Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 5995

STATE OF MINNESOTA

Journal of the House

THIRD SPECIAL SESSION 1997

__________________

THIRD DAY

Saint Paul, Minnesota, Thursday, November 13, 1997

 

The House of Representatives convened at 9:00 a.m. and was called to order by Phil Carruthers, Speaker of the House.

Prayer was offered by the Reverend Ronald A. Smith, House Chaplain.

The members of the House gave the pledge of allegiance to the flag of the United States of America.

The Speaker administered the oath of office to the new House member, Mary Ellen Otremba, from district 11B. Her certificate of election and a signed and sworn statement of her oath are on file. She was elected in a special election held on Tuesday, November 7, 1997.

The roll was called and the following members were present:

Abrams Erhardt Juhnke Mahon Paulsen Stang
Anderson, B. Evans Kahn Mares Pawlenty Sviggum
Anderson, I. Farrell Kalis Mariani Paymar Swenson, D.
Bakk Finseth Kelso Marko Pelowski Swenson, H.
Bettermann Folliard Kielkucki McCollum Peterson Sykora
Biernat Garcia Kinkel McElroy Pugh Tingelstad
Bishop Goodno Knight McGuire Rest Tomassoni
Boudreau Greenfield Knoblach Milbert Reuter Tompkins
Bradley Greiling Koppendrayer Molnau Rhodes Trimble
Broecker Gunther Koskinen Mulder Rifenberg Tuma
Carlson Haas Kraus Mullery Rostberg Tunheim
Chaudhary Harder Krinkie Munger Rukavina Van Dellen
Clark Hasskamp Kubly Murphy Schumacher Wagenius
Commers Hausman Kuisle Ness Seagren Weaver
Daggett Hilty Larsen Nornes Seifert Wejcman
Davids Holsten Leighton Olson, M. Sekhon Wenzel
Dawkins Huntley Leppik Opatz Skare Westfall
Dehler Jaros Lieder Orfield Skoglund Westrom
Delmont Jefferson Lindner Osskopp Slawik Winter
Dempsey Jennings Long Osthoff Smith Wolf
Dorn Johnson, A. Luther Otremba, M. Solberg Workman
Entenza Johnson, R. Macklin Ozment Stanek Spk. Carruthers

A quorum was present.

Olson, E., and Vickerman were excused.


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The members of the House paused for a moment of silence in honor of former Representative Joseph Prifrel from St. Paul who served from 1938 to 1972 and who passed away earlier this year.

The Chief Clerk proceeded to read the Journal of the preceding day. Opatz moved that further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.

Winter moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

PETITIONS AND COMMUNICATIONS

The following communication was received:

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 1997 Third Special Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S.F.
No.
H.F.
No.
Session Laws
Chapter No.
Time and
Date Approved
1997
Date Filed
1997
22Resolution No. 1November 5
18 1 9:20 a.m. November 5 November 5
8 2 10:07 a.m. November 5 November 5
12 3 10:30 a.m. November 5 November 5

Sincerely,

Joan Anderson Growe

Secretary of State


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INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House File was introduced:

Rest, Jennings, Jefferson, McElroy and Koppendrayer introduced:

H. F. No. 36, A bill for an act relating to baseball; providing for a process to construct, fund, maintain, and govern a major league baseball park; providing for community ownership of the baseball team; providing for powers and duties of the Minnesota sports facilities commission; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; appropriating money; amending Minnesota Statutes 1996, sections 297A.25, by adding a subdivision; 349A.10, by adding a subdivision; 473.551, subdivisions 3, 8, and by adding subdivisions; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, and by adding a subdivision; and 473.556, subdivisions 3, 4, 5, and by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 473; proposing coding for new law as Minnesota Statutes, chapter 473I; repealing Minnesota Statutes 1996, sections 473.553, subdivision 14; and 473.561.

The bill was read for the first time.

SUSPENSION OF RULES

Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Rest moved that the rule therein be suspended and an urgency be declared so that H. F. No. 36 be given its second and third readings and be placed upon its final passage. The motion prevailed.

Rest moved that the Rules of the House be so far suspended that H. F. No. 36 be given its second and third readings and be placed upon its final passage. The motion prevailed.

H. F. No. 36 was read for the second time.

Jennings, Rest, Jefferson, McElroy, Sykora, Mares, Tomassoni, Koppendrayer and Hausman moved to amend H. F. No. 36 as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

BASEBALL PARK CONSTRUCTION

Section 1. Minnesota Statutes 1996, section 473.551, subdivision 8, is amended to read:

Subd. 8. [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports facility" or "sports facilities" means real or personal property comprising a stadium, stadiums, baseball parks, or arenas suitable for university or major league professional baseball, for university or major league professional football and soccer, or for both, or for university or major league hockey or basketball, or for both, together with adjacent parking facilities, including on the effective date of Laws 1994, chapter 648, the metrodome, the baseball park, the met center, and, upon acquisition by the commission, the basketball and hockey arena.

Sec. 2. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 18. [BASEBALL PARK.] "Baseball park" means a park owned by the commission and designed for playing major league professional baseball, as specified in section 473.5991.

Sec. 3. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 19. [BASEBALL PARK REVENUE.] "Baseball park revenue" means all revenue received by or payable to the commission arising from its ownership and operation of the baseball park including, but not limited to, revenues from admission taxes or other special taxes, appropriations, bond proceeds, fees, lottery proceeds, loans, and gifts.


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Sec. 4. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 20. [BASEBALL TEAM.] "Baseball team" means the legal entity which owns and operates the assets comprising a major league professional baseball team.

Sec. 5. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 21. [CITY.] "City" when referring to anything involving the baseball park means the city in which the baseball park is located.

Sec. 6. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 22. [COUNTY.] "County" when referring to anything involving the baseball park means the county in which the baseball park is located.

Sec. 7. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 23. [OWNER.] "Owner" means all individuals or persons who directly or indirectly own an interest in the baseball team on the date of enactment of this article and prior to any transfer to a nonprofit corporation pursuant to section 473.5992, subdivision 3.

Sec. 8. Minnesota Statutes 1996, section 473.552, is amended to read:

473.552 [LEGISLATIVE POLICY; PURPOSE.]

The legislature finds that:

(a) (1) the population in the metropolitan area has a need for sports facilities and that this need cannot be met adequately by the activities of individual municipalities, by agreements among municipalities, or by the private efforts of the people in the metropolitan area,;

(b) (2) the commission's ownership and operation of the metrodome and met center has met in part the foregoing need and has promoted the economic and social interests of the metropolitan area, of the state, and of the public, and;

(c) (3) the commission's acquisition of the basketball and hockey arena on the terms and conditions provided in sections 473.598 and 473.599 shall similarly and more fully meet the foregoing needs and promote these interests; and

(4) the commission's construction and operation of the baseball park by reasonable methods that the legislature and the commission may devise to secure the long-term commitment of the baseball team, including, but not limited to, nonprofit and community ownership of the baseball team as provided in section 473.5992, subdivision 3, and the assignment of the operation of the baseball park to a private entity, all of which may further secure and promote these public purposes, will likewise meet the foregoing needs and promote these interests.

It is therefore necessary for the public health, safety and general welfare to establish a procedure for the acquisition and betterment of sports facilities and to create a metropolitan sports facilities commission.

Sec. 9. Minnesota Statutes 1996, section 473.553, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] The metropolitan sports facilities commission is established and as a public corporation and political subdivision of the state that may exercise its powers in the metropolitan area, as provided by law. The commission shall be organized, structured, and administered as provided in this section.

Sec. 10. Minnesota Statutes 1996, section 473.556, subdivision 3, is amended to read:

Subd. 3. [ACQUISITION OF PROPERTY.] The commission may acquire by lease, purchase, gift, or devise all necessary right, title, and interest in and to real or personal property deemed necessary to the purposes contemplated by sections 473.551 to 473.599 within the limits of the metropolitan area. The city or county may exercise the right of eminent


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domain under chapter 117, subject to any limits on spending in a charter for the city or county, to acquire a site for the baseball park and, from time to time, such other property, real, personal, and intangible, as are essential and integral to the successful operation of the baseball park.

Sec. 11. Minnesota Statutes 1996, section 473.556, subdivision 4, is amended to read:

Subd. 4. [EXEMPTION OF PROPERTY.] (a) Except as provided in paragraph (b), any real or personal property acquired, owned, leased, controlled, used, or occupied by the commission for any of the purposes of sections 473.551 to 473.599 is declared to be acquired, owned, leased, controlled, used and occupied for public, governmental, and municipal purposes, and shall be exempt from ad valorem taxation by the state or any political subdivision of the state, provided that such properties shall be subject to special assessments levied by a political subdivision for a local improvement in amounts proportionate to and not exceeding the special benefit received by the properties from the improvement. No possible use of any such properties in any manner different from their use under sections 473.551 to 473.599 at the time shall be considered in determining the special benefit received by the properties. All assessments shall be subject to final confirmation by the council, whose determination of the benefits shall be conclusive upon the political subdivision levying the assessment. Notwithstanding the provisions of section 272.01, subdivision 2, or 273.19, real or personal property leased by the commission to another person for uses related to the purposes of sections 473.551 to 473.599, including the operation of the metrodome, baseball park, met center, and, if acquired by the commission, the basketball and hockey arena shall be exempt from taxation regardless of the length of the lease. The provisions of this subdivision, insofar as they require exemption or special treatment, shall not apply to any real property comprising the met center which is leased by the commission for residential, business, or commercial development or other purposes different from those contemplated in sections 473.551 to 473.599.

(b) The exemption from ad valorem taxation does not apply to restaurants, lodging, or other facilities primarily engaged in making retail sales to the public without regard to whether there is an event at the sports facility.

Sec. 12. Minnesota Statutes 1996, section 473.556, subdivision 5, is amended to read:

Subd. 5. [FACILITY OPERATION.] The commission may equip, improve, operate, manage, maintain, and control the metrodome, baseball park, met center, basketball and hockey arena and sports facilities constructed, remodeled, or acquired under the provisions of sections 473.551 to 473.599.

Sec. 13. Minnesota Statutes 1996, section 473.556, is amended by adding a subdivision to read:

Subd. 18. [PRIVATE CONTRIBUTIONS.] Notwithstanding the requirements of subdivision 9, the commission may accept grants, gifts, or loans to further its public purposes with respect to the baseball park. The contributions may be used by the commission for any purpose related to the baseball park under sections 473.5991 to 473.5995, including, but not limited to, payment of revenue bonds or revenue anticipation certificates issued under section 473.5993, or reducing or eliminating any ownership, operations, or other obligations or liabilities of the commission under sections 473.5991 to 473.5995.

Sec. 14. Minnesota Statutes 1996, section 473.556, is amended by adding a subdivision to read:

Subd. 19. [BASEBALL PARK REVENUE.] The commission may spend baseball park revenue for the purposes of section 473.5993 to pay any reasonable expenses necessary to acquire, construct, administer, operate, improve, or maintain the baseball park or to pay debt service on bonds or other obligations sold for purposes of the baseball park in accordance with sections 473.551 to 473.5995. Baseball park revenue must be segregated from other revenue of the commission.

Sec. 15. Minnesota Statutes 1996, section 473.556, is amended by adding a subdivision to read:

Subd. 20. [LOANS.] Notwithstanding the requirements of subdivision 9, the commission may borrow funds or enter into loans or other security or debt instruments or make other arrangements sufficient for construction of the baseball park under sections 473.5991 to 473.5995.


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Sec. 16. [473.5991] [BASEBALL PARK.]

Subdivision 1. [ESSENTIAL CHARACTERISTICS.] The baseball park must be designed for playing major league baseball and no other major league spectator sport that uses a surface or seating configuration different from major league baseball. The baseball park shall be designed to have a retractable roof, but no roof shall be constructed unless funding becomes available. The baseball park may include parking or other transit facilities for patrons, performers, and employees and may include other amenities to enhance or make the use of the baseball park enjoyable, convenient, and predictably accessible to all.

Subd. 2. [DESIGN.] The commission shall determine the program elements of the baseball park, in consultation with the baseball team, including, but not limited to, capacity, suites, club seats, clubs, and amenities. The commission shall also determine the baseball park design, and the selection of the project construction team, including the architect and general contractor. The baseball park design must be comparable in quality to other recently built major league professional baseball parks.

Subd. 3. [SITE.] The commission shall design a process to select a site within the metropolitan area and request site proposals from any municipality. The process to select a site must include a procedure to set minimum specifications for the site, including the necessary or desirable appropriate economic development possibilities on adjacent properties. The process must consider the capture and use of incremental revenue paid to or enjoyed by public entities, as a result of or in anticipation of the baseball park, as revenue sources for funding the baseball park.

Subd. 4. [RELATED INFRASTRUCTURE.] The commission shall negotiate with the appropriate government entities, including the city, the county, and the council for necessary or appropriate infrastructure improvements to support the existence and operation of the baseball park, the movement of patrons to and from the baseball park, and their comfort, safety, and convenience while in and around the baseball park.

Subd. 5. [CONSTRUCTION METHODS.] The commission may contract for construction materials, supplies, and equipment in accordance with section 471.345, may construct the baseball park by a design-build method, and may employ persons, firms, or corporations to perform one or more or all of the functions of architect, engineer, construction manager, or contractor for both design and construction, with respect to all or part of a project to build or remodel sports facilities. Contractors shall be selected through the process of public bidding under section 471.345, except that the commission may narrow the listing of eligible bidders to those the commission determines to possess sufficient expertise to perform the intended functions, and the commission may negotiate with the three lowest responsible bidders to achieve the best and final offer. The commission may require a construction manager to certify a construction price and completion date to the commission. The commission may require the posting of a bond in an amount determined by the commission to cover any costs that 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 and any other obligations the commission may require the construction manager to bear. The commission shall secure surety bonds as required in section 574.26 securing payment of just claims in connection with all public work undertaken by it. Persons entitled to the protection of the bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a lien on any property of the commission under sections 514.01 to 514.16.

Subd. 6. [CONSTRUCTION MATERIALS; SALES TAX EXEMPTION.] Purchases of materials and supplies used or consumed in constructing or incorporated into the construction of the baseball park are exempt from the taxes imposed under chapter 297A and from any sales and use tax imposed by a local unit of government notwithstanding any ordinance or charter provision. This exemption applies regardless of whether the materials and supplies are purchased by the commission, the owner or subsequent owners, or by a contractor or subcontractor.

Sec. 17. [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.]

Subdivision 1. [WHEN.] The metropolitan council must determine that others have done what they are required to do under this section in all material respects before it authorizes the sale of bonds under section 473.5993, subdivision 1, clauses (1) to (3).


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Subd. 2. [30-YEAR USE AGREEMENT.] (a) The commission must have executed agreements with the owner and the baseball team to use the baseball park for all scheduled regular season and all postseason division, league, and world series championship play-off home games for no less than 30 years, without an escape clause for the owner.

(b) The agreements shall afford to the commission, or to another public entity as the commission deems appropriate, the rights and remedies that are deemed necessary and appropriate to provide reasonable assurances that the baseball team and the owner will comply with the agreements throughout the 30-year term. The remedies must include liquidated damages in an amount equal to the costs of site preparation, construction, and interest, payable by the baseball team and the owner jointly and severally to the commission in the event the team relocates to another ball park within the 30-year period, less 1/30 of the amount, and all remaining interest payments, for each year the team has met its obligation to play in the baseball park. The remedies shall include specific performance and injunctive relief and any other equitable remedies, and any additional remedies or ownership, voting, or other security arrangements the commission reasonably determines to be effective in ensuring the baseball team will play the required games in the baseball park throughout the 30-year term. In the enforcement of the agreements, the commission may elect from among the rights and remedies provided for in this paragraph, and that election does not extinguish the commission's other rights and remedies except as may otherwise be provided by law. It is the intent of the legislature that a material breach of an agreement between the commission and other public bodies and professional athletic teams that commit to the long-term playing of major league games at public facilities is deemed to cause 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.

(c) The agreements must confer exclusive jurisdiction for judicial enforcement of the agreements on Minnesota state courts and provide that disputes arising under the agreement be governed by Minnesota law.

Subd. 3. [NONPROFIT, COMMUNITY OWNERSHIP.] (a) The owner must have transferred ownership of the baseball team to a nonprofit corporation through transfer by gift of all ownership interests, voting and nonvoting. The transfer agreement must provide that the owner guarantee the debt of the baseball team, determined as of the date of the transfer of ownership of the team to the nonprofit corporation. The transfer agreement must provide that if the proceeds of the sale of the baseball team to a subsequent owner are not sufficient to pay the debt amount, the owner must pay for it. The transfer agreement must provide that any amount received by the nonprofit corporation on the subsequent transfer of the baseball team will be distributed in the following order of priority:

(1) an amount equal to the debt of the baseball team, as previously determined, must be paid to the holder of the debt;

(2) an amount equal to the costs incurred by the nonprofit corporation related to the baseball team must be retained by the nonprofit corporation;

(3) an amount equal to one-half the costs incurred by the city under subdivision 9, and one-half the costs incurred by the city to construct a parking facility for the baseball park if provided by the city, must be paid to the city; and

(4) the remainder must be paid first to the commission to defease the bonds issued under section 473.5993, subdivision 8, and then to the council to pay or defease the bonds issued under section 473.5993, subdivision 1.

The transfer agreement must provide that between the time of the transfer by gift to the nonprofit corporation and the subsequent transfer of ownership of the baseball team by the nonprofit corporation, the owner is responsible for the operation and management of the baseball team and for all operating costs, including any losses.

(b) The commission must have executed an agreement with the nonprofit corporation that provides for the following:

(1) Within five years after the transfer of the baseball team to the nonprofit corporation, the nonprofit corporation must offer for sale to individuals full voting shares in the baseball team according to a plan approved by the commission. The plan must provide for purchase of shares by small investors, with the provision that no individual or entity, other than the managing owner, may own more than one percent of the shares with full voting rights. The managing owner may own up to 25 percent of the shares with full voting rights.

(2) The transfer agreement under clause (1) must provide that any subsequent owners must assume the obligations of the owner to use the baseball park for the 30-year period, as provided in subdivision 2.


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(3) The articles of incorporation, or other organizing charter or agreement, bylaws, and other governing documents of the baseball team must provide that the baseball team may not move outside of the state without approval of 80 percent of the shares held by persons other than the managing owner. Notwithstanding any law to the contrary, the 80 percent approval requirement may not be amended by the shareholders or by any other means.

Subd. 4. [COMMISSION APPROVAL OF NONPROFIT CORPORATION.] The commission must have approved the selection of the nonprofit corporation with which the owner has an agreement under subdivision 3. The commission must have determined, at a minimum, that there is no conflict of interest between the owner and the board of the nonprofit corporation, and that the nonprofit corporation's mission is broad and provides assistance statewide.

Subd. 5. [OWNER'S ABILITY TO COMPLY.] The baseball team and the owner must have provided information sufficient to satisfy the commission of the baseball team's and the owner's ability to comply with the terms of the 30-year agreements.

Subd. 6. [PRIVATE SECTOR SUPPORT.] The businesses and individuals must have entered into enforceable contracts to purchase or lease:

(1) at least 80 percent of the private suites provided for in the proposal for the baseball park for at least ten years;

(2) at least 80 percent of the club seats provided for in the proposal for the baseball park for at least ten years;

(3) season tickets, above the 1997 season ticket base, as follows: 2,000 additional season tickets to be purchased in each of the 1998, 1999, 2000, and 2001 baseball seasons, and an additional 5,000 season tickets in 2002, for a total amount of 20,000 season tickets to be purchased for the opening season and for each of the succeeding nine years; and

(4) personal seat licenses sufficient to raise $500,000 per year for at least ten years.

Subd. 7. [PRIVATE SECTOR CAPITAL PLAN.] The commission must have developed a private sector capital plan that includes the sale or lease of some or all promotional rights in the baseball park.

Subd. 8. [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The commission and the owner must have entered into an agreement that provides that the owner will use its best efforts to obtain construction money for the baseball park from major league baseball.

Subd. 9. [LOCAL GOVERNMENT CONTRIBUTION.] The commission must have executed an agreement with the city, county, or both, under which the city, county, or both will: (1) provide to the commission title to all real property, including all easements and other appurtenances needed for the construction and operation of the baseball park; and (2) prepare the site for construction and operation of the baseball park, including clearing the property of all improvements on it which would interfere with the construction and operation of the baseball park.

Subd. 10. [GUARANTEED MAXIMUM PRICE.] The commission must have executed agreements that provide for the construction of the baseball park for a guaranteed maximum price and a specified substantial completion date of opening day or April 1, 2002, whichever is earlier, and that requires 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 commission and loss of revenues resulting from incomplete construction on the substantial completion date.

Subd. 11. [NO STRIKES OR LOCKOUTS.] The commission must have executed agreements with appropriate labor organizations and construction contractors that provide that no labor strikes or management lockouts will delay construction.

Subd. 12. [UNIVERSITY OF MINNESOTA.] The commission must have consulted with and considered the needs of the University of Minnesota for baseball facilities for the next 20 years.


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Subd. 13. [REVENUES TO BE SUFFICIENT.] The commission must have determined that the anticipated baseball park revenue will be sufficient to pay when due all debt service on the revenue bonds issued under section 473.5993, loans, and all administrative expenses of the commission and the council relating to the baseball park. The commission must have determined that the anticipated revenue to the baseball team will be sufficient to pay all operating and maintenance expenses of the baseball team and baseball park.

Subd. 14. [LEAGUE, MAJOR LEAGUE BASEBALL GUARANTEE.] The commission must have entered into an agreement with the major league of which the baseball team is a member and with major league baseball that provides as follows:

(1) the consideration for the agreement is, among other things, the commission making available a publicly financed facility in which major league professional baseball games are anticipated to receive increased broadcasting, advertising, and other revenues for major league professional baseball;

(2) the major league of which the baseball team is a member and major league baseball agree to guarantee the continuance of a franchise in the metropolitan area for a 30-year period beginning with the first home game played in the baseball park;

(3) the commission is entitled to specific performance of the agreement, and both the major league of which the baseball team is a member and major league baseball agree not to contest the availability of specific performance; and

(4) jurisdiction and enforcement of the agreement is exclusively in Minnesota state court.

Subd. 15. [AFFORDABLE TICKETS.] The commission must have obtained a guarantee from the owner that at least ten percent of the tickets in the baseball park available for major league professional baseball games will be available at prices that do not exceed 25 percent of the highest priced seats in the baseball park or a maximum of $5 per ticket, whichever is lower. Premium seating, such as seats requiring personal seat licenses, luxury boxes, and similar seating, must be excluded in determining the highest priced seats in the baseball park. The maximum price of affordable tickets may be adjusted periodically for inflation. Not less than 20 percent of the tickets subject to the guarantee under this subdivision must be made available for sale only on the day of the game. This subdivision does not apply to a postseason division, league, or world series championship game.

Subd. 16. [AGREEMENT WITH COUNCIL.] The commission must have executed an agreement with the council providing for the timely transfer of funds for payment of debt service and any other obligations arising out of the issuance of bonds under section 473.5593.

Subd. 17. [MAJOR LEAGUE BASEBALL APPROVAL.] Major league baseball must have approved the proposed ownership structure and transfers required by this section.

Subd. 18. [ASSIGNMENT OF AGREEMENTS WITH CURRENT OWNER.] The agreements entered into by the owner under subdivisions 2, 5, 15, and 19, must have provided that the owner's obligations and liabilities be assigned to and assumed by the nonprofit corporation and any subsequent owner.

Subd. 19. [YOUTH BASEBALL.] The commission must have negotiated a plan with the owner that expands opportunities for children and youth to participate in baseball at the baseball park and in their local communities.

Subd. 20. [OTHER CONTRIBUTIONS.] The commission has received at least $1,000,000 in contributions for which the contributors will be recognized in a visible place in the baseball stadium. The recognition may be in the form of the contributor's name on a brick in the baseball stadium structure. The contributions must be deposited in the state treasury and credited to the baseball park account.

Sec. 18. [473.5993] [DEBT OBLIGATIONS FOR BASEBALL PARK.]

Subdivision 1. [PURPOSES.] The council may by resolution authorize the sale and issuance of its revenue bonds for the following purposes after making the determinations in section 473.5992, subdivision 1:

(1) to pay the costs of the acquisition and betterment of a baseball park;


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(2) to reimburse the commission and the council for their costs in complying with and making the determinations required by section 473.5992, whenever incurred;

(3) to pay issuance costs, interest costs during construction, and costs of bond insurance or other credit enhancement for the bonds and to establish necessary reserves for operating and debt service costs;

(4) to refund bonds issued under this section; and

(5) to fund judgments entered by any court against the council or commission in matters relating to the council's or commission's functions related to the baseball park.

Subd. 2. [AMOUNT.] The principal amount of the bonds issued for the purpose specified in subdivision 1, clause (1), exclusive of any original issue discount, must not exceed $185,000,000.

Subd. 3. [TAXABILITY.] The bonds may be issued as tax-exempt revenue bonds or as taxable revenue bonds in the proportions that the council may determine.

Subd. 4. [PROCEDURE.] The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues and the council 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 council. An election is not required.

Subd. 5. [NOT A GENERAL OR MORAL OBLIGATION.] The bonds are special obligations of the council secured by and payable solely from baseball park revenues. The bonds are not a general or moral obligation of the council, the commission, any other political subdivision of the state, or the state, and must 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.

Subd. 6. [BROKERAGE FIRM AGREEMENT.] Before issuing debt under this section, the council must enter into an agreement with the brokerage firm to be used in connection with the sale and issuance of the bonds or revenue anticipation certificates under this section, guaranteeing that fees and charges payable to the brokerage firm under the agreement, including any underwriting discounts, do not exceed fees and charges customarily payable in connection with the sale and issuance of bonds or revenue anticipation certificates.

Subd. 7. [SECURITY.] (a) Bonds issued under 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. In the resolution or the trust indenture, the council must establish covenants for the payment and security of the bonds and pledge the baseball park revenues to be received by it from the state or the commission, other than amounts paid to it for administrative costs, for this purpose. In particular, but without limitation, the council may covenant and agree to enforce, or authorize the bondholders or their trustee to enforce, all agreements entered into by the council with this state or the commission relating to the payment of baseball park revenues and other money, if any, to the council for the payment and security of the bonds.

(b) The pledge of baseball park revenues for the payment and security of the council's revenue bonds is a valid charge on the baseball park revenues from the date when bonds are first issued or secured under the resolution or indenture and secure the payment of principal and interest and redemption premiums when due and the maintenance at all times of a reserve securing the payments. No mortgage of or security interest in any tangible real or personal property is granted to the bondholders or the trustee, but they have a valid, binding, and enforceable first lien and security interest in all baseball park revenues pledged to the payment of the bonds by the council, as against the claims of all other persons in tort, contract, or otherwise, irrespective of whether the parties have notice of the claims, and without possession or filing as provided in the Uniform Commercial Code or any other law.

Subd. 8. [COMMISSION FINANCING.] The commission may by resolution authorize the sale and issuance of its revenue bonds for the purposes specified in subdivision 1. The principal amount of the bonds issued for the purpose specified in subdivision 1, clause (1), exclusive of any original issue discount, must not exceed $75,000,000. The bonds are special obligations of the commission secured by and payable solely from baseball park revenues not required to be paid to the council under the agreement described in subdivision 11; and, to the extent determined by the commission, other


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revenues and money of the commission not pledged for another purpose. The bonds are not general or moral obligations of the commission, any other political subdivision of the state, or the state, and must not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any debt limitation. The bonds may be issued as tax-exempt revenue bonds or as taxable revenue bonds in the proportions that the commission may determine. The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues and the commission 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 commission. An election is not required.

Subd. 9. [REVENUE ANTICIPATION CERTIFICATES.] In any year, upon final adoption by the commission of an annual budget of the commission including the baseball park revenues, and in anticipation of the receipt of baseball park revenues and other receipts of the commission, the commission may authorize the issuance and sale, in the form and manner and upon the terms it may determine, of revenue anticipation certificates. The terms and provisions of the certificates and the security for their payment shall be consistent with and not violate the terms of any agreement entered into by the commission pursuant to subdivision 12 and any bond resolution or indenture adopted or entered into by the council under subdivision 7. The certificates must mature not later than three months after the close of the budget year. So much of the anticipated baseball park revenues and other money 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 commission's financial records. The proceeds of the certificates may be used for any purpose for which the anticipated revenues may be used or for any purpose for which bond proceeds under subdivision 8 may be used.

Subd. 10. [APPROPRIATION; AGREEMENTS AMONG PARTIES.] In addition to the appropriation of money in the baseball park account contained in section 473I.02, there is appropriated to the commissioner of finance for payment to the commission for the payment and security of bonds issued by the council under subdivision 1, the amount of money on hand in the special revenue fund established in section 16A.67, subdivision 3, other than health care cost reimbursements described in section 246.18, subdivision 7, that is necessary to pay the principal of and interest on the council's bonds issued under subdivision 1 when due and to maintain any debt service reserve established for payment of the bonds at its required balance. This pledge is subordinate to the pledge and appropriation of the revenues in the special revenue fund from the payment and security of the state's outstanding revenue bonds series 1996A and any other similar bonds issued under section 16A.67, and the commissioner of finance shall transfer money from the special revenue fund to the baseball park account and the commission only after transfers sufficient to pay debt service on the outstanding bonds under section 16A.67 payable from the revenues have been made. This appropriation shall be used only in the event other baseball park revenues available for the purposes specified above are inadequate for those purposes. Money paid to the commission under this subdivision shall be repaid to the state with interest at a rate determined by the commissioner of finance to be comparable to the rate earned by the state on invested treasurer's cash and deposited in the special revenue fund from baseball park revenues received by the commission in excess of the requirements of the commission under sections 473.5991 to 473.5995.

Subd. 11. [AGREEMENT BY COMMISSIONER OF FINANCE.] (a) The commissioner of finance, on behalf of the state, shall enter into an agreement with the council and the commission obligating the state to pay to the commission the money appropriated by subdivision 10 and section 473I.02, at the times and in the amounts determined by the commission to be necessary or desirable to enable the council and the commission to carry out their powers and duties under sections 473.5991 to 473.5995. In the agreement, the commissioner shall also covenant and agree on behalf of the state that, so long as any bonds or other obligations issued by the council or the commission under this section are outstanding and not discharged in accordance with the resolutions authorizing their issuance:

(1) the state will maintain the special revenue fund established by section 16A.67, subdivision 3, and the baseball park account established in section 473I.02;

(2) the state will not reduce or repeal the appropriations made in subdivision 10 and section 473I.02;

(3) the state will not direct or appropriate to another fund or account money now required to be deposited in the special revenue fund established in section 16A.67, subdivision 3, or the baseball park account, provided that the state retains authority to provide for the deposit of health care reimbursements described in section 246.18 directly to the general fund or another fund of the state, and to alter, reduce, eliminate, dedicate to another fund, or add to the state license and service fees or departmental earnings described in sections 16A.1285 and 16A.6701; and


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(4) the state will provide information necessary to enable the council and the commission to comply with federal securities laws, rules, and regulations applicable to bonds issued under subdivision 8. The agreement may also contain such other covenants and agreements as the commissioner shall deem necessary which are not inconsistent with any other existing law, but such covenants may not include a covenant to continue to operate the state lottery.

(b) The agreement shall be enforceable against the state in the district court for Ramsey county. The state waives immunity from suit in connection with the agreement and confers jurisdiction on the district court to determine the matter in the manner provided for civil actions in the district court. Section 3.751, subdivisions 3 and 4, apply.

Subd. 12. [AGREEMENT BETWEEN COUNCIL AND COMMISSION.] Prior to the issuance of bonds pursuant to subdivision 1, the council and the commission must enter into an agreement relating to the following matters:

(1) identifying all types of baseball park revenues, establishing priorities for their use, identifying baseball park revenues to be paid to the council and pledged by it for the payment and security of its bonds, and establishing the dates on and amounts in which baseball park revenues will be paid to the council to pay debt service on the council's bonds and to maintain a debt service reserve and to pay the council's administrative expenses incurred pursuant to sections 473.5991 to 473.5995 which are not paid from council revenue bond proceeds;

(2) identifying baseball park revenues to be retained by the commission and used to secure and pay debt service on bonds issued by the commission pursuant to subdivision 8, which may include baseball park revenue derived from signage, concessions, naming rights, and advertising;

(3) establishing the terms and conditions on which the commission may issue revenue anticipation certificates pursuant to subdivision 9 and use baseball park revenues of the types pledged for payment and security of the council's bonds to pay principal and interest on the certificates;

(4) establishing the obligations of the parties with respect to compliance with state and federal securities laws applicable to their bonds;

(5) establishing the obligations of the commission with respect to the administration and enforcement of any agreements entered into by the commission with the state, any local governmental unit, or any other person or entity relating to the baseball park or baseball park revenues; and

(6) any other matters relating to their powers and duties under this act that the parties deem appropriate.

Subd. 13. [VALIDITY OF DEBT ISSUED.] The validity of any bonds issued under this section and the obligations of the council related to them must not be conditioned upon or impaired by the council's determinations made under section 473.5992. For the purposes of issuing bonds, the determinations made by the council are conclusive, and the council is obligated for the security and payment of the bonds, but only from the sources pledged thereto, irrespective of determinations that may be erroneous, inaccurate, or otherwise mistaken.

Sec. 19. [473.5994] [OPERATIONS.]

Subdivision 1. [DEFINITION.] For the purposes of this section, "owner" includes the nonprofit corporation or any subsequent owner.

Subd. 2. [BASEBALL TEAM TO OPERATE BASEBALL PARK.] (a) The commission must enter into agreements with the owner and the baseball team that provide for operation and maintenance of the baseball park at the expense of the owner and the baseball team.

(b) The agreements may provide that:

(1) the baseball team will manage, maintain, operate, and repair the baseball park and may contract with one or more entities to operate part or all of the baseball park all subject to the approval of the commission; and


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(2) the baseball team shall contract with one or more concessionaires to provide food and beverages for the baseball park subject to the approval of the commission. All contracts for food and beverage services must be advertised and competitively bid and negotiated in order to maximize revenues from those contracts.

(c) The agreements must provide criteria for maintenance and operation of the baseball park and remedies as referred to in section 473.5992, subdivision 2, paragraphs (b) and (c), that may be exercised by the commission to ensure that the criteria are met. The agreements must also require that the owner with respect to the baseball team, the baseball team, and its affiliates and subsidiaries that are involved in the maintenance and operation provide annually audited financial statements to the commission.

(d) The agreements must provide for the allocation of game day and nongame day revenues and expenses and provide for the scheduling of nonbaseball events at the baseball park.

Subd. 3. [COMMISSION PARTICIPATION IN BASEBALL TEAM CONTRACTS.] The commission must have an agreement that provides that the commission may participate in the negotiations of any contracts or agreements pertinent to the operation and maintenance of the baseball park between the baseball team and any other third party.

Subd. 4. [BASEBALL TEAM OPERATING EXPENSES; LOSS.] The owner shall assume all risk for and timely pay all operating expenses of the baseball team and the baseball park as provided in sections 473.5991 to 473.5995 and in agreements authorized by sections 473.5991 to 473.5995. The baseball team shall be organized so that under Minnesota law, the commission is not liable for any operating loss, liability, or obligation of the baseball team, or baseball park. The commission shall have no duty to reimburse the owner or any creditor of the owner, the baseball team, or the baseball park for any operating loss, liability, or obligation of the baseball team or baseball park, and shall be indemnified by the owner against losses or claims.

Sec. 20. [473.5995] [BASEBALL PARK JOBS PROGRAM.]

The commission must implement a jobs program that meets or exceeds the reasonable goals established by the commission for the participation of minority, women, and disadvantaged employees and small business in the construction of the baseball park. The owner must establish a jobs program that meets or exceeds the reasonable goals established by the commission for the participation of minority, women, and disadvantaged employees and small business in the operation and maintenance of the baseball park.

Sec. 21. [INTERSTATE COMPETITION.]

The commission may cooperate and contract with other political entities in the United States to petition or form an entity to petition the United States Congress to enact legislation to prevent injurious or uneconomic practices of governmental entities in seeking sports, exposition, and entertainment franchises and facilities. The attorney general may participate in appropriate litigation to prevent the injurious or uneconomic practices.

Sec. 22. [CURRENT USE AGREEMENT; BEST EFFORTS.]

The commission and the baseball team must renegotiate the use agreement in effect at the metrodome as of the date of enactment on terms and conditions mutually agreeable. The agreement must provide that the owner and the baseball team will use their best efforts to field a competitive team during its remaining baseball seasons at the metrodome.

Sec. 23. [INSTRUCTION TO REVISOR.]

In the next edition of Minnesota Statutes, the revisor of statutes shall change references to sections 473.551 to 473.599 to read 473.551 to 473.5995.

Sec. 24. [REPEALER.]

Minnesota Statutes 1996, section 473.561, is repealed.


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Sec. 25. [APPLICATION.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 26. [EFFECTIVE DATE; CONTINGENT EXPIRATION.]

This article is effective the day following final enactment. If bonds have not been issued as authorized in Minnesota Statutes, section 473.5993, by December 31, 1999, this article expires on January 1, 2000.

ARTICLE 2

BASEBALL PARK SPECIAL TAXES

Section 1. Minnesota Statutes 1996, section 349A.10, is amended by adding a subdivision to read:

Subd. 5a. [SPECIAL LOTTERY GAMES.] (a) The lottery shall conduct two instant lottery games each year with sports themes.

(b) The net revenues from the games conducted under this subdivision, after deduction of the net revenue to be paid to the Minnesota environment and natural resources trust fund, are appropriated to the baseball park account.

(c) This appropriation is subordinate to the pledge and appropriation of the revenues in the special revenue fund for the payment and security of the state's outstanding revenue bonds series 1996A and any other similar bonds issued under section 16A.67, and the commissioner of finance shall transfer money from the special revenue fund to the baseball park account only after transfers sufficient to pay debt service on the outstanding bonds payable from the revenues have been made.

Sec. 2. [473I.01] [DEFINITIONS.]

Subdivision 1. [APPLICATION.] The definitions in this section and sections 473.121 and 473.551 apply to this chapter.

Subd. 2. [BASEBALL PARK.] "Baseball park" means the baseball park described in section 473.5991.

Sec. 3. [473I.02] [BASEBALL PARK ACCOUNT.]

The baseball park account is established in the special revenue fund in the state treasury. All money credited to the baseball park account is appropriated to the commissioner of finance for payment to the commission for purposes of the baseball park. The commission shall use all receipts from the baseball park account to acquire, construct, improve, administer, operate, and maintain the baseball park and to pay debt service on bonds or other obligations sold for purposes of the baseball park.

Sec. 4. [473I.03] [BASEBALL PARK DISTRICT; TAXES AND FEES.]

Subdivision 1. [LEGISLATIVE FINDINGS.] The legislature finds that the construction of the baseball park is a public improvement that has regional and statewide economic benefits. In addition, the baseball park will specifically benefit retail and service businesses within the surrounding area. The legislature finds that the designation by the commission, in consultation with the city, of the area surrounding the baseball park as a baseball park district and the imposition of taxes or fees within the district will more equitably apportion the burdens of funding the baseball park among those benefiting from the baseball park.

Subd. 2. [SPECIAL TAXES.] Notwithstanding section 477A.016, the commission may by resolution impose liquor taxes or fees and taxes on sales of food primarily for consumption on or off the premises by restaurants and places of refreshment. The taxes may be imposed only within the area within which retail and service businesses receive special economic benefits from the operation of the baseball park, and that is designated by the commission, after consultation with the city and the affected hospitality industry, as a baseball park district. The district may not be greater than an area the commission


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specifically finds by resolution receives special economic benefits from the baseball park. If the baseball park site is in the city of Minneapolis, the baseball park district may not include any of the area of the downtown taxing district under Laws 1986, chapters 396 and 400, as amended, but must include the baseball park site. The resolution 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 under section 473.5993 and for the transfer of the taxes collected to the commission for those purposes.

Sec. 5. [473I.04] [ADMISSION TAX; TICKET SURCHARGE.]

The commission may by resolution impose and maintain a tax upon the sales or use, within the metropolitan area, of the granting by any private or public person, association, or corporation, of the privilege of admission to activities at the baseball park. The commission may impose this tax as a percentage of the sales prices or as a fixed dollar ticket surcharge per admission or both. No other tax, surcharge, or governmental imposition, except the taxes imposed by chapter 297A or under section 473I.05, may be levied by any other unit of government upon that sale or distribution. A tax or surcharge under this section is included in the sale price for purposes of the tax under chapter 297A. If the commission imposes a ticket surcharge, it must be at least $1 per ticket for the seats affected. The commission and the baseball team may by mutual agreement exempt sections of the baseball park from the tax based on the sales price, the ticket surcharge, or both. The tax must be stated and charged separately from the sales price so far as practicable. The resolution of the commission may require the tax to be collected by the grantor, issuer, seller, or distributor from the person admitted. 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 commission. The debt is recoverable at law in the same manner as other debts. Every person who grants, issues, sells, or distributes tickets for the admissions may be required, as provided in resolutions of the commission to secure a permit, to file returns, to deposit security for the payment of the tax, and to pay penalties for nonpayment and interest on late payments, that are considered necessary or expedient to ensure the prompt and uniform collection of the tax. Receipts from the admission tax must be deposited in the state treasury and credited to the baseball park account in the special revenue fund.

Sec. 6. [473I.05] [SPORTS FACILITIES SALES TAX.]

Subdivision 1. [DEFINITIONS.] (a) The definitions in this subdivision and chapter 297A apply to this section.

(b) "Sports facilities sale" means any transaction, including a transfer of tangible personal property, granting of the privilege of admission, or provision of other taxable services, that:

(1) occurs on the premises of the baseball park or the metrodome as defined in section 473.551, subdivision 9;

(2) that would be taxable under chapter 297A but for the exemption under section 297A.25, subdivision 73; and

(3) are made at or in connection with a major league baseball game or a national football league game.

Subd. 2. [TAX IMPOSED.] (a) The commission may by resolution impose a tax on sports facilities sales at the rate of 3.5 percent.

(b) The tax imposed under this section is in lieu of all other state and local taxes imposed on sports facilities sales, except taxes under section 473I.03 and chapter 297A.

Subd. 3. [COLLECTION.] The tax imposed by this section must be collected in the manner provided for taxes imposed under chapter 297A and in accordance with an agreement between the commission and the commissioner of revenue.

Subd. 4. [DISPOSITION OF PROCEEDS.] All revenues, including interest and penalties, derived from the tax must be deposited in the state treasury. An amount that equals the direct department costs necessary to administer, audit, and collect this tax must be credited to the general fund. The balance must be credited to the baseball park account in the special revenue fund.


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Sec. 7. [473I.06] [PARKING TAX.]

Subdivision 1. [TAX IMPOSED.] The commission may by resolution impose a parking tax of not less than $1 per vehicle per event at the baseball park. A tax imposed under this section is included in the sale price for purposes of the tax under chapter 297A. The commission shall consult with the city about the definition of event parking and the rate of the tax before imposing or adjusting the tax.

Subd. 2. [AREA OF APPLICATION.] The tax applies to parking in the area providing event parking, as mutually agreed by the city and the commission, except for parking at a parking meter.

Subd. 3. [COLLECTION.] The tax imposed under this section must be reported and paid to the commissioner of revenue with the taxes imposed in chapter 297A and in accordance with an agreement between the commission and the commissioner of revenue. It is subject to the same interest, penalty, and other provisions provided for sales and use taxes under chapters 289A and 297A. The commissioner has the same powers to assess and collect the tax that are given the commissioner in chapters 270, 289A, and 297A to assess and collect sales and use tax.

Subd. 4. [DISPOSITION OF PROCEEDS.] All revenues, including interest and penalties, derived from the tax must be deposited in the state treasury. An amount that equals the direct department costs necessary to administer, audit, and collect this tax must be credited to the general fund. The balance must be credited to the baseball park account in the special revenue fund.

Sec. 8. [473I.07] [BASEBALL PARK INCOME SURTAX.]

Subdivision 1. [TAX IMPOSED.] The commission may by resolution impose a tax on the taxable baseball park income of a qualified employee of a sports organization that uses the baseball park or the metrodome, as defined in section 473.551, subdivision 9. The tax equals four percent of taxable baseball park income for the taxable year.

Subd. 2. [DEFINITIONS.] (a) The definitions in this subdivision and chapter 290 apply to this section.

(b) "Taxable baseball park income" means wages, salaries, or other compensation derived from the performance of personal services for a sports organization in the metropolitan area. For both residents and nonresidents, the amount attributable to performance of personal services for a sports organization is determined by first subtracting $150,000 from total compensation for the performance of personal services and then applying the allocation rules under section 290.17, subdivision 2, paragraph (a), clauses (1) and (2), except the services performed and the days or performances in the metropolitan area are to be used instead of services, days, or performances in Minnesota. The amount may not be less than zero.

(c) A "qualified employee" means an employee who derives wages, salaries, or other compensation of at least $150,000 for the performance of personal services from a sports organization for the taxable year.

(d) A "sports organization" means any organization that operates a major league baseball franchise. A sports organization includes a visiting team regardless of whether it has a direct agreement with the owner or operator of the baseball park.

Subd. 3. [COLLECTION.] The tax imposed by this section must be collected in the manner provided for individual income taxes imposed under chapter 290 and in accordance with an agreement between the commission and the commissioner of revenue.

Subd. 4. [DISPOSITION OF PROCEEDS.] All revenues, including interest and penalties, derived from the tax must be deposited in the state treasury. An amount that equals the direct department costs necessary to administer, audit, and collect this tax must be credited to the general fund. The balance must be credited to the baseball park account in the special revenue fund.


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Sec. 9. [473I.08] [ADDITIONAL BASEBALL REVENUES.]

After the outstanding debt on the metrodome has been defeased under article 3, section 5, the following amounts must be deposited in the state treasury and credited to the baseball park account in the special revenue fund:

(1) the admissions tax under section 473.595, subdivision 1, on major league baseball games; and

(2) rent paid for use of the metrodome by a major league baseball franchise.

Sec. 10. [APPLICATION.]

Sections 1 and 2 to 9 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 11. [EFFECTIVE DATE.]

This article is effective the day following final enactment. If bonds have not been issued as authorized in this act by December 31, 1999, this article expires on January 1, 2000. If the article expires under this authority, any unexpected appropriations of the baseball park account revenues cancel and the amounts revert to the state general fund.

ARTICLE 3

GOVERNANCE

Section 1. Minnesota Statutes 1996, section 473.553, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] The commission shall consist of six voting members, four nonvoting members, plus a chair appointed as provided in subdivision 3. Three voting members shall be appointed by the Minneapolis city council and three voting members shall be appointed by the city council of the city in which the stadium baseball park is located plus a chair appointed as provided in subdivision 3. The four nonvoting members shall be appointed as follows: one state representative shall be appointed by the speaker of the house, one state representative shall be appointed by the house minority caucus leader, and two state senators shall be appointed by the subcommittee on committees of the senate committee on rules and administration, one from the majority caucus and one from the minority caucus.

Sec. 2. Minnesota Statutes 1996, section 473.553, subdivision 3, is amended to read:

Subd. 3. [CHAIR.] The chair shall be appointed by the governor as the ninth seventh voting member and shall meet all of the qualifications of a member, except the chair need only reside outside the city of Minneapolis, and outside the city in which the baseball park is located if it is located outside Minneapolis. The chair shall preside at all meetings of the commission, if present, and shall perform all other duties and functions assigned by the commission or by law. The commission may appoint from among its members a vice-chair to act for the chair during temporary absence or disability.

Sec. 3. Minnesota Statutes 1996, section 473.553, subdivision 4, is amended to read:

Subd. 4. [QUALIFICATIONS.] A member shall not during a term of office hold the office of metropolitan council member or be a member of another metropolitan agency or hold any judicial office or office of state government. None of the members appointed by the Minneapolis city council of or by the city council of the city in which the stadium baseball park is located shall be an elected public official of that city or of another political subdivision any part of whose territory is shared with that city. Each member shall qualify by taking and subscribing the oath of office prescribed by the Minnesota Constitution, article V, section 6. The oath, duly certified by the official administering it, shall be filed with the chair of the metropolitan council.

Sec. 4. Minnesota Statutes 1996, section 473.553, subdivision 5, is amended to read:

Subd. 5. [TERMS.] The terms of three voting members shall end the first Monday in January in the year ending in the numeral "5". The terms of the other voting members and the chair shall end the first Monday in January in the year ending in the numeral "7". The term of each voting member and the chair shall be four years. The terms shall continue until a


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successor is appointed and qualified. Members may be removed only for cause. The nonvoting members serve at the pleasure of the respective appointing authorities.

Sec. 5. [SALE OF MET CENTER; DEFEASANCE OF METRODOME BONDS.]

Subdivision 1. [SALE.] The commission shall sell the met center by March 1, 1998. If the commission has not sold the met center by March 1, 1998, the commission shall sell it to the metropolitan council. The council shall pay a price reached by averaging the appraised fair market values provided by three appraisers. One appraiser must be hired by the commission, one by the metropolitan council, and the third by agreement of the commission and the council. The council must pay to the commission the entire purchase price upon closing.

Subd. 2. [BONDS.] The metropolitan council may borrow money or by resolution authorize the issuance of general obligation bonds or notes for the acquisition of the met center. The bonds or notes must be sold, issued, and secured in the manner provided in Minnesota Statutes, chapter 475, and the council has the same powers and duties as a municipality issuing bonds under that chapter, except that no election is required and the net debt limitations in Minnesota Statutes, chapter 475, do not apply to the bonds or notes. The obligations are not a debt of the state or any other municipality or political subdivision within the meaning of any debt limitation or requirement pertaining to those entities. The bonds or notes may be sold at any price and at a public or private sale as determined by the council. The obligations may be secured by taxes levied without limitation of rate or amount upon all taxable property in the metropolitan area.

Subd. 3. [DEFEASANCE OF METRODOME BONDS.] Upon the sale of the met center, the commission shall escrow money or securities sufficient to defease the outstanding debt on the metrodome.

Subd. 4. [USE OF PROPERTY.] The commission shall include in the contract for sale of the met center a provision that prohibits use by the purchaser or any other party of the property for a convention center or similar facility.

Sec. 6. [TRANSITION.]

If the baseball park is located outside the city of Minneapolis, the members appointed by the city council of the city in which the baseball park is located shall be appointed as soon as is practicable. The terms of the three members of the commission whose terms are next to expire after the selection of the location for the baseball park, shall expire upon the appointment and qualification of the three new members appointed by the city council of the city in which the baseball park is located.

Sec. 7. [APPLICATION; EFFECTIVE DATE.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, and is effective the day after final enactment."

Delete the title and insert:

"A bill for an act relating to baseball; providing for a process to construct, fund, maintain, and govern a major league baseball park; providing for community ownership of the baseball team; providing for powers and duties of the metropolitan sports facilities commission; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; appropriating money; amending Minnesota Statutes 1996, sections 349A.10, by adding a subdivision; 473.551, subdivision 8, and by adding subdivisions; 473.552; 473.553, subdivisions 1, 2, 3, 4, and 5; and 473.556, subdivisions 3, 4, 5, and by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 473; proposing coding for new law as Minnesota Statutes, chapter 473I; repealing Minnesota Statutes 1996, section 473.561."

A roll call was requested and properly seconded.

Mahon, Milbert, Long, Garcia, Wolf, Wejcman, Knight, Seagren, Abrams, Kelso, Ozment and Anderson, I., moved to amend the Jennings et al amendment to H. F. No. 36 as follows:

Page 32, line 13, after "center" delete "or similar facility"

The motion prevailed and the amendment to the amendment was adopted.


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McCollum and Munger moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Pages 23 to 24, delete section 1

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Abrams, Osthoff, Jennings, Long, McElroy, Koppendrayer, Knoblach, Rest, McCollum and Mares moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 29, after line 21, insert:

"Sec. 10. [473I.09] [BROADCAST FEES.]

The commission shall impose fees on the use by the broadcast media of the baseball park to broadcast major league baseball games. These fees must not be less than $10,000 per game per broadcast outlet for video broadcasting, including cable television broadcasting, and $5,000 per game per radio outlet for radio or other audio only broadcasting. Revenues from these fees must be deposited in the state treasury and credited to the baseball park account in the special revenue fund."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Sviggum moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Delete everything after page 1, line 2, and insert:

"Section 1. [DEFINITIONS.]

The definitions in Minnesota Statutes, section 473.551, apply to the terms used in sections 2 to 7.

Sec. 2. [SALE OF MET CENTER; DEFEASANCE OF METRODOME BONDS.]

Subdivision 1. [SALE.] The metropolitan sports facilities commission shall sell the met center within a reasonable time.

Subd. 2. [SALE TO METROPOLITAN COUNCIL.] If the commission has not sold the met center by December 31, 1997, the commission shall sell it to the metropolitan council. The council shall pay a price reached by averaging the appraised fair market values provided by three appraisers. One appraiser must be hired by the commission, one by the metropolitan council, and the third by agreement of the commission and the council.

Subd. 3. [BONDS.] The metropolitan council may borrow money or by resolution authorize the issuance of general obligation bonds or notes for the acquisition of the met center. The bonds or notes must be sold, issued, and secured in the manner provided in Minnesota Statutes, chapter 475, and the council has the same powers and duties as a municipality issuing bonds under that chapter, except that no election is required and the net debt limitations in Minnesota Statutes, chapter 475, do not apply to the bonds or notes. The obligations are not a debt of the state or any other municipality or political subdivision within the meaning of any debt limitation or requirement pertaining to those entities. The bonds or notes may be sold at any price and at a public or private sale as determined by the council. The obligations may be secured by taxes levied without limitation of rate or amount upon all taxable property in the metropolitan area.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6014

Subd. 4. [DEFEASANCE OF METRODOME BONDS.] Upon the sale of the met center, the commission shall escrow money or securities sufficient to defease the outstanding debt on the metrodome.

Sec. 3. [SALE OF METRODOME.]

Subdivision 1. [OFFER TO SELL.] Upon defeasance of the metrodome's bonded debt, the commission shall offer to sell the metrodome for one dollar to the major league professional football team and the major league baseball club that are tenants of the metrodome as coowners in equal shares and operators of the metrodome subject to the conditions in this act.

Subd. 2. [CONTRACTS HONORED.] As a condition of the purchase of the metrodome, the purchasers are the commission's successors and shall honor the commission's contracts with other tenants and with the metrodome's concession and maintenance services that are in effect at the time of the metrodome's sale.

Subd. 3. [RETURN TO PUBLIC OWNERSHIP.] If either the football team or the baseball club vacates the metrodome, its share is transferred to the other. If both the football team and baseball club vacate the metrodome, ownership and operation of the metrodome is transferred to the Minnesota amateur sports commission.

Sec. 4. [OTHER ASSETS AND LIABILITIES.]

Subdivision 1. [DETERMINATION.] If the tenants of the metrodome agree to buy the metrodome under section 3, the commission shall determine its remaining assets and liabilities.

Subd. 2. [PAYMENT OF LIABILITIES.] Except as provided in section 3, the commission shall pay all liabilities of the commission out of the commission's remaining funds. The state is the commission's successor in any proceeding, court action, prosecution, or other business or matter pending on the effective date of section 5, abolishing the commission.

Subd. 3. [DISTRIBUTION OF ASSETS.] After payment of liabilities, the remaining assets of the commission are distributed as follows:

(1) personalty remains with the metrodome unless otherwise negotiated by the commission and the purchasers of the metrodome; and

(2) cash and investments are transferred to the general fund.

Sec. 5. [COMMISSION ABOLISHED.]

Upon the sale of the metrodome, payment of liabilities, and distribution of assets, the metropolitan sports facilities commission is abolished.

Sec. 6. Minnesota Statutes 1996, section 240A.08, is amended to read:

240A.08 [APPROPRIATION.]

(a) $750,000 is appropriated annually from the general fund to the Minnesota amateur sports commission for the purpose of entering into long-term leases, use, or other agreements with the metropolitan sports facilities commission Minneapolis community development agency for the conduct of amateur sports activities at the basketball and hockey arena, consistent with the purposes set forth in this chapter, including (1) stimulating and promoting amateur sports, (2) promoting physical fitness by promoting participation in sports, (3) promoting the development of recreational amateur sport opportunities and activities, and (4) promoting local, regional, national, and international amateur sport competitions and events. The amateur sports commission shall determine what constitutes amateur sports activities as provided in this chapter as of March 1, 1995. The metropolitan sports facilities commission Minneapolis community development agency may allocate at least 25 but no more than 50 dates a year for the conduct of amateur sports activities at the basketball and hockey arena by the amateur sports commission. At least 12 of the dates must be on a Friday, Saturday, or Sunday. The amateur sports commission may sell a date at the arena to another group for any purpose. Revenue from sale of these dates is appropriated to the amateur sports commission for purposes listed in section 240A.04. If any amateur sports activities conducted by the amateur sports


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6015

commission at the basketball and hockey arena are restricted to participants of one gender, an equal number of activities on comparable days of the week must be conducted for participants of the other gender, but not necessarily in the same year. The legislature reserves the right to repeal or amend this appropriation, and does not intend this appropriation to create public debt.

(b) The amateur sports commission shall not transmit to the operator of the basketball and hockey arena payment of any event-related costs or expenses, including, but not limited to, personnel, labor, services, equipment, utilities, or supplies attributable to the events unless and until the operator has demonstrated, to the satisfaction of the amateur sports commission, the basis for each specific cost or expense and the means by which the costs and expenses were determined.

(c) The amateur sports commission may use any ticket system as may be in place from time to time at the basketball and hockey arena, provided that any royalty or rebate fees or charges or surcharges on tickets received by the operator of the arena from third parties must be credited against event-related costs or expenses.

(d) In the establishment of event-related costs to be imposed upon the amateur sports commission, the operator of the basketball and hockey arena shall provide the amateur sports commission with the maximum discount that the operator has supplied to any other sponsor of a similar amateur sports event in the arena within the 180-day period immediately preceding the date of the amateur sports commission event.

(e) The amateur sports commission must report by August 1 each year to the chairs of the house and senate state government finance divisions on compliance with this section and on the total value of dates and ancillary services, and revenue derived from resale of dates, during the previous state fiscal year.

(f) The attorney general, on behalf of the amateur sports commission, must pursue collection of monetary damages from the operator of the arena if the operator fails to comply with the requirements of this section.

(g) The books, records, documents, accounting procedures, and practices of the metropolitan sports facilities commission, the Minneapolis community development agency, and any corporation with which the Minnesota amateur sports commission may contract for use of the basketball and hockey arena are available for review by the Minnesota amateur sports commission, the legislative auditor, and the chairs of the state government finance divisions of the senate and the house of representatives, subject to chapter 13 and section 473.598, subdivision 4.

(h) Any long-term lease, use, or other agreement entered into by the Minnesota amateur sports commission for use of the arena must also provide for a release of the Minnesota amateur sports commission from its commitment and permit it to agree to a per event use fee when the bonds issued for the metrodome under section 473.581 have been retired.

Sec. 7. [APPROPRIATION.]

An amount equal to the cash and investments transferred to the general fund from the abolished metropolitan sports facilities commission under section 4, subdivision 3, is appropriated to the Minnesota amateur sports commission for the purposes of providing underserved youth opportunities for participating in youth sports in the metropolitan area. This appropriation is available until expended.

Sec. 8. [REPEALER.]

Minnesota Statutes 1996, sections 473.553; 473.556; 473.561; 473.564; 473.565; 473.572; 473.581; 473.592; 473.595; 473.596; 473.598, subdivisions 1, 2, 4, and 5; and 473.599; and Minnesota Statutes 1997 Supplement, section 473.598, subdivision 3, are repealed, effective upon the abolition of the metropolitan sports facilities commission under section 5.

Sec. 9. [EFFECTIVE DATE.]

Sections 1 to 8 are effective the day after their final enactment."


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6016

Delete the title and insert:

"A bill for an act relating to metropolitan sports facilities; requiring the metropolitan sports facilities commission to sell the met center; requiring the commission to escrow funds for retirement of all outstanding debt on the metrodome; transferring ownership and operation of the metrodome from the commission to the major league professional football team and baseball club; abolishing the metropolitan sports facilities commission; transferring other commission assets to the general fund; providing for amateur sports commission funding for youth sports; appropriating money; amending Minnesota Statutes 1996, section 240A.08; repealing Minnesota Statutes 1996, sections 473.553; 473.556; 473.561; 473.564; 473.565; 473.572; 473.581; 473.592; 473.595; 473.596; 473.598, subdivisions 1, 2, 4, and 5; and 473.599; Minnesota Statutes 1997 Supplement, section 473.598, subdivision 3."

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment, as amended, and the roll was called. There were 40 yeas and 91 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Dempsey Hasskamp Lindner Pugh Tompkins
Bettermann Erhardt Kielkucki Milbert Reuter Van Dellen
Bishop Farrell Knight Molnau Rhodes Westfall
Boudreau Finseth Kraus Nornes Seagren Westrom
Bradley Gunther Krinkie Olson, M. Sviggum Workman
Commers Haas Kuisle Osskopp Swenson, D.
Daggett Harder Leppik Ozment Swenson, H.

Those who voted in the negative were:

Abrams Garcia Kelso McCollum Peterson Tomassoni
Anderson, B. Goodno Kinkel McElroy Rest Trimble
Bakk Greenfield Knoblach McGuire Rifenberg Tuma
Biernat Greiling Koppendrayer Mulder Rostberg Tunheim
Broecker Hausman Koskinen Mullery Rukavina Wagenius
Carlson Hilty Kubly Munger Schumacher Weaver
Chaudhary Holsten Larsen Murphy Seifert Wejcman
Clark Huntley Leighton Ness Sekhon Wenzel
Davids Jaros Lieder Opatz Skare Winter
Dawkins Jefferson Long Orfield Skoglund Wolf
Dehler Jennings Luther Osthoff Slawik Spk. Carruthers
Delmont Johnson, A. Macklin Otremba Smith
Dorn Johnson, R. Mahon Paulsen Solberg
Entenza Juhnke Mares Pawlenty Stang
Evans Kahn Mariani Paymar Sykora
Folliard Kalis Marko Pelowski Tingelstad

The motion did not prevail and the amendment to the amendment, as amended, was not adopted.

Haas, Krinkie and Knight moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 24, line 28, delete "Subdivision 1. [LEGISLATIVE FINDINGS.]"

Page 25, delete lines 3 to 23

A roll call was requested and properly seconded.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6017

The question was taken on the amendment to the amendment, as amended, and the roll was called. There were 97 yeas and 34 nays as follows:

Those who voted in the affirmative were:

Abrams Dempsey Kielkucki McCollum Peterson Tingelstad
Anderson, B. Entenza Kinkel McGuire Reuter Tompkins
Anderson, I. Evans Knight Molnau Rhodes Trimble
Biernat Farrell Kraus Mulder Rifenberg Tuma
Bishop Finseth Krinkie Mullery Rostberg Tunheim
Boudreau Folliard Kubly Murphy Schumacher Van Dellen
Bradley Garcia Kuisle Nornes Seagren Wagenius
Broecker Greenfield Larsen Olson, M. Seifert Weaver
Carlson Greiling Lieder Orfield Skare Wejcman
Chaudhary Gunther Lindner Osskopp Skoglund Westrom
Clark Haas Long Osthoff Slawik Winter
Commers Hasskamp Luther Otremba Smith Workman
Daggett Hilty Macklin Ozment Stanek
Davids Holsten Mahon Paulsen Stang
Dawkins Johnson, A. Mares Pawlenty Sviggum
Dehler Johnson, R. Mariani Paymar Swenson, D.
Delmont Kahn Marko Pelowski Swenson, H.

Those who voted in the negative were:

Bakk Hausman Kalis Leppik Rest Wenzel
Bettermann Huntley Kelso McElroy Rukavina Westfall
Dorn Jaros Knoblach Milbert Sekhon Wolf
Erhardt Jefferson Koppendrayer Munger Solberg Spk. Carruthers
Goodno Jennings Koskinen Ness Sykora
Harder Juhnke Leighton Opatz Tomassoni

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Westrom moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Delete page 1, line 3, to page 33, line 3, and insert:

"Section 1. [473.5997] [ALTERNATIVE FINANCING.]

(a) The commission may by resolution finance the construction and operation of the baseball facility as provided in this section.

(b) The commission shall sell 20,000 seats to individuals or businesses at an average cost of $7,500 per seat. The owner of the seat shall be entitled to 75 percent of ticket revenues generated by each seat owned. The remaining 25 percent of ticket revenues shall be used for stadium maintenance expenses; provided that revenues not required for this purpose shall be paid to the owner. When the owner of a seat attends a home game, they must pay 25 percent of the face value of the ticket for the use of the seat. Ticket revenues from seat owners shall be used for stadium maintenance expenses. The owner has the obligation to maintain the stadium. The commission shall randomly select seats for sale to be evenly distributed throughout the stadium. The commission may determine how interest in a seat may be transferred and may provide for time sharing. The commission shall work with financing companies to arrange financing options for individual and business seat purchasers.

(c) Revenue from the following sources are revenue of the baseball team: sale of seats not subject to paragraph (b); private suite leases; concessions; signage; and parking.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6018

(d) The commission must enter into an agreement with the owner that provides that the owner will make an investment in the construction of the baseball park by paying the commission not less than $150,000,000 to be paid on a date satisfactory to the commission. The investment shall not be secured by any property or revenues of the commission."

Delete the title and insert:

"A bill for an act relating to baseball; providing for financing for construction and operation of a baseball facility; proposing coding for new law in Minnesota Statutes, chapter 473."

The motion did not prevail and the amendment to the amendment, as amended, was not adopted.

Tingelstad was excused for the remainder of today's session.

Smith and Jennings moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Pages 29 to 32, delete article 3 and insert:

"ARTICLE 3

GOVERNANCE

Section 1. Minnesota Statutes 1996, section 473.551, subdivision 3, is amended to read:

Subd. 3. [COMMISSION.] "Commission" means the metropolitan Minnesota sports facilities commission.

Sec. 2. Minnesota Statutes 1996, section 473.553, subdivision 1, is amended to read:

Subdivision 1. [GENERAL.] The metropolitan Minnesota sports facilities commission is established and as a public corporation and political subdivision of the state that may exercise its powers in the metropolitan area, as provided by law. The commission shall be organized, structured, and administered as provided in this section.

Sec. 3. Minnesota Statutes 1996, section 473.553, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] The commission shall consist of six:

(1) eight voting members, appointed by the city council of the city in which the stadium is located plus governor, one from each congressional district;

(2) a chair appointed as provided in subdivision 3.;

(3) one voting member appointed by the mayor of each city with a major league professional sports organization with a long-term use agreement to use a publicly owned, major league professional sports facility located in that city; and

(4) four nonvoting members appointed as provided in subdivision 2a.

Members, including the chair, appointed by the governor, shall be appointed as provided in section 15.0597. The governor's appointments to the commission are subject to the advice and consent of the senate as provided in section 15.066.

Sec. 4. Minnesota Statutes 1996, section 473.553, is amended by adding a subdivision to read:

Subd. 2a. [NONVOTING MEMBERS.] Four legislators shall serve as nonvoting members of the commission. One state representative shall be appointed by the speaker of the house and one state representative shall be appointed by the house minority caucus leader. Two state senators shall be appointed by the subcommittee on committees of the senate committee on rules and administration, one from the majority caucus, and one from the minority caucus.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6019

Sec. 5. Minnesota Statutes 1996, section 473.553, subdivision 3, is amended to read:

Subd. 3. [CHAIR.] The chair shall be appointed by the governor as the ninth a voting member and shall meet all of the qualifications of a member, except the chair need only reside outside the city of Minneapolis. The chair shall preside at all meetings of the commission, if present, and shall perform all other duties and functions assigned by the commission or by law. The commission may appoint from among its members a vice-chair to act for the chair during temporary absence or disability.

Sec. 6. Minnesota Statutes 1996, section 473.553, subdivision 4, is amended to read:

Subd. 4. [QUALIFICATIONS.] A member shall not during a term of office hold the office of metropolitan council member or, be a member of another metropolitan agency or hold any judicial office or office of state or local government. None of the members appointed by the city council of the city in which the stadium is located shall be an elected public official of that city or of another political subdivision any part of whose territory is shared with that city. Each member shall qualify by taking and subscribing the oath of office prescribed by the Minnesota Constitution, article V, section 6. The oath, duly certified by the official administering it, shall be filed with the chair of the metropolitan council secretary of state.

Sec. 7. Minnesota Statutes 1996, section 473.553, subdivision 5, is amended to read:

Subd. 5. [TERMS.] The initial terms of three the members shall end the first Monday in January in the year ending in the numeral "5" from the first, third, fifth, and seventh congressional districts are for two years. The initial terms of the other members appointed by the governor and the chair shall end the first Monday in January in the year ending in the numeral "7" are for four years. Thereafter, the term of each member appointed by the governor and the chair shall be four years. The terms shall continue until a successor is appointed and qualified. Members may be removed only for cause. The other members serve at the pleasure of the respective appointing authorities.

Sec. 8. [SALE OF MET CENTER; DEFEASANCE OF METRODOME BONDS.]

Subdivision 1. [SALE.] The commission shall sell the met center by March 1, 1998 for the full appraised value.

Subd. 2. [DEFEASANCE OF METRODOME BONDS.] Upon the sale of the met center, the commission shall escrow money or securities sufficient to defease the outstanding debt on the metrodome.

Subd. 3. [USE OF PROPERTY.] The commission shall include in the contract for sale of the met center a provision that prohibits use by the purchaser or any other party of the property for a convention center.

Sec. 9. [TRANSITION.]

Members of the metropolitan sports facilities commission shall serve as members of the Minnesota sports facilities commission until members have been appointed and qualified as provided in this article.

Sec. 10. [REVISOR INSTRUCTION.]

The revisor of statutes shall replace "metropolitan sports facilities commission" with "Minnesota sports facilities commission" wherever it appears in the next edition of Minnesota Statutes.

Sec. 11. [REPEALER.]

Minnesota Statutes 1996, section 473.553, subdivision 14, is repealed.

Sec. 12. [APPLICATION; EFFECTIVE DATE.]

This article applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, and is effective May 1, 1998."

Amend the title accordingly


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6020

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment, as amended, and the roll was called. There were 105 yeas and 19 nays as follows:

Those who voted in the affirmative were:

Abrams Evans Kalis Mahon Pelowski Swenson, D.
Anderson, B. Farrell Kelso Mares Peterson Swenson, H.
Anderson, I. Finseth Kielkucki Marko Pugh Sykora
Bakk Folliard Kinkel McCollum Rest Tompkins
Bettermann Goodno Knight McElroy Reuter Trimble
Bishop Greiling Knoblach McGuire Rhodes Tuma
Boudreau Gunther Koppendrayer Molnau Rifenberg Tunheim
Bradley Haas Koskinen Mulder Rostberg Van Dellen
Broecker Harder Kraus Murphy Seagren Weaver
Carlson Hasskamp Krinkie Ness Seifert Wenzel
Commers Hausman Kubly Nornes Sekhon Westfall
Daggett Hilty Kuisle Olson, M. Skare Westrom
Davids Holsten Larsen Opatz Slawik Winter
Dehler Jefferson Leppik Osskopp Smith Wolf
Delmont Jennings Lieder Osthoff Solberg Workman
Dempsey Johnson, A. Lindner Ozment Stanek
Dorn Johnson, R. Luther Paulsen Stang
Erhardt Juhnke Macklin Pawlenty Sviggum

Those who voted in the negative were:

Biernat Huntley Long Orfield Tomassoni Wejcman
Clark Jaros Mariani Paymar Wagenius
Entenza Kahn Milbert Rukavina
Greenfield Leighton Mullery Skoglund

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Long moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 8, line 23, after "owner" insert "and all subsequent owners"

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Biernat, Wagenius, Long and Jennings moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 29, line 20, after "metrodome" insert "and the baseball park"

Page 29, line 21, before the period, insert "of not less than $3,500,000 per year for the term of the lease agreement"

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Olson, M.; Van Dellen and Anderson, B., offered an amendment to the Jennings et al amendment, as amended, to H. F. No. 36.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6021

POINT OF ORDER

Winter raised a point of order pursuant to rule 3.09 that the Olson, M., et al amendment to the Jennings et al amendment, as amended, was not in order. The Speaker ruled the point of order well taken and the Olson, M., et al amendment to the Jennings et al amendment, as amended, out of order.

Van Dellen appealed the decision of the Chair.

A roll call was requested and properly seconded.

CALL OF THE HOUSE

On the motion of Van Dellen and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams Erhardt Juhnke Mares Pawlenty Sviggum
Anderson, B. Evans Kahn Mariani Paymar Swenson, D.
Anderson, I. Farrell Kalis Marko Pelowski Swenson, H.
Bakk Finseth Kelso McCollum Peterson Sykora
Bettermann Folliard Kielkucki McElroy Pugh Tomassoni
Biernat Garcia Kinkel McGuire Rest Tompkins
Bishop Goodno Knight Milbert Reuter Trimble
Boudreau Greenfield Knoblach Molnau Rhodes Tuma
Bradley Greiling Koppendrayer Mulder Rifenberg Van Dellen
Broecker Gunther Koskinen Mullery Rostberg Wagenius
Carlson Haas Kraus Munger Rukavina Weaver
Chaudhary Harder Kubly Murphy Schumacher Wejcman
Clark Hasskamp Kuisle Ness Seagren Wenzel
Commers Hausman Larsen Nornes Seifert Westfall
Daggett Hilty Leighton Olson, M. Sekhon Westrom
Davids Holsten Leppik Opatz Skare Winter
Dawkins Huntley Lieder Orfield Skoglund Wolf
Dehler Jaros Lindner Osskopp Slawik Workman
Delmont Jefferson Long Osthoff Smith Spk. Carruthers
Dempsey Jennings Luther Otremba Solberg
Dorn Johnson, A. Macklin Ozment Stanek
Entenza Johnson, R. Mahon Paulsen Stang

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

MOTION TO FIX TIME TO RECONVENE

Knight moved that when the House adjourns today it adjourn until 9:00 a.m., Tuesday, November 25, 1997.

A roll call was requested and properly seconded.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6022

The question was taken on the Knight motion and the roll was called. There were 8 yeas and 123 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Knight Mulder Reuter Smith
Anderson, I. Kraus Mullery

Those who voted in the negative were:

Abrams Evans Juhnke Mares Paymar Swenson, H.
Bakk Farrell Kahn Mariani Pelowski Sykora
Bettermann Finseth Kalis Marko Peterson Tomassoni
Biernat Folliard Kelso McCollum Pugh Tompkins
Bishop Garcia Kielkucki McElroy Rest Trimble
Boudreau Goodno Kinkel McGuire Rhodes Tuma
Bradley Greenfield Knoblach Milbert Rifenberg Tunheim
Broecker Greiling Koppendrayer Molnau Rostberg Van Dellen
Carlson Gunther Koskinen Munger Rukavina Wagenius
Chaudhary Haas Krinkie Murphy Schumacher Weaver
Clark Harder Kubly Ness Seagren Wejcman
Commers Hasskamp Kuisle Nornes Seifert Wenzel
Daggett Hausman Larsen Olson, M. Sekhon Westfall
Davids Hilty Leighton Opatz Skare Westrom
Dawkins Holsten Leppik Orfield Skoglund Winter
Dehler Huntley Lieder Osskopp Slawik Wolf
Delmont Jaros Lindner Osthoff Solberg Workman
Dempsey Jefferson Long Otremba Stanek Spk. Carruthers
Dorn Jennings Luther Ozment Stang
Entenza Johnson, A. Macklin Paulsen Sviggum
Erhardt Johnson, R. Mahon Pawlenty Swenson, D.

The motion did not prevail.

The vote was taken on the Van Dellen appeal to the Winter point of order "Shall the decision of the Speaker stand as the judgment of the House?" and the roll was called. There were 71 yeas and 60 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Farrell Johnson, A. Luther Osthoff Slawik
Bakk Folliard Johnson, R. Mahon Otremba Solberg
Biernat Garcia Juhnke Mariani Paymar Tomassoni
Carlson Greenfield Kahn Marko Pelowski Trimble
Chaudhary Greiling Kalis McCollum Peterson Tunheim
Clark Hasskamp Kelso McGuire Pugh Wagenius
Dawkins Hausman Kinkel Milbert Rest Wejcman
Delmont Hilty Koskinen Mullery Rukavina Wenzel
Dempsey Huntley Kubly Munger Schumacher Winter
Dorn Jaros Leighton Murphy Sekhon Wolf
Entenza Jefferson Lieder Opatz Skare Spk. Carruthers
Evans Jennings Long Orfield Skoglund

Those who voted in the negative were:

Abrams Dehler Knoblach McElroy Reuter Swenson, D.
Anderson, B. Erhardt Koppendrayer Molnau Rhodes Swenson, H.
Bettermann Finseth Kraus Mulder Rifenberg Sykora
Bishop Goodno Krinkie Ness Rostberg Tompkins
Boudreau Gunther Kuisle Nornes Seagren Tuma
Bradley Haas Larsen Olson, M. Seifert Van Dellen
Broecker Harder Leppik Osskopp Smith Weaver
Commers Holsten Lindner Ozment Stanek Westfall

Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6023
Daggett Kielkucki Macklin Paulsen Stang Westrom
Davids Knight Mares Pawlenty Sviggum Workman

So it was the judgment of the House that the decision of the Speaker should stand.

Workman was excused between the hours of 5:00 p.m. and 7:30 p.m.

Jennings, Rest and Smith moved to amend the Jennings et al amendment, as amended, by the Smith and Jennings amendment to H. F. No. 36 as follows:

Page 2, line 1, delete "one" and insert "two" and delete "member" and insert "members for each facility to be"

Page 2, line 7, delete ", including the chair,"

Page 2, line 23, strike "appointed by the"

Page 2, line 24 delete the new language and strike the existing language

Page 2, line 25, strike "qualifications of a member"

Page 2, line 26, before the period, insert "elected by and from among the members of the commission"

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Knoblach moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 18, line 13, after "7," insert "and the net proceeds of the lottery under section 349A.10, subdivision 5,"

Page 19, line 22, after "246.18" insert "and the net proceeds of the lottery under section 349A.10, subdivision 5"

The motion prevailed and the amendment to the amendment, as amended, was adopted.

The Speaker called Orfield to the Chair.

Kahn and Krinkie moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 14, after line 18, insert:

"Subd. 20. [GOVERNOR'S DETERMINATION REGARDING REVENUE SHARING AGREEMENT.] The governor must certify in a written report to the legislature that major league baseball has completed a revenue sharing agreement between owners of major league baseball teams and major league professional baseball players. The governor must certify that the agreement is sufficient to ensure that the total gross revenues of baseball teams in all markets, from all sources, will be equalized. As used in this subdivision, "equalized" means that small market teams are projected to have revenues no less than 50 percent of the revenues of the major league baseball team that has the highest amount of revenue."


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6024

Page 14, line 19, delete "20" and insert "21"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment, as amended, and the roll was called. There were 100 yeas and 28 nays as follows:

Those who voted in the affirmative were:

Abrams Delmont Jaros Leppik Pawlenty Solberg
Anderson, B. Dorn Johnson, A. Long Paymar Stanek
Anderson, I. Entenza Johnson, R. Luther Pelowski Stang
Bakk Erhardt Juhnke Macklin Peterson Sviggum
Bettermann Evans Kahn Mahon Pugh Swenson, H.
Biernat Farrell Kelso Mariani Rhodes Sykora
Bishop Finseth Kielkucki Marko Rifenberg Trimble
Boudreau Folliard Kinkel McCollum Rostberg Tuma
Bradley Garcia Knoblach McGuire Rukavina Tunheim
Broecker Goodno Koppendrayer Mulder Schumacher Van Dellen
Carlson Greenfield Koskinen Munger Seagren Wagenius
Chaudhary Greiling Kraus Nornes Seifert Wejcman
Clark Gunther Krinkie Olson, M. Sekhon Wenzel
Commers Haas Kubly Opatz Skare Westfall
Daggett Harder Kuisle Osskopp Skoglund Winter
Dawkins Hasskamp Larsen Otremba Slawik
Dehler Hilty Leighton Paulsen Smith

Those who voted in the negative were:

Davids Jefferson Lindner Murphy Reuter Westrom
Dempsey Jennings Mares Ness Swenson, D. Wolf
Hausman Kalis McElroy Osthoff Tomassoni Spk. Carruthers
Holsten Knight Milbert Ozment Tompkins
Huntley Lieder Molnau Rest Weaver

The motion prevailed and the amendment to the amendment, as amended, was adopted.

The Speaker resumed the Chair.

Kahn and Dawkins moved to amend the Jennings et al amendment, as amended, to H. F. No. 36 as follows:

Page 10, delete lines 17 to 36

Page 11, delete lines 1 to 3 and insert:

"(b) The commission must have executed an agreement with the nonprofit corporation that provides an ownership structure after the transfer by the nonprofit corporation that meets the following condition:

(1) the individual or entity that manages the team must own no more than 25 percent of the shares of the team;

(2) other than the managing individual or entity, no individual or entity may own more than five percent of the total shares of the team, and at least 50 percent of the ownership of the team must be dispersed in a manner such that no person or entity owns more than one percent of the shares of the team;


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6025

(3) the structure must provide for a class of shares that entitle the shareholder the right to vote only on whether the baseball team may move to another state; and

(4) the articles of incorporation, or other organizing charter or agreement and bylaws must provide that the team may not move outside of the state without approval of 80 percent of the owners of shares with full voting rights, and 80 percent of the owners of shares sold under clause (3). Notwithstanding any law to the contrary, these 80 percent approval requirements may not be amended by the shareholders or by any other means.

For purposes of the percentage restrictions in clause (2), the shares owned by an individual or entity include the shares owned by a related taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986."

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment, as amended, and the roll was called. There were 43 yeas and 87 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Evans Kahn Mullery Rhodes Wagenius
Bakk Farrell Krinkie Munger Rukavina Wenzel
Biernat Folliard Kubly Orfield Schumacher Winter
Carlson Haas Leighton Osthoff Sekhon
Chaudhary Hasskamp Leppik Pawlenty Skoglund
Commers Hilty Mariani Paymar Swenson, D.
Dawkins Jaros Marko Pelowski Tomassoni
Entenza Juhnke Mulder Pugh Trimble

Those who voted in the negative were:

Abrams Finseth Kelso Mahon Paulsen Swenson, H.
Anderson, I. Garcia Kielkucki Mares Peterson Sykora
Bettermann Goodno Kinkel McCollum Rest Tompkins
Bishop Greenfield Knight McElroy Reuter Tuma
Boudreau Greiling Knoblach McGuire Rifenberg Tunheim
Bradley Gunther Koppendrayer Milbert Rostberg Van Dellen
Broecker Harder Koskinen Molnau Seagren Weaver
Clark Hausman Kraus Murphy Seifert Wejcman
Daggett Holsten Kuisle Ness Skare Westfall
Davids Huntley Larsen Nornes Slawik Westrom
Dehler Jefferson Lieder Olson, M. Smith Wolf
Delmont Jennings Lindner Opatz Solberg Spk. Carruthers
Dempsey Johnson, A. Long Osskopp Stanek
Dorn Johnson, R. Luther Otremba Stang
Erhardt Kalis Macklin Ozment Sviggum

The motion did not prevail and the amendment to the amendment, as amended, was not adopted.

The question recurred on the Jennings et al amendment, as amended, and the roll was called. There were 66 yeas and 64 nays as follows:


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6026

Those who voted in the affirmative were:

Abrams Finseth Kielkucki Milbert Rest Sykora
Bakk Goodno Kinkel Molnau Reuter Tomassoni
Bettermann Gunther Knoblach Mullery Rhodes Tompkins
Biernat Harder Koppendrayer Munger Rukavina Tuma
Bishop Hausman Kuisle Ness Seagren Tunheim
Boudreau Holsten Leppik Nornes Sekhon Weaver
Bradley Huntley Lieder Opatz Solberg Wenzel
Carlson Jefferson Mahon Osthoff Stanek Westfall
Daggett Jennings Mares Paulsen Sviggum Winter
Dorn Juhnke McCollum Pelowski Swenson, D. Wolf
Erhardt Kelso McElroy Pugh Swenson, H. Spk. Carruthers

Those who voted in the negative were:

Anderson, B. Entenza Johnson, A. Lindner Osskopp Skoglund
Anderson, I. Evans Johnson, R. Long Otremba Slawik
Broecker Farrell Kahn Luther Ozment Smith
Chaudhary Folliard Kalis Macklin Pawlenty Stang
Clark Garcia Knight Mariani Paymar Trimble
Commers Greenfield Koskinen Marko Peterson Van Dellen
Davids Greiling Kraus McGuire Rifenberg Wagenius
Dawkins Haas Krinkie Mulder Rostberg Wejcman
Dehler Hasskamp Kubly Murphy Schumacher Westrom
Delmont Hilty Larsen Olson, M. Seifert
Dempsey Jaros Leighton Orfield Skare

The motion prevailed and the amendment, as amended, was adopted.

Rostberg moved to amend H. F. No. 36, as amended, as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 473.551, subdivision 1, is amended to read:

Subdivision 1. [TERMS.] For the purposes of sections 473.551 to 473.599 473.5996, the following terms shall have the meanings given in this section.

Sec. 2. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 18. [BASEBALL FACILITY.] "Baseball facility" means the major league professional baseball stadium, constructed pursuant to this act and owned by the commission.

Sec. 3. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 19. [BASEBALL TEAM.] "Baseball team" means the professional major league baseball team.

Sec. 4. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 20. [REVENUES OF THE BASEBALL TEAM.] "Revenues of the baseball team" means all revenues of the baseball team from whatever source, including, but not limited to, any revenues from baseball facility naming rights, sales of personal seat licenses and club seats, private suite leases, concessions, signage, parking, and ticket sales.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6027

Sec. 5. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:

Subd. 21. [OWNER.] "Owner" means the individual or individuals acting in concert, or other legal entity, who directly or indirectly owns at least a majority or controlling interest in the baseball team.

Sec. 6. [473.5991] [BASEBALL FACILITY.]

Subdivision 1. [LOCATION; OWNERSHIP; OPERATION.] The commission shall construct a baseball facility that is located within the metropolitan area, owned by the commission, and operated by the baseball team and its owner.

Subd. 2. [SITE SELECTION; DESIGN; CONSTRUCTION TEAM.] The commission and the owner, by mutual agreement, must select a site for the baseball facility and must determine the program elements of the baseball facility, including capacity, suites, club seats, clubs, and amenities. The commission and the owner, by mutual agreement, must also determine the baseball facility design, including whether or not to include a retractable roof on the facility, and the selection of the construction team, including the architect and general contractor.

Subd. 3. [CAPITAL REPAIR; IMPROVEMENTS.] The commission is responsible for capital repairs and improvements necessary to maintain the baseball facility. To the extent the costs to maintain the facility exceed the funds in the capital improvement fund, the commission and the owner shall agree on the improvements to be made.

Sec. 7. [473.5992] [DETERMINATIONS REQUIRED BEFORE CONSTRUCTION BONDS ISSUED.]

Subdivision 1. [SCOPE.] The commission shall determine that everything required by this section has been done before it authorizes the issuance of bonds for construction of the baseball facility.

Subd. 2. [30-YEAR USE AGREEMENT; ORGANIZATIONAL DECISIONS.] (a) The commission must execute agreements with the owner to use the commission's facilities for all scheduled regular season and postseason home games for a period of no less than 30 years, and the owner has agreed to pay baseball team revenues to the debt service fund as provided in section 10, subdivision 2. The agreements shall afford to the commission or other public entity, as the commission deems appropriate, the remedies that are deemed necessary and appropriate to provide reasonable assurances that the team and the owner will comply with the agreements. The remedies may include the payment of liquidated damages equivalent to direct and consequential damages incurred by reason of the breach of the agreements and any additional remedies or security arrangements the commission reasonably determines to be effective in accomplishing the purpose of this subdivision. The baseball team and its owner must provide information sufficient to satisfy the commission of the team's and the owner's ability to comply with the terms of the 30-year use agreement.

(b) The commission and the owner must agree to the right of the commission to approve all major organizational decisions, including sale of the ownership interest in the team, or a change in location of the team.

Subd. 3. [REVENUES TO BE SUFFICIENT.] Two independent, professional economic analyses must conclude that the anticipated amount to be deposited in the debt service fund under section 9 is an amount sufficient to pay when due all debt service, plus all administrative, operating, and maintenance expense and the owner must pledge and secure as necessary an amount sufficient to pay when due all debt service on the revenue bonds issued under this act.

Subd. 4. [COMMISSION'S RIGHT TO TITLE OF PROPERTY.] The commission must acquire, or contract to acquire, title to all real property including all easements and other appurtenances needed for the construction and operation of the baseball facility and enter into agreements sufficient in the judgment of the commission to ensure 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.

Subd. 5. [SUFFICIENT FUNDS FOR CLEARING PROPERTY.] The commission must enter into agreements sufficient in the judgment of the commission to ensure the receipt of funds, at the time and in the amount required, to pay all costs, except as provided in this section, of clearing the real property needed for the construction and operation of the baseball facility of all buildings, railroad tracks, and other structures including, without limitation, all relocation costs including utility relocation costs and all legal costs.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6028

Subd. 6. [NO STRIKES OR LOCKOUTS.] The commission must execute agreements with appropriate labor organizations and construction contractors that provide that no labor strikes or management lockouts will delay construction.

Subd. 7. [GUARANTEED MAXIMUM PRICE.] The commission must execute agreements to provide for the construction of the baseball facility for a guaranteed maximum price and substantial completion date of April 1, 2001, and that include performance bonds in an amount at least equal to 100 percent of the guaranteed maximum price to cover any costs that may be incurred over and above the guaranteed maximum price, including, but not limited to, costs incurred by the commission or loss of revenues resulting from incomplete construction on the substantial completion date.

Subd. 8. [OWNER TO OPERATE FACILITY.] The commission and the owner must execute agreements that provide for the operation and maintenance of the baseball facility. The agreements must provide that:

(1) the owner, in consultation with the commission, must provide for management of the baseball facility and may contract with one or more entities to operate part or all of the baseball facility; and

(2) the owner, in consultation with the commission, may contract with one or more concessionaires to provide food and beverages for the baseball facility.

Sec. 8. [473.5993] [DEBT FINANCING.]

Subdivision 1. [PURPOSES.] The commission may by resolution authorize the issuance and sale of its taxable revenue bonds in a principal amount that does not exceed $450,000,000 for the following purposes:

(1) to provide funds for site assembly and construction of the baseball facility by the commission under this section, to establish necessary debt service reserves, and to pay issuance costs and costs of credit enhancement for the bonds, if any;

(2) to refund bonds issued under this section;

(3) to fund judgments entered by any court against the commission or against the commission in matters relating to the commission's functions related to the baseball facility; and

(4) to fund a debt service reserve, provided that no more than $50,000,000 of the bond proceeds may be used for this purpose.

Subd. 2. [PROCEDURE.] The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues and the commission 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 commission. They shall be payable solely from revenues described in section 9. The bonds shall not be a general or moral obligation or debt of the commission, any other political subdivision of the state, or the state, 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. No election is required.

Subd. 3. [REVENUE ANTICIPATION CERTIFICATES.] In anticipation of the revenues of the commission provided for in this act, but subject to any limitation or prohibition in a bond resolution or indenture, the council may authorize the issuance, negotiation, and sale, in the form and manner and upon the 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 revenues anticipated. The certificates shall mature not later than three months after the close of the budget year. As much of the anticipated baseball facility revenues as may be needed for the payment of the certificates and interest on them shall be paid into a special debt service fund established for the certificates in the commission's financial records. If for any reason the anticipated revenues are insufficient, the certificates and interest shall be paid from the first 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 may be used or for any purpose for which bond proceeds under subdivision 1 may be used.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6029

Subd. 4. [VALIDITY OF DEBT ISSUED.] The validity of any bonds issued under this section and the obligations of the commission related to them, must not be conditioned upon or impaired by the commission's determinations made under section 7. For the purposes of issuing bonds, the determinations made by the commission are conclusive, and the commission is obligated for the security and payment of the bonds, but only from the sources pledged to them, irrespective of determinations that may be erroneous, inaccurate, or otherwise mistaken.

Subd. 5. [BROKERAGE FIRM AGREEMENT.] Before issuing debt under this section, the commission must enter into an agreement with the brokerage firm to be used in connection with the issuance and sale of the bonds or revenue anticipation certificates under this section, guaranteeing that fees and charges payable to the brokerage firm under the agreement, including any underwriting discounts, do not exceed fees and charges customarily payable in connection with the issuance and sale of bonds or revenue anticipation certificates.

Subd. 6. [NO STATE GENERAL OBLIGATIONS.] Revenue bonds that are issued, sold, and secured under this act are not an obligation of the state. Bonds issued and sold by the commission under this act are payable solely from revenues of the baseball facility. The state shall not assume any obligation or liability for bonds issued or sold under this act.

Sec. 9. [473.5994] [USE OF BASEBALL TEAM REVENUES.]

By March 1 of 1998 and each subsequent year, the owner shall determine the revenues of the baseball team for the previous calendar year. To the extent those revenues exceed the revenues of the baseball team from the 1996 calendar year, increased by the percentage increase in the most recent consumer price index for all-urban consumers published by the department of labor over the index for 1996, the owner must deposit the excess revenues in the debt service fund, except as provided in section 10, subdivision 3.

Sec. 10. [473.5995] [COMMISSION FINANCES RELATED TO BASEBALL STADIUM.]

Subdivision 1. [BUDGET; COUNCIL REVIEW AND APPROVAL.] (a) The commission shall prepare a proposed baseball stadium-related budget by August 1 of each year. The budget shall include the baseball facility revenues and expenditures. The budget must show the estimated capital improvement fund revenues and expenditures, and the debt service costs and outstanding debt of the commission related to site assembly and construction of the baseball facility.

(b) Before August 15 of each year, the commission shall hold a public hearing on a draft of the proposed budget after reasonable public notice.

(c) The commission shall approve or disapprove the budget by October 1 of each year.

(d) Before December 15 of each year, the commission shall by resolution adopt a final budget and file it with the metropolitan council before December 20.

Subd. 2. [DEBT SERVICE FUND.] As provided in section 9, the commission must establish a debt service fund in which to deposit funds the commission receives to ensure payment of any debt issued by the metropolitan council under this act.

Subd. 3. [CAPITAL REPAIR AND IMPROVEMENT FUND.] The commission must establish a baseball facility capital repair and improvement account in which to deposit revenues received from gross revenues of the team not required to be deposited in the debt service fund, in an amount to be mutually agreed to by the owner and the commission as sufficient for this purpose. The money in this account may be used by the commission to make capital repairs to and improvements of the baseball facility.

Subd. 4. [EXCESS REVENUES TO TEAM.] Any revenues of the baseball team that are not required to be paid into the debt service fund under subdivision 2 or the capital repair and improvement fund under subdivision 3, shall remain with the baseball team.

Sec. 11. [473.5996] [OPERATION OF BASEBALL FACILITY TO BE SELF-SUPPORTING.]

(a) The legislature intends that the admissions, rates, rentals, and other charges imposed in the operation of the baseball facility permit the baseball facility to be self-supporting in its construction and operations. No state or local government funds shall be contributed to the baseball team or the commission for the support of the baseball facility.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6030

(b) The legislature intends that, other than agreeing to the use of increased revenues of the baseball team, the owner is not required to make any contribution to the cost of construction of the baseball facility.

Sec. 12. [EFFECTIVE DATE.]

Sections 1 to 11 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to sports; providing for a process to construct a major league baseball facility without the use of public funds; authorizing issuance of bonds and other debt by the metropolitan sports facilities commission; amending Minnesota Statutes 1996, sections 473.551, subdivision 1, and by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 473."

A roll call was requested and properly seconded.

The question was taken on the Rostberg amendment and the roll was called. There were 51 yeas and 79 nays as follows:

Those who voted in the affirmative were:

Abrams Daggett Kielkucki Molnau Peterson Tompkins
Anderson, B. Erhardt Knight Mulder Reuter Tuma
Bettermann Finseth Kraus Mullery Rhodes Van Dellen
Biernat Folliard Krinkie Nornes Rostberg Weaver
Boudreau Gunther Larsen Olson, M. Stanek Westfall
Bradley Harder Leppik Osskopp Stang Westrom
Broecker Hasskamp Lindner Ozment Sviggum
Carlson Holsten Marko Paulsen Swenson, D.
Commers Johnson, R. McCollum Pawlenty Swenson, H.

Those who voted in the negative were:

Anderson, I. Garcia Kalis Mares Pugh Tomassoni
Bakk Goodno Kelso Mariani Rest Trimble
Bishop Greenfield Kinkel McElroy Rifenberg Tunheim
Chaudhary Greiling Knoblach McGuire Rukavina Wagenius
Clark Haas Koppendrayer Milbert Schumacher Wejcman
Davids Hausman Koskinen Munger Seagren Wenzel
Dawkins Hilty Kubly Murphy Seifert Winter
Dehler Huntley Kuisle Ness Sekhon Wolf
Delmont Jaros Leighton Opatz Skare Spk. Carruthers
Dempsey Jefferson Lieder Orfield Skoglund
Dorn Jennings Long Osthoff Slawik
Entenza Johnson, A. Luther Otremba Smith
Evans Juhnke Macklin Paymar Solberg
Farrell Kahn Mahon Pelowski Sykora

The motion did not prevail and the amendment was not adopted.

H. F. No. 36, A bill for an act relating to baseball; providing for a process to construct, fund, maintain, and govern a major league baseball park; providing for community ownership of the baseball team; providing for powers and duties of the Minnesota sports facilities commission; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; appropriating money; amending Minnesota Statutes 1996, sections 297A.25, by adding a subdivision;


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6031

349A.10, by adding a subdivision; 473.551, subdivisions 3, 8, and by adding subdivisions; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, and by adding a subdivision; and 473.556, subdivisions 3, 4, 5, and by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 473; proposing coding for new law as Minnesota Statutes, chapter 473I; repealing Minnesota Statutes 1996, sections 473.553, subdivision 14; and 473.561.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 47 yeas and 84 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Jefferson McElroy Rest Tomassoni
Bakk Finseth Jennings Milbert Rostberg Tunheim
Bettermann Goodno Kinkel Munger Rukavina Weaver
Bishop Gunther Knoblach Ness Seagren Wenzel
Boudreau Hasskamp Koppendrayer Nornes Solberg Westfall
Bradley Hausman Leppik Opatz Sviggum Wolf
Daggett Huntley Lieder Paulsen Swenson, D. Spk. Carruthers
Dorn Jaros Mares Pelowski Sykora

Those who voted in the negative were:

Anderson, B. Evans Kalis Macklin Otremba Slawik
Anderson, I. Farrell Kelso Mahon Ozment Smith
Biernat Folliard Kielkucki Mariani Pawlenty Stanek
Broecker Garcia Knight Marko Paymar Stang
Carlson Greenfield Koskinen McCollum Peterson Swenson, H.
Chaudhary Greiling Kraus McGuire Pugh Tompkins
Clark Haas Krinkie Molnau Reuter Trimble
Commers Harder Kubly Mulder Rhodes Tuma
Davids Hilty Kuisle Mullery Rifenberg Van Dellen
Dawkins Holsten Larsen Murphy Schumacher Wagenius
Dehler Johnson, A. Leighton Olson, M. Seifert Wejcman
Delmont Johnson, R. Lindner Orfield Sekhon Westrom
Dempsey Juhnke Long Osskopp Skare Winter
Entenza Kahn Luther Osthoff Skoglund Workman

The bill was not passed, as amended.

HOUSE ADVISORIES

The following House Advisories were introduced:

Clark, Rest, Kahn, Sykora and Garcia introduced:

H. A. No. 1, A proposal for support for women's professional baseball and its equal access to playing facilities.

The advisory was referred to the Committee on Local Government and Metropolitan Affairs.

Clark, Bettermann, Greenfield, Pelowski and Sykora introduced:

H. A. No. 2, A proposal to study sliding fee child care services.

The advisory was referred to the Committee on Health and Human Services.


Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6032

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:

S. F. No. 2.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 2, A bill for an act relating to professional athletics; allowing the governor to purchase the Minnesota Twins on behalf of the state; providing for the sale of the Minnesota Twins to a Minnesota corporation if the corporation satisfies certain conditions; requiring certain provisions in the articles of incorporation of a corporation seeking to acquire the Minnesota Twins; authorizing issuance of stock; appropriating money.

The bill was read for the first time.

SUSPENSION OF RULES

Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Dawkins moved that the rule therein be suspended and an urgency be declared so that S. F. No. 2 be given its second and third readings and be placed upon its final passage.

A roll call was requested and properly seconded.

The question was taken on the Dawkins motion and the roll was called. There were 38 yeas and 93 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Folliard Koskinen Mullery Schumacher Wenzel
Bakk Hasskamp Kubly Munger Sekhon Winter
Biernat Hilty Long Murphy Skare Spk. Carruthers
Chaudhary Jaros Mahon Otremba Slawik
Dawkins Johnson, R. Mariani Paymar Solberg
Entenza Juhnke Marko Peterson Tomassoni
Evans Kahn Milbert Rukavina Trimble

Those who voted in the negative were:

Abrams Erhardt Kalis Macklin Pawlenty Swenson, H.
Anderson, B. Farrell Kelso Mares Pelowski Sykora

Journal of the House - 3rd Day - Thursday, November 13, 1997 - Top of Page 6033
Bettermann Finseth Kielkucki McCollum Pugh Tompkins
Bishop Garcia Kinkel McElroy Rest Tuma
Boudreau Goodno Knight McGuire Reuter Tunheim
Bradley Greenfield Knoblach Molnau Rhodes Van Dellen
Broecker Greiling Koppendrayer Mulder Rifenberg Wagenius
Carlson Gunther Kraus Ness Rostberg Weaver
Clark Haas Krinkie Nornes Seagren Wejcman
Commers Harder Kuisle Olson, M. Seifert Westfall
Daggett Hausman Larsen Opatz Skoglund Westrom
Davids Holsten Leighton Orfield Smith Wolf
Dehler Huntley Leppik Osskopp Stanek Workman
Delmont Jefferson Lieder Osthoff Stang
Dempsey Jennings Lindner Ozment Sviggum
Dorn Johnson, A. Luther Paulsen Swenson, D.

The motion did not prevail.

S. F. No. 2 was referred to the Committee on Rules and Legislative Administration.

McGuire was excused for the remainder of today's session.

There being no objection, the order of business reverted to Messages from the Senate.

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:

S. F. No. 16.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 16, A bill for an act relating to education finance; providing an effective date for a requirement that contracts relating to construction or improvement of educational facilities are subject to prevailing wage requirements; amending Laws 1997, chapter 231, article 16, section 31.

The bill was read for the first time.

SUSPENSION OF RULES

Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Tuma moved that the rule therein be suspended and an urgency be declared so that S. F. No. 16 be given its second and third readings and be placed upon its final passage.

A roll call was requested and properly seconded.


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The question was taken on the Tuma motion and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 51 yeas and 78 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Goodno Kraus Mulder Rifenberg Tuma
Bettermann Gunther Krinkie Nornes Rostberg Tunheim
Boudreau Haas Kuisle Olson, M. Schumacher Van Dellen
Broecker Harder Larsen Osskopp Seifert Westfall
Commers Holsten Lindner Ozment Stanek Westrom
Daggett Kalis Macklin Pawlenty Stang Workman
Davids Kielkucki McElroy Peterson Sviggum
Dehler Knight Milbert Pugh Swenson, D.
Finseth Knoblach Molnau Rhodes Swenson, H.

Those who voted in the negative were:

Abrams Erhardt Jennings Long Osthoff Smith
Anderson, I. Evans Johnson, A. Luther Otremba Solberg
Bakk Farrell Johnson, R. Mahon Paulsen Sykora
Biernat Folliard Juhnke Mares Paymar Tomassoni
Bishop Garcia Kahn Mariani Pelowski Tompkins
Bradley Greenfield Kelso Marko Rest Trimble
Carlson Greiling Kinkel McCollum Reuter Wagenius
Chaudhary Hasskamp Koppendrayer Mullery Rukavina Weaver
Clark Hausman Koskinen Munger Seagren Wejcman
Dawkins Hilty Kubly Murphy Sekhon Wenzel
Delmont Huntley Leighton Ness Skare Winter
Dorn Jaros Leppik Opatz Skoglund Wolf
Entenza Jefferson Lieder Orfield Slawik Spk. Carruthers

The motion did not prevail.

S. F. No. 16 was referred to the Committee on Rules and Legislative Administration.

The members of the House paused for a moment of silence in honor of Fire Captain Leroy Swenson who passed away earlier this year.

Winter moved that the Chief Clerk be and is hereby authorized to correct and approve the Journal of the House, 1997 Third Special Session, for today, Thursday, November 13, 1997, and that he be authorized to include in the Journal for today any subsequent proceedings. The motion prevailed.

Winter moved that the Chief Clerk be and is hereby instructed to inform the Senate and the Governor by message that the House of Representatives is about to adjourn this 1997 Third Special Session sine die. The motion prevailed.


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MOTION TO ADJOURN THIRD SPECIAL

SESSION SINE DIE

Winter moved that the House adjourn sine die for the 1997 Third Special Session. The motion prevailed, and the Speaker declared the House stands adjourned sine die for the 1997 Third Special Session.

Edward A. Burdick, Chief Clerk, House of Representatives


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