GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2005-172
SENATE BILL 435
AN ACT clarifying the authority of the county of durham to enter into public-private projects.
The General Assembly of North Carolina enacts:
SECTION 1. Section 1 of Chapter 908 of the 1986 Session Laws, as amended by Section 2 of Chapter 789 of the 1987 Session Laws, reads as rewritten:
"Section 1. (a) Definition. For the purpose of
this act, an "urban development project" a "public-private
project" is defined as a capital project which is comprised of one or
more buildings or other improvements and includes both public and private
facilities. By way of illustration and not limitation, such a project might
include a single building comprising a publicly owned parking structure and
publicly owned convention center, and a privately owned hotel or office
building. The public-private project may be located anywhere within
Durham County, including those portions of Durham County within municipal
limits.
(b) Authorization. If the
Board of Commissioners of Durham County determines that the County will
significantly benefit from the County's participation in the development of an
urban development a public-private project, as defined, then the
County may acquire, construct, own, and operate or participate in the
acquisition, construction, ownership, and operation of an urban development a
public-private project, or of specific facilities within such a project,
including the making of loans and grants from moneys lawfully available
therefore. The County may enter into binding contracts with the City of Durham
or one or more private developers, or both, with respect to acquiring,
constructing, owning, or operating such a project. Such a The contract
shall among other provisions, specify the following:
(1) The property interest of the County and all other participants in the development of the project.
(2) The responsibilities of the County and all other participants in the development of the project.
(3) The responsibilities of the County and all other participants with respect to financing of the project.
Such a The contract may be entered into before or
after the acquisition of any real property necessary to the project.
(c) Property acquisition.
An urban development A public-private project may be constructed
on property acquired by the developer or developers, on property acquired by
the County, on property acquired by the City, or on property acquired by the
County, City, and developers.
(d) Property disposition.
The County may lease or convey its interest in urban development public-private
projects property or other property owned by it, including air rights over
public facilities, through any of the methods authorized in G.S. 153A- 176
and G.S. 160A-266 including private negotiation and sale without
limitation as to value of the interest conveyed. Notwithstanding the
provisions of G.S. 160A-272, property owned by the County may be leased
for a period of 10 years or longer without being treated as a sale of the
property.
(e) Construction of the
project. The contract between the county and the developer or developers may
provide that the developer or developers shall be responsible for: (i)
construction of the entire urban development public-private project,
(ii) reconstruction and/or repair of the urban development public-private
project or any part thereof subsequent to construction of said project,
(iii) construction of any addition to the urban development public-private
project, (iv) renovation of the urban development public-private project
or any part thereof, and/or (v) purchase of apparatus, supplies, materials, or
equipment for the urban development public-private project
(whether during the initial equipping of the said project or subsequent
thereto). Additionally, the contract between the county and the developer or
developers may provide that the county and the developer or developers shall
use the same contractor or contractors in constructing a portion of or the entire
public-private project. If so, the contract shall include such provisions
as the board of county commissioners deems sufficient to assure that the public
facility or facilities included in the project or added thereto are
constructed, reconstructed, repaired and/or renovated, and the apparatus,
supplies, materials and equipment purchased for the public facility or
facilities included in the project, are purchased at a reasonable price and the
provisions of Article 8 of Chapter 143 and Article 3 of Chapter 44A of the
General Statutes shall not apply to such urban development the public-private
project.
(f) Operation. The
County may contract for the operation of any public facility or facilities
included in an urban development a public-private project by any
person, firm, or corporation, public or private.
(g) Financing. To assist
in the financing of its share of an urban development a public-private
project, the County may apply for, accept, and expend funds from the
federal or State government or any other lawful source.
(h) Other authority. The
authority granted by this section is in addition to and not in derogation of
any other lawful authority granted to the County by law. The County may
exercise any authority granted to it by local act or general statute or law in
furtherance of an urban development a public-private project. By
way of illustration but not of limitation, the County may exercise the
following authority in furtherance of an urban development a public-private
project:
(1) The authority granted in G.S. 153A-176 and Article 12 of Chapter 160A with respect to the public or private sale, lease, rent, exchange, or other conveyance of property.
(2) The authority of G.S. 153A-13 and G.S. 153A-449 with respect to contracts with, and appropriation of money to, persons, associations or corporations for the accomplishment of public purposes."
SECTION 2. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 11th day of July, 2005.
s/ Marc Basnight
President Pro Tempore of the Senate
s/ James B. Black
Speaker of the House of Representatives