HF 3659

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to baseball, Hennepin county, the 
  1.3             metropolitan sports facilities commission, and the 
  1.4             city of Minneapolis; authorizing the county to finance 
  1.5             construction of an open air roof-ready baseball park; 
  1.6             authorizing the county to levy and collect certain 
  1.7             taxes; authorizing the county to issue bonds and 
  1.8             expend certain funds, including taxes, to finance the 
  1.9             acquisition and betterment of a baseball park and 
  1.10            related facilities; authorizing a transfer of certain 
  1.11            revenues related to the ballpark to the county; 
  1.12            amending Minnesota Statutes 2000, sections 297A.68, by 
  1.13            adding a subdivision; 297A.71, by adding a 
  1.14            subdivision; 473.553, subdivision 2. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  [PURPOSE; FINDINGS.] 
  1.17     The legislature finds that construction of a new major 
  1.18  league baseball park in the city of Minneapolis serves a public 
  1.19  purpose.  The legislature finds that the public purpose served 
  1.20  includes retaining the Minnesota Twins as a part of Minnesota's 
  1.21  public amenities for its citizens and as a major attraction to 
  1.22  visitors to the state, adding to the economic development of the 
  1.23  state and the county, attracting revenue from out of the state, 
  1.24  and preserving the contributions of baseball to the culture of 
  1.25  Minnesota and to the enjoyment of its citizens.  Further, the 
  1.26  legislature finds that a major league baseball park may be 
  1.27  financed as a public-private partnership between the state, 
  1.28  Hennepin county, the Minnesota Twins, and such other supporting 
  1.29  interests as may contribute to the construction of the baseball 
  1.30  park and related facilities.  The legislature further finds that 
  2.1   a new ballpark should be coordinated with transit plans and 
  2.2   activities. 
  2.3      Sec. 2.  [DEFINITIONS.] 
  2.4      For the purposes of this act, the following terms have the 
  2.5   meanings given them. 
  2.6      (a) "Commission" means the metropolitan sports facilities 
  2.7   commission operating under Minnesota Statutes, sections 473.551 
  2.8   to 473.599, and any successor to its functions. 
  2.9      (b) "County" means the county of Hennepin. 
  2.10     (c) "Ballpark" means an open air roof-ready ballpark 
  2.11  suitable for major league baseball located in the city of 
  2.12  Minneapolis, including all property, real or personal, tangible 
  2.13  or intangible, intended to be used as part of the stadium or 
  2.14  additions to or extensions of it. 
  2.15     (d) "Related facilities" means all property, real or 
  2.16  personal, tangible or intangible, that is determined by the 
  2.17  county to facilitate the use of the ballpark, including, but not 
  2.18  limited to, property for parking, pedestrian needs, transit, 
  2.19  skyways, lighting, landscaping, utilities, street facilities, 
  2.20  and land acquired and prepared for private redevelopment in a 
  2.21  manner related to use of the ballpark. 
  2.22     (e) "Downtown taxing area" means the geographic area within 
  2.23  the city of Minneapolis bounded by the portion of the 
  2.24  Mississippi River between I-35W and Washington Avenue, the 
  2.25  portion of Washington Avenue between the river and I-35W, the 
  2.26  portion of I-35W between Washington Avenue and 8th Street South, 
  2.27  the portion of 8th Street South between I-35W and Portland 
  2.28  Avenue South, the portion of Portland Avenue South between 8th 
  2.29  Street South and I-94, the portion of I-94 from the intersection 
  2.30  of Portland Avenue South to the intersection of I-94 and the 
  2.31  Burlington Northern Railroad tracks, the portion of the 
  2.32  Burlington Northern Railroad tracks from I-94 to University 
  2.33  Avenue N.E. and including Nicollet Island, and the portion of 
  2.34  University Avenue N.E. and S.E. from the Burlington Northern 
  2.35  Railroad tracks to I-35W, and by I-35W from University Avenue 
  2.36  S.E. to the river. 
  3.1      (f) "Eligible private entity" means a corporation or 
  3.2   limited liability company approved by the county which has 
  3.3   agreed to provide at least $50,000,000 for the construction of 
  3.4   the ballpark. 
  3.5      Sec. 3.  [ACTIVITIES; CONTRACTS.] 
  3.6      The county may acquire, design, construct, equip, improve, 
  3.7   control, operate, and maintain the ballpark and related 
  3.8   facilities.  The county shall have all powers necessary or 
  3.9   convenient for those purposes and may enter into any contract 
  3.10  for those purposes, including the financing of the ballpark and 
  3.11  any related facilities, and the leasing of the land or ballpark 
  3.12  or related facilities to the Minnesota Twins, an eligible 
  3.13  private entity, and other entities on such terms, including 
  3.14  purchase or lease extension options, as the county may approve. 
  3.15     The county may contract for construction materials, 
  3.16  supplies, and equipment in accordance with Minnesota Statutes, 
  3.17  section 471.345, except that it may enter into contracts 
  3.18  pursuant to Minnesota Statutes, section 383B.145, subdivision 4, 
  3.19  with persons, firms, or corporations to perform one or more or 
  3.20  all of the functions of architect, engineer, and construction 
  3.21  manager with respect to all or part of a project to build or 
  3.22  remodel the ballpark and related facilities.  Contractors shall 
  3.23  be selected through the process of public bidding, provided that 
  3.24  it shall be permissible for the county to narrow the listing of 
  3.25  eligible bidders to those which the county determines to possess 
  3.26  sufficient expertise to perform the intended functions and the 
  3.27  county may negotiate with the three lowest responsible bidders 
  3.28  to achieve the lowest possible bid.  The county may require any 
  3.29  construction manager to certify a construction price and 
  3.30  completion date to the county.  The county may require the 
  3.31  posting of a bond in an amount determined by the county to cover 
  3.32  any costs which may be incurred over and above the certified 
  3.33  price, including, but not limited to, costs incurred by the 
  3.34  county or loss of revenues resulting from incomplete 
  3.35  construction on the completion date, and any other obligations 
  3.36  the county may require the construction manager to bear.  The 
  4.1   county shall secure surety bonds as required in Minnesota 
  4.2   Statutes, section 574.26, securing payment of just claims in 
  4.3   connection with all public work undertaken by it.  Persons 
  4.4   entitled to the protection of the bonds may enforce them as 
  4.5   provided in Minnesota Statutes, sections 574.28 to 574.32, and 
  4.6   shall not be entitled to a lien on any property of the county 
  4.7   under the provisions of Minnesota Statutes, sections 514.01 to 
  4.8   514.16. 
  4.9      Sec. 4.  [EXEMPTION OF PROPERTY.] 
  4.10     Any real or personal property acquired, owned, leased, 
  4.11  controlled, used, occupied, or financed by the county or other 
  4.12  person or entity for any of the purposes of this act is declared 
  4.13  to be acquired, owned, leased, controlled, used, and occupied 
  4.14  for public, governmental, and municipal purposes, and is exempt 
  4.15  from ad valorem taxation by the state or any political 
  4.16  subdivision of the state.  But such properties are subject to 
  4.17  special assessments levied by a political subdivision for a 
  4.18  local improvement in an amount proportionate to and not 
  4.19  exceeding the special benefit received by the properties from 
  4.20  the improvement.  No possible use of any such properties in any 
  4.21  manner different from their use under this act at the time may 
  4.22  be considered in determining the special benefit received by the 
  4.23  properties.  All assessments are subject to final confirmation 
  4.24  by the governing body of the political subdivision, whose 
  4.25  determination of the benefits is conclusive upon the political 
  4.26  subdivision levying the assessment.  Notwithstanding any 
  4.27  provisions of Minnesota Statutes, section 272.01, subdivision 2, 
  4.28  or 273.19, real or personal property leased by the county or 
  4.29  other owner of the stadium to another person for uses related to 
  4.30  the purposes of this act, is exempt from taxation regardless of 
  4.31  the length of the lease. 
  4.32     Sec. 5.  [CONDOMINIUM.] 
  4.33     The county may, by itself or together with the commission 
  4.34  or other owner, and any other public or private person or 
  4.35  entity, as to real or personal property comprising or 
  4.36  appurtenant or ancillary to the ballpark, act as a declarant and 
  5.1   establish a condominium or leasehold condominium under Minnesota 
  5.2   Statutes, chapter 515A, or as a common interest community or 
  5.3   leasehold common interest community under Minnesota Statutes, 
  5.4   chapter 515B, and may grant, establish, create, or join in other 
  5.5   or related easements, agreements, and similar benefits and 
  5.6   burdens that the county may deem necessary or appropriate, and 
  5.7   may exercise any and all rights and privileges, and assume 
  5.8   obligations under them as a declarant, unit owner, or otherwise, 
  5.9   insofar as practical and consistent with this act.  The county 
  5.10  or commission or other owner of the ballpark may be a member of 
  5.11  an association and the chair, any commissioners, and any 
  5.12  officers and employees of the county or commission may serve on 
  5.13  the board of an association under Minnesota Statutes, chapter 
  5.14  515A or 515B. 
  5.15     Sec. 6.  [INTERGOVERNMENTAL AGREEMENTS.] 
  5.16     The state or any agency of the state, the county, the 
  5.17  Hennepin county regional railroad authority, the Hennepin county 
  5.18  housing and redevelopment authority, the metropolitan sports 
  5.19  facilities commission, the metropolitan council, the city of 
  5.20  Minneapolis, the Minneapolis community development agency, or 
  5.21  any other public agency or any of the public entities in this 
  5.22  list may enter into agreements relating to the acquisition, 
  5.23  construction, maintenance, operation, and financing of the 
  5.24  ballpark or any related facilities, including agreements whereby 
  5.25  one or more of such other entities may exercise the powers of 
  5.26  the county granted by this act.  If another subdivision issues 
  5.27  bonds that the county is authorized to issue under this act, the 
  5.28  county may agree to provide funds for payment of the bond that 
  5.29  the county otherwise would have been required to pay if it had 
  5.30  issued the bonds. 
  5.31     Sec. 7.  [EXEMPTION FROM COUNCIL REVIEW; BUSINESS SUBSIDY 
  5.32  ACT.] 
  5.33     The acquisition and betterment of the ballpark must be 
  5.34  conducted pursuant to this act and is not affected by Minnesota 
  5.35  Statutes, section 473.173.  Minnesota Statutes, section 
  5.36  116J.994, does not apply to any transactions of the county or 
  6.1   the commission related to the ballpark or to any tenant or other 
  6.2   users of the ballpark. 
  6.3      Sec. 8.  [SPECIAL TAX AND REVENUE-SUPPORTED BONDS.] 
  6.4      (a) The county may by resolution authorize, sell, and issue 
  6.5   up to $205,000,000 in principal amount of bonds to finance all 
  6.6   or a portion of the costs of acquisition or betterment of the 
  6.7   ballpark and any related facilities.  The county may also by 
  6.8   resolution issue bonds to refund the bonds issued pursuant to 
  6.9   this act.  The bonds may be general or limited obligations, or 
  6.10  both.  The bonds may be paid from or secured by any funds 
  6.11  available to the county, including taxes levied and revenues to 
  6.12  become available under section 9.  Bonds may be issued in one or 
  6.13  more series and sold without an election.  If the bonds are 
  6.14  general obligations of the county, the county board must have 
  6.15  determined that such taxes and revenues designated as the 
  6.16  primary revenue of payment are estimated to be sufficient to pay 
  6.17  principal and interest when due.  The bonds must be sold in the 
  6.18  manner provided by Minnesota Statutes, section 475.60.  The 
  6.19  bonds must be secured, bear the interest rates, have the rank or 
  6.20  priority, be executed in the manner, be payable in the manner, 
  6.21  mature, and be subject to the defaults, redemptions, 
  6.22  repurchases, tender options, or other terms, as the county may 
  6.23  determine.  The county may enter into and perform all contracts 
  6.24  deemed necessary or desirable by it to issue and secure the 
  6.25  bonds, including an indenture of trust with a trustee within or 
  6.26  without the state. 
  6.27     (b) Costs of acquisition and betterment referred to in this 
  6.28  act include: 
  6.29     (1) costs of acquisition or betterment referred to in 
  6.30  Minnesota Statutes, section 475.65; 
  6.31     (2) capitalized interest for a period not longer than 36 
  6.32  months; 
  6.33     (3) any underwriter discount and issuance expenses; 
  6.34     (4) reserves for debt service, repair, or operations; and 
  6.35     (5) costs for credit enhancement of the bonds. 
  6.36     (c) The debt represented by the bonds must not be included 
  7.1   in computing any debt limit applicable to the county.  Subject 
  7.2   to this section, bonds authorized by this section must be sold, 
  7.3   issued, and secured in the manner provided in Minnesota 
  7.4   Statutes, chapter 475. 
  7.5      Sec. 9.  [TAXES AND REVENUES.] 
  7.6      Subdivision 1.  [LOCAL TAXES.] (a) The county may, by 
  7.7   resolution, levy in addition to taxes authorized by other law: 
  7.8      (1) a sales tax at the rate of not more than two percent on 
  7.9   the gross receipts on retail on-sales of intoxicating liquor and 
  7.10  fermented malt beverages described in Minnesota Statutes, 
  7.11  section 473.592, occurring in the downtown taxing area, but the 
  7.12  tax authorized in this clause may not be imposed if sales of 
  7.13  intoxicating liquor and fermented malt beverages are exempt from 
  7.14  taxation under Minnesota Statutes, chapter 297A; 
  7.15     (2) a sales tax at the rate of not more than one percent on 
  7.16  the gross receipts from the furnishing for consideration of 
  7.17  lodging described in Minnesota Statutes, section 473.592, by a 
  7.18  hotel or motel that has more than 50 rooms available for 
  7.19  lodging, the tax authorized in this clause must not be included 
  7.20  in determining the amount of sales tax imposed on lodging in the 
  7.21  city of Minneapolis for purposes of the limitation contained in 
  7.22  Laws 1986, chapter 396, section 5; 
  7.23     (3) a sales tax at the rate of not more than two percent on 
  7.24  the gross receipts on all sales of food primarily for 
  7.25  consumption on or off the premises by restaurants and places of 
  7.26  refreshment as defined by resolution of the county that occur 
  7.27  within the downtown taxing area; 
  7.28     (4) a sales tax at the rate of not more than six percent of 
  7.29  the sale or price on the lease or rental entered into in the 
  7.30  county of Hennepin for not more than 28 days of a passenger 
  7.31  automobile as defined in Minnesota Statutes, section 168.011, 
  7.32  subdivision 7, a van as defined in Minnesota Statutes, section 
  7.33  168.011, subdivision 28, or a pickup truck as defined in 
  7.34  Minnesota Statutes, section 168.011, subdivision 29, on which 
  7.35  the tax applies whether or not the vehicle is licensed in the 
  7.36  state, but does not apply to a lease or rental provided for in 
  8.1   Minnesota Statutes, section 297A.64, subdivision 4, paragraph 
  8.2   (a); 
  8.3      (5) a tax at the rate of not more than 6.5 percent of the 
  8.4   ticket price on the sale of admission or the granting, issuance, 
  8.5   sale, or distribution, by any private or public person, 
  8.6   association, or corporation, of the privilege of admission to 
  8.7   activities at the ballpark, which ticket surcharge must be 
  8.8   stated and charged separately from the sales price so far as 
  8.9   practicable and must be collected by the grantor, issuer, 
  8.10  seller, or distributor from the person admitted and is a debt 
  8.11  from that person to the grantor, issuer, seller, or distributor, 
  8.12  and the tax required to be collected is a debt owed by the 
  8.13  grantor, issuer, seller, or distributor to the county.  No other 
  8.14  tax, surcharge, or governmental imposition, except the taxes 
  8.15  imposed by Minnesota Statutes, chapter 297A, may be levied by 
  8.16  any other unit of government upon any such sale or disposition 
  8.17  and the combined rate of any taxes authorized in this clause and 
  8.18  Minnesota Statutes, chapter 297A, does not exceed the general 
  8.19  sales tax rate under Minnesota Statutes, chapter 297A. 
  8.20     (b) The taxes authorized in paragraph (a) must be applied 
  8.21  solely to pay costs of collection and to pay or secure the 
  8.22  payment of any principal of, premium and interest on any bonds 
  8.23  or any costs referred to in section 8.  The authority to levy 
  8.24  taxes under paragraph (a), clauses (1) through (4), must 
  8.25  terminate when no bonds issued under section 8 are outstanding.  
  8.26  The commissioner of revenue may enter into appropriate 
  8.27  agreements with the county to provide for the collection of the 
  8.28  taxes by the state on behalf of the county.  The commissioner 
  8.29  may charge the county a reasonable fee for its collection from 
  8.30  the proceeds of any taxes.  These taxes are subject to the same 
  8.31  interest, penalties, and enforcement provisions as the taxes 
  8.32  imposed under Minnesota Statutes, section 473.592. 
  8.33     Subd. 2.  [STATE REVENUE.] (a) Subject to appropriation, so 
  8.34  long as any bonds issued under section 8 are outstanding, the 
  8.35  state must annually transfer to the county on or before December 
  8.36  1 of each year an amount equal to the sum of the following: 
  9.1      (1) the amount of sales taxes under Minnesota Statutes, 
  9.2   chapter 297A, received by the state in the last fiscal year from 
  9.3   the sale of concessions and memorabilia at the ballpark and, for 
  9.4   the period before completion of the ballpark, the Metrodome; 
  9.5      (2) the amount of income taxes reasonably estimated by the 
  9.6   commissioner of revenue to have been received by the state in 
  9.7   the last fiscal year derived from the income of nonresident 
  9.8   baseball players assigned to Minnesota pursuant to Minnesota 
  9.9   Statutes, section 290.17, subdivision 2, paragraph (a), clause 
  9.10  (2); 
  9.11     (3) if the ballpark is constructed in the vicinity of the 
  9.12  TAD garages, the baseball game day revenues received from the 
  9.13  garages during the last fiscal year in an amount not in excess 
  9.14  of the pro rata debt service attributable to transportation 
  9.15  infrastructure costs financed by bonds issued under section 8; 
  9.16     (4) sales tax revenues received by the state pursuant to 
  9.17  Minnesota Statutes, chapter 297A, from novelties, clothing, and 
  9.18  memorabilia sold or licensed by the Minnesota Twins; 
  9.19     (5) sales tax revenues received by the state pursuant to 
  9.20  Minnesota Statutes, chapter 297A, from the ticket price on the 
  9.21  sale of admission or the granting, issuance, sale, or 
  9.22  distribution, by any private or public person, association, or 
  9.23  corporation, of the privilege of admission to activities at the 
  9.24  ballpark. 
  9.25     (b) If the state licenses gaming operations in the greater 
  9.26  metropolitan area and receives revenue from the gaming 
  9.27  operations, the state shall annually transfer 30 percent of the 
  9.28  revenue received from the gaming operations to the county as an 
  9.29  offset, first, to the amounts to be transferred under paragraph 
  9.30  (a) and, second, to the taxes to be collected under section 9, 
  9.31  and the county shall reduce or suspend the taxes in similar 
  9.32  amount.  The state shall convey on a quarterly basis 30 percent 
  9.33  of the revenue that it receives from the gaming operations to 
  9.34  the county.  But the amount must not exceed $18,000,000 annually.
  9.35     Sec. 10.  [CONDITIONS TO COUNTY BOND ISSUANCE AND TAX 
  9.36  LEVY.] 
 10.1      The county must not issue any bonds under section 8 or levy 
 10.2   any tax under section 10 unless before the issuance or levy: 
 10.3      (1) the Minnesota Twins (i) have agreed to provide 
 10.4   $125,000,000 for costs of the ballpark in such manner as the 
 10.5   county may approve, and (ii) have entered into a lease approved 
 10.6   by the county with the county or other owner for a term of at 
 10.7   least 20 years, which lease shall contain (A) a provision 
 10.8   binding the Minnesota Twins to play major league baseball in the 
 10.9   ballpark for the duration of the lease, and (B) a provision 
 10.10  requiring rent payments at least equal to operation and 
 10.11  maintenance costs of the ballpark, and which lease may allow the 
 10.12  Minnesota Twins to retain revenues from naming rights, 
 10.13  advertising, ticket sales, concessions, private boxes, and 
 10.14  private seat licenses; 
 10.15     (2) the Minnesota Twins and the county have entered into an 
 10.16  agreement providing for a payment to the county of a share of 
 10.17  any net profits upon any sale of the baseball team to a new 
 10.18  owner; 
 10.19     (3) the county board of commissioners has estimated that 
 10.20  the revenues to be transferred pursuant to section 9, 
 10.21  subdivision 2, will be at least $6,000,000 annually after 2006; 
 10.22     (4) an eligible private entity has agreed to provide 
 10.23  $50,000,000 for the costs of the ballpark in such manner as the 
 10.24  county may approve; 
 10.25     (5) to the extent permitted under charter limits in effect 
 10.26  on the date of final enactment of this act, the city of 
 10.27  Minneapolis or the Minneapolis community development agency has 
 10.28  agreed to provide at least $10,000,000 for costs of the ballpark 
 10.29  and related facilities in such manner as the county may approve; 
 10.30  and 
 10.31     (6) the county board of commissioners has determined that 
 10.32  the total cost of acquisition and betterment of the ballpark 
 10.33  does not exceed $370,000,000. 
 10.34     Sec. 11.  [CITY OF MINNEAPOLIS.] 
 10.35     The city of Minneapolis may appropriate and transfer to the 
 10.36  county $10,000,000 for use in connection with the construction 
 11.1   of the ballpark. 
 11.2      Sec. 12.  Minnesota Statutes 2000, section 297A.68, is 
 11.3   amended by adding a subdivision to read: 
 11.4      Subd. 36.  [BALLPARK EVENTS.] The ticket price on the sale 
 11.5   of admission or the granting, issuance, sale, or distribution, 
 11.6   by any private or public person, association, or corporation, of 
 11.7   the privilege of admission to activities at the ballpark is 
 11.8   exempt to the extent that the county has levied a tax pursuant 
 11.9   to section 9, subdivision 1. 
 11.10     Sec. 13.  Minnesota Statutes 2000, section 297A.71, is 
 11.11  amended by adding a subdivision to read: 
 11.12     Subd. 28.  [BALLPARK.] Materials, supplies, or equipment 
 11.13  used or consumed in the construction, equipment, or improvement 
 11.14  of the ballpark and related facilities described in this act are 
 11.15  exempt. 
 11.16     Sec. 14.  Minnesota Statutes 2000, section 473.553, 
 11.17  subdivision 2, is amended to read: 
 11.18     Subd. 2.  [MEMBERSHIP.] The commission shall consist of six 
 11.19  eight members, three appointed by the city council of the city 
 11.20  in which the stadium is located of Minneapolis, and five 
 11.21  appointed by the Hennepin county board of commissioners, plus a 
 11.22  chair appointed as provided in subdivision 3.  
 11.23     Sec. 15.  [EFFECTIVE DATE.] 
 11.24     Sections 1 to 14 are effective the day after final 
 11.25  enactment.