temporary restraining order - Finance & Commerce

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disclosed in its application for the bond funding that it projected the construction costs of the project to be $38.6 million. The value of the contract with Ryan for design and construction of the Project is probably more than that amount, and it is certainly above the $50,000 threshold for sealed bidding mandated in St. Paul Ordinance 82.02, and the $100,000 threshold for procurement competition stated in Minn. Stat. § 471.345. Minnesota’s public procurement law has bright line rules designed to prevent even the appearance of impropriety. Actual fraud does not have to proved, even the mere opportunity for fraud or favoritism is enough to taint a public contract award and render it illegal and void. See Rochon Corp. v. City of St. Paul, 814 N.W.2d 365, 369 (Minn. Ct. App. 2012) (recently holding St. Paul had violated public procurement law and that its construction contract was void as a result). Here, the appearance of impropriety is clear. St. Paul handed a multi-million dollar contract to Ryan without using any kind of process to ensure that public was getting the best bargain or value for its money. St. Paul must be enjoined from proceeding on this illegal contract to protect the integrity of the public procurement process and to protect the taxpayers of St. Paul and Minnesota who are funding the Project. This case is not fact-intensive, nor is it likely to have factual disputes. Instead it is a matter of statutory construction that is ripe for early adjudication. II. FACTS On May 11, 2012, Governor Dayton signed into law H.F. No. 1752, which is now codified as Minn. Session Laws 2012 Chapter 293. Among other things, that law appropriated $47,500,000 from the general obligation bonds authorized by that law for the Department of Employment and Economic Development to issue as Capital Project Grants. See Minn. Session Laws 2012 Chapter 293, Section 21, Subd. 5. That law also established a new statute, Minn. N:\PL\85155\85155-001\1607234.docx 2
Stat. § 116J.433, governing those Capital Project Grants. See Minn. Session Laws 2012 Chapter 293, Section 33. Subdivision 3 of the new Minn. Stat. § 116J.433 states: The commissioner shall make competitive grants to local government units for eligible projects and public infrastructure required to support an eligible project, which may include: predesign, design, acquisition of land or buildings, construction, furnishing, and equipping a new or renovated building. The local government unit may employ or contract with persons, firms, or corporations to perform one or more or all of the functions of architect, engineer, or construction manager with respect to all or any part of an eligible project and related public infrastructure. The local government unit may deliver the eligible project and related public infrastructure through either a design-build or construction manager at-risk method. To the extent practicable and at the discretion of the local government unit, the local government unit may have rights and exercise powers with respect to the acquisition, construction, use, and operation of an eligible project, as are granted under section 473.756. No consent or approval of another political subdivision is required for the effectiveness or the exercise by a local government unit of the rights or powers. Minn. Session Laws 2012 Chapter 293, Section 33, Subd. 3 (emphasis added). Minn. Stat. § 473.756, referenced in the new § 116J.433 subd. 3 quoted above is part of the legislation enacted to enable construction of the major league baseball stadium now known as Target Field. See Minn. Stat. § 473.75 (stating the purpose of §§ 473.75 to 473.763). Minn. Stat. § 473.756 subd. 12 conferred certain contracting powers on the Minnesota Ballpark Authority, a new statutory entity created specifically for the new Minnesota Twins major league baseball stadium. See Minn. Stat. § 473.755. The statutory subdivision granting those contracting powers to the new entity states in relevant part: The authority may contract for materials, supplies, and equipment in accordance with sections 471.345 and 473.754, except that the authority, with the consent of the county, may employ or contract with persons, firms, or corporations to perform one or more of the functions of architect, engineer, or construction manager with respect to all or any part of the ballpark and public infrastructure. N:\PL\85155\85155-001\1607234.docx 3
Page 1: STATE OF MINNESOTA DISTRICT COURT C
Page 5 and 6: On September 13, 2012, the Minnesot
Page 7 and 8: consideration and the other three f
Page 9 and 10: Aff. Exhibit H). The legislature de
Page 11 and 12: perform one or more or all of the f
Page 13 and 14: was not authorized to give a multi-
Page 15 and 16: City failed to test that assumption
Page 17 and 18: “proper challenges to the bid-let
Page 19 and 20: St. Paul chose to violate well-esta

temporary restraining order - Finance & Commerce

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