2005 Minnesota Statutes - 473I.04 — Sports facilities fund.

     473I.04 Sports facilities fund. 


    Subdivision 1.    Creation.  The sports facilities fund 
 is established as a special account in the state treasury.  


    Subd. 2.    Baseball park revenue bond proceeds account. 
  A baseball park revenue bond proceeds account is established 
 in the sports facilities fund.  The proceeds of any bonds issued 
 under section 473I.06 must be credited to the account.  The 
 amount necessary to make the loan under section 473I.05 is 
 appropriated from the account to the commissioner.  


    Subd. 3.    Baseball park debt service account.  (a) A 
 baseball park debt service account is established in the sports 
 facilities fund.  The assets of the account and its investment 
 earnings are pledged to and may only be used to pay principal 
 and interest on bonds issued under section 473I.06. 


    (b) The State Board of Investment shall contract with the 
 investment advisors specified by the team to invest money in the 
 endowment account.  The account must be invested in authorized 
 investments under section 11A.24, except (1) corporate 
 obligations described in section 11A.24, subdivision 3, 
 paragraph (b), and (2) investments described in section 11A.24, 
 subdivision 6, paragraph (a), clauses (1) to (4).  


    (c) The commissioner shall review the investment 
 performance of the account at the end of the second year after 
 the baseball park begins operations and every four years 
 thereafter.  The commissioner shall require the owner of the 
 baseball park to impose a surcharge on admissions to events at 
 the baseball park, in one-half of one percent increments, not to 
 exceed five percent, in an amount sufficient to equal the money 
 that would be in the fund, if an 8.5 percent annual rate of 
 return had been earned.  Notwithstanding the preceding sentence, 
 the commissioner shall set the required rate of return for the 
 first four years after the account is established.  If the rate 
 of return on the fund during the period exceeded 8.5 percent, 
 the commissioner may use the excess to retire or defease the 
 bonds.  In making the determination under this paragraph, the 
 commissioner must assume that the municipality has timely made 
 all payments required under the loan agreement, regardless of 
 whether the payments were made.  


    (d) In addition, the commissioner may require, as part of 
 the loan agreement, that the municipality exercise its authority 
 under section 473I.07 to provide money to the commissioner to 
 make up any deficiency that is not eliminated under paragraph 
 (c).  The municipality may recover from the team any payments 
 made under this paragraph. 


    (e) Money in the debt service account is appropriated to 
 the commissioner to pay principal and interest on bonds issued 
 under section 473I.06. 


    HIST: 2002 c 397 s 8