Opinion ID: 1649985
Heading Depth: 1
Heading Rank: 10

Heading: Are the fees of the architect and construction manager to be included in the $55,000,000 bond limitation? (473.581, Subd. 3(g), 473.556, Subd. 7.)

Text: M.S. 473.581, Subd. 3 reads in part as follows: The principal amount of bonds . . . shall not exceed . . . for the construction of a covered multi-purpose sports facility, the total cost of constructing the facility under the construction contracts, not including costs paid from funds provided for by others . . . shall be limited to $55,000,000 (emphasis supplied). This section of the statute makes reference to 473.581, Subd. 3(g) which requires a determination by the Council that the Commission has executed their agreements which will provide for the construction of its sports facility for a certified construction price and completion date including performance bonds to cover costs over and above the certified price. M.S. 473.556, Subd. 7 authorizes the Commission to employ persons, firms, architects and construction managers for both designing and constructing all or any part of the stadium. This statute also provides that any contractor must be selected by public bidding. (Emphasis supplied) The stadium bill was first enacted by Chapter 89, Laws of 1977, the legislature having determined that for the public health, safety and general welfare it being necessary to establish a sports facility commission for the metropolitan area and the metropolitan council was authorized to issue and sell bonds limited to $55,000,000 to construct a covered multi-purpose sports facility. It is to be noted that the legislature placed no limitation on the cost of construction of a stadium but in fact only limited the amount of bonds that could be sold. Chapter 26 of the 1979 Laws, Section 1, Subd. 3 provided that: The principal amount of bonds issued pursuant to Subd. 1, clause (a) shall not exceed . . . for the construction of a covered multi-purpose sports facility. . . $55,000,000. Chapter 203, Laws, 1979 made a change in Subd. 3 of 473.581 and provided that: . . . the total costs of constructing the facility under the construction contracts, not including costs paid from funds provided by others and the principal amount of bonds issued . . . shall be limited to $55,000,000. The Council has determined that the legislative intent was to put a limitation on the amount the Commission could spend on the construction contracts as well as the amount of bonds the Council could issue. The Council and Commission believe that construction contracts refers to the trade contracts let on bids for the actual construction of the stadium. The law seems to support this determination by the Council and that architect and construction managers' fees together with insurance and performance bond costs contracted for pursuant to Subd. 7 of M.S. 473.556 are to be distinguished from construction contracts. Certainly the legislature could have provided that the total cost of construction should include architects and construction managers' fees, insurance and performance bond costs. Minnesota Statute 473.581, Subd. 3(c) provides that the council must make a determination that: (c) The proceeds of bonds provided for in this subdivision will be sufficient, together with other capital funds that may be available to the commission, to construct or remodel and to furnish the sports facilities proposed by the commission, including the appropriate professional fees and charges but excluding, except as otherwise provided in this subdivision, the acquisition, clearance, relocation, and legal costs referred to in clauses (d) and (e). The Council made such a determination in its Resolution No. 79-62. It seems clear that the legislature by permitting the Commission to employ professionals such as architects and construction managers distinguished them from the contractor-tradesman who will perform the construction work and will be employed by bids. Architects and managers' fees, bond and insurance premiums have little to do with the letting of bids. The certified construction price is $52,400,000 with a contingency fund of $2,600,000 to cover the cost of concealed conditions and unanticipated additional costs. The total of these two sums is $55,000,000, the statutory limit. M.S. 645.16 requires the Council (and this court) to interpret the laws to effect the intention of the legislature giving consideration to the reasons and circumstances under which the law was enacted, the object to be obtained and in so doing reference may be had to former laws upon the same subject and the consequences of the particular interpretation. The history of the stadium law and the language of the present statute gives credence to the interpretation of the Council and Commission.