1.1                          A bill for an act 
  1.2             relating to public administration; providing for 
  1.3             completion of the Minneapolis convention center; 
  1.4             authorizing state bonds; providing for debt service; 
  1.5             authorizing the city to expand the convention center; 
  1.6             repealing expenditure limit on original construction; 
  1.7             dealing with sales tax in several respects; 
  1.8             appropriating money; amending Laws 1986, chapter 396, 
  1.9             sections 2, subdivision 1, as amended; and 6; 
  1.10            repealing Laws 1986, chapter 396, section 2, 
  1.11            subdivision 2. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [MINNEAPOLIS CONVENTION CENTER.] 
  1.14     $185,000,000 is appropriated from the bond proceeds fund to 
  1.15  the city of Minneapolis to complete its convention center.  The 
  1.16  appropriation may be spent in accordance with the authority and 
  1.17  powers granted the city in Laws 1986, chapter 396, as amended, 
  1.18  or any other law. 
  1.19     Sec. 2.  [BOND SALE.] 
  1.20     To provide the money appropriated in this act from the 
  1.21  state bond proceeds fund, the commissioner of finance, on 
  1.22  request of the governor, shall sell and issue bonds of the state 
  1.23  in an amount up to $185,000,000 in the manner, upon the terms, 
  1.24  and with the effect prescribed by Minnesota Statutes, sections 
  1.25  16A.631 to 16A.675, and by the Minnesota Constitution, article 
  1.26  XI, sections 4 to 7. 
  1.27     Sec. 3.  [USE OF SALES TAX SURPLUS FOR DEBT SERVICE.] 
  1.28     Subdivision 1.  [CONTINUATION OF SALES TAX.] Except as 
  2.1   otherwise changed by state law, the city of Minneapolis must 
  2.2   continue to impose the sales and use tax authorized by Laws 
  2.3   1986, chapter 396, section 4, that is in effect on January 1, 
  2.4   1997, until the bonds issued under section 2 are retired. 
  2.5      Subd. 2.  [SALES TAX SURPLUS TO RETIRE BONDS.] If, after 
  2.6   December 31, 2010, the proceeds of the tax referred to in 
  2.7   subdivision 1 produce an amount in excess of the amount required 
  2.8   in the current year for the purposes of Laws 1986, chapter 396, 
  2.9   section 4, subdivision 3, as determined by the city of 
  2.10  Minneapolis, the surplus must be deposited in the state treasury 
  2.11  and credited to the debt service account to retire the bonds 
  2.12  issued under section 2.  The surplus must be paid in this way 
  2.13  each year until the bonds issued under section 2 are retired as 
  2.14  provided by law. 
  2.15     Subd. 3.  [NOT DEBT OR OBLIGATION OF THE CITY.] The 
  2.16  payments required of the city of Minneapolis under subdivision 2 
  2.17  are not debt or obligations of the city of Minneapolis under 
  2.18  Minnesota Statutes, chapter 475, or other law. 
  2.19     Sec. 4.  Laws 1986, chapter 396, section 2, subdivision 1, 
  2.20  as amended by Laws 1987, chapter 55, section 4, and Laws 1989, 
  2.21  chapter 54, section 2, is amended to read: 
  2.22     Subdivision 1.  [ACTIVITIES; CONTRACTS.] The city may 
  2.23  acquire, design, construct, equip, improve, expand, control, 
  2.24  operate, and maintain the convention center and related 
  2.25  facilities.  The city shall have all powers necessary or 
  2.26  convenient for those purposes and may enter into any contract 
  2.27  for those purposes, including the financing of the convention 
  2.28  center and any related facilities. 
  2.29     The city may contract for construction materials, supplies, 
  2.30  and equipment in accordance with Minnesota Statutes, section 
  2.31  471.345, except that it may enter into contracts with persons, 
  2.32  firms, or corporations to perform one or more or all of the 
  2.33  functions of architect, engineer, and construction manager with 
  2.34  respect to all or part of a project to build or remodel the 
  2.35  convention center and related facilities.  Contractors shall be 
  2.36  selected through the process of public bidding provided that it 
  3.1   shall be permissible for the city to narrow the listing of 
  3.2   eligible bidders to those which the city determines to possess 
  3.3   sufficient expertise to perform the intended functions and the 
  3.4   city may negotiate with the three lowest responsible bidders to 
  3.5   achieve the lowest possible bid.  Notwithstanding any other law 
  3.6   or charter provision to the contrary, the city may, at the 
  3.7   discretion of the city council, enter into agreements relating 
  3.8   to the convention center, related facilities or any other city 
  3.9   construction project with appropriate labor organizations and 
  3.10  contractors which provide that no strike or lockout may be 
  3.11  ordered during the term of the agreements.  These provisions and 
  3.12  necessary procedures may be utilized for the purpose of 
  3.13  maintaining employment stability and avoiding delay or 
  3.14  interference with the performance of the fast-track construction 
  3.15  schedule in connection with the project.  The city may require 
  3.16  any construction manager to certify a construction price and 
  3.17  completion date to the city.  The city may require the posting 
  3.18  of a bond in an amount determined by the city to cover any costs 
  3.19  which may be incurred over and above the certified price, 
  3.20  including but not limited to costs incurred by the city or loss 
  3.21  of revenues resulting from incomplete construction on the 
  3.22  completion date and any other obligations the city may require 
  3.23  the construction manager to bear.  The city shall secure surety 
  3.24  bonds as required in Minnesota Statutes, section 574.26, 
  3.25  securing payment of just claims in connection with all public 
  3.26  work undertaken by it.  Persons entitled to the protection of 
  3.27  the bonds may enforce them as provided in Minnesota Statutes, 
  3.28  sections 574.28 to 574.32, and shall not be entitled to a lien 
  3.29  on any property of the city under the provisions of Minnesota 
  3.30  Statutes, sections 514.01 to 514.16.  Purchases of materials, 
  3.31  supplies, or equipment used or consumed in the construction, 
  3.32  equipment, improvement, or expansion of the convention center 
  3.33  are exempt from the taxes imposed under chapter 297A and from 
  3.34  any sales and use tax imposed by a local unit of government 
  3.35  notwithstanding any ordinance or charter provision.  This 
  3.36  exemption applies regardless of whether the materials, supplies, 
  4.1   or equipment are purchased by the city or by a construction 
  4.2   manager or contractor. 
  4.3      Sec. 5.  Laws 1986, chapter 396, section 6, is amended to 
  4.4   read: 
  4.5      Sec. 6.  [POWERS GRANTED NOT LIMITED.] 
  4.6      Except as specifically provided in this act, the exercise 
  4.7   of powers granted in this act shall not be limited by Minnesota 
  4.8   Statutes, chapter 475, or any conflicting city charter provision.
  4.9      Except as specifically provided in sections 1 to 5, the 
  4.10  exercise of powers granted in sections 1 to 5 are not limited by 
  4.11  conflicting state law, rule, regulation, or policy respecting 
  4.12  the receipt of state general fund or bond fund proceeds and the 
  4.13  proceeds may be spent in accordance with the authority and 
  4.14  powers granted in sections 1 to 5 and otherwise by law to the 
  4.15  city. 
  4.16     Sec. 6.  [REPEALER.] 
  4.17     Laws 1986, chapter 396, section 2, subdivision 2, is 
  4.18  repealed. 
  4.19     Sec. 7.  [EFFECTIVE DATE.] 
  4.20     Sections 1 to 6 are effective the day following their final 
  4.21  enactment.