TITLE: CONCERNING MODIFICATION OF THE “METROPOLITAN FOOTBALL STADIUM DISTRICT ACT”, AND , IN CONNECTION THEREWITH, ESTABLISHING BIENNIAL DISTRICT ELECTIONS AND MODIFYING THE TERMS OF THE AGREEMENT THAT THE BOARD OF DIRECTORS NEGOTIATES WITH A NATIONAL FOOTBALL LEAGUE FRANCHISE.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Colorado Economic Development Fund	Potential Interest Earnings	Potential Interest Earnings
State Expenditures General Fund Colorado Economic Development Fund	Potential Grants or Loans	Potential Grants or Loans
FTE Position Change	None	None
Local Government Impact — The bill allows the board to provide the counties within the district and the City and County of Denver with a benefit of a portion of the revenues other than sales tax revenues and admissions tax revenues during the time the district is collecting the sales or admissions taxes, or for as long as the board determines to be appropriate. Current law limits the time period to the time during which the district is collecting the sales tax.

This reengrossed bill authorizes the Board of Directors of the Metropolitan Football Stadium District to enter into an agreement with the franchise requiring the franchise to pay an amount not to exceed $100 million to renovate Mile High Stadium or to construct a new multi-purpose stadium with a retractable roof. The bill also stipulates the board shall not be prohibited from receiving public moneys from the Economic Development Commission paid from the Colorado Economic Development Fund.

The bill repeals the board’s authority to require the franchise to pay for all costs of renovation or construction that exceed the maximum amount of the special obligation bonds issued by the district, or at least 25 percent of the costs of renovation or construction, whichever is greater. The bill also repeals the board’s authority to require the franchise to pay for costs of renovation or construction in excess of the maximum amount paid by the district; including, but not limited to, cost overruns. The bill allows the board to provide the counties within the district and the City and County of Denver with a benefit of a portion of the revenues other than sales tax revenues and admissions tax revenues during the time the district is collecting the sales or admissions taxes, or for as long as the board determines to be appropriate.

The bill requires the board, when designing and constructing a new stadium, to arrange for the provision of mass transit to serve the stadium with the Regional Transportation District.

The bill authorizes the board to contract to borrow money for the purpose of issuing bond participation notes, and to refinance obligations even if such refinancing is at a higher interest rate. The bill authorizes the board to levy and collect a tax upon admissions to a new stadium. The bill requires the vendor to be responsible for collection of the tax, and the district to be responsible for the assessment, enforcement, and administration of the admissions tax. The bill specifies that the proceeds from the sale, or lease, of the stadium name, images, or trademarks shall be used first to pay for the expenses of the construction of the retractable roof.

The bill requires the board to submit to the registered electors at the 1998 General Election, among others, the questions of whether the district shall be authorized to:

• 1) incur multiple-fiscal year financial obligations to be repaid from other multiple-fiscal year financial obligations of the district, and to refinance the bond anticipation notes and special obligation bonds without further approval of the voters even if such refinancing is at a higher interest rate; and

• 2) levy and collect a tax upon admissions to a new stadium for a period not to extend beyond January 1, 2012, and at a rate not to exceed 10 percent upon every purchase of admission to the stadium.

The bill increases the maximum amount of moneys to be raised through the issuance of multiple-fiscal year financial obligations from $180 million to $266 million. The bill allows this amount to be further increased by the amount of any additional cost to construct the retractable roof less the amount of the proceeds from the sale or lease of the name of the stadium. The bill authorizes the payment of the special obligation bonds to be secured by the pledge of sales tax and admissions tax revenues.

The bill requires the district to enter into an agreement with the franchise requiring the franchise to pay for all the election costs of the district. The bill also:

• modifies the ballot language used to submit a question to the registered voters of the district;

• allows the district to modify the ballot language to conform with legal requirements for ballot questions and titles;

• provides that the district shall not be required to sell property if the sale would adversely affect the federal exempt status of the interest on the special obligation bonds;

• requires the franchise and its successors and assigns to conduct its home season schedule and any home play-off events in the stadium for a minimum of 20 years;

• requires the franchise, upon sale of the franchise, to pay a “sharing amount” to the district to be used for youth activity programs;

• provides a time period for the affairs of the district to be concluded prior to the repeal of the act if the question submitted to the voters is not approved; and

The reengrossed bill may affect state expenditures, and revenue and expenditures of the Metropolitan Football Stadium District. Some of the provisions of the bill are subject to a vote of the registered electors of the district. Therefore, the bill is assessed as having a state and statutory public entity conditional fiscal impact.

This bill allows the Metropolitan Football Stadium District to receive state funds from the Colorado Economic Development Fund under the authority of the Economic Development Commission in the Department of Local Affairs. Under current law the commission is authorized to loan or grant moneys from the fund to public or private persons or entities. These loans or grants are not subject to appropriation by the General Assembly. Any interest earned from loans is to be credited to a special revolving account within the fund. The amounts of these loans or grants to the district are unknown.

The bill allows the board to provide the counties within the district and the City and County of Denver with a benefit of a portion of the revenues other than sales tax revenues and admissions tax revenues during the time the district is collecting the sales or admissions taxes, or for as long as the board determines to be appropriate. Current law limits the time period to the time during which the district is collecting the sales tax.

District revenue. This bill allows the Metropolitan Football Stadium District to receive state funds (grants or loans) from the Colorado Economic Development Fund under the authority of the Economic Development Commission in the Department of Local Affairs.

The bill allows the district to levy and collect a tax upon admissions to a new stadium for a period not to extend beyond January 1, 2012, and at a rate not to exceed 10 percent upon every purchase of admission to the stadium.

District expenditures. The bill requires the board to enter into an agreement with the franchise requiring the franchise to pay for all costs of the district associated with the election at which the question, as provided in this bill, is submitted to the voters.

The bill authorizes the board to negotiate an agreement with the franchise requiring the franchise to pay an amount not to exceed $100 million for the renovation of Mile High Stadium or the construction of a new multi-purpose stadium with a retractable roof. Under current law, the board is authorized to require the franchise to pay for all costs of renovation or construction that exceed the maximum amount of the special obligation bonds issued by the district, or at least 25 percent of the costs of renovation or construction, whichever is greater. Subsequently, the district may have to incur additional indebtedness to cover the district’s amount of renovation or construction costs that are not covered by the special obligation bonds or the franchise.

The bill allows the board to contract to borrow money to issue bond anticipation notes even if the interest rate for refinancing or refunding bond anticipation notes is at a higher rate. The bill would allow the board to incur multiple-fiscal year financial obligations to be repaid from other multiple-fiscal year financial obligations or the revenues of the district, or both, to refund and refinance the bond anticipation notes and special obligation bonds.

The bill requires the district to be responsible for the assessment, collection, enforcement, and administration of the admissions tax.

This fiscal note would imply that no new state spending authority or appropriations are required for FY 1998-99 to implement the provisions of this reengrossed bill.