HF 2936

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to local government; authorizing the city of 
  1.3             St. Paul to participate in the creation of, and to 
  1.4             contract with, a nonprofit organization for management 
  1.5             and operation of the RiverCentre complex. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [DEFINITIONS.] 
  1.8      Subdivision 1.  [APPLICATION.] For the purposes of this 
  1.9   act, the terms defined in this section have the meanings given 
  1.10  them. 
  1.11     Subd. 2.  [CITY.] "City" means the city of St. Paul, its 
  1.12  mayor, city council, and any other board, authority, commission, 
  1.13  or officer authorized by law, charter, or ordinance to exercise 
  1.14  city powers of the nature referred to in this act. 
  1.15     Subd. 3.  [RIVERCENTRE COMPLEX.] "RiverCentre complex" 
  1.16  means collectively the auditorium, convention, conference and 
  1.17  education center, arena, and parking ramp facilities presently 
  1.18  and commonly known as the Roy Wilkins Auditorium, St. Paul 
  1.19  RiverCentre, Xcel Energy Center, and RiverCentre Parking Ramp, 
  1.20  including all property, real or personal, tangible or 
  1.21  intangible, located in the city, intended to be used as part of 
  1.22  the RiverCentre complex or additions to or extensions of it. 
  1.23     Sec. 2.  [ST. PAUL; CREATION OF NONPROFIT ORGANIZATION.] 
  1.24     Subdivision 1.  [AUTHORITY TO CREATE A NONPROFIT 
  1.25  ORGANIZATION.] As required under Minnesota Statutes, section 
  2.1   465.717, and notwithstanding any other law, city charter 
  2.2   provision, or ordinance to the contrary, the city of St. Paul 
  2.3   may participate in the creation of a nonprofit organization for 
  2.4   the purposes provided in this act. 
  2.5      Subd. 2.  [GOVERNING BOARD; APPOINTMENT PROCESS.] (a) The 
  2.6   mayor of the city, subject to approval by the city council, 
  2.7   shall appoint a majority of the members of the governing board 
  2.8   of the nonprofit organization performing all or a part of the 
  2.9   activities necessary to carry out the purposes specified in this 
  2.10  act.  The mayor of the city may designate any officer or 
  2.11  employee of the city to serve as a member of the governing board 
  2.12  of any nonprofit organization. 
  2.13     (b) In addition to the appointments made by the mayor under 
  2.14  paragraph (a), the mayor of the city shall designate two members 
  2.15  of the city council to serve on the governing board of the 
  2.16  nonprofit organization. 
  2.17     (c) Notwithstanding any provision contained in the articles 
  2.18  of incorporation and bylaws of the nonprofit organization, any 
  2.19  member of the governing board appointed by the mayor may be 
  2.20  removed only by the mayor of the city. 
  2.21     Subd. 3.  [PRESIDENT.] The governing board of the nonprofit 
  2.22  organization shall select, subject to the approval of the mayor 
  2.23  of the city, a president to serve as chief executive officer and 
  2.24  general manager of the nonprofit organization. 
  2.25     Subd. 4.  [CONFLICTS OF INTEREST.] The procedures in 
  2.26  Minnesota Statutes, section 317A.255, subdivision 1, paragraph 
  2.27  (b), relating to director conflicts of interest, are not 
  2.28  required if the contract or other transaction is between the 
  2.29  city and the nonprofit organization. 
  2.30     Sec. 3.  [RIVERCENTRE MANAGEMENT; OPERATIONS CONTRACT.] 
  2.31     Subdivision 1.  [AUTHORITY TO CONTRACT WITH NONPROFIT 
  2.32  ORGANIZATION.] The city may enter into an agreement with the 
  2.33  nonprofit organization created in section 2 to equip, maintain, 
  2.34  manage, and operate all or a portion of the RiverCentre complex 
  2.35  and to manage and operate a convention bureau to market and 
  2.36  promote the city as a tourist or convention center.  Except as 
  3.1   otherwise provided in this act, the nonprofit organization may 
  3.2   only contract and utilize and expend funds for these purposes 
  3.3   under the direction of its governing board, subject to the 
  3.4   accounting, financial reporting, and other conditions that the 
  3.5   city may prescribe in a contract made under this act between the 
  3.6   city and the nonprofit organization.  The nonprofit organization 
  3.7   may use the services of the office of the city attorney and the 
  3.8   city's purchasing department.  All activities performed to carry 
  3.9   out these purposes are deemed to be for a public purpose. 
  3.10     Subd. 2.  [BONDHOLDERS' RIGHTS AND RIVERCENTRE COMPLEX TAX 
  3.11  EXEMPTIONS PRESERVED.] (a) The city must protect the rights of 
  3.12  holders of bonds issued for the RiverCentre complex, including 
  3.13  preserving the tax-exempt status of the bonds. 
  3.14     (b) The use and operation of the RiverCentre complex by the 
  3.15  nonprofit organization with which the city contracts under this 
  3.16  act is a use, lease, or occupancy for public, governmental, and 
  3.17  municipal purposes, and the complex is exempt from taxation by 
  3.18  the state or any political subdivision of the state during such 
  3.19  use, to the extent it would be exempt if the complex was 
  3.20  equipped, maintained, managed, and operated by the city. 
  3.21     (c) Gross receipts of tickets and admissions to events at 
  3.22  the RiverCentre complex sponsored by the nonprofit organization 
  3.23  created in section 2 do not qualify for the sales tax exemption 
  3.24  under Minnesota Statutes, section 297A.70, subdivision 10. 
  3.25     Subd. 3.  [APPLICABLE GENERAL LAWS.] The following statutes 
  3.26  apply to the nonprofit organization with which the city 
  3.27  contracts under this act the same as they apply to the city, to 
  3.28  the extent practicable: 
  3.29     (a) Minnesota Statutes, chapter 13D, the Minnesota Open 
  3.30  Meeting Law; and 
  3.31     (b) Minnesota Statutes, chapter 13, the Government Data 
  3.32  Practices Act. 
  3.33     Subd. 4.  [SUCCESSION.] The nonprofit organization with 
  3.34  which the city contracts under this act is the successor to all 
  3.35  powers, rights, assets, privileges, and interests held and 
  3.36  enjoyed by the RiverCentre authority on the effective date of 
  4.1   this act, and established by the provisions of Laws 1967, 
  4.2   chapter 459, sections 1, 2, 4, and 8, subdivisions 2 and 3, 
  4.3   clause (3), as amended; Laws 1982, chapter 523, article 25, 
  4.4   sections 4 and 5, as amended; Laws 1998, chapter 404, sections 
  4.5   81 and 82; and Minnesota Statutes, section 297A.98.  On the 
  4.6   effective date of the contract between the city and the 
  4.7   nonprofit organization authorized by this act, the RiverCentre 
  4.8   authority ceases to exist for only so long as the contract is in 
  4.9   effect, and all other laws or provisions specifically relating 
  4.10  to the RiverCentre authority and the RiverCentre complex that 
  4.11  are not otherwise referenced in this act, do not apply to the 
  4.12  nonprofit organization. 
  4.13     Sec. 4.  [LIABILITY.] 
  4.14     The nonprofit organization with which the city contracts 
  4.15  under this act is a "municipality," and the officers, directors, 
  4.16  employees, and agents of the nonprofit organization are 
  4.17  "employees, officers, or agents," under Minnesota Statutes, 
  4.18  chapter 466, relating to tort liability.  The city must defend, 
  4.19  save harmless, and indemnify the nonprofit organization, 
  4.20  including the nonprofit's officers, directors, employees, and 
  4.21  agents, against any claim or demand arising out of the nonprofit 
  4.22  organization's performance under the contract. 
  4.23     Sec. 5.  [EFFECTIVE DATE.] 
  4.24     This act is effective the day after the city council and 
  4.25  the chief clerical officer of the city of St. Paul have timely 
  4.26  completed their compliance with Minnesota Statutes, section 
  4.27  645.023, subdivisions 2 and 3.