Substitute House Bill No. 5434
Substitute House Bill No. 5434
PUBLIC ACT NO. 98-179
AN ACT CONCERNING CERTAIN REDEVELOPMENT PROJECTS
IN HARTFORD, BRIDGEPORT AND NEW HAVEN.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. (NEW) As used in sections 1 to 12,
inclusive, 17, 18 and 20 to 22, inclusive, of this
act, the following terms shall have the following
meanings:
(1) "Authority" means the Capital City
Economic Development Authority created pursuant to
section 2 of this act.
(2) "Capital city project" means any or all of
the following: (A) A convention center project as
defined in subdivision (3) of this section; (B) a
downtown higher education center; (C) the
renovation and rejuvenation of the civic center
and coliseum complex; (D) the development of the
infrastructure and improvements to the riverfront;
(E) (i) the creation of up to one thousand
downtown housing units through rehabilitation and
new construction and (ii) the demolition or
redevelopment of vacant buildings; and (F) the
addition to downtown parking capacity. All capital
city projects shall be located or constructed and
operated in the capital city economic development
district, as defined in subdivision (4) of this
section, provided any project undertaken pursuant
to subparagraph (E) (ii) of this subdivision may
be located anywhere in the town and city of
Hartford.
(3) "Convention center project" means a
facility constructed and operated in the capital
city economic development district, including
parking for such facility, in conjunction with a
privately developed hotel and may include, either
as part of the same facility or as a separate
facility operated and constructed in the capital
city economic development district, a sports
megaplex.
(4) "Capital city economic development
district" means the area bounded and described as
follows: The northerly side of Masseek Street from
the intersection of Van Dyke Avenue proceeding
westerly to the intersection of Van Block Avenue,
proceeding northerly along Van Block to the
intersection of Nepaquash Street, proceeding
easterly to the intersection of Huyshope Avenue,
proceeding northerly along Huyshope Avenue to the
intersection of Charter Oak Avenue, proceeding
westerly along Charter Oak Avenue to Wyllys
Street, proceeding along Wyllys Street to
Popieluszko Court, north on Popieluszko Court to
Charter Oak Avenue proceeding westerly to Main
Street, proceeding south along Main Street to Park
Street, thence west along Park Street to
Washington Street, thence north along Washington
Street to the entryway to the State Capitol,
thence northwesterly along the Exit 48 on ramp to
Interstate 84 northward to the railroad, now
proceeding northeasterly along the railroad to its
intersection with the southerly railroad spur,
thence proceeding southeasterly along the railroad
R.O.W. to the Bulkeley Bridge. Thence easterly to
the city line. Proceeding south along city
boundary to the point perpendicular with Masseek
Street. Thence westerly to the point of beginning.
(5) "Sports megaplex" means a multipurpose
facility that is not used exclusively for sporting
events and is used in conjunction with a
convention center.
Sec. 2. (NEW) (a) There is created a body
politic and corporate to be known as the "Capital
City Economic Development Authority". Said
authority shall be a public instrumentality and
political subdivision of this state and the
exercise by the authority of the powers conferred
by section 3 of this act shall be deemed and held
to be the performance of an essential public and
governmental function. The Capital City Economic
Development Authority shall not be construed to be
a department, institution or agency of the state.
(b) The authority shall be governed by a board
of directors consisting of seven members appointed
jointly by the Governor, the speaker of the House
of Representatives, the majority leader of the
House of Representatives, the minority leader of
the House of Representatives, the president pro
tempore of the Senate, the majority leader of the
Senate and the minority leader of the Senate, and
include, but not be limited to, members who have
expertise in the fields of commercial and
residential real estate construction or
development and financial matters. The chairperson
shall be designated by the Governor. All
appointments shall be made not later than thirty
days after the effective date of this act. The
terms of the initial board members appointed shall
be as follows: Four of the members shall serve
four-year terms from said appointment date and
three members shall serve two-year terms from said
appointment date. Thereafter all members shall be
appointed for four-year terms. A member of the
board shall be eligible for reappointment. Any
member of the board may be removed by the
appointing authority for misfeasance, malfeasance
or wilful neglect of duty. Each member of the
board, before entering upon his duties, shall take
and subscribe the oath or affirmation required by
article XI, section 1, of the State Constitution.
A record of each such oath shall be filed in the
office of the Secretary of the State. The board of
directors shall maintain a record of its
proceedings in such form as it determines,
provided such record indicates attendance and all
votes cast by each member. Any member who fails to
attend three consecutive meetings or who fails to
attend fifty per cent of all meetings held during
any calendar year shall be deemed to have resigned
from the board. A majority vote of the members of
the board shall constitute a quorum and the
affirmative vote of a majority of the members
present at a meeting of the board shall be
sufficient for any action taken by the board. No
vacancy in the membership of the board shall
impair the right of a quorum to exercise all the
rights and perform all the duties of the board.
Any action taken by the board may be authorized by
resolution at any regular or special meeting and
shall take effect immediately unless otherwise
provided in the resolution. The board may delegate
to three or more of its members, or its officers,
agents and employees, such board powers and duties
as it may deem proper.
(c) The board of directors shall annually
elect one of its members as vice-chairperson and
shall elect other of its members as officers,
appoint an executive director, who shall not be a
member of the board, and other staff, adopt a
budget and bylaws, designate an executive
committee, report semiannually to the appointing
authorities with respect to operations, finances
and achievement of its economic development
objectives, be accountable to and cooperate with
the state whenever, pursuant to the provisions of
sections 1 to 12, inclusive, of this act, the
state may audit the authority or any project of
the authority, as defined in section 1 of this
act, or at any other time as the state may inquire
as to either, including allowing the state
reasonable access to any such project and to the
records of the authority and exercise the powers
set forth in section 3 of this act. Members of the
board of directors shall receive no compensation
for the performance of their duties hereunder but
shall be reimbursed for all expenses reasonably
incurred in the performance thereof.
(d) Each member of the board of directors of
the authority and the executive director shall
execute a surety bond in the penal sum of at least
one hundred thousand dollars, or, in lieu thereof,
the chairperson of the board shall execute a
blanket position bond covering each member, the
executive director and the employees of the
authority, each surety bond to be conditioned upon
the faithful performance of the duties of the
office or offices covered, to be executed by a
surety company authorized to transact business in
this state as a surety and to be approved by the
Attorney General and filed in the Office of the
Secretary of the State. The cost of each bond
shall be paid by the authority.
(e) No board member shall have or acquire any
interest, direct or indirect, in any capital city
project, as defined in section 1 of this act, or
in any property included or planned to be included
in any such project or in any contract or proposed
contract for materials or services to be used in
such project.
(f) The authority shall have perpetual
succession and shall adopt procedures for the
conduct of its affairs in accordance with section
4 of this act. Such succession shall continue as
long as the authority shall have bonds, notes or
other obligations outstanding and until the
existence of the authority is terminated by law at
which time the rights and properties of the
authority shall pass to and be vested in the
state.
Sec. 3. (NEW) (a) The purpose of the Capital
City Economic Development Authority shall be to
stimulate new investment in Connecticut, to
attract and service large conventions, tradeshows,
exhibitions, conferences and local consumer shows,
exhibitions and events, to encourage the
diversification of the state economy, to
strengthen Hartford's role as the region's major
business and industry employment center and seat
of government, to encourage residential housing
development in downtown Hartford and, with respect
to the convention center project, to construct,
operate, maintain and market said project in order
to enable Hartford and its immediate environment
to become a major regional family-oriented arts,
culture, education, sports and entertainment
center that will create new jobs, add to the
benefits of the hospitality industry, broaden the
base of the tourism effort and stimulate
substantial surrounding economic development and
corresponding increased tax revenues to the state.
(b) For these purposes, the authority shall
have the following powers: (1) To have perpetual
succession as a body corporate and to adopt
procedures for the regulation of its affairs and
the conduct of its business as provided in
subsection (f) of section 2 of this act, to adopt
a corporate seal and alter the same at its
pleasure, and to maintain an office at such place
or places within the city of Hartford as it may
designate; (2) to sue and be sued, to contract and
be contracted with; (3) to employ such assistants,
agents and other employees as may be necessary or
desirable to carry out its purposes and to fix
their compensation, to establish and modify
personnel procedures as may be necessary from time
to time and to negotiate and enter into collective
bargaining agreements with labor unions; (4) to
acquire, lease, hold and dispose of personal
property for the purposes set forth in section 3
of this act; (5) to procure insurance against any
liability or loss in connection with its property
and other assets, in such amounts and from such
insurers as it deems desirable and to procure
insurance for employees; (6) to invest any funds
not needed for immediate use or disbursement in
obligations issued or guaranteed by the United
States of America or the state of Connecticut,
including the Short Term Investment Fund, and the
Tax-Exempt Proceeds Fund, and in other obligations
which are legal investments for savings banks in
this state and in time deposits or certificates of
deposit or other similar banking arrangements
secured in such manner as the authority
determines; and (7) to do all acts and things
necessary or convenient to carry out the purposes
of and the powers expressly granted by this
section.
(c) In addition to the powers enumerated in
subsection (b) of this section, with respect to
the convention center project the authority shall
have the following powers: (1) To acquire, by
gift, purchase, condemnation or transfer, lands or
rights-in-land in connection therewith and to
sell, lease as lessee or as lessor, provided that
such activity is consistent with all applicable
federal tax covenants of the authority, transfer
or dispose of any property or interest therein
acquired by it, at any time and to receive and
accept aid or contributions, from any source, of
money, labor, property or other things of value,
to be held, used and applied to carry out the
purposes of this section, subject to the
conditions upon which such grants and
contributions are made, including, but not limited
to, gifts or grants from any department, agency or
instrumentality of the United States or this state
for any purpose consistent with this section; (2)
to condemn properties which may be necessary or
desirable to effectuate the purposes of the
authority with respect to the convention center
project to be exercised in accordance with the
provisions of chapter 835 of the general statutes;
(3) to formulate plans for, acquire, finance and
develop, lease, purchase, construct, reconstruct,
repair, improve, expand, extend, operate, maintain
and market the convention center project, provided
such activities are consistent with all applicable
federal tax covenants of the authority; (4) to
contract and be contracted with provided, if
management, operating or promotional contracts or
agreements or other contracts or agreements are
entered into with nongovernmental parties with
respect to property financed with the proceeds of
obligations the interest on which is excluded from
gross income for federal income taxation, the
board of directors shall ensure that such
contracts or agreements are in compliance with the
covenants of the authority upon which such tax
exclusion is conditioned; (5) to enter into
arrangements or contracts to either purchase or
lease, on a fully completed turn key basis, the
convention center project and to enter into a
contract or contracts with an entity, or entities,
for operating and managing of such convention
center project; (6) to fix and revise, from time
to time, and to charge and collect fees, rents and
other charges for the use, occupancy or operation
of such projects, and to establish and revise from
time to time, regulations in respect of the use,
operation and occupancy of any such project,
provided such regulations are consistent with all
applicable federal tax covenants of the authority;
(7) to engage architects, engineers, attorneys,
accountants, consultants and such other
independent professionals as may be necessary or
desirable to carry out its purposes; to contract
for construction, development, concessions and the
procurement of goods and services and to establish
and modify procurement procedures from time to
time to implement the foregoing in accordance with
the provisions of subdivision (2) of this
subsection; (8) to adopt procedures with respect
to contractors and subcontractors engaged in the
construction of such projects which require such
contractors or subcontractors (A) to take
affirmative action to provide equal opportunity
for employment without discrimination as to race,
creed, color, national origin or ancestry or
gender, and (B) to ensure that the wages paid on
an hourly basis to any mechanic, laborer or
workman employed by such contractor or
subcontractor with respect to the project shall be
at a rate equal to the rate customary or
prevailing for the same work in the same trade or
occupation in the town and city of Hartford; (9)
to borrow money and to issue bonds, notes and
other obligations of the authority to the extent
permitted under section 8 of this act, to fund and
refund the same and to provide for the rights of
the holders thereof and to secure the same by
pledge of assets, revenues, notes and state
contract assistance as provided in section 9 of
this act; (10) to do anything necessary and
desirable, including executing reimbursement
agreements or similar agreements in connection
with credit facilities, including, but not limited
to, letters of credit or policies of bond
insurance, remarketing agreements and agreements
for the purpose of moderating interest rate
fluctuations, to render any bonds to be issued
pursuant to section 8 of this act more marketable;
and (11) to engage in and contract for marketing
and promotional activities to attract national,
regional and local conventions, sports events,
trade shows, exhibitions, banquets and other
events to maximize the use of the convention
center project.
Sec. 4. (NEW) The board of directors of the
Capital City Economic Development Authority shall
adopt written procedures, in accordance with the
provisions of section 1-121 of the general
statutes, for: (1) Adopting an annual budget and
plan of operations, which shall include a
requirement of board approval before the budget or
plan may take effect; (2) hiring, dismissing,
promoting and compensating employees of the
authority, which shall include an affirmative
action policy and a requirement of board approval
before a position may be created or a vacancy
filled; (3) acquiring real and personal property
and personal services, which shall include a
requirement of board approval for any nonbudgeted
expenditure in excess of five thousand dollars;
(4) contracting for financial, legal, bond
underwriting and other professional services which
shall include a requirement that the authority
solicit proposals at least once every three years
for each such service which it uses; (5) issuing
and retiring bonds, notes and other obligations of
the authority; (6) providing financial assistance,
which shall include eligibility criteria, the
application process and the role played by the
authority's staff and board of directors; and (7)
the use of surplus funds.
Sec. 5. (NEW) (a) The Capital City Economic
Development Authority shall conduct a feasibility
and implementation study to determine the
financial feasibility of the convention center
project, as defined in subdivision (3) of section
1 of this act, which shall include, but not be
limited to, consideration of proper planning,
engineering, siting, cost of construction, revenue
and expense projections and operation as a
multipurpose facility or facilities.
(b) The authority shall determine if the
feasibility and implementation study clearly
establishes the financial viability of (1) the
convention center, (2) the sports megaplex, or (3)
both, along with ancillary facilities.
(c) If the authority determines the project is
economically viable, the authority shall submit a
report to the speaker of the House of
Representatives, the president pro tempore of the
Senate and the majority and minority leaders of
both houses. Four of the six leaders may, within
sixty days, reject such report and notify the
authority and the State Bond Commission of such
rejection.
(d) The authority shall monitor the progress
of all capital city projects and shall, on a
regular basis, determine the extent to which each
such project has, up to that point, met the
purposes set forth in section 3 of this act. The
authority shall report semiannually to the
Governor and the General Assembly in accordance
with the provisions of section 11-4a of the
general statutes with respect to the operations,
finances and achievement of its economic
development objectives.
(e) The authority shall review and evaluate
the progress of each capital city project, for
which financing is provided and shall devise and
employ techniques for forecasting and measuring
relevant indicies of accomplishment of its goals
of economic development, including, but not
limited to, (1) the number of jobs created, or to
be created, by or as a result of the project, (2)
the cost or estimated cost, to the authority,
involved in the creation of those jobs, (3) the
amount of private capital investment in, or
stimulated by, a project, in proportion to the
public funds invested in such project, (4) the
number of additional businesses created and
associated jobs, and (5) the impact on tourism.
Sec. 6. (NEW) (a) In lieu of the report
required under section 1-123 of the general
statutes, within the first ninety days of each
fiscal year of the Capital City Economic
Development Authority, the board of directors of
the authority shall submit a report to the
Governor, the Auditors of Public Accounts and the
joint standing committee of the General Assembly
having cognizance of matters relating to finance,
revenue and bonding. Such report shall include,
but not be limited to, the following: (1) A list
of all bonds issued during the preceding fiscal
year, including, for each such issue, the
financial advisor and underwriters, whether the
issue was competitive, negotiated or privately
placed, and the issue's face value and net
proceeds; (2) a description of the capital city
project, its location and the amount of funds, if
any, provided by the authority with respect to the
construction of such project; (3) a list of all
outside individuals and firms, including principal
and other major stockholders, receiving in excess
of five thousand dollars as payments for services;
(4) a comprehensive annual financial report
prepared in accordance with generally accepted
accounting principles for governmental
enterprises; (5) the cumulative value of all bonds
issued, the value of outstanding bonds and the
amount of the state's contingent liability; (6)
the affirmative action policy statement, a
description of the composition of the work force
of the authority by race, sex and occupation and a
description of the affirmative action efforts of
the authority; (7) a description of planned
activities for the current fiscal year; and (8) an
analysis of the authority's success in achieving
the purposes stated in section 3 of this act.
(b) In lieu of the audit required under
section 1-222 of the general statutes, the board
of directors of the authority shall annually
contract with a person, firm or corporation for a
compliance audit of the authority's activities
during the preceding authority fiscal year. The
audit shall determine whether the authority has
complied with its regulations concerning
affirmative action, personnel practices, the
purchase of goods and services and the use of
surplus funds. The board shall submit the audit
report to the Governor, the Auditors of Public
Accounts and the joint standing committee of the
General Assembly having cognizance of matters
relating to finance, revenue and bonding.
(c) The board of directors of the authority
shall annually contract with a firm of certified
public accountants to undertake an independent
financial audit of the authority in accordance
with generally accepted auditing standards. The
board shall submit the audit report to the
Governor, the Auditors of Public Accounts and the
joint standing committee of the General Assembly
having cognizance of matters relating to finance,
revenue and bonding. The books and accounts of the
authority shall be subject to annual audits by the
state Auditors of Public Accounts.
(d) On January 15, 2001, the authority shall
submit to the Governor and to the joint standing
committee of the General Assembly having
cognizance of matters relating to finance, revenue
and bonding, a two-year performance review report
detailing for each capital city project undertaken
to date under the program, the progress made and
the actual expenditures compared to original
estimated costs. Not later than sixty calendar
days after receipt of said report, such joint
committee shall consider the report and determine
whether there has been insufficient progress or
whether there has been significant cost increases
over original estimates. If so, the committee may
make recommendations for appropriate action to the
authority and to the General Assembly.
Sec. 7. (NEW) (a) Any person, including, but
not limited to, a state or municipal agency,
requesting funds from the state, including, but
not limited to, any authority created by the
general statutes or any public or special act,
with respect to any capital city project, shall,
at the time it makes such request for funds from
the state, present a full and complete copy of its
application or request, along with any supporting
documents or exhibits, to the Capital City
Economic Development Authority for its
recommendation and to the Secretary of the Office
of Policy and Management. The authority shall, not
later than ninety days after receipt of such
application or request, prepare and adopt a
capital city economic development statement,
summarizing its recommendations with respect to
such application or request, and deliver such
statement to the state officer, official, employee
or agent of the state or authority to whom such
application or request was made. The
recommendations in such statement shall include
contract provisions regarding performance
standards, including, but not limited to, project
timelines.
(b) Notwithstanding any other provision of the
general statutes, public or special acts, any
regulation or procedure or any other law, no
officer, official, employee or agent of the state
or any authority created by the general statutes
or any public or special act, shall expend any
funds on any capital city project, unless such
officer, official, employee or agent has received
a capital city economic development statement
adopted by the authority pursuant to subsection
(a) of this section, provided, if no such
statement is received by the time ninety days have
elapsed from the date of the initial application
or request for such funds, such funds may be
expended. If funds are expended pursuant to this
subsection in a manner not consistent with the
recommendations contained in a capital city
economic development statement for such
expenditure, the officer, official, employee or
agent of the state expending such funds shall
respond in writing to the authority, providing an
explanation of the decision with respect to such
expenditure.
(c) The authority shall not adopt any
statement recommending funding for any capital
city project, unless and until the town and city
of Hartford has created a municipal parking
authority in accordance with chapter 100 of the
general statutes and has transferred, or scheduled
the transfer of, in a legally binding way, the
rights and responsibilities of the municipality
for all municipally-owned or operated parking
facilities, as defined in section 7-202 of the
general statutes.
(d) The authority shall coordinate the use of
all state and municipal planning and financial
resources that are or can be made available for
any capital city project, including any resources
available from any quasi-public agency.
(e) All state and municipal agencies,
departments, boards, commissions and councils
shall cooperate with the Capital City Economic
Development Authority in carrying out the purposes
enumerated in section 3 of this act.
(f) The powers and duties granted to the
authority pursuant to this section shall terminate
July 1, 2008.
Sec. 8. (NEW) (a) The board of directors of
the Capital City Economic Development Authority is
authorized from time to time to issue its bonds,
notes and other obligations in such principal
amounts as in the opinion of the board shall be
necessary to provide sufficient funds for carrying
out the purposes set forth in section 3 of this
act with respect to the convention center project
as defined in subdivision (3) of section 1 of this
act, including the payment, funding or refunding
of the principal of, or interest or redemption
premiums on, any bonds, notes and other
obligations issued by it whether the bonds, notes
or other obligations or interest to be funded or
refunded have or have not become due, the
establishment of reserves to secure such bonds,
notes and other obligations and all other
expenditures of the authority incident to and
necessary or convenient to carry out the purposes
set forth in section 3 of this act.
(b) Except as may be otherwise expressly
provided in this section or by the board, every
issue of bonds, notes or other obligations, shall
be a general obligation of the authority payable
out of any moneys or revenues of the authority
subject only to any agreements with the holders of
particular bonds, notes or other obligations
pledging any particular moneys or revenues. Any
such bonds, notes or other obligations may be
additionally secured by a pledge of any state
contract assistance as provided in section 9 of
this act, any grant or contributions from any
department, agency or instrumentality of the
United States or person or a pledge of any moneys,
income or revenues of the authority from any
source whatsoever.
(c) Notwithstanding any other provision of any
law, any bonds, notes or other obligations issued
by the authority pursuant to this section shall be
fully negotiable within the meaning and for all
purposes of title 42a of the general statutes. Any
such bonds, notes or other obligations shall be
legal investments for all trust companies, banks,
investment companies, savings banks, building and
loan associations, executors, administrators,
guardians, conservators, trustees and other
fiduciaries and pension, profit-sharing and
retirement funds.
(d) Bonds, notes or other obligations of the
authority shall be authorized by resolution of the
board of directors of the authority and may be
issued in one or more series and shall bear such
date or dates, mature at such time or times, in
the case of any such note, or any renewal thereof,
not exceeding the term of years as the board shall
determine from the date of the original issue of
such notes, and, in the case of bonds, not
exceeding thirty years from the date thereof, bear
interest at such rate or rates, be in such
denomination or denominations, be in such form,
either coupon or registered, carry such conversion
or registration privileges, have such rank or
priority, be executed in such manner, be payable
from such sources in such medium of payment at
such place or places within or without this state,
and be subject to such terms of redemption, with
or without premium, as such resolution or
resolutions may provide.
(e) Bonds, notes or other obligations of the
authority may be sold at public or private sale at
such price or prices as the board shall determine.
(f) Bonds, notes or other obligations of the
authority may be refunded and renewed from time to
time as may be determined by resolution of the
board, provided any such refunding or renewal
shall be in conformity with any rights of the
holders thereof.
(g) Bonds, notes or other obligations of the
authority issued under the provisions of this
section shall not be deemed to constitute a debt
or liability of the state or of any political
subdivision thereof other than the authority or a
pledge of the faith and credit of the state or of
any such political subdivision other than the
authority, and shall not constitute bonds or notes
issued or guaranteed by the state within the
meaning of section 3-21 of the general statutes,
but shall be payable solely from the funds as
provided in this section. All such bonds, notes or
other obligations shall contain on the face
thereof a statement to the effect that neither the
state of Connecticut nor any political subdivision
thereof other than the authority shall be
obligated to pay the same or the interest thereof
except from revenues or other funds of the
authority and that neither the faith and credit
nor the taxing power of the state of Connecticut
or of any political subdivision thereof other than
the authority is pledged to the payment of the
principal of or the interest on such bonds, notes
or other obligations.
(h) Any resolution or resolutions authorizing
the issuance of bonds, notes or other obligations
may contain provisions, except as limited by
existing agreements with the holders of bonds,
notes or other obligations, which shall be a part
of the contract with the holders thereof, as to
the following: (1) The pledging of all or any part
of the moneys received by the authority to secure
the payment of the principal of and interest on
any bonds, notes or other obligations or of any
issue thereof; (2) the pledging of all or part of
the assets of the authority to secure the payment
of the principal and interest on any bonds, notes
or other obligations or of any issue thereof; (3)
the establishment of reserves or sinking funds,
the making of charges and fees to provide for the
same, and the regulation and disposition thereof;
(4) limitations on the purpose to which the
proceeds of sale of bonds, notes or other
obligations may be applied and pledging such
proceeds to secure the payment of the bonds, notes
or other obligations, or of any issues thereof;
(5) limitations on the issuance of additional
bonds, notes or other obligations, the terms upon
which additional bonds, bond anticipation notes or
other obligations may be issued and secured, the
refunding or purchase of outstanding bonds, notes
or other obligations of the authority; (6) the
procedure, if any, by which the terms of any
contract with the holders of any bonds, notes or
other obligations of the authority may be amended
or abrogated, the amount of bonds, notes or other
obligations the holders of which must consent
thereto and the manner in which such consent may
be given; (7) limitations on the amount of moneys
to be expended by the authority for operating,
administrative or other expenses of the authority;
(8) the vesting in a trustee or trustees of such
property, rights, powers and duties in trust as
the authority may determine, which may include any
or all of the rights, powers and duties of any
trustee appointed by the holders of any bonds,
notes or other obligations and limiting or
abrogating the right of the holders of any bonds,
notes or other obligations of the authority to
appoint a trustee or limiting the rights, powers
and duties of such trustee; (9) provision for a
trust agreement by and between the authority and a
corporate trustee which may be any trust company
or bank having the powers of a trust company
within or without the state, which agreement may
provide for the pledging or assigning of any
assets or income from assets to which or in which
the authority has any rights or interest, and may
further provide for such other rights and remedies
exercisable by the trustee as may be proper for
the protection of the holders of any bonds, notes
or other obligations of the authority and not
otherwise in violation of law. Such agreement may
provide for the restriction of the rights of any
individual holder of bonds, notes or other
obligations of the authority. All expenses
incurred in carrying out the provisions of such
trust agreement may be treated as a part of the
cost of operation of the authority. The trust
agreement may contain any further provisions which
are reasonable to delineate further the respective
rights, duties, safeguards, responsibilities and
liabilities of the authority, individual and
collective holders of bonds, notes and other
obligations of the authority and the trustees;
(10) covenants to do or refrain from doing such
acts and things as may be necessary or convenient
or desirable in order to better secure any bonds,
notes or other obligations of the authority, or
which, in the discretion of the authority, will
tend to make any bonds, notes or other obligations
to be issued more marketable notwithstanding that
such covenants, acts or things may not be
enumerated herein; and (11) any other matters of
like or different character, which in any way
affect the security or protection of the bonds,
notes or other obligations.
(i) Any pledge made by the authority of
income, revenues, state contract assistance
provided under section 9 of this act, or other
property shall be valid and binding from the time
the pledge is made, and shall constitute a pledge
within the meaning and for all purposes of title
42a of the general statutes. The income, revenue,
state contract assistance, such state taxes as the
authority shall be entitled to receive or other
property so pledged and thereafter received by the
authority shall immediately be subject to the lien
of such pledge without any physical delivery
thereof or further act, and the lien of any such
pledge shall be valid and binding as against all
parties having claims of any kind in tort,
contract or otherwise against the authority,
irrespective of whether such parties have notice
thereof.
(j) The board of directors of the authority is
authorized and empowered to obtain from any
department, agency or instrumentality of the
United States any insurance or guarantee as to, or
of or for the payment or repayment of, interest or
principal, or both, or any part thereof, on any
bonds, notes or other obligations issued by the
authority pursuant to the provisions of this
section and, notwithstanding any other provisions
of sections 1 to 12, inclusive, of this act, to
enter into any agreement, contract or any other
instrument whatsoever with respect to any such
insurance or guarantee except to the extent that
such action would in any way impair or interfere
with the authority's ability to perform and
fulfill the terms of any agreement made with the
holders of the bonds, bond anticipation notes or
other obligations of the authority.
(k) Neither the members of the board of
directors of the authority nor any person
executing bonds, notes or other obligations of the
authority issued pursuant to this section shall be
liable personally on such bonds, notes or other
obligations or be subject to any personal
liability or accountability by reason of the
issuance thereof, nor shall any director or
employee of the authority be personally liable for
damage or injury, not wanton, reckless, wilful or
malicious, caused in the performance of his duties
and within the scope of his employment or
appointment as such director, officer or employee.
The authority shall protect, save harmless and
indemnify its directors, officers or employees
from financial loss and expense, including legal
fees and costs, if any, arising out of any claim,
demand, suit or judgment by reason of alleged
negligence or alleged deprivation of any person's
civil rights or any other act or omission
resulting in damage or injury, if the director,
officer or employee is found to have been acting
in the discharge of his duties or within the scope
of his employment and such act or omission is
found not to have been wanton, reckless, wilful or
malicious.
(l) The board of directors of the authority
shall have power to purchase bonds, notes or other
obligations of the authority out of any funds
available for such purpose. The authority may
hold, cancel or resell such bonds, notes or other
obligations subject to and in accordance with
agreements with holders of its bonds, notes and
other obligations.
(m) All moneys received pursuant to the
authority of this section, whether as proceeds
from the sale of bonds or as revenues, shall be
deemed to be trust funds to be held and applied
solely as provided in this section. Any officer
with whom, or any bank or trust company with
which, such moneys shall be deposited shall act as
trustee of such moneys and shall hold and apply
the same for the purposes of section 3 of this
act, and the resolution authorizing the bonds of
any issue or the trust agreement securing such
bonds may provide.
(n) Any holder of bonds, notes or other
obligations issued under the provisions of this
section, and the trustee or trustees under any
trust agreement, except to the extent the rights
herein given may be restricted by any resolution
authorizing the issuance of, or any such trust
agreement securing, such bonds may, either at law
or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all
rights under the laws of the state or granted
under this section or under such resolution or
trust agreement, and may enforce and compel the
performance of all duties required by this section
or by such resolution or trust agreement to be
performed by the authority or by any officer,
employee or agent thereof, including the fixing,
charging and collecting of the rates, rents, fees
and charges herein authorized and required by the
provisions of such resolution or trust agreement
to be fixed, established and collected.
(o) The authority may make representations and
agreements for the benefit of the holders of any
bonds, notes or other obligations of the state
which are necessary or appropriate to ensure the
exclusion from gross income for federal income tax
purposes of interest on bonds, notes or other
obligations of the state from taxation under the
Internal Revenue Code of 1986 or any subsequent
corresponding internal revenue code of the United
States, as from time to time amended, including
agreement to pay rebates to the federal government
of investment earnings derived from the investment
of the proceeds of the bonds, notes or other
obligations of the authority. Any such agreement
may include: (1) A covenant to pay rebates to the
federal government of investment earnings derived
from the investment of the proceeds of the bonds,
notes or other obligations of the authority; (2) a
covenant that the authority will not limit or
alter its rebate obligations until its obligations
to the holders or owners of such bonds, notes or
other obligations are finally met and discharged;
and (3) provisions to (A) establish trust and
other accounts which may be appropriate to carry
out such representations and agreements, (B)
retain fiscal agents as depositories for such
funds and accounts, and (C) provide that such
fiscal agents may act as trustee of such funds and
accounts.
(p) No bonds, notes or other obligations shall
be issued by the authority unless such bonds,
notes or other obligations have been approved for
issuance by the State Bond Commission following
(1) a finding that such issuance is in the public
interest, and (2) a filing with the clerks of the
General Assembly of a certificate of the Secretary
of the Office of Policy and Management and the
State Treasurer pursuant to subsection (a) of
section 9 of this act and until bonds of the state
authorized pursuant to section 20 of this act,
have been approved for issuance by the State Bond
Commission for such project.
Sec. 9. (NEW) (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 8
of this act to finance the costs of the convention
center project, as defined in subdivision (3) of
section 1 of this act. 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.
Sec. 10. (NEW) With the concurrence of the
Secretary of the Office of Policy and Management
and the State Treasurer, the Capital City Economic
Development Authority may submit an application to
the Connecticut Development Authority on behalf of
the convention center project as defined in
subdivision (3) of section 1 of this act, for a
loan or loans consistent with the requirements of
chapter 579 of the general statutes and the
Connecticut Development Authority is hereby
authorized to review such application as a package
for the purposes of its requirements, including
eligibility for federal or state funding in
addition to the financing applied for. Any loan by
the Connecticut Development Authority to the
Capital City Economic Development Authority shall
be evidenced by the general obligation bond of
such authority, in fully marketable form, duly
executed and accompanied by an approving legal
opinion with respect to validity, security and tax
matters as would otherwise be required in a public
offering. Any loan with respect to the hotel or
other portions of private investment pertaining to
the convention center project shall be on such
terms and conditions as the Connecticut
Development Authority requires to satisfy its
eligibility for financing of a loan from the
proceeds of its general obligation program bonds.
Sec. 11. (NEW) The exercise of the powers
granted by section 3 of this act constitute the
performance of an essential governmental function
and the Capital City Economic Development
Authority shall not be required to pay any taxes
or assessments upon or in respect of the
convention center project, as defined in section 1
of this act, levied by any municipality or
political subdivision or special district having
taxing powers of the state and such project and
the principal and interest of any bonds and notes
issued under the provisions of section 8 of this
act, their transfer and the income therefrom,
including revenues derived from the sale thereof,
shall at all times be free from taxation of every
kind by the state of Connecticut or under its
authority, except for estate or succession taxes
but the interest on such bonds and notes shall be
included in the computation of any excise or
franchise tax.
Sec. 12. (NEW) The state of Connecticut does
hereby pledge to and agree with the holders of any
bonds, notes and other obligations issued under
section 8 of this act and with those parties who
may enter into contracts with the Capital City
Economic Development Authority or its successor
agency, that the state will not limit or alter the
rights hereby vested in the authority or in the
holders of any bonds, notes or other obligations
of the authority to which contract assistance is
pledged pursuant to section 9 of this act until
such obligations, together with the interest
thereon, are fully met and discharged and such
contracts are fully performed on the part of the
authority, provided nothing contained herein shall
preclude such limitation or alteration if and when
adequate provision shall be made by law for the
protection of the holders of such bonds, notes and
other obligations of the authority or those
entering into contracts with the authority. The
authority is authorized to include this pledge and
undertaking for the state in such bonds, notes and
other obligations or contracts.
Sec. 13. Subsection (l) of section 1-79 of the
general statutes, as amended by section 17 of
public act 97-5 of the June 18 special session and
section 1 of public act 97-6 of the June 18
special session, is repealed and the following is
substituted in lieu thereof:
(l) "Quasi-public agency" means the
Connecticut Development Authority, Connecticut
Innovations, Incorporated, Connecticut Health and
Education Facilities Authority, Connecticut Higher
Education Supplemental Loan Authority, Connecticut
Housing Finance Authority, Connecticut Housing
Authority, Connecticut Resources Recovery
Authority, Connecticut Hazardous Waste Management
Service, Lower Fairfield County Convention Center
Authority, [Connecticut Convention Center
Authority] CAPITAL CITY ECONOMIC DEVELOPMENT
AUTHORITY and Connecticut Coastline Port
Authority.
Sec. 14. Subdivision (1) of section 1-120 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(1) "Quasi-public agency" means the
Connecticut Development Authority, Connecticut
Innovations, Incorporated, Connecticut Health and
Educational Facilities Authority, Connecticut
Higher Education Supplemental Loan Authority,
Connecticut Housing Finance Authority, Connecticut
Housing Authority, Connecticut Resources Recovery
Authority, Connecticut Hazardous Waste Management
Service, Connecticut Coastline Port Authority,
CAPITAL CITY ECONOMIC DEVELOPMENT AUTHORITY and
Connecticut Lottery Corporation.
Sec. 15. Section 1-125 of the general statutes
is repealed and the following is substituted in
lieu thereof:
The directors, officers and employees of the
Connecticut Development Authority, Connecticut
Innovations, Incorporated, Connecticut Higher
Education Supplemental Loan Authority, Connecticut
Housing Finance Authority, Connecticut Housing
Authority, Connecticut Resources Recovery
Authority, Connecticut Health, CAPITAL CITY
ECONOMIC DEVELOPMENT AUTHORITY and Educational
Facilities Authority, Connecticut Lottery
Corporation and Connecticut Coastline Port
Authority and any person executing the bonds or
notes of the agency shall not be liable personally
on such bonds or notes or be subject to any
personal liability or accountability by reason of
the issuance thereof, nor shall any director or
employee of the agency be personally liable for
damage or injury, not wanton, reckless, wilful or
malicious, caused in the performance of his or her
duties and within the scope of his or her
employment or appointment as such director,
officer or employee. The agency shall protect,
save harmless and indemnify its directors,
officers or employees from financial loss and
expense, including legal fees and costs, if any,
arising out of any claim, demand, suit or judgment
by reason of alleged negligence or alleged
deprivation of any person's civil rights or any
other act or omission resulting in damage or
injury, if the director, officer or employee is
found to have been acting in the discharge of his
or her duties or within the scope of his or her
employment and such act or omission is found not
to have been wanton, reckless, wilful or
malicious.
Sec. 16. Subsection (d) of section 32-23d of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) "Project" means any facility, plant,
works, system, building, structure, utility,
fixture or other real property improvement located
in the state, any machinery, equipment, furniture,
fixture or other personal property to be located
in the state and the land on which it is located
or which is reasonably necessary in connection
therewith, which is of a nature or which is to be
used or occupied by any person for purposes which
would constitute it as an economic development
project, public service project, urban project,
recreation project, commercial fishing project,
health care project, THE CONVENTION CENTER
PROJECT, AS DEFINED IN SUBDIVISION (3) OF SECTION
1 OF THIS ACT, or nonprofit project, and any real
property improvement reasonably related thereto. A
project may be acquired (1) directly or (2)
indirectly through the purchase of all or
substantially all of the stock of a corporation. A
project shall not include new materials, work in
process, stock in trade or stock of a corporation.
Sec. 17. (NEW) (a) A downtown higher education
center project, as described in section 1 of this
act, shall be developed by the Department of
Public Works in consultation with the Board of
Trustees of the Community-Technical Colleges, in
accordance with the procedure for designated
projects as provided in subdivision (4) of section
4b-24 of the general statutes except that said
project shall not require approval by the State
Properties Review Board.
(b) (1) No payments shall be made by the
department on account of any downtown higher
education center project contract awarded by or
for the department until the bills or estimates
presented for such payment shall have been duly
certified to be correct by the department. No
payments shall be made from any other fund on
account of any contract for a downtown higher
education center project awarded until the bills
or estimates presented for such payment shall have
been duly certified to be correct by the
department.
(2) Provision shall be made in each contract
to the effect that payment is limited to the
amount provided therein and that no liability of
the state shall and may be incurred beyond such
amount.
(3) The department shall require, for the
protection of the state, such deposits, bonds and
security in connection with the submission of
bids, the award of project contracts and the
performance of work as the department shall
determine to be appropriate and in the public
interest of the state.
(c) For the purposes of part III of chapter
557 of the general statutes, authority projects
shall be deemed to be a state public works project
and consist of public buildings.
Sec. 18. (NEW) (a) Any environmental permit or
approval required or permitted to be issued and
any administrative action required or permitted to
be taken pursuant to the general statutes in
connection with on-site work supervised by the
Department of Public Works or off-site work
supervised by the Department of Transportation for
a convention center project, downtown higher
education center project or a riverfront
infrastructure development and improvement
project, as defined in subparagraphs (A), (B) and
(D), respectively, of subdivision (2) of section 1
of this act, shall be in accordance with the
procedure set forth in this section.
(b) Notwithstanding any provision of the
general statutes, any license, permit and approval
required or permitted to be issued and any
administrative action required or permitted to be
taken pursuant to the general statutes in
connection with a convention center project,
downtown higher education center project or a
riverfront infrastructure development and
improvement project, as defined in subparagraphs
(A), (B) and (D), respectively, of subdivision (2)
of section 1 of this act, shall be issued or taken
upon application to the particular commissioner or
commissioners having jurisdiction over such
license, permit, approval or other administrative
action or such other state official as such
commissioner shall designate. As used in this
section, the term commissioner shall mean
commissioners if more than one commissioner has
jurisdiction over the subject matter and their
designee, if any. No agency, commission, council,
committee, panel or other body whatsoever other
than such commissioner shall have jurisdiction
over or cognizance of any licenses, permits,
approvals or administrative actions concerning any
project and no notice of any tentative
determination or any final determination regarding
any such license, permit, approval or
administrative action and no notice of any such
license, permit, approval or administrative action
shall be required except as expressly provided
pursuant to this subsection. For purposes of this
section a downtown higher education center
project, riverfront infrastructure development and
improvement project and a convention center
project, shall be treated as if each is a state
facility and accordingly, no ordinance, law or
regulation promulgated by or any authority granted
to any municipality or any other political
subdivision of the state shall apply to an
authority project.
(c) All applications, supporting documentation
and other records submitted to the commissioner
and pertaining to any application for any license,
permit, approval or other administrative action,
together with all records of the proceedings of
the commissioner relating to any license, permit,
approval or administrative action shall be a
public record and shall be made, maintained and
disclosed in accordance with the Freedom of
Information Act, as defined in section 1-18a of
the general statutes, as amended.
(d) All applications for licenses, permits,
approvals and other administrative action required
by any applicable provision of the general
statutes shall be submitted to the commissioner as
provided in subsection (b) of this subsection. The
commissioner shall adopt a master process to
consider multiple licenses, permits, approvals and
administrative actions to the extent practicable.
Each license or permit shall be issued, approval
shall be granted and administrative action shall
be taken not later than ten business days after
the date of submission of any application for such
license, permit, approval or administrative action
to the commissioner. Each application for a
license or permit shall be deemed to have been
issued, approval shall be deemed to have been
granted and administrative action shall be deemed
to have been taken as requested unless such
application has been denied, or conditionally
issued prior to the close of business on the tenth
business day after either the date of submission
of such application, or a hearing is held on such
application pursuant to this section.
(e) (1) Any hearing regarding all or any part
of any project, provided for by this section,
shall be conducted by the particular commissioner
having jurisdiction over the applicable license,
permit, approval or other administrative action.
Legal notice of such hearing shall be published in
a newspaper having general circulation in an area
which includes the municipality in which the
particular part of such project is proposed to be
built or is being built not more than ten nor less
than five days in advance of such hearing.
(2) In rendering any decision in connection
with any project, the commissioner shall weigh all
competent material and substantial evidence
presented by the applicant and the public in
accordance with the applicable statute. The
commissioner shall issue written findings and
determinations upon which its decision is based.
Such findings and determinations shall consist of
evidence presented including such matters as the
commissioner deems appropriate, provided such
matters, to the extent applicable to the
particular permit, shall include the nature of any
major adverse health and environmental impact of
any project. The commissioner may reverse or
modify any order or action at any time on the
commissioner's own motion. The procedure for such
reversal or modification shall be the same as the
procedure for the original proceeding.
(3) Any administrative action taken by any
commissioner in connection with any project may be
appealed by an aggrieved party to the superior
court for the judicial district of Hartford-New
Britain in accordance with the provisions of
section 4-183 of the general statutes. Such appeal
shall be brought within ten days of the date of
mailing to the parties to the proceeding of a
notice of such order, decision or action by
certified mail, return receipt requested, and the
appellant shall serve a copy of the appeal on each
party listed in the final decision at the address
shown in such decision. Failure to make such
service within such ten days on parties other then
the commissioner who rendered the final decision
may not, in the discretion of the court, deprive
the court of jurisdiction over such appeal. Within
ten days after the service of such appeal, or
within such further time as may be allowed by the
court, the commissioner which rendered such
decision shall cause any portion of the record
that had not been transcribed to be transcribed
and shall cause either the original or a certified
copy of the entire record of the proceeding
appealed from to be transmitted to the reviewing
court. Such record shall include the
commissioner's findings of fact and conclusions of
law, separately stated. If more than one
commissioner has jurisdiction over the matter,
such commissioners shall issue joint findings of
fact and conclusions of law. Such appeal shall
state the reasons upon which it is predicated and,
notwithstanding any provisions of the general
statutes, shall not stay the development of any
project. The commissioner which rendered such
decision shall appear as the respondent. Such
appeals to the superior court shall each be
privileged matters and shall be heard as soon
after the return date as practicable. A court
shall render its decision not later than
twenty-one days after the date that the entire
record, with the transcript, is filed with the
court by the commissioner who rendered the
decision.
(4) The court shall not substitute its
judgment for that of the commissioner as to the
weight of the evidence presented on a question of
fact. The court shall affirm the decision of the
commissioner unless the court finds that
substantial rights of the party appealing such
decision have been materially prejudiced because
the findings, inferences, conclusions or decisions
of the commissioner are in violation of
constitutional or statutory provisions, in excess
of the statutory authority of the commissioner,
made upon unlawful procedure, affected by an error
of law, clearly erroneous in view of the reliable,
probative and substantial evidence on the whole
record, or arbitrary, capricious or characterized
by abuse of discretion or clearly unwarranted
exercise of discretion.
(5) If the court finds material prejudice, it
may sustain the appeal. Upon sustaining an appeal,
the court may render a judgment which modifies the
decision of the commissioner, orders particular
action of the commissioner or orders the
commissioner to take such action as may be
necessary to effect a particular action and the
commissioner may issue a permit consistent with
such judgment.
(6) An applicant may file an amended
application and the commissioner may consider an
amended application for an order, permit or other
administrative action following court action.
Sec. 19. Subsections (a) and (b) of section
32-305 of the general statutes, as amended by
section 4 of public act 97-238 and section 37 of
public act 97-11 of the June 18 special session,
are repealed and the following is substituted in
lieu thereof:
(a) The Commissioner of Revenue Services shall
segregate (1) one and one-half per cent of the
gross receipts from sales within the meaning of
subdivision (h) of subsection (2) of section
12-407 by any hotel or lodging house located in
any municipality having a population of less than
sixty-five thousand, (2) three and one-half per
cent of the gross receipts from such sales in any
municipality having a population of sixty-five
thousand or more but less than seventy-five
thousand, and (3) four and one-half per cent of
the gross receipts from such sales in any
municipality having a population of seventy-five
thousand or more, provided the commissioner shall
segregate three and one-half per cent of the gross
receipts from such sales in the municipality
having the most popular tourist attraction in the
state, as determined by the Office of Tourism, if
such municipality has a population of less than
sixty-five thousand. Such segregated funds shall
be allocated to tourism districts established
under section 32-302 as follows: The portion of
the funds attributable to such tax receipts in a
municipality shall be allocated to the tourism
district in which the municipality is located,
provided (A) [one hundred] NINETY per cent of the
amount attributable to such gross receipts from
sales in Hartford shall be allocated to the
[Connecticut Convention Center Authority] CAPITAL
CITY ECONOMIC DEVELOPMENT AUTHORITY AND TEN PER
CENT OF THE AMOUNT ATTRIBUTABLE TO SUCH GROSS
RECEIPTS FROM SALES IN HARTFORD SHALL BE ALLOCATED
TO THE GREATER HARTFORD ARTS COUNCIL, (B)
seventy-five per cent of the amount attributable
to such gross receipts from sales in New Haven
shall be allocated to the New Haven Coliseum
Authority, (C) seventy-five per cent of the amount
attributable to such gross receipts from sales in
Stamford shall be allocated to the Stamford Center
for the Arts, (D) seventy-five per cent of the
amount attributable to such gross receipts from
sales in Norwalk shall be allocated to the
Maritime Center Authority, and (E) seventy-five
per cent of the amount attributable to such gross
receipts from sales in Bridgeport shall be
allocated to the Greater Fairfield district
established in section 32-302, for the sole
purpose of marketing tourist attractions located
in Bridgeport. If for any state fiscal year the
amount of the allocation under subparagraph (E) is
less than the amount of funds allocated during the
fiscal year ending June 30, 1991, to the then
existing Bridgeport Convention and Visitors
Bureau, pursuant to sections 7-136b and 7-136c of
the general statutes, revised to January 1, 1991,
the Connecticut Tourism Council shall provide a
grant under section 32-300, from the tourism
account, in the amount of such difference, to said
Greater Fairfield district for the purpose set
forth in subparagraph (E). Notwithstanding the
provisions of this section, during the fiscal year
ending June 30, 1998, the Commissioner of Revenue
Services shall segregate one hundred fifty
thousand dollars from any increase in receipts of
such amount segregated under this section during
the fiscal year ending June 30, 1997, and shall
allocate such segregated amount to the Connecticut
Film, Video and Media Office established under
section 32-86a, provided the amount segregated and
allocated to any entity under this section is not
less than the amount segregated and allocated
during the fiscal year ending June 30, 1997. Not
later than January 1, 1999, and annually
thereafter, each tourism district and each
authority receiving funds under this section shall
submit to the Connecticut Tourism Council a full
audit of the books and accounts of the district or
authority for the preceding fiscal year at the
same time that an audit is submitted to the Office
of Policy and Management under subsection (f) of
section 32-302. Each such audit shall be conducted
by an independent certified public accountant. The
Commissioner of Revenue Services shall also
segregate an additional one million dollars of the
sales tax receipts from such sales in the state
during each state fiscal year and allocate such
funds to the cultural heritage development account
established under section 10-373bb. The
Commissioner of Revenue Services may adopt
regulations, in accordance with the provisions of
chapter 54, concerning accounting procedures
necessary to carry out the purposes of this
section.
(b) Except as provided by law, a tourism
district, convention center authority [or]
coliseum authority OR THE CAPITAL CITY ECONOMIC
DEVELOPMENT AUTHORITY, as the case may be, may
borrow money to pay its obligations that cannot be
paid at maturity out of current revenue from such
allocations, but shall not borrow a sum greater
than can be repaid out of the allocations
anticipated during the year in which the money is
borrowed. The tourism district, convention center
authority or coliseum authority, as the case may
be, may pledge its securities to secure the
repayment of any sum so borrowed.
Sec. 20. (NEW) (a) For the purposes described
in subsection (b) of this section the State Bond
Commission shall have power, from time to time but
in no case later than June 30, 2005, to authorize
the issuance of bonds of the state, in one or more
series and in principal amounts and in the
aggregate not exceeding one hundred fifty-five
million dollars provided one hundred fifty-three
million dollars of said authorization shall be
effective July 1, 1999, and such additional
amounts as may be required in connection with the
costs of issuance of the bonds including bond
anticipation, temporary and interim notes, the
proceeds of which shall be used by the State
Treasurer to pay the costs of issuance, provided
in computing the total amount of bonds which may
at any one time be outstanding, the principal
amount of any refunding bonds issued to refund
bonds shall be excluded.
(b) The proceeds of the sale of said bonds, to
the extent of the amount stated in subsection (a)
of this section, shall be used by the Department
of Economic and Community Development for a
grant-in-aid to the Capital City Economic
Development Authority for the convention center
project, as defined in subdivision (3) of section
1 of this act, provided no amount of said
authorization that is effective July 1, 1999,
shall be issued under this section until the
Capital City Economic Development Authority
certifies to the State Bond Commission that it has
received a commitment by agreement, contract or
other legally enforceable instrument with private
investors or developers: (1) For the construction
of a hotel in conjunction with the convention
center project with a minimum private investment
of forty million dollars; and (2) an additional
minimum private, investment of one hundred seventy
million dollars in either the convention center
project or in related commercial development
within the capital city economic development
district, as defined in section 1 of this act
which the authority has determined would not have
been developed but for the development of the
convention center project. For purposes of this
subsection, private investment includes
investments by state or municipal pension funds.
(c) All provisions of section 3-20 of the
general statutes, or the exercise of any right or
power granted thereby which are not inconsistent
with the provisions of this section are hereby
adopted and shall apply to all bonds authorized by
the State Bond Commission pursuant to said section
3-20, and temporary or interim notes in
anticipation of the money to be derived from the
sale of any such bonds so authorized may be issued
in accordance with said section 3-20 and from time
to time renewed provided no filings required by
subdivisions (1) and (2) of subsection (g) of said
section 3-20 shall be required. Such bonds shall
mature at such time or times not exceeding twenty
years from either their respective dates. None of
said bonds shall be authorized except upon a
finding by the State Bond Commission that there
has been filed with it a request for such
authorization, which is signed by the Secretary of
the Office of Policy and Management stating such
terms and conditions as said commission, in its
discretion, may require. Such bonds issued
pursuant to this section shall be general
obligations of the state and the full faith and
credit of the state of Connecticut are pledged for
the payment of the principal of and interest on
such bonds, including temporary or interim notes,
as the same become due, and accordingly and as
part of the contract of the state with the holders
of such bonds, appropriation of all amounts
necessary for punctual payment of such principal
and interest is hereby made including with respect
to interest on temporary or interim notes and
principal thereof to the extent not funded with
renewals thereof or bonds, and the State Treasurer
shall pay such principal and interest as the same
become due.
(d) For the purposes of this section "state
moneys" means the proceeds of the sale of bonds
authorized pursuant to section 3-20 of the general
statutes, or of temporary or interim notes issued
in anticipation of the moneys to be derived from
the sale of such bonds. Request filed for an
authorization of bonds shall identify the project
for which the proceeds of the sale of such bonds
are to be used and expended and, if applicable,
shall include the recommendation of the secretary
as to the extent to which federal, private or
other moneys then available or thereafter to be
made available for costs in connection with such
project should be added to the state moneys
available or becoming available hereunder for such
project. If the request includes a recommendation
that some amount of such federal, private or other
moneys should be added to such state moneys, then,
if and to the extent directed by the State Bond
Commission at the time of authorization of such
bonds, said amount of such federal, private or
other moneys then available or thereafter to be
made available for costs in connection with such
project may be added to any state moneys available
or becoming available hereunder for such project
and be used for such project as if constituting
such state moneys, and any other federal, private
or other moneys then available or thereafter to be
made available for costs in connection with such
project, if and to the extent from time to time
directed by the State Bond Commission, upon
receipt shall, in conformity with applicable
federal and state law, be used for the purposes
for which such other moneys are received in
accordance with the proceedings of the State Bond
Commission, and otherwise by the State Treasurer
to meet the principal of outstanding bonds issued
pursuant to this section or to meet the principal
of temporary or interim notes issued in
anticipation of the money to be derived from the
sale of bonds theretofore authorized pursuant to
said section 3-20 for the purpose of financing
such costs, either by purchase or redemption and
cancellation of such bonds or notes or by payment
thereof at maturity. Whenever any of the federal,
private or other moneys so received with respect
to such project are used to meet principal of such
temporary or interim notes or whenever principal
on any such temporary or interim notes is retired
by application of revenue receipts of the state,
the amount of bonds theretofore authorized in
anticipation of which such temporary or interim
notes were issued, and the aggregate amount of
bonds which may be authorized pursuant to this
section, shall each be reduced by the amount of
the principal so met or retired. Pending use of
the federal, private or other moneys so received
to meet principal as hereinabove directed, the
amount thereof may be invested by, or at the
direction of, the State Treasurer in bonds or
obligations of, or guaranteed by, the state or the
United States or agencies or instrumentalities of
the United States, or in accordance with the
provisions of said section 3-20, and shall be
deemed to be part of the debt retirement funds of
the state, and net earnings on such investments
shall be used in the same manner as the said
moneys so invested.
(e) Any balance of proceeds of the sale of
said bonds authorized by this section in excess of
the aggregate costs of the project so authorized
shall be used to meet interest and principal
amounts as the same become due on said bonds
authorized.
(f) Net earnings on investment of proceeds,
accrued interest and premiums on the issuance of
any of such bonds authorized by this section after
payment of expenses incurred by the State
Treasurer or State Bond Commission in connection
with their issuance, if any, shall be used to meet
interest and principal amounts as the same become
due on said bonds authorized.
Sec. 21. (a) For the purposes described in
subsection (b) of this section, the State Bond
Commission shall have the power, from time to
time, but in no case later than June 30, 2005, to
authorize the issuance of bonds of the state in
one or more series and in principal amounts not
exceeding in the aggregate thirty million dollars.
(b) The proceeds of the sale of said bonds, to
the extent of the amount stated in subsection (a)
of this section, shall be used by the Regional
Community-Technical College System for the purpose
of development of the downtown higher education
center project, as defined in section 1 of this
act.
(c) All provisions of section 3-20 of the
general statutes, or the exercise of any right or
power granted thereby which are not inconsistent
with the provisions of this section are hereby
adopted and shall apply to all bonds authorized by
the State Bond Commission pursuant to this
section, and temporary notes in anticipation of
the money to be derived from the sale of any such
bonds so authorized may be issued in accordance
with said section 3-20 and from time to time
renewed. Such bonds shall mature at such time or
times not exceeding twenty years from their
respective dates as may be provided in or pursuant
to the resolution or resolutions of the State Bond
Commission authorizing such bonds. None of said
bonds shall be authorized except upon a finding by
the State Bond Commission that there has been
filed with it a request for such authorization,
which is signed by or on behalf of the Secretary
of the Office of Policy and Management and states
such terms and conditions as said commission, in
its discretion, may require. Said bonds issued
pursuant to this section shall be general
obligations of the state and the full faith and
credit of the state of Connecticut are pledged for
the payment of the principal of and interest on
said bonds as the same become due, and accordingly
and as part of the contract of the state with the
holders of said bonds, appropriation of all
amounts necessary for punctual payment of such
principal and interest is hereby made, and the
State Treasurer shall pay such principal and
interest as the same become due.
Sec. 22. (NEW) (a) For the purposes described
in subsection (b) of this section the State Bond
Commission shall have power, from time to time but
in no case later than June 30, 2005, to authorize
the issuance of bonds of the state, in one or more
series and in principal amounts and in the
aggregate not exceeding one hundred fifteen
million dollars and such additional amounts as may
be required in connection with the costs of
issuance of the bonds including bond anticipation,
temporary and interim notes, the proceeds of which
shall be used by the State Treasurer to pay the
costs of issuance, provided in computing the total
amount of bonds which may at any one time be
outstanding, the principal amount of any refunding
bonds issued to refund bonds shall be excluded.
(b) The proceeds of the sale of said bonds, to
the extent of the amount stated in subsection (a)
of this section, shall be used by the Department
of Economic and Community Development for
grants-in-aid for capital city projects as
follows:
(1) For the Civic Center and coliseum complex
renovation and rejuvenation project, not exceeding
fifteen million dollars;
(2) For the riverfront infrastructure
development and improvement project, not exceeding
twenty-five million dollars provided no amount
shall be issued under this subdivision until the
Commissioner of Economic and Community Development
certifies to the State Bond Commission that it has
received a commitment by agreement, contract or
other legally enforceable instrument with private
investors or developers for a minimum private
investment equal to the amount of bonds at the
time such bonds are issued pursuant to this
subdivision taken together with any previous
commitments; and provided further, twelve million
dollars of said authorization shall be effective
July 1, 1999, and seven million dollars of said
authorization shall be effective July 1, 2001;
(3) For housing projects, as defined in
subparagraph (E) of subdivision (2) of section 1
of this act, not exceeding thirty-five million
dollars, provided seven million dollars of said
authorization shall be effective July 1, 1999,
fourteen million dollars of said authorization
shall be effective July 1, 2000, and fourteen
million dollars of said authorization shall be
effective July 1, 2001;
(4) For demolition projects, as defined in
subparagraph (E) of subdivision (2) of section 1
of this act, not exceeding twenty-five million
dollars, provided seven million dollars of said
authorization shall be effective July 1, 1999,
eight million dollars of said authorization shall
be effective July 1, 2000, and five million
dollars of said authorization shall be effective
July 1, 2001;
(5) For parking projects, as defined in
subparagraph (F) of subdivision (2) of section 1
of this act, not exceeding fifteen million dollars
provided five million dollars of said
authorization shall be effective July 1, 1999, and
five million dollars of said authorization shall
be effective July 1, 2000.
(c) All provisions of section 3-20 of the
general statutes, or the exercise of any right or
power granted thereby which are not inconsistent
with the provisions of this section are hereby
adopted and shall apply to all bonds authorized by
the State Bond Commission pursuant to said section
3-20, and temporary or interim notes in
anticipation of the money to be derived from the
sale of any such bonds so authorized may be issued
in accordance with said section 3-20 and from time
to time renewed provided no filings required by
subdivisions (1) and (2) of subsection (g) of said
section 3-20 shall be required. Such bonds shall
mature at such time or times not exceeding twenty
years from either their respective dates. None of
said bonds shall be authorized except upon a
finding by the State Bond Commission that there
has been filed with it a request for such
authorization, which is signed by the Secretary of
the Office of Policy and Management stating such
terms and conditions as said commission, in its
discretion, may require. Such bonds issued
pursuant to section 20 of this act shall be
general obligations of the state and the full
faith and credit of the state of Connecticut are
pledged for the payment of the principal of and
interest on such bonds, including temporary or
interim notes, as the same become due, and
accordingly and as part of the contract of the
state with the holders of such bonds,
appropriation of all amounts necessary for
punctual payment of such principal and interest is
hereby made including with respect to interest on
temporary or interim notes and principal thereof
to the extent not funded with renewals thereof or
bonds, and the State Treasurer shall pay such
principal and interest as the same become due.
(d) For the purposes of this section "state
moneys" means the proceeds of the sale of bonds
authorized pursuant to section 3-20 of the general
statutes, or of temporary or interim notes issued
in anticipation of the moneys to be derived from
the sale of such bonds. Request filed for an
authorization of bonds shall identify the project
for which the proceeds of the sale of such bonds
are to be used and expended and, if applicable,
shall include the recommendation of the secretary
as to the extent to which federal, private or
other moneys then available or thereafter to be
made available for costs in connection with such
project should be added to the state moneys
available or becoming available hereunder for such
project. If the request includes a recommendation
that some amount of such federal, private or other
moneys should be added to such state moneys, then,
if and to the extent directed by the State Bond
Commission at the time of authorization of such
bonds, said amount of such federal, private or
other moneys then available or thereafter to be
made available for costs in connection with such
project may be added to any state moneys available
or becoming available hereunder for such project
and be used for such project as if constituting
such state moneys, and any other federal, private
or other moneys then available or thereafter to be
made available for costs in connection with such
project, if and to the extent from time to time
directed by the State Bond Commission, upon
receipt shall, in conformity with applicable
federal and state law, be used for the purposes
for which such other moneys are received in
accordance with the proceedings of the State Bond
Commission, and otherwise by the State Treasurer
to meet the principal of outstanding bonds issued
pursuant to this section or to meet the principal
of temporary or interim notes issued in
anticipation of the money to be derived from the
sale of bonds theretofore authorized pursuant to
said section 3-20 for the purpose of financing
such costs, either by purchase or redemption and
cancellation of such bonds or notes or by payment
thereof at maturity. Whenever any of the federal,
private or other moneys so received with respect
to such project are used to meet principal of such
temporary or interim notes or whenever principal
on any such temporary or interim notes is retired
by application of revenue receipts of the state,
the amount of bonds theretofore authorized in
anticipation of which such temporary or interim
notes were issued, and the aggregate amount of
bonds which may be authorized pursuant to this
section, shall each be reduced by the amount of
the principal so met or retired. Pending use of
the federal, private or other moneys so received
to meet principal as hereinabove directed, the
amount thereof may be invested by, or at the
direction of, the State Treasurer in bonds or
obligations of, or guaranteed by, the state or the
United States or agencies or instrumentalities of
the United States, or in accordance with the
provisions of said section 3-20, and shall be
deemed to be part of the debt retirement funds of
the state, and net earnings on such investments
shall be used in the same manner as the said
moneys so invested.
(e) Any balance of proceeds of the sale of
said bonds authorized by this section in excess of
the aggregate costs of the project so authorized
shall be used to meet interest and principal
amounts as the same become due on said bonds
authorized.
(f) Net earnings on investment of proceeds,
accrued interest and premiums on the issuance of
any of such bonds authorized by this section after
payment of expenses incurred by the State
Treasurer or State Bond Commission in connection
with their issuance, if any, shall be used to meet
interest and principal amounts as the same become
due on said bonds authorized.
Sec. 23. (a) As used in this section and
section 24 of this act:
(1) "Application" means the application with
respect to the Steel Point Project submitted to
the authority for participation in the tax
incremental financing program pursuant to this
act;
(2) "Authority" means the Connecticut
Development Authority;
(3) "City" means the town and city of
Bridgeport;
(4) "Developer" means a developer selected by
the city through a request for proposal process to
develop the Steel Point Project;
(5) "Steel Point Project area" means all or
any portion of the area in the vicinity of the
city's harbor known as the Steel Point site as
delineated in the Steel Point Project area plan
approved by the city's redevelopment agency and
submitted as part of the application, as such
project area plan may be amended from time to time
by the city's redevelopment agency, provided any
amendment to such plan made after the submission
of the application shall require approval of the
authority;
(6) "Project area taxes" means the following
taxes generated within the Steel Point Project
area: (A) All sales and use taxes collected under
chapter 219 of the general statutes except that
(i) the percentage of such sales tax segregated
and allocated to a tourism district pursuant to
section 32-305 of the general statutes shall be
excluded in calculating project area taxes and
(ii) retail sales taxes shall be excluded to the
extent they exceed thirty per cent of total retail
sales taxes generated within the Steel Point
Project area; and (B) all admissions, cabaret and
dues taxes collected under chapter 225 of the
general statutes;
(7) "Project businesses" means all persons
operating any business, on and after the effective
date of this act, located within the Steel Point
Project area including, but not limited to, retail
stores, restaurants, theaters, hotels, convention
centers, docks and marine facilities and other
recreation and entertainment facilities;
(8) "Retail sales taxes" means the sales taxes
generated by the sale of personal property to
consumers by Steel Point Project businesses in the
ordinary course of their business;
(9) "Steel Point Project" means the
undertaking of one or more of the following
activities within the Steel Point Project area:
(A) The acquisition of land and improvements
thereon by gift, purchase, or eminent domain and
the demolition, removal or rehabilitation of those
improvements; (B) the development, redevelopment,
revitalization or conservation of the Steel Point
Project area through the construction,
reconstruction or rehabilitation of buildings and
infrastructure improvements including, but not
limited to, the rail system, roadways, bulkheads,
docks, environmental pollution control facilities,
parking facilities or other improvements therein.
Such development also may include, but not be
limited to, the construction of commercial and
office space, hotels, restaurants, a conference
center, a movie theatre complex, educational and
cultural facilities, a retail shopping center,
docks and marina facilities and other recreation
and entertainment facilities; and (C) the
provision of grants, loans, security or other
assistance to the city or the developer in
connection with any of the foregoing activities;
and shall further mean the provision of financial
and other assistance in the relocation of persons
displaced by the Steel Point Project including
assistance for relocation outside of the Steel
Point Project area in accordance with the
provisions of chapter 135 of the general statutes.
(b) There is hereby established a tax
incremental financing program under which the
project area taxes which are generated by the
Steel Point Project may be used to pay the debt
service on bonds issued under this act by the
authority to help finance the Steel Point Project
subject to the limitations of subsection (i) of
this section.
(c) In order to implement the provisions of
this section, the city shall submit the
application to the authority in accordance with
the provisions of this subsection. The application
shall contain such information as the authority
may require, including, but not limited to: (1)
Information concerning the type of businesses
proposed to be established and their location
within the Steel Point Project area; (2) the
number of jobs to be created or retained and their
average wage rates; (3) feasibility studies or
business plans for the Steel Point Project and
other information necessary to demonstrate its
financial viability; (4) the amounts and types of
bonds proposed to be issued for the Steel Point
Project and the proposed use of the proceeds; (5)
a geographic description of the area surrounding
the proposed site of the Steel Point Project and
the existing firms doing business in that area;
(6) an economic impact assessment of the effects
of the Steel Point Project on the city and the
surrounding region; (7) an assessment of the
project area taxes to be generated by the Steel
Point Project; (8) an analysis of necessary
infrastructure development to support the Steel
Point Project and any available sources of
financing for such infrastructure; and (9) other
information which demonstrates that the bonds
shall be self-sustaining from the project area
taxes to be derived as a result of the
construction and operation of the various phases
of the Steel Point Project. The authority shall
impose a fee for the application in the amount of
twenty-five thousand dollars. Any costs incurred
by the authority which are associated with the
application and are not covered by such fee shall
be paid from funds of the authority which are not
otherwise committed or pledged.
(d) (1) In reviewing the application, the
authority shall obtain such additional information
as may be necessary to make a final determination.
The authority may require the city and the
developer to submit such additional information as
may be necessary to evaluate the application.
(2) The authority shall retain financial
consultants nationally recognized in financing or
development of major commercial real estate
projects and other experts as it deems appropriate
to conduct an independent financial assessment of
the application and supporting information,
including: (A) The amount of the project area
taxes and incremental property taxes to be
generated by the various phases of the Steel Point
Project; (B) whether the Steel Point Project is
reasonably expected to be economically viable; (C)
whether project area taxes and incremental
property taxes to be derived as a result of the
construction and operation of the various phases
of the Steel Point Project, together with other
dedicated sources of financing available to pay
debt service on the bonds, will be sufficient to
pay principal and interest on the bonds issued
under this section and section 24 of this act as
they come due; (D) whether the developer's
estimates or determinations of costs, time of
construction, availability of financing and
projected cash flows and income streams of the
various phases of the Steel Point Project are each
commercially reasonable; and (E) a determination
of the overall economic impact of the Steel Point
Project on the city and the state. Such financial
consultants' findings shall be addressed to, with
authorization that they may be relied upon by, the
authority, the Office of Policy and Management and
the State Bond Commission.
(e) (1) Upon consideration of the application,
the results of the independent financial
assessment and any additional information that the
board of directors of the authority requires
concerning the Steel Point Project, such board of
directors shall determine whether to approve the
Steel Point Project for participation in the tax
incremental financing program and, if so, the
amount and type of bonds the authority shall issue
to support the Steel Point Project, the purposes
for which the funds generated by sale of the bonds
may be applied and the amount of the project area
taxes that shall be allocated to pay principal and
interest over the term that the bonds are
scheduled to be outstanding. The amount of project
area taxes so allocated shall not exceed the
estimated aggregate amount of project area taxes
to be collected over the term that the bonds are
scheduled to be outstanding. The amount required
for payment of principal and interest on the bonds
issued in accordance with subsection (f) of this
section shall be deemed appropriated from the
General Fund.
(2) The authority may approve financing for
the Steel Point Project only if it concludes that:
(A) The project area taxes to be derived as a
result of the construction and operation of the
Steel Point Project, together with other dedicated
sources of financing available to pay debt service
on the bonds, will be sufficient to pay principal
and interest on the bonds as they come due; (B)
the Steel Point Project will be economically
viable and will contribute significantly to
economic development and employment opportunity in
the state; (C) the direct and indirect economic
benefits of the Steel Point Project to the state
and the city will be greater than the costs to the
state and the city; and (D) (i) the developer is
obligated to complete construction of any phase of
the Steel Point Project then to be constructed the
construction of which is necessary to generate
project area taxes needed to fund the bonds then
to be issued and (ii) the developer has sufficient
resources to complete such construction.
(3) The approval of the Steel Point Project by
the authority may be combined with the exercise of
any of its other powers, including, but not
limited to, the provision of other forms of
financial assistance. The proceeds of the bonds
may be combined with any other funds available
from state, city or federal programs, or from
investments by the private sector, to support the
Steel Point Project.
(4) Upon approving the Steel Point Project,
the authority may require the developer to
reimburse the authority for all or any part of the
costs of the independent financial assessment
conducted in reviewing the application and any
other related costs incurred by the authority.
(5) As a condition to approving the Steel
Point Project, the authority shall consider all
issues relevant to the sale and payment of any
bonds to be issued under this section and may
require any appropriate measures to secure the
public interest in the payment of interest and
principal on such bonds.
(f) (1) The authority may issue, from time to
time, but in no case later than January 1, 2003,
one or more series of bonds in accordance with the
provisions of chapter 579 of the general statutes,
to the extent not inconsistent with the provisions
of this subsection, payable in whole or in part
from the project area taxes allocated and deemed
appropriated from the General Fund under
subsection (e) of this section to finance the
various phases of the Steel Point Project as
approved under this section or, at any time, to
refund bonds previously issued under this section.
The authority may make a grant of all or part of
the proceeds of such bonds to any person in
connection with the Steel Point Project, including
the state or the city, or any instrumentality or
agency of the state or the city, to defray their
expenses in connection with the Steel Point
Project. Subject to applicable federal tax law,
the authority may issue such bonds, the interest
on which is excludable from gross income for
federal income tax purposes, or such bonds, the
interest on which is not so excludable. The
authority, when authorizing the issuance of any
series of such bonds, shall, in conjunction with
the State Treasurer, determine the rate of
interest of such bonds, the date or dates of their
maturity, the medium of payment, the redemption
terms and privileges, whether such bonds shall be
sold by negotiated or competitive sale and any and
all other terms, covenants and conditions not
inconsistent with this section, in connection with
the issuance thereof, including, but not limited
to, the creation of capitalized interest or
operating reserves and the pledging of special
capital reserve funds authorized under subsection
(b) of section 32-23j of the general statutes.
(2) The issuance of any bonds by the authority
pursuant to this section shall be subject to the
approval of the State Bond Commission. If the
authority approves bonding for the Steel Point
Project, the authority shall submit the matter to
the State Bond Commission for final approval. In
reaching its decision, the State Bond Commission
may consider the information considered by the
authority, the independent financial assessment
and such other financial information as it deems
appropriate. After such approval by the State Bond
Commission, no other approval shall be required
for the issuance of bonds pursuant to this section
to support the Steel Point Project.
(3) Prior to the issuance of any bonds by the
authority pursuant to this section, the developer
shall deliver to the authority security for its
performance of that phase of the Steel Point
Project then to be constructed.
(4) The issuance of any bonds by the authority
pursuant to this section shall be deemed issued
under section 32-285 of the general statutes for
purposes of calculating the state debt limitation
pursuant to section 3-21 of the general statutes.
(g) For such period of time as bonds issued to
support the Steel Point Project are outstanding,
the State Treasurer shall make payment of interest
and principal on the bonds to the trustee when
due, but not exceeding in any fiscal year the
amount deemed appropriated pursuant to subsection
(f) of this section.
(h) The authority is authorized to issue bonds
pursuant to this section, from time to time in one
or more series, in the aggregate outstanding
principal amount not to exceed the lesser of: (1)
One hundred twenty million dollars; or (2) twenty
per cent of the projected costs including, but not
limited to, loan proceeds, investments and tenant
improvements expended by both the private and
public sector to complete the development and
construction of the Steel Point Project as
certified by the developer. Such limits on the
maximum amount of bonds that may be issued
pursuant to this section shall be exclusive of all
issuance costs, discounts, reserves and credit
enhancement costs.
(i) (1) Not later than July first in each year
that bonds issued to support the Steel Point
Project are outstanding, the authority shall
submit a report to the joint standing committee of
the General Assembly having cognizance of matters
relating to finance, revenue and bonding with
respect to the operations, finances and
achievement of the economic development objectives
of the Steel Point Project. The authority shall
review and evaluate the progress of the Steel
Point Project and shall devise and employ
techniques for forecasting and measuring relevant
indices of accomplishment of its goals of economic
development, including, but not limited to, (A)
for the construction period, the actual
expenditures compared to original estimated costs
and whether there has been significant cost
increases over original estimates, (B) the number
of jobs created, or to be created, by or as a
result of the Steel Point Project, (C) the cost or
estimated cost, to the authority, involved in the
creation of those jobs, (D) the amount of private
capital investment in, or stimulated by, the Steel
Point Project, in proportion to the public funds
invested in such project, (E) the number of
additional businesses created and associated jobs,
and (F) the impact on tourism.
(2) Not later than July first in each year
that bonds issued to support the Steel Point
Project are outstanding, the Office of Policy and
Management shall retain nationally recognized
independent financial experts to conduct an
analysis of the financial status of the Steel
Point Project. The independent financial analysis
shall include, but not be limited to,
determinations as to whether the project area
taxes actually generated by the Steel Point
Project are equal to the estimates made at the
time the Steel Point Project was approved, whether
the Steel Point Project is economically viable and
whether project area taxes to be derived as a
result of the construction and operation of the
various phases of the Steel Point Project,
together with other dedicated sources of financing
available to pay debt service on the bonds, will
be sufficient to pay principal and interest on the
bonds as they come due. The authority shall
require the developer to reimburse the Office of
Policy and Management for the costs of such annual
analyses. The results of such analyses shall be
made available to the chairpersons and ranking
members of the joint standing committee of the
General Assembly having cognizance of matters
relating to finance, revenue and bonding.
(j) Each of the Steel Point Project businesses
shall be required to calculate and deliver to the
authority a report as to the amount of project
area taxes generated by such person on an annual
basis or on such other basis as required by the
authority.
(k) In accordance with the provisions of
section 32-462 of the general statutes, the
authority, the Department of Economic and
Community Development or Connecticut Innovation,
Incorporated are hereby authorized to provide
financial assistance to the Steel Point Project,
in any two-year period, in an aggregate amount
exceeding ten million dollars. The authority, the
Department of Economic and Community Development
or Connecticut Innovations, Incorporated are
hereby authorized to provide financial assistance
to the Steel Point Project in an aggregate amount
not to exceed two hundred million dollars when
combined with any funds from the city for the
Steel Point Project, exclusive of all issuance
costs, discounts, reserves, credit enhancement
costs and financial assistance from any other
state agency or the federal government. Such
financial assistance may be provided in the form
of grants, loans, loan guarantees, contracts of
insurance, investments, or combinations thereof,
which are provided from the proceeds of bonds,
notes or other obligations of the state or an
agency which constitute a debt or liability of the
state or which are secured by a special capital
reserve fund payable from amounts appropriated or
deemed appropriated from the General Fund
including, without limitation, from bond proceeds
issued pursuant to section 4-66c of the general
statutes.
Sec. 24. (a) As used in this section:
(1) "Bonds" means any bonds including
refunding bonds, notes, debentures or other
obligations issued pursuant to this section;
(2) "Incremental property taxes" means the
amount by which all real and personal property
taxes levied and collected within the Steel Point
Project area or portion thereof together with
payments in lieu of such taxes and reimbursements
from state tax reimbursement programs with respect
to such taxes exceed for each fiscal year that
amount of such real and personal property taxes,
payments in lieu of such taxes or reimbursement
from state tax reimbursement programs with respect
to such taxes, or all of them, which would be
produced by applying the then current tax rate to
the total sum of the assessed value of the taxable
real and personal property in the Steel Point
Project area on the effective date of the approval
of the financing of such phase of the Steel Point
Project by the city council;
(3) "City council" means the city council of
the town and city of Bridgeport; and
(4) "Committee" means a committee consisting
of the director of finance, the treasurer and the
mayor of the city.
(b) For the purpose of assisting in the
financing of the Steel Point Project, the city may
issue, subject only to the limitations and
procedures set forth in this section, from time to
time, one or more issues of bonds of the city
which are payable solely from and secured by: (1)
A pledge of, and lien upon, any or all of the
income, proceeds and revenues and property of the
Steel Point Project or portion thereof, including
the proceeds of grants, state tax reimbursement
programs, loans, advances or contributions or
financial assistance from the federal government,
the state or other sources; (2) the incremental
property taxes; or (3) any combination of the
methods in subdivisions (1) and (2) of this
subsection.
(c) Any bonds payable and secured as provided
in this section shall be authorized by a
resolution adopted by the city council. No such
resolution shall be adopted until after a public
hearing has been held upon such authorization.
Notice of such hearing shall be published not less
than five days prior to such hearing in a
newspaper having a general circulation in the
city. Such bonds shall be issued and sold in such
manner; bear interest at such rate or rates,
including variable rates; provide for the payment
of interest on such dates; be issued at, above or
below par; mature at such time or times not
exceeding thirty years from their date of
issuance; have such rank or priority; be payable
in such medium of payment; be issued in registered
or book-entry form, carry such registration and
transfer privileges and be made subject to
purchase or redemption before maturity at such
price or prices and under such terms and
conditions, including the condition that such
bonds be subject to purchase or redemption on the
demand of the owner thereof and contain such other
terms and particulars as the city council or the
committee may determine. The city council or the
committee may approve any or all of the following:
(1) Provisions respecting custody of the proceeds
from the sale of the bonds and any bond
anticipation notes, including any requirements
that such proceeds be held separate from or not be
commingled with other funds of the city; (2)
provisions for the investment and reinvestment of
bond proceeds until such proceeds are used to pay
costs of the Steel Point Project and for the
disposition of any excess bond proceeds or
investment earnings thereon; (3) provisions for
the execution of reimbursement agreements or
similar agreements including, but not limited to,
letters of credit or policies of bond insurance,
remarketing agreements and agreements for the
purpose of moderating interest rate fluctuations;
(4) provisions for the collection, custody,
investment, reinvestment and use of pledged
revenues or other receipts, funds or moneys
pledged for payment of bonds as provided in this
section; (5) provisions regarding the
establishment and maintenance of reserves, sinking
funds and any other funds and accounts and the
regulation and disposition thereof, including
requirements that any such funds and accounts be
held separate from or not be commingled with other
funds of the city; (6) covenants for the
establishment of maintenance requirements with
respect to facilities and properties; (7)
provisions for the issuance of additional bonds on
a parity with bonds issued prior to the issuance
of such additional bonds, including establishment
of coverage requirements with respect to such
bonds as provided in this section; (8) provisions
regarding the rights and remedies available to the
bond owners, note owners or any trustee under any
contract, loan agreement, document, instrument or
trust indenture in case of a default, including
the right to appoint a trustee to represent their
interests upon occurrence of any event of default,
as defined in any such default proceedings,
provided if any bonds or bond anticipation notes
are secured by a trust indenture, the respective
owners of such bonds or notes shall have no
authority except as set forth in such trust
indenture to appoint a separate trustee to
represent them; and (9) other provisions or
covenants of like or different character from the
foregoing which are consistent with this section
and which the committee determines in such
proceedings are necessary, convenient or desirable
in order to better secure the bonds or bond
anticipation notes or will tend to make the bonds
or bond anticipation notes more marketable and
which are in the best interests of the city.
(d) Any pledge made by the city shall be valid
and binding from the time when the pledge is made
and any revenues or other receipts, funds or
moneys so pledged and thereafter received by the
city shall be subject immediately to the lien of
such pledge without any physical delivery thereof
or further act. The lien of any such pledge shall
be valid and binding as against all parties having
claims of any kind in tort, contract or otherwise
against the city, irrespective of whether such
parties have notice of such lien. Such pledge will
be perfected without any need to record any
instrument or document. The city may enter into a
trust indenture which may be any trust company or
bank having the powers of a trust company within
or without the city. Such trust indenture may
contain such provisions for protecting and
enforcing the rights and remedies of the bond
owners and note owners as may be reasonable and
proper and not in violation of law, including
covenants setting forth the duties of the city in
relation to the exercise of its power pursuant to
this section and the custody, safeguarding and
application of all moneys. The city may provide by
such trust indenture for the payment of the
pledged revenues or other receipts, funds or
moneys to the trustee under such trust indenture
or to any other depository, and for the method of
disbursement thereof, with such safeguards and
restrictions as it may determine. All expenses
incurred in carrying out such trust indenture may
be treated as project costs. Such bonds shall not
be included in computing the aggregate
indebtedness of the city provided, if such bonds
are made payable, in whole or in part, from funds
contracted to be advanced by the city, the
aggregate amount of such funds not yet
appropriated to such purpose shall be included in
computing the aggregate indebtedness of the city.
Sec. 25. Subsection (j) of section 32-285 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(j) (1) Not later than July first in each year
that bonds issued to support an approved project
are outstanding, the authority shall submit a
report [on the implementation of the provisions of
this section] to the joint standing committees of
the General Assembly having cognizance of matters
relating to the Department of Economic and
Community Development and finance, revenue and
bonding WITH RESPECT TO THE OPERATIONS, FINANCES
AND ACHIEVEMENT OF THE ECONOMIC DEVELOPMENT
OBJECTIVES OF THE PROJECTS APPROVED UNDER THIS
SECTION. THE AUTHORITY SHALL REVIEW AND EVALUATE
THE PROGRESS OF EACH PROJECT AND SHALL DEVISE AND
EMPLOY TECHNIQUES FOR FORECASTING AND MEASURING
RELEVANT INDICES OF ACCOMPLISHMENT OF ITS GOALS OF
ECONOMIC DEVELOPMENT, INCLUDING, BUT NOT LIMITED
TO, (A) THE ACTUAL EXPENDITURES COMPARED TO
ORIGINAL ESTIMATED COSTS, (B) WHETHER THERE HAVE
BEEN SIGNIFICANT COST INCREASES OVER ORIGINAL
ESTIMATES, (C) THE NUMBER OF JOBS CREATED, OR TO
BE CREATED, BY OR AS A RESULT OF THE PROJECT, (D)
THE COST OR ESTIMATED COST, TO THE AUTHORITY,
INVOLVED IN THE CREATION OF THOSE JOBS, (E) THE
AMOUNT OF PRIVATE CAPITAL INVESTMENT IN, OR
STIMULATED BY, THE PROJECT, IN PROPORTION TO THE
PUBLIC FUNDS INVESTED IN SUCH PROJECT, (F) THE
NUMBER OF ADDITIONAL BUSINESSES CREATED AND
ASSOCIATED JOBS, AND (G) ANY IMPACT ON TOURISM.
(2) Not later than July first in each year
that bonds issued to support an approved project
are outstanding, the Office of Policy and
Management shall retain independent financial
experts to conduct an analysis of the financial
status of each project approved under this
section. The independent financial analysis shall
include, but not be limited to, determinations as
to whether the incremental sales and admissions,
cabaret and dues taxes actually generated by the
project are equal to the estimates made at the
time the project was approved, whether the project
is economically viable and whether the bonds
issued are self-sustaining with the incremental
taxes actually collected and other financing
sources dedicated to repayment of the bonds. The
authority shall require the project sponsor to
reimburse the Office of Policy and Management for
the costs of such annual analyses. The results of
such analyses shall be made available to THE
PRESIDENT PRO TEMPORE OF THE SENATE, THE SPEAKER
OF THE HOUSE OF REPRESENTATIVES, THE MAJORITY AND
MINORITY LEADERS OF BOTH HOUSES, AND TO the
chairpersons and ranking members of said
committees.
Sec. 26. Subsection (k) of section 32-285 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(k) No commitments for new projects shall be
approved by the authority under this section on or
after [July 1, 1998] JULY 1, 2001.
Sec. 27. (a) In accordance with the provisions
of section 32-462 of the general statutes, the
Department of Economic and Community Development,
the Connecticut Development Authority or
Connecticut Innovations, Incorporated is hereby
authorized to provide financial assistance to the
town and city of New Haven for the purpose of
improvements in the Long Wharf area of said town
and city, in any two-year period, in an aggregate
amount exceeding ten million dollars.
(b) The town and city of New Haven is
authorized to apply for tax increment financing in
accordance with the provisions of section 32-285
of the general statutes, as amended by this act,
to provide financial assistance to said town and
city for the purpose of improvements in the Long
Wharf area of said town and city and the
Connecticut Development Authority is authorized to
issue up to twenty-eight million dollars of tax
increment financing under the program established
under said section.
Sec. 28. Subsection (g) of section 32-285 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(g) (1) The authority may issue one or more
series of bonds in accordance with the provisions
of chapter 579, to the extent not inconsistent
with the provisions of this subsection, payable in
whole or in part from the incremental taxes
allocated and deemed appropriated from the state
General Fund under subsection (f) of this section
and any amounts contributed by a municipality
under subsection (i) of this section, to finance a
project approved under this section or to refund
bonds previously issued under this section. The
authority is authorized to make a grant of all or
part of the proceeds of such bonds to any person
in connection with the acquisition, construction
and equipping of an eligible project, including
the expense of the state or any municipality, or
any instrumentality or agency of the state or any
municipality, in connection therewith. Subject to
applicable federal tax law, the authority may
issue such bonds, the interest on which is
excludable from gross income for federal income
tax purposes, or such bonds, the interest on which
is not so excludable. The authority, when
authorizing the issuance of any series of such
bonds, shall, in conjunction with the State
Treasurer, determine the rate of interest of such
bonds, the date or dates of their maturity, the
medium of payment, the redemption terms and
privileges, whether such bonds shall be sold by
negotiated or competitive sale and any and all
other terms, covenants and conditions not
inconsistent with this section, in connection with
the issuance thereof, including but not limited
to, the pledging of special capital reserve funds
authorized under subsection (b) of section 32-23j.
(2) The issuance of any bonds by the authority
under this section shall be subject to the
approval of the State Bond Commission. Upon
approving a project, the authority shall submit
the matter to the State Bond Commission for final
approval. THE STATE BOND COMMISSION SHALL NOT
APPROVE ANY PROJECT UNLESS IT HAS RECEIVED THE
SUBMISSION FROM THE AUTHORITY AT LEAST TEN DAYS
PRIOR TO THE MEETING AT WHICH SUCH PROJECT IS TO
BE CONSIDERED. SUCH SUBMISSION SHALL INCLUDE THE
INFORMATION CONSIDERED BY THE AUTHORITY IN
APPROVING THE PROJECT, THE INDEPENDENT FINANCIAL
ASSESSMENT AND SUCH OTHER INFORMATION AS THE
COMMISSION DEEMS APPROPRIATE. In reaching its
decision, the State Bond Commission may consider
[the information considered by the authority, the
independent financial assessment and such other
financial information as it deems appropriate]
SUCH INFORMATION AS SUBMITTED. After such approval
by the Bond Commission, no other approval shall be
required for the project.
Sec. 29. Sections 32-185 to 32-198, inclusive,
of the general statutes are repealed.
Sec. 30. This act shall take effect from its
passage, except that sections 1 to 18, inclusive,
shall take effect June 1, 1998, sections 19, 20
and 22 shall take effect July 1, 1998, and section
21 shall take effect July 1, 1999.
Approved June 5, 1998