Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1984 

                        CHAPTER 607-S.F.No. 1976
           An act relating to regulated industries; changing 
          conditions that regulate the telecast of games at 
          metropolitan sports facilities; amending Minnesota 
          Statutes 1982, section 473.581, subdivision 3; 
          repealing Minnesota Statutes 1982, section 473.568. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 473.581, 
subdivision 3, is amended to read: 
    Subd. 3.  [LIMITATIONS.] The principal amount of the bonds 
issued pursuant to subdivision 1, clause (a), shall not exceed 
the amounts hereinafter authorized.  If the commission's 
proposal and the construction contracts referred to in clause 
(g) of this subdivision provide for the construction of a 
covered multipurpose sports facility, the total cost of 
constructing the facility under the construction contracts, not 
including costs paid from funds provided by others, and the 
principal amount of bonds issued pursuant to subdivision 1, 
clause (a), shall be limited to $55,000,000.  If the 
commission's proposal and the construction contracts do not 
provide for the construction of a cover on a proposed 
multipurpose sports facility and the commission does not 
otherwise contract for the construction or acquisition of a 
cover for the sports facility, the principal amount shall be 
limited to $42,000,000.  If the commission's proposal and the 
construction contracts provide for the construction of a new 
sports facility for football and soccer and for remodeling the 
existing metropolitan stadium for baseball, the principal amount 
shall be limited to $37,500,000.  If the commission's proposal 
and the construction contracts provide for the reconstruction 
and remodeling of the existing metropolitan stadium as an 
uncovered multipurpose sports facility, the principal amount 
shall be limited to $25,000,000.  The bonds issued pursuant to 
subdivision 1, clause (a), shall bear an average annual rate of 
interest, including discount, not in excess of 7-1/2 percent.  
The proceeds of the bonds issued pursuant to subdivision 1, 
clause (a), shall be used only for the acquisition and 
betterment of sports facilities suitable for baseball, football 
and soccer, with a seating capacity for football and soccer of 
approximately 65,000 persons.  The council shall issue its bonds 
and construction of sports facilities may commence when the 
council has made the following determinations:  
             (a) The commission has executed agreements with major 
league professional baseball and football organizations to use 
its sports facilities for all scheduled regular season home 
games and play-off home games and, in the case of the football 
organization, for at least one-half of its exhibition games 
played each season.  The agreements shall be for a period of not 
more than 30 years nor less than the term of the longest term 
bonds that in the council's judgment it may find it necessary to 
issue to finance the acquisition and betterment of the 
commission's sports facilities.  The agreements may contain 
provisions negotiated between the organizations and the 
commission which provide for termination upon conditions related 
and limited to the bankruptcy, insolvency, or financial 
capability of the organization.  The agreements shall provide 
that, in the event of breach of the agreements, the defaulting 
organization shall pay damages annually to the commission.  The 
annual payment shall be in an amount equal to the annual average 
of all revenue derived by the commission from attendance at 
events and activities of the defaulting organization during the 
years prior to default, provided that the damages shall not 
exceed in any year an amount sufficient, with other revenues of 
the commission but excluding proceeds of the taxes under section 
473.592, to pay all expenses of operation, maintenance, 
administration, and debt service for the facilities used by the 
defaulting organization during the same year.  The damages shall 
be payable during the period from the occurrence of the default 
to the date on which another major league professional baseball 
or football organization, replacing the defaulting organization, 
enters into a use agreement with the commission for not less 
than the then remaining term of the original agreement.  The 
agreements with the teams shall provide that no closed circuit 
or pay television broadcasting of events in the sports facility 
may be allowed without the approval of the commission.  The 
agreements shall include provisions protecting the commission 
and the council in the event of change in ownership of the 
professional teams.  
             (b) The commission has executed agreements with 
professional baseball and football major leagues which guarantee 
the continuance of franchises in the metropolitan area for the 
period of the agreements referred to in clause (a).  
             (c) The proceeds of bonds provided for in this subdivision 
will be sufficient, together with other capital funds that may 
be available to the commission, to construct or remodel and to 
furnish the sports facilities proposed by the commission, 
including the appropriate professional fees and charges but 
excluding, except as otherwise provided in this subdivision, the 
acquisition, clearance, relocation, and legal costs referred to 
in clauses (d) and (e).  
             (d) The commission has acquired, without cost to the 
commission or the council except as provided in this 
subdivision, title to all real property including all easements 
and other appurtenances needed for the construction and 
operation of any proposed sports facilities or has received a 
grant of funds or has entered into an agreement or agreements 
sufficient in the judgment of the council to assure the receipt 
of funds, at the time and in the amount required, to make any 
payment upon which the commission's acquisition of title and 
possession of the real property is conditioned.  
             (e) The commission has received a grant of funds or 
entered into an agreement or agreements sufficient in the 
judgment of the council to assure the receipt of funds, at the 
time and in the amount required, to pay all costs, except as 
provided in this subdivision, of clearing the real property 
needed for the construction and operation of any proposed sports 
facilities of all buildings, railroad tracks and other 
structures, including without limitation all relocation costs, 
all utility relocation costs, and all legal costs.  
             (f) The commission has executed agreements with 
appropriate labor organizations and construction contractors 
which provide that no labor strike or management lockout will 
halt, delay or impede construction. 
             (g) The commission has executed agreements which will 
provide for the construction of its sports facilities for a 
certified construction price and completion date and which 
include performance bonds in an amount at least equal to 100 
percent of the certified price to cover any costs which may be 
incurred over and above the certified price, including but not 
limited to costs incurred by the commission or loss of revenues 
resulting from incomplete construction on the completion date.  
             (h) The environmental impact statement for the sports 
facility or facilities has been accepted by the environmental 
quality board, and the pollution control agency and any other 
department, agency, or unit of government have taken the actions 
necessary to permit the construction of the sports facility or 
facilities.  
    (i) At least 50 percent of the private boxes provided for 
in the commission's proposal for the sports facility or 
facilities are sold or leased for at least five years.  
    (j) The anticipated revenue from the operation of the 
sports facility or facilities plus any additional available 
revenue of the commission and the revenue from the taxes under 
section 473.592 will be an amount sufficient to pay when due all 
debt service plus all administration, operating and maintenance 
expense.  
    (k) The commission has studied and considered the needs of 
the University of Minnesota for athletic facilities for a 
prospective 20 year period.  
    (l) The municipality where the facility is to be 
constructed has entered into an agreement as contemplated in 
section 473.592.  
    (m) The commission has entered into an agreement or 
agreements with a purchaser or purchasers of tickets of 
admission for a period of not less than 20 years which will 
assure that, if the professional football organization cannot 
comply with the provisions of section 473.568, whenever more 
than 90 and less than 100 percent of the tickets of admission 
for seats at any professional football game, which were 
available for purchase by the general public 120 hours or more 
before the scheduled beginning time of the game either at the 
sports facility where the game is to be played or at the box 
office closest to the sports facility, have been purchased 72 
hours or more before the beginning time of the game, then all of 
such tickets which remain unsold will be purchased in sufficient 
time to permit the telecast to areas within the state which 
otherwise would not receive the telecast because of the terms of 
an agreement in which the professional football league has sold 
or otherwise transferred all or part of the rights of the 
league's member organizations in the sponsored telecasting of 
games of the organizations.  The party or parties agreeing to 
the purchase of such unsold tickets shall be obligated for a 
period of at least 20 years in an amount determined by the 
council to be sufficient to assure the purchase of all such 
unsold tickets.  An agreement or agreements satisfying the 
requirements of this clause shall free the professional football 
organization from the prohibition otherwise imposed on it by 
section 473.568.  
    (n) The council has entered into an agreement with the 
brokerage firm or brokerage firms to be used in connection with 
the issuance and sale of the bonds guaranteeing that fees and 
charges payable to the brokerage firm or firms in connection 
therewith, including any underwriting discounts, shall not 
exceed fees and charges customarily payable in connection with 
the issuance and sale of bonds secured by the pledge of the full 
faith and credit of the municipality in which any new sports 
facility is to be located.  
    The validity of any bonds issued under subdivision 1, 
clause (a), and the obligations of the council and commission 
related thereto, shall not be conditioned upon or impaired by 
the council's determinations made pursuant to this subdivision.  
For purposes of issuing the bonds the determinations made by the 
council shall be deemed conclusive, and the council shall be and 
remain obligated for the security and payment of the bonds 
irrespective of determinations which may be erroneous, 
inaccurate, or otherwise mistaken.  
    Sec. 2.  [REPEALER.] 
    Minnesota Statutes 1982, section 473.568, is repealed. This 
repeal is based solely upon the continued effectiveness of the 
agreement or agreements entered into by the Metropolitan Sports 
Facilities Commission and the purchaser or purchasers of tickets 
of admission as provided for by Laws 1979, chapter 203, section 
8.  Such agreements shall remain in effect throughout their 
terms and the commission shall have no authority to terminate or 
modify such agreements. 
    Approved May 2, 1984