2006 Minnesota Statutes

473.581 DEBT OBLIGATIONS.
    Subdivision 1. Bonds. The council may by resolution authorize the sale and issuance of its
bonds for any or all of the following purposes:
(a) To provide funds for the acquisition or betterment of the Metrodome by the commission
pursuant to sections 473.551 to 473.595;
(b) To refund bonds issued hereunder ; and
(c) To fund judgments entered by any court against the commission or against the council in
matters relating to the commission's functions related to the Metrodome and the Met Center.
    Subd. 2. Procedure. The bonds shall be sold, issued, and secured in the manner provided in
chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections
473.551 to 473.595, and the council shall have 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 council. They shall be payable solely from tax and
other revenues referred to in sections 473.551 to 473.595, excepting only the admissions tax and
surcharge related to the basketball and hockey arena provided in section 473.595, subdivision 1a,
the taxes for the basketball and hockey arena provided in section 473.592, and other revenues
attributable to the basketball and hockey arena. The bonds shall not be a general obligation or
debt of the council or of the commission, and shall not be included in the net debt of any city,
county, or other subdivision of the state for the purpose of any net debt limitation, provided
that nothing herein shall affect the obligation of the city of Minneapolis to levy a tax pursuant
to agreements made under the provisions of section 473.592. No election shall be required. The
principal amount shall not be limited except as provided in subdivision 3.
    Subd. 3. Limitations. The principal amount of the bonds issued pursuant to subdivision 1,
clause (a), shall not exceed the amounts hereinafter authorized. If the commission's proposal and
the construction contracts referred to in clause (g) of this subdivision provide for the construction
of a covered multipurpose sports facility, the total cost of constructing the facility under the
construction contracts, not including costs paid from funds provided by others, and the principal
amount of bonds issued pursuant to subdivision 1, clause (a), shall be limited to $55,000,000.
If the commission's proposal and the construction contracts do not provide for the construction
of a cover on a proposed multipurpose sports facility and the commission does not otherwise
contract for the construction or acquisition of a cover for the sports facility, the principal amount
shall be limited to $42,000,000. If the commission's proposal and the construction contracts
provide for the construction of a new sports facility for football and soccer and for remodeling the
existing metropolitan stadium for baseball, the principal amount shall be limited to $37,500,000.
If the commission's proposal and the construction contracts provide for the reconstruction and
remodeling of the existing Metropolitan Stadium as an uncovered multipurpose sports facility,
the principal amount shall be limited to $25,000,000. The bonds issued pursuant to subdivision
1, clause (a), shall bear an average annual rate of interest, including discount, not in excess of
7-1/2 percent. The proceeds of the bonds issued pursuant to subdivision 1, clause (a), shall be
used only for the acquisition and betterment of sports facilities suitable for baseball, football
and soccer, with a seating capacity for football and soccer of approximately 65,000 persons.
The council shall issue its bonds and construction of sports facilities may commence when the
council has made the following determinations:
(a) The commission has executed agreements with major league professional baseball and
football organizations to use the Metrodome for all scheduled regular season home games and
play-off home games and, in the case of the football organization, for at least one-half of its
exhibition games played each season. The agreements shall be for a period of not more than 30
years nor less than the term of the longest term bonds that in the council's judgment it may find it
necessary to issue to finance the acquisition and betterment of the Metrodome. The agreements
may contain provisions negotiated between the organizations and the commission which provide
for termination upon conditions related and limited to the bankruptcy, insolvency, or financial
capability of the organization. The agreements shall provide that, in the event of breach of the
agreements, the defaulting organization shall pay damages annually to the commission. The
annual payment shall be in an amount equal to the annual average of all revenue derived by the
commission from attendance at events and activities of the defaulting organization during the
years prior to default, provided that the damages shall not exceed in any year an amount sufficient,
with other revenues of the commission but excluding proceeds of the taxes under section 473.592,
to pay all expenses of operation, maintenance, administration, and debt service for the use of the
Metrodome by the defaulting organization during the same year. The damages shall be payable
during the period from the occurrence of the default to the date on which another major league
professional baseball or football organization, replacing the defaulting organization, enters into
a use agreement with the commission for not less than the then remaining term of the original
agreement. The agreements with the teams shall provide that no closed circuit or pay television
broadcasting of events in the Metrodome may be allowed without the approval of the commission.
The agreements shall include provisions protecting the commission and the council in the event of
change in ownership of the professional teams.
(b) The commission has executed agreements with professional baseball and football major
leagues which guarantee the continuance of franchises in the metropolitan area for the period of
the agreements referred to in clause (a).
(c) The proceeds of bonds provided for in this subdivision will be sufficient, together with
other capital funds that may be available to the commission for expenditures on the Metrodome,
to construct or remodel and to furnish the Metrodome proposed by the commission, including
the appropriate professional fees and charges but excluding, except as otherwise provided in this
subdivision, the acquisition, clearance, relocation, and legal costs referred to in clauses (d) and (e).
(d) The commission has acquired, without cost to the commission or the council except
as provided in this subdivision, title to all real property including all easements and other
appurtenances needed for the construction and operation of the Metrodome or has received a grant
of funds or has entered into an agreement or agreements sufficient in the judgment of the council
to assure the receipt of funds, at the time and in the amount required, to make any payment upon
which the commission's acquisition of title and possession of the real property is conditioned.
(e) The commission has received a grant of funds or entered into an agreement or agreements
sufficient in the judgment of the council to assure the receipt of funds, at the time and in the
amount required, to pay all costs, except as provided in this subdivision, of clearing the real
property needed for the construction and operation of the Metrodome of all buildings, railroad
tracks and other structures, including without limitation all relocation costs, all utility relocation
costs, and all legal costs.
(f) The commission has executed agreements with appropriate labor organizations and
construction contractors which provide that no labor strike or management lockout will halt,
delay or impede construction.
(g) The commission has executed agreements which will provide for the construction of the
Metrodome for a certified construction price and completion date and which include performance
bonds in an amount at least equal to 100 percent of the certified price to cover any costs which may
be incurred over and above the certified price, including but not limited to costs incurred by the
commission or loss of revenues resulting from incomplete construction on the completion date.
(h) The environmental impact statement for the Metrodome has been accepted by the
Environmental Quality Board, and the Pollution Control Agency and any other department,
agency, or unit of government have taken the actions necessary to permit the construction of
the Metrodome.
(i) At least 50 percent of the private boxes provided for in the commission's proposal for the
Metrodome are sold or leased for at least five years.
(j) The anticipated revenue from the operation of the Metrodome plus any additional
available revenue of the commission and the revenue from the taxes under section 473.592
will be an amount sufficient to pay when due all debt service plus all administration, operating
and maintenance expense.
(k) The commission has studied and considered the needs of the University of Minnesota for
athletic facilities for a prospective 20 year period.
(l) The city of Minneapolis has entered into an agreement as contemplated in section 473.592
as security for the Metrodome debt service.
(m) The commission has entered into an agreement or agreements with a purchaser or
purchasers of tickets of admission for a period of not less than 20 years which will assure that
whenever more than 90 and less than 100 percent of the tickets of admission for seats at any
professional football game, which were available for purchase by the general public 120 hours or
more before the scheduled beginning time of the game either at the Metrodome where the game
is to be played or at the box office closest to the Metrodome, have been purchased 72 hours or
more before the beginning time of the game, then all of such tickets which remain unsold will
be purchased in sufficient time to permit the telecast to areas within the state which otherwise
would not receive the telecast because of the terms of an agreement in which the professional
football league has sold or otherwise transferred all or part of the rights of the league's member
organizations in the sponsored telecasting of games of the organizations. The party or parties
agreeing to the purchase of such unsold tickets shall be obligated for a period of at least 20
years in an amount determined by the council to be sufficient to assure the purchase of all such
unsold tickets.
(n) The council has entered into an agreement with the brokerage firm or brokerage firms to
be used in connection with the issuance and sale of the bonds guaranteeing that fees and charges
payable to the brokerage firm or firms in connection therewith, including any underwriting
discounts, shall not exceed fees and charges customarily payable in connection with the issuance
and sale of bonds secured by the pledge of the full faith and credit of the city of Minneapolis.
The validity of any bonds issued under subdivision 1, clause (a), and the obligations of
the council and commission related thereto, shall not be conditioned upon or impaired by the
council's determinations made pursuant to this subdivision. For purposes of issuing the bonds
the determinations made by the council shall be deemed conclusive, and the council shall be and
remain obligated for the security and payment of the bonds irrespective of determinations which
may be erroneous, inaccurate, or otherwise mistaken.
    Subd. 4. Security. To the extent and in the manner provided in sections 473.592 and
473.595, the taxes described in section 473.592 for the Metrodome, the tax and other revenues
of the commission described in section 473.595, subdivision 1, and any other revenues of the
commission attributable to the Metrodome shall be and remain pledged and appropriated for the
payment of all necessary and reasonable expenses of the operation, administration, maintenance,
and debt service of the Metrodome until all bonds and certificates issued pursuant to this section
are fully paid or discharged in accordance with law. Bonds issued pursuant to this section may be
secured by a bond resolution, or by a trust indenture entered into by the council with a corporate
trustee within or outside the state, which shall define the tax and other Metrodome and Met
Center revenues pledged for the payment and security of the bonds. The pledge shall be a valid
charge on the tax and other revenues referred to in sections 473.551 to 473.595 (excepting only
the admissions tax and surcharge related to the basketball and hockey arena provided in section
473.595, subdivision 1a, taxes described in section 473.592 for the basketball and hockey arena,
and other revenues attributable to the basketball and hockey arena) from the date when bonds
are first issued or secured under the resolution or indenture and shall secure the payment of
principal and interest and redemption premiums when due and the maintenance at all times of
a reserve securing such payments. No mortgage of or security interest in any tangible real or
personal property shall be granted to the bondholders or the trustee, but they shall have a valid
security interest in all tax and other revenues received and accounts receivable by the commission
or council hereunder, as against the claims of all other persons in tort, contract, or otherwise,
irrespective of whether such parties have notice thereof, and without possession or filing as
provided in the Uniform Commercial Code or any other law. In the bond resolution or trust
indenture the council may make such covenants, which shall be binding upon the commission,
as are determined to be usual and reasonably necessary for the protection of the bondholders.
No pledge, mortgage, covenant, or agreement securing bonds may be impaired, revoked, or
amended by law or by action of the council, commission, or city, except in accordance with the
terms of the resolution or indenture under which the bonds are issued, until the obligations of
the council thereunder are fully discharged.
    Subd. 5. Revenue anticipation certificates. At any time or times after approval by the
council and final adoption by the commission of an annual budget of the commission for operation,
administration, and maintenance of the Metrodome, and in anticipation of the proceeds from the
taxes under section 473.592 for the Metrodome and the revenues of the commission provided for
in the budget, but subject to any limitation or prohibition in a bond resolution or indenture, the
council may authorize the issuance, negotiation, and sale, in such form and manner and upon
such terms as it may determine, of revenue anticipation certificates. The principal amount of the
certificates outstanding shall at no time exceed 25 percent of the total amount of the tax and other
revenues anticipated. The certificates shall mature not later than three months after the close of the
budget year. Prior to the approval and final adoption of the first annual budget of the commission,
the council may authorize up to $300,000 in revenue anticipation certificates under this
subdivision. So much of the anticipated tax and other revenues as may be needed for the payment
of the certificates and interest thereon shall be paid into a special debt service fund established for
the certificates in the council's financial records. If for any reason the anticipated tax and other
revenues are insufficient, the certificates and interest shall be paid from the first tax and other
revenues received, subject to any limitation or prohibition in a bond resolution or indenture. The
proceeds of the certificates may be used for any purpose for which the anticipated revenues or
taxes may be used or for any purpose for which bond proceeds under subdivision 1 may be used,
provided that the proceeds of certificates issued after May 26, 1979, shall not be used to pay
capital costs of the Metrodome constructed or remodeled pursuant to sections 473.551 to 473.595.
History: 1977 c 89 s 10; 1979 c 26 s 1; 1979 c 203 s 7-10; 1984 c 607 s 1; 1994 c 648
art 1 s 10