corporate counsel symposium xxiv october 22, 2013files.dorsey.com › ... ›...
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CORPORATE COUNSEL SYMPOSIUM XXIV OCTOBER 22, 2013
Building Minnesota through PPPs:
The New Vikings/Multi-Purpose Stadium and Rochester’s Destination Medical Center Initiative
Jeff Anderson Minnesota Vikings Football, LLC Director of Corporate Communications Minneapolis, Minnesota
Lisa M. Clarke Mayo Clinic Public Affairs Division Chair Destination Medical Center Economic Development Agency Administrator Rochester, Minnesota
Michele Kelm-Helgen Minnesota Sports Facilities Authority Chair Minneapolis, Minnesota
Tina Flint Smith Destination Medical Center Corporation Board Chair Chief of Staff to Governor Mark Dayton Minneapolis, Minnesota
Lynnette Slater Crandall Dorsey & Whitney LLP (612) 343-8288 [email protected] Minneapolis, Minnesota
Jay R. Lindgren Dorsey & Whitney LLP (612) 492-6875 [email protected] Minneapolis, Minnesota
Program Materials are available on www.dorsey.com at http://www.dorsey.com/mp_ccs_2013/
1. PowerPoint
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Building Minnesota through PPPs: The New Vikings/Multi-Purpose Stadium and Rochester’s
Destination Medical Center Initiative
Jeff AndersonDirector of Corporate Communications, Minnesota Vikings Football, LLC
Lisa M. ClarkeDivision Chair, Mayo Clinic Public Affairs and Administrator for Destination
Medical Center Economic Development Agency
Michele Kelm-HelgenChair, Minnesota Sports Facilities Authority
Tina Flint SmithBoard Chair, Destination Medical Center Corporation, and
Chief of Staff to Governor Mark Dayton
Lynnette Slater CrandallJay R. Lindgren
Dorsey & Whitney LLP1
Building our Economy through Public-Private Partnerships (aka “P3s”)
Rochester’s Destination Medical Center & Minnesota’s Multi-Purpose/Vikings Stadium
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• In a time when state and local governments must balance shrinking revenue with deteriorating infrastructure, P3s have become a timely model for completing projects on time and on budget.– P3: A long-term performance-based contract between
public sector and private sector to deliver public infrastructure.
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The Issue
• Not enough resources for current infrastructure needs– Increasing Spending Levels: How Much is Enough?
• Local governmental units can’t react quickly to adopt and implement new strategies for redevelopment– Dillon’s Rule– Limited authority to act outside of jurisdiction
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Increasing Spending Levels:How Much Is Enough?
• Many groups claim that we are not spending enough. Comparisons of need differ based on what is being counted, but overall numbers are relatively consistent.
Transportation/Transit Example
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American Society of Civil Engineers
Type $ billions annual spending
Roads 126
Bridges 9
Transit 21
Rail 13
Total 169
Note: Total government spending
American Association of State Highway and Transportation
Officials
Type $ billions annual spending
Highways 63
Transit 16
Freight 7
Intercity Passenger Rail
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Total 91
Note: Federal government spending only
National Surface Transportation Revenue and Policy Study
Commission
Type $ billions annual spending
Highways & Bridges
130-166
Transit 14-18
Freight 5-7
Intercity Passenger Rail
7-9
Total 156-200
Note: Federal aid eligible roads only
Jurisdictional Issues
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CityA
CityB
CityC
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One Tool: P3s
• Public-Private Partnerships– Accelerates infrastructure projects deemed impractical
under traditional funding– Well-developed international tool– Provides flexibility– Transcends jurisdictional rules– $200 billion capital available?
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Key Considerations
• Proper Risk Allocation
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Traditional Model Options
• Design – Bid – Build
• Design – Build
• Design – Build – Operate – Maintain
• Design – Build – Finance – Operate – Maintain
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Intro to P3 Structure
• A traditional P3 Project has the following key elements: – A long-term contract between a public-sector party and a
private-sector party;– For the design, construction, financing, and operations of a
public infrastructure by the private-sector party; – In exchange for payments over the life of the P3 Contract; – With the facility remaining in public-sector ownership, or
reverting to public-sector ownership at the end of the P3 Contract.
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Rochester’s Destination Medical Center
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Securing Our Future
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• Mayo Clinic is committed to providing the highest quality health care in the world.
• But it cannot support Rochester and Minnesota as a Destination Medical Center on its own.
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Innovation & Partnership
• DMC has been developed through a never-seen-before public-private partnership between – Minnesota– City of Rochester– Olmsted County– Southeast Minnesota Region – Mayo Clinic
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DMC Funding Structure
• Recognizing the importance of the competitive trends, the State of Minnesota, Mayo Clinic and the Rochester community have entered into an unprecedented public-private partnership.– Over $5.5 billion in private investment in the market,
realizing a ratio of approximately $10 to $1 in private to public investment.
– A public investment proposal of $585 million from State and local jurisdictions.
– The investment is not an upfront payment but instead structured over a 20-year period.
– NONE of the public dollars will be used to pay for Mayo buildings and/or programs.
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Minnesota Multi-Purpose/Vikings Stadium
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New Stadium Details: Exterior
• Bold, iconic design unique to Minnesota
• Fixed roof with largest span of ETFE in country-60% ETFE
• Lightest & most efficient roof structure in nation
• Connection to outdoors from a climate-controlled environment
• LEED certification
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New Stadium Details: Exterior Site
• 33 acre site
• Access points to city & stadium on all 4 sides
• Large plaza opening to city-2 acres on west side
• 1.6 million square feet
• Parking ramps with skyways connected to the downtown core
• Encourages connection to neighborhoods
• Spur economic development
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New Stadium Details: Interior
• Open bowl design with 65,000 seats expandable to 73,000 for a Super Bowl
• Open concourses
• Large, public spaces
• 2 of the largest end zone video boards in an NFL stadium
• 7 levels-stairs, escalators & ramp
• Transparent, open structure connecting fans to inside experience & outdoors
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Vikings: 10 Home Games 355 days for other programming
• Baseball
• Soccer
• Youth Football
• Marching band competitions
• Community Events
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Current Events
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New Stadium Events
New stadium will attract major national & international events including:
• Big 10 championships• The Super Bowl• The Final Four• College Bowl games• Major League Soccer• National conventions• Concerts• World Cup matches
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New Stadium Schedule Update
• The project is on track and will be built on time and on budget– August 2013
• 100% schematic design approved by City of Minneapolis
– Fall 2013• Stadium Vision/Design Public Listening Sessions• The Guaranteed Maximum Price (GMP) will be received• Break Ground
– 2014-2015 seasons• Vikings Play at TCF Bank Stadium at U of M
– July/August 2016 • New Stadium opens
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PLAZA
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