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S.J.R. 11
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5 A JOINT RESOLUTION OF THE LEGISLATURE PERMITTING THE TRANSFER OF THE
6 WINTER SPORTS PARK TO OCCUR PRIOR TO APRIL 1999; AND ADDRESSING THE
7 STATE'S SECURITY INTEREST IN REVENUES RECEIVED BY THE ORGANIZING
8 COMMITTEE.
9 Be it resolved by the Legislature of the state of Utah:
10 WHEREAS as used in this resolution:
11 (1) "organizing committee" means the Salt Lake Organizing Committee for the Winter
12 Olympic Games of 2002;
13 (2) "Olympics" means the Olympic Winter Games of 2002 to be hosted by Salt Lake City;
14 and
15 (3) "revenues" means all revenues scheduled to be paid to the organizing committee under
16 any contract into which the committee may enter including proceeds payable under insurance
17 contracts;
18 WHEREAS S.J.R. 17 (1994 General Session) governs the sale of the Winter Sports Park
19 and the payment of the purchase price of up to $99 million depending on the actual total funds
20 expended or incurred by the Utah Sports Authority through the closing date referred to in the
21 August 1, 1994 Winters Sports Facility Purchase Agreement, except to the extent that a specific
22 requirement of S.J.R. 17 is superseded by a subsequent joint resolution of the Legislature;
23 WHEREAS on August 1, 1994, the Utah Sports Authority entered into an agreement to sell
24 the Winter Sports Park to the organizing committee for a purchase price of up to $99 million,
25 which agreement was affirmed by S.J.R. 5 (1996 General Session);
26 WHEREAS under the sales agreement the organizing committee is to take possession and
27 title of the Winter Sports Park in April 1999;
1 WHEREAS under the sales agreement the sale of the Winter Sports Park was conditioned
2 on the organizing committee providing the Utah Sports Authority, as an agency of the state, a first
3 priority security interest in the last $100,000,000 of revenues to which the organizing committee
4 may be entitled under any contract into which the organizing committee may enter with a
5 television network or other party relating to the right to broadcast, transmit, record or sell video
6 images or other forms of communications or media related to the Olympics in addition to other
7 security interests given the Utah Sports Authority;
8 WHEREAS the organizing committee may need to take possession and title of the Winter
9 Sports Park prior to April 1999 to meet construction schedules for improvements the organizing
10 committee will make to the Winter Sports Park;
11 WHEREAS the terms of the largest television contract have been negotiated and the
12 organizing committee has a more definite understanding of the revenues it will receive from the
13 broadcast of the Olympics;
14 WHEREAS because the organizing committee will receive a significant portion of its
15 revenues during or after the Olympics, the organizing committee needs to establish one or more
16 revolving or other lines of credit to pay for the costs incurred prior to the Olympics in preparing
17 for and hosting the Olympics;
18 WHEREAS to secure one or more lines of credit, the organizing committee may be
19 required to give a security interest in revenues to an institution or institutions that provide the
20 organizing committee one or more revolving or other lines of credit;
21 WHEREAS the state's security interest should reflect its status as the second largest
22 creditor of the organizing committee, second only to the institution or institutions that will provide
23 the organizing committee one or more revolving or other lines of credit;
24 WHEREAS if the organizing committee is able to obtain one or more lines of credit under
25 favorable terms, the state will benefit because the organizing committee will be financially more
26 secure and able to meet its budgetary obligations including the repayment of the purchase price;
27 and
28 WHEREAS it will benefit the organizing committee's efforts to obtain one or more lines
29 of credit if the state's security interest in revenues is more specifically defined:
30 NOW, THEREFORE, BE IT RESOLVED that the closing of the August 1, 1994 Winter
31 Sports Facility Purchase Agreement may occur prior to April 15, 1999, on a date to be mutually
1 decided by the organizing committee and the Utah Sports Authority resulting in the organizing
2 committee taking title and possession of the Winter Sports Park prior to April 1999.
3 BE IT FURTHER RESOLVED that, if the conditions of this resolution are met, the state's
4 security interest in the revenues received by the organizing committee, to be held by the Utah
5 Sports Authority or its successor entity as an agency of the state, shall be as follows:
6 (1) except as limited by this resolution, an institution or institutions providing the
7 organizing committee with one or more revolving or other lines of credit may receive a first
8 priority security interest in revenues that has priority over the state's security interest in those
9 revenues;
10 (2) the aggregate of all revolving or other lines of credit secured by the organizing
11 committee may not exceed $200,000,000 without the approval of the governor;
12 (3) as to the revenues in which the organizing committee pledges a security interest to an
13 institution or institutions providing the organizing committee one or more lines of credit, the state
14 has a security interest in the revenues pledged that is:
15 (a) junior in lien priority to any lien or security interest granted the institution or
16 institutions providing the organizing committee with one or more revolving or other lines of credit;
17 and
18 (b) superior in lien priority to any lien or security interest of any creditor other than an
19 institution or institutions described in Subsection (1);
20 (4) for revenues not pledged to an institution or institutions providing the organizing
21 committee one or more revolving or other lines of credit, the Utah Sports Authority shall enter into
22 an agreement with the organizing committee, subject to the approval of the governor, that grants
23 the state a first priority security interest in:
24 (a) $100,000,000 of revenues not pledged under Subsection (3); or
25 (b) if the revenues not pledged under Subsection (3) are less than $100,000,000, the entire
26 amount of revenues not pledged under Subsection (3);
27 (5) the lien and security interest granted to the state in accordance with this resolution does
28 not restrict the organizing committee's right or ability to expend any available funds, including the
29 proceeds of the lines of credit or revenues pledged to the state or to an institution or institutions
30 extending the lines of credit, so long as the expenditures are:
31 (a) permitted under the agreement between the organizing committee and an institution or
1 institutions providing the revolving or other lines of credit to the organizing committee; and
2 (b) in accordance with budgets approved by the governor under Utah Code Ann.
3 63A-7-106 and the August 1, 1994 Winter Sports Facility Purchase Agreement;
4 (6) other than the security interests held by the state and an institution or institutions
5 granting a line or lines of credit in accordance with this resolution, the organizing committee may
6 not grant liens or security interests on or otherwise pledge or encumber its assets without the
7 consent of the governor, except for the following:
8 (a) liens for taxes not yet due and payable or that are being contested in good faith in
9 appropriate proceedings;
10 (b) mechanics, materialmen's, carriers', warehousemen's, and similar liens arising by
11 operations of law in the ordinary course of business that are not overdue or being contested in good
12 faith by appropriate proceedings;
13 (c) liens arising in connection with workers' compensation, unemployment insurance, old
14 age pensions, and social security benefits that are not overdue or are being contested in good faith
15 in appropriate proceedings;
16 (d) purchase money security interest and other liens existing on any assets or property
17 acquired by the organizing committee; and
18 (e) liens incurred or deposits made in the ordinary course of business to secure
19 performance of bids, tenders, statutory obligations, fee and expense arrangements with trustees and
20 fiscal agents, and liens to secure surety, indemnity performance, appeal and release bonds,
21 provided such do not exceed individually or in the aggregate $5,000,000 at any time outstanding;
22 (7) the organizing committee shall provide the Legislature, through the Office of
23 Legislative Research and General Counsel, the governor, and the Utah Sports Authority the
24 following, which shall be treated as a protected record under Title 63, Chapter 2, Governments
25 Records Access and Management Act:
26 (a) a report of the terms of any lines of credit entered into by the organizing committee;
27 (b) a copy of any security agreement related to the revenues of the organizing committee;
28 and
29 (c) notice of any event of default required to be provided an institution or institutions
30 extending the organizing committee a line or lines of credit; and
31 (8) the organizing committee shall enter into, consistent with this resolution, an
1 amendment to the August 1, 1994 Winter Sports Facility Purchase Agreement to reflect the
2 security interest described in this resolution, except that the Utah Sports Authority may not enter
3 into the amendment prior to:
4 (a) ten business days after the Utah Sports Authority provides the Legislature, through the
5 Office of Legislative Research and General Counsel, a copy of the amendment; and
6 (b) receiving the written approval of the amendment by the governor.
7 BE IT FURTHER RESOLVED that this resolution governs the security interest of the state
8 in the organizing committee's revenues and any agreement affecting the security interest of the
9 state that is in conflict with this resolution is null and void, unless the conflicting agreement is
10 approved by a joint resolution of the Utah Legislature.
11 BE IT FURTHER RESOLVED that the Utah Sports Authority shall execute such other
12 agreements and take such further actions consistent with this resolution as may be required by the
13 institution or institutions extending the organizing committee a line or lines of credit to evidence
14 subordination and subrogation of the state's security interest to the security interest of such
15 institution or institutions.
Legislative Review Note
as of 3-3-97 4:41 PM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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