HF 3706

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

  1.1                          A bill for an act 
  1.2             relating to a major league baseball park; providing 
  1.3             for financing, requiring donations as a condition of 
  1.4             financing; describing a process to finance and 
  1.5             construct the ballpark; imposing conditions and 
  1.6             requirements; authorizing revenue bonds; appropriating 
  1.7             money; amending Minnesota Statutes 2000, section 
  1.8             272.02, by adding a subdivision. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [DEFINITIONS.] 
  1.11     Subdivision 1.  [APPLICATION.] The definitions in this 
  1.12  section apply in this act. 
  1.13     Subd. 2.  [BALLPARK.] "Ballpark" means the baseball park 
  1.14  authorized in this act that is suitable for major league 
  1.15  baseball. 
  1.16     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
  1.17  commissioner of finance. 
  1.18     Subd. 4.  [LOCAL PUBLIC PARTNER.] "Local public partner" 
  1.19  means the city or county chosen by the team to build and own the 
  1.20  ballpark on the city's or county's site. 
  1.21     Subd. 5.  [TEAM.] "Team" means the Minnesota Twins, or a 
  1.22  successor major league baseball team holding a franchise to play 
  1.23  major league baseball in Minnesota. 
  1.24     Sec. 2.  [AUTHORITY TO ISSUE REVENUE BONDS; PURPOSE.] 
  1.25     Subdivision 1.  [OVERVIEW.] The commissioner of finance may 
  1.26  issue up to $330,000,000 of aggregate principal amount of 
  1.27  revenue bonds, the proceeds of which must be deposited in the 
  2.1   ballpark revenue bond proceeds fund in the state treasury to be 
  2.2   used to predesign, design, construct, furnish, and equip the 
  2.3   ballpark.  The total cost of the ballpark must not exceed 
  2.4   $330,000,000.  The conditions and terms related to the issuance 
  2.5   of the bonds are as provided in this act and agreements and 
  2.6   other bond and construction financing instruments that are in 
  2.7   the determination of the commissioner or the commissioner's 
  2.8   agent or trustee necessary or desirable in a transaction of this 
  2.9   kind to achieve the public purpose of this act and to ensure the 
  2.10  provision of adequate security for the payment when due of the 
  2.11  interest of, and principal on, the bonds authorized, issued, and 
  2.12  sold as provided in this act. 
  2.13     Subd. 2.  [AUTHORITY NOT AFFECTED BY TAXABILITY OF 
  2.14  INTEREST.] The bonds authorized by this section may be issued 
  2.15  without regard to whether the interest to be paid on them is 
  2.16  gross income for federal tax purposes. 
  2.17     Sec. 3.  [PROCESS TO CONSTRUCT AND FINANCE BALLPARK.] 
  2.18     Subdivision 1.  [SELECTION OF LOCAL PUBLIC PARTNER AND 
  2.19  SITE.] The team must choose a local public partner to provide a 
  2.20  site, and construct and own the ballpark.  If majority ownership 
  2.21  of the team changes during this process, the new ownership must 
  2.22  agree to be bound by the former majority owner's obligations 
  2.23  with respect to this act, and in particular to, the process in 
  2.24  this section.  By July 1, 2002, the team must notify the 
  2.25  commissioner of its choice and the choice's agreement to be the 
  2.26  local public partner. 
  2.27     Subd. 2.  [PROVISION OF SITE; AGREEMENT TO BUILD.] The 
  2.28  local public partner must enter into an agreement with the team, 
  2.29  subject to the provisions of this act, to provide a site for, 
  2.30  construct, and own the ballpark, the construction of which does 
  2.31  not exceed $330,000,000.  In addition to other terms and 
  2.32  conditions not inconsistent with this act, the agreement must be 
  2.33  contingent on the team timely making the donations described in 
  2.34  this act and on the state's issuance of up to $330,000,000 of 
  2.35  revenue bonds as provided in this act.  The commissioner must be 
  2.36  notified by September 1, 2002, of the agreement, unless this 
  3.1   deadline is extended by agreement of the commissioner, the team, 
  3.2   and the local public partner. 
  3.3      Subd. 3.  [TEAM AGREEMENT TO LEASE, MAKE DONATIONS.] (a) In 
  3.4   addition to other terms and conditions of its agreement with its 
  3.5   local public partner, not inconsistent with this act, the team 
  3.6   agrees to lease the ballpark for at least 30 years or until the 
  3.7   date of last maturity of any bond issued under this act, 
  3.8   whichever is later. 
  3.9      (b) The team also agrees with its local public partner and 
  3.10  the commissioner to: 
  3.11     (1) make a donation in an amount equal to one-half of the 
  3.12  amount of the authorized bonds that are actually sold to the 
  3.13  state to be deposited in the ballpark revenue bond debt service 
  3.14  fund in the state treasury; 
  3.15     (2) in accordance with the debt service schedule, make 
  3.16  annual donations of $10,000,000 each year to the state to be 
  3.17  deposited in the ballpark revenue bond debt service fund in the 
  3.18  state treasury; and 
  3.19     (3) to make donations to the state as necessary to offset a 
  3.20  shortfall, if any, in the ballpark revenue bond debt service 
  3.21  fund as determined by the commissioner at least every four years 
  3.22  in order to ensure that the ballpark revenue bond debt service 
  3.23  fund has sufficient money on hand to pay when due all debt 
  3.24  service on the revenue bonds outstanding under this act until 
  3.25  all the revenue bonds are retired or defeased. 
  3.26     Subd. 4.  [STATE OBLIGATIONS.] After the agreements under 
  3.27  subdivisions 1 to 3 are entered into, the commissioner of 
  3.28  finance agrees to issue up to $330,000,000 in revenue bonds of 
  3.29  the state of Minnesota.  The bonds are to predesign, design, 
  3.30  construct, finance, and equip the ballpark described in this 
  3.31  act.  The bonds shall mature not more than 30 years from the 
  3.32  first date of issue or until the date of last maturity of any 
  3.33  bond issued under this act, whichever is greater. 
  3.34     Subd. 5.  [INITIAL GIFT CONTEMPORANEOUS WITH BOND 
  3.35  SALE.] The team's initial gift of up to $165,000,000 must be 
  3.36  delivered to the state on or before the date of the closing on 
  4.1   the sale of the first of the bonds authorized in this act. 
  4.2      Subd. 6.  [APPROPRIATION.] (a) The proceeds of the revenue 
  4.3   bonds sold under this act must be deposited in the ballpark 
  4.4   revenue bond proceeds fund in the state treasury. 
  4.5      (b) The amount necessary up to $330,000,000 is appropriated 
  4.6   from the ballpark revenue bond proceeds fund in the state 
  4.7   treasury to the team's designated local public partner metered 
  4.8   as agreed between the commissioner, the team, and the local 
  4.9   public partner to make the payments due according to the 
  4.10  construction contracts for the construction of the ballpark. 
  4.11     (c)  The amounts necessary are appropriated to the 
  4.12  commissioner from the ballpark revenue bond debt service fund in 
  4.13  the state treasury to make all payments when due on all debt 
  4.14  service on the bonds issued under this act and that are 
  4.15  outstanding, until all the bonds are retired or defeased. 
  4.16     Subd. 7.  [COVENANTS, PLEDGES; GUARANTIES.] The 
  4.17  commissioner, or the commissioner's agent or trustee for this 
  4.18  purpose may require additional covenants, pledges, and 
  4.19  guarantees as are necessary or desirable to secure the payment 
  4.20  when due of all debt service under this act and to ensure the 
  4.21  accomplishment of all obligations of the parties that relate to 
  4.22  that security. 
  4.23     Sec. 4.  [LOCAL PUBLIC PARTNER TAXES.] 
  4.24     The local public partner may use the proceeds from taxes, 
  4.25  fees, charges, and surcharges otherwise authorized by law or 
  4.26  from other revenues available to it, by agreement with the team, 
  4.27  to make contributions to the donations made by the team under 
  4.28  section 3, subdivision 2. 
  4.29     Sec. 5.  [PROCEDURE; PLEDGE; PAYMENT.] 
  4.30     The revenue bonds authorized by this act must be sold and 
  4.31  issued by the commissioner in the manner and upon the terms and 
  4.32  conditions generally provided by Minnesota Statutes, sections 
  4.33  16A.672 to 16A.675, for the sale and issuance of bonds and 
  4.34  certificates of indebtedness, except as otherwise provided in 
  4.35  this act.  The bonds are payable only from and secured by an 
  4.36  irrevocable pledge of the revenues to be derived from gifts and 
  5.1   investment returns on them and other money deposited in the debt 
  5.2   service fund as provided in this act.  The legislature must not 
  5.3   appropriate money from the general fund to pay for these bonds.  
  5.4   The bonds are not public debt and the full faith credit and 
  5.5   taxing powers of the state are not pledged for their payment.  
  5.6   The bonds and the interest thereon shall not be paid, directly 
  5.7   or indirectly, in whole or in part, from a tax of statewide 
  5.8   application on any class of property, income, transaction, or 
  5.9   privilege. 
  5.10     Subd. 2.  [FORM.] The bonds may: 
  5.11     (1) bear the date or dates; 
  5.12     (2) mature serially at a time or times not exceeding 40 
  5.13  years from their date or dates; 
  5.14     (3) be in the form; 
  5.15     (4) carry the registration privileges; 
  5.16     (5) be payable at a place or places; 
  5.17     (6) be subject to terms of redemption prior to maturity 
  5.18  with or without premium; 
  5.19     (7) be delivered to the purchasers at times and places; and 
  5.20     (8) contain terms and covenants, consistent with this act, 
  5.21  all as may be provided by order of the commissioner directing 
  5.22  the issuance of the bonds as authorized in this act. 
  5.23     Subd. 3.  [EXECUTION.] The bonds must be executed by the 
  5.24  officers designated by the commissioner to execute them, in the 
  5.25  manner authorized by Minnesota Statutes, sections 16A.672 to 
  5.26  16A.675.  
  5.27     Subd. 4.  [BOND STATEMENT; REGISTRATION.] Each bond shall 
  5.28  state upon its face that it is payable solely from and secured 
  5.29  by an irrevocable pledge of the revenues referred to in 
  5.30  subdivision 1 and that it does not constitute a debt or 
  5.31  obligation of the state of Minnesota within the meaning or 
  5.32  application of any constitutional or statutory limitation or 
  5.33  provision.  A copy of the order of the commissioner in the 
  5.34  issuance of the bonds must be maintained by the commissioner. 
  5.35     Subd. 5.  [PAYMENT OF INTEREST; BALLPARK REVENUE BONDS.] 
  5.36  The commissioner may pay from irrevocable appropriations from 
  6.1   the ballpark revenue bond debt service fund or otherwise provide 
  6.2   for the payment of the interest coming due on the revenue bonds, 
  6.3   until paid and for the payment of the principal and any premium 
  6.4   coming due on the bonds at maturity or upon any earlier date 
  6.5   upon which the bonds are called for redemption.  Minnesota 
  6.6   Statutes, sections 16A.672 to 16A.675 apply to the bonds. 
  6.7      Sec. 6.  [DEBT SERVICE FUND INVESTMENTS.] 
  6.8      Money not currently needed in the ballpark revenue bond 
  6.9   debt service fund as determined by the commissioner may be 
  6.10  invested by the state board of investment, in the same manner 
  6.11  and extent as investments are authorized by Minnesota Statutes, 
  6.12  section 11.24, for certain state retirement funds. 
  6.13     Sec. 7.  [EXCESS IN DEBT SERVICE FUND.] 
  6.14     At any time after 20 years after closing on the first bonds 
  6.15  sold under this act, money in the ballpark revenue bond debt 
  6.16  service fund in excess of the amount needed, as determined by 
  6.17  the commissioner, may only be used to defease bonds authorized 
  6.18  in this act or to make improvements to the ballpark authorized 
  6.19  in this act.  The improvements must be requested by the team or 
  6.20  the local public partner and, if requested by either, must be 
  6.21  approved by the other.  The request and approval must be 
  6.22  forwarded to the commissioner.  The commissioner may require 
  6.23  further agreements, documents, and assurances with respect to 
  6.24  the request. 
  6.25     Sec. 8.  Minnesota Statutes 2000, section 272.02, is 
  6.26  amended by adding a subdivision to read: 
  6.27     Subd. 50.  [PROPERTY TAXES.] Real or personal property 
  6.28  acquired, owned, leased, controlled, used, or occupied as a 
  6.29  baseball park by a major league professional baseball team is 
  6.30  exempt from taxation but the property is subject to special 
  6.31  assessments levied by a political subdivision under chapter 429. 
  6.32  The baseball park includes parking facilities and land necessary 
  6.33  to and part of the use of the baseball park.  A use of the 
  6.34  property in any manner different from its use as a baseball park 
  6.35  must not be considered in determining the special benefit under 
  6.36  chapter 429 received by the properties.  Notwithstanding section 
  7.1   272.01, subdivision 2, or 273.19, real or personal property on 
  7.2   the premises of the baseball park leased by the city that 
  7.3   operates the baseball park to another person or entity for uses 
  7.4   directly related to the operation of the baseball park is exempt 
  7.5   from taxation regardless of the length of the lease.  This 
  7.6   subdivision expires one month after repayment of the bonds 
  7.7   issued to finance the baseball park. 
  7.8      Sec. 9.  [EFFECTIVE DATE.] 
  7.9      This act is effective the day after its final enactment.