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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 397-H.F.No. 2214 
                  An act relating to sports facilities; providing for 
                  financing of a major league baseball park; authorizing 
                  state and municipal revenue bonds; establishing funds 
                  in the state treasury; authorizing a state loan to the 
                  site city; imposing certain obligations on the major 
                  league baseball team; requiring a use agreement and a 
                  guaranty from major league baseball; providing a 
                  property tax exemption for the baseball park; 
                  exempting sales of construction materials for the park 
                  from the sales tax; requiring the state executive 
                  council to make findings; authorizing certain city 
                  taxes; authorizing parking surcharges; authorizing 
                  issuance of an additional liquor license; providing 
                  for reconstituting the metropolitan sports facilities 
                  commission under certain circumstances; authorizing a 
                  condominium; authorizing creation of a baseball 
                  district; authorizing joint powers agreements; 
                  requiring recommendations to the legislature on a 
                  joint use football stadium; providing for reports to 
                  the legislature; appropriating money; amending 
                  Minnesota Statutes 2000, sections 272.02, by adding a 
                  subdivision; 297A.71, by adding a subdivision; 
                  473.553, subdivision 14; proposing coding for new law 
                  in Minnesota Statutes, chapter 473; proposing coding 
                  for new law as Minnesota Statutes, chapter 473I. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 272.02, is 
        amended by adding a subdivision to read: 
           Subd. 50.  [BASEBALL PARK.] Real or personal property 
        acquired, owned, leased, controlled, used, or occupied as a 
        baseball park by a major league professional baseball team is 
        exempt from taxation but the property is subject to special 
        assessments levied by a political subdivision under chapter 429. 
        The baseball park includes parking facilities and land necessary 
        to and part of the use of the baseball park.  A use of the 
        property in any manner different from its use as a baseball park 
        must not be considered in determining the special benefit under 
        chapter 429 received by the properties.  Notwithstanding section 
        272.01, subdivision 2, or 273.19, real or personal property on 
        the premises of the baseball park leased by the local government 
        unit that operates the baseball park to another person or entity 
        for uses directly related to the operation of the baseball park 
        is exempt from taxation regardless of the length of the lease.  
        This subdivision expires one month after repayment of the bonds 
        issued to finance the baseball park. 
           Sec. 2.  Minnesota Statutes 2000, section 297A.71, is 
        amended by adding a subdivision to read: 
           Subd. 31.  [CONSTRUCTION MATERIALS; BASEBALL 
        PARK.] Materials, supplies used or consumed in, and equipment 
        incorporated into the construction or improvement of the 
        baseball park constructed under sections 473I.01 to 473I.10, are 
        exempt.  This subdivision expires one year after the first major 
        league baseball game is played in the baseball park. 
           Sec. 3.  Minnesota Statutes 2000, section 473.553, 
        subdivision 14, is amended to read: 
           Subd. 14.  [MEMBERSHIP CHANGE.] If the basketball and 
        hockey arena is acquired pursuant to section 473.598, and an 
        appropriation is made pursuant to section 240A.08, then the 
        number of members of the commission shall change, as follows.  
        On January 1 next following the initial appropriation pursuant 
        to section 240A.08, the commission shall consist of eight 
        members plus a chair appointed as provided in subdivision 3.  
        Six members shall be the members appointed by the Minneapolis 
        city council under subdivision 2 and subject to subdivision 5.  
        Two additional members, other than the chair, shall be appointed 
        by the governor; neither of those members shall reside in the 
        city of Minneapolis, and one of those members must reside 
        outside the metropolitan area.  If the commissioner of finance 
        determines, as provided in section 473I.11, that the commission 
        shall own the baseball park, the membership of the commission 
        will change as follows:  on January 1 next, following the 
        determination by the commissioner, the commission consists of 
        eight members plus a chair, three members appointed by the city 
        council of the municipality where the baseball park is located; 
        and six members appointed by the governor, three members from 
        the metropolitan area, and three members from outside the 
        metropolitan area.  The governor shall appoint the chair from 
        the nine members of the commission.  The term of one three of 
        the members appointed under this subdivision by the governor 
        shall end the first Monday in January 1996 2005 and the term of 
        the other member three members appointed by the governor shall 
        end the first Monday in January 1998 2006.  Thereafter, their 
        terms are as determined under subdivision 5. 
           Sec. 4.  [473.5995] [FOOTBALL STADIUM ACCOUNT.] 
           Subdivision 1.  [CREATION.] A football stadium account is 
        created in the special revenue fund in the state treasury.  On 
        July 1, 2002, the metropolitan sports facilities commission must 
        deposit $500,000 from its cash reserves in the football stadium 
        account. 
           Subd. 2.  [TRANSFER; SALE OF THE METRODOME.] Upon sale of 
        the metrodome, the metropolitan sports facilities commission 
        must transfer the net sales proceeds to the football stadium 
        account. 
           Sec. 5. [473I.01] [DEFINITIONS.] 
           Subdivision 1.  [APPLICATION.] The definitions in this 
        section apply to sections 473I.01 to 473I.13. 
           Subd. 2.  [MUNICIPALITY.] "Municipality" means a statutory 
        or home rule charter city in the metropolitan area, as defined 
        in section 473.121, subdivision 2. 
           Subd. 3.  [COMMISSION.] "Commission" means the metropolitan 
        sports facilities commission as defined in section 473.551. 
           Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of finance. 
           Sec. 6.  [473I.02] [SITE SELECTION FOR BASEBALL PARK.] 
           In selecting a site to be proposed to the team for the new 
        baseball park, the municipality shall consider at least the 
        following: 
           (1) the adequacy of the size of the site relative to the 
        preferred design for the baseball park; 
           (2) the adequacy of existing public infrastructure serving 
        the site, including parking and highway, road, and transit 
        access, to meet the demands created by events at the baseball 
        park in combination with other uses or events in the area that 
        create traffic, transit, or parking demands; 
           (3) the costs of any likely infrastructure improvements for 
        the facility; 
           (4) potential development advantages, including development 
        of compatible mixed use, commercial, and housing developments, 
        in the area surrounding the baseball park; 
           (5) compatibility of surrounding uses with the baseball 
        park; and 
           (6) appropriate aesthetic considerations. 
           Sec. 7.  [473I.03] [PRECONDITIONS TO ISSUING BONDS.] 
           Subdivision 1.  [MONEY AVAILABLE.] Before issuing bonds 
        under section 473I.06, the commissioner must determine that: 
           (1) $120,000,000 in cash from the team or other private 
        sources has been paid to the commissioner for deposit in a 
        construction account for leasehold improvement of the baseball 
        park; 
           (2) the municipality and the team have agreed to make 
        payments on the ballpark loan, to be credited to the baseball 
        park debt service account under section 473I.04, at the times 
        and in the amounts provided in the loan agreement, but not less 
        than $12,000,000 per year unless the commissioner of finance 
        determines otherwise; 
           (3) the revenues pledged to pay principal and interest on 
        the bonds will be sufficient to make all debt service payments 
        as they come due and make the bonds marketable; 
           (4) the bid demonstrates the financial capacity of the 
        municipality to make the annual payments under and satisfy any 
        other conditions of the loan under section 473I.05; and 
           (5) the other conditions required in this section have been 
        met. 
           Subd. 2.  [MAJOR LEAGUE BASEBALL GUARANTY.] The 
        commissioner of finance determines that the major league of 
        which the baseball team is a member and major league baseball 
        have both executed an agreement with the city that guarantees 
        the continuance of a major league franchise in the metropolitan 
        area for the greater of (1) 30 years from the date of the 
        agreement or (2) the term of the bonds under sections 473I.06 
        and 473I.11. 
           Subd. 3.  [BASEBALL ECONOMIC REFORM.] (a) The executive 
        council shall review information from major league baseball and 
        assess: 
           (1) whether major league baseball and the major league 
        baseball players' association are making a good faith effort to 
        agree upon a new economic system for major league baseball to 
        enhance the competitiveness of small market teams; and 
           (2) the prospects for adoption of changes to major league 
        baseball providing increased revenues for small market teams and 
        enhancing the viability of a new baseball park. 
           (b) The executive council shall assess whether, in its 
        opinion, there is reasonable basis for concluding that major 
        league baseball and the major league baseball players 
        association will agree to a system in the foreseeable future, 
        which, after full implementation and considering all of its 
        elements, will reduce the disparity in team revenues. 
           (c) The commissioner may issue bonds under section 473I.06 
        only after the executive council determines that there are 
        reasonable prospects for changes in the revenue sharing 
        structure of major league baseball that will provide sufficient 
        revenues for the major league baseball team to make the proposed 
        baseball park a financially viable facility for the term of the 
        bonds to be issued under sections 473I.06 and 473I.11.  The 
        executive council must make the determination within 30 days 
        after a referendum conducted under section 473I.07, subdivision 
        2, has passed, but no later than September 30, 2002.  The 
        determination of the executive council under this paragraph is 
        conclusive and is not subject to judicial review. 
           Subd. 4.  [CONSTRUCTION OF BASEBALL PARK; MAXIMUM 
        PRICE.] The municipality must have executed agreements that 
        provide for the construction of a roof-ready baseball park to be 
        owned by the municipality for a guaranteed maximum price not to 
        exceed $330,000,000, and that require performance bonds in an 
        amount at least equal to 100 percent of the guaranteed maximum 
        price to cover any costs incurred over and above the guaranteed 
        maximum price, including, but not limited to, costs incurred by 
        the municipality and loss of revenues resulting from incomplete 
        construction on the substantial completion date.  The major 
        league baseball team is responsible for and must pay all cost 
        overruns. 
           Subd. 5.  [CONSTRUCTION OF BASEBALL PARK; LABOR AND 
        MATERIALS.] The municipality must have entered into an agreement 
        with the major league baseball team that the major league 
        baseball team has the following obligations during the period of 
        construction of the baseball park: 
           (1) the payment of the prevailing wage rate as defined in 
        section 177.42 to all construction workers; 
           (2) the provision to the municipality of a signed agreement 
        between the major league baseball team and the construction 
        unions that will work on the baseball park that mandates a 
        no-strike and no-lockout period during construction of the 
        baseball park; and 
           (3) all construction materials for the baseball park 
        produced from or containing steel, so far as practicable, must 
        use steel produced in the United States from taconite produced 
        in Minnesota. 
           Subd. 6.  [SOCIALLY DISADVANTAGED PERSONS.] The major 
        league baseball team must have entered into an agreement with 
        the municipality to make all reasonable efforts to ensure that 
        businesses owned by socially disadvantaged persons are awarded 
        contracts for construction and operation of the baseball park in 
        proportion to the number of qualified businesses owned by 
        socially disadvantaged persons in the metropolitan area.  The 
        agreement must provide that the team will make all reasonable 
        efforts to ensure that employment of socially disadvantaged 
        persons for the construction or operation of the baseball park 
        will be proportionate to the number of qualified workers who are 
        socially disadvantaged persons in the metropolitan area.  For 
        the purposes of this clause, "socially disadvantaged persons" is 
        as defined in Minnesota Rules, part 1230.0150, subpart 24.  The 
        municipality must report to the legislature annually on the 
        implementation of this subdivision. 
           Subd. 7.  [USE AGREEMENT; TEAM.] The municipality must have 
        entered into a use agreement with the major league baseball team 
        that provides: 
           (1) the major league baseball team will use the baseball 
        park for all scheduled home preseason, regular season, and 
        postseason games that the major league baseball team is entitled 
        to play at home for not less than 30 years without an escape 
        clause for the major league baseball team; 
           (2) the baseball park will be available on nongame days for 
        potential use by the University of Minnesota, Minnesota state 
        colleges and universities, private colleges and universities, 
        the state high school league, the municipality for community 
        events, and the Minnesota amateur sports commission; 
           (3) the major league baseball team will ensure that a 
        portion of the tickets for its games are accessible and 
        affordable; 
           (4) the major league baseball team and the municipality 
        will cooperate in maintaining the facility as a smoke-free 
        facility; 
           (5) an American flag manufactured in the United States will 
        be publicly displayed at all baseball games and other events 
        conducted at the baseball park; 
           (6) the major league baseball team will receive all revenue 
        generated at the stadium, except as otherwise specifically 
        provided in this section; 
           (7) a listing of all revenue streams generated from use of 
        the baseball park with a specification of what revenues are 
        available to cover the major league baseball team operations, 
        what revenues accrue to the municipality, and what revenues are 
        available to repay the bonds; 
           (8) the major league baseball team is responsible for 
        repair, maintenance, and replacement of equipment or property in 
        the baseball park, including inspections by the municipality and 
        a representative of the state, as rent; 
           (9) the agreement must afford to the municipality the 
        rights and remedies at law and equity that are deemed necessary 
        and appropriate to provide reasonable assurance that the 
        baseball team and the owner will comply with the agreements 
        through the 30-year term.  The remedies must include specific 
        performance and injunctive relief and may include any other 
        equitable remedies, and any additional remedies or ownership, 
        voting, or other security arrangements the municipality 
        reasonably determines to be effective in ensuring the baseball 
        team will play the required games in the baseball park 
        throughout the 30-year term.  The legislature finds that a 
        material breach of an agreement between a municipality and a 
        professional athletic team that commits to the long-term playing 
        of major league games at public facilities causes irreparable 
        harm for which no adequate remedy at law is available and that 
        the grant of equitable relief to remedy the breach is in the 
        public interest and shall be liberally so construed; 
           (10) that transfer of any portion of ownership or equity in 
        the major league baseball team does not change any obligations, 
        responsibilities, or privileges under the agreement, this 
        section, or section 473I.07; and 
           (11) if there is a sale or transfer of ownership of the 
        major league baseball team, the owner of the team will pay to 
        the state an amount equal to the state's share of the 
        appreciated value of the team.  The state's share must be based 
        on the value of the state investment in the baseball park and 
        must be determined according to a formula included in the use 
        agreement. 
           Subd. 8.  [COMMUNITY OWNERSHIP OF TEAM.] The owner of the 
        team must attempt to reach an agreement on the sale of a 
        majority interest in the team to one or more buyers who will 
        keep the team in this state before attempting to sell the 
        majority interest to others. 
           Subd. 9.  [USE OF TEAM NAME AND LOGO.] The major league 
        baseball team must have entered into an agreement with the 
        municipality under which the municipality will obtain from the 
        team the rights to the control and use of the team name and logo 
        if the team relocates to another state.  Under the agreement, 
        the team must notify the municipality within 24 hours of signing 
        an agreement to relocate, and at midnight immediately following 
        notification, all income from existing contracts for the use of 
        the team name and logo and all team property with the team name 
        and logo, other than personal property of team members and 
        principals, will become the property of the municipality.  This 
        agreement and the requirement that it be entered into may not be 
        construed as authorizing or permitting the team to relocate 
        before the end of the lease and use agreements with the 
        municipality.  
           Subd. 10.  [COMPLIANCE WITH DISCOVERY ORDERS.] The 
        commissioner of finance determines with regard to a case in 
        Hennepin county district court, entitled Metropolitan Sports 
        Facilities Commission v. Minnesota Twins Partnership and Major 
        League Baseball, No. 0116998 (Hennepin County District Court), 
        that one of the following has occurred: 
           (1) disclosure to the metropolitan sports facilities 
        commission by the Minnesota Twins and the office of the 
        commissioner of major league baseball of all documents relating 
        to the Twins' finances, including tax records of the team and 
        its owners, deals between the commissioner and the Twins' owner, 
        contraction plans developed by team owners, and all other 
        documents covered by all applicable discovery orders issued by 
        the Hennepin county district court; 
           (2) the Hennepin county district court approves a 
        settlement agreement signed by the metropolitan sports 
        facilities commission and the Minnesota Twins; or 
           (3) the court has dismissed the case. 
           Sec. 8. [473I.04] [SPORTS FACILITIES FUND.] 
           Subdivision 1.  [CREATION.] The sports facilities fund is 
        established as a special account in the state treasury.  
           Subd. 2.  [BASEBALL PARK REVENUE BOND PROCEEDS ACCOUNT.] A 
        baseball park revenue bond proceeds account is established in 
        the sports facilities fund.  The proceeds of any bonds issued 
        under section 473I.06 must be credited to the account.  The 
        amount necessary to make the loan under section 473I.05 is 
        appropriated from the account to the commissioner.  
           Subd. 3.  [BASEBALL PARK DEBT SERVICE ACCOUNT.] (a) A 
        baseball park debt service account is established in the sports 
        facilities fund.  The assets of the account and its investment 
        earnings are pledged to and may only be used to pay principal 
        and interest on bonds issued under section 473I.06. 
           (b) The state board of investment shall contract with the 
        investment advisors specified by the team to invest money in the 
        endowment account.  The account must be invested in authorized 
        investments under section 11A.24, except (1) corporate 
        obligations described in section 11A.24, subdivision 3, 
        paragraph (b), and (2) investments described in section 11A.24, 
        subdivision 6, paragraph (a), clauses (1) to (4).  
           (c) The commissioner shall review the investment 
        performance of the account at the end of the second year after 
        the baseball park begins operations and every four years 
        thereafter.  The commissioner shall require the owner of the 
        baseball park to impose a surcharge on admissions to events at 
        the baseball park, in one-half of one percent increments, not to 
        exceed five percent, in an amount sufficient to equal the money 
        that would be in the fund, if an 8.5 percent annual rate of 
        return had been earned.  Notwithstanding the preceding sentence, 
        the commissioner shall set the required rate of return for the 
        first four years after the account is established.  If the rate 
        of return on the fund during the period exceeded 8.5 percent, 
        the commissioner may use the excess to retire or defease the 
        bonds.  In making the determination under this paragraph, the 
        commissioner must assume that the municipality has timely made 
        all payments required under the loan agreement, regardless of 
        whether the payments were made.  
           (d) In addition, the commissioner may require, as part of 
        the loan agreement, that the municipality exercise its authority 
        under section 473I.07 to provide money to the commissioner to 
        make up any deficiency that is not eliminated under paragraph 
        (c).  The municipality may recover from the team any payments 
        made under this paragraph. 
           (e) Money in the debt service account is appropriated to 
        the commissioner to pay principal and interest on bonds issued 
        under section 473I.06. 
           Sec. 9. [473I.05] [LOAN AGREEMENT.] 
           After making the determinations required by section 
        473I.03, the commissioner shall provide a loan to the 
        municipality from money in the baseball park bond proceeds 
        account, in an amount up to $330,000,000.  The proceeds of the 
        loan must be used by the municipality to acquire and prepare a 
        site for and to design, construct, furnish, and equip the 
        baseball park.  The commissioner shall specify the terms of the 
        loan agreement. 
           Sec. 10.  [473I.06] [BASEBALL PARK REVENUE BONDS.] 
           Subdivision 1.  [PURPOSES.] After making the determinations 
        required by section 473I.03, the commissioner may sell and issue 
        revenue bonds to make the loan to the municipality, to establish 
        a reserve fund or funds, and to pay the cost of issuance of the 
        bonds.  
           Subd. 2.  [AMOUNT.] The principal amount of the bonds 
        issued for the purposes specified in subdivision 1 must not 
        exceed $330,000,000.  The commissioner shall deposit an amount 
        of the proceeds equal to the contributions under section 
        473I.03, subdivision 1, clause (1), from the team and other 
        private sources, in the baseball debt service account. 
           Subd. 3.  [PROCEDURE.] The commissioner may sell and issue 
        the bonds on the terms and conditions the commissioner 
        determines to be in the best interests of the state.  The bonds 
        may be sold at public or private sale.  The commissioner may 
        enter any agreements or pledges the commissioner determines 
        necessary or useful to sell the bonds that are not inconsistent 
        with sections 473I.01 to 473I.07.  Sections 16A.672 to 16A.675 
        apply to the bonds.  The metropolitan sports facilities 
        commission shall transfer an amount, not to exceed one percent 
        of the principal amount of the bonds, from its accumulated 
        reserves to the commissioner to pay for the cost of issuance of 
        the bonds.  
           Subd. 4.  [REVENUE SOURCES.] The bonds are payable only 
        from the following sources: 
           (1) the principal and any investment earnings on the assets 
        of the debt service account; 
           (2) payments of the municipality and team under the loan 
        made by the commissioner; and 
           (3) other revenues pledged to the payment of the bonds. 
           Subd. 5.  [REFUNDING BONDS.] The commissioner may issue 
        bonds to refund outstanding bonds issued under subdivision 1, 
        including the payment of any redemption premiums on the bonds 
        and any interest accrued or to accrue to the first redemption 
        date after delivery of the refunding bonds.  The proceeds of the 
        refunding bonds may, in the discretion of the commissioner, be 
        applied to the purchases or payment at maturity of the bonds to 
        be refunded, or the redemption of the outstanding bonds on the 
        first redemption date after delivery of the refunding bonds and 
        may, until so used, be placed in escrow to be applied to the 
        purchase, retirement, or redemption.  Refunding bonds issued 
        under this subdivision must be issued and secured in the manner 
        provided by the commissioner. 
           Subd. 6.  [NOT A GENERAL OR MORAL OBLIGATION.] Bonds issued 
        under this section are not public debt, and the full faith, 
        credit, and taxing powers of the state are not pledged for their 
        payment.  The bonds may not be paid, directly in whole or part 
        from a tax of statewide application on any class of property, 
        income, transaction, or privilege.  Payment of the bonds is 
        limited to the revenues explicitly authorized to be pledged 
        under this section and section 473I.07 and the legislature 
        intends that no state money will be used to pay the bonds.  The 
        state neither makes nor has a moral obligation to pay the bonds, 
        if the pledged revenues and other legal security for them is 
        insufficient. 
           Subd. 7.  [TRUSTEE.] The commissioner may contract with and 
        appoint a trustee for bond holders.  The trustee has the powers 
        and authority vested in it by the commissioner under the bond 
        and trust indentures.  
           Subd. 8.  [PLEDGES.] Any pledge made by the commissioner is 
        valid and binding from the time the pledge is made.  The money 
        or property pledged and later received by the commissioner is 
        immediately subject to the lien of the pledge without any 
        physical delivery of the property or money or further act, and 
        the lien of any pledge is valid and binding as against all 
        parties having claims of any kind in tort, contract, or 
        otherwise against the commissioner, whether or not those parties 
        have notice of the lien or pledge.  Neither the order nor any 
        other instrument by which a pledge is created need be recorded. 
           Subd. 9.  [BONDS; PURCHASE AND CANCELLATION.] The 
        commissioner, subject to agreements with bondholders that may 
        then exist, may, out of any money available for the purpose, 
        purchase bonds of the commissioner at a price not exceeding (1) 
        if the bonds are then redeemable, the redemption price then 
        applicable plus accrued interest to the next interest payment 
        date thereon, or (2) if the bonds are not redeemable, the 
        redemption price applicable on the first date after the purchase 
        upon which the bonds become subject to redemption plus accrued 
        interest to that date. 
           Subd. 10.  [STATE PLEDGE AGAINST IMPAIRMENT OF 
        CONTRACTS.] The state pledges and agrees with the holders of any 
        bonds that the state will not limit or alter the rights vested 
        in the commissioner to fulfill the terms of any agreements made 
        with the bondholders, or in any way impair the rights and 
        remedies of the holders until the bonds, together with interest 
        on them, with interest on any unpaid installments of interest, 
        and all costs and expenses in connection with any action or 
        proceeding by or on behalf of the bondholders, are fully met and 
        discharged.  The commissioner may include this pledge and 
        agreement of the state in any agreement with the holders of 
        bonds issued under this section. 
           Sec. 11.  [473I.07] [LOCAL TAXING AUTHORITY.] 
           Subdivision 1.  [USE OF PROCEEDS.] (a) Subject to the 
        restrictions in this section, the municipality may impose one or 
        more of the taxes under this section to make the payments or 
        meet other obligations under the loan agreement under section 
        473I.05.  The taxes authorized in this section are in addition 
        to taxes authorized under other law.  The municipality may repay 
        the state ballpark loan using only revenues from the ballpark 
        and the taxes imposed under this section.  
           (b) The municipality may not use property taxes or other 
        money, other than ballpark revenues and taxes imposed under this 
        section, to pay for the cost of acquiring, improving, or 
        operating the ballpark.  The municipality may not expend more 
        than $50,000,000 for the cost of public infrastructure related 
        to the ballpark.  Public infrastructure related to the ballpark 
        means parking, street improvements, interstate highway 
        connections, sewer, water, and other utilities that are required 
        under an agreement with the major league baseball team or as 
        condition for financing of the baseball park. 
           (c) If the commissioner determines the money in the debt 
        service accounts is sufficient to pay the bonds in full, the 
        commissioner shall order a temporary or permanent reduction in 
        the taxes imposed under subdivisions 5, 6, and 7 in the order of 
        priority and as the commissioner determines appropriate. 
           Subd. 2.  [REFERENDUM.] (a) Before the municipality imposes 
        a tax under subdivision 5 or 6, the imposition of the tax must 
        be approved by the voters of the municipality at an election 
        held on a Tuesday before September 30, 2002. 
           (b) Notwithstanding any statute, charter provision, or 
        other law to the contrary, if the tax is approved in a 
        referendum under this subdivision, an ordinance enacting the tax 
        or authorizing expenditures of the proceeds of the tax is not 
        subject to another vote of the electorate by referendum, 
        initiative, charter amendment, or in any other manner. 
           Subd. 3.  [EXPIRATION; LOCAL OPTION TAXES.] When the bonds 
        issued under section 473I.06 have been defeased or retired, 
        subdivisions 4 to 7 and the taxes authorized by them expire. 
           Subd. 4.  [BASEBALL PARK ADMISSION TAX.] Notwithstanding 
        any other law and only upon the request of the commissioner 
        under section 473I.04, subdivision 3, paragraph (c), the city 
        shall impose an admission tax of up to five percent of the sale 
        price upon the granting, issuance, sale, or distribution, by any 
        private or public person, association, or corporation, of the 
        privilege of admission to activities at the baseball park.  No 
        other tax, surcharge, or governmental imposition, except the 
        taxes collected under chapter 297A, may be levied by any other 
        unit of government upon the sale or distribution. 
           The admission tax must be stated and charged separately 
        from the sales price so far as practicable and must be collected 
        by the grantor, seller, or distributor from the person 
        admitted.  The admission tax collected must be used for 
        repayment of the bonds issued under section 473I.06 or to pay 
        for improvements to the baseball park.  The tax is a debt from 
        that person to the grantor, issuer, seller, or distributor, and 
        the tax required to be collected is a debt owed by the grantor, 
        issuer, seller, or distributor to the municipality, recoverable 
        at law in the same manner as other debts.  Every person 
        granting, issuing, selling, or distributing tickets for 
        admissions to the ballpark may be required to secure a permit, 
        to file returns, to deposit security for the payment of the tax, 
        and to pay the penalties for nonpayment and interest on late 
        payments, as deemed necessary or expedient to ensure the prompt 
        and uniform collection of the tax. 
           Subd. 5.  [FOOD AND BEVERAGE TAXES.] Notwithstanding 
        section 477A.016, or any other limitation of law or charter, the 
        municipality may by ordinance impose taxes on sales of food, as 
        defined in section 297A.61, subdivision 31, and alcoholic 
        beverages, as defined in section 297G.01, not to exceed five 
        percent at a retail level on any business within the 
        municipality.  The municipality may impose this tax on all or 
        part of the municipality, as provided in the ordinance.  The 
        ordinance must provide for dedication of the taxes or fees, 
        after payment of collection and administrative expenses and 
        refunds, to payment of principal and interest on bonds issued 
        for the baseball park. 
           Subd. 6.  [LODGING TAX.] Notwithstanding section 477A.016, 
        or any other limitation of law or charter to the contrary, the 
        municipality may impose, by ordinance, a lodging tax at a rate 
        of no more than five percent on the gross receipts from the 
        furnishing for consideration of lodging as described in section 
        469.190, subdivision 1.  The municipality may impose this tax on 
        all or part of the municipality, as provided in the ordinance 
        and may provide for exempting hotels or motels based on the 
        number of rooms they have available.  The ordinance must provide 
        for dedication of the taxes and other income from the tax, after 
        payment of collection and administrative expenses and refunds, 
        to payment of the principal and interest on bonds issued for the 
        baseball park. 
           Subd. 7.  [PARKING TAX, SURCHARGE, OR BOTH.] The 
        municipality may, by ordinance, impose a parking tax or 
        surcharge or both of not less than $2 per vehicle per event at 
        the baseball park.  The parking tax and surcharge apply to 
        public and privately owned parking facilities in the area that 
        the municipality determines in its ordinance provide event 
        parking for the baseball park.  The ordinance must provide for 
        dedication of the taxes and other income from the tax, after 
        payment of collection and administrative expenses and refunds, 
        to payment of the principal and interest on bonds issued for the 
        baseball park. 
           Sec. 12.  [473I.08] [DESIGN AND CONSTRUCTION.] 
           The major league professional baseball team shall design 
        and construct the baseball park.  Before the design process is 
        complete and construction begins, the municipality and the team 
        must hold at least one public hearing on the proposed design.  
        All money paid to the municipality under section 473I.05 must be 
        managed by the municipality and made available to the team as 
        the team deems necessary for construction purposes. 
           Sec. 13.  [473I.09] [BASEBALL PARK; LIQUOR LICENSE.] 
           The city in which the baseball park is located may issue an 
        intoxicating liquor license for the premises of the baseball 
        park.  This license is in addition to the number authorized by 
        law.  All provisions of chapter 340A not inconsistent with this 
        section apply to the license authorized under this section. 
           Sec. 14.  [473I.10] [CONDOMINIUM.] 
           The municipality selected to be the location of the 
        baseball park may, by itself or together with another owner, and 
        any other public or private person or entity, as to real or 
        personal property comprising or appurtenant or ancillary to the 
        baseball park, act as a declarant and establish a condominium or 
        leasehold condominium under chapter 515A or as a common interest 
        community or leasehold common interest community under chapter 
        515B, and may grant, establish, create, or join in other or 
        related easements, agreements, and similar benefits and burdens 
        that the municipality may deem necessary or appropriate, and may 
        exercise any and all rights and privileges, and assume 
        obligations under them as a declarant, unit owner, or otherwise, 
        insofar as practical and consistent with this section.  The 
        municipality may be a member of an association and the chair, 
        any members of its governing body, and any officers and 
        employees of the municipality may serve on the board of an 
        association under chapter 515A or 515B. 
           Sec. 15.  [473I.11] [ALTERNATIVE BONDING AUTHORITY.] 
           Subdivision 1.  [COMMISSIONER DETERMINATION.] If the 
        commissioner determines that all or a portion of the bonds could 
        be issued by the municipality at a lower rate of interest than 
        the bonds under section 473I.06, the municipality that is the 
        site for the baseball park may issue a portion of the bonds 
        under this section and chapter 475.  The commissioner shall file 
        the determination, in writing, with the secretary of state and 
        the provisions of section 473.553, subdivision 14, take effect. 
           Subd. 2.  [ALTERNATIVE OWNERSHIP OF BALLPARK.] (a) If the 
        commissioner determines to authorize the municipality to issue 
        bonds under this section: 
           (1) the ownership of the baseball park must be in the 
        commission; and 
           (2) the commission has all of the powers and 
        responsibilities of the municipality under the provisions of 
        sections 473I.03; 437I.04; 473I.05; 473I.06; 473I.07, 
        subdivision 4; 473I.08; and 473I.10. 
           (b) The commission shall segregate and maintain separate 
        accounts and records of the revenue and expenditures for the 
        baseball park and may not use baseball park money for its 
        operations and costs related to other sports facilities. 
           Subd. 3.  [AUTHORIZATION REDUCTION.] The principal amount 
        of any bonds issued under this section must be deducted from the 
        principal amount of the bonds authorized under section 473I.06. 
           Subd. 4.  [TAXABILITY.] The bonds must be issued as 
        tax-exempt revenue bonds. 
           Subd. 5.  [PROCEDURE.] If the municipality issues bonds 
        under this section, the bonds must be sold, issued, and secured 
        in the manner provided in chapter 475 for bonds payable solely 
        from revenues and the municipality has the same powers and 
        duties as a municipality and its governing body in issuing bonds 
        under that chapter.  The bonds may be sold at any price and at 
        public or private sale as determined by the municipality.  The 
        bonds may be sold in one or more series.  Different series may 
        be backed by different revenue sources.  An election is not 
        required.  The municipality may enter any agreements or 
        arrangements it deems necessary or useful to issue the bonds.  
        The municipality must give the proceeds of the bonds, less the 
        cost of issuance, to the commission to be used for the purposes 
        of acquiring and constructing the ballpark. 
           Subd. 6.  [SECURITY.] The municipality may pledge to the 
        payment of and the bonds are payable from the taxes imposed by 
        the municipality under section 473I.07, except subdivision 4. 
           Sec. 16.  [473I.12] [BASEBALL PARK DISTRICT.] 
           The municipality may establish a baseball park district to 
        foster the development and continuing growth of compact, 
        pedestrian-oriented, compatible mixed uses within buildings and 
        blocks around the baseball park.  Before establishing the 
        district, the municipality must: 
           (1) give public notice of the creation and boundaries of 
        the district, including reasons that support the boundaries set 
        by the municipality; and 
           (2) hold at least one public hearing on the proposed 
        establishment of the district. 
           Sec. 17.  [473I.13] [JOINT POWERS AGREEMENT.] 
           Two or more cities may enter a joint powers agreement under 
        section 471.59 to serve as a municipality for purposes of 
        sections 473I.01 to 473I.12.  If a joint powers agreement is 
        entered for this purpose, the obligations and powers of and the 
        limitations on a municipality under sections 473I.01 to 473I.12 
        apply to each of the cities. 
           Sec. 18.  [AGREEMENT ON FOOTBALL STADIUM.] 
           Subdivision 1.  [PARTIES TO AGREEMENT.] The board of 
        regents of the University of Minnesota is requested to meet with 
        the Minnesota Vikings Football Club, Inc., and to consult with 
        the chair of the metropolitan sports facilities commission for 
        the purpose of developing an agreement relating to a football 
        stadium to be constructed on the University of Minnesota campus, 
        owned by the University of Minnesota, and used by the University 
        of Minnesota football team and the Minnesota Vikings. 
           Subd. 2.  [STADIUM PREDESIGN.] The agreement must include a 
        predesign proposal for a joint-use football stadium.  The 
        agreement must reflect the joint recommendations of the parties 
        relating to facility program, site, parking, utilities and 
        transportation requirements, environmental remediation, 
        schedule, design guidelines, project delivery method, mitigation 
        of neighborhood impacts, and project costs.  The agreement 
        should assume that legislation authorizing the financing and 
        construction of the stadium will be enacted by March 1, 2003, in 
        order to take advantage of the National Football League's 
        stadium construction program contribution. 
           Subd. 3.  [MEMORANDUM OF UNDERSTANDING.] The agreement must 
        include a memorandum of understanding addressing all material 
        issues related to the design, construction, governance, and 
        ongoing operation of a joint-use football stadium and related 
        parking structures.  The memorandum of understanding must 
        incorporate provisions recognizing the unique requirements and 
        constraints inherent in locating a football stadium on the Twin 
        Cities campus of the University of Minnesota and the obligation 
        of the University of Minnesota to assure that the stadium is 
        designed, managed, and used in a manner consistent with the 
        mission of the university. 
           Subd. 4.  [REPORT TO THE LEGISLATURE.] The agreement must 
        be presented to the majority leader and minority leader of the 
        Senate and the speaker and minority leader of the house of 
        representatives by December 1, 2002. 
           Subd. 5.  [APPROPRIATION.] Up to $500,000 is appropriated 
        on July 2, 2002, from the football stadium account created in 
        section 473.5995 to the University of Minnesota to be used, in 
        consultation with the Minnesota Vikings and the commissioner of 
        finance, to meet the cost of developing the agreement described 
        in this section. 
           Sec. 19.  [METRODOME REVENUES.] 
           The metropolitan sports facilities commission shall meet 
        with the sports teams who are tenants in its metrodome facility 
        to discuss terms and conditions of the teams' respective use 
        agreements in order to enhance the teams' revenue streams. 
           Sec. 20.  [EFFECTIVE DATE.] 
           Sections 1 to 19 are effective the day following final 
        enactment. 
           Presented to the governor May 20, 2002 
           Signed by the governor May 22, 2002, 1:27 p.m.