SF 1727

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to sports; providing for a Minnesota baseball 
  1.3             stadium limited partnership; proposing coding for new 
  1.4             law in Minnesota Statutes, chapter 473. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [473.573] [PURPOSE.] 
  1.7      The public authority as defined in section 2 may 
  1.8   participate in a limited partnership that has as its purpose to 
  1.9   construct and own a baseball stadium to be leased to the 
  1.10  Minnesota Twins major league baseball team on a 20-year lease. 
  1.11     Sec. 2.  [473.574] [PUBLIC AUTHORITY.] 
  1.12     In this act, the public authority means the metropolitan 
  1.13  sports facilities commission or its successor organization. 
  1.14     Sec. 3.  [473.575] [STADIUM PARTNERSHIP.] 
  1.15     (a) The public authority's participation in the limited 
  1.16  partnership under section 1 is contingent upon each of the 
  1.17  limited partners making the contributions to the partnership to 
  1.18  construct a new major league baseball stadium set out in this 
  1.19  section.  The general partner is the public authority.  The 
  1.20  limited partners are:  
  1.21     (1) the public authority, with a contribution of 
  1.22  $80,000,000; 
  1.23     (2) the owners of the Minnesota Twins major league baseball 
  1.24  team, with a contribution of $80,000,000; 
  1.25     (3) another limited partner as defined in section 322A.01, 
  2.1   clause (6), made up of private sector investors, with a 
  2.2   contribution of $80,000,000; and 
  2.3      (4) the municipality in which the stadium is to be located, 
  2.4   with a contribution of the stadium site prepared for 
  2.5   construction estimated to be valued at $30,000,000. 
  2.6      (b) The initial duration of the partnership is 20 years.  
  2.7   The participation of the public authority in the partnership as 
  2.8   a limited and general partner is further contingent upon the 
  2.9   Minnesota Twins major league baseball team entering into an 
  2.10  agreement with the stadium commission to use the stadium for all 
  2.11  scheduled regular season and post-season games for 20 years. 
  2.12     Sec. 4.  [473.576] [OPTIONS AT END OF INITIAL PARTNERSHIP.] 
  2.13     At the end of the initial 20-year partnership, three 
  2.14  options are available to the partnership: 
  2.15     (1) renew the partnership for a term to be agreed upon; 
  2.16     (2) negotiate a buy out of the partnership by one or more 
  2.17  of the limited partners; or 
  2.18     (3) sale of the stadium to a nonpartner. 
  2.19     Sec. 5.  [473.577] [ADDITIONAL AUTHORITY, TERMS, 
  2.20  CONDITIONS.] 
  2.21     Subdivision 1.  [JOINT POWERS.] The public authority may 
  2.22  jointly or cooperatively exercise powers under section 471.59, 
  2.23  according to the terms of that section, with any other 
  2.24  governmental unit that may make use of section 471.59 with 
  2.25  another entity. 
  2.26     Subd. 2.  [PROPERTY TAX EXEMPTION.] Any real or personal 
  2.27  property acquired, owned, leased, controlled, used, or occupied 
  2.28  by the public authority for any of the purposes of this act is 
  2.29  declared to be acquired, owned, leased, controlled, used, and 
  2.30  occupied for public, governmental, and municipal purposes and is 
  2.31  exempt from ad valorem taxation by the state or any political 
  2.32  subdivision of the state.  The properties are subject to special 
  2.33  assessments levied by a political subdivision for a local 
  2.34  improvement in amounts proportionate to and not exceeding the 
  2.35  special benefit received by the properties from the 
  2.36  improvement.  A possible use of the properties in any manner 
  3.1   different from their use under this act at the time must not be 
  3.2   considered in determining the special benefit received by the 
  3.3   properties.  Notwithstanding section 272.01, subdivision 2, or 
  3.4   273.19, real or personal property comprising all or part of the 
  3.5   baseball stadium leased by the limited partnership described in 
  3.6   this act or by its general partner to another for the operation 
  3.7   of the baseball facility is exempt from taxation regardless of 
  3.8   the length of the lease. 
  3.9      Subd. 3.  [CAPITAL REPAIR; IMPROVEMENTS.] The public 
  3.10  authority is responsible for capital repairs, improvements, and 
  3.11  enhancements and betterments necessary to maintain the baseball 
  3.12  stadium as a state-of-the-art facility.  To the extent the costs 
  3.13  to maintain the stadium as a state-of-the-art stadium exceed the 
  3.14  funds in its capital improvement fund, the public authority and 
  3.15  the team owner shall agree on the improvements to be made. 
  3.16     Subd. 4.  [OPERATING COSTS.] The team owner shall fund the 
  3.17  operating expenses of the baseball stadium.  The public 
  3.18  authority or the limited partnership is not liable for any 
  3.19  operating loss of the team.  The public authority shall not 
  3.20  reimburse the owner or any creditor of the team for any 
  3.21  operating loss of the team. 
  3.22     Subd. 5.  [RECOMMENDATIONS ON GOVERNING BODY.] The public 
  3.23  authority shall make recommendations to the legislature with 
  3.24  respect to a new or broadened membership structure for itself or 
  3.25  for its replacement by another public entity that will 
  3.26  adequately represent the interests of the public with respect to 
  3.27  the stadium and its other duties and responsibilities.  The 
  3.28  recommendations must be delivered to the chairs of the house 
  3.29  local government and metropolitan affairs committee and the 
  3.30  senate metropolitan and local government committee by September 
  3.31  1, 1997. 
  3.32     Sec. 6.  [473.578] [ADMISSION TAX OR TICKET SURCHARGE.] 
  3.33     The public authority shall by resolution impose and 
  3.34  maintain an admission tax or ticket surcharge upon the granting, 
  3.35  issuance, sale, or distribution, by any private or public 
  3.36  person, association, or corporation, of the privilege of 
  4.1   admission to activities at the baseball facility.  No other tax, 
  4.2   surcharge, or governmental imposition, except the taxes imposed 
  4.3   by chapter 297A, may be levied by any other unit of government 
  4.4   upon any such sale or distribution.  The admission tax or ticket 
  4.5   surcharge must be stated and charged separately from the sales 
  4.6   price so far as practicable and must be collected by the 
  4.7   grantor, seller, or distributor from the person admitted and is 
  4.8   a debt from that person to the grantor, issuer, seller, or 
  4.9   distributor, and the tax required to be collected is a debt owed 
  4.10  by the grantor, issuer, seller, or distributor to the public 
  4.11  authority.  The debt is recoverable at law in the same manner as 
  4.12  other debts.  Every person who grants, issues, sells, or 
  4.13  distributes tickets for the admissions may be required, as 
  4.14  provided in resolutions of the public authority to secure a 
  4.15  permit, to file returns, to deposit security for the payment of 
  4.16  the tax, and to pay penalties for nonpayment and interest on 
  4.17  late payments, that are considered necessary or expedient to 
  4.18  ensure the prompt and uniform collection of the tax. 
  4.19     Sec. 7.  [473.579] [REVENUE TO PARTNERSHIP.] 
  4.20     The public authority shall collect the following revenue 
  4.21  for the partnership: 
  4.22     (1) rent from the Minnesota Twins; 
  4.23     (2) a tax on the price of admission to Minnesota Twins 
  4.24  baseball games and other events at the stadium; and 
  4.25     (3) proceeds from the sale or lease of naming rights to the 
  4.26  stadium facility itself, or parts of it.