Site acquisition, construction, and renovation of facility
(a) Except as allowed by § 10-639 of this subtitle, to finance site acquisition, construction, and renovation of any segment of an Ocean City Convention facility, the Authority shall comply with this section.
Financing plan
(b) The Authority shall provide to the fiscal committees of the General Assembly, at least 45 days before seeking approval of the Board of Public Works for each bond issue or other borrowing, a comprehensive financing plan for the relevant segment of the facility, including the effect of the financing plan on financing options for other segments of the facility.
Approval of plan by Board of Public Works
(c) The Authority shall obtain the approval of the Board of Public Works of the proposed bond issue and the financing plan.
Lease or other written agreement--Purposes
(d) The Authority shall secure a lease or other written agreement with Ocean City, as approved by the Board of Public Works, under which:
(1) Ocean City agrees to:
(i) issue bonds not later than the date of the Authority's bond issuance as authorized under § 10-628 of this subtitle; and
(ii) contribute $15,000,000 of the proceeds from the sale of the bonds for the capital costs of the expansion of the Ocean City Convention Center;
(2) the Authority agrees to:
(i) issue bonds as authorized under § 10-628 of this subtitle; and
(ii) contribute the proceeds from the sale of the bonds after deduction of the cost of issuance, for the capital costs of the expansion of the Ocean City Convention Center;
(3) Ocean City and the Authority agree that if the actual capital costs of the expansion of the Ocean City Convention Center are less than $37,500,000, the percentage of savings shall be allocated in proportion to the capital costs contributions made in accordance with this subsection;
(4) Ocean City agrees to provide the Ocean City Convention site, as defined in § 10-601 of this subtitle, for the expansion and renovation of the Ocean City Convention facility;
(5) Ocean City and the Authority shall:
(i) each own a percentage of leasehold interest as tenants in common in the improvements comprising the existing Ocean City Convention Center and the Ocean City Convention Center expansion for the duration of any bonds issued as authorized under § 10-628 of this subtitle and for 20 years thereafter; and
(ii) allocate the percentage of leasehold ownership interest under subparagraph (i) of this paragraph as follows:
1. A. 60% to the Authority; and
B. 40% to Ocean City; or
2. percentages as may be required for bonds issued under the authorization provided in § 10-628 of this subtitle; and
(6) Ocean City and the Authority agree not to sell, assign, mortgage, pledge, or encumber the Ocean City Convention facility, or any leasehold interest in the facility, without the prior consent of the other, except for liens in favor of their respective bondholders.
Deed, lease, or agreement with Ocean City--In general
(e) The Authority shall secure a deed, lease, or written agreement with Ocean City, as approved by the Board of Public Works, authorizing the Authority to:
(1) design, construct, and equip, or contract for the design, construction, and equipping of the Ocean City Convention facility renovation and expansion; and
(2) pledge the Ocean City Convention facility and the Ocean City Convention site or the leasehold interest in the facility as security for the Authority's bonds.
Financial responsibilities under agreement
(f)(1) The Authority shall secure a written agreement with Ocean City, as approved by the Board of Public Works:
(i) in which Ocean City agrees to:
1. subject to paragraph (2) of this subsection, market, promote, and operate the Ocean City Convention facility in a manner that maximizes the facility's economic return;
2. maintain and repair the facility so as to keep it in first class operating condition; and
3. be solely responsible for all operating deficits and capital improvements 20 years after the repayment of the Ocean City Convention facility bonds issued by the Authority; and
(ii) that includes provisions that:
1. protect the respective investment of the Authority and Ocean City;
2. require:
A. the Authority to contribute one-half and Ocean City to contribute one-half to operating deficits; and
B. the Authority and Ocean City each to contribute $100,000 each year to a capital improvement reserve fund, for the period beginning on the completion of the expanded and renovated Ocean City Convention facility and continuing during the period that the Ocean City Convention facility bonds issued by the Authority are outstanding and for 20 years thereafter; and
3. provide for remedies on default, including the right of the Authority, if a material default by Ocean City is not corrected after a reasonable notice and cure period, to:
A. immediately assume responsibility for maintenance and repairs of the Ocean City Convention facility; and
B. offset the costs of the maintenance and repairs against other amounts owed by the Authority to Ocean City, whether under the operating agreement with Ocean City or otherwise.
(2) Paragraph (1)(i)1 of this subsection may not be construed to require gambling activities in the Ocean City Convention facility.
Credits
Added by Acts 2008, c. 306, § 2, eff. Oct. 1, 2008. Amended by Acts 2008, c. 307, § 1, eff. Oct. 1, 2008; Acts 2010, c. 483, § 14, eff. June 1, 2010; Acts 2012, c. 630, § 1, eff. July 1, 2012; Acts 2013, c. 424, § 19, eff. June 1, 2013; Acts 2019, c. 217, § 1, eff. July 1, 2019; Acts 2019, c. 218, § 1, eff. July 1, 2019.
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
