Read the full stored bill text
A bill for an act
relating to capital investment; appropriating money for event venue capital
improvements; authorizing the sale and issuance of state appropriation bonds;
proposing coding for new law in Minnesota Statutes, chapter 16A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[16A.9691] EVENT VENUES APPROPRIATION BONDS.
new text end
new text begin
Subdivision 1.
new text end
new text begin
Definitions.
new text end
new text begin
(a) The definitions in this subdivision apply to this section.
new text end
new text begin
(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of
the state payable during a biennium from one or more of the following sources:
new text end
new text begin
(1) money appropriated by law from the general fund in any biennium for debt service
due with respect to obligations described in subdivision 2, paragraph (a);
new text end
new text begin
(2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);
new text end
new text begin
(3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (d); and
new text end
new text begin
(4) investment earnings on amounts in clauses (1) to (3).
new text end
new text begin
(c) "Debt service" means the amount payable in any biennium of principal, premium, if
any, and interest on appropriation bonds, and the fees, charges, and expenses related to the
bonds.
new text end
new text begin
(d) "Event venue capital improvements" means the following improvements and
betterments of a capital nature at one or more event venues: renovation, expansion, and
reconfiguration of interior and exterior event venue space; safety and accessibility
improvements; improvements to space for the loading, unloading, and storage of goods and
equipment; improvements to preserve or replace HVAC, security, electrical, mechanical,
and plumbing systems; renovation of performer and athlete spaces, including locker rooms,
dressing rooms, and other support spaces; upgrades to restrooms, seating, concessions, and
other visitor spaces; electronic signage, connectivity, and acoustic system upgrades; and
other site renovations and improvements to support ongoing operations.
new text end
new text begin
(e) "Event venues" means the RiverCentre arena, RiverCentre complex, and Roy Wilkins
Auditorium, located in downtown St. Paul.
new text end
new text begin
Subd. 2.
new text end
new text begin
Authorization to issue appropriation bonds.
new text end
new text begin
(a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law, including for the purposes of financing
the cost of design, construction, renovation, furnishing, and equipping event venue capital
improvements. Appropriation bonds may be sold and issued in amounts that, in the opinion
of the commissioner, are necessary to provide sufficient money to the commissioner of
administration under subdivision 7, not to exceed $100,000,000 net of costs of issuance,
for the purposes as provided under this subdivision, and to pay debt service including
capitalized interest, costs of issuance, costs of credit enhancement, or make payments under
other agreements entered into under paragraph (d). Of this amount, not more than 62.5
percent may be used for the RiverCentre Arena.
new text end
new text begin
(b) Proceeds of the appropriation bonds must be credited to a special appropriation event
venues bond proceeds fund in the state treasury. All income from investment of the bond
proceeds, as estimated by the commissioner, is appropriated to the commissioner for the
payment of principal and interest on the appropriation bonds.
new text end
new text begin
(c) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 30 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest, and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.
new text end
new text begin
(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time
thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter
into agreements and ancillary arrangements relating to the appropriation bonds, including
but not limited to trust indentures, grant agreements, lease or use agreements, operating
agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
letter of credit agreements, standby bond purchase agreements, insurance policies, guaranty
agreements, reimbursement agreements, indexing agreements, or interest exchange
agreements. Any payments made or received according to the agreement or ancillary
arrangement shall be made from or deposited as provided in the agreement or ancillary
arrangement. The determination of the commissioner, included in an interest exchange
agreement, that the agreement relates to an appropriation bond, shall be conclusive.
new text end
new text begin
(e) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance of
appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized by
the order or resolution.
new text end
new text begin
(f) The appropriation bonds are not subject to chapter 16C.
new text end
new text begin
Subd. 3.
new text end
new text begin
Form; procedure.
new text end
new text begin
(a) Appropriation bonds may be issued in the form of bonds,
notes, or other similar instruments, and in the manner provided in section 16A.672. In the
event that any provision of section 16A.672 conflicts with this section, this section shall
control.
new text end
new text begin
(b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 6.
new text end
new text begin
(c) Appropriation bonds may be sold at either public or private sale upon such terms as
the commissioner shall determine are not inconsistent with this section and may be sold at
any price or percentage of par value. Any bid received may be rejected.
new text end
new text begin
(d) Appropriation bonds must bear interest at a fixed or variable rate.
new text end
new text begin
(e) Notwithstanding any other law, appropriation bonds issued under this section shall
be fully negotiable.
new text end
new text begin
Subd. 4.
new text end
new text begin
Refunding bonds.
new text end
new text begin
The commissioner may issue appropriation bonds for the
purpose of refunding any appropriation bonds then outstanding, including the payment of
any redemption premiums on the bonds, any interest accrued or to accrue to the redemption
date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any
refunding bonds may, at the discretion of the commissioner, be applied to the purchase or
payment at maturity of the appropriation bonds to be refunded, to the redemption of the
outstanding appropriation bonds on any redemption date, or to pay interest on the refunding
bonds and may, pending application, be placed in escrow to be applied to the purchase,
payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be
invested and reinvested in obligations that are authorized investments under section 11A.24.
The income earned or realized on the investment may also be applied to the payment of the
appropriation bonds to be refunded or interest or premiums on the refunded appropriation
bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been
fully satisfied, any balance of the proceeds and any investment income may be returned to
the general fund or, if applicable, the special appropriation event venues bond proceeds
fund for use in any lawful manner. All refunding bonds issued under this subdivision must
be prepared, executed, delivered, and secured by appropriations in the same manner as the
appropriation bonds to be refunded.
new text end
new text begin
Subd. 5.
new text end
new text begin
Appropriation bonds as legal investments.
new text end
new text begin
Any of the following entities may
legally invest any sinking funds, money, or other funds belonging to them or under their
control in any appropriation bonds issued under this section:
new text end
new text begin
(1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;
new text end
new text begin
(2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and
new text end
new text begin
(3) personal representatives, guardians, trustees, and other fiduciaries.
new text end
new text begin
Subd. 6.
new text end
new text begin
No full faith and credit; state not required to make appropriations.
new text end
new text begin
The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.
new text end
new text begin
Subd. 7.
new text end
new text begin
Appropriation of proceeds.
new text end
new text begin
The proceeds of appropriation bonds issued under
subdivision 2, paragraph (a), and interest credited to the special appropriation event venues
bond proceeds fund are appropriated as follows:
new text end
new text begin
(1) to the commissioner of employment and economic development for one or more
grants to the city of St. Paul for event venue capital improvements as specified in subdivision
2, paragraph (a); and
new text end
new text begin
(2) to the commissioner for debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and
payments under any agreements entered into under subdivision 2, paragraph (d), as permitted
by state and federal law.
new text end
new text begin
Subd. 8.
new text end
new text begin
Appropriation for debt service and other purposes.
new text end
new text begin
An amount needed to
pay principal and interest on appropriation bonds issued under subdivision 2, paragraph (a),
is appropriated each fiscal year from the general fund to the commissioner, subject to repeal,
unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6,
for deposit into the bond payments account established for such purpose in the special
appropriation event venues bond proceeds fund. The appropriation is available beginning
in fiscal year 2027 and remains available through fiscal year 2057.
new text end
new text begin
Subd. 9.
new text end
new text begin
Waiver of immunity.
new text end
new text begin
The waiver of immunity by the state provided for by
section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
contracts to which the commissioner is a party.
new text end
new text begin
Subd. 10.
new text end
new text begin
RiverCentre Arena; procurement.
new text end
new text begin
(a) For renovation of the RiverCentre
Arena, the construction manager may:
new text end
new text begin
(1) guarantee a maximum cost of renovation; and
new text end
new text begin
(2) provide payment and performance bonds or other security reasonably acceptable to
the city in an amount equal to the guaranteed maximum cost of the renovation, and shall
comply with all employment requirements applicable to other city contracts for construction,
including prevailing wage, affirmative action, and outreach requirements.
new text end
new text begin
(b) The lessee under the arena lease or the construction manager may enter into contracts
with contractors for labor, materials, supplies, and equipment to renovate the existing arena
and may select those contractors through the process of public bidding. The lessee or the
construction manager may, with the consent of the city lease representative as defined in
the arena lease:
new text end
new text begin
(1) limit the list of eligible bidders to those that the construction manager determines
possess sufficient expertise to perform the intended functions;
new text end
new text begin
(2) award contracts to the contractors that the construction manager determines provide
the best value, which may not necessarily be the lowest responsible bidder; and
new text end
new text begin
(3) for work the construction manager determines to be critical to the completion schedule,
the construction manager may award contracts on the basis of competitive proposals or
perform work with its own forces without soliciting competitive bids if the construction
manager provides evidence of competitive pricing.
new text end