SF 1942

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 process to 
  1.3             construct, fund, maintain, and govern a major league 
  1.4             baseball facility without the use of public funds; 
  1.5             providing for powers and duties of the governing 
  1.6             entity; authorizing the issuance of bonds and other 
  1.7             debt obligations; amending Minnesota Statutes 1996, 
  1.8             section 473.551, subdivision 1, and by adding 
  1.9             subdivisions; proposing coding for new law in 
  1.10            Minnesota Statutes, chapter 473. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [TERMS.] For the purposes of sections 
  1.15  473.551 to 473.599 473.5996, the following terms shall have the 
  1.16  meanings given in this section. 
  1.17     Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  1.18  amended by adding a subdivision to read: 
  1.19     Subd. 18.  [BASEBALL FACILITY.] "Baseball facility" means 
  1.20  the major league professional baseball stadium, constructed 
  1.21  pursuant to this act and owned by the commission. 
  1.22     Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 19.  [BASEBALL TEAM.] "Baseball team" means the 
  1.25  professional major league baseball team. 
  1.26     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  1.27  amended by adding a subdivision to read: 
  1.28     Subd. 20.  [REVENUES OF THE BASEBALL TEAM.] "Revenues of 
  2.1   the baseball team" means all revenues of the baseball team from 
  2.2   whatever source, including, but not limited to, any revenues 
  2.3   from baseball facility naming rights, sales of personal seat 
  2.4   licenses and club seats, private suite leases, concessions, 
  2.5   signage, parking, and ticket sales. 
  2.6      Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 21.  [OWNER.] "Owner" means the individual or 
  2.9   individuals acting in concert, or other legal entity, who 
  2.10  directly or indirectly owns at least a majority or controlling 
  2.11  interest in the baseball team. 
  2.12     Sec. 6.  [473.5991] [BASEBALL FACILITY.] 
  2.13     Subdivision 1.  [LOCATION; OWNERSHIP; OPERATION.] The 
  2.14  commission shall construct a baseball facility that is located 
  2.15  within the metropolitan area, owned by the commission, and 
  2.16  operated by the baseball team and its owner. 
  2.17     Subd. 2.  [SITE SELECTION; DESIGN; CONSTRUCTION TEAM.] The 
  2.18  commission and the owner, by mutual agreement, must select a 
  2.19  site for the baseball facility and must determine the program 
  2.20  elements of the baseball facility, including capacity, suites, 
  2.21  club seats, clubs, and amenities.  The commission and the owner, 
  2.22  by mutual agreement, must also determine the baseball facility 
  2.23  design, including whether or not to include a retractable roof 
  2.24  on the facility, and the selection of the construction team, 
  2.25  including the architect and general contractor. 
  2.26     Subd. 3.  [CAPITAL REPAIR; IMPROVEMENTS.] The commission is 
  2.27  responsible for capital repairs and improvements necessary to 
  2.28  maintain the baseball facility.  To the extent the costs to 
  2.29  maintain the facility exceed the funds in the capital 
  2.30  improvement fund, the commission and the owner shall agree on 
  2.31  the improvements to be made. 
  2.32     Sec. 7.  [473.5992] [DETERMINATIONS REQUIRED BEFORE 
  2.33  CONSTRUCTION BONDS ISSUED.] 
  2.34     Subdivision 1.  [SCOPE.] The metropolitan council shall 
  2.35  make all determinations required by this section before it 
  2.36  authorizes the issuance of bonds for construction of the 
  3.1   baseball facility. 
  3.2      Subd. 2.  [30-YEAR USE AGREEMENT; ORGANIZATIONAL 
  3.3   DECISIONS.] (a) The commission has executed agreements with the 
  3.4   owner to use the baseball facility for all scheduled regular 
  3.5   season and postseason home games for a period of no less than 30 
  3.6   years, and the owner has agreed to pay baseball team revenues to 
  3.7   the debt service fund as provided in section 473.5994, 
  3.8   subdivision 2.  The agreements shall afford to the commission or 
  3.9   other public entity, as the commission deems appropriate, the 
  3.10  remedies that are deemed necessary and appropriate to provide 
  3.11  reasonable assurances that the team and the owner will comply 
  3.12  with the agreements.  The remedies may include the payment of 
  3.13  liquidated damages equivalent to direct and consequential 
  3.14  damages incurred by reason of the breach of the agreements and 
  3.15  any additional remedies or security arrangements the commission 
  3.16  reasonably determines to be effective in accomplishing the 
  3.17  purpose of this subdivision.  The baseball team and its owner 
  3.18  must provide information sufficient to satisfy the commission of 
  3.19  the team's and the owner's ability to comply with the terms of 
  3.20  the 30-year use agreement. 
  3.21     (b) The commission and the owner must agree to the right of 
  3.22  the commission to approve all major organizational decisions, 
  3.23  including sale of the ownership interest in the team, or a 
  3.24  change in location of the team. 
  3.25     Subd. 3.  [REVENUES TO BE SUFFICIENT.] Two independent, 
  3.26  professional economic analyses have concluded that the 
  3.27  anticipated amount to be deposited in the debt service fund 
  3.28  under section 473.5994 is an amount sufficient to pay when due 
  3.29  all debt service, plus all administrative, operating, and 
  3.30  maintenance expense. 
  3.31     Subd. 4.  [COMMISSION'S RIGHT TO TITLE OF PROPERTY.] The 
  3.32  commission has acquired, or has contracted to acquire, title to 
  3.33  all real property including all easements and other 
  3.34  appurtenances needed for the construction and operation of the 
  3.35  baseball facility and has entered into agreements sufficient in 
  3.36  the judgment of the metropolitan council to ensure the receipt 
  4.1   of funds, at the time and in the amount required, to make any 
  4.2   payment upon which the commission's acquisition of title and 
  4.3   possession of the real property is conditioned. 
  4.4      Subd. 5.  [SUFFICIENT FUNDS FOR CLEARING PROPERTY.] The 
  4.5   commission has entered into agreements sufficient in the 
  4.6   judgment of the commission to ensure the receipt of funds, at 
  4.7   the time and in the amount required, to pay all costs, except as 
  4.8   provided in this section, of clearing the real property needed 
  4.9   for the construction and operation of the baseball facility of 
  4.10  all buildings, railroad tracks, and other structures including, 
  4.11  without limitation, all relocation costs including utility 
  4.12  relocation costs and all legal costs. 
  4.13     Subd. 6.  [NO STRIKES OR LOCKOUTS.] The commission has 
  4.14  executed agreements with appropriate labor organizations and 
  4.15  construction contractors that provide that no labor strikes or 
  4.16  management lockouts will delay construction. 
  4.17     Subd. 7.  [GUARANTEED MAXIMUM PRICE.] The commission has 
  4.18  executed agreements to provide for the construction of the 
  4.19  baseball facility for a guaranteed maximum price and substantial 
  4.20  completion date of April 1, 2001, and that include performance 
  4.21  bonds in an amount at least equal to 100 percent of the 
  4.22  guaranteed maximum price to cover any costs that may be incurred 
  4.23  over and above the guaranteed maximum price, including, but not 
  4.24  limited to, costs incurred by the commission or loss of revenues 
  4.25  resulting from incomplete construction on the substantial 
  4.26  completion date. 
  4.27     Subd. 8.  [OWNER TO OPERATE FACILITY.] The commission and 
  4.28  the owner have executed agreements that provide for the 
  4.29  operation and maintenance of the baseball facility.  The 
  4.30  agreements must provide that: 
  4.31     (1) the owner, in consultation with the commission, must 
  4.32  provide for management of the baseball facility and may contract 
  4.33  with one or more entities to operate part or all of the baseball 
  4.34  facility; and 
  4.35     (2) the owner, in consultation with the commission, may 
  4.36  contract with one or more concessionaires to provide food and 
  5.1   beverages for the baseball facility. 
  5.2      Sec. 8.  [473.5993] [DEBT FINANCING.] 
  5.3      Subdivision 1.  [PURPOSES.] The metropolitan council may by 
  5.4   resolution authorize the issuance and sale of its taxable 
  5.5   revenue bonds in a principal amount that does not exceed 
  5.6   $450,000,000 for the following purposes: 
  5.7      (1) to provide funds for site assembly and construction of 
  5.8   the baseball facility by the commission under this section, to 
  5.9   establish necessary debt service reserves, and to pay issuance 
  5.10  costs and costs of credit enhancement for the bonds, if any; 
  5.11     (2) to refund bonds issued under this section; 
  5.12     (3) to fund judgments entered by any court against the 
  5.13  commission or against the metropolitan council in matters 
  5.14  relating to the commission's functions related to the baseball 
  5.15  facility; and 
  5.16     (4) to fund a debt service reserve, provided that no more 
  5.17  than $50,000,000 of the bond proceeds may be used for this 
  5.18  purpose. 
  5.19     Subd. 2.  [PROCEDURE.] The bonds shall be sold, issued, and 
  5.20  secured in the manner provided in chapter 475 for bonds payable 
  5.21  solely from revenues and the metropolitan council shall have the 
  5.22  same powers and duties as a municipality and its governing body 
  5.23  in issuing bonds under that chapter.  The bonds may be sold at 
  5.24  any price and at public or private sale as determined by the 
  5.25  council.  The bonds shall be payable solely from revenues 
  5.26  described in section 473.5994.  The bonds shall not be a general 
  5.27  or moral obligation or debt of the council, the commission, any 
  5.28  other political subdivision of the state, or the state, and 
  5.29  shall not be included in the net debt of any city, county, or 
  5.30  other subdivision of the state for the purpose of any net debt 
  5.31  limitation.  No election is required. 
  5.32     Subd. 3.  [REVENUE ANTICIPATION CERTIFICATES.] In 
  5.33  anticipation of the revenues of the commission provided for in 
  5.34  this act, but subject to any limitation or prohibition in a bond 
  5.35  resolution or indenture, the council may authorize the issuance, 
  5.36  negotiation, and sale, in the form and manner and upon the terms 
  6.1   as it may determine, of revenue anticipation certificates.  The 
  6.2   principal amount of the certificates outstanding shall at no 
  6.3   time exceed 25 percent of the total amount of the revenues 
  6.4   anticipated.  The certificates shall mature not later than three 
  6.5   months after the close of the budget year.  As much of the 
  6.6   anticipated baseball facility revenues as may be needed for the 
  6.7   payment of the certificates and interest on them shall be paid 
  6.8   into a special debt service fund established for the 
  6.9   certificates in the council's financial records.  If for any 
  6.10  reason the anticipated revenues are insufficient, the 
  6.11  certificates and interest shall be paid from the first revenues 
  6.12  received, subject to any limitation or prohibition in a bond 
  6.13  resolution or indenture.  The proceeds of the certificates may 
  6.14  be used for any purpose for which the anticipated revenues may 
  6.15  be used or for any purpose for which bond proceeds under 
  6.16  subdivision 1 may be used. 
  6.17     Subd. 4.  [VALIDITY OF DEBT ISSUED.] The validity of any 
  6.18  bonds issued under this section, and the obligations of the 
  6.19  metropolitan council related to them, must not be conditioned 
  6.20  upon or impaired by the council's determinations made under 
  6.21  section 473.5992.  For the purposes of issuing bonds, the 
  6.22  determinations made by the council are conclusive, and the 
  6.23  council is obligated for the security and payment of the bonds, 
  6.24  but only from the sources pledged to them, irrespective of 
  6.25  determinations that may be erroneous, inaccurate, or otherwise 
  6.26  mistaken. 
  6.27     Subd. 5.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
  6.28  under this section, the metropolitan council must enter into an 
  6.29  agreement with the brokerage firm to be used in connection with 
  6.30  the issuance and sale of the bonds or revenue anticipation 
  6.31  certificates under this section, guaranteeing that fees and 
  6.32  charges payable to the brokerage firm under the agreement, 
  6.33  including any underwriting discounts, do not exceed fees and 
  6.34  charges customarily payable in connection with the issuance and 
  6.35  sale of bonds or revenue anticipation certificates. 
  6.36     Subd. 6.  [NO STATE GENERAL OBLIGATIONS.] Revenue bonds 
  7.1   that are issued, sold, and secured under this act are not an 
  7.2   obligation of the state.  Bonds issued and sold by the 
  7.3   metropolitan council under this act are payable solely from 
  7.4   revenues of the baseball facility.  The state shall not assume 
  7.5   any obligation or liability for bonds issued or sold under this 
  7.6   act. 
  7.7      Sec. 9.  [473.5994] [USE OF BASEBALL TEAM REVENUES.] 
  7.8      By March 1, 1998, and each subsequent year, the owner shall 
  7.9   determine the revenues of the baseball team for the previous 
  7.10  calendar year.  To the extent those revenues exceed the revenues 
  7.11  of the baseball team from the 1996 calendar year, increased by 
  7.12  the percentage increase in the most recent consumer price index 
  7.13  for all-urban consumers published by the department of labor 
  7.14  over the index for 1996, the owner must deposit the excess 
  7.15  revenues in the debt service fund, except as provided in section 
  7.16  473.5995, subdivision 3. 
  7.17     Sec. 10.  [473.5995] [COMMISSION FINANCES RELATED TO 
  7.18  BASEBALL STADIUM.] 
  7.19     Subdivision 1.  [BUDGET; COUNCIL REVIEW AND APPROVAL.] (a) 
  7.20  The commission shall prepare a proposed baseball stadium-related 
  7.21  budget by August 1 of each year.  The budget shall include the 
  7.22  baseball facility revenues and expenditures.  The budget must 
  7.23  show the estimated capital improvement fund revenues and 
  7.24  expenditures and the debt service costs and outstanding debt of 
  7.25  the commission related to site assembly and construction of the 
  7.26  baseball facility. 
  7.27     (b) Before August 15 of each year, the commission shall 
  7.28  hold a public hearing on a draft of the proposed budget after 
  7.29  reasonable public notice. 
  7.30     (c) The metropolitan council shall approve or disapprove 
  7.31  the budget by October 1 of each year. 
  7.32     (d) Before December 15 of each year, the commission shall 
  7.33  by resolution adopt a final budget and file it with the council 
  7.34  before December 20. 
  7.35     Subd. 2.  [DEBT SERVICE FUND.] As provided in section 
  7.36  473.5994, the commission must establish a debt service fund in 
  8.1   which to deposit funds the commission receives to ensure payment 
  8.2   of any debt issued by the metropolitan council under this act. 
  8.3      Subd. 3.  [CAPITAL REPAIR AND IMPROVEMENT FUND.] The 
  8.4   commission must establish a baseball facility capital repair and 
  8.5   improvement account in which to deposit revenues received from 
  8.6   gross revenues of the team not required to be deposited in the 
  8.7   debt service fund, in an amount to be mutually agreed to by the 
  8.8   owner and the commission as sufficient for this purpose.  The 
  8.9   money in this account may be used by the commission to make 
  8.10  capital repairs to and improvements of the baseball facility. 
  8.11     Subd. 4.  [REVENUES TO BE GIVEN TO TEAM.] Any revenues of 
  8.12  the baseball team that are not required to be paid into the debt 
  8.13  service fund under subdivision 2, or the capital repair and 
  8.14  improvement fund under subdivision 3, shall be given to the 
  8.15  baseball team. 
  8.16     Sec. 11.  [473.5996] [OPERATION OF BASEBALL FACILITY TO BE 
  8.17  SELF-SUPPORTING.] 
  8.18     (a) The legislature intends that the admissions, rates, 
  8.19  rentals, and other charges imposed in the operation of the 
  8.20  baseball facility permit the baseball facility to be 
  8.21  self-supporting in its construction and operations.  No state or 
  8.22  local government funds shall be contributed to the baseball team 
  8.23  or the commission for the support of the baseball facility. 
  8.24     (b) The legislature intends that, other than agreeing to 
  8.25  the use of increased revenues of the baseball team, the owner is 
  8.26  not required to make any contribution to the cost of 
  8.27  construction of the baseball facility.