Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2002, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes