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40-60 Promotion and Acquisition of Municipal Parking Facilities

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CHAPTER 40-60PROMOTION AND ACQUISITION OF MUNICIPAL PARKING FACILITIES40-60-01.Reservation of areas for parking.To alleviate traffic congestion inmunicipalities, prevent the development of blight, and implement orderly plans for urban<br>development and urban renewal, it is necessary that adequate and suitable space be reserved,<br>particularly in central business areas, for parking facilities; which phrase is defined to include, but<br>without limitation, all offstreet lots, sites, parking meters and other control devices, garages,<br>ramps, and other structures and accessories, both aboveground and belowground, which are<br>used or useful for the parking, delivery, fueling and servicing of automobiles and other motor<br>vehicles, the collection of charges therefor, and the convenience of the patrons of the facilities.<br>The withdrawal of a disproportionate amount of land for this purpose from use for commercial<br>development and from the tax base of municipalities is undesirable and can be avoided, when<br>the growth of business areas makes it economically feasible, by the construction of multilevel<br>parking ramps and garages, and by making the space above, below, or adjacent thereto<br>available for commercial development and use.It is the policy and purpose of the state toauthorize and encourage municipal action, and cooperation of municipalities with public and<br>private persons, firms, corporations, and limited liability companies in the acquisition,<br>construction, improvement, development, extension, financing, operation, maintenance, and<br>leasing of parking facilities, and of commercially usable space therein and adjacent thereto for<br>the purposes and by the methods described in section 40-60-02.40-60-02. Powers of municipalities pertaining to parking areas. Any municipality isauthorized:1.To acquire, construct, improve, develop, and extend parking facilities.2.To provide funds for this purpose by the budgeting of current funds, the levy of taxes<br>or special assessments, or the issuance of bonds or other obligations, or by any<br>combination of these means, pursuant to and in accordance with the provisions of<br>chapters 21-03, 40-22 to 40-27, 40-35, 40-40, and 40-57, and of all other applicable<br>laws now in force or hereafter enacted.3.To devote to this purpose any land, buildings, structures, and equipment which may<br>be owned by the municipality, and are determined by its governing body to be useful<br>therefor and not required for another municipal purpose, and whose use for this<br>purpose is not restricted by the terms of any conveyance or judgment by which such<br>properties were acquired.4.To operate and maintain parking facilities and establish and collect rates, charges,<br>and rentals for the use thereof by all public and private persons, firms, corporations,<br>and limited liability companies.5.To lease parking facilities, and any part thereof, to any public or private person, firm,<br>corporation, or limited liability company upon such terms as the governing body may<br>determine; provided, that:a.No lease may be executed for a longer term, or shall be subject to extension at<br>the option of the lessee for an additional term or terms, exceeding the<br>maximum period prescribed by section 47-16-02.b.Every lease shall provide that title to all real property, buildings, and<br>improvements on real property or in buildings subject to the lease, whether or<br>not previously owned or acquired, constructed or financed by the municipality,<br>and title to all other real and personal property subject to the lease which was<br>previously owned or is acquired, constructed or financed by the municipality,<br>shall be and remain in the municipality.Page No. 1c.If the entire site of any parking facilities and all improvements constructed<br>thereon are leased, the lease shall specify the amount of space to be operated<br>and maintained exclusively for public parking of motor vehicles, and the area of<br>such space shall be not less than two times the area of the space, if any, to be<br>made available within the facilities for commercial use.d.Any lease may permit the sublease of part or all of the facilities, but the<br>minimum parking space specified in accordance with subdivision c shall be<br>used or subleased solely for public parking, and all other space in the facilities<br>shall be used or subleased solely for commercial or industrial use furthering the<br>policies and purposes declared in chapter 40-57, and may be so used<br>notwithstanding any provisions of that chapter precluding the use of previously<br>owned municipal property or of municipally operated property for the projects<br>therein authorized.e.If under the terms of the lease the lessee is to construct and finance part or all<br>of the parking facilities to be provided at the leased site, the lease may permit<br>the lessee's interest therein to be mortgaged to secure the repayment of money<br>borrowed by the lessee for this purpose, upon reasonable terms approved by<br>the governing body of the lessor, and may allow the mortgagee a reasonable<br>time to cure any default in the payment of rentals and the performance of<br>covenants under the lease, prior to the termination thereof by the lessor.f.Every lease or part or all of the facilities at a particular site shall provide for the<br>payment by the lessee of all costs of the operation and maintenance of the<br>leased property, including all taxes and special assessments validly levied on<br>the premises or leasehold, adequate insurance against loss of or damage to<br>the leased property and loss or damage to other persons or property from any<br>and all operations conducted thereon, and for payment by the lessee of net<br>annual rentals at least sufficient to pay all principal and interest becoming due<br>during the lease term on any amount of bonds issued by the municipality to pay<br>capital costs of the leased property, and at least sufficient to reimburse the<br>municipality for any other expenditure made by it to pay such capital costs, in<br>annual amounts such that, if continued uniformly over the useful life of the<br>facilities, the total amount of such investment would be repaid in full with<br>interest at five percent per annum on the balance thereof from time to time<br>remaining unpaid.g.The leasehold created by any such lease is classified as personal property, and<br>any such portion of such premises not used solely for public parking of motor<br>vehicles shall be subject to taxation.Page No. 2Document Outlinechapter 40-60 promotion and acquisition of municipal parking facilities