GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 1398

Short Title:  RDU Construction Bid Exemptions.	(Local)

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Sponsors: Senators Gulley; and Lucas.

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Referred to:  State Government, Local Government, and Personnel.

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May 27, 1998

A BILL TO BE ENTITLED
AN ACT TO AMEND CHAPTER 168 OF THE 1939 PUBLIC-LOCAL LAWS, AS PREVIOUSLY AMENDED, WHICH ENABLED THE ESTABLISHMENT OF THE RALEIGH-DURHAM AIRPORT AUTHORITY, TO ALLOW THE AUTHORITY TO CONTRACT WITH PRIVATE PARTIES FOR THE DEVELOPMENT, CONSTRUCTION, AND OCCUPANCY OF SPECIAL USER PROJECTS WITHOUT COMPLYING WITH ARTICLE 8 OF CHAPTER 143 OF THE GENERAL STATUTES.
The General Assembly of North Carolina enacts:
Section 1.  Subsection (f) of Section 7 of Chapter 168 of the Public-Local Laws of 1939, as rewritten in Chapter 1096 of the 1955 Session Laws, is further amended by adding a new subdivision to read:
"(1)	Special User Projects.  To contract with persons, firms, or corporations for terms not to exceed 40 years for special user projects as defined and described in this subdivision.
		Special user projects are projects that are undertaken for the use and benefit of one or more private entities who will lease the facilities from the Authority upon terms and conditions that will make the private entities solely responsible for the repayment of all notes, bonds, debts, or other costs incurred in the financing, acquisition, development, or construction of the project.  
		A special user project shall include all of the following:
a.	The acquisition of real property and equipment, the development of land belonging to the Authority, the construction of buildings or other structures on a site or sites located on the property of the Authority, or the addition to or the improvement, rehabilitation, renovation, or enlargement of a site or a structure located on the property of the Authority.
b.	The issuance of the Authority's special facility revenue bonds or other debt instruments by the Local Government Commission, the proceeds of which shall be used to pay the costs of the special user project and which bonds or other debt instruments shall be repayable solely from the Authority's rents, fees, charges, payments, or other revenues from the special user project or from the funds, collateral, and undertakings of private parties that are either assigned or pledged by those parties.
c.	The use of the property acquired, developed, or constructed shall be limited to airline, aircraft, aviation support, air passenger, air cargo, aircraft maintenance and repair, or other transportation, distribution, or other airport related purposes, but may include appurtenances and incidental facilities such as roads, driveways, sidewalks, parking facilities, utilities, warehouses, loading facilities, administrative and other office facilities, and other improvements necessary or convenient for the operation of any of these facilities.
		Notwithstanding any other provision of law, the Authority may agree that all contracts relating to the acquisition, design, construction, installation, or equipping of the special user project shall be solicited, negotiated, awarded, and executed by the private parties for which the Authority is financing the special user project or any agents of the private parties subject only to approval by the Authority, as the Authority may require.  The Authority may, out of the proceeds of bonds or other debt instruments, make advances to or reimburse the private parties or their agents for all or a portion of the costs incurred in connection with the contracts.  For all purposes related to special user projects and contracts related to special user projects, the Authority shall be exempt from the requirements of Article 8 of Chapter 143 of the General Statutes."
Section 2.  This act is effective when it becomes law.