PA 00-140-SB 640
Emergency Certification
AN ACT IMPLEMENTING THE MASTER DEVELOPMENT PLAN FOR THE ADRIAEN'S LANDING PROJECT AND THE STADIUM AT RENTSCHLER FIELD PROJECT
SUMMARY: This act makes numerous changes in the funding, development, control of, and requirements for, the Adriaen's Landing Project in downtown Hartford and the University of Connecticut (UConn) football stadium as established in 1999 legislation (PA 99-241). Most of the changes reflect (1) a shift in control over the project's development to the Office of Policy and Management (OPM) and of the stadium location from Hartford to East Hartford and (2) the inclusion of hotel, retail, entertainment, and housing components (and their related parking facilities) in the project's scope in addition to the convention center and its related parking facilities, which were covered by the 1999 law. These changes result in revisions to (1) bond authorizations and their uses, (2) the powers and responsibilities of the OPM secretary and the Capital City Economic Development Authority (CCEDA), and (3) the scope of exemptions from various state laws and taxes.
Under the act, the state will own the Adriaen's Landing and stadium sites; CCEDA will own the convention center; and private entities will own the convention center hotel and entertainment, retail, housing, and office facilities.
The act:
1. requires (a) the governor to certify to the treasurer and Bond Commission that the state has received at least $210 million in legally enforceable private financial commitments before bond funds are issued and (b) the legislature to approve any changes in the master development plan that materially change the project's components;
2. shifts control over $187 million in bond funds for the convention center from the Department of Economic and Community Development (DECD) to OPM and shifts $24.25 million in bonds authorized for the former sportsplex for use for other development at Adriaen's Landing;
3. expands the purposes for which bond funds can be used to include site preparation, infrastructure improvements, and relocation costs; construction management and development services fees; incentive payments for on-time and below-budget project completion; title insurance; and establishment of reserve funds related to project financing;
4. establishes a range of fiscal controls on the project, including the appointment of an independent auditor and the designation of a senior OPM staff person as project comptroller responsible for overseeing the public funds spent on the project;
5. relocates the UConn football stadium to East Hartford, authorizes $91.2 million for its construction, gives the OPM secretary control over its name and authorizes naming it Rentschler Field for 15 years in return for a $2 million donation from United Technologies Corporation (UTC) that will be used for road improvements, and permits the sale of the name after 15 years with UTC's approval;
6. authorizes the secretary to acquire (a) the UConn stadium facility site, (b) land for all of the Adriaen's Landing components, and (c) other property he deems necessary for off-site infrastructure improvements at either location rather than, as under prior law, just the sportsplex and its parking facility, and adapts to the reconfigured project his existing powers to take and acquire land;
7. requires the secretary and CCEDA to (a) make sure contractors on Adriaen's Landing and stadium projects pay prevailing wages or enter a project labor agreement, follow state set-aside laws, and hire qualified members of minority groups and Hartford and East Hartford residents for construction and operating positions and (b) appoint independent compliance monitors to make sure these requirements are followed, and make CCEDA's contract with a private convention center manager a state contract requiring the payment of standard wage rates;
8. allows CCEDA to control parking facilities at Adriaen's Landing, set rates and rules for them, lease and sublease the air rights over and under them and the convention center, and use revenues from them, after paying operating and debt service costs, to cover operating losses or capitalize reserve funds;
9. requires the state to make payments in lieu of taxes (PILOT) to Hartford on the convention center and related parking facilities and allows the city to negotiate assessments on real property improvements for retail, commercial, and housing uses for up to 15 years;
10. exempts the project from additional state laws and broadens the existing exemptions from state laws and sales and conveyance taxes to cover more parts of the project;
11. establishes a local advisory committee, chaired by East Hartford's mayor and including UTC and town police and fire representatives, to identify, discuss, and make recommendations about the stadium's relationship with the town;
12. allows the payment of preliminary costs incurred before its effective date, thus legitimating payments of any preliminary costs incurred between passage of PA 99-241 and this act's passage; and
13. deems its passage the fulfillment of PA 99-241's conditions for project financing.
EFFECTIVE DATE: Upon passage
THE OVERALL PROJECT: ADRIAEN'S LANDING AND THE STADIUM
Definitions (§ 6)
Overall Project and Overall Project Costs. The act expands the definition of the "overall project" to include developing, designing, constructing, finishing, furnishing, and equipping the on-site private development at the Adriaen's Landing site. Under prior law, the term covered the convention center, the sportsplex (now stadium), and related parking. The act also expands the definition of "overall project costs" to include site preparation, infrastructure improvements, and relocation costs; project and construction management and development services fees; incentive payments for on-time and below-budget project completion; title insurance; and establishment of reserve funds related to project financing. By law, the term already covered preliminary, site acquisition, bond issuance, labor and material, insurance, legal, accounting, engineering, and other professional costs.
Site Acquisition and Preparation Costs. The act defines "site acquisition" to include purchase, condemnation, lease, lease-purchase, and exchange of real property in the Adriaen's Landing and stadium sites by the OPM secretary or any other state or quasi-public agency. It includes (1) acquiring other property if the secretary decides it is necessary for infrastructure improvement related to either site, including land for temporary use for construction staging and temporary parking during construction and (2) exchanging or leasing other property to acquire land at Adriaen's Landing. It specifically excludes any private party acquiring or developing property or improvements that are not on the Adriaen's Landing site.
The act broadens the definition of site preparation to cover the entire Adriaen's Landing site, not just the convention center and its parking facilities, and the stadium site. It thus includes the hotel, retail, entertainment, housing, and office sites. It includes activities undertaken by OPM or any other state or quasi-public agency.
OPM Secretary's Powers (§ 9)
Acquiring Property. The act authorizes the OPM secretary to acquire (1) the Adriaen's Landing and stadium facility sites, (2) other property he deems required for off-site infrastructure improvements related to both sites, and (3) property he deems necessary for construction staging or replacement parking during construction as contemplated by the master development plan. Prior law permitted him to acquire sites for the sportsplex and its parking facility. The act specifically allows the secretary to acquire land by gift or exchange in addition to his current powers of condemnation, purchase, lease, lease-purchase, or otherwise.
The act revises the secretary's powers to apply them to the reconfigured project. His leasing powers are applied to the overall project, on-site related private development, and off-site property in connection with site acquisition arrangements, on terms he determines.
Making Agreements. The act authorizes the secretary to make agreements to (1) acquire or provide the stadium site and all or a portion of the Adriaen's Landing site instead of just the sportsplex and parking facilities and (2) plan for and implement site preparation and improvements and development of the overall project. This includes agreements to transfer ownership and other rights and obligations related to the parking facilities after the project is completed or at another time he and CCEDA determine. And it authorizes him to contract with private parties to carry out the overall project rather than just the sportsplex and parking projects (§ 10).
Accepting or Using Funds. The law authorizes the secretary to accept gifts, funds, property, and services for the overall project. The act specifies that he is not authorized to spend on (1) the overall project any state funds that are not authorized, appropriated, or otherwise designated for the purpose by state law or in the master development plan filed with the House and Senate clerks on March 3, 2000 and (2) the stadium project any funds other than those the act authorizes ($91.2 million).
The act authorizes the secretary to pay CCEDA and the university in the same way that he may pay other state agencies for the project costs, including costs incurred before July 1, 1999, the effective date of PA 99-241.
Planning and Building. The secretary's powers to plan, develop, and build the project are expanded to include development and project management contracts or arrangements, in addition to his power to enter construction, construction management, and design-build agreements. The act extends his power to make agreements to include the overall project and, subject to the proper allocation of costs, all or any portion of the on-site related private development including provisions concerning incentive fees for timely completion of improvements at or under budget. The act requires the development or project management agreement with the project manager to require that construction contracts for all major elements of the overall project to be awarded on a GMP (guaranteed maximum price) basis at prices consistent with the project budget. It authorizes the secretary to enter into contracts concerning assurances of performance or completion he determines appropriate to assure adherence to the project budget.
The act defines "project manager" as the development professional selected to supervise and coordinate the development of the Adriaen's Landing site on behalf of the OPM secretary and CCEDA.
Project Jobs (§ 10)
The act requires the OPM secretary to require each prime construction contractor, in connection with the development of the overall project or on-site related private development, to either (1) comply with prevailing wage laws or (2) enter a project labor agreement. Prior law required the sole prime contractor on the project to do so. The secretary must also require each construction contractor to make reasonable efforts to hire, or cause to be hired, (1) available and qualified Hartford and East Hartford residents and minorities at all levels of construction activity for the stadium project and (2) available and qualified Hartford residents and minorities for all other aspects of the overall project and on-site related private development. The act applies the secretary's powers to award contracts by open-bid, negotiated basis or, in certain instances, by prequalification and a public letting process to the overall project instead of to the sportsplex and parking facilities.
The act authorizes all state agencies doing work related to the overall project to select and hire professionals, consultants, and contractors in the same manner as the secretary, notwithstanding any state statute.
Environmental Evaluations (§ 17)
In lieu of the public hearings required by law or regulation, the act requires the environmental protection commissioner to adopt a master administrative process that requires that, to the extent practicable, one public hearing be held for the convention center and parking facility projects and a separate public hearing be held for the stadium project.
Construction Account (§ 29)
PA 99-241 created a General Fund account to hold money to be spent on the sportsplex. The act renames the account and requires that the money designated for the construction of the former Patriot's stadium go into it to pay the overall project costs, rather than the cost of the sportsplex.
Paying Preliminary Costs (§ 30)
PA 99-241 established conditions for project funding and generally barred expenditure of state funds before the legislature approved the project. But it allowed CCEDA and the state to pay preliminary costs incurred before July 1, 1999, when PA 99-241 took effect. The act expands this provision to allow payment of preliminary costs incurred before this act's effective date. It thus validates payments of any preliminary costs incurred since July 1, 1999.
PA 99-241 also allowed CCEDA and the state to award contracts and the state to pay up to $8 million from the stadium construction account prior to legislative approval. By changing the allowed uses of the account, the act allows this money to be spent on any project component at the Adriaen's Landing site.
ADRIAEN'S LANDING
Defining the Components
Adriaen's Landing Site Defined (§ 6). The act defines this term as the approximately 33 acres in Hartford designated in the master development plan as the location for the convention center, convention center hotel, parking facilities, and related private development.
The Convention Center Project (§ 1). The act adds a definition of "convention center facilities" that includes the parking facilities at the Adriaen's Landing site that CCEDA develops, owns, or operates. The definition explicitly excludes the convention center hotel. The act redefines the "convention center project" to allow CCEDA to pay for site acquisition costs for the center and the parking facilities and to issue revenue bonds for this purpose. It specifies that the convention center hotel includes its second phase, which is to be constructed at a later date, conditioned on financing factors.
On-Site and Other Related Private Developments (§ 6). The act designates as "on-site related private development" the convention center hotel, housing, entertainment, recreation, retail, and office development on the Adriaen's Landing site that is contemplated in the master development plan. It specifically includes the second phase of the hotel but excludes additions, expansions, demolition, conversion, and other changes to the other developments unless the secretary agrees they further the master plan's objectives.
It expands the definition of "related private development" (which the law already defined to cover those projects and facilities in the Capital City Development District associated with the convention center) specifically to include housing and offices and privately developed or financed improvements. Under the act, these related developments need only be contemplated in the master plan, not specifically identified in it as required under prior law.
Project Financing (§§ 2, 3 and 8)
Convention Center (§ 3). The act shifts control of $187 million in bond authorizations for the convention center from DECD to OPM and expands the purposes for which the funds may be used. DECD retains the remaining $3 million. Both must grant the funds to CCEDA.
For the convention center and its related parking, the additional uses of funds include (1) site acquisition and preparation; (2) relocation (including interim parking arrangements for Hartford businesses whose current parking facilities are incorporated in the project); (3) on-site infrastructure improvements, or off-site improvements if the OPM secretary determines they are necessary; (4) construction management and development services fees, including incentive payments for timely and under-budget project completion; and (5) reserve accounts.
The act allows some of these funds to be used for preliminary, site acquisition and preparation, and infrastructure improvement costs associated with the hotel, retail and entertainment, housing, and stadium development to the extent the OPM secretary and CCEDA attribute them to convention center project costs.
It states that bonds sold after the Bond Commission authorizes them are conclusively presumed to be fully and duly authorized and no one may question their authorization, sale issuance, execution, or delivery.
Convention Center Naming Rights (§ 2). The act specifies that CCEDA must use any proceeds from selling the right to name the convention center remaining after it pays for the center's start-up and operating costs for center operating or capital replacement reserves.
Other Project Funding (§ 8). The act increases, from $50 million to $73.8 million, a bond authorization dedicated to parking facility development and allows its use for any Adriaen's Landing (but not stadium) project costs. As under current law, OPM can use it for project financing or, if it finds a need to induce parking development, as grants or other forms of financial assistance to public or private project developers in connection with revenue bonds.
If any of the bond proceeds remain after the projects are completed, the act permits depositing the remainder in the General Fund or using it to redeem or defease outstanding bonds, as well as to pay bond principal and interest as current law provides.
The act fixes the bonds' maturity date at 30 years from the date they are issued; not, as under prior law, that date or 30 years after the parking facilities are completed, whichever is later. It conclusively presumes the bonds are fully and duly authorized after the Bond Commission authorizes them, not after they are issued, as prior law prescribed.
Extending CCEDA Powers to the Hotel and Related Parking (§ 2)
The act allows CCEDA to own and operate the convention center and the parking facilities at the Adriaen's Landing site. It extends to the hotel and these parking facilities CCEDA's power to acquire and transfer land, condemn property, and lease property rights as both lessor and lessee. The authority already had this power in respect to the convention center and its parking facilities. And it specifically allows CCEDA to sublease, as sublessor or sublessee, air rights above and below all of these facilities.
It extends to the hotel's construction, CCEDA's authority to adopt procedures that require its contractors and subcontractors to (1) use affirmative action in hiring, (2) pay prevailing wages, and (3) hire Hartford residents and available and qualified members of minority groups during construction and for subsequent operations. It permits, in all CCEDA projects at Adriaen's Landing, a project labor agreement to supersede prevailing wage requirements.
The act permits CCEDA to make arrangements with the OPM secretary concerning the development, ownership, and operations of all parking facilities at Adriaen's Landing. The law already allowed it to purchase and lease completed parking facilities for the convention center. It allows CCEDA to contract with private entities to manage and operate these facilities and deems these to be state contracts for purposes of the law that requires employers with state contracts to pay their employees standard wage rates.
It allows CCEDA to set parking rates and rules and procedures governing all parking facilities' use, as long as these are consistent with federal tax law. It allows CCEDA to use the net revenue from these facilities and the convention center, after allowing for operating costs, debt service, and other costs, for any authority expenses, including covering operating losses or paying into operating or capital reserves for the convention center or parking facilities.
Prohibition on Hotel Developer Transfers (§ 12)
The act empowers CCEDA to enter an agreement with the hotel developer prohibiting the developer from voluntarily transferring its interest, or an affiliate's interest, in the hotel in the first five years after the hotel is completed unless CCEDA gives its prior written consent. The agreement can permit a transfer after five years only to a party CCEDA reasonably believes is financially responsible and experienced in owning and operating first-class hotels in urban settings. The developer's interest includes its rights under a ground lease, air rights, and other agreements it has with the state.
Acquiring Land For The Landing (§ 12)
Taking Land. The act adapts to the reconfigured project the OPM secretary's powers to take and acquire land. Prior law authorized him to take real property in the capital city economic development district for the sportsplex and established procedures for him to do so and pay property owners. The act, instead, authorizes such taking in the Adriaen's Landing site and requires him to follow the same procedures. The law also authorizes such taking for off-site property necessary to make related infrastructure improvements. The act specifies that the secretary determines what property is necessary. It allows construction of the convention center, related parking facilities, on-site related private development, and related site preparation and infrastructure improvements to begin at any time after the property is assessed by the secretary. Prior law allowed only sportsplex construction to begin at that point.
Purchasing Land. The act allows the secretary to buy property required for the construction of the convention center, related parking facilities, on-site private development, and related site preparation instead of property for sportsplex construction. Similarly, the act authorizes him to take or purchase property abutting or near the Adriaen's Landing site, the on-site private development, and the infrastructure improvements rather than land abutting or near the sportsplex, convention center, and parking facility.
Relocating Public Service Facilities. The act authorizes the secretary to order the relocation of public service facilities for the on-site related private development, related site preparation, and infrastructure improvements for the same reasons he could do so for the sportsplex. The law defines "public service facility" as all privately, publicly, or cooperatively owned lines, facilities and systems, and related property interests, for producing, transmitting, or distributing communications, cable television, power, electricity, light, heat, gas, oil, crude products, water (including heated or chilled water), steam, waste, storm water not connected with highway drainage, and similar commodities.
Government-Owned Property. The act authorizes the secretary to petition government agencies to take their property for on-site related private development and related site preparation and infrastructure improvements and eliminates his authority to do so to construct the sportsplex.
Conducting Surveys and Tests. The act authorizes the secretary to enter private property to make surveys and inspections and perform borings, soundings, or other tests before building on-site related private development or conducting related site preparation and infrastructure improvements and eliminates such authority regarding the sportsplex. His authority to do so to build the convention center and parking facilities is unchanged.
Appeal Of Secretary's Assessment (§ 13). Prior law established a procedure to appeal the secretary's assessments for the sportsplex project and provided that an application for reassessment would not prevent or delay the construction of the sportsplex and its parking facilities. The act instead applies this provision to the convention center, related parking facilities, on-site related private development, and related site preparation and infrastructure improvements.
Property Exempt From Secretary's Condemnation Powers (§ 15). The act exempts certain Hartford property from its provisions authorizing (1) the secretary to condemn land for the convention center, related parking facilities, on-site private development, or related site preparation or infrastructure and (2) appeals of his actions in court. Prior law had the same provision concerning land taken for the sportsplex and its parking facility. The exempted property is the property for which the city of Hartford is either (1) liable to pay the owner damages or (2) to receive benefits from its owner, except benefits from condemnation under the act's provisions.
Interest Owed For Late Payment (§ 16). The act applies to the Adriaen's Landing site the late payment interest provisions that prior law applied to the sportsplex and its parking facilities. It requires the state to pay 4% interest on amounts owed for more than 90 days following a stipulated agreement to purchase between the OPM secretary and the property owner.
Payments in Lieu of Taxes (PILOT) (§§ 19 and 28)
The act eliminates a provision of PA 99-241 that: (1) exempted the real property in the overall project from property tax, (2) exempted the state from having to pay a PILOT for this property, and (3) required the owner of the hotel and "non-event business areas" to pay a 100% PILOT under certain circumstances. As a result, the act subjects privately owned property at the project site to property tax and requires the state to make a PILOT for state-owned property. It specifically provides that the convention center and the related parking facilities owned by CCEDA are considered state-owned property, thereby entitling Hartford to PILOT payments for them.
It also requires the state to make a PILOT for any land on the Adriaen's Landing site that OPM leases from its current owners for a term of at least 99 years.
Hartford Tax Agreements (§ 33)
The act allows Hartford to negotiate and fix assessments on improvements (buildings) for retail, commercial, and residential uses for up to 15 years. To be eligible, the improvements must be (1) a capital city project receiving at least $5 million in aid from CCEDA or (2) located within the Adriaen's Landing site, including on-site related private developments. Capital city projects include such things as civic center renovations and downtown housing. Existing law authorizes towns to negotiate assessments on improvements, but not for 15 years.
Allocation of Lodgings Gross Receipts (§ 31)
By law, 4.5% of the gross receipts from room rentals in Hartford, go to CCEDA (which receives 90% of the revenue) and the Greater Hartford Arts Council (which receives the remaining 10%). The act specifies that this split applies to the revenues attributable to new hotels or rooms opened in Hartford after May 2, 2000.
The act also allocates to CCEDA half of the growth over the FY 1999-2000 base in the gross receipts revenues that do not already go to CCEDA. This provision runs from July 1, 2000 until CCEDA determines that this revenue source is no longer needed to meet current or projected convention center operating fund deficiencies.
Under the act, CCEDA can use these revenues for any purpose, including the convention center's startup and operating costs and replacement reserve.
Relation To Other Laws (§ 21)
The law specifies that the laws governing Adriaen's Landing and CCEDA prevail over other statutes. The act extends this provision to cover the hotel and other related on-site private developments. The act also subjects the project manager to the laws governing Adriaen's Landing and the CCEDA.
STADIUM
Stadium Site (§ 6)
The act relocates the stadium to Rentschler Field in East Hartford. The stadium includes parking facilities or improvements or arrangements for parking such as licensing or leasing, and the act's legislative findings state that UTC has, as part of donating the land for the stadium, offered to license for $1 a year approximately 6,500 parking spaces for use at stadium events (§ 5). Like its predecessor sportsplex, the stadium must meet NCAA standards for Division 1-A football, contain at least 40,000 seats, and be expandable to 50,000. Unlike its predecessor, the stadium need not contain a capacity for state-owned amenities for other sports, artistic and cultural events, office, retail, dining, and recreational facilities. And the act eliminates the explicit authorization for the stadium's seating to include premium seating areas.
Stadium Financing (§ 7)
The act reduces, from $115 million to $91.2 million, the bond authorization for the stadium. It expands the purposes for which the funds can be used to include acquiring property related to the site. Funds can already be used for design, development, furnishing, and equipping the facility and site. If the stadium costs less than $91.2 million to build, the act permits using any unused bond proceeds to redeem or defease outstanding bonds as well as to pay bond principal and interest or to place the money in the General Fund as is required under existing law.
The act removes the requirement for the Bond Commission to find that the legislature has approved the project master plan as required by PA 99-241. It conclusively presumes the bonds are fully and duly authorized after the Bond Commission authorizes them, not after they are issued, as prior law prescribed. And it specifies that the bonds mature 30 years from the date they are issued not, as under prior law, that date or 30 years after the stadium is completed, whichever is later.
Stadium Ownership (§ 10)
Under the act, the state, or its public instrumentality, always owns the stadium and all furniture, fixtures, and equipment purchased as a part of it with bond proceeds or other state money.
Stadium Operations (§ 9)
The act authorizes the secretary to make agreements with anyone, not just UConn as under prior law, concerning events involving the university and others at the stadium and related parking facilities. It authorizes him to make agreements concerning easements and right-of-way for stadium access and lease, license, rental or other use agreements, including a parking license agreement with UTC, and for stadium parking and shuttle service, sufficient to meet projected peak parking demand.
It authorizes the secretary to license or manage any retail or commercial area within the stadium. Under prior law, he could license or manage nonevent business areas at the sportsplex.
The act requires the stadium facility manager to make reasonable efforts to hire, or cause to be hired, available and qualified Hartford and East Hartford residents and minorities at all levels of the stadium's operations.
The act adds professional liability insurance to the types of insurance the secretary may pay for or procure in relation to the stadium and related parking facilities.
Local Stadium Operations Advisory Committee (§ 9)
The act requires the secretary, through East Hartford's mayor, to establish an ongoing process for community input to the secretary and the stadium facility manager about matters of local concern relating to facility operations. This includes establishing a local advisory committee to identify, discuss, and formulate recommendations about the relationship between the facility and the town. The committee must be chaired by the mayor and include two neighborhood residents and representatives of the facility manager, UTC, the town police and fire departments, OPM, and UConn. Members serve without compensation and meet when called by the mayor.
The act requires the agreement with the stadium manager to include limits on the types of events and hours of operation, as determined by the secretary to be reasonable and appropriate. In making the determination, the secretary must consider the stadium's public purposes and the stadium's impact on neighboring areas.
The secretary must make an agreement with East Hartford and any other affected town to reimburse them for their reasonably determined incremental costs of additional public safety personnel required before, during, and after events to handle crowds, traffic, and event-related activities. The costs may be allocated among the secretary, UConn, or other event sponsors.
Stadium Naming Rights (§ 10)
The act gives the OPM secretary control of the stadium's naming rights. It authorizes him to make an agreement with UTC in which (1) he agrees, for a period of up to 15 years from the date of the first event at the stadium, to forego offering the naming rights for commercial purposes and to call the stadium "Rentschler Field;" (2) UTC donates $2 million for the secretary to use for traffic and road improvements near the stadium; and (3) the secretary agrees, when offering the naming rights at the expiration of the 15-year period for commercial or other purposes, to (a) give UTC the right of first refusal, (b) to offer naming rights on the condition that the phrase "at Rentschler Field" will follow the selected commercial name, and (c) UTC will have the right to approve the name. The act provides that the approval will not be unreasonably withheld or delayed.
At the end of the period defined in the agreement with UTC and subject to any limits stated in it, the act authorizes the secretary to offer and sell the naming rights on a request for proposals basis and a process of competitive negotiation, subject to advice of bond counsel concerning private activity or similar restrictions that would result in any tax-exempt bonds becoming taxable.
Stadium Facility Enterprise Fund (§ 11)
The act renames the "Hartford Sportsplex Enterprise Fund" as the "Stadium Facility Enterprise Fund" and the "Hartford Sportsplex Capital Replacement Account" as the "Stadium Facility Capital Replacement Account." The secretary can use the fund to pay for stadium operations. The fund is capitalized by revenue from operating the stadium and related parking facilities, including revenue from the sale of naming rights and from state appropriations or other governmental or private sources. It does not include the amount made available to the secretary by UTC for traffic and road improvements. The account consists of certain money left in the fund at the end of the fiscal year to be used to replace and improve the stadium.
The act requires the secretary to prepare an annual operating and capital budget for the stadium facility instead of for the sportsplex and parking facilities. He must submit it to the Appropriations and Finance, Revenue and Bonding committees.
Environmental Evaluation (§ 17)
The act requires OPM, rather than CCEDA, to prepare the evaluation of the stadium project's impact on the environment. It allows OPM to help East Hartford prepare any environmental impact statement required under federal law. And it allows OPM and the town to enter into a memorandum of understanding regarding the allocation of costs in connection with this assistance.
PROJECT OVERSIGHT MECHANISMS
Conditions For Project Funding (§ 34)
PA 99-241 establishes conditions for project funding, including a review by the legislature. The act deems certain of these conditions to be met with its passage. Specifically, it provides that (1) the master plan is validated and is considered to meet the provisions of PA 99-241 that required the governor to certify that the master plan is substantially complete and the required commitments of private investments have been made and (2) the feasibility and implementation studies have shown the economic viability of the project.
Commencing Development (§ 36)
The law establishes various conditions for the release of funds for the project. The act additionally requires the governor to certify to the state treasurer and the Bond Commission that the state has received commitments for at least $210 million in private investment in the project, of which at least $40 million is for the convention center hotel. It requires the certification to include the governor's findings that (1) the commitments are legally enforceable; (2) they relate to the related private developments, as defined by the act; and (3) they would not have been made without the development of the convention center and related parking and the preparation of the Adriaen's Landing site.
The act repeals (1) a requirement that the governor submit a similar declaration to the Appropriations and Finance, Revenue and Bonding committees and (2) the legislature's authority to reject the master development plan by a majority vote in both houses.
Modifications To Master Plan (§ 35)
The act allows the secretary to modify the master development plan for a variety of unforeseen reasons, including development constraints and market conditions. But, any modification must be consistent with PA 99-241 and the act's fiscal controls and procedural provisions. If the secretary determines that a modification will materially change the purpose or character of the stadium, convention center, or related parking facilities, he must file a description of the modification with the House and Senate clerks for transmittal to the Finance, Revenue and Bonding Committee. The committee has 30 days to reject the modifications, after which time the modifications take effect.
Fiscal Controls (§ 32)
Once work on the overall project begins, the act requires the secretary to take reasonable steps to ensure that (1) public spending on it is subject to adequate financial controls and (2) construction conforms to applicable standards and approved plans and specifications.
The secretary must designate one of his senior staff to serve as project comptroller. The project comptroller must (1) oversee public spending on the project and authorize any bills payable by the state treasurer; (2) monitor the project budget, including cost estimates for site preparation and project development; (3) review all audit reports pertaining to the project; and (4) obtain all necessary information and monitor all aspects of the planning and implementation of the overall project.
The secretary must select an independent firm to audit all invoices and other documents related to public improvements managed by the project manager. The firm must report quarterly to the secretary, CCEDA, and the project comptroller. The project comptroller must prepare quarterly reports for the secretary, CCEDA, and the public auditors. He must also give them a summary each quarter of all expenditures from state funds, noting any significant variances from the budget.
The secretary must also provide for experienced people to oversee the project manager and other contractors and professionals the state retains directly or indirectly in the construction of the convention center, parking facilities, and stadium. He can do this by agreement with the departments of Public Works (DPW) or Transportation (DOT), by directly hiring someone, by contract, or by any combination of these.
The secretary and CCEDA must select project managers for public improvements in accordance with applicable procurement procedures. The managers are responsible for day-to-day management of public improvement construction activities in accordance with agreements with the secretary or CCEDA. They must report to the project comptroller as requested.
Any contract that the secretary or CCEDA enters into must require the maintenance of complete accounting records. The records must be kept on an open-book basis providing access to the secretary, CCEDA, the auditing firm, and the public auditors. Each contract for architectural services entered into by the secretary or CCEDA must require the architect to monitor conformance of the construction with the plans and specifications. The architect must report any material variances to the secretary, CCEDA, and project comptroller. In addition, copies of the architect's report must go to the state building inspector and fire marshal.
The secretary must select environmental consultants in accordance with applicable procurement procedures. The consultants must monitor conformance of environmental remediation with approved plans and report any material variances to the secretary, CCEDA, and the project comptroller.
All allocations of costs between public and private improvements must be made by written agreement and be consistent with the proposed budget.
The state building inspector and fire marshal must review and approve all construction plans and specifications. These officials must periodically inspect the overall project as it is built and report quarterly to the secretary, CCEDA, and the project comptroller on the conformance of the construction to the plans and specifications.
Independent Construction Contract Compliance Officer (§ 10)
The act requires the secretary and CCEDA jointly to select an independent construction contract compliance officer to monitor compliance by the secretary, CCEDA, the project manager, and each prime contractor with the provisions of applicable law, including this act, and with applicable requirements of contracts relating to (1) set-asides for small contractors and minority business enterprises and (2) required efforts to hire available and qualified members of minorities and Hartford and East Hartford residents for construction jobs.
The independent contract compliance officer must file quarterly written reports with findings and recommendations with the secretary and CCEDA during the projects' development. The officer may be an officer or agency of a political subdivision of the state, other than CCEDA, or a private consultant experienced in similar public contract compliance matters.
Stadium and Convention Center Contract Compliance Officers (§§ 9 and 37)
The act requires the secretary and CCEDA to designate facility operations contract compliance officers. OPM's compliance officer monitors the stadium while CCEDA's officer oversees the convention center, hotel, and related parking facilities. Both monitor the facilities' operations for compliance with provisions of applicable law, including this act, and with applicable requirements of contracts relating to (1) set-asides for small contractors and minority business enterprises and (2) required efforts to hire available and qualified members of minorities and Hartford and East Hartford residents for facility operations (Hartford residents for the Adriaen's Landing site; Hartford and East Hartford residents for the stadium). They must file an annual written report, including findings and recommendations, with their appointing authorities.
EXEMPTIONS FROM STATE LAWS AND TAXES (§§ 17, 18, 24, 22, and 23)
Assembling Property (§ 24)
The act exempts conveyances associated with the hotel and other on-site related private development from the Transfer Act, which regulates sales and other transfers of properties that had been the site of a business handling hazardous materials. The exemption previously applied to the convention center, sportsplex, and parking facilities.
Environmental Evaluations (§§ 17 and 18)
The act specifies that the environmental evaluations required by law in connection with the convention center hotel and related private developments do not have to be completed before the projects are funded or contracts awarded. It exempts the convention center, parking facilities, the hotel, and other related on-site private development from a requirement for state agencies to submit construction plans to the Council on Environmental Quality for its review.
Construction
The act broadens the project's exemptions from state law provided by PA 99-241. It exempts the convention center project, the hotel, and other on-site related private development from state laws governing:
1. the municipality's right of first refusal when disposing of surplus state property;
2. administrative procedures for adopting regulations and reconsidering contested cases (part of the UAPA);
3. the Department of Administrative Service's (DAS) functions, including state purchasing and bidding, (other than nondiscrimination and affirmative action provisions);
4. the application of the state plan of conservation and development; and
5. the DPW governance of state property, construction contracts, leases, and consultant selection, and matters subject to review by the State Properties Review Board.
PA 99-241 exempts the overall project from several additional laws¸ including those dealing with historic preservation, regulation of major traffic generators, and citizen suits regarding environmental protection. By expanding the definition of the overall project, the act extends these exemptions to the facilities and activities covered by the expansion. The act also gives the state building inspector and fire marshal, rather than their local counterparts, original jurisdiction to administer and enforce the state building and fire safety codes for the overall project.
On the other hand, the act subjects the stadium and parking projects to the laws allowing contractors to take the state to court or to arbitration over the awarding of highway or public works contracts or any disputed contract provision.
The act exempts the convention center and on-site related private development from the building code education fee (16 cents per $1,000 of construction value). The stadium and parking projects are already exempt.
Operations
The act exempts convention center operations from:
1. laws governing DAS' functions;
2. the DPW's governance of state contracts and property;
3. historic preservation laws;
4. laws requiring the Board of Education and Services for the Blind to operate food service facilities, vending machines, and other facilities; and
5. the requirement to obtain a certificate from the State Traffic Commission as a major traffic generator.
With regard to other laws, regulations, and ordinances, the act requires that the convention center be regulated in the same way as state facilities.
Taxes
Sales Tax (§ 22). The act exempts from the sales tax goods and services used in the preparation of, and infrastructure improvements to, the stadium and parking facilities project sites. It also exempts sales of goods and services used in the demolition, remediation, or preparation of the entire Adriaen's Landing and stadium sites, rather than just the convention center, stadium, and parking facilities sites. As a result, goods and services used for these purposes in connection with on-site related private development will be tax-exempt.
Conveyance Tax Exemption (§ 23). The act exempts from the conveyance tax property transfers on the entire Adriaen's Landing site, rather than just the convention center, stadium, and parking facilities sites.
INDEMNIFICATION OF EMPLOYEES (§ 20)
The act exempts state officers and employees executing agreements in connection with (1) the overall project or its components, (2) the operations of the stadium project, or (3) the implementation of relevant provisions of PA 99-241, as amended, from personal liability under the agreements. The state must indemnify the officers and employees against financial losses, including legal expenses. (But PA 00-192 removes the requirement for the state to indemnify them.)
REPEALED PROVISIONS (§ 39)
The act repeals (1) a requirement that the DOT study parking and transportation near the former stadium site and recommend how to optimize access to and from the stadium, (2) a requirement that the Department of Consumer Protection adopt regulations to preclude price gouging for parking near the sportsplex site and its authority to impose fines for violations, and (3) a provision of a 1997 special act that conveyed four parcels in downtown Hartford from DOT to the Phoenix Insurance Company.