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Agenda - Council - 04/22/2008
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Agenda - Council - 04/22/2008
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04/22/2008
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Page3of8 <br />381 N.W.2d 842 Page 2 <br />381 N.W.2d 842 <br />(Cite as: 381 N.W.2d 842) <br />facilities includes the authority to sell or to lease <br />advertising in the Metrodome. <br />[4] Municipal Corporations 268 X62 <br />268 Municipal Corporations <br />26811 Governmental Powers and Functions in <br />General <br />268k62 k. Delegation or Surrender of <br />Authority. Most Cited Cases <br />Authority granted the Metropolitan Sports Facilities <br />Commission by statute to sell or to lease advertising <br />in the Metrodome [M.S.A. § 473.556, subd. 5] was <br />not unlawfully delegated when the Commission <br />entered into a scoreboard system agreement which <br />allowed the manufacturer to negotiate exclusive <br />advertising agreements with individual advertisers, <br />but retained ultimate control over the advertisement <br />appearing on the scoreboard as well as the right to <br />reject any advertisement before it was displayed. <br />*842 Syllabus by the Court <br />1. We hold that the scoreboard system agreement <br />for the Hubert H. Humphrey *843 Metrodome was <br />not a contract for supplies, material or equipment <br />requiring public bidding within the meaning of <br />Minn.Stat. § 473.556, subd. 7 (1984), and therefore <br />determine that the Metropolitan Sports Facilities <br />Commission did not violate this statute in executing <br />that agreement. <br />2. We also hold that the Metropolitan Sports <br />Facilities Commission had the authority to sell or <br />lease advertising in the Metrodome on an exclusive <br />basis and that it did not unlawfully delegate its <br />powers in the scoreboard system agreement. <br />Wayne, H. Olson, David R. Knodell, Michelle J. <br />Ulrich, Minneapolis, for appellants. <br />Sidney Barrows, Robert Lewis Barrows, Mary <br />Benjamin Trevor, Minneapolis, for respondent. <br />Heard, considered and decided by the court en banc. <br />SCOTT, Justice. <br />This case involves two questions certified to this <br />court by the United States Court of Appeals for the <br />Eighth Circuit pursuant to Minn.Stat. § 480.061 <br />(1984). The certified questions arise from an <br />action commenced by Hubbard Broadcasting, Inc. <br />© 2006 Thomson/West. No Claim to Orig. U.S. Govt. Works. <br />(Hubbard), in federal district court, challenging a <br />scoreboard agreement for the Hubert H. Humphrey <br />Metrodome (Metrodome) executed by the <br />Metropolitan Sports Facilities Commission <br />(Commission) and American Sign and Indicator <br />Corp. (American Sign). The questions are as <br />follows: <br />(1) Whether the Scoreboard System Agreement is <br />a contract for supplies, materials or equipment <br />within the meaning . of the public bidding statutes, <br />Minn.Stat.Ann. §§ 471.345, 473.556, and, if so, <br />whether the Scoreboard System Agreement is <br />nonetheless not subject to the public bidding <br />requirement because it falls within the exception <br />provided in Minn.Stat.Ann. § 473.556(7). <br />(2) Whether the Commission pursuant to <br />Minn.Stat.Ann. § 473.556 had the authority to sell <br />or lease advertising in the Metrodome on an <br />exclusive basis and, if so, whether the Commission <br />unlawfully delegated its authority to sell or lease <br />advertising within the Metrodome by entering into <br />the Scoreboard System Agreement with ASI -TCF <br />without establishing any standards or policies. <br />Hubbard Broadcasting, Inc., v. Metropolitan Sports <br />Facilities Commission, Nos. 85- 5006, -5011, -5014 <br />(8th Cir. August 8, 1985). <br />Pursuant to the Minnesota Sports Facilities Act <br />(codified at Minn.Stat. §§ 473.551 -.596 (1984)), <br />the Metropolitan Sports Facilities Commission was <br />established to study, construct, own and operate a <br />metropolitan sports facility. In studying the <br />feasibility of constructing a new facility in 1977 and <br />1978, the Commission discussed some of the <br />possible features of a new stadium and agreed, at <br />that time, that if a "domed stadium" were built, a <br />state -of -the -art" scoreboard system, with instant <br />replay capabilities, would be necessary. In <br />December 1978, the Commission voted to construct <br />a domed stadium in Minneapolis and thereafter <br />entered into use agreements with the two <br />major - league professional sports teams in the area. <br />FNI These agreements required that a scoreboard <br />system be installed in the new stadium. <br />FN1. For a recital of the history of the <br />Metrodome, see Lifteau v. Metropolitan <br />https:// web2. westlaw. com/ print/printstream.aspx ?prft=HTMLE &destination= atp &sv=Split... 9/27/2006_ 17 5 - <br />
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