MD. Economic Development Code Ann. §  10-642 (2021)
2021 Maryland Statutes|Economic Development|Division II - Independent and Regional Development Units and Resources|Title 10 - Statewide Development Resources and Revenue Authorities|Subtitle 6 - Maryland Stadium Authority|Part V - Restrictions on Bonds and Borrowing|Section 10-642 - Montgomery County Conference Facility

    (a)    Except as allowed by § 10-639 of this subtitle, to finance site acquisition and construction of any segment of a Montgomery County Conference facility, the Authority shall comply with this section.    (b)    The Authority shall provide to the fiscal committees of the General Assembly, at least 45 days before seeking approval of the Board of Public Works for each bond issue or other borrowing, a comprehensive financing plan for the relevant segment of the facility including the effect of the financing plan on financing options for other segments of the facility.    (c)    The Authority shall obtain the approval of the Board of Public Works of the proposed bond issue and the financing plan.    (d)    The Authority shall secure a lease or other written agreement with Montgomery County, as approved by the Board of Public Works, under which:        (1)    Montgomery County agrees to contribute $13,196,000 for the capital costs of construction of the Montgomery County Conference Center not later than the date of the Authority’s bond issuance as authorized under § 10-628 of this subtitle;        (2)    the Authority agrees to:            (i)    issue bonds as authorized under § 10-628 of this subtitle; and            (ii)    contribute $20,304,000 of the proceeds from the sale of the bonds for the capital costs of the construction of the Montgomery County Conference Center;        (3)    Montgomery County and the Authority agree that if the actual capital costs for the construction of the Montgomery County Conference Center are less than $33,500,000, the savings shall be allocated:            (i)    one-half to the Authority; and            (ii)    one-half to Montgomery County;        (4)    Montgomery County and the Authority agree that if the actual capital costs for the construction of the Montgomery County Conference Center are more than $33,500,000, the excess shall be shared:            (i)    one-half by the Authority; and            (ii)    one-half by Montgomery County;        (5)    Montgomery County agrees to purchase the land for the Montgomery County Conference site as defined in § 10-601 of this subtitle, on which the Montgomery County Conference Center will be constructed;        (6)    Montgomery County and the Authority each own a 50% leasehold interest as tenants in common in the Montgomery County Conference facility for the duration of any bonds issued as authorized under § 10-628 of this subtitle; and        (7)    Montgomery County and the Authority agree not to sell, assign, mortgage, pledge, or encumber the Montgomery County Conference facility, or any leasehold interest in the facility, without the prior consent of the other, except for liens in favor of the Authority’s bondholders.    (e)    The Authority shall secure a deed, lease, or written agreement with Montgomery County, as approved by the Board of Public Works, authorizing the Authority to:        (1)    design, construct, and equip, or contract for the design, construction, and equipping of, the Montgomery County Conference facility; and        (2)    pledge the Montgomery County Conference facility and the Montgomery County Conference site or the leasehold interest in the facility as security for the Authority’s bonds.    (f)    The Authority shall secure a written agreement with Montgomery County, as approved by the Board of Public Works:        (1)    in which Montgomery County agrees:            (i)    to market, promote, and operate or contract for the marketing, promotion, and operation of the Montgomery County Conference facility in a manner that maximizes the facility’s economic return to the community; and            (ii)    to maintain and repair or contract for the maintenance and repair of the Montgomery County Conference facility so as to keep the Montgomery County Conference facility in first class operating condition; and        (2)    that includes provisions that:            (i)    protect the respective investments of the Authority and Montgomery County in the Montgomery County Conference facility;            (ii)    require Montgomery County to contribute to a capital improvement reserve fund in an amount sufficient to keep the conference center in first class operating condition;            (iii)    require Montgomery County to be solely responsible for all expenditures relating to the operation of the Montgomery County Conference facilities that may be incurred, including the amount by which expenditures exceed revenues;            (iv)    allow Montgomery County to keep all operating profits resulting from the operation of the Montgomery County Conference facility each year;            (v)    provide for remedies on default, including the right of the Authority, if a material default by Montgomery County is not corrected after a reasonable notice and cure period, to:                1.    immediately assume responsibility for maintenance and repairs of the Montgomery County Conference facility; and                2.    offset the costs of the maintenance and repairs against other amounts owed by the Authority to Montgomery County, whether under the operating agreement with Montgomery County or otherwise;            (vi)    authorize the Authority to select, through a cooperative procurement agreement, a contractor to develop, design, construct, operate, and manage the Montgomery County Conference facility during the period that the bonds issued by the Authority for the Montgomery County Conference facility are outstanding;            (vii)    allow for the establishment of a board of directors to manage the Montgomery County Conference facility;            (viii)    provide that the board of directors may include representatives of the Authority, Montgomery County, the private developer, and the community; and            (ix)    provide that, unless action is taken to create a legal entity, the board of directors is not a separate legal entity.    (g)    The Authority shall secure an agreement among Montgomery County, the Authority, and a private developer, as approved by the Board of Public Works, that provides for:        (1)    the acquisition, construction, and operation of a hotel adjacent to the Montgomery County Conference facility; and        (2)    a capital commitment from the developer for the hotel and, as appropriate, shared facilities.