Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 55-H.F.No. 1355 
           An act relating to the city of Minneapolis; giving the 
          city certain powers pertaining to conventions and 
          tourism activities; providing for the use of certain 
          tax revenues; amending Laws 1986, chapter 396, 
          sections 2, subdivision 1; and 4, subdivisions 2 and 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [MINNEAPOLIS; CONVENTION AND VISITORS 
ACTIVITIES.] 
    Notwithstanding any contrary provision of law or charter, 
the governing body of the city of Minneapolis may appropriate 
and spend money for the following purposes: 
    (a) planning and conducting information and publicity 
programs to attract tourists, visitors, and other interested 
persons to the city; 
    (b) publishing, disseminating and distributing 
informational and promotional literature relating to the city 
and its hospitality facilities and attractions; 
    (c) marketing the use of convention and auditorium 
facilities in the city; 
    (d) providing hospitality services; and 
    (e) promoting exhibitions, trade shows, meetings, 
conventions and related functions which will use the facilities. 
The governing body may by ordinance create an agency or board to 
perform these purposes or it may contract for the performance of 
all or part of the activities necessary to carry out these 
purposes with a local chamber of commerce or any nonprofit 
corporation organized for similar objectives.  The chamber of 
commerce or corporation may spend the funds provided for these 
purposes under the direction of its board of directors, subject 
to the accounting and other conditions that the governing body 
may prescribe.  All activities performed to carry out these 
purposes are deemed to be for a public purpose.  
    The city, agency, board, chamber of commerce or corporation 
may spend money for these purposes in the same manner that a 
private person, firm, corporation and association makes 
expenditures for similar purposes.  Notwithstanding any contrary 
provision of law or charter any member of the city council, or 
officer or employee of the city may be a member of the board of 
directors of any nonprofit corporation performing all or part of 
the activities necessary to carry out the purposes specified in 
this section. 
    Sec. 2.  [LIABILITY.] 
    The governing body of the city may defend, save harmless 
and indemnify any local chamber of commerce or nonprofit 
corporation and its officers and employees that contracts with 
the city for the purposes stated in section 1, against any claim 
or demand arising out of the performance of those purposes.  
Liability of the chamber of commerce or nonprofit corporation, 
its officers and employees, for a tort claim or demand within 
the scope of performance of those purposes shall not exceed the 
limits of liability provided in Minnesota Statutes, section 
466.04 for a municipality.  
    Sec. 3.  [EMPLOYEES.] 
    An employee of the city may be assigned to a contracting 
nonprofit corporation as provided in Minnesota Statutes, section 
15.59 for a period of individual assignment not to exceed 48 
months.  
     Sec. 4.  Laws 1986, chapter 396, section 2, subdivision 1, 
is amended to read: 
    Subdivision 1.  [ACTIVITIES; CONTRACTS.] The city may 
acquire, design, construct, equip, improve, control, operate, 
and maintain the convention center and related facilities.  The 
city shall have all powers necessary or convenient for those 
purposes and may enter into any contract for those purposes, 
including the financing of the convention center and any related 
facilities.  
    The city may contract for construction materials, supplies, 
and equipment in accordance with Minnesota Statutes, section 
471.345, except that it may enter into contracts with persons, 
firms, or corporations to perform one or more or all of the 
functions of architect, engineer, and construction manager with 
respect to all or part of a project to build or remodel the 
convention center and related facilities.  Contractors shall be 
selected through the process of public bidding, provided that it 
shall be permissible for the city to narrow the listing of 
eligible bidders to those which the city determines to possess 
sufficient expertise to perform the intended functions and the 
city may negotiate with the three lowest responsible bidders to 
achieve the lowest possible bid.  Notwithstanding any other law 
or charter provision to the contrary, the city may, at the 
discretion of the city council, enter into agreements with 
appropriate labor organizations and contractors which provide 
that no strike or lockout may be ordered during the term of the 
agreements.  These provisions and necessary procedures may be 
utilized for the purpose of maintaining employment stability and 
avoiding delay or interference with the performance of the 
fast-track construction schedule in connection with the project. 
The city may require any construction manager to certify a 
construction price and completion date to the city.  The city 
may require the posting of a bond in an amount determined by the 
city to cover any costs which may be incurred over and above the 
certified price, including but not limited to costs incurred by 
the city or loss of revenues resulting from incomplete 
construction on the completion date and any other obligations 
the city may require the construction manager to bear.  The city 
shall secure surety bonds as required in Minnesota Statutes, 
section 574.26, securing payment of just claims in connection 
with all public work undertaken by it.  Persons entitled to the 
protection of the bonds may enforce them as provided in 
Minnesota Statutes, sections 574.28 to 574.32, and shall not be 
entitled to a lien on any property of the city under the 
provisions of Minnesota Statutes, sections 514.01 to 514.16. 
    Sec. 5.  Laws 1986, chapter 396, section 4, subdivision 2, 
is amended to read: 
    Subd. 2.  [ENFORCEMENT; COLLECTION.] (a) Except as provided 
in paragraph (b), these taxes shall be subject to the same 
interest penalties and other rules imposed under Minnesota 
Statutes, chapter 297A.  The commissioner of revenue may enter 
into appropriate agreements with the city to provide for 
collection of these taxes by the state on behalf of the city.  
The commissioner may charge the city a reasonable fee for its 
collection from the proceeds of any taxes.  
    (b) A taxpayer located outside of the city of Minneapolis 
who collects use tax under this section in an amount that does 
not exceed $10 in a reporting period is not required to remit 
that tax until the amount of use tax collected is $10. 
    Sec. 6.  Laws 1986, chapter 396, section 4, subdivision 3, 
is amended to read: 
    Subd. 3.  [USE OF PROPERTY.] Revenues received from the tax 
may only be used: 
    (1) to pay costs of collection; 
    (2) to pay or secure the payment of any principal of, 
premium or interest on bonds issued in accordance with this act; 
    (3) to pay costs to acquire, design, equip, construct, 
improve, maintain, operate, administer, or promote the 
convention center or related facilities, including financing 
costs related to them; 
    (4) to pay reasonable and appropriate costs determined by 
the city to replace housing and the ice arena removed from the 
site; and 
    (5) to maintain reserves for the foregoing purposes deemed 
reasonable and appropriate by the city. 
In the event of any amendment to chapter 297A enacted subsequent 
to the effective date of this act which exempts sales or uses 
which were taxable under chapter 297A on the effective date of 
this act, the city may by ordinance extend the tax authorized 
hereby to any such sales or uses provided that the city council 
shall have determined that such extension is necessary to 
provide revenues for the uses to which taxes may be applied 
under this section and further provided that, in the estimation 
of the city council, the aggregate annual collections following 
such extension will not exceed the aggregate annual collections 
which would have been generated if chapter 297A, as in effect on 
the effective date of this act, were then in effect.  Any 
revenue bonds issued in accordance with this act may, with the 
consent of the city council, contain a covenant that the tax 
will be so extended to the extent necessary to pay principal and 
interest on the bonds when due. 
    Money for replacement housing shall be made available by 
the city only for new construction, conversion of nonresidential 
buildings, and for rehabilitation of vacant residential 
structures, only if all of the units in the newly constructed 
building, converted nonresidential building, or rehabilitated 
residential structure are to be used for replacement housing. 
    Sec. 7.  [EFFECTIVE DATE.] 
    This act is effective the day after compliance by the 
governing body of the city of Minneapolis with Minnesota 
Statutes, section 645.021, subdivision 3. 
    Approved May 7, 1987