesota Ballpark Authority; providing powers and duties
of the authority; providing a community ownership option; authorizing
Hennepin County to issue bonds and to contribute to ballpark costs and to
engage in ballpark and related activities; authorizing local sales and use taxes
and revenues; exempting Minnesota State High School League events from
sales taxes; requiring the Minnesota State High School League to transfer
tax savings to a foundation to promote extracurricular activities; exempting
building materials used for certain local government projects from certain taxes;
amending Minnesota Statutes 2004, sections 297A.70, subdivision 11; 297A.71,
by adding subdivisions; Minnesota Statutes 2005 Supplement, section 10A.01,
subdivision 35; 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.

Minnesota Statutes 2005 Supplement, section 10A.01, subdivision 35,
is amended to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or
attorney in the Office of Senate Counsel and Research or House Research;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or referee in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Minnesota Technology, Inc.; deleted text begin or
deleted text end

(17) member of the board of directors or executive director of the Minnesota State
High School League new text begin ; or
new text end

new text begin (18) member of the Minnesota Ballpark Authority established in section 7 new text end .

Sec. 2.

Minnesota Statutes 2004, section 297A.70, subdivision 11, is amended to read:

Subd. 11.

School tickets or admissions.

Tickets or admissions to regular season
school games, events, and activities new text begin , and to games, events, and activities sponsored by the
Minnesota State High School League under chapter 128C, new text end are exempt. For purposes of
this subdivision, "school" has the meaning given it in section 120A.22, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales after June 30, 2006.
new text end

Sec. 3.

Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Building materials; exemption. new text end

new text begin Materials and supplies used or
consumed in, and equipment incorporated into, the construction or improvement of the
ballpark and public infrastructure constructed pursuant to sections 6 to 15 are exempt.
This subdivision expires one year after the date that the first major league baseball game
is played in the ballpark for materials, supplies, and equipment used in the ballpark, and
five years after the issuance of the first bonds under section 9 for materials, supplies, and
equipment used in the public infrastructure.
new text end

Sec. 4.

Minnesota Statutes 2004, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 38. new text end

new text begin Local government; building materials exemption. new text end

new text begin Materials and
supplies used or consumed in, and equipment incorporated into the construction or
improvement of a building or other capital project by a local government when the
building or project will be for public purposes is exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases made after June 30,
2009.
new text end

Sec. 5. new text begin HIGH SCHOOL LEAGUE; FUNDS TRANSFER.
new text end

new text begin Beginning July 1, 2007, the Minnesota State High School League shall annually
determine the sales tax savings attributable to Minnesota Statutes, section 297A.70,
subdivision 11, and annually transfer that amount to a nonprofit charitable foundation
created for the purpose of promoting high school extracurricular activities. The funds must
be used by the foundation to make grants to fund, assist, recognize, or promote high school
students' participation in extracurricular activities. This section expires June 30, 2017.
new text end

Sec. 6. new text begin CONSTRUCTION AND FINANCING OF MAJOR LEAGUE
BALLPARK.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose; findings. new text end

new text begin The purpose of this act is to provide for the
construction, financing, and long-term use of a ballpark primarily as a venue for major
league baseball. It is hereby found and declared that the expenditure of public funds for
this purpose is necessary and serves a public purpose. It is further found and declared
that any provision in a lease or use agreement with a major league team, that requires
the team to play its home games in such a ballpark for the duration of the lease or use
agreement, serves a unique public purpose for which the remedies of specific performance
and injunctive relief are essential to its enforcement. It is further found and declared
that government assistance to facilitate the presence of major league baseball provides
to Hennepin County, the state of Minnesota, and its citizens highly valued intangible
benefits that are virtually impossible to quantify and, therefore, not recoverable even if
the government receives monetary damages in the event of a team's breach of contract.
Minnesota courts are, therefore, charged with protecting those benefits through the use
of specific performance and injunctive relief as provided herein and in the lease and
use agreements.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin As used in this act, the following terms have the meanings
given in this subdivision:
new text end

new text begin (a) "Authority" means the Minnesota Ballpark Authority established under section 7.
new text end

new text begin (b) "Ballpark" means the stadium suitable for major league baseball to be constructed
and financed under this act.
new text end

new text begin (c) "Ballpark costs" means, unless the context otherwise indicates, the cost of
designing, constructing, and equipping a ballpark suitable for major league baseball.
"Ballpark costs" excludes the cost of land acquisition, site improvements, utilities, site
demolition, environmental remediation, railroad crash wall, site furnishings, landscaping,
railroad right-of-way development, district energy, site graphics and artwork and other
site improvements identified by the authority, public infrastructure, capital improvement
reserves, bond reserves, capitalized interest, and financing costs.
new text end

new text begin (d) "County" means Hennepin County.
new text end

new text begin (e) "Development area" means the area in the city of Minneapolis bounded
by marked Interstate Highway 394, vacated Holden Street, the Burlington Northern
right-of-way, Seventh Street North, Sixth Avenue North, Fifth Street North, the Burlington
Northern right-of-way, and the Interstate Highway 94 exit ramp.
new text end

new text begin (f) "Public infrastructure" means all property, facilities, and improvements
determined by the authority or the county to facilitate the development and use of
the ballpark, including but not limited to property and improvements for drainage,
environmental remediation, parking, roadways, walkways, skyways, pedestrian bridges,
bicycle paths, and transit improvements to facilitate public access to the ballpark, lighting,
landscaping, utilities, streets, and streetscapes.
new text end

new text begin (g) "Streetscape" means improvements to streets and sidewalks or other public
right-of-way for the purpose of enhancing the movement, safety, convenience, or
enjoyment of ballpark patrons and other pedestrians, including decorative lighting and
surfaces, plantings, display and exhibit space, adornments, seating, and transit and bus
shelters, which are designated as streetscape by the county.
new text end

new text begin (h) "Team" means the owner and operator of the baseball team currently known
as the Minnesota Twins or any team owned and operated by someone who purchases
or otherwise takes ownership or control of or reconstitutes the baseball team currently
known as the Minnesota Twins.
new text end

new text begin Subd. 3. new text end

new text begin Location. new text end

new text begin The ballpark must be located in the city of Minneapolis at a
site within the development area.
new text end

new text begin Subd. 4. new text end

new text begin Property tax exemption; special assessments. new text end

new text begin Any real or personal
property acquired, owned, leased, controlled, used, or occupied by the authority or county
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; provided that
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 possible use of any of the properties
in any manner different from their use under this act at the time may be considered in
determining the special benefit received by the properties. Notwithstanding Minnesota
Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
lease or use agreement between the authority or county and another person for uses related
to the purposes of this act, including the operation of the ballpark and related parking
facilities, is exempt from taxation regardless of the length of the lease or use agreement.
This subdivision, insofar as it provides an exemption or special treatment, does not apply
to any real property that is leased for residential, business, or commercial development or
other purposes different from those contemplated in this act.
new text end

new text begin Subd. 5. new text end

new text begin Employees and vendors. new text end

new text begin (a) The Minnesota Ballpark Authority shall
make good faith efforts to have entry-level middle management and upper management
staffed by minority and female employees. The authority shall also make best efforts to
employ women and members of minority communities. The authority shall make good
faith efforts to utilize minority and female-owned businesses in Hennepin County. Best
efforts shall be made to use vendors of goods and services provided by minority and
female-owned businesses from Hennepin County.
new text end

new text begin (b) The authority shall contract with an employment assistance firm, preferably
minority owned, to create an employment program to recruit, hire, and retain minorities
for the stadium facility. The authority shall hold a job fair and recruit and advertise at
Minneapolis Urban League, Sabathani, American Indian OIC, Youthbuild organizations,
and other such organizations.
new text end

new text begin (c) The authority shall report the efforts made in paragraphs (a) and (b) to the
attorney general.
new text end

Sec. 7. new text begin MINNESOTA BALLPARK AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin To achieve the purposes of this act, the Minnesota
Ballpark Authority is established as a public body, corporate and politic, and political
subdivision of the state. The authority is not a joint powers entity or an agency or
instrumentality of the county.
new text end

new text begin Subd. 2. new text end

new text begin Composition. new text end

new text begin (a) The Minnesota Ballpark Authority shall be governed
by a commission consisting of:
new text end

new text begin (1) two members appointed by the governor;
new text end

new text begin (2) two members, including the chair, appointed by the county board; and
new text end

new text begin (3) one member appointed by the governing body of the city of Minneapolis.
new text end

new text begin (b) All members appointed under paragraph (a), clause (1), serve at the pleasure of
the governor. All members appointed under paragraph (a), clause (2), serve at the pleasure
of the county board. The member appointed under paragraph (a), clause (3), serves at the
pleasure of the governing body of the city of Minneapolis.
new text end

new text begin (c) Compensation of members appointed under paragraph (a) is governed by
Minnesota Statutes, section 15.0575.
new text end

new text begin (d) One member appointed under paragraph (a), clause (1), must be a resident of
a county other than Hennepin. All other members appointed under paragraph (a) must
be residents of Hennepin County.
new text end

new text begin (e) No member of the Minnesota Ballpark Authority may have served as an elected
official of the city of Minneapolis or Hennepin County for a period of two years prior
to appointment to the authority.
new text end

new text begin (f) The legislature intends that the ballpark be constructed to be operational for
the team and the public no later than the opening of the 2010 season. Accordingly, the
appointing authorities must make their appointments to the authority within 30 days
of enactment of this act, and if the governing bodies of the city of Minneapolis or the
county should fail to do so, the governor may appoint an interim member to serve until the
authorized appointment is made. The first meeting of the members shall take place at the
direction of the chair within 45 days of enactment of this act. Further, the authority must
proceed with due speed in all of its official organizing activities and in making decisions
with respect to the development agreement and lease or use agreement authorized by this
act or any other agreements or matters as necessary to meet the timetables set forth in
this act. Any three members shall constitute a quorum for the conduct of business and
action may be taken upon the vote of a majority of members present at a meeting duly
called and held.
new text end

new text begin Subd. 3. 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. 4. new text end

new text begin Bylaws. new text end

new text begin The authority shall adopt bylaws to establish rules of procedure,
the powers and duties of its officers, and other matters relating to the governance of the
authority and the exercise of its powers. Except as provided in this section, the bylaws
adopted under this subdivision shall be similar in form and substance to bylaws adopted
by the Metropolitan Sports Facilities Commission pursuant to Minnesota Statutes, section
473.553.
new text end

new text begin Subd. 5. new text end

new text begin Executive director. new text end

new text begin The commission shall appoint an executive director
to serve as the chief executive officer of the authority, which appointment shall be made
within 30 days of the first meeting of the members.
new text end

new text begin Subd. 6. new text end

new text begin Web site. new text end

new text begin The authority shall establish a Web site for purposes of
providing information to the public concerning all actions taken by the authority. At a
minimum, the Web site must contain a current version of the authority's bylaws, notices
of upcoming meetings, minutes of the authority's meetings, and contact telephone and
facsimile numbers for public comments.
new text end

Sec. 8. new text begin POWERS OF AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Actions. new text end

new text begin The authority may sue and be sued. The authority is a
public body and the ballpark and public infrastructure are public improvements within the
meaning of Minnesota Statutes, chapter 562. The authority is a municipality within the
meaning of Minnesota Statutes, chapter 466.
new text end

new text begin Subd. 2. new text end

new text begin Acquisition of property. new text end

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

new text begin Subd. 3. new text end

new text begin Data practices; open meetings. new text end

new text begin Except as otherwise provided in this act,
the authority is subject to Minnesota Statutes, chapters 13 and 13D.
new text end

new text begin Subd. 4. 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 ballpark and related facilities constructed, remodeled, or
acquired under this act as smoke-free facilities, subject to the rights and obligations
transferred to and assumed by the team or other user under the terms of a lease or use
agreement, but in no case may a lease or use agreement permit smoking in the ballpark.
new text end

new text begin Subd. 5. 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 that is no longer required for
accomplishment of its purposes. The property may be sold in accordance with the
procedures provided by Minnesota Statutes, section 469.065, except subdivisions 6 and 7,
to the extent the authority deems it to be practical and consistent with this act. Title to the
ballpark shall not be transferred or sold prior to the effective date of enactment of any
legislation approving such transfer or sale.
new text end

new text begin Subd. 6. new text end

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

new text begin The authority may employ persons
and contract for services necessary to carry out its functions, including the utilization of
employees and consultants retained by other governmental entities. The authority shall
enter into an agreement with the city of Minneapolis regarding traffic control for the
ballpark.
new text end

new text begin Subd. 7. new text end

new text begin Gifts and grants. new text end

new text begin The authority may accept monetary contributions,
property, services, and grants or loans of money or other property from the United States,
the state, any subdivision of the state, any agency of those entities, or any person for any
of its purposes, and may enter into any agreement required in connection with them. The
authority shall hold, use, and dispose of the money, property, or services according to the
terms of the monetary contributions, grant, loan, or agreement.
new text end

new text begin Subd. 8. 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. 9. new text end

new text begin Use agreements. new text end

new text begin The authority may lease, license, or enter into use
agreements and may fix, alter, charge, and collect rentals, fees, and charges 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
Minnesota and visitors. Any such use agreement may provide that the other contracting
party has exclusive use of the premises at the times agreed upon, as well as the right to
retain some or all revenues from ticket sales, suite licenses, concessions, advertising,
naming rights, and other revenues derived from the ballpark. The lease or use agreement
with a team shall provide for the payment by the team of operating and maintenance costs
and expenses and provide other terms the authority and team agree to.
new text end

new text begin Subd. 10. 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, consistent
with Minnesota Statutes, 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. 11. new text end

new text begin Exemption from council review; business subsidy act. new text end

new text begin The acquisition
and betterment of a ballpark by the authority must be conducted pursuant to this act and
are not subject to Minnesota Statutes, sections 473.165 and 473.173. Minnesota Statutes,
section 116J.994, does not apply to any transactions of the county, the authority, or other
governmental entity related to the ballpark or public infrastructure, or to any tenant or
other users of them.
new text end

new text begin Subd. 12. new text end

new text begin Contracts. new text end

new text begin The authority may enter into a development agreement with
the team, the county, or any other entity relating to the construction, financing, and use of
the ballpark and related facilities and public infrastructure. The authority may contract
for materials, supplies, and equipment in accordance with section 6, subdivision 5, and
Minnesota Statutes, section 471.345, except that the authority, with the consent of the
county, may employ or contract with persons, firms, or corporations to perform one or more
or all of the functions of architect, engineer, or construction manager with respect to all or
any part of the ballpark and public infrastructure. Alternatively, at the request of the team
and with the consent of the county, the authority shall authorize the team to provide for
the design and construction of the ballpark, subject to terms of this act. The construction
manager may enter into contracts with contractors for labor, materials, supplies, and
equipment for the construction of the ballpark through the process of public bidding,
except that the construction manager may, with the consent of the authority or the team:
new text end

new text begin (1) narrow the listing of eligible bidders to those which the construction manager
determines to possess sufficient expertise to perform the intended functions;
new text end

new text begin (2) award contracts to the contractors that the construction manager determines
provide the best value, which are not required to be the lowest responsible bidder; and
new text end

new text begin (3) for work the construction manager determines to be critical to the completion
schedule, award contracts on the basis of competitive proposals or perform work with
its own forces without soliciting competitive bids if the construction manager provides
evidence of competitive pricing.
new text end

new text begin The authority may require that the construction manager shall certify, before the contract
is finally signed, a fixed and stipulated construction price and completion date to the
authority and shall post a bond in an amount at least equal to 100 percent of the certified
price, to cover any costs which may be incurred in excess of 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. The authority may secure surety bonds
as provided in Minnesota Statutes, section 574.26, securing payment of just claims in
connection with all public work undertaken by it. Persons entitled to the protection of the
bonds may enforce them as provided in Minnesota Statutes, sections 574.28 to 574.32,
and shall not be entitled to a lien on any property of the authority under the provisions of
Minnesota Statutes, sections 514.01 to 514.16. Contracts for construction and operation of
the ballpark must include programs, including Youthbuild, to provide for participation by
small, local, women, and minority businesses, and the inclusion of women and people
of color in the workforces of contractors and ballpark operators. The construction of the
ballpark is a "project" as that term is defined in Minnesota Statutes 2004, section 177.42,
subdivision 2, and is subject to the prevailing wage law under Minnesota Statutes 2004,
sections 177.41 to 177.43.
new text end

new text begin Subd. 13. new text end

new text begin Incidental powers. new text end

new text begin In addition to the powers expressly granted in this
act, the authority has all powers necessary or incidental thereto.
new text end

new text begin Subd. 14. new text end

new text begin Review of ballpark design. new text end

new text begin The authority must review and approve the
ballpark implementation committee's recommendations as they relate to the design and
construction of the ballpark, after the recommendations are approved by the city council
as provided in section 10.
new text end

Sec. 9. new text begin COUNTY ACTIVITIES; BONDS; TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Activities; contracts. new text end

new text begin The county may authorize, by resolution, and
make one or more grants to the authority for ballpark development and construction,
public infrastructure, reserves for capital improvements, and other purposes related to the
ballpark on the terms and conditions agreed to by the county and the authority.
new text end

new text begin The amount that the county may grant or expend for ballpark costs shall not exceed
$260,000,000. The amount of any grant for capital improvement reserves shall not exceed
$1,000,000 annually, subject to annual increases according to an inflation index acceptable
to the county. The amount of grants or expenditures for land, site improvements, and
public infrastructure or other costs incidental and necessary to further the purposes of this
act shall not exceed $90,000,000, except that the authority to spend money for land,
site improvements, and public infrastructure is limited to payment of amounts incurred
or for construction contracts entered into during the five-year period beginning on the
date of the issuance of the initial series of bonds under this act. Such agreements are
valid and enforceable notwithstanding that they involve payments in future years and
they do not constitute a debt of the county within the meaning of any constitutional or
statutory limitation or for which a referendum is required. The county may acquire by
purchase, eminent domain, or gift, land, air rights, and other property interests within
the development area for the ballpark site and public infrastructure and convey it to the
authority with or without consideration, prepare a site for development as a ballpark, and
acquire and construct any related public infrastructure. The purchase of property and
development of public infrastructure financed with revenues under this section is limited
to infrastructure within the development area or within 1,000 feet of the border of the
development area. The public infrastructure may include the construction and operation of
parking facilities within the development area notwithstanding any law imposing limits on
county parking facilities in the city of Minneapolis. The county may acquire and construct
property, facilities, and improvements within the stated geographical limits for the
purpose of drainage and environmental remediation for property within the development
area, walkways and a pedestrian bridge to link the ballpark to Third Avenue distributor
ramps, street and road improvements and access easements for the purpose of providing
access to the ballpark, streetscapes, connections to transit facilities and bicycle trails,
and any utility modifications which are incidental to any utility modifications within the
development area. To the extent property parcels or interests acquired are more extensive
than the public infrastructure requirements, the county may sell or otherwise dispose of
the excess. The proceeds from sales of excess property must be deposited in the debt
service reserve fund. The county may review and approve ballpark designs, plans, and
specifications to the extent provided in a grant agreement and in order to ensure that the
public purposes of the grant are carried out. The county board may delegate responsibility
for implementing the terms of an approved grant agreement to the county administrator
or other designated officers. Public infrastructure designs must optimize area transit
and bicycle opportunities, including connections to existing trails, as determined by the
county board. The county may enforce the provisions of any grant agreement by specific
performance. Except to require compliance with the conditions of the grant or as may
be mutually agreed to by the county and the authority, the county has no interest in or
claim to any assets or revenues of the authority. The county may initiate or continue an
environmental impact statement as the responsible governmental unit under Minnesota
Statutes, section 116D.04, pay for any costs in connection with the environmental impact
statement or reimburse others for such costs, and conduct other studies and tests necessary
to evaluate the suitability of the ballpark site. The county has all powers necessary or
convenient for those purposes and may enter into any contract for those purposes. The
county may make expenditures or grants for other costs incidental and necessary to further
the purposes of this act and may by agreement, reimburse in whole or in part, any entity
that has granted, loaned, or advanced funds to the county to further the purposes of this
act. The county shall reimburse a local governmental entity within its jurisdiction or make
a grant to such a governmental unit for site acquisition, preparation of the site for ballpark
development, and public infrastructure. Amounts expended by a local governmental unit
with the proceeds of a grant or under an agreement that provides for reimbursement by the
county shall not be deemed an expenditure or other use of local governmental resources
by the governmental unit within the meaning of any law or charter limitation. Exercise by
the county of its powers under this section shall not affect the amounts that the county is
otherwise eligible to spend, borrow, tax, or receive under any law.
new text end

new text begin It is the intent of the legislature that, except as expressly limited herein, the county
has the authority to acquire and develop a site for the ballpark, to enter into contracts with
the authority and other governmental or nongovernmental entities, to appropriate funds,
and to make employees, consultants, and other revenues available for those purposes.
new text end

new text begin Subd. 2. new text end

new text begin County revenue bonds. new text end

new text begin The county may, by resolution, authorize, sell,
and issue revenue bonds to provide funds to make a grant or grants to the authority and
to finance all or a portion of the costs of site acquisition, site improvements, and other
activities necessary to prepare a site for development of a ballpark, to construct, improve,
and maintain the ballpark and to establish and fund any capital improvement reserves, and
to acquire and construct any related parking facilities and other public infrastructure and
for other costs incidental and necessary to further the purposes of this act. The county
may also, by resolution, issue bonds to refund the bonds issued pursuant to this section.
The bonds must be limited obligations, payable solely from or secured by taxes levied
under subdivision 3, and any other revenues to become available under this act. The
bonds may be issued in one or more series and sold without an election. The bonds shall
be sold in the manner provided by Minnesota Statutes, section 475.60. The bonds shall
be secured, bear the interest rate or rates or a variable rate, have the rank or priority, be
executed in the manner, be payable in the manner, mature, and be subject to the defaults,
redemptions, repurchases, tender options, or other terms, as the county may determine.
The county may enter into and perform all contracts deemed necessary or desirable by
it to issue and secure the bonds, including an indenture of trust with a trustee within or
without the state. The debt represented by the bonds shall not be included in computing
any debt limitation applicable to the county. Subject to this subdivision, the bonds must be
issued and sold in the manner provided in Minnesota Statutes, chapter 475. The bonds
shall recite that they are issued under this act and the recital shall be conclusive as to the
validity of the bonds and the imposition and pledge of the taxes levied for their payment.
In anticipation of the issuance of the bonds authorized under this subdivision and the
collection of taxes levied under subdivision 3, the county may provide funds for the
purposes authorized by this act through temporary interfund loans from other available
funds of the county which shall be repaid with interest.
new text end

new text begin Subd. 3. new text end

new text begin Sales and use tax. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
477A.016, or other law, the governing body of the county may by ordinance, impose a
sales and use tax at the rate of 0.15 percent for the purposes listed in this section. The
provisions of Minnesota Statutes, section 297A.99, except for subdivisions 2 and 3, apply
to the imposition, administration, collection, and enforcement of this tax.
new text end

new text begin (b) The tax imposed under this section is not included in determining if the total tax
on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.
new text end

new text begin Subd. 4. new text end

new text begin Uses of tax. new text end

new text begin (a) Revenues received from the tax imposed under subdivision
3 may be used:
new text end

new text begin (1) to pay costs of collection;
new text end

new text begin (2) to pay or reimburse or secure the payment of any principal of, premium, or
interest on bonds issued in accordance with this act;
new text end

new text begin (3) to pay costs and make expenditures and grants described in subdivision 1,
including financing costs related to them;
new text end

new text begin (4) to maintain reserves for the foregoing purposes deemed reasonable and
appropriate by the county; and
new text end

new text begin (5) to pay for operating costs of the ballpark authority other than the cost of
operating or maintaining the ballpark;
new text end

new text begin and for no other purpose.
new text end

new text begin (b) Revenues from the tax designated for use under paragraph (a), clause (5), must
be deposited in the operating fund of the ballpark authority.
new text end

new text begin (c) After completion of the ballpark and public infrastructure, the tax revenues not
required for current payments of the expenditures described in clauses (1) to (5) shall be
used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for payment
of future obligations under grants or other commitments for future expenditures which
are permitted by subdivision 1. Upon the redemption or defeasance of the bonds and
the establishment of reserves adequate to meet such future obligations, the taxes shall
terminate and shall not be reimposed.
new text end

Sec. 10. new text begin IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Environmental review. new text end

new text begin The county shall be the responsible
governmental unit for any environmental impact statement for the ballpark and public
infrastructure prepared under Minnesota Statutes, section 116D.04. Notwithstanding
Minnesota Statutes, section 116D.04, subdivision 2b, and implementing rules:
new text end

new text begin (a) the environmental impact statement shall not be required to consider alternative
ballpark sites; and
new text end

new text begin (b) the environmental impact statement must be determined to be adequate before
commencing work on the foundation of the ballpark, but the ballpark and public
infrastructure may otherwise be started and all preliminary and final government decisions
and actions may be made and taken, including but not limited to acquiring land, obtaining
financing, imposing the tax under section 9, granting permits or other land use approvals,
entering into grant, lease, or use agreements, or preparing the site or related public
infrastructure prior to a determination of the adequacy of the environmental impact
statement.
new text end

new text begin Subd. 2. new text end

new text begin Ballpark implementation committee. new text end

new text begin A ballpark implementation
committee shall be established to advise the authority and the county and make
recommendations on the design and construction of the ballpark and the public
infrastructure, including street vacation, parking, roadways, walkways, skyways,
pedestrian bridges, bicycle paths, transit improvements to facilitate public street access
to the ballpark and integration into the transportation plan for downtown and the region,
lighting, landscaping, utilities, streets, drainage, and environmental remediation. The
ballpark implementation committee shall consist of an equal number of members
appointed by the county and by the city of Minneapolis, the precise number of members to
be mutually determined by the county and the city. The county board and the city council
of Minneapolis shall make their respective appointments to the ballpark implementation
committee within 30 days of enactment. Recommendations of the committee shall be
forwarded to the city of Minneapolis planning department for an advisory recommendation
and then to the city council for approval or disapproval.
new text end

new text begin Subd. 3. new text end

new text begin Site approval; land use jurisdiction. new text end

new text begin It is hereby found and declared that
the development area is the ballpark location and that construction of a ballpark within
the development area is a permitted use and is consistent with the comprehensive plan of
the city of Minneapolis and the adopted area plan. The legislature further declares that
the public purpose served by the ballpark and the speed required for construction of the
ballpark and public infrastructure does not allow for application of Minnesota Statutes,
sections 462.351 to 462.361. The exercise by the authority and the county of the powers
provided in this act shall not be subject to regulation by or the jurisdiction of the city
of Minneapolis and are not subject to Minnesota Statutes, sections 15.99, 462.351 to
462.361, Minneapolis City Charter, chapter 13, section 4, or municipal zoning ordinances,
except as specifically provided in this act.
new text end

new text begin Subd. 4. new text end

new text begin Public hearing. new text end

new text begin The authority and the county shall each hold a public
hearing on the preliminary design plans for the ballpark and public infrastructure. Such
hearings may be held separately or jointly by the authority and the county. At least ten
days' published notice of the hearing shall be given in the official newspaper of the
county and a newspaper of general circulation in the county. The authority or county,
as applicable, shall maintain a record of the hearing, including any written statements
submitted.
new text end

new text begin Subd. 5. new text end

new text begin City review. new text end

new text begin At least 20 days before the hearing, the applicable preliminary
design plans shall be submitted to the planning department of the city of Minneapolis
together with a statement generally describing any aspects of the plans which do not
conform to implementation committee recommendations which have been approved by
the city council. In addition to the preliminary design plans, there shall be submitted any
other information generally required by the city of Minneapolis on the standard land use
application worksheet and checklist. The city may hold a public hearing if it does so
within 30 days of the submission. Within 20 days after a hearing under subdivision 4, the
city shall review and approve or disapprove the preliminary design plans on which the
hearing was held. If the city disapproves the plans, it shall describe specific amendments
or conditions to the plans that, if adopted, would cause the city to withdraw its disapproval.
Failure to approve or disapprove the plans in writing within 30 days after the hearing in
subdivision 4 is deemed to be approval, unless an extension of time is agreed to by the
city, county, and the authority. If the city disapproves of the plans, the authority and the
county shall conduct such further reviews as each deem necessary in its sole discretion
prior to continuing the planning and design process.
new text end

new text begin Subd. 6. new text end

new text begin Amendments; final design. new text end

new text begin The authority must approve final design
plans for the ballpark or adopt amendments or conditions to the design plans at its sole
discretion. The county must approve final design plans for the public infrastructure or
adopt amendments or conditions to the design plans at its sole discretion.
new text end

new text begin Subd. 7. new text end

new text begin Subdivision requirements. new text end

new text begin Any subdivision required in the development
area shall be subject to the jurisdiction and review procedures of the city of Minneapolis
established pursuant to Minnesota Statutes, section 462.358, except that the city shall not
deny or withhold excavation or building permits for the ballpark on the grounds that
subdivision review and approval has not occurred within the project construction timetable.
new text end

Sec. 11. new text begin 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 developing the ballpark and entering
into related contracts, the authority must follow and enforce the criteria and conditions in
subdivisions 2 to 15, provided that a determination by the authority that those criteria or
conditions have been met under any agreement or otherwise shall be conclusive.
new text end

new text begin Subd. 2. new text end

new text begin Team contributions. new text end

new text begin The team must agree to contribute $130,000,000
toward ballpark costs, less a proportionate share of any amount by which actual ballpark
costs may be less than a budgeted amount of $390,000,000. The team contributions must
be funded in cash during the construction period. The team shall deposit $45,000,000
to the construction fund to pay for the first ballpark costs. The balance of the team's
contribution must be used to pay the last costs of the ballpark construction. In addition to
any other team contribution, the team must agree to assume and pay when due all cost
overruns for the ballpark costs that exceed the budget.
new text end

new text begin Subd. 3. new text end

new text begin Reserve for capital improvements. new text end

new text begin The authority shall require that
a reserve fund for capital improvements to the ballpark be established and funded
with annual payments of $2,000,000, with the team's share of those payments to be
approximately $1,000,000, as determined by agreement of the team and county. The
annual payments shall increase according to an inflation index determined by the authority,
provided that any portion of the team's contribution that has already been reduced to
present value shall not increase according to an inflation index. The authority may accept
contributions from the county or other source for the portion of the funding not required to
be provided by the team.
new text end

new text begin Subd. 4. new text end

new text begin Lease or use agreements. new text end

new text begin The authority must agree to a long-term lease
or use agreement with the team for its use of the ballpark. The team must agree to play
all regularly scheduled and postseason home games at the ballpark. Preseason games
may also be scheduled and played at the ballpark. The lease or use agreement must be
for a term of at least 30 years from the date of ballpark completion. The lease or use
agreement must include terms for default, termination, and breach of the agreement.
Recognizing that the presence of major league baseball provides to Hennepin County, the
state of Minnesota, and its citizens highly valued, intangible benefits that are virtually
impossible to quantify and, therefore, not recoverable in the event of a team owner's
breach of contract, the lease and use agreements must provide for specific performance
and injunctive relief to enforce provisions relating to use of the ballpark for major league
baseball and must not include escape clauses or buyout provisions. The team must not
enter into or accept any agreement or requirement with or from Major League Baseball or
any other entity that is inconsistent with the team's binding commitment to the 30-year
term of the lease or use agreement or that would in any manner dilute, interfere with, or
negate the provisions of the lease or use agreement, or of any grant agreement under
section 9 that includes a specific performance clause, providing for specific performance
or injunctive relief. The legislature conclusively determines, as a matter of public policy,
that the lease or use agreement, and any grant agreement under section 9 that includes a
specific performance clause: (a) explicitly authorize specific performance as a remedy
for breach; (b) are made for adequate consideration and upon terms which are otherwise
fair and reasonable; (c) have not been included through sharp practice, misrepresentation,
or mistake; (d) if specifically enforced, do not cause unreasonable or disproportionate
hardship or loss to the team or to third parties; and (e) involve performance in such a
manner and the rendering of services of such a nature and under such circumstances that
the beneficiary cannot be adequately compensated in damages.
new text end

new text begin Subd. 5. new text end

new text begin Notice requirement for certain events. new text end

new text begin Until 30 years from the date
of ballpark completion, the team must provide written notice to the authority not less
than 90 days prior to any action, including any action imposed upon the team by Major
League Baseball, which would result in a breach or default of provisions of the lease
or use agreements required to be included under subdivision 4. If this notice provision
is violated and the team has already breached or been in default under the required
provisions, the authority, the county, or the state of Minnesota is authorized to specifically
enforce the lease or use agreement, and Minnesota courts are authorized and directed to
fashion equitable remedies so that the team may fulfill the conditions of the lease and use
agreements, including, but not limited to, remedies against major league baseball.
new text end

new text begin Subd. 6. new text end

new text begin Enforceable financial commitments. new text end

new text begin The authority must determine
before ballpark construction begins that all public and private funding sources for
construction of the ballpark are included in written agreements. The committed funds
must be adequate to design, construct, furnish, and equip the ballpark.
new text end

new text begin Subd. 7. new text end

new text begin Environmental requirements. new text end

new text begin The authority must comply with all
environmental requirements imposed by regulatory agencies for the ballpark, site, and
structure, except as provided by section 10, subdivision 1.
new text end

new text begin Subd. 8. new text end

new text begin Right of first refusal. new text end

new text begin The lease or use agreement must provide that, prior
to any planned sale of the team, the team must offer a corporation formed under section
15 a right of first refusal to purchase the team at the same price and upon the same terms
and conditions as are contemplated in the intended sale.
new text end

new text begin Subd. 9. new text end

new text begin Public share upon sale of team. new text end

new text begin The lease or use agreement must provide
that, if the team is sold other than to the county under subdivision 8, after the effective
date of this act, a portion of the sale price must be paid to the county and used to defease
the bonds issued under section 9, subdivision 2. The portion required to be so paid to the
county is 18 percent of the gross sale price. Any portion remaining after the defease of the
bonds must be paid to the authority and deposited in a reserve fund for improvements to
the ballpark or expended as otherwise directed by the authority.
new text end

new text begin Subd. 10. new text end

new text begin Access to books and records. new text end

new text begin The lease or use agreement must provide
the authority access to annual audited financial statements of the team and other financial
books and records that the authority deems necessary to determine compliance by the
team with this act and to enforce the terms of any lease or use agreements entered into
under this act. Any financial information obtained by the authority under this subdivision
is nonpublic data under Minnesota Statutes, section 13.02, subdivision 9.
new text end

new text begin Subd. 11. new text end

new text begin Affordable access. new text end

new text begin To the extent determined by the authority or required
by a grant agreement, any lease or use agreement must provide for affordable access to the
professional sporting events held in the ballpark.
new text end

new text begin Subd. 12. new text end

new text begin No strikes; lockouts. new text end

new text begin The authority must negotiate a public sector project
labor agreement or other agreement to prevent strikes and lockouts that would halt, delay,
or impede construction of the ballpark and related facilities.
new text end

new text begin Subd. 13. new text end

new text begin Youth and amateur sports. new text end

new text begin The lease or use agreement must require that
the team provide or cause to be provided $250,000 annually for the term of the agreement
for youth activities and amateur sports without reducing the amounts otherwise normally
provided for and on behalf of the team for those purposes. The amounts shall increase
according to an inflation factor not to exceed 2.5 percent annually and may be subject to a
condition that the county fund grants for similar purposes.
new text end

new text begin Subd. 14. new text end

new text begin Name retention. new text end

new text begin The lease or use agreement must provide that the
team and league will transfer to the state of Minnesota the Minnesota Twins' heritage
and records, including the name, logo, colors, history, playing records, trophies, and
memorabilia in the event of any dissolution or relocation of the Twins franchise.
new text end

new text begin Subd. 15. new text end

new text begin Agreement with major league baseball. new text end

new text begin The authority shall enter into
an agreement with major league baseball guaranteeing the continuance of the Minnesota
Twins in the area for the period of the agreements referred to in subdivision 4.
new text end

Sec. 12. new text begin METROPOLITAN SPORTS FACILITIES COMMISSION.
new text end

new text begin The Metropolitan Sports Facilities Commission may authorize, by resolution,
technical, professional, or financial assistance to the county and authority for the
development and operation of the ballpark upon such terms and conditions as the county
or authority and the Metropolitan Sports Facilities Commission may agree, including
reimbursement of financial assistance from the proceeds of the bonds authorized in this
chapter. Without limiting the foregoing permissive powers, the Metropolitan Sports
Facilities Commission shall transfer $300,000 from its cash reserves to the county on
or prior to January 1, 2007, for use in connection with preliminary ballpark and public
infrastructure costs, which amount shall be repaid by the county from collections of the
tax authorized by section 9, if any.
new text end

Sec. 13. new text begin CITY REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Land conveyance. new text end

new text begin At the request of the authority or county, the city
of Minneapolis shall convey to the authority or county, as applicable, at fair market value
all real property it owns that is located in the development area and is not currently used
for road, sidewalk, or utility purposes and that the authority or county determines to be
necessary for ballpark or public infrastructure purposes.
new text end

new text begin Subd. 2. new text end

new text begin Liquor licenses. new text end

new text begin At the request of the authority, the city of Minneapolis
shall issue intoxicating liquor licenses that are reasonably requested for the premises of the
ballpark. These licenses are in addition to the number authorized by law. All provisions of
Minnesota Statutes, chapter 340A, not inconsistent with this section apply to the licenses
authorized under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Charter limitations. new text end

new text begin Actions taken by the city of Minneapolis under this
act in a planning or regulatory capacity, actions for which fair market value reimbursement
is provided or for which standard fees are collected, and any tax exemptions established
under this act shall not be deemed to be an expenditure or other use of city resources
within the meaning of any charter limitation.
new text end

Sec. 14. new text begin LOCAL TAXES.
new text end

new text begin new text end

new text begin No new or additional local sales or use tax shall be imposed on sales at the ballpark
site unless the tax is applicable throughout the taxing jurisdiction. No new or additional
local tax shall be imposed on sales of tickets and admissions to baseball events at the
ballpark, notwithstanding any law or ordinance, unless the tax is applicable throughout
the taxing jurisdiction. The admissions and amusements tax currently imposed by the
city of Minneapolis pursuant to Laws 1969, chapter 1092, may apply to admissions for
baseball events at the ballpark.
new text end

Sec. 15. new text begin COMMUNITY OWNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The legislature determines that:
new text end

new text begin (1) a professional baseball franchise is an important asset to the state of Minnesota
and ensuring that a franchise remains in Minnesota is an important public purpose;
new text end

new text begin (2) providing broad-based local ownership of a major league baseball franchise
develops trust among fans, taxpayers, and the team, and helps ensure this important asset
will remain in the state;
new text end

new text begin (3) providing community ownership of a professional baseball franchise ensures that
the financial benefits of any increased value of the franchise will accrue to those members
of the community who own the franchise; and
new text end

new text begin (4) enacting legislation providing for community ownership indicates to major
league baseball continuing support for professional baseball in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Acquisition. new text end

new text begin Subject to the rules of major league baseball, 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
voluntary 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 or voluntary contraction of the franchise, 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 a person or entity must not
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 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

Sec. 16. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall codify the provisions of this act in the next edition of
Minnesota Statutes.
new text end

Sec. 17. 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, new text end new text begin are repealed.
new text end

Sec. 18. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1, 3, and 6 to 17 are effective the day following final enactment.
new text end