SF 115

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to a University of Minnesota football
stadium; appropriating money; amending Minnesota
Statutes 2004, section 297A.71, by adding a
subdivision; proposing coding for new law in Minnesota
Statutes, chapter 473.

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

Section 1. new text begin PURPOSE; FINDINGS.
new text end

new text begin The legislature finds that construction of a new football
stadium by the Board of Regents of the University of Minnesota
on the University's east bank campus in the city of Minneapolis
serves statewide public purposes. The legislature finds that
the public purposes served include, but are not limited to,
providing an on-campus outdoor intercollegiate football stadium
as a part of the public amenities for Minnesota's citizens,
enhancing the enjoyment of its citizens, and enhancing the
University experience for students, alumni, faculty, staff, and
other supporters of the University. The legislature finds that
the University intends to join together with its students,
alumni, faculty, staff, and other supporters to raise funds to
build a stadium to return college football to the University
campus. Further, the legislature finds that construction of a
University of Minnesota football stadium should be supported by
the state and that the support should not detract from or be a
substitute for other operating and capital support by the state
for the University; however, state financial support for the
stadium should be conditioned upon the University providing for
payment of a significant portion of the stadium's cost from
nonstate general revenue fund sources. The purpose of this act
is to provide a firm 25 percent level of funding for a new
University football stadium to be constructed and owned by the
Board of Regents of the University of Minnesota.
new text end

Sec. 2. new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this
section apply to sections 1 to 10.
new text end

new text begin Subd. 2. new text end

new text begin Commission. new text end

new text begin "Commission" means the Metropolitan
Sports Facilities Commission.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of finance.
new text end

new text begin Subd. 4. new text end

new text begin Stadium. new text end

new text begin "Stadium" means an athletic stadium
suitable for intercollegiate National Collegiate Athletic
Association (NCAA) Division I football games and related
infrastructure improvements constructed on the University of
Minnesota's east bank campus in the city of Minneapolis.
new text end

new text begin Subd. 5. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Regents of
the University of Minnesota.
new text end

Sec. 3. new text begin ACTIVITIES; CONTRACTS.
new text end

new text begin In addition to the powers it already has under the
constitution and laws of the state, the legislature recognizes
that the Board has all powers necessary or convenient for
designing, constructing, equipping, improving, controlling,
operating, and maintaining the stadium and may enter into
contracts that are in its judgment in the best interests of the
public for those purposes. Notwithstanding contrary law, the
Board may adopt the fair and competitive design and construction
procurement procedures in connection with the stadium that it
considers to be in the public interest. Minnesota Statutes,
sections 16B.33 and 16B.335, do not apply to the stadium.
new text end

Sec. 4.

Minnesota Statutes 2002, section 297A.71, is
amended by adding a subdivision to read:

new text begin Subd. 33. new text end

new text begin Construction materials; university of minnesota
football stadium. new text end

new text begin Materials, supplies, or equipment used or
consumed in connection with the construction, equipping, or
improvement of a football stadium constructed for use by the
University of Minnesota are exempt. This subdivision expires
one year after substantial completion of the football stadium.
new text end

Sec. 5. new text begin ENVIRONMENTAL REVIEW.
new text end

new text begin The legislature requests that the Board undertake an
environmental review of the stadium project and perform the
responsibilities of the responsible governmental unit as
prescribed in the Minnesota Environmental Policy Act, Minnesota
Statutes, chapter 116D, and the rules adopted under that
chapter. The designation of the Board to serve as the
responsible governmental unit is effective upon approval by the
Board authorizing the University to act in that capacity.
new text end

Sec. 6. new text begin UNIVERSITY STADIUM ACCOUNT.
new text end

new text begin A University stadium account is established in the special
revenue fund in the state treasury. All interest attributable
to the University stadium account must be deposited in the state
treasury and credited to the University stadium account in the
special revenue fund. So long as any bonds issued by the Board,
not to exceed a total amount issued of $....... to pay costs of
constructing the stadium that are in excess of the required
University contribution described in section 7 are outstanding,
on July 1 of each year the state must transfer from the
University stadium account to the University $....... to
reimburse the University for its costs in constructing the
stadium. $......., or the lesser amount required to increase
the total of available funds in the University stadium account
on July 1 of each year to $......., is appropriated annually
from the general fund and must be credited to the University
stadium account. Except to the extent of the annual
appropriation described in this section, the state is not
required to pay any part of the cost of constructing the stadium.
new text end

Sec. 7. new text begin CONDITIONS FOR PAYMENT TO UNIVERSITY.
new text end

new text begin Before the commissioner may make the first payment to the
University under section 6, the Board must certify to the
commissioner that the University has received at least $.......
in pledges, gifts, sponsorships, and other nonstate general fund
revenue support for the construction of the stadium. The Board
must also certify to the commissioner that a provision for
affordable access for University students to the University
sporting events held at the football stadium has been made.
new text end

Sec. 8. new text begin AGREEMENT BY COMMISSIONER OF FINANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin (a) The commissioner, on behalf of
the state, shall enter into an agreement with the Board
obligating the state to transfer to the University money from
the University stadium account established by section 6 at the
times and in the amount provided in that section. In the
agreement, the commissioner shall also covenant and agree on
behalf of the state that, until the earlier of the date which is
30 years from the date on which the first deposit is made into
the University stadium account or the date on which all bonds up
to the maximum amount of $....... issued by the University for
the construction of the stadium are discharged in accordance
with the resolutions authorizing their issuance:
new text end

new text begin (1) the state will maintain the University stadium account
established in section 6; and
new text end

new text begin (2) the state will provide information necessary to enable
the University to comply with federal securities laws, rules,
and regulations applicable to bonds issued by the University for
the construction of the stadium.
new text end

new text begin (b) The Board agrees to take all steps necessary to design
and construct the football stadium according to a specific
proposal approved by the Board for not more than a total cost
agreed to by the parties, by a completion date agreed to by the
parties. The Board also agrees to pay for all cost overruns on
the stadium above the agreed cost and to hold the state harmless
as to the cost overruns.
new text end

new text begin (c) The agreement may also contain any other pledges,
covenants, and agreements the commissioner on behalf of the
state and the Board on behalf of the University consider
necessary or appropriate to accomplish the purposes of this act.
new text end

new text begin (d) The agreement is enforceable in the district court for
Ramsey County. The parties waive immunity from suit and the
Board waives its constitutional autonomy in connection with the
agreement and the state confers jurisdiction on the district
court to determine the matter in the manner provided for civil
actions in the district court. Minnesota Statutes, section
3.751, subdivisions 3 and 4, apply.
new text end

new text begin Subd. 2. new text end

new text begin No full faith and credit. new text end

new text begin Any bonds or other
obligations issued by the Board under this act are not public
debt of the state, and the full faith and credit and taxing
powers of the state are not pledged for their payment or of any
payments that the state agrees to make under this act.
new text end

Sec. 9. new text begin COOPERATION REQUIRED.
new text end

new text begin Local units of government affected by the stadium project
must cooperate with the University to the greatest practical
extent in facilitating the development, construction, and
operation of the stadium.
new text end

Sec. 10.

new text begin [473.5955] TERMINATION OF LEASE.
new text end

new text begin The lease between the Board of Regents of the University of
Minnesota and the commission dated May 19, 1982, that requires
the University of Minnesota football team to play its home
football games at the Hubert H. Humphrey Metrodome until July 1,
2012, may be terminated by the Board of Regents effective on or
after the date designated by the Board of Regents as the date of
completion of the stadium.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 10 are effective the day following final
enactment.
new text end