HF 263

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to a University of Minnesota football stadium; providing a process for
state support of a football stadium at the University of Minnesota; transferring
land in Dakota County from the University to the state of Minnesota;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 473.

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

Section 1. new text begin PURPOSE; FINDINGS.
new text end

new text begin The legislature finds that construction of a new football stadium by the Board of
Regents of the University of Minnesota on the University's east bank campus in the
city of Minneapolis serves statewide public purposes. The legislature finds that the
public purposes served include, but are not limited to, providing an on-campus outdoor
intercollegiate football stadium as a part of the public amenities for Minnesota's citizens,
enhancing the enjoyment of its citizens, and enhancing the University experience for
students, alumni, faculty, staff, and other supporters of the University. The legislature
finds that the University intends to join together with its students, alumni, faculty, staff,
and other supporters to raise funds to build a stadium to return college football to the
University campus. Further, the legislature finds that construction of a University of
Minnesota football stadium should be supported by the state and that the support should
not detract from or be a substitute for other operating and capital support by the state for
the University; however, state financial support for the stadium should be conditioned
upon the University providing for payment of a significant portion of the stadium's cost
from nonstate general revenue fund sources. The purpose of this act is to provide a firm
50 percent level of funding for a new University football stadium to be constructed and
owned by the Regents of the University of Minnesota.
new text end

Sec. 2. new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to sections 2 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of finance.
new text end

new text begin Subd. 3. new text end

new text begin Stadium. new text end

new text begin "Stadium" means an athletic stadium suitable for intercollegiate
National Collegiate Athletic Association (NCAA) Division I football games and related
infrastructure improvements constructed on the University of Minnesota's east bank
campus in the city of Minneapolis.
new text end

new text begin Subd. 4. new text end

new text begin Board. new text end

new text begin "Board" means the Regents of the University of Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Commission. new text end

new text begin "Commission" means the Metropolitan Sports Facilities
Commission.
new text end

new text begin Subd. 6. new text end

new text begin University land. new text end

new text begin "University land" means approximately 2,840 acres
owned by the University of Minnesota and lying within the area legally described as
approximately the Southerly ??A? of the Southwest ??A? of Section 1 (comprising 120 acres),
approximately the Southeast ??A? of Section 2 (comprising 160 acres), the East ??A? of Section
10, Section 11, the West ??A? of Section 12, Section 13 and Section 14, all in Twp. 114
North, Range 19 West, Dakota County, Minnesota.
new text end

new text begin Subd. 7. new text end

new text begin Permitted University uses. new text end

new text begin "Permitted University uses" means University
educational, research, outreach, scientific and agricultural uses including, undiminished,
all of the present uses of the University land, all of the present uses of University real
property that adjoins the University land, all similar uses made of comparable property by
other land grant universities, any uses related to the foregoing uses, and the making of
improvements incidental to any such uses.
new text end

new text begin Subd. 8. new text end

new text begin Other permitted uses. new text end

new text begin "Other permitted uses" means agricultural, outdoor
recreational and open space management uses, and the making of improvements incidental
to any such uses, provided such improvements have been agreed to in writing by the
University and the commissioner of natural resources.
new text end

new text begin Subd. 9. new text end

new text begin Prohibited uses. new text end

new text begin "Prohibited uses" means use of the University land
for residential, commercial, or industrial uses, unless those uses are permitted by this
act, or are presently being conducted under existing University leases, easements or use
agreements or are utility uses within defined corridors.
new text end

Sec. 3. new text begin ACTIVITIES; CONTRACTS.
new text end

new text begin The legislature recognizes that the board has all powers necessary or convenient for
designing, constructing, equipping, improving, controlling, operating, and maintaining the
stadium and may enter into contracts that are in its judgment in the best interests of the
public for those purposes. Notwithstanding contrary law, the board may adopt the fair
and competitive design and construction procurement procedures in connection with the
stadium that it considers to be in the public interest.
new text end

Sec. 4. new text begin CONDITIONS FOR PAYMENT TO UNIVERSITY.
new text end

new text begin Before the commissioner may make the first payment to the board authorized in this
section the commissioner must certify that the board has received at least $124,000,000
in pledges, gifts, sponsorships, and other nonstate general fund revenue support for the
construction of the stadium. On July 1 of each year after certification by the commissioner,
but no earlier than July 1, 2007, and for so long thereafter as any bonds issued by the board
for the construction of the stadium are outstanding, the state must transfer to the board up
to $9,400,000 to reimburse the board for its stadium costs, provided that bonds issued to
pay the state's share of such costs shall not exceed $124,000,000. Up to $9,400,000 is
appropriated annually from the general fund for the purpose of this section. The board
must certify to the commissioner the amount of the annual payments of principal and
interest required to service bonds issued by the University for the construction of the
stadium, and the actual amount of the state's annual payment to the University shall equal
the amount required to service the bonds representing the state's share of such costs.
Except to the extent of the annual appropriation described in this section, the state is not
required to pay any part of the cost of designing or constructing the stadium.
new text end

Sec. 5. new text begin NO FULL FAITH AND CREDIT.
new text end

new text begin Any bonds or other obligations issued by the board 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

Sec. 6. new text begin LAND PROTECTION AND TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Land protection. new text end

new text begin The obligation of the state of Minnesota to
make the payments required under section 4 herein is expressly conditioned upon the
University's covenant in perpetuity, subject to subdivision 3, limiting the use of the
University land to the permitted University uses and the other permitted uses and
proscribing the use of the University land for any of the prohibited uses. A declaration
imposing such restrictions and granting to the Minnesota Department of Natural Resources
the right to enforce the same which has been executed by the University and filed in the
Office of the Dakota County Recorder shall satisfy this condition. In furtherance of the
purposes of this subdivision, the University and Department of Natural Resources shall
promptly endeavor to enter into a joint powers agreement pursuant to Minnesota Statutes,
section 471.59, or a conservation easement held by a qualified conservation organization
or by a conservation easement holder as described in applicable Minnesota law embodying
such restrictions, which agreement or easement shall provide for cooperative oversight
of the use of the University land. Nothing herein or in any declaration, agreement, or
easement made or entered into pursuant hereto shall impair the rights of third parties
under presently existing leases, easements, or use agreements. Except as limited in
any declaration, agreement, or conservation easement made, entered into, or granted as
provided above, the rights of University with respect to the University land are not to be
affected by this section.
new text end

new text begin Subd. 2. new text end

new text begin Land transfer. new text end

new text begin Not later than the date on which the state of Minnesota
makes the last of the payments required under section 4, the Regents of the University of
Minnesota shall offer to convey the University land to the state of Minnesota in its "as is"
condition by quit claim for the sum of $1. Upon agreement of the University and the state,
all or part of the University land may be transferred to another governmental unit of the
state. Any conveyance shall be subject to the perpetual right of the University to use the
University land for the permitted University uses and to the rights of third parties under
presently existing leases, easements, and use agreements. The instruments of transfer shall
otherwise limit the use of the University land to the other permitted uses and subject such
uses to such restrictions as may be provided in any agreement between the University and
state or any conservation easement granted pursuant to subdivision 1, as applicable and
proscribe its use for the prohibited purposes. The University of Minnesota shall have the
right to enforce such limitations and restrictions.
new text end

new text begin Subd. 3. new text end

new text begin Termination of use restrictions. new text end

new text begin In the event the state of Minnesota fails
to make any payment required by section 4, the foregoing restrictions on University's use
of the University land, any declaration, agreement, or conservation easement containing
such restrictions and the University's obligation to offer the University land to the state of
Minnesota shall be null and void.
new text end

Sec. 7.

new text begin [473.5955] TERMINATION OF LEASE.
new text end

new text begin The lease between the Regents of the University of Minnesota and the commission
dated May 19, 1982, that requires the University of Minnesota football team to play its
home football games at the Hubert H. Humphrey Metrodome until July 1, 2012, may
be terminated by the board effective on or after the date designated by the board as the
date of completion of the stadium on the University of Minnesota's east bank campus in
the city of Minneapolis.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 are effective the day following final enactment. new text end