SF 834

2nd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to capital improvements; appropriating money 
  1.3             for St. Paul Civic Center; authorizing local bonds. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [ST. PAUL ARENA.] 
  1.6      Subdivision 1.  [MONEY APPROPRIATED.] (a) $6,500,000 is 
  1.7   appropriated from the general fund to the commissioner of trade 
  1.8   and economic development to make a grant to the city of St. Paul 
  1.9   to plan, design, clear a site for, construct, and equip a new 
  1.10  arena as part of the St. Paul civic center complex.  The 
  1.11  commissioner shall make this grant only after the commissioner 
  1.12  determines that the National Hockey League has awarded an 
  1.13  expansion hockey franchise to one or more owners who have made a 
  1.14  legally binding commitment to play National Hockey League games 
  1.15  in the new arena. 
  1.16     (b) The commitment must be that the hockey team will lease 
  1.17  the new arena for the purpose of playing all of its National 
  1.18  Hockey League home games and will not relocate the team from the 
  1.19  arena during the lease term; provided, that the team will have 
  1.20  the right after the first ten years of the lease term to 
  1.21  terminate the lease by paying the city and the state an amount 
  1.22  required to discharge the outstanding city bonds and state 
  1.23  bonds, respectively, including any related premium or early 
  1.24  retirement penalty associated with prepayment.  
  2.1      (c) The commitment must include an agreement whereby the 
  2.2   team will pay liquidated damages in the event of a breach of its 
  2.3   covenant to operate exclusively at the new arena during the 
  2.4   first ten years of the lease term or, after the first ten years 
  2.5   of the lease term, to pay the city and state the amount required 
  2.6   to discharge the outstanding city bonds and state bonds if it 
  2.7   relocates the team.  The amount of the liquidated damages must 
  2.8   be the unpaid principal balance of the outstanding city bonds 
  2.9   and state bonds, including any related premium or early 
  2.10  retirement penalty associated with prepayment, plus the amount 
  2.11  of money expended by the city and the St. Paul civic center 
  2.12  authority for construction costs.  
  2.13     (d) Disputes between the parties under the lease must be 
  2.14  venued exclusively in Ramsey county. 
  2.15     (e) The legislature intends to authorize during the 1998 
  2.16  legislative session the issuance of state revenue bonds in the 
  2.17  amount of $58,500,000 to plan, design, construct, and equip a 
  2.18  new arena as part of the St. Paul civic center complex in the 
  2.19  expectation that the city of St. Paul and third parties will 
  2.20  rely on and make financial and other commitments based on the 
  2.21  intent to make this subsequent authorization. 
  2.22     (f)  Any excess of the 40 percent of revenue from the sales 
  2.23  tax imposed under Laws 1993, chapter 375, article 9, section 46, 
  2.24  that has been designated by resolution of the St. Paul city 
  2.25  council for the civic center account over the debt service on 
  2.26  bonds issued by the city pursuant to Laws 1993, chapter 375, 
  2.27  article 9, section 46, and the debt service on bonds issued 
  2.28  under section 2 must be used to retire the state bonds issued 
  2.29  under section 1, provided that the use of this revenue shall not 
  2.30  delay repayments to the cultural projects account and the 
  2.31  neighborhood investment account of amounts advanced from those 
  2.32  accounts to cover shortages for financing the debt service for 
  2.33  the revenue bonds issued in 1993 for the civic center 
  2.34  construction program, as provided by resolution of the St. Paul 
  2.35  city council. 
  2.36     Subd. 2.  [EXEMPTION FROM STATE OVERSIGHT.] Minnesota 
  3.1   Statutes, section 16B.335, does not apply to the arena described 
  3.2   in subdivision 1. 
  3.3      Subd. 3.  [PARTIAL EXEMPTION FROM STATE BOND 
  3.4   LAW.] Notwithstanding Minnesota Statutes, section 16A.695, the 
  3.5   city of St. Paul or its civic center authority may retain any 
  3.6   money received under a lease of the arena described in 
  3.7   subdivision 1 to pay operating or capital costs of the civic 
  3.8   center complex and that money need not be paid to the 
  3.9   commissioner of finance. 
  3.10     Sec. 2.  [ST. PAUL CIVIC CENTER BONDING.] 
  3.11     Subdivision 1.  [BONDS AUTHORIZED.] The city of St. Paul 
  3.12  may, by resolution of its city council, authorize, issue, and 
  3.13  sell special obligation bonds or, upon satisfaction of the 
  3.14  requirements in subdivision 3, general obligation bonds to 
  3.15  finance or refinance any expenditure for the acquisition, 
  3.16  construction, demolition, betterment, and equipping of a new 
  3.17  arena as part of the St. Paul civic center complex, including 
  3.18  related facilities, and related bond issuance costs, and the 
  3.19  fund of any capitalized interest and debt service reserve for 
  3.20  the bonds.  Except as otherwise provided in this section, the 
  3.21  bonds shall be authorized, issued, and sold in the manner, and 
  3.22  subject to the same conditions provided in, Minnesota Statutes, 
  3.23  chapter 475.  The bonds may not be authorized unless the design 
  3.24  of the arena is for a convertible-use facility that will 
  3.25  accommodate various entertainment venues.  The bonds may not be 
  3.26  authorized unless the city has entered into an agreement with 
  3.27  the state limiting the state's investment in the project to no 
  3.28  more than half the total project cost, up to a maximum of 
  3.29  $65,000,000. 
  3.30     Subd. 2.  [SECURITY.] Bonds authorized under subdivision 1 
  3.31  shall be payable from and secured by a pledge of one or more of 
  3.32  the following primary sources of payment, in whole or in part: 
  3.33     (1) revenues derived from the civic center complex and any 
  3.34  related facilities; 
  3.35     (2) the 40 percent of revenue from the sales tax imposed 
  3.36  under Laws 1993, chapter 375, article 9, section 46, that has 
  4.1   been designated by resolution of the St. Paul city council for 
  4.2   the civic center account, provided that the pledge of this 
  4.3   revenue shall not delay repayments to the cultural projects 
  4.4   account and the neighborhood investment account of amounts 
  4.5   advanced from those accounts to cover shortages for financing 
  4.6   the debt service for the revenue bonds issued in 1993 for the 
  4.7   civic center construction program, as provided by resolution of 
  4.8   the St. Paul city council; 
  4.9      (3) revenue from any lodging tax imposed under Laws 1982, 
  4.10  chapter 523, article 25, section 1; 
  4.11     (4) parking revenues from ramps or spaces owned by the St. 
  4.12  Paul civic center authority, the city, or its housing and 
  4.13  redevelopment authority; and 
  4.14     (5) any taxes, revenues, or other funds paid by the state 
  4.15  to the city or imposed by the city under a law enacted in 1997 
  4.16  or a subsequent year to finance costs payable from the proceeds 
  4.17  of the bonds. 
  4.18  If any new revenue source is made available by the 80th 
  4.19  legislature for the specific purpose of paying off these bonds, 
  4.20  then this obligation must be transferred to that revenue source. 
  4.21     Subd. 3.  [CITY MAY PLEDGE FULL FAITH AND 
  4.22  CREDIT.] Notwithstanding any law or charter provision to the 
  4.23  contrary, in addition to the primary sources of payment in 
  4.24  subdivision 2, the city of St. Paul may pledge to the payment of 
  4.25  the bonds authorized under subdivision 1 the city's full faith 
  4.26  and credit, or subject to any outstanding contractual 
  4.27  obligations, any other revenues, charges, assessments, or taxes 
  4.28  which either the city or the St. Paul civic center authority may 
  4.29  be entitled to receive.  
  4.30     Subd. 4.  [EXCEPTIONS.] (a) Notwithstanding Minnesota 
  4.31  Statutes, chapter 475, or any other law or charter provision to 
  4.32  the contrary: 
  4.33     (1) The bonds authorized under subdivision 1 may be 
  4.34  authorized, issued, and sold without vote of the electorate and 
  4.35  shall not be included in the net debt or per capita tax 
  4.36  limitations of the city. 
  5.1      (2) The estimated collection of revenues, charges, 
  5.2   assessments, or taxes pledged to the payment of general 
  5.3   obligation bonds under subdivision 1 or 2 may be deducted from 
  5.4   the general ad valorem taxes otherwise required before the 
  5.5   issuance of bonds under Minnesota Statutes, section 475.61, 
  5.6   subdivision 1. 
  5.7      (b) If the bonds are special obligation bonds, the city may 
  5.8   exercise any of the powers granted an authority for issuing 
  5.9   revenue bonds under Minnesota Statutes, section 469.178, 
  5.10  subdivision 4.  The St. Paul civic center authority may make 
  5.11  such convenants as the authority by resolution deems to be 
  5.12  necessary and proper to secure payments of the bonds. 
  5.13     Subd. 5.  [SALES TAX; AUTHORITY.] Notwithstanding any law 
  5.14  or charter provision to the contrary, the authority to impose a 
  5.15  sales tax under Laws 1993, chapter 375, article 9, section 46, 
  5.16  does not expire before the date on which any bonds issued under 
  5.17  this section and made payable from the revenues of such a sales 
  5.18  tax, are paid in full. 
  5.19     Sec. 3.  [COMPETITIVE BIDDING.] 
  5.20     Contracts for the acquisition, construction, equipping, 
  5.21  remodeling, repair, or improvement of the St. Paul civic center 
  5.22  arena and any related facilities, may be entered into without 
  5.23  compliance with the provisions of Minnesota Statutes, section 
  5.24  471.345, subdivision 3. 
  5.25     Sec. 4.  [EFFECTIVE DATE.] 
  5.26     Section 1 is effective the day after its final enactment.  
  5.27  Sections 2 and 3 are effective upon compliance by the St. Paul 
  5.28  city council with Minnesota Statutes, section 645.021, 
  5.29  subdivision 3.