S.J.R. 11 Enrolled

OLYMPIC FACILITIES REPAYMENT RESOLUTION
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Alarik Myrin
A JOINT RESOLUTION OF THE LEGISLATURE PERMITTING THE TRANSFER OF THE
WINTER SPORTS PARK TO OCCUR PRIOR TO APRIL 1999; AND ADDRESSING
THE STATE'S SECURITY INTEREST IN REVENUES RECEIVED BY THE
ORGANIZING COMMITTEE.
Be it resolved by the Legislature of the state of Utah:
WHEREAS as used in this resolution:
(1) "organizing committee" means the Salt Lake Organizing Committee for the Winter
Olympic Games of 2002;
(2) "Olympics" means the Olympic Winter Games of 2002 to be hosted by Salt Lake City;
and
(3) "revenues" means all revenues scheduled to be paid to the organizing committee under
any contract into which the committee may enter including proceeds payable under insurance
contracts;
WHEREAS S.J.R. 17 (1994 General Session) governs the sale of the Winter Sports Park
and the payment of the purchase price of up to $99,000,000 depending on the actual total funds
expended or incurred by the Utah Sports Authority through the closing date referred to in the
August 1, 1994 Winters Sports Facility Purchase Agreement, except to the extent that a specific
requirement of S.J.R. 17 is superseded by a subsequent joint resolution of the Legislature;
WHEREAS on August 1, 1994, the Utah Sports Authority entered into an agreement to sell
the Winter Sports Park to the organizing committee for a purchase price of up to $99,000,000,
which agreement was affirmed by S.J.R. 5 (1996 General Session);
WHEREAS under the sales agreement the organizing committee is to take possession and
title of the Winter Sports Park in April 1999;
WHEREAS under the sales agreement the sale of the Winter Sports Park was conditioned
on the organizing committee providing the Utah Sports Authority, as an agency of the state, a first

priority security interest in the last $100,000,000 of revenues to which the organizing committee may
be entitled under any contract into which the organizing committee may enter with a television
network or other party relating to the right to broadcast, transmit, record or sell video images or other
forms of communications or media related to the Olympics in addition to other security interests
given the Utah Sports Authority;
WHEREAS the organizing committee may need to take possession and title of the Winter
Sports Park prior to April 1999 to meet construction schedules for improvements the organizing
committee will make to the Winter Sports Park;
WHEREAS the terms of the largest television contract have been negotiated and the
organizing committee has a more definite understanding of the revenues it will receive from the
broadcast of the Olympics;
WHEREAS because the organizing committee will receive a significant portion of its
revenues during or after the Olympics, the organizing committee needs to establish one or more
revolving or other lines of credit to pay for the costs incurred prior to the Olympics in preparing for
and hosting the Olympics;
WHEREAS to secure one or more lines of credit, the organizing committee may be required
to give a security interest in revenues to an institution or institutions that provide the organizing
committee one or more revolving or other lines of credit;
WHEREAS the state's security interest should reflect its status as the second largest creditor
of the organizing committee, second only to the institution or institutions that will provide the
organizing committee one or more revolving or other lines of credit;
WHEREAS if the organizing committee is able to obtain one or more lines of credit under
favorable terms, the state will benefit because the organizing committee will be financially more
secure and able to meet its budgetary obligations including the repayment of the purchase price; and
WHEREAS it will benefit the organizing committee's efforts to obtain one or more lines of
credit if the state's security interest in revenues is more specifically defined:
NOW, THEREFORE, BE IT RESOLVED that the closing of the August 1, 1994 Winter
Sports Facility Purchase Agreement may occur prior to April 15, 1999, on a date to be mutually

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decided by the organizing committee and the Utah Sports Authority resulting in the organizing
committee taking title and possession of the Winter Sports Park prior to April 1999.
BE IT FURTHER RESOLVED that, if the conditions of this resolution are met, the state's
security interest in the revenues received by the organizing committee, to be held by the Utah Sports
Authority or its successor entity as an agency of the state, shall be as follows:
(1) except as limited by this resolution, an institution or institutions providing the organizing
committee with one or more revolving or other lines of credit may receive a first priority security
interest in revenues that has priority over the state's security interest in those revenues;
(2) the aggregate of all revolving or other lines of credit secured by the organizing
committee may not exceed $200,000,000 without the approval of the governor;
(3) as to the revenues in which the organizing committee pledges a security interest to an
institution or institutions providing the organizing committee one or more lines of credit, the state
has a security interest in the revenues pledged that is:
(a) junior in lien priority to any lien or security interest granted the institution or institutions
providing the organizing committee with one or more revolving or other lines of credit; and
(b) superior in lien priority to any lien or security interest of any creditor other than an
institution or institutions described in Subsection (1);
(4) for revenues not pledged to an institution or institutions providing the organizing
committee one or more revolving or other lines of credit, the Utah Sports Authority shall enter into
an agreement with the organizing committee, subject to the approval of the governor, that grants the
state a first priority security interest in:
(a) $100,000,000 of revenues not pledged under Subsection (3); or
(b) if the revenues not pledged under Subsection (3) are less than $100,000,000, the entire
amount of revenues not pledged under Subsection (3);
(5) the lien and security interest granted to the state in accordance with this resolution does
not restrict the organizing committee's right or ability to expend any available funds, including the
proceeds of the lines of credit or revenues pledged to the state or to an institution or institutions
extending the lines of credit, so long as the expenditures are:

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(a) permitted under the agreement between the organizing committee and an institution or
institutions providing the revolving or other lines of credit to the organizing committee; and
(b) in accordance with budgets approved by the governor under Utah Code Ann. 63A-7-106
and the August 1, 1994 Winter Sports Facility Purchase Agreement;
(6) other than the security interests held by the state and an institution or institutions granting
a line or lines of credit in accordance with this resolution, the organizing committee may not grant
liens or security interests on or otherwise pledge or encumber its assets without the consent of the
governor, except for the following:
(a) liens for taxes not yet due and payable or that are being contested in good faith in
appropriate proceedings;
(b) mechanics, materialmen's, carriers', warehousemen's, and similar liens arising by
operations of law in the ordinary course of business that are not overdue or being contested in good
faith by appropriate proceedings;
(c) liens arising in connection with workers' compensation, unemployment insurance, old
age pensions, and social security benefits that are not overdue or are being contested in good faith
in appropriate proceedings;
(d) purchase money security interest and other liens existing on any assets or property
acquired by the organizing committee; and
(e) liens incurred or deposits made in the ordinary course of business to secure performance
of bids, tenders, statutory obligations, fee and expense arrangements with trustees and fiscal agents,
and liens to secure surety, indemnity performance, appeal and release bonds, provided such do not
exceed individually or in the aggregate $5,000,000 at any time outstanding;
(7) the organizing committee shall provide the Legislature, through the Office of Legislative
Research and General Counsel, the governor, and the Utah Sports Authority the following, which
shall be treated as a protected record under Title 63, Chapter 2, Government Records Access and
Management Act:
(a) a report of the terms of any lines of credit entered into by the organizing committee;
(b) a copy of any security agreement related to the revenues of the organizing committee;

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and
(c) notice of any event of default required to be provided an institution or institutions
extending the organizing committee a line or lines of credit; and
(8) the organizing committee shall enter into, consistent with this resolution, an amendment
to the August 1, 1994 Winter Sports Facility Purchase Agreement to reflect the security interest
described in this resolution, except that the Utah Sports Authority may not enter into the amendment
prior to:
(a) ten business days after the Utah Sports Authority provides the Legislature, through the
Office of Legislative Research and General Counsel, a copy of the amendment; and
(b) receiving the written approval of the amendment by the governor.
BE IT FURTHER RESOLVED that this resolution governs the security interest of the state
in the organizing committee's revenues and any agreement affecting the security interest of the state
that is in conflict with this resolution is null and void, unless the conflicting agreement is approved
by a joint resolution of the Legislature.
BE IT FURTHER RESOLVED that the Utah Sports Authority shall execute such other
agreements and take such further actions consistent with this resolution as may be required by the
institution or institutions extending the organizing committee a line or lines of credit to evidence
subordination and subrogation of the state's security interest to the security interest of such
institution or institutions.

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