SB209: Bill Text Engrossed

SB209-engrossed,16,3 229.41 (11e) "Sports and entertainment arena" means the arena structure and the land necessary for its location that is used as the home arena of a professional basketball team and for other sports, recreation, and entertainment activities.

SB209-engrossed,56 Section 56. 229.41 (11g) of the statutes is created to read:

SB209-engrossed,16,17 229.41 (11g) "Sports and entertainment arena facilities" means the sports and entertainment arena and structures, including all fixtures, equipment, and tangible personal property that are used primarily to support the operation of the sports and entertainment arena or are functionally related to the sports and entertainment arena, located on land not to exceed 9 contiguous acres in area. Such sports and entertainment arena facilities shall include such land and may include offices of the professional basketball team or its affiliate, parking spaces and garages, storage or loading facilities, access ways, sidewalks, a skywalk, plazas, transportation facilities, and sports team stores located on such land. In addition, "sports and entertainment arena facilities" also includes a parking structure to be constructed by a professional basketball team or its affiliate in conjunction with the construction of the sports and entertainment arena and to be owned by the sponsoring municipality.

SB209-engrossed,57 Section 57. 229.41 (12) of the statutes is amended to read:

SB209-engrossed,17,2 229.41 (12) "Transfer agreement" means the contract between a district and a sponsoring municipality under s. 229.47 (1), or a contract between a district and the Bradley Center Sports and Entertainment Corporation under s. 229.47 (2), that provides the terms and conditions upon which the ownership and operation of an exposition center and exposition center facilities are or ownership of the Bradley Center or any part of the center, including real property, is transferred from a sponsoring municipality or the Bradley Center Sports and Entertainment Corporation to the district.

SB209-engrossed,58 Section 58. 229.42 (4) (intro.) of the statutes is amended to read:

SB209-engrossed,17,6 229.42 (4) (intro.) If Subject to sub. (4e), if the sole sponsoring municipality is a 1st class city, the board of directors shall consist of 15 17 members, who shall be qualified and appointed, subject to sub. (7) (b), as follows:

SB209-engrossed,59 Section 59. 229.42 (4) (d) of the statutes is amended to read:

SB209-engrossed,17,22 229.42 (4) (d) Three members, 2 of whom shall be primarily employees or officers of a private sector entity, shall be appointed by the county executive of the most populous county in which the sponsoring municipality is located and the 2 private sector entity members shall reside in the county but may not reside in the sponsoring municipality. The 3rd member shall be the chief executive officer of a municipality that contributes a minimum of five-fourteenths of its room tax to an entity which promotes tourism and conventions within the jurisdiction of the district, as that term is used in s. 229.43, except that if no municipality makes this minimum contribution the 3rd member shall be a resident of the district. The room tax contribution shall be at least $150,000 each year. The chief executive officer appointed under this paragraph shall serve a term that expires 2 years after his or her appointment, or shall serve until the expiration of his or her term of elective office, whichever occurs first. This paragraph does not apply, and no appointments may be made under this paragraph, after the secretary of administration issues the certification described in sub. (4e) (d).

SB209-engrossed,60 Section 60. 229.42 (4) (e) of the statutes is amended to read:

SB209-engrossed,18,14 229.42 (4) (e) Four members, one of whom shall be the secretary of administration, or the secretary's designee, and 3 of whom shall be primarily employees or officers of a private sector entity, who shall be appointed by the governor. Of the 3 members who are officers or employees of a private sector entity, at least one of the appointees shall own, operate or manage an enterprise that is located within the district's jurisdiction and that has significant involvement with the food and beverage industry and at least one of the appointees shall own, operate or manage an enterprise that is located within the district's jurisdiction and that has significant involvement with the lodging industry. At least 2 of the appointees under this paragraph shall reside in the district's jurisdiction but may not reside in the sponsoring municipality. Upon the secretary of administration issuing the certification described in sub. (4e) (d), the secretary may continue to serve on the board of directors or may select a designee to serve in his or her place, and the 3 members previously appointed by the governor under this paragraph shall be appointed by the county executive of the most populous county in which the sponsoring municipality is located, subject to the other provisions of this paragraph.

SB209-engrossed,61 Section 61. 229.42 (4) (f) of the statutes is renumbered 229.42 (4) (f) 1. and amended to read:

SB209-engrossed,18,21 229.42 (4) (f) 1. Two members, each of whom shall be a cochairperson of the joint committee on finance one of whom shall be the speaker of the assembly, or his or her designee, and one of whom shall be the senate majority leader, or his or her designee, if the designee is a member of the same house of the legislature as the cochairperson speaker or majority leader who makes the designation.

SB209-engrossed,61e Section 61e. 229.42 (4) (f) 2. of the statutes is created to read:

SB209-engrossed,19,2 229.42 (4) (f) 2. Two members, one of whom shall be the minority leader of the assembly, or his or her designee, and one of whom shall be the senate minority leader, or his or her designee, if the designee is a member of the same house of the legislature as the minority leader who makes the designation.

SB209-engrossed,62 Section 62. 229.42 (4) (g) of the statutes is created to read:

SB209-engrossed,19,5 229.42 (4) (g) Upon the secretary of administration issuing the certification described in sub. (4e) (d):

SB209-engrossed,19,13 1. One member who shall be appointed by the county executive of the most populous county in which the sponsoring municipality is located and who shall be either primarily an employee or officer of a private sector entity. The appointee shall own, operate, or manage an enterprise that is located within the district's jurisdiction and that has either significant involvement with the food and beverage industry or significant involvement with the lodging industry. The appointee under this subdivision shall reside in the district's jurisdiction but may not reside in the sponsoring municipality.

SB209-engrossed,19,23 2. One member who shall be appointed by the county executive of the most populous county in which the sponsoring municipality is located and who is the chief executive officer, or his or her designee, of a municipality that contributes a minimum of five-fourteenths of its room tax to an entity that promotes tourism and conventions within the jurisdiction of the district, as that term is used in s. 229.43. If no municipality makes this minimum contribution, the county executive shall appoint an additional member who shall be a resident of the district. The room tax contribution shall be at least $150,000 each year. The chief executive officer described under this subdivision shall serve a term that is concurrent with his or her term of elective office.

SB209-engrossed,63 Section 63. 229.42 (4) (h) of the statutes is created to read:

SB209-engrossed,20,5 229.42 (4) (h) Upon the secretary of administration issuing the certification described in sub. (4e) (d), one member shall be the comptroller of the most populous county in which the sponsoring municipality is located, except that if that county does not have a comptroller, one member shall be the chief financial officer of the most populous county in which the sponsoring municipality is located.

SB209-engrossed,64 Section 64. 229.42 (4e) of the statutes is created to read:

SB209-engrossed,20,12 229.42 (4e) (a) With regard to a district that exists on the effective date of this paragraph .... [LRB inserts date], notwithstanding the provisions of subs. (4) (a) to (f) and (7) (b), the terms of office of all members of the board of directors shall expire on the effective date of this paragraph .... [LRB inserts date], except that the secretary of administration shall continue as a board member and he or she shall become chairperson of the board of directors, notwithstanding sub. (8).

SB209-engrossed,20,19 (b) Not later than 30 days after the effective date of this paragraph .... [LRB inserts date], each appointing authority under sub. (4) (a) to (e) shall appoint and certify new members of the board of directors as provided in sub. (4) and s. 229.435, except that the secretary of administration who continues in office as provided in par. (a) need not be reappointed under sub. (4) (e). The members described in sub. (4) (c) and (f) shall become members of the board of directors on the effective date of this paragraph .... [LRB inserts date].

SB209-engrossed,20,21 (c) Notwithstanding the provisions of sub. (3), the secretary of administration may act before all board members appointed as provided in par. (b) are certified.

SB209-engrossed,21,4 (d) The secretary of administration shall serve as chairperson of the board of directors until the secretary certifies that a sports and entertainment arena, the construction of which commences on or after the effective date of this paragraph .... [LRB inserts date], is completed. The secretary of administration shall make the certification described under this paragraph as soon as he or she determines that the sports and entertainment arena is completed, but not later than the first game played in the sports and entertainment arena by the professional basketball team that uses the arena as its home arena.

SB209-engrossed,21,6 (e) The terms of board members appointed under par. (b) shall expire or terminate upon the earliest occurrence of one of the following:

SB209-engrossed,21,7 1. Two years after the member is certified under s. 229.435.

SB209-engrossed,21,8 2. The secretary of administration makes the certification described in par. (d).

SB209-engrossed,21,9 3. One of the provisions described in sub. (7) (b) 2. or 3. occurs.

SB209-engrossed,21,20 (f) Upon the secretary of administration issuing the certification described in par. (d), which shall cause the expiration or termination of the terms of all board members as provided in this subsection, each appointing authority under sub. (4) shall appoint and certify new members of the board of directors, as provided in sub. (4) and s. 229.435, not later than 30 days after the secretary issues the certification. The secretary of administration or the secretary's designee, and the persons described in sub. (4) (c), (f), and (h), are considered to be certified upon the secretary issuing the certification described in par. (d). A board of directors consisting of members whose appointments are described under this paragraph may not take any action until a majority of board members so appointed are certified. No individual appointive board member may act until he or she is appointed and certified.

SB209-engrossed,65 Section 65. 229.42 (7) (b) 1m. of the statutes is created to read:

SB209-engrossed,22,10 229.42 (7) (b) 1m. Subject to subds. 2. and 3. and sub. (4) (g), the terms of office of the members of the board of directors shall be 3 years, except that for the initial appointments that occur following the secretary of administration issuing the certification described in sub. (4e) (d), 3 of the appointments shall be for one year, 3 appointments shall be for 2 years, and 3 appointments shall be for 3 years. The comptroller's appointments shall be for the comptroller's tenure in his or her position. The term of the secretary of administration or his or her designee shall be concurrent with the secretary's term in office, and the terms of the persons described in sub. (4) (f) shall be their terms in office or the term of the person who designated the board members under sub. (4) (f). The length of the initial terms shall be determined jointly by the secretary of administration and the county executive of the most populous county in which the sponsoring municipality is located. With regard to appointed board members to whom this subdivision applies, no individual may serve on the board of directors for more than 6 years.

SB209-engrossed,66 Section 66. 229.435 of the statutes is amended to read:

SB209-engrossed,22,20 229.435 Certification of board members. Within 30 days after a sponsoring municipality files an enabling resolution under s. 229.42 (1) (b), following the expiration of terms as described in s. 229.42 (4e) (a), and upon the secretary of administration issuing the certification described in s. 229.42 (4e) (d), each person who may appoint members to a board of directors under s. 229.42 (4), (5) or (6) shall certify to the department of administration the names of the persons appointed to the board of directors under s. 229.42 (5) or (6) or, if the sole sponsoring municipality is a 1st class city, the names of the persons appointed to the board of directors under s. 229.42 (4).

SB209-engrossed,67 Section 67. 229.44 (4) (intro.) of the statutes is amended to read:

SB209-engrossed,22,24 229.44 (4) (intro.) Do any of the following in connection with an exposition center and exposition center facilities and sports and entertainment arena and sports and entertainment arena facilities:

SB209-engrossed,68 Section 68. 229.44 (4) (a) of the statutes is amended to read:

SB209-engrossed,23,11 229.44 (4) (a) Acquire, construct, equip, maintain, improve, operate and manage the exposition center and exposition center facilities, or engage other persons to do these things. Acquire, construct, and equip the sports and entertainment arena and sports and entertainment arena facilities, or engage other persons to do these things. If the professional basketball team or its affiliate breaches the non-relocation agreement or lease under s. 229.461, the district may equip, maintain, improve, operate, and manage the sports and entertainment arena and sports and entertainment arena facilities, or engage other persons to do these things, but only from moneys received from the parent company of the professional basketball team, the professional basketball team, or its affiliate resulting from the breach of the non-relocation agreement or lease.

SB209-engrossed,69 Section 69. 229.44 (4) (b) of the statutes is amended to read:

SB209-engrossed,23,16 229.44 (4) (b) Acquire, lease, use or transfer; lease, as lessor or lessee; use; or transfer or accept transfers of property. With the approval of all sponsoring municipalities of the district, the district may acquire property by condemnation using the procedure under s. 32.05 or 32.06.

SB209-engrossed,70 Section 70. 229.44 (4) (c) of the statutes is amended to read:

SB209-engrossed,23,24 229.44 (4) (c) Improve, maintain, and repair real property, except that the district may only improve, maintain, and repair the sports and entertainment arena facilities, or engage other persons to do these things, if the professional basketball team or its affiliate breaches the non-relocation agreement or lease under s. 229.461 and only from moneys received from the parent company of the professional basketball team, the professional basketball team, or its affiliate resulting from the breach of the non-relocation agreement or lease.

SB209-engrossed,71 Section 71. 229.44 (4) (d) of the statutes is amended to read:

SB209-engrossed,24,5 229.44 (4) (d) Enter into contracts. All Except as provided in s. 229.461, all contracts, the estimated costs of which exceed $30,000 $100,000, except contracts subject to s. 229.46 (5) and contracts for personal or professional services, shall be subject to bid and shall be awarded to the lowest qualified and competent bidder. The district may reject any bid that is submitted under this paragraph.

SB209-engrossed,72 Section 72. 229.44 (4) (f) of the statutes is created to read:

SB209-engrossed,24,7 229.44 (4) (f) Sell or otherwise dispose of unneeded or unwanted property.

SB209-engrossed,73 Section 73. 229.44 (5) of the statutes is amended to read:

SB209-engrossed,24,12 229.44 (5) Employ personnel, and fix and regulate their compensation; and provide, either directly or subject to an agreement under s. 66.0301 or 229.47 (1) as a participant in a benefit plan of another governmental entity, any employee benefits, including an employee pension plan.

SB209-engrossed,74 Section 74. 229.44 (6) of the statutes is amended to read:

SB209-engrossed,24,17 229.44 (6) Purchase insurance, establish and administer a plan of self-insurance or, subject to an agreement with another governmental entity under s. 66.0301 or 229.47 (1), participate in a governmental plan of insurance or self-insurance.

SB209-engrossed,74e Section 74e. 229.445 of the statutes is created to read:

SB209-engrossed,24,25 229.445 Ticket surcharge. The board of directors shall require the sponsor of an event held at a sports and entertainment arena to impose a $2 surcharge on each ticket that is sold to the event. The event sponsor shall forward to the board of directors any surcharges collected under this section. The board of directors shall submit 25 percent of the amount received under this section to the department of administration for deposit into the general fund and shall retain the remainder for the district.

SB209-engrossed,75 Section 75. 229.461 of the statutes is created to read:

SB209-engrossed,25,13 229.461 Development agreement, non-relocation agreement, lease. (1) A district shall enter into a development agreement with a professional basketball team or its affiliate to require the professional basketball team or affiliate to develop and construct sports and entertainment arena facilities that will be financed in part by the district and, subject to sub. (3) (d), leased to the professional basketball team or its affiliate as provided in this subchapter. Before a district may sign the development agreement, the secretary of administration shall certify that the professional basketball team or its affiliate has agreed to fund at least $250,000,000 to the development and construction of the sports and entertainment arena facilities. In addition, the professional basketball team or its affiliate must have entered into the non-relocation agreement under sub. (2) before the district may sign the development agreement.

SB209-engrossed,25,22 (2) In consideration of the district, this state, a sponsoring municipality, and the most populous county in which the sponsoring municipality is located promising to commit $250,000,000 of financial assistance to the development and construction of the sports and entertainment arena facilities and granting a professional basketball team, or its affiliate, the right to operate and manage the sports and entertainment arena facilities, the professional basketball team shall enter into a non-relocation agreement with the district, before it or its affiliate enters into a development agreement with the district under sub. (1), that contains all of the following provisions and commitments during the term of the lease:

SB209-engrossed,25,24 (a) The professional basketball team shall play substantially all of its home games at the sports and entertainment arena, once it is constructed.

SB209-engrossed,26,2 (b) The professional basketball team shall maintain its membership in the National Basketball Association or a successor league.

SB209-engrossed,26,4 (c) The professional basketball team shall maintain its headquarters in this state.

SB209-engrossed,26,6 (d) The professional basketball team shall maintain in its official team name the name of the sponsoring municipality.

SB209-engrossed,26,8 (e) The professional basketball team shall not relocate to another political subdivision during the term of the lease.

SB209-engrossed,26,13 (f) If the professional basketball team is sold or ownership is transferred to another person, the professional basketball team shall ensure that any person who acquires the professional basketball team, including upon foreclosure, commits to acquire the professional basketball team subject to the team's obligations under the non-relocation agreement.

SB209-engrossed,26,18 (g) During the last 5 years of the original 30-year lease, and during any 5-year extension of the lease, the professional basketball team may negotiate, and enter into agreements, with 3rd parties regarding the professional basketball team playing its home games at a site different from the site to which the lease applies after the conclusion of the lease.

SB209-engrossed,26,20 (3) The lease between the district and the professional basketball team or its affiliate shall contain at least all of the following:

SB209-engrossed,26,22 (a) The term of the lease shall be for 30 years, plus 2 extensions of 5 years each, both extensions at the professional basketball team's or its affiliate's option.

SB209-engrossed,27,7 (b) The lease shall contain provisions concerning the transfer of the Bradley Center and the land on which it is located from the district to the professional basketball team or its affiliate and, following that transfer, subsequent demolition of the Bradley Center arena structure, consistent with s. 229.47 (2) (c). The district shall convey fee title to the professional basketball team or its affiliate free and clear of all liens, encumbrances, and obligations, except for easements or similar restrictions that do not include a monetary component. Provided that the Bradley Center arena structure is transferred as provided under this paragraph, the lease shall require the professional basketball team or its affiliate to pay for all costs related to the demolition of the Bradley Center arena structure.

SB209-engrossed,27,23 (c) The professional basketball team or its affiliate shall be responsible for equipping, maintaining, operating, improving, and repairing sports and entertainment arena facilities that are constructed pursuant to a development agreement entered into under sub. (1). If the professional basketball team or its affiliate breaches the development agreement or non-relocation agreement, the parent company of the professional basketball team shall be jointly and severally responsible with the professional basketball team or its affiliate for the costs of equipping, maintaining, operating, and repairing the sports and entertainment arena facilities during the term of the lease. In addition, the professional basketball team or its affiliate shall be entitled to receive all revenues, other than surcharges collected under s. 229.445, related to the operation or use of the sports and entertainment arena facilities, including, but not limited to, ticket revenues, licensing or user fees, sponsorship revenues, revenues generated from events that are held on the plaza that is part of the sports and entertainment arena facilities, revenues from the sale of food, beverages, merchandise, and parking, and revenues from naming rights.

SB209-engrossed,28,3 (d) The lease shall allow for a separate agreement between the sponsoring municipality and the professional basketball team or its affiliate that addresses the development and construction, leasing, operation, maintenance, and repair of a parking structure constructed as part of the sports and entertainment arena facilities and the ownership of and revenues from the parking structure.

SB209-engrossed,28,5 (4) (a) If the professional basketball team or its affiliate breaches the lease, the district may enforce the lease.

SB209-engrossed,28,10 (b) If the professional basketball team or its affiliate breaches the non-relocation agreement, the state, the district, the sponsoring municipality, and the most populous county in which the sponsoring municipality is located may act individually or collectively to enforce the non-relocation agreement and, if they prevail, are entitled to all of the following:

SB209-engrossed,28,11 1. Injunctive relief.

SB209-engrossed,28,17 2. a. Liquidated damages from the parent company of the professional basketball team, the professional basketball team, or its affiliate in an amount equal to the outstanding balance of principal and accrued unpaid interest remaining on any debt issued or incurred by the district, this state, a sponsoring municipality, and the most populous county in which the sponsoring municipality is located for the development and construction of the sports and entertainment arena facilities.

SB209-engrossed,28,23 b. If the professional basketball team or its affiliate, at the time of its breach of the non-relocation agreement, is also in breach of its obligations under the lease to equip, maintain, operate, and repair the sports and entertainment arena facilities, liquidated damages from the parent company of the professional basketball team, the professional basketball team, or its affiliate shall also include an amount equal to the cost of performing these obligations during the term of the lease.

SB209-engrossed,29,3 c. Liquidated damages awarded under this subdivision shall be apportioned among the district, this state, a sponsoring municipality, and the most populous county in which the sponsoring municipality is located in proportion to that entity's financial contributions towards the development and construction of the sports and entertainment arena facilities.

SB209-engrossed,29,10 (5) The secretary of administration, in his or her capacity as chairperson of the board of directors, shall negotiate the development agreement, the lease, and the non-relocation agreement under this section on behalf of the district and may enter into any such development agreement, non-relocation agreement, or lease without the approval of the board of directors. Any subsequent amendments to, or renewal or extensions of, the development agreement, the non-relocation agreement, or the lease shall require the approval of the board of directors.

SB209-engrossed,76 Section 76. 229.47 of the statutes is renumbered 229.47 (1).

SB209-engrossed,77 Section 77. 229.47 (2) of the statutes is created to read:

SB209-engrossed,29,17 229.47 (2) (a) Subject to s. 232.05 (3) (a), a district shall enter into one or more transfer agreements with the Bradley Center Sports and Entertainment Corporation regarding the transfer of the Bradley Center or any part of the center, including land that cannot be transferred under par. (b). Any such transfer shall be for nominal financial consideration.

SB209-engrossed,29,25 (b) Following execution of a lease under s. 229.461 (3) and forgiveness by the professional basketball team of any outstanding debt owed to the professional basketball team by the Bradley Center Sports and Entertainment Corporation, the Bradley Center Sports and Entertainment Corporation shall transfer to the district the land described in s. 229.41 (11e) that is owned by the Bradley Center Sports and Entertainment Corporation. The transfer shall occur pursuant to transfer agreements and a parcel transfer schedule certified by the secretary of administration.

SB209-engrossed,30,4 (c) A transfer agreement shall specify that demolition of the Bradley Center will commence not later than 180 days after the center is transferred to the district, as described in s. 232.05 (2) (h) and that the Bradley Center parking structure may continue to exist and operate.

SB209-engrossed,78 Section 78. 229.477 of the statutes is amended to read:

SB209-engrossed,30,20 229.477 Dissolution of a district. Subject to providing for the payment of its bonds, including interest on the bonds, and the performance of its other contractual obligations, a district may be dissolved by the joint action of the district's board of directors and sponsoring municipality. If the district is dissolved, the property of the district that does not include sports and entertainment arena facilities shall be transferred to its sponsoring municipality. Subject to the terms of any lease under s. 229.461 (3), the property of the district that does include sports and entertainment arena facilities shall be transferred to the local units of government that compose the district's jurisdiction in such proportions as the secretary of administration determines fairly and reasonably represent the contributions of each local unit of government to the development, construction, operation, maintenance, or improvement of the property that contains sports and entertainment arena facilities. If the district was created by more than one sponsoring municipality, the municipalities shall agree on the apportioning of the district's property before the district may be dissolved.

SB209-engrossed,79 Section 79. 229.48 (1) (intro.) of the statutes is amended to read:

SB209-engrossed,30,25 229.48 (1) (intro.) A district may issue bonds for costs and purposes that are related to an exposition center or an exposition center facility or sports and entertainment arena or sports and entertainment arena facilities, including all of the following:

SB209-engrossed,80 Section 80. 229.48 (1) (a) of the statutes is amended to read:

SB209-engrossed,31,5 229.48 (1) (a) Costs of acquiring, constructing, equipping, maintaining or improving an exposition center or an exposition center facility or initially developing and constructing a sports and entertainment arena or sports and entertainment arena facilities.

SB209-engrossed,81 Section 81. 229.48 (1) (b) of the statutes is amended to read:

SB209-engrossed,31,8 229.48 (1) (b) Costs of acquiring or improving an exposition center site or sports and entertainment arena facilities site.

SB209-engrossed,82 Section 82. 229.48 (1) (c) of the statutes is amended to read: