HF 3089

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

  1.1                          A bill for an act 
  1.2             relating to sports stadiums; providing for a process 
  1.3             to build stadiums for the use of the Minnesota Twins 
  1.4             and the Minnesota Vikings; establishing the Minnesota 
  1.5             Stadium Authority; authorizing revenue bonds; 
  1.6             authorizing certain local tax and revenues in certain 
  1.7             communities; appropriating money; proposing coding for 
  1.8             new law in Minnesota Statutes, chapter 473; repealing 
  1.9             Minnesota Statutes 2002, sections 473I.01; 473I.02; 
  1.10            473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 
  1.11            473I.09; 473I.10; 473I.11; 473I.12; 473I.13. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [473.75] [PURPOSE.] 
  1.14     Subdivision 1.  [PROCESS FOR NEW STADIUMS.] The purpose of 
  1.15  this act is to provide a process to result in the location, 
  1.16  construction, financing, and long-term use of two new stadiums 
  1.17  primarily for the use of the Minnesota Twins and the Minnesota 
  1.18  Vikings. 
  1.19     Subd. 2.  [LOCATION.] (a) The stadiums must be located in 
  1.20  the metropolitan area as defined in section 473.121, subdivision 
  1.21  2. 
  1.22     (b) Both stadiums may, but need not be, located in the same 
  1.23  city or county. 
  1.24     (c) A city and its county may cooperate to host one or both 
  1.25  stadiums under a joint powers agreement under section 471.59 or 
  1.26  as otherwise provided by law. 
  1.27     Subd. 3.  [MINNESOTA STADIUM AUTHORITY.] (a) To achieve the 
  1.28  purposes of this act, the Minnesota Stadium Authority is 
  2.1   established to independently choose sites for the two stadiums 
  2.2   from proposals submitted by the franchise owners and their 
  2.3   proposed host communities.  The authority may consider or 
  2.4   propose other arrangements for sites and terms if the authority 
  2.5   is not satisfied with proposals submitted by the franchise 
  2.6   owners and their proposed host cities.  The authority's 
  2.7   determination of sites for the two stadiums is final.  The 
  2.8   authority must set an ample time frame for site selection, 
  2.9   negotiations, and construction of the two stadiums.  The 
  2.10  authority must have title to all land and air rights needed for 
  2.11  construction and operation of the stadium facilities.  The 
  2.12  authority may enter into contracts for and take all actions 
  2.13  necessary or desirable to site, design, construct, furnish, 
  2.14  equip, and provide for the operation, maintenance, and 
  2.15  improvement of stadium facilities and anything incident to their 
  2.16  enumerated potential actions.  On completion of the construction 
  2.17  of the second stadium, the authority must recommend to the 
  2.18  legislature and the governor, a reconstituted authority to 
  2.19  oversee the ongoing maintenance and operation and improvements 
  2.20  of the stadiums to ensure that those public entities that 
  2.21  provide substantial financial support receive appropriate 
  2.22  representation.  The authority must also recommend to the 
  2.23  legislature and the governor a proposed disposition of the 
  2.24  Metrodome facility and of the Metropolitan Sports Facilities 
  2.25  Commission and of its financial reserves, if any. 
  2.26     (b) The authority must consider and make recommendations 
  2.27  with regard to alternative proposals for the continuation of 
  2.28  professional baseball and football in Minnesota.  Such proposals 
  2.29  may include, but are not limited to, full private financing of 
  2.30  stadium facilities and community ownership of professional 
  2.31  sports franchises. 
  2.32     Sec. 2.  [473.751] [MINNESOTA STADIUM AUTHORITY.] 
  2.33     Subdivision 1.  [COMPOSITION.] (a) The Minnesota Stadium 
  2.34  Authority consists of: 
  2.35     (1) six members, appointed by the governor; and 
  2.36     (2) a chair appointed by the governor. 
  3.1      (b) All members, including the chair, serve at the pleasure 
  3.2   of the governor. 
  3.3      Subd. 2.  [CHAIR.] The chair shall preside at all meetings 
  3.4   of the commission, if present, and shall perform all other 
  3.5   assigned duties and functions.  The commission may appoint from 
  3.6   among its members a vice-chair to act for the chair during the 
  3.7   temporary absence or disability of the chair. 
  3.8      Sec. 3.  [473.752] [POWERS OF AUTHORITY.] 
  3.9      Subdivision 1.  [GENERAL.] The authority has all powers 
  3.10  necessary or convenient to discharge the duties imposed by law, 
  3.11  including but not limited to those specified in this section. 
  3.12     Subd. 2.  [ACTIONS.] The authority may sue and be sued, and 
  3.13  is a public body within the meaning of chapter 562. 
  3.14     Subd. 3.  [ACQUISITION OF PROPERTY.] The authority may 
  3.15  acquire by lease, purchase, gift, or devise all necessary right, 
  3.16  title, and interest in and to real or personal property deemed 
  3.17  necessary to the purposes contemplated by this act. 
  3.18     Subd. 4.  [EXEMPTION OF PROPERTY.] Any real or personal 
  3.19  property acquired, owned, leased, controlled, used, or occupied 
  3.20  by the authority for any of the purposes of this act is declared 
  3.21  to be acquired, owned, leased, controlled, used, and occupied 
  3.22  for public, governmental, and municipal purposes, and is exempt 
  3.23  from ad valorem taxation by the state or any political 
  3.24  subdivision of the state.  But the properties are subject to 
  3.25  special assessments levied by a political subdivision for a 
  3.26  local improvement in amounts proportionate to and not exceeding 
  3.27  the special benefit received by the properties from the 
  3.28  improvement.  No possible use of any of the properties in any 
  3.29  manner different from their use under this act at the time may 
  3.30  be considered in determining the special benefit received by the 
  3.31  properties.  All assessments are subject to final confirmation 
  3.32  by the Metropolitan Council, whose determination of the benefits 
  3.33  is conclusive upon the political subdivision levying the 
  3.34  assessment.  Notwithstanding section 272.01, subdivision 2, or 
  3.35  273.19, real or personal property leased by the authority to 
  3.36  another person for uses related to the purposes of this act, 
  4.1   including the operation of the two stadium facilities, is exempt 
  4.2   from taxation regardless of the length of the lease.  This 
  4.3   subdivision, insofar as it requires exemption or special 
  4.4   treatment, does not apply to any real property that is leased by 
  4.5   the authority for residential, business, or commercial 
  4.6   development or other purposes different from those contemplated 
  4.7   in this act. 
  4.8      Subd. 5.  [FACILITY OPERATION.] The authority may equip, 
  4.9   improve, operate, manage, maintain, and control the sports 
  4.10  facilities constructed, remodeled, or acquired under this act. 
  4.11     Subd. 6.  [DISPOSITION OF PROPERTY.] The authority may 
  4.12  sell, lease, or otherwise dispose of any real or personal 
  4.13  property acquired by it which is no longer required for 
  4.14  accomplishment of its purposes.  The property must be sold in 
  4.15  accordance with the procedures provided by section 469.065, 
  4.16  insofar as practical and consistent with this act. 
  4.17     Subd. 7.  [EMPLOYEES; CONTRACTS FOR SERVICES.] The 
  4.18  authority may employ persons and contract for services necessary 
  4.19  to carry out its functions.  The authority may employ on such 
  4.20  terms as it deems advisable persons or firms to provide traffic 
  4.21  officers to direct traffic on property under the control of the 
  4.22  authority and on the city streets in the general area of the 
  4.23  property controlled by the authority.  The traffic officers are 
  4.24  not peace officers and do not have authority to make arrests for 
  4.25  violations of traffic rules. 
  4.26     Subd. 8.  [GIFTS AND GRANTS.] The authority may accept 
  4.27  gifts of money, property, or services, may apply for and accept 
  4.28  grants or loans of money or other property from the United 
  4.29  States, the state, any subdivision of the state, or any person 
  4.30  for any of its purposes, may enter into any agreement required 
  4.31  in connection therewith, and may hold, use, and dispose of such 
  4.32  money, property, or services according to the terms of the gift, 
  4.33  grant, loan, or agreement.  In evaluating proposed gifts, 
  4.34  grants, loans, and agreements required in connection therewith, 
  4.35  the council shall examine the possible short-range and 
  4.36  long-range impact on authority revenues and authority operating 
  5.1   expenditures. 
  5.2      Subd. 9.  [RESEARCH.] The authority may conduct research 
  5.3   studies and programs, collect and analyze data, prepare reports, 
  5.4   maps, charts, and tables, and conduct all necessary hearings and 
  5.5   investigations in connection with its functions. 
  5.6      Subd. 10.  [USE AGREEMENTS.] The authority may lease, 
  5.7   license, or enter into agreements and may fix, alter, charge, 
  5.8   and collect rentals, fees, and charges to all persons for the 
  5.9   use, occupation, and availability of part or all of any 
  5.10  premises, property, or facilities under its ownership, 
  5.11  operation, or control for purposes that will provide athletic, 
  5.12  educational, cultural, commercial or other entertainment, 
  5.13  instruction, or activity for the citizens of the metropolitan 
  5.14  area and visitors.  Any such use agreement may provide that the 
  5.15  other contracting party has exclusive use of the premises at the 
  5.16  times agreed upon. 
  5.17     Subd. 11.  [INSURANCE.] The authority may require any 
  5.18  employee to obtain and file with it an individual bond or 
  5.19  fidelity insurance policy.  It may procure insurance in the 
  5.20  amounts it considers necessary against liability of the 
  5.21  authority or its officers and employees for personal injury or 
  5.22  death and property damage or destruction, with the force and 
  5.23  effect stated in chapter 466, and against risks of damage to or 
  5.24  destruction of any of its facilities, equipment, or other 
  5.25  property. 
  5.26     Subd. 12.  [CREATING A CONDOMINIUM.] The authority may, by 
  5.27  itself or together with any other entity, as to real or personal 
  5.28  property comprising or appurtenant or ancillary to the sports 
  5.29  facilities operated under this act or other law, act as a 
  5.30  declarant and establish a condominium or leasehold condominium 
  5.31  under chapter 515A, or a common interest community or leasehold 
  5.32  common interest community under chapter 515B, and may grant, 
  5.33  establish, create, or join in other or related easements, 
  5.34  agreements and similar benefits and burdens that the authority 
  5.35  may consider necessary or appropriate, and exercise any and all 
  5.36  rights and privileges and assume obligations under them as a 
  6.1   declarant, unit owner or otherwise, insofar as practical and 
  6.2   consistent with this act.  The authority may be a member of an 
  6.3   association and the chair, any commissioners and any officers 
  6.4   and employees of the authority may serve on the board of an 
  6.5   association under chapter 515A or 515B or other law. 
  6.6      Subd. 13.  [EXEMPTION FROM COUNCIL REVIEW.] The acquisition 
  6.7   and betterment of sports facilities by the authority must be 
  6.8   conducted pursuant to this act and must not be affected by the 
  6.9   provisions of sections 473.165 and 473.173. 
  6.10     Sec. 4.  [473.753] [CRITERIA AND CONDITIONS.] 
  6.11     Subdivision 1.  [BINDING AND ENFORCEABLE.] In setting 
  6.12  parameters and making decisions necessary to complete the 
  6.13  stadium process, the authority must follow and enforce the 
  6.14  criteria and conditions in subdivisions 2 to 19. 
  6.15     Subd. 2.  [TOTAL PUBLIC INVESTMENT TOWARD PROJECT 
  6.16  COSTS.] The authority must set a total public investment maximum 
  6.17  toward project costs for each stadium, including the host site's 
  6.18  government's revenue contributions. 
  6.19     Subd. 3.  [TEAM AND FAN CONTRIBUTIONS.] (a) The authority 
  6.20  must set the amount of anticipated contributions from each team 
  6.21  towards the total cost for its stadium.  Team contributions may 
  6.22  include, but are not limited to, up-front cash contributions, 
  6.23  guaranteed annual payments, assignments of naming rights and 
  6.24  permanent seat licenses, and payments of operating and 
  6.25  maintenance expenses for the team's stadium.  Each team's 
  6.26  contribution must be no less than one third of its team's 
  6.27  stadium's project costs.  The authority may attempt to structure 
  6.28  each team's investment to maximize benefits both to the public 
  6.29  and to the teams.  In addition to any other team contribution, 
  6.30  each team must assume and pay when due all cost overruns for its 
  6.31  stadium.  
  6.32     (b) The authority may negotiate to receive, for 
  6.33  pass-through to the Metropolitan Council, fan contributions 
  6.34  imposed, assessed, and collected by the authority and the host 
  6.35  communities for deposit in the stadiums' debt service account.  
  6.36  Fan contributions may include ticket taxes, parking surcharges, 
  7.1   personal seat licenses, private placement bonds, sports cable 
  7.2   television surcharges, commemorative stadium stock or bricks, 
  7.3   team license plates, and the like. 
  7.4      (c) The team and fan contributions must be deposited in the 
  7.5   state treasury and are appropriated to the Metropolitan Council 
  7.6   for payment of principal and interest on the revenue bonds 
  7.7   issued under this act and chapter 475. 
  7.8      Subd. 4.  [RESERVE FOR CAPITAL IMPROVEMENTS.] The authority 
  7.9   may require that a reserve fund for capital improvements to the 
  7.10  stadium be set up and may require the teams and the host 
  7.11  communities' governments to contribute to the fund in a manner 
  7.12  and on the terms the authority determines. 
  7.13     Subd. 5.  [LEASE OR USE AGREEMENTS.] The authority must 
  7.14  negotiate long-term lease or use agreements with each team for 
  7.15  its use of one of the stadiums.  Each team must schedule and 
  7.16  play all regular season and postseason home games at its 
  7.17  stadium.  Preseason games may also be scheduled and played at 
  7.18  the stadium.  The lease or use agreements must be for a term of 
  7.19  the lesser of 30 years or until the last of the bonds issued to 
  7.20  fund the stadium are retired or defeased.  The lease must 
  7.21  include terms for default, termination, and breach of the 
  7.22  facility lease.  The leases must require specific performance 
  7.23  and must not include escape clauses or buyout provisions. 
  7.24     Subd. 6.  [GUARANTEE OF PAYMENT OF ALL OBLIGATIONS.] The 
  7.25  authority must ensure that a guarantee of payment of each 
  7.26  obligation due under the lease or use agreement is in place at 
  7.27  the time of execution of the obligation in a form satisfactory 
  7.28  to the authority.  The guarantee may be in the form of a letter 
  7.29  of credit, personal guarantees, or other surety as determined by 
  7.30  the authority.  
  7.31     Subd. 7.  [TITLE TO ALL LAND AND AIR RIGHTS.] The authority 
  7.32  must have title to all land and air rights needed for 
  7.33  construction and operation of the facilities. 
  7.34     Subd. 8.  [ENFORCEABLE FINANCIAL COMMITMENTS.] The 
  7.35  Metropolitan Stadium Authority must determine before 
  7.36  construction begins that all public and private funding sources 
  8.1   for construction and operation of each stadium are officially 
  8.2   committed in writing and enforceable.  The committed funds must 
  8.3   be adequate to site, design, construct, furnish, equip, and 
  8.4   service the facilities' debt, as well as to pay for the ongoing 
  8.5   operation and maintenance of the respective baseball and 
  8.6   football facilities. 
  8.7      Subd. 9.  [ENVIRONMENTAL REQUIREMENTS.] The authority must 
  8.8   ensure that environmental requirements imposed by appropriate 
  8.9   regulatory agencies for each stadium, site, and structure are 
  8.10  complied with.  
  8.11     Subd. 10.  [PUBLIC INFRASTRUCTURE.] The authority must 
  8.12  ensure that all necessary and reasonably appropriate public 
  8.13  infrastructure is financed and constructed by the time of 
  8.14  completion of the respective baseball and football facilities.  
  8.15     Subd. 11.  [PRICE, COMPLETION DATE, PERFORMANCE, PAYMENT 
  8.16  BONDS.] Before construction begins, the authority must have 
  8.17  executed contracts in hand certifying construction price and 
  8.18  completion date that include performance and payment bonds that 
  8.19  cover any costs over the certified price for the facility 
  8.20  contracted for. 
  8.21     Subd. 12.  [PUBLIC SHARE OF VALUE ADDED BY STADIUM UPON 
  8.22  SALE.] The authority must seek a provision in the lease or use 
  8.23  agreements that provides that if a franchise is sold during the 
  8.24  term of the agreement, then any portion of the sale price that 
  8.25  is attributable to development of the stadium used by the 
  8.26  franchise's team with public money must be returned to the 
  8.27  public for deposit in a reserve fund for improvements to the 
  8.28  stadium. 
  8.29     Subd. 13.  [FINANCE COMMISSIONER APPROVAL.] The authority 
  8.30  must transmit the financing documents and lease or use agreement 
  8.31  to the commissioner of finance and the commissioner of finance 
  8.32  must approve the financing document and the lease or use 
  8.33  agreements before the issuance of any bonds to finance the 
  8.34  construction of the stadiums. 
  8.35     Subd. 14.  [USE FOR AMATEUR SPORTS.] The authority must 
  8.36  ensure that the lease or use agreements for the stadiums provide 
  9.1   for a reasonable amount of use for amateur sports. 
  9.2      Subd. 15.  [AFFORDABLE ACCESS.] The authority must ensure 
  9.3   that the lease or use agreements provide for affordable access 
  9.4   to the respective professional sporting events held in these 
  9.5   facilities. 
  9.6      Subd. 16.  [ATTENDANCE INCENTIVES.] The authority may 
  9.7   negotiate a provision in the lease or use agreements that 
  9.8   provide incentives for the teams to increase attendance at their 
  9.9   sporting events. 
  9.10     Subd. 17.  [SELLOUT SPONSOR IF POSSIBLE.] The authority 
  9.11  must make reasonable efforts to seek a sponsoring organization 
  9.12  to purchase all football game tickets not sold shortly before a 
  9.13  home game.  
  9.14     Subd. 18.  [USE OF BOND PROCEEDS.] The authority must 
  9.15  ensure and confirm to the Metropolitan Council that all bond 
  9.16  proceeds from bonds authorized by this act must be used to site, 
  9.17  design, construct, or furnish the facilities.  
  9.18     Subd. 19.  [NO STRIKES.] The authority must negotiate an 
  9.19  agreement to prevent strikes that would halt, delay, or impede 
  9.20  construction of the respective baseball and football facilities. 
  9.21     Sec. 5.  [473.754] [LOCAL TAXES.] 
  9.22     A local government that is a host community to a stadium 
  9.23  may impose a ticket tax; a tax on restaurants, places of 
  9.24  amusement, alcoholic beverages, or prepared food; or a tax on 
  9.25  lodging; or any of them; a tax on sports memorabilia sold within 
  9.26  the stadium facilities; or may add to a general sales and use 
  9.27  tax on goods and services within its jurisdiction 
  9.28  notwithstanding section 477A.016 if approved by the authority 
  9.29  and subject to subsequent enactment of a law complying with 
  9.30  section 297A.99; all to provide local government revenues to 
  9.31  finance a stadium project under this act.  
  9.32     Sec. 6.  [473.755] [LOCAL TAX INCREMENT FINANCING; 
  9.33  DEVELOPMENT RIGHTS.] 
  9.34     A local unit of government that is a host community for a 
  9.35  stadium may use local tax increment financing or sale of 
  9.36  development rights as otherwise provided by law to help complete 
 10.1   the stadium project. 
 10.2      Sec. 7.  [473.756] [STADIUM TAX INCREMENT COMPUTATION.] 
 10.3      (a) The authority may negotiate with the teams for the 
 10.4   capture of stadium tax increments as provided in this section.  
 10.5      (b) For any year during which major league baseball or 
 10.6   National Football League games are played in one or the other 
 10.7   new stadium, the commissioner of revenue may, by March 1 of each 
 10.8   year, certify the amount of stadium taxes collected in the 
 10.9   previous calendar year and the amount by which those taxes are 
 10.10  in excess of a baseline tax amount.  A negotiated amount, no 
 10.11  greater than the amount of stadium taxes that are certified by 
 10.12  the commissioner as being in excess of the baseline tax amount 
 10.13  must be deposited in a debt service account in the state 
 10.14  treasury and is appropriated each year to the Metropolitan 
 10.15  Council to pay principal and interest on revenue bonds issued 
 10.16  for each of the new stadiums.  Any stadium taxes in excess of 
 10.17  the negotiated amount must be deposited in the state's general 
 10.18  fund. 
 10.19     (c) For baseball, the stadium taxes are the taxes collected 
 10.20  for events at the new baseball stadium.  Each year baseball 
 10.21  stadium taxes equal the sum of (1) the withholding taxes due in 
 10.22  a calendar year pursuant to section 290.92 by major league 
 10.23  baseball teams, and (2) the sales tax on ticket sales for 
 10.24  admission to baseball-related events at the baseball stadium and 
 10.25  sales tax remitted by vendors and concessionaires for sales at 
 10.26  baseball-related events occurring at the baseball stadium in a 
 10.27  calendar year.  For baseball, the baseline tax amount is the 
 10.28  average annual amount of stadium taxes as determined in this 
 10.29  paragraph for baseball games or related events held in the 
 10.30  Metrodome in the three calendar years before the opening of the 
 10.31  new stadium.  The sales tax for baseball-related events 
 10.32  occurring at the baseball stadium must be reported in the manner 
 10.33  prescribed by the commissioner of revenue. 
 10.34     (d) For football, the stadium taxes are the taxes collected 
 10.35  at the designated football stadium district.  Each year, 
 10.36  football stadium taxes equal the sum of (1) the withholding 
 11.1   taxes due in a calendar year pursuant to section 290.92 by 
 11.2   National Football League teams, and (2) the sales tax on ticket 
 11.3   sales for admission to football-related events at the football 
 11.4   stadium and sales tax remitted by vendors and concessionaires 
 11.5   for sales at football-related events occurring at the football 
 11.6   stadium in a calendar year.  For football, the baseline tax 
 11.7   amount is the average amount of stadium taxes as determined in 
 11.8   this paragraph for football games or related events held in the 
 11.9   Metrodome in the three calendar-year period before opening of 
 11.10  the new stadium.  The sales tax for football-related events 
 11.11  occurring at the football stadium must be reported in the manner 
 11.12  prescribed by the commissioner of revenue. 
 11.13     (e) In the event that the excess stadium tax revenue is 
 11.14  less than the negotiated amount, the team shall pay the amount 
 11.15  of the deficiency. 
 11.16     Sec. 8.  [473.557] [SECURITY.] 
 11.17     Subdivision 1.  [BONDS.] The Metropolitan Council, on 
 11.18  behalf of the Minnesota Stadium Authority, may by resolution 
 11.19  authorize the sale and issuance of its bonds for any or all of 
 11.20  the following purposes: 
 11.21     (1) to provide funds to predesign, design, construct, 
 11.22  furnish, equip, and otherwise better the sports facilities owned 
 11.23  or to be owned by the authority pursuant to this act; 
 11.24     (2) to refund bonds issued hereunder; and 
 11.25     (3) to fund judgments entered by any court against the 
 11.26  authority or against the council in matters relating to the 
 11.27  authority's functions related to the sports facilities. 
 11.28     Subd. 2.  [PROCEDURE.] The bonds shall be sold, issued, and 
 11.29  secured in the manner provided in chapter 475, for bonds payable 
 11.30  solely from revenues, except as otherwise provided in this act, 
 11.31  and the council shall have the same powers and duties as a 
 11.32  municipality and its governing body in issuing bonds under that 
 11.33  chapter.  The bonds may be sold at any price and at public or 
 11.34  private sale as determined by the council.  They shall be 
 11.35  payable solely from tax and other revenues referred to in this 
 11.36  act.  The bonds shall not be a general obligation or debt of the 
 12.1   council or of the authority, and shall not be included in the 
 12.2   net debt of any city, county, or other subdivision of the state 
 12.3   for the purpose of any net debt limitation.  No election shall 
 12.4   be required.  
 12.5      Subd. 3.  [LIMITATIONS.] The principal amount of the bonds 
 12.6   issued pursuant to subdivision 1, clause (1), shall not exceed 
 12.7   the amounts hereinafter authorized.  If the authority's proposal 
 12.8   and the construction contracts referred to in this act provide 
 12.9   for the construction of two major league sports stadiums as 
 12.10  provided in this act, the principal amount of bonds issued 
 12.11  pursuant to subdivision 1, clause (1), shall be limited to 
 12.12  $........  The council shall issue its bonds and construction of 
 12.13  sports facilities may commence when the council has made the 
 12.14  determinations in this subdivision.  The bonds may be issued 
 12.15  separately for each stadium or in other segments as necessary or 
 12.16  desirable to accomplish the projects.  Bonds may be issued for 
 12.17  only one stadium facility after one stadium project is agreed to 
 12.18  by the parties involved so long as the amount of bonds issued 
 12.19  does not exceed the cost of the project for which they are 
 12.20  issued.  Bonds for the second stadium project may be issued when 
 12.21  and if agreement is reached as to the second stadium project.  
 12.22     (a) The authority has executed long-term lease or use 
 12.23  agreements with each team for its use of one of the stadiums.  
 12.24  Each team must schedule and play all regular season and 
 12.25  postseason home games at its stadium.  Preseason games may also 
 12.26  be scheduled and played at the stadium.  The lease or use 
 12.27  agreements must be for a term of the lesser of 30 years or until 
 12.28  the last of the bonds issued to fund the stadium are retired or 
 12.29  defeased.  The lease must include terms for default, 
 12.30  termination, and breach of the facility lease.  The leases must 
 12.31  require specific performance and must not include escape clauses 
 12.32  or buyout provisions.  
 12.33     (b) The authority has executed agreements with professional 
 12.34  baseball and football major leagues which guarantee the 
 12.35  continuance of franchises in the metropolitan area for the 
 12.36  period of the agreements referred to in paragraph (a).  
 13.1      (c) The proceeds of bonds provided for in this subdivision 
 13.2   will be sufficient, together with other capital funds that may 
 13.3   be available to the authority for expenditures on the sports 
 13.4   facilities, to carry out the projects for which the proceeds 
 13.5   were intended as proposed by the authority, including the 
 13.6   appropriate professional fees and charges but excluding, except 
 13.7   as otherwise provided in this subdivision, the acquisition, 
 13.8   clearance, relocation, and legal costs referred to in paragraphs 
 13.9   (d) and (e).  
 13.10     (d) The authority has acquired, without cost to the 
 13.11  authority or the council except as provided in this subdivision, 
 13.12  title to all real property including all easements and other 
 13.13  appurtenances needed for the construction and operation of the 
 13.14  stadium facilities or has received a grant of funds or has 
 13.15  entered into agreements sufficient in the judgment of the 
 13.16  council to assure the receipt of funds, at the time and in the 
 13.17  amount required, to make any payment upon which the authority's 
 13.18  acquisition of title and possession of the real property is 
 13.19  conditioned.  
 13.20     (e) The authority has received a grant of funds or entered 
 13.21  into agreements sufficient in the judgment of the council to 
 13.22  assure the receipt of funds, at the time and in the amount 
 13.23  required, to pay all costs, except as provided in this 
 13.24  subdivision, of clearing the real property needed for the 
 13.25  construction and operation of all sports facilities, railroad 
 13.26  tracks and other structures, including, without limitation, all 
 13.27  relocation costs, all utility relocation costs, and all legal 
 13.28  costs.  
 13.29     (f) The authority has executed agreements to prevent 
 13.30  strikes that would halt, delay, or impede construction of the 
 13.31  respective baseball and football facilities. 
 13.32     (g) The authority has executed agreements which will 
 13.33  provide for the construction of the sports facilities for a 
 13.34  certified construction price and completion date and which 
 13.35  include performance bonds in an amount at least equal to 100 
 13.36  percent of the certified price to cover any costs which may be 
 14.1   incurred over and above the certified price, including but not 
 14.2   limited to costs incurred by the authority or loss of revenues 
 14.3   resulting from incomplete construction on the completion date.  
 14.4      (h) The anticipated revenue from the operation of the 
 14.5   sports facilities plus any additional available revenue of the 
 14.6   authority will be an amount sufficient to pay when due all debt 
 14.7   service plus all administration, operating and maintenance 
 14.8   expense.  
 14.9      (i) The validity of any bonds issued under subdivision 1, 
 14.10  clause (a), and the obligations of the council and authority 
 14.11  related to them, shall not be conditioned upon or impaired by 
 14.12  the council's determinations made pursuant to this subdivision.  
 14.13  For purposes of issuing the bonds the determinations made by the 
 14.14  council shall be deemed conclusive, and the council shall be and 
 14.15  remain obligated for the security and payment of the bonds 
 14.16  irrespective of determinations which may be erroneous, 
 14.17  inaccurate, or otherwise mistaken.  
 14.18     Subd. 4.  [SECURITY.] To the extent and in the manner 
 14.19  provided in this act, the taxes described in this act, the tax 
 14.20  and other revenues of the authority described in this act, and 
 14.21  any other revenues of the authority attributable to the sports 
 14.22  facilities, including team and local host's communities 
 14.23  contributions, shall be and remain pledged and appropriated to 
 14.24  the authority or to the Metropolitan Council, as appropriate for 
 14.25  the payment of all necessary and reasonable expenses of the 
 14.26  operation, administration, maintenance, and debt service of the 
 14.27  sports facilities until all bonds and certificates issued 
 14.28  pursuant to this section are fully paid or discharged in 
 14.29  accordance with law.  Bonds issued pursuant to this section may 
 14.30  be secured by a bond resolution, or by a trust indenture entered 
 14.31  into by the council with a corporate trustee within or outside 
 14.32  the state, which shall define the tax, team and fan 
 14.33  contributions, and other sports facility revenues pledged for 
 14.34  the payment and security of the bonds.  The pledge shall be a 
 14.35  valid charge on the tax and other revenues referred to in this 
 14.36  act from the date when bonds are first issued or secured under 
 15.1   the resolution or indenture and shall secure the payment of 
 15.2   principal and interest and redemption premiums when due and the 
 15.3   maintenance at all times of a reserve securing such payments.  
 15.4   No mortgage of or security interest in any tangible real or 
 15.5   personal property shall be granted to the bondholders or the 
 15.6   trustee, but they shall have a valid security interest in all 
 15.7   tax and other revenues received and accounts receivable by the 
 15.8   authority or council hereunder, as against the claims of all 
 15.9   other persons in tort, contract, or otherwise, irrespective of 
 15.10  whether such parties have notice thereof, and without possession 
 15.11  or filing as provided in the Uniform Commercial Code or any 
 15.12  other law.  In the bond resolution or trust indenture the 
 15.13  council may make such covenants, which shall be binding upon the 
 15.14  authority, as are determined to be usual and reasonably 
 15.15  necessary for the protection of the bondholders.  No pledge, 
 15.16  mortgage, covenant, or agreement securing bonds may be impaired, 
 15.17  revoked, or amended by law or by action of the council, 
 15.18  authority, site city or county, except in accordance with the 
 15.19  terms of the resolution or indenture under which the bonds are 
 15.20  issued, until the obligations of the council thereunder are 
 15.21  fully discharged. 
 15.22     Subd. 5.  [CONDITIONAL ARBITRAGED ENDOWMENT ACCOUNT.] (a) 
 15.23  If, as a part of a negotiated agreement with a team and its host 
 15.24  local communities, the option to use an arbitrage model to raise 
 15.25  revenue is agreed to under this act, the authority, with the 
 15.26  approval of the commissioner of finance may issue up to $....... 
 15.27  of revenue bonds for this purpose.  The proceeds of the bonds 
 15.28  must be deposited in an endowment account to be invested as 
 15.29  provided in paragraphs (b) and (c) after the amount necessary to 
 15.30  pay when due the debt service on the bonds issued under this 
 15.31  section is deposited in a debt service account.  The balance on 
 15.32  hand in the endowment account after all the bonds issued under 
 15.33  this section have been retired or defeased may be used for 
 15.34  retiring of the debt incurred for stadium purposes under this 
 15.35  act, for stadium improvements, or for other stadium-related 
 15.36  purposes as agreed to by the parties.  Other revenue from gifts 
 16.1   or grants for those purposes, or as otherwise authorized by law, 
 16.2   may be deposited in the endowment fund for investment and 
 16.3   disposition as provided in this section. 
 16.4      (b) The State Board of Investment shall contract with the 
 16.5   investment advisors specified by the team to invest money in the 
 16.6   endowment account.  The account must be invested in authorized 
 16.7   investments under section 11A.24, except (1) corporate 
 16.8   obligations described in section 11A.24, subdivision 3, 
 16.9   paragraph (b), and (2) investments described in section 11A.24, 
 16.10  subdivision 6, paragraph (a), clauses (1) to (4). 
 16.11     (c) The commissioner of finance shall review the investment 
 16.12  performance of the account at the end of the second year after 
 16.13  each stadium begins operations and every four years thereafter.  
 16.14  The commissioner shall require the authority as owner of the 
 16.15  stadium to impose a surcharge on admissions to events at the 
 16.16  stadium in one-half of one percent increments, not to exceed 
 16.17  five percent, in an amount sufficient to equal the money that 
 16.18  would be in the fund, if an 8.5 percent annual rate of return 
 16.19  had been earned.  Notwithstanding the preceding sentence, the 
 16.20  commissioner shall set the required rate of return for the first 
 16.21  four years after the account is established.  If the rate of 
 16.22  return on the fund during the period exceeded 8.5 percent, the 
 16.23  commissioner may use the excess to retire or defease the 
 16.24  Metropolitan Council's bonds for the stadium issued as 
 16.25  authorized in this act. 
 16.26     Subd. 6.  [NO FULL FAITH AND CREDIT.] Any bonds or other 
 16.27  obligations issued by the council under this act are not public 
 16.28  debt of the state, and the full faith and credit and taxing 
 16.29  powers of the state are not pledged for their payment or of any 
 16.30  payments that the state agrees to make under this act. 
 16.31     Subd. 7.  [AUTHORITY NOT AFFECTED BY TAXABILITY OF 
 16.32  INTEREST.] The bonds authorized by this act may be issued 
 16.33  without regard to whether the interest to be paid on them is 
 16.34  gross income for federal tax purposes. 
 16.35     Sec. 9.  [473.558] [NEGOTIATION DEADLINE.] 
 16.36     The authority to negotiate and enter into agreements with 
 17.1   the teams and host communities under this act expires December 
 17.2   31, 2004, for baseball and December 31, 2006, for football. 
 17.3      Sec. 10.  [REPEALER.] 
 17.4      Minnesota Statutes 2002, sections 473I.01; 473I.02; 
 17.5   473I.03; 473I.04; 473I.05; 473I.06; 473I.07; 473I.08; 473I.09; 
 17.6   473I.10; 473I.11; 473I.12; and 473I.13, are repealed.