Bill Text: MN SF1604 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minnesota Vikings stadium state commitment reduction
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-04-16 - Referred to Finance [SF1604 Detail]
Download: Minnesota-2013-SF1604-Introduced.html
1.2relating to stadiums; reducing the state commitment to a Minnesota Vikings
1.3football stadium;amending Minnesota Statutes 2012, sections 16A.965,
1.4subdivision 2; 473J.11, subdivision 4.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 16A.965, subdivision 2, is amended to read:
1.7 Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the
1.8limitations of this subdivision, the commissioner may sell and issue appropriation bonds
1.9of the state under this section for public purposes as provided by law, including, in
1.10particular, the financing of all or a portion of the acquisition, construction, improving,
1.11and equipping of the stadium project of the Minnesota Sports Facilities Authority as
1.12provided by chapter 473J. Proceeds of the appropriation bonds must be credited to a
1.13special appropriation stadium bond proceeds fund in the state treasury. Net income from
1.14investment of the proceeds, as estimated by the commissioner, must be credited to the
1.15special appropriation stadium bond proceeds fund.
1.16(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
1.17the commissioner, are necessary to provide sufficient funds, not to exceed$498,000,000
1.18 $298,000,000 net of costs of issuance, revenue generated under section16A.6455 , and
1.19allocated by the commissioner of management and budget for this purpose and costs of
1.20credit enhancement for achieving the purposes authorized as provided under paragraph
1.21(a), and pay debt service including capitalized interest, pay costs of issuance, make
1.22deposits to reserve funds, pay the costs of credit enhancement, or make payments under
1.23other agreements entered into under paragraph (d); provided, however, that appropriation
2.1bonds issued and unpaid shall not exceed$600,000,000 $400,000,000 in principal amount,
2.2excluding refunding bonds sold and issued under subdivision 4.
2.3(c) Appropriation bonds may be issued from time to time in one or more series on
2.4the terms and conditions the commissioner determines to be in the best interests of the
2.5state, but the term on any series of appropriation bonds may not exceed 30 years. The
2.6appropriation bonds of each issue and series thereof shall be dated and bear interest,
2.7and may be includable in or excludable from the gross income of the owners for federal
2.8income tax purposes.
2.9(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
2.10time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
2.11enter into agreements and ancillary arrangements relating to the appropriation bonds,
2.12including but not limited to trust indentures, grant agreements, lease or use agreements,
2.13operating agreements, management agreements, liquidity facilities, remarketing or
2.14dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
2.15reimbursement agreements, indexing agreements, or interest exchange agreements. Any
2.16payments made or received according to the agreement or ancillary arrangement shall be
2.17made from or deposited as provided in the agreement or ancillary arrangement. The
2.18determination of the commissioner included in an interest exchange agreement that the
2.19agreement relates to an appropriation bond shall be conclusive.
2.20(e) The commissioner may enter into written agreements or contracts relating to the
2.21continuing disclosure of information necessary to comply with, or facilitate the issuance
2.22of appropriation bonds in accordance with federal securities laws, rules, and regulations,
2.23including Securities and Exchange Commission rules and regulations in Code of Federal
2.24Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
2.25with purchasers and holders of appropriation bonds set forth in the order or resolution
2.26authorizing the issuance of the appropriation bonds, or a separate document authorized
2.27by the order or resolution.
2.28(f) The appropriation bonds are not subject to chapter 16C.
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
2.30 Sec. 2. Minnesota Statutes 2012, section 473J.11, subdivision 4, is amended to read:
2.31 Subd. 4. Cost overruns, savings. (a) Within the limits of paragraph (b), the
2.32authority may accept financial obligations relating to cost overruns associated with
2.33acquisition of the stadium site, stadium infrastructure, and stadium design, development,
2.34and construction, provided that the authority shall bid project construction in a manner
2.35that any cost overruns are the responsibility of the successful bidder and not the authority
3.1or the state. The authority shall not accept responsibility for cost overruns and shall not
3.2be responsible for cost overruns if the authority has authorized the NFL team to provide
3.3for management of construction of the stadium under subdivision 1. Cost savings or
3.4additional funds obtained by the authority or the NFL team for the stadium or stadium
3.5infrastructure may be used first to fund additional stadium or stadium infrastructure, as
3.6agreed to by the authority and the NFL team, if any, and then to fund capital reserves.
3.7 (b) The state share of stadium costs shall be limited to$348,000,000 $148,000,000
3.8 for construction of a new stadium, as permitted under section16A.726 . The city of
3.9Minneapolis share shall be limited to no more than a $150,000,000 contribution for
3.10construction, and the annual operating cost and capital contributions contained under
3.11section473J.13 .
3.12EFFECTIVE DATE.This section is effective the day following final enactment.
3.13 Sec. 3. STADIUM TRANSITION.
3.14The Minnesota Stadium Authority shall modify the design and construction plans
3.15to adjust for the reduction of state funding under this act through negotiations with the
3.16football team. The adjustments may include additional private funding, or a reduction in
3.17the size and scope of the proposed stadium, as agreed to by the authority and team.
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
1.3football stadium;amending Minnesota Statutes 2012, sections 16A.965,
1.4subdivision 2; 473J.11, subdivision 4.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 16A.965, subdivision 2, is amended to read:
1.7 Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the
1.8limitations of this subdivision, the commissioner may sell and issue appropriation bonds
1.9of the state under this section for public purposes as provided by law, including, in
1.10particular, the financing of all or a portion of the acquisition, construction, improving,
1.11and equipping of the stadium project of the Minnesota Sports Facilities Authority as
1.12provided by chapter 473J. Proceeds of the appropriation bonds must be credited to a
1.13special appropriation stadium bond proceeds fund in the state treasury. Net income from
1.14investment of the proceeds, as estimated by the commissioner, must be credited to the
1.15special appropriation stadium bond proceeds fund.
1.16(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
1.17the commissioner, are necessary to provide sufficient funds, not to exceed
1.18 $298,000,000 net of costs of issuance, revenue generated under section
1.19allocated by the commissioner of management and budget for this purpose and costs of
1.20credit enhancement for achieving the purposes authorized as provided under paragraph
1.21(a), and pay debt service including capitalized interest, pay costs of issuance, make
1.22deposits to reserve funds, pay the costs of credit enhancement, or make payments under
1.23other agreements entered into under paragraph (d); provided, however, that appropriation
2.1bonds issued and unpaid shall not exceed
2.2excluding refunding bonds sold and issued under subdivision 4.
2.3(c) Appropriation bonds may be issued from time to time in one or more series on
2.4the terms and conditions the commissioner determines to be in the best interests of the
2.5state, but the term on any series of appropriation bonds may not exceed 30 years. The
2.6appropriation bonds of each issue and series thereof shall be dated and bear interest,
2.7and may be includable in or excludable from the gross income of the owners for federal
2.8income tax purposes.
2.9(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
2.10time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
2.11enter into agreements and ancillary arrangements relating to the appropriation bonds,
2.12including but not limited to trust indentures, grant agreements, lease or use agreements,
2.13operating agreements, management agreements, liquidity facilities, remarketing or
2.14dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
2.15reimbursement agreements, indexing agreements, or interest exchange agreements. Any
2.16payments made or received according to the agreement or ancillary arrangement shall be
2.17made from or deposited as provided in the agreement or ancillary arrangement. The
2.18determination of the commissioner included in an interest exchange agreement that the
2.19agreement relates to an appropriation bond shall be conclusive.
2.20(e) The commissioner may enter into written agreements or contracts relating to the
2.21continuing disclosure of information necessary to comply with, or facilitate the issuance
2.22of appropriation bonds in accordance with federal securities laws, rules, and regulations,
2.23including Securities and Exchange Commission rules and regulations in Code of Federal
2.24Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
2.25with purchasers and holders of appropriation bonds set forth in the order or resolution
2.26authorizing the issuance of the appropriation bonds, or a separate document authorized
2.27by the order or resolution.
2.28(f) The appropriation bonds are not subject to chapter 16C.
2.29EFFECTIVE DATE.This section is effective the day following final enactment.
2.30 Sec. 2. Minnesota Statutes 2012, section 473J.11, subdivision 4, is amended to read:
2.31 Subd. 4. Cost overruns, savings. (a) Within the limits of paragraph (b), the
2.32authority may accept financial obligations relating to cost overruns associated with
2.33acquisition of the stadium site, stadium infrastructure, and stadium design, development,
2.34and construction, provided that the authority shall bid project construction in a manner
2.35that any cost overruns are the responsibility of the successful bidder and not the authority
3.1or the state. The authority shall not accept responsibility for cost overruns and shall not
3.2be responsible for cost overruns if the authority has authorized the NFL team to provide
3.3for management of construction of the stadium under subdivision 1. Cost savings or
3.4additional funds obtained by the authority or the NFL team for the stadium or stadium
3.5infrastructure may be used first to fund additional stadium or stadium infrastructure, as
3.6agreed to by the authority and the NFL team, if any, and then to fund capital reserves.
3.7 (b) The state share of stadium costs shall be limited to
3.8 for construction of a new stadium, as permitted under section
3.9Minneapolis share shall be limited to no more than a $150,000,000 contribution for
3.10construction, and the annual operating cost and capital contributions contained under
3.11section
3.12EFFECTIVE DATE.This section is effective the day following final enactment.
3.13 Sec. 3. STADIUM TRANSITION.
3.14The Minnesota Stadium Authority shall modify the design and construction plans
3.15to adjust for the reduction of state funding under this act through negotiations with the
3.16football team. The adjustments may include additional private funding, or a reduction in
3.17the size and scope of the proposed stadium, as agreed to by the authority and team.
3.18EFFECTIVE DATE.This section is effective the day following final enactment.
