Sec. 32-608. State contract assistance.
Sec. 32-608. State contract assistance. (a) The state, acting by and through the
Secretary of the Office of Policy and Management and the State Treasurer, may enter
into a contract with the Capital City Economic Development Authority providing that
the state shall pay contract assistance to the authority pursuant to the provisions of this
section. Such contract assistance is limited to an amount equal to the annual debt service
on the outstanding amount of bonds to be issued pursuant to section 32-607 to finance
the costs of the convention center project, as defined in subdivision (3) of section 32-600. The contract entered into pursuant to this section shall include such provisions as
the Secretary of the Office of Policy and Management and the State Treasurer deem
necessary to assure the efficient construction and operation of such project and find are
in the best interests of the state. No such contract shall be entered into by the secretary
and the State Treasurer unless the board of directors of the authority files therewith
a certificate setting forth its findings and determinations of the extent to which the
incremental tax revenues under the authority of law existing at the time such certificate
is filed to be derived as a result of the construction and operation of the project and
visitor spending with respect thereto are reasonably expected to offset, over the term
that the bonds are scheduled to be outstanding, the amount of debt service expected to
be paid on authority bonds to be secured by such state assistance contract. In the event
the secretary and the State Treasurer substantially concur with the findings of the board,
a certificate evidencing such substantial concurrence shall be filed by such secretary
and State Treasurer with the clerks of the Senate and the House of Representatives. In
making such findings and determinations and executing such approval, the board, the
secretary and the State Treasurer shall each be entitled to rely upon such reports and
estimates of experts, as appropriate, for the proper evaluation of feasibility of the project,
including, without limitation, estimates relating to the incremental tax revenues resulting
from the convention center project, reasonable expectation as to the additional development in the area of the convention center project and such additional expenditures as a
result of construction, tourism and other travel, entertainment and retail sales as may
result from the location of such project in the capital city of the state.
(b) As part of such contract with the authority, or as a supplemental contract to
such contract, the state, acting by and through the Secretary of the Office of Policy and
Management and the State Treasurer, may provide for contract assistance for the funding
of the completion, improvement or expansion of the project approved under subsection
(a) of this section on the same terms and subject to the same conditions and findings
set forth in said subsection (a).
(c) Any such contract may also provide that such contract assistance shall be paid by
the state directly to the trustee or paying agent for any bonds, notes or other obligations, as
applicable, with respect to which the contract assistance is provided. Any provision of
such a contract entered into providing for payments equal to annual debt service shall
constitute a full faith and credit obligation of the state and as part of the contract of the
state with the holders of any bonds or notes, as applicable, appropriation of all amounts
necessary to meet punctually the terms of such provision is hereby made and the State
Treasurer shall pay such amount as the same become due. The board of directors of the
authority may pledge such contract assistance of the state as security for the payment
of such bonds, notes or other obligations issued by the authority.
(d) Any bonds issued under the provisions of subsections (a) and (b) of this section
and at any time outstanding may at any time or from time to time be refunded by the
board of directors of the authority by the issuance of its refunding bonds in such amounts
as the authority may deem necessary or appropriate and with the consent of the Secretary
of the Office of Policy and Management and the State Treasurer upon a finding that it
is in the best interest of the state, but not exceeding an amount sufficient to refund the
principal amount of the bonds to be so refunded, any unpaid interest thereon and any
premiums, commissions and costs of issuance necessary to be paid in connection therewith. Any such refunding may be effected whether the bonds to be refunded shall have
matured or shall thereafter mature. The state, acting by and through the Secretary of the
Office of Policy and Management, the State Treasurer and the State Bond Commission,
may execute a contract for contract assistance for the payment of annual debt service
on such refunding bonds. If the State Treasurer and the Secretary of the Office of Policy
and Management request a refunding, the authority shall not unreasonably withhold
approval.
(P.A. 98-179, S. 9, 30.)
History: P.A. 98-179 effective June 1, 1998.