State of Illinois
92nd General Assembly
Legislation

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92_HB0474

 
                                              LRB9202774SMdvA

 1        AN ACT in relation to the  Metro-East  Sports  Facilities
 2    Authority.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 1. Short title. This Act  may  be  cited  as  the
 6    Metro-East Sports Facilities Authority Act.

 7        Section 5. Definitions. In this Act:
 8        "Authority"   means   the  Metro-East  Sports  Facilities
 9    Authority.
10        "Facility" means any of the following:
11             (1)  Stadiums, arenas, or other structures  for  the
12        holding   of   athletic  contests  or  events,  including
13        baseball,  football,  and  automobile  racing;   musical,
14        dramatic, and other artistic, or social events.
15             (2)  Practice   fields,   or   other   areas   where
16        professional sports teams may practice or perform.
17        "Facility"  also means the following types of property if
18    that property is  directly  related  to  an  item  listed  in
19    paragraphs (1) or (2) of this definition:
20                  (i)  Offices,  parking lots and garages, access
21             roads, transportation facilities,  restaurants,  and
22             stores.
23                  (ii)  Other recreation areas.
24                  (iii)  Other  property or structures, including
25             all   fixtures,   furnishings,   and   appurtenances
26             normally associated with such facilities.
27        "Loan agreement" means a legally binding contract between
28    the Authority and an owner of a facility, pursuant  to  which
29    the  Authority  agrees  to  make  loans  to the owner for the
30    purpose of (i) constructing, acquiring, operating, repairing,
31    rehabilitating, or managing a facility and the site on  which
 
                            -2-               LRB9202774SMdvA
 1    a  facility  is  or  is to be located, which facility or site
 2    must be located in Madison or  St.  Clair  County,  and  (ii)
 3    infrastructure improvements related to the facility.

 4        Section  10.  Legislative  finding  and  declaration. The
 5    General Assembly finds that  as  a  result  of  deteriorating
 6    infrastructure and sports facilities in the metropolitan area
 7    including  and  surrounding  Madison  and St. Clair counties,
 8    there is a shortage of sports facilities suitable for use  by
 9    professional  sports teams and other musical, theatrical, and
10    other social organizations.
11        It is further found that as a  result  of  the  costs  to
12    repair or replace the infrastructure and facilities, and as a
13    result  of  current high financing costs, the private sector,
14    without the assistance contemplated in this Act, is unable to
15    construct feasibly adequate sports facilities.
16        It is further found that the creation  of  modern  sports
17    facilities  and  the  other  results contemplated by this Act
18    would stimulate economic activity in the State  of  Illinois,
19    including  the creation and maintenance of jobs, the creation
20    of new and lasting infrastructure and other improvements, and
21    the  retention  of  sports  and  entertainment  events   that
22    generate economic activity.
23        It  is  further found that professional sports facilities
24    can be magnets for substantial interstate  tourism  resulting
25    in  increased  retail  sales, hotel and restaurant sales, and
26    entertainment industry sales, all of which increase jobs  and
27    economic growth.

28        Section 15. Authority and Board created.
29        (a)  The   Metro-East   Sports  Facilities  Authority  is
30    created as a political subdivision, unit of local government,
31    body politic, and municipal corporation.
32        (b)  The  governing  and  administrative  powers  of  the
 
                            -3-               LRB9202774SMdvA
 1    Authority shall be vested in a body known as  the  Metro-East
 2    Sports  Facilities  Authority Board.  The Board shall consist
 3    of 8 members:
 4             (1)  A Chair, who shall be appointed by the Governor
 5        subject to the approval  of  the  Chair  of  the  Madison
 6        County Board and the Chair of the St. Clair County Board.
 7             (2)  Three   additional  members  appointed  by  the
 8        Governor.
 9             (3)  Two members  appointed  by  the  Chair  of  the
10        Madison County Board.
11             (4)  Two  members  appointed by the Chair of the St.
12        Clair County Board.
13        All appointments under  subdivisions  (b)(1)  and  (b)(2)
14    shall  be  subject  to  the advice and consent of the Senate,
15    except in the case of temporary appointments as  provided  in
16    Section  20.  No member shall be employed by the State or any
17    political subdivision of the State or by  any  department  or
18    agency  of  the  State  or  any  political subdivision of the
19    State.

20        Section 20. Terms of appointments.
21        (a)  On the effective date of this Act:
22             (1)  The Governor shall appoint  the  Chair  for  an
23        initial  term  expiring July 1, 2004, and 3 other members
24        of the Board for initial terms expiring  July  1  of  the
25        years 2002, 2003, and 2004, respectively.
26             (2)  The  Chair  of  the  Madison County Board shall
27        appoint 2 members of the Board for initial terms expiring
28        July 1 of the years 2002 and 2003, respectively.
29             (3)  The Chair of the St. Clair County  Board  shall
30        appoint 2 members of the Board for initial terms expiring
31        July 1 of the years 2002 and 2003, respectively.
32        (b)  At   the  expiration  of  the  term  of  any  member
33    appointed by the Governor under subdivision (b)(1) or  (b)(2)
 
                            -4-               LRB9202774SMdvA
 1    of  Section  15,  the  Governor  shall  appoint  the member's
 2    successor in the same manner as appointments for the  initial
 3    term.   At the expiration of the term of any member appointed
 4    by the Chair of the Madison County Board or the Chair of  the
 5    St.  Clair  County  Board, the appointing Chair shall appoint
 6    the member's successor in the same manner as appointments for
 7    the initial terms.  All successors shall hold  office  for  a
 8    term  of  3  years  from the first day of July of the year in
 9    which  they  are  appointed,  except  in  the  case   of   an
10    appointment  to  fill  a  vacancy. Each member, including the
11    Chair, shall hold office until the expiration of the member's
12    term and  until  the  member's  successor  is  appointed  and
13    qualified.   Nothing  shall preclude a member or a Chair from
14    serving consecutive terms.
15        (c)  Vacancies for members and for  the  Chair  shall  be
16    filled  in  the  same manner as original appointments for the
17    balance of the unexpired term.

18        Section 25.  Actions of the Authority.
19        (a)  Five members of the Authority  constitute  a  quorum
20    for  the  purpose  of  conducting  business.   Actions of the
21    Authority must receive the affirmative vote  of  at  least  5
22    members.   The Authority shall determine the times and places
23    of its meetings.  The members of the  Authority  shall  serve
24    without compensation for service as a member but are entitled
25    to  reimbursement  of  reasonable  expenses  incurred  in the
26    performance of their official duties.
27        (b)  The Authority shall annually elect a secretary and a
28    treasurer.
29        (c)  An  executive  committee  made  up  of  4   members,
30    comprised of the Chair, one other member who was appointed by
31    the  Governor  under  subdivision  (b)(2)  of Section 15, one
32    member who was appointed by the Chair of the  Madison  County
33    Board,  and  one member who was appointed by the Chair of the
 
                            -5-               LRB9202774SMdvA
 1    St. Clair County Board have  the  authority  to  operate  the
 2    Authority  on  a day-to-day basis, with the powers and duties
 3    determined by the bylaws of the Authority.

 4        Section 30.  Executive  Director.   The  Authority  shall
 5    appoint  an  Executive  Director,  who is the chief executive
 6    officer of the Authority.  In addition to  any  other  duties
 7    set  forth  in  this Act, the Executive Director shall do the
 8    following:
 9             (1)  Direct and supervise the administrative affairs
10        and activities of the Authority, in accordance  with  its
11        rules, regulations, and policies.
12             (2)  Attend meetings of the Authority.
13             (3)  Keep   minutes   of   all  proceedings  of  the
14        Authority.
15             (4)  Approve all accounts  for  salaries,  per  diem
16        payments, and allowable expenses of the Authority and its
17        employees   and  consultants  and  approve  all  expenses
18        incidental to the operation of the Authority.
19             (5)  Report  and   make   recommendations   to   the
20        Authority  on  the  merits  and  status  of  any proposed
21        facility.
22             (6)  Perform  any  other  duty  that  the  Authority
23        requires for carrying out the provisions of this Act.

24        Section 35. Powers.
25        (a)  In addition to the powers  set  forth  elsewhere  in
26    this Act, the Authority may do the following:
27             (1)  Adopt and alter an official seal.
28             (2)  Sue and be sued, plead and be impleaded, all in
29        its  own  name,  and  agree to binding arbitration of any
30        dispute to which it is a party.
31             (3)  Adopt bylaws, rules, and regulations  to  carry
32        out the provisions of this Act.
 
                            -6-               LRB9202774SMdvA
 1             (4)  Maintain  an office or offices at the place the
 2        Authority may designate.
 3             (5)  Employ,  either   as   regular   employees   or
 4        independent    contractors,    consultants,    engineers,
 5        architects,  accountants,  attorneys,  financial experts,
 6        construction  experts  and  personnel,   superintendents,
 7        managers and other professional personnel, and such other
 8        personnel  as  may  be  necessary  in the judgment of the
 9        Authority, and fix their compensation.
10             (6)  Acquire, hold, lease, use, encumber,  transfer,
11        or  dispose  of real and personal property, including the
12        alteration of  or  demolition  of  improvements  to  real
13        estate.
14             (7)  Enter into contracts of any kind.
15             (8)  Enter  into one or more loan agreements with an
16        owner of a facility that conform to the  requirements  of
17        this Act and that may contain provisions as the Authority
18        shall determine, including, without limit: (i) provisions
19        granting  the  owner  the  right and option to extend the
20        term of the loan agreement; (ii) provisions  creating  an
21        assignment  and pledge by the Authority of certain of the
22        Authority's revenues and receipts to  be  received  under
23        this  Act for the benefit of the owner of the facility as
24        further security for performance by the Authority of  its
25        obligations   under   the   loan   agreement;  and  (iii)
26        provisions requiring the establishment of reserves by the
27        Authority or by the owner, or both, as  further  security
28        for the performance of their respective obligations under
29        the loan agreement.
30             (9)  Borrow  money from any source for any corporate
31        purpose, including working capital  for  its  operations,
32        reserve  funds,  or  interest, and to mortgage, pledge or
33        otherwise encumber the property or funds of the Authority
34        and to contract with or engage the services of any person
 
                            -7-               LRB9202774SMdvA
 1        in connection with  any  financing,  including  financial
 2        institutions,  issuers  of letters of credit, or insurers
 3        and enter into reimbursement agreements with this  person
 4        which  may  be secured as if money were borrowed from the
 5        person.
 6             (10)  Receive and accept from any private or  public
 7        source,  contributions,  gifts,  or  grants  of  money or
 8        property.
 9             (11)  Make loans from proceeds  or  funds  otherwise
10        available  to  the  extent  necessary  or  appropriate to
11        accomplish the purposes of the Authority.
12             (12)  Provide for the  insurance  of  any  property,
13        operations,   officers,   agents,  or  employees  of  the
14        Authority against any risk or hazard and provide for  the
15        indemnification  of  its members, employees, contractors,
16        or agents against any and all risks.
17             (13)  Provide relocation assistance and compensation
18        for  landowners  and  tenants  displaced  by   any   land
19        acquisition  by  the  owner  who  has entered into a loan
20        agreement,  including  the  acquisition   of   land   and
21        construction  of  replacement housing on that land as the
22        Authority shall determine.
23             (14)  Exercise  all  the  corporate  powers  granted
24        Illinois corporations under the Business Corporation  Act
25        of   1983,   except   to   the  extent  that  powers  are
26        inconsistent with those of a body politic  and  corporate
27        of the State.
28             (15)  Do all things necessary or convenient to carry
29        out the powers granted by this Act.
30        (b)  The  Authority  may  adopt  rules  pursuant  to  the
31    Illinois  Administrative  Procedure  Act  as are necessary to
32    carry out those powers and duties conferred by this Act.  The
33    Authority may initially adopt, by January 1, 2002, such rules
34    as  emergency  rules  in  accordance  with  the provisions of
 
                            -8-               LRB9202774SMdvA
 1    Section 5-45 of the Illinois  Administrative  Procedure  Act.
 2    For  purposes  of  the Illinois Administrative Procedure Act,
 3    the adoption of the initial rules shall be deemed  to  be  an
 4    emergency  and necessary for the public interest, safety, and
 5    welfare.

 6        Section 40. Duties.
 7        (a)  In addition to the powers  set  forth  elsewhere  in
 8    this  Act,  subject  to  the terms of any agreements with the
 9    holders of the Authority's  evidences  of  indebtedness,  the
10    Authority shall do the following:
11             (1)  Comply  with all zoning, building, and land use
12        controls of the municipality within  which  it  owns  any
13        property.
14             (2)  Enter  into a loan agreement with an owner of a
15        facility  to  finance  the   acquisition,   construction,
16        maintenance,  or  rehabilitation  of  the  facility.  The
17        agreement   shall   contain  appropriate  and  reasonable
18        provisions with  respect  to  termination,  default,  and
19        legal remedies.  The loan may be at below-market interest
20        rates.
21             (3)  Create  and  maintain  a  financial reserve for
22        repair and replacement of capital assets.
23        (b)  In a loan agreement for the construction  of  a  new
24    facility,  in  connection  with  prequalification  of general
25    contractors for construction of the facility,  the  Authority
26    shall   require  that  the  owner  of  the  facility  require
27    submission  of  a  commitment  detailing  how   the   general
28    contractor will expend 25% or more of the dollar value of the
29    general   contract   with   one  or  more  minority  business
30    enterprises and 5% or more of the dollar value  with  one  or
31    more  female business enterprises. This commitment may be met
32    by contractor's status as a minority business  enterprise  or
33    female  business  enterprise,  by  a  joint  venture,  or  by
 
                            -9-               LRB9202774SMdvA
 1    subcontracting  a  portion  of the work with or by purchasing
 2    materials for the work from one or more such enterprises,  or
 3    by  any  combination  thereof.  Any contract with the general
 4    contractor for construction of the new facility shall require
 5    the general contractor to meet the foregoing obligations  and
 6    shall require monthly reporting to the Authority with respect
 7    to  the  status  of  the  implementation  of the contractor's
 8    affirmative action plan and compliance with that  plan.  This
 9    report   shall  be  filed  with  the  General  Assembly.  The
10    Authority shall require that the facility owner establish and
11    maintain an affirmative action program  designed  to  promote
12    equal employment opportunity and that specifies the goals and
13    methods  for increasing participation by minorities and women
14    in a representative mix of job  classifications  required  to
15    perform  the respective contracts. The Authority shall file a
16    report before March 1 of each year with the General  Assembly
17    detailing  its  implementation  of this subsection. The terms
18    "minority   business   enterprise"   and   "female   business
19    enterprise"  have  the  meanings  provided  in  the  Business
20    Enterprise  for  Minorities,  Females,   and   Persons   with
21    Disabilities Act.

22        Section 45. Reporting. Promptly following entering into a
23    loan agreement involving a new facility or facility site, the
24    Authority shall submit a detailed written report and findings
25    of  the Authority with respect to the proposed loan agreement
26    to the General Assembly.  The  report  and  findings  of  the
27    Authority shall include the following:
28             (1)  A  detailed  plan  of the method of funding the
29        loan agreement.
30             (2)  An evaluation of the economic  consequences  of
31        the proposed loan agreement.
32             (3)  An analysis of the reasons for acquiring a site
33        for constructing a new facility.
 
                            -10-              LRB9202774SMdvA
 1        Section  50. Territory. The territory of the Authority is
 2    coterminous with the boundaries of the  counties  of  Madison
 3    and St. Clair.

 4        Section  55.  Acquisition  of property. The Authority may
 5    acquire in its own name, by gift or  purchase,  any  real  or
 6    personal property, or interests in real or personal property,
 7    necessary or convenient to carry out its corporate purposes.

 8        Section  60.  Tax  exemption.  The Authority shall not be
 9    required to pay property  taxes  on  any  property  it  owns.
10    During  the term of a loan agreement made under this Act, the
11    owner of a facility that is  the  subject  of  the  agreement
12    shall  not  be required to pay property taxes on the facility
13    or facility site.

14        Section 65. Conflicts of interest; generally.
15        (a)  No members or employees of the  Authority  shall  be
16    employed  by,  be  an  officer  or  director  of, or have any
17    ownership interest in any corporation or  entity  that  is  a
18    party to a loan agreement with the Authority under this Act.
19        (b)  No moneys of the Authority shall be deposited in any
20    financial  institution  in  which  any  officer, director, or
21    holder of a substantial proprietary interest is also a member
22    or employee of the Authority.
23        (c)  No real estate to which a member or employee of  the
24    Authority holds legal title or in which such a person has any
25    beneficial  interest, including any interest in a land trust,
26    shall be purchased by  the  Authority,  nor  shall  any  such
27    property  be  purchased  by  a  corporation  or  entity for a
28    facility to be financed under  this  Act.  Every  member  and
29    employee  of  the  Authority  shall  file  annually  with the
30    Authority a record of all real estate in this State to  which
31    the  person  holds legal title or in which the person has any
 
                            -11-              LRB9202774SMdvA
 1    beneficial interest, including any interest in a land  trust.
 2    In  the  event  it  is  later disclosed that the Authority or
 3    other entity has purchased real estate in which a  member  or
 4    employee  had  an interest, the purchase shall be voidable by
 5    the Authority and the member or employee  involved  shall  be
 6    disqualified   from   membership  in  or  employment  by  the
 7    Authority.

 8        Section 70. Conflicts of interest; contracts.
 9        (a)  No member of the Authority  or  officer,  agent,  or
10    employee of the Authority shall, in his or her own name or in
11    the  name  of a nominee, be an officer or director of or hold
12    an ownership interest  of  more  than  7.5%  in  any  person,
13    association, trust, corporation, partnership, or other entity
14    that is, in its own name or in the name of a nominee, a party
15    to  a contract or agreement upon which the member or officer,
16    agent, or employee may be called upon to act or vote.
17        (b)  With respect to any direct or any indirect interest,
18    other than an interest prohibited in  subsection  (a),  in  a
19    contract  or  agreement  upon  which  the  member or officer,
20    agent, or employee may be called  upon  to  act  or  vote,  a
21    member of the Authority or officer, agent, or employee of the
22    Authority  shall  disclose  the  same to the secretary of the
23    Authority before the taking of final action by the  Authority
24    concerning  the  contract  or agreement and shall so disclose
25    the nature and  extent  of  such  interest  and  his  or  her
26    acquisition  thereof,  which  disclosures  shall  be publicly
27    acknowledged by the Authority and entered upon the minutes of
28    the Authority.  If a member  of  the  Authority  or  officer,
29    agent,  or  employee of the Authority holds such an interest,
30    then he or  she  shall  refrain  from  any  further  official
31    involvement  in  regard  to  the  contract or agreement, from
32    voting on any matter pertaining to the contract or agreement,
33    and from communicating with other members of the Authority or
 
                            -12-              LRB9202774SMdvA
 1    its officers, agents, and employees concerning  the  contract
 2    or agreement. Notwithstanding any other provision of law, any
 3    contract  or  agreement  entered into in conformity with this
 4    subsection (b) shall not be void or invalid by reason of  the
 5    interest  described  in this subsection, nor shall any person
 6    so  disclosing  the  interest  and  refraining  from  further
 7    official involvement as provided in this subsection be guilty
 8    of an offense, be removed from office, or be subject  to  any
 9    other penalty on account of such interest.
10        (c)  Any  contract  or  agreement  made  in  violation of
11    subsection (a) or (b) of this Section shall be null and  void
12    and give rise to no action against the Authority.

13        Section  75.  Records  and  reports of the Authority. The
14    secretary shall keep a  record  of  the  proceedings  of  the
15    Authority.  The treasurer of the Authority shall be custodian
16    of all Authority funds and shall be bonded in the amount  the
17    other  members  of  the Authority may designate. The accounts
18    and books of the Authority shall be set up and maintained  in
19    a  manner  approved by the Auditor General, and the Authority
20    shall file with the Auditor General a certified annual report
21    within 120 days after the  close  of  its  fiscal  year.  The
22    Authority shall also file with the Governor, the Secretary of
23    the  Senate,  the  Clerk of the House of Representatives, the
24    Chair of the St. Clair County Board, the Chair of the Madison
25    County  Board,  and  the   Illinois   Economic   and   Fiscal
26    Commission,  by  March  1  of  each  year,  a  written report
27    covering its activities for  the  previous  fiscal  year.  So
28    filed,  the  report  shall  be  a  public record and open for
29    inspection at the offices  of  the  Authority  during  normal
30    business hours.

31        Section  80. Tax prohibited. The Authority may not impose
32    any occupation or other tax.
 
                            -13-              LRB9202774SMdvA
 1        Section 85. No impairment of loan agreement.   The  State
 2    of  Illinois  pledges  to  and agrees with any facility owner
 3    under any loan agreement entered into by the  Authority  with
 4    respect  to a facility that the State will not limit or alter
 5    the rights and powers vested in the Authority by this Act  so
 6    as  to  impair  the terms of any the loan agreement or in any
 7    way impair the rights and remedies of the owner  so  long  as
 8    the  owner  is  not  in default under the loan agreement.  In
 9    addition, the State pledges to and agrees with the owner that
10    the State will not limit the basis on which State  funds  are
11    to be allocated, deposited, and paid to the Authority, or the
12    use  of  those  funds,  so as to impair the terms of any such
13    loan agreement. The Authority is authorized to  include  this
14    pledge and agreement of the State in the loan agreement.

15        Section   90.   Volume  cap.  Notwithstanding  any  other
16    provision of law, the Governor may allocate  any  volume  cap
17    available  to  the  State  or  any  of its agencies under the
18    Internal Revenue Code of 1986, including any amounts  carried
19    forward  by  the State or any of its agencies with respect to
20    stadiums, to the Metro-East Sports Facilities Authority,  and
21    the Authority may carry forward any amount allocated to it by
22    the Governor or by any home rule unit.

23        Section  95. Abolition of Authority. If the Authority has
24    not entered into a loan agreement, pursuant to Section 40  of
25    this  Act,  with  or on behalf of a major league professional
26    baseball franchise before one year  following  the  effective
27    date  of  this Act, the Authority shall be abolished upon the
28    expiration of that one-year period.

29        Section 999.  Effective date.  This Act takes effect upon
30    becoming law.

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