HF 3033

as introduced - 87th Legislature (2011 - 2012) Posted on 04/27/2012 12:59pm

A bill for an act
relating to stadiums; establishing the Metropolitan Sports Authority to provide
planning and financing for a new stadium Next for the Minnesota Previous Vikings Next ; requiring a
report; proposing coding for new law as Minnesota Statutes, chapter 473K.

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

Section 1.

new text begin [473K.01] PURPOSE.
new text end

new text begin The legislature finds that Minnesotans desire to maintain professional sports as
statewide amenities. To enhance that experience, the state will seek to establish a viable
funding partnership that will build and sustain a new professional football and soccer
Previous stadium Next .
new text end

Sec. 2.

new text begin [473K.02] AUTHORITY.
new text end

new text begin The Metropolitan Sports Authority is authorized to enter into financial negotiations
and planning that would result in a sustainable Previous stadium Next finance package for capital and
operating costs. The final package of funding shall be reported to the 2013 Legislature for
final approval. Any state public financing recommendations related to capital costs must
demonstrate the feasibility and costs of alternative finance mechanisms. The report shall
also contain a feasibility study and recommendations as to how fans may help finance the
capital costs through the purchase of public bonds. Public input into these plans and
recommendations shall be sought from Minnesota residents.
new text end

new text begin The funding package shall consist of a partnership of support from the team,
businesses, fans and other users, and public support. It shall be expected that over half of
the capital costs and 80 percent of the operating costs shall be funded by the professional
football team. Funding for ongoing maintenance, upkeep, and capital improvements shall
be planned for. All tenants shall be responsible for build out of their exclusive use space.
new text end

Sec. 3.

new text begin [473K.03] LOCATION.
new text end

new text begin To minimize land acquisition and public infrastructure costs, the Previous stadium Next site shall
be the existing Metrodome site in the city of Minneapolis. To minimize the costs to all
partners, the design shall emphasize a minimal footprint with one plaza, utilize the existing
transit, parking, and hotel accommodations of the downtown area, and be designed to
minimize ongoing operating costs.
new text end

Sec. 4.

new text begin [473K.04] TEAM CONTRIBUTIONS.
new text end

new text begin Team-based contributions shall consider but not be limited to:
new text end

new text begin (1) initial football franchise contribution;
new text end

new text begin (2) rental agreement (football game days only, plus one special "team-branded"
event);
new text end

new text begin (3) soccer, which must pay its operating costs, and revenue generated beyond that
goes to capital reserve; and
new text end

new text begin (4) unsold seat tax.
new text end

Sec. 5.

new text begin [473K.05] BUSINESS CONTRIBUTIONS.
new text end

new text begin Business commitments shall be sought for initial and ongoing support. Those to be
considered shall include, but not be limited to:
new text end

new text begin (1) naming rights ( Previous stadium Next , field, concourses, entry plaza);
new text end

new text begin (2) internal and external advertising on site; and
new text end

new text begin (3) boxes and suites, which are committed to in advance of architectural design.
new text end

Sec. 6.

new text begin [473K.06] FAN AND USER CONTRIBUTIONS.
new text end

new text begin Fan and user-based contributions shall consist of a variety of funding streams. Those
to be considered shall include:
new text end

new text begin (1) seat licenses for pro sports events;
new text end

new text begin (2) luxury surcharge on boxes and suites;
new text end

new text begin (3) Previous stadium Next concessions, share of revenues;
new text end

new text begin (4) memorabilia surcharge;
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new text begin (5) rentals for nonprofessional sports use;
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new text begin (6) ticket/user tax of ... percent of face value;
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new text begin (7) entertainment tax for public safety costs;
new text end

new text begin (8) other rentals;
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new text begin (9) public raffle for pairs of seats to a game;
new text end

new text begin (10) bricks/tiles/handprint; and
new text end

new text begin (11) fan-based purchase of bonds.
new text end

Sec. 7.

new text begin [473K.07] HOST CITY CONTRIBUTIONS.
new text end

new text begin The host city shall be expected to contribute foregone development potential,
public safety support funded by the entertainment tax, and absorb property tax losses
based on nonbusiness use components. The host city may be expected to assist with site
planning, land acquisition, and public infrastructure with those costs repaid through the
Previous stadium Next finance package.
new text end

Sec. 8.

new text begin [473K.08] STATE CONTRIBUTIONS.
new text end

new text begin The state shall contribute sales tax forgiveness on building materials and potential
use of its credit for financing. If a backup revenue is needed to secure bond financing,
a variety of statewide revenue streams shall be analyzed.
new text end

Sec. 9.

new text begin [473K.09] REPORT.
new text end

new text begin (a) The Metropolitan Sports Facilities Commission shall report to the Minnesota
legislature by January 15, 2013.
new text end

new text begin (b) To ensure that the fan-based revenues are supportable and the public involvement
justified, the report shall include recommendations for how to assure all seats are sold out
and all fans have access to free viewing of the games. This shall include consideration of
an unsold seat tax to be paid by the team owners and distribution of those unsold tickets to
Minnesotans via a public raffle process.
new text end

new text begin (c) The report must address profit sharing with the team owners if the team is sold
during the term of the lease. Any new team owners must be able to demonstrate capacity
to honor the teams financial obligations to the Previous stadium Next .
new text end

Sec. 10. new text begin FUNDING; APPROPRIATION.
new text end

new text begin To fund the responsibilities in sections 1 to 9, the Metropolitan Sports Authority is
to enter into a rental agreement with the Minnesota Previous Vikings for the 2012-13 season with
the rent above operating costs dedicated to these planning efforts. It is also authorized
to accept businesses and individual donations for these purposes but receipt of private
funds shall not be tied to any special consideration or input.
new text end